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Steve Ward Success Story
Delphi WindPower
Situation
In 2013 Delphi Mexicowas spendingover $20 Millionannuallyon electricity.
The Mexicanmarket was regulatedrequiringall electricityto be purchasedfrom the government
monopolyCFE unlesscompaniesgeneratedtheirown electricity.
Delphi did not want to spend capital on self-generation.
CFE rates had increased7% annuallyover the previoustenyears.
The majority of Delphi Mexicosaleswere in USD so Delphi Treasury preferredmajor expensestobe
contracted in USD to reduce FX impact (CFE purchaseswere in Pesos).
Delphi’sconcernsfor the environmentwere escalatingcreating a demand for “Green” energy.
Delphi requireda reliable source of power to insure uninterruptedproductionat all sites.
Task
To secure a reliable “Green” energysupplyforDelphi Mexicoat lowercost in USD without any capital
expenditure.
Action
The project started witha deepdive into the Mexicoenergymarket via the internet,trade shows and
company contacts.
A “loophole” was discoveredenablingDelphi topurchase power from a private generator underthe
self-supplylegislationifDelphi purchaseda fewshares of the generatorcompany and thereby was
supplyingitself.
A solicitationfor energysupply proposalsunder the self-supplyscheme wassentto all known
generators.
A cross functional Delphi team reviewedthe proposalsand enteredintodetailednegotiationsand site
visitswith the top three contenders.
Awarenessand update meetingswere heldup to the Delphi CEO level inorder to facilitate the
project’seventual approval.
Delphi Treasury and Legal joinedthe team whenproposedcontractual language was available.
ResultsDelivered
A $300+ MillionfifteenyearWindFarmpower agreementcovering34 Delphi Mexicosites(240 GWh,
80% of Delphi Mexicoconsumption) was signedinMay 2013.
It providedfor “Green” energy withimmediate multi-milliondollarannual savings at a rate fifteen
percentbelowCFE in USD without any Delphi capital expenditures.
Underthe scheme the electricitysupplyto Delphi siteswas reliable:
 WindFarm pumps power into the National CFE Grid
 CFE providescreditsto the WindFarm for the power
 Delphi takes its powerfrom the National CFEGrid
 CFE invoicesDelphi for all power consumptionlesscredits as directedby the Wind
Farm
 Delphi is invoicedbythe WindFarm for the creditedconsumption
The WindFarm started production November2014.

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Success Story - Delphi Wind Power

  • 1. Steve Ward Success Story Delphi WindPower Situation In 2013 Delphi Mexicowas spendingover $20 Millionannuallyon electricity. The Mexicanmarket was regulatedrequiringall electricityto be purchasedfrom the government monopolyCFE unlesscompaniesgeneratedtheirown electricity. Delphi did not want to spend capital on self-generation. CFE rates had increased7% annuallyover the previoustenyears. The majority of Delphi Mexicosaleswere in USD so Delphi Treasury preferredmajor expensestobe contracted in USD to reduce FX impact (CFE purchaseswere in Pesos). Delphi’sconcernsfor the environmentwere escalatingcreating a demand for “Green” energy. Delphi requireda reliable source of power to insure uninterruptedproductionat all sites. Task To secure a reliable “Green” energysupplyforDelphi Mexicoat lowercost in USD without any capital expenditure. Action The project started witha deepdive into the Mexicoenergymarket via the internet,trade shows and company contacts. A “loophole” was discoveredenablingDelphi topurchase power from a private generator underthe self-supplylegislationifDelphi purchaseda fewshares of the generatorcompany and thereby was supplyingitself. A solicitationfor energysupply proposalsunder the self-supplyscheme wassentto all known generators. A cross functional Delphi team reviewedthe proposalsand enteredintodetailednegotiationsand site visitswith the top three contenders. Awarenessand update meetingswere heldup to the Delphi CEO level inorder to facilitate the project’seventual approval. Delphi Treasury and Legal joinedthe team whenproposedcontractual language was available. ResultsDelivered A $300+ MillionfifteenyearWindFarmpower agreementcovering34 Delphi Mexicosites(240 GWh, 80% of Delphi Mexicoconsumption) was signedinMay 2013. It providedfor “Green” energy withimmediate multi-milliondollarannual savings at a rate fifteen percentbelowCFE in USD without any Delphi capital expenditures. Underthe scheme the electricitysupplyto Delphi siteswas reliable:  WindFarm pumps power into the National CFE Grid  CFE providescreditsto the WindFarm for the power  Delphi takes its powerfrom the National CFEGrid  CFE invoicesDelphi for all power consumptionlesscredits as directedby the Wind Farm  Delphi is invoicedbythe WindFarm for the creditedconsumption The WindFarm started production November2014.