Organization and Nature of Operations

Pedregal Power Company is a Panamanian limited liability company (sociedad de responsabilidad limitada), organized in November 1999, with a term life of sixty years. The Company shares were originally owned 100% by Coastal Power Panama Investor, S. A. (CPPI), who transferred its shares to Coastal Power Panama Generation Ltd. (“CPPG”), a wholly owned subsidiary of El Paso Corporation (El Paso).