diesel and other petroleum derivatives, and (ii) related electric interconnection facilities, fuel handling equipment and other property and equipment necessary to operate the facility. DEIGC also currently leases from GLL, and operates, the La Laguna Plant (described below) owned by GLL. DEIGC sells the energy and capacity generated from the DEIGC Facility and the La Laguna Plant to its customers, most of which are located in Guatemala (some sales are made to customers located in other Central American countries).

GLL owns an approximately 60 MW electric generation facility located in Guatemala (“La Laguna Plant”). The La Laguna Plant is comprised of (i) 4 generating units (3 gas turbines and 1 steam boiler) fueled by heavy fuel oil, diesel and other petroleum derivatives, and (ii) related electric interconnection facilities, fuel handling equipment and other property and equipment necessary to operate the plant. GLL is currently in the business of owning and leasing the La Laguna Plant to DEIGC; GLL does not currently sell the power from the plant. Pursuant to a lease, DEICG operates and controls the La Laguna Plant and sells the energy and capacity generated therefrom to its customers. However, the lease may be terminated in the near future, and in such case, GLL will operate and control the La Laguna Plant and sell the energy and capacity therefrom to its own customers all of which will be located in Guatemala and/or other Central American countries.

DEITG owns and operates a 230 kV electric transmission line, 20 miles in length, and related equipment including substations, transformers, breakers, meters, and switchyards (“DEITG Transmission Facilities”) located in Guatemala. The DEITG Transmission Facilities interconnect with the Arizona Plant interconnection facilities (owned by DEIGC) and the electric transmission facilities owned by Empresa de Transporte y Control de Energia Electrica del Instituto Nacional de Electrificacion (“INDE”), which is a transmission company owned by the Guatemalan government. DEITG provides electric transmission service to DEIGC by transmitting power delivered by DEIGC at the DEITG Transmission Facilities’ interconnection point with the Arizona Plant over the DEITG Transmission Facilities to their interconnection point with INDE’s facilities. In addition, DEITG transmits power over the DEITG Transmission Facilities for DEIGC that DEIGC purchases for its own consumption at the Arizona Plant. DEITG also transmits power over the DEITG Transmission Facilities for its other customers. However, DEITG does not take title to, or sell, any of the power transmitted over its DEITG Transmission Facilities; it is only a transmission service provider.

None of the Foreign Utility Companies derives any part of its income, directly or indirectly, from the generation, transmission, or distribution of electric energy for sale or the distribution at retail of natural or manufactured gas for heat, light or power, within the United States. Moreover, none of the Foreign Utility Companies, nor any of its subsidiary companies to the extent it may have any, is a public utility company operating in the United States.

Ownership of the Foreign Utility Companies

Duke Energy International Guatemala Holdings No. 1, Ltd., a Bermuda company (“DEIGH No. 1”) directly or indirectly owns 100% of DEITG. DEIGH No. 1 directly owns 1% of the voting and equity securities

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