...ABY Transmisi=n Sur S.A. (ABY) is a special purpose entity (SPE) that won a 30-year concession contract to operate and maintain approximately 915 kilometer (km) of transmission lines along the Peruvian coastline (crossing four departments: Lima, Ica, Arequipa, and Moquegua). ABY began operating on Jan. 17, 2014. Based on the concession contract, ABY receives annual guaranteed revenues (RAG, its Spanish acronym), depending on its availability levels. These revenues, as of December 2019, amounted to about $49.8 million. The tariff is dollar-denominated and payable monthly in Peruvian nuevo soles (PEN). The concession defines an annual adjustment mechanism every May 1 by the U.S. Producer Price Index (PPI). In practice, the energy bill paid by the final users includes the transmission fee, which is collected by the generators that actually make the payments to the transmission companies. Each generator would have to pay fees in proportion to the energy actually sold. However, the total amount...
