ELECTRIC ENERGIA Decree 942/89 Transfer electricity distribution services to the Province of Río Negro throughout its territory under Act No. 18.586.

Bs. As., 4/10/89

SECRETARY OF ENERGIA, and

CONSIDERING:

That the Province of RIO NEGRO requested in due course the transfer in its favor of the goods and services affected to the Public Electricity Service in its territory, currently in charge of the AGUA and ENERGIA ELECTRICA SOCIEDAD OF THE STATE.

That according to the fundamental principles of State reordering, it is appropriate, as it is appropriate to the optimal management of the services involved, to decentralize the provision of those services.

That the SECRETARIAT OF ENERGY OF MINISTERY OF ARTWS AND SERVICES PUBLICOS has initiated a project of institutional reordering of the electric sector, which will establish the competencies of the agencies and entities involved in the activities of that sector.

That the ENERGY FEDERAL COUNCIL ELECTRICA has been favourable to the transfer, noting the need for the transfer to be registered in the final form of the integral reordering of the electric sector.

It is applicable in the case of Act No. 18.586, which empowers the NATIONAL EXECUTIVE POWER to transfer the respective facilities and functions without charge.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 Artículo WATER AND ELECTRIC ENERGY SOCIEDAD DEL ESTADO will transfer electricity distribution services to the Province of RIO NEGRO without charge in the territory of the Province under Act 18.586. The transfer agreement will be signed ad referendum by the NATIONAL EXECUTIVE PODER. The transfer will be improved by means of minutes to subscribe directly to the parties. Art. 2o o The transfer will include:

a. Distribution facilities up to 33 kv inclusive.

b. The 66KV ROMERO-CESPEDES subsystem and its SIETE (7) transformative stations of 66/13.2 kV.

c. The CINCO (5) Small-generation Hydraulic Centers and the Térmicas of VIEDMA and COLORADO RIO.

d. The attention of all end-users supplied in low voltage, distributors and industrial users, with the exception of PETROLIFERS FISCALES and HIERRO PATAGONICO SOCIEDAD ANONIMA MINERA.

e. The return of facilities and services owned by the Province, currently operated by AGUA and ENERGIA ELECTRICA SOCIEDAD DEL ESTADO.

f. Property, furniture, spare parts, fixed and mobile maintenance equipment, works, communications contracts, obligations, etc., and administrative, accounting and technical organization, corresponding exclusively to services transferred.

g. The staff concerned, under the terms of Article 3(d), subject to the granting of the relevant legal options.

h. The financial resources represented by the amounts accrued in the last tariff period prior to the time of the refinement of the transfer.

h. The financial resources represented by the amounts accrued in the last tariff period prior to the time of the refinement of the transfer.

Art. 3o o The Province of RIO NEGRO shall be obliged to:

a. Accept the assets in the state in which they are located.

b. Reintegrate, if any, the systems of the territories that are federalized.

c. Reception of the transferred personnel, maintenance of their role in the existing collective labour convention for electric sector workers and ensuring continuity of the legal and working relationship.

d. Cancel the credits and debits that will be found accrued to the date of the effective transfer with ELECTRIC WATER AND ENERGY.

e. Guarantee the payment of the power supply with the Federal Shareholder.

f. Do not dispossess the assets that the Nation has transferred to it on the occasion of the present.

g. Renew the location contract of the provincial Atlantic line of 132 kV, which from the effective transfer date would be without charge for WATER and ELECTRIC ENERGY SOCIEDAD OF THE STATE, for the term established by the parties.

Art. 4o — The SECRETARIAT OF ENERGIA shall have the application of the present within the TREINTA (30) days, according to the bases of the transfer agreement, are established, taking into account that:

a. The process of reordering the Electrical Sector is not affected.

b. The legitimate interests of the staff concerned are contemplated.

c. The participation of the Province in the administration of services is established to transfer, with the participation of the workers in the service.

Art. 5o. Contact, post, give to the National Directorate of the Official Register and archvese. . MENEM. . José R. Dromi.