01

TRANSELEC

Transelec is the largest supplier of high voltage systems in Chile, with nearly 10,000 kilometers of power transmission lines and nearly sixty 500 kV and 220 kV substations ranging from the Arica and Parinacota Region to the Los Ríos Region.

Transelec is the leading power transmission company in Chile and transports power that lights the homes of 97% of the population living between Arica and Chiloé.

The Company owns over 78% of the national transmission lines in the Central Interconnected System (SIC) power grid and 100% of the national transmission lines in the Far North Interconnected System (SING) power grid.

Since June 2006, the Company has owned a 100% stake in the Canadian consortium comprised of Brookfield Asset Management (BAM), the Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC) and the Public Sector Pension Investment Board (PSP).

02

OUR PEOPLE

Transelec is a specialized company and 96% of its 491 employees have professional or technical training. Our c employees receive an average 31 hours of training per year (figures as of 31 December 2015).

A high performance culture and a good working climate are encouraged at Transelec. The latter has been assessed by the OIH Survey since 2011. This survey considers nine organizational health dimensions and the company’s performance was assessed as outstanding in the industry.

RESPECT COMMITMENT INTEGRITY EXCELLENCE         Our Values

Our own employees are assisted by over 1,600 workers from contracting companies, who take part in our safety and training programs with a preventive focus.

EMPLOYMENT INDICATORS

491

Number of employees

1,639

Number of contractors

82

Number of women (only including our employees)

493

Number of employees

1,399

Number of contractors

2,090

Number of women (only including our employees)

508

Number of employees

2,090

Number of contractors

74

Number of women (only including our employees)

03

HISTORY

With a track record spanning over 60 years in the industry, Transelec makes all of its know-how and experience in design, construction, operation and maintenance of power transmission facilities available for the country’s development.

Go from left to right to view each milestone by year.

  • The company was founded in 1943, when CORFO created the National Electricity Company (ENDESA).

  • 50 years later, in 1993, the company's Power Transmission Division became the subsidiary Compañía Nacional de Transmisión Eléctrica S.A., which subsequently became Transelec S.A.

  • The SIC power grid became fully independent in October 2000, when a 100% stake in Transelec was purchased by the Canadian company Hydro-Québec.

  • In 2003, Transelec was incorporated into the Far North Interconnected System, SING, with the purchase of 924 kilometers of 220 kV transmission lines.

  • Ever since June 2006, 100% of the company is owned by the Canadian consortium comprised of Brookfield Asset Management (BAM), the Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC) and the Public Sector Pension Investment Board (PSP).

  • In 2009 Transelec implemented better technology, such as the Statcom system that increases maximum transmission capacity, and pioneered the contribution of power from a non-conventional renewable energy (NCRE) source into the SIC power grid.

  • In 2012 Transelec completed construction of the Caserones transmission system owned by Minera Lumina Copper Chile, a highly complex projects for customers in the mining industry.

  • In October 2014 Transelec opened its National Transmission Operation Center (CNOT) in Cerro Navia, which connected control centers and enabled a single, direct relationship with the CDECs.

  • That same year, the consortium of Canadian shareholders that owned Transelec created the company Conelsur in Peru and purchased transmission assets from Edegel and Chinango, thus contributing its renowned financial strength and Transelec's substantial operating experience to the Peruvian market.

04

THE SYSTEM

Chile’s Interconnected Power System works based on four power grids: the Far North Interconnected System (SING), the Central Interconnected System (SIC), and the Aysén and Magallanes systems. Transelec operates in the SIC and SING power grids.

Power is transported using high voltage transmission lines, which connect power generation sources to cities and industrial and mining users. Power is received by substations there and then converted to low voltage for distribution to end users.

Transelec is responsible for providing an uninterrupted power supply to the people of Chile and thus contributes to improving their quality of life and the country’s development.

05

BUSINESS MODEL

Transelec power transmission services are grouped into three business areas:

NATIONAL SYSTEM

Economically efficient and necessary transmission lines and substations in order to enable the company to meet all demand under different power generation availability scenarios.

ZONE SYSTEMS

Facilities interconnected to the power grid, arranged in order to provide exclusive power to groups of free or regulated end consumers located in distribution company concession zones.

EXCLUSIVE SYSTEMS

Power transmission lines and equipment mainly used to provide power to non-regulated customers or to evacuate production from a power plant or a limited number of power plants. Transmission by means of these systems is regulated by private contracts between the parties.

