Iberdrola Mexico signed a Letter of Intent to sell 8,539 MW of its generation fleet for US $6 billion to Mexico Infrastructure Partners (MIP), a private investment fund. The portfolio includes 8,436 MW from 12 Gas CC power plants and a 103 MW wind farm, representing 9% of the country’s total installed capacity and 78% of Iberdrola’s generation fleet in Mexico. CFE will oversee the operation of these plants. Given that merit-of-order dispatch logic is not modified, and the sale agreement only represents an ownership substitution, how does this transaction affect CFE’s market share and other fundamentals of the Mexican Electric Industry? Read more to find out.