Diversified diverse generation base with three main generating generation units (47% coal, 35% natural gas, and marginally diesel oil, fuel oil and hydro); A 21% equity stake in Gasoducto Norandino, which provides Edelnor with a stable cash stream (dividends plus capital reimbursements); Ownership of transmission lines in Chile's Northern Interconnected System (SING) which is a competitive advantage; Growing demand for electricity in the SING fueled by globally competitive mining companies; and An adequate debt maturity schedule after Chapter 11 reorganization completed in November 2002. The SING, the company's service area, exhibits volatile spot prices and excess generation capacity when natural gas is available; Volatile cash generation due to exposure to volatile fuel costs and spot prices; Weak financial flexibility; A