06

CORPORATE GOVERNMENT

Richard Legault

CHAIRMAN

Paul Dufresne

DIRECTOR

Brenda Eaton

DIRECTOR

Bruno Philippi Irarrázabal

DIRECTOR

Alfredo Ergas Segal

DIRECTOR

José Ramón Valente Vias

DIRECTOR

Blas Tomic Errázuriz

DIRECTOR

Mario Valcarce Durán

DIRECTOR

Alejandro Jadresic Marinovic

DIRECTOR

Andrés Kuhlmann Jahn

GENERAL MANAGER

Rodrigo López Vergara

OPERATIONS VICE-PRESIDENT

Claudio Aravena Vallejo

VICE-PRESIDENT OF HUMAN RESOURCES

Francisco Castro Crichton

FINANCE VICE-PRESIDENT

Arturo Le Blanc Cerda

FISCAL AND LEGAL AFFAIRS VICE-PRESIDENT

David Noe Scheinwald

CORPORATE AFFAIRS AND SUSTAINABILITY VICE-PRESIDENT

Eric Ahumada Gómez

COMMERCIAL AND BUSINESS DEVELOPMENT VICE-PRESIDENT

Alexandros Semertzakis Pandolfi

ENGINEERING AND PROJECT DEVELOPMENT VICE-PRESIDENT

In 2006 the Canadian consortium comprised of Brookfield Asset Management (BAM), the Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC) and the Public Sector Pension Investment Board (PSP) purchased a 100% stake in Transelec, putting its renowned financial strength and experience at the service of Chile’s growth requirements.

For 2015, the profit sharing policy states that during a specific fiscal year, the Board of Directors aims to distribute 100% of the net profits reported as dividends, considering the company’s financial situation, commitments made by Transelec when the company issued bonds on the national and international markets, and considering the impacts of implementing IFRS.

No dividend may be declared if it would prevent the company from meeting its financial commitments.

With respect to a specific fiscal year, the Board of Directors may consider it appropriate to declare temporary dividends that could be distributed depending on conditions at the time. Overall temporary dividends shall not exceed 75% of the company’s profit that can be distributed for the current fiscal year according to the latest forecast available.

Our Canadian shareholders have created several committees in order to be kept informed regarding important issues and thus support the company at all levels.

AUDIT COMMITTEE

Creation of an Audit Committee was approved in April 2007. This committee is different from the committee indicated in the Corporations Law, whose duties include, among others, reviewing the company’s audit reports, balance sheets and other financial statements, and internal systems. The Transelec Audit Committee is comprised of four directors, who are appointed by the Board of Directors and serve for a terms two years, after which they may be re-elected. The Committee will elect a chairman from among its members and a secretary, who may be one of its members or the secretary of the Board of Directors. This committee held four meetings in 2015.

INVESTOR ADVISORY COMMITTEE

The Investor Advisory Committee is comprised of directors and senior executives. Its mission is to improve information submitted to the Board of Directors regarding the company’s different projects and thus facilitate decision making by the Board of Directors. 

CORPORATE REPUTATION AND REGULATORY COMMITTEE

The Corporate Reputation and Regulatory Committee is comprised of company directors and executives. It meets twice per semester to review the Corporate Reputation and Regulatory Strategy, which will be executed in keeping with the main legal and regulatory amendments made in the power and environmental sectors, and to lead tariff setting processes for the national and zone power transmission systems.

FINANCE COMMITEE

The Finance Committee is made up of company directors and executives. It meets once per month to revise issues related to financial affairs and its purpose is to review the company’s financial strategy and to provide consultancy and approve different proposals that are important for the financial activities being executed by Transelec.

HUMAN RESOURCES COMMITTEE

The Human Resources Committee is comprised of company directors and executives. It meets at least once per year to review issues related to the people who make up the Transelec team. The issues reviewed include the revision of financial KPIs, which are the basis of the current variable bonus pyramidal structure at the company, as well as other issues related to the development of people, training, etc.

INTEGRAL MANAGEMENT SYSTEM COMMITTEE

This committee’s mission is to discuss all matters related to risk prevention and safety, maintenance, compliance with environmental and occupational health regulations at the company. The committee is comprised of several vice-presidents, by the assistant manager of the Quality and Occupational Health and Safety assistant manager, and by a legal advisor from the Legal Affairs Vice-Presidency.

CORPORATE GOVERNANCE COMMITTEE

The Corporate Governance Committee is comprised of Company directors and executives who meet twice per year to propose and nominate members of the Board of Directors and to evaluate their management. In addition, their mandate includes examination and evaluation of Transelec corporate governance guidelines and making recommendations regarding these to the Board of Directors.

OTHER COMMITTEES

Coordination Committees: these involve the different Transelec vice-presidencies and are held regularly in order to coordinate the most important issues for the company:

  • Executive Committee
  • Business Committee
  • Projects Committee
  • Operations Committee
  • Operational Excellence and Results Committee
  • Regulatory Agenda
07

INNOVATION

Innovation has been declared to be the transforming engine that generates new value for Transelec.

By means of an internal program and thanks to a specific area provided for setting objectives and formulating methodologies and systems, the company is making headway in the development of organizational capacities and pro-innovation culture.

These results stem from a strategic planning process started in 2015 in order to link innovation and business strategy, while learning to create harmonious co-existence between operational excellence and innovation.

However, this concept is nothing new for the organization, since it has been participating in an ideas contest that has received over 550 initiatives from the company’s employees.

08

CERTIFICATION AND AWARDS

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