Baja California Negotiates $66M Summer Power Subsidy for Mexicali, San Felipe

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Baja California’s state government is finalizing a deal with the Federal Electricity Commission (CFE) worth approximately 1.35 billion pesos (about $66 million USD) to subsidize summer electricity bills in Mexicali and San Felipe. The subsidy would cover the six-month period from May through October under the 1F summer tariff rate.

Governor Marina del Pilar Ávila Olmeda confirmed she held a virtual meeting last week with CFE’s director to work through subsidy scenarios. The state’s Secretary of Finance is now completing the formal agreement. If approved at the proposed level, the 2026 subsidy would rise from 1.225 billion pesos last year, a roughly 10% increase.

Subsidy Covers Peak Heat Season

The 1F summer tariff provides tiered relief for residential electricity consumption between 1 and 2,500 kilowatt-hours per billing cycle. That structure is designed to reduce the cost of running air conditioning in a region where summer temperatures routinely exceed 113°F (45°C). Without the subsidy, households in Mexicali and San Felipe would face dramatically higher bills during the months when cooling is not optional but a health necessity.

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Baja California’s subsidy window intentionally runs one month later than neighboring Sonora’s, which begins April 1. The governor noted that extreme heat in Mexicali and parts of Tecate persists through late October, justifying the May-to-October schedule.

Growing Pressure to Start Earlier

Senator Max García, representing Baja California, filed a formal request on March 27 urging the federal Secretariat of Finance, the Secretariat of Energy, and CFE to begin the subsidy before May. García pointed to Sonora’s earlier start date as proof that moving up the timeline is administratively feasible. The Mexicali Business Coordinating Council (CCE) also called on state officials and federal legislators to push for an April start, warning that early heat waves are already straining household budgets and the local economy.

The subsidy has grown steadily in recent years. In 2023, the state secured 875 million pesos. By 2025, the figure reached 1.753 billion pesos, a 46.3% jump over 2024, according to state authorities. The 2026 proposal of 1.35 billion pesos represents the state’s share of the agreement, though final numbers depend on negotiations between the state government, CFE, and the federal Secretariat of Finance and Public Credit (SHCP). The program covers more than 400,000 households across both municipalities.

First reported by Punto Norte.

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