The following are Pampa’s expansion projects under the Energía Plus Program, whereby generators are able to freely negotiate contracts and prices directly with large consumers:

• New open cycle of Central Térmica Güemes. This was the first of the Energía Plus expansion projects to be completed. Construction was completed in July, 2008, and it began commercial operations on September, 2008. The project consists of a new 100 MW open-cycle through the installation of a new natural gas-powered aero-derivative turbogenerator of 43% efficiency.
   
• Loma de la Lata Project. Pampa is expanding Loma de la Lata’s current installed capacity by 178 MW through the conversion of the plant to combined cycle. The project will increase Loma de la Lata’s capacity by approximately 50% with not additional gas consumption, resulting in increased efficiency for the whole plant. Loma de la Lata’s current 369 MW open cycle operates at an efficiency of approximately 32% and we expect that upon completion of the project, Loma de la Lata’s combined cycle will operate at an efficiency of approximately 50% for 547 MW. 
   
• Ingentis Project. Pampa, together with the province of Chubut, will construct generation plant consisting of two natural gas-powered aero-derivative turbogenerators with a combined capacity of 205 MW to be allocated to said province. It is anticipated that the turbines will operate with an efficiency of 43%. At present, and given the local and international financial outlook, the project is being revised, particularly regarding its location to take advantage of current natural gas availability and transportation capacity.
   
• New Gas-Fired Engines. This project consists of two gas-fired motor generators with a combined installed capacity of approximately 16 MW and with an efficiency of 43%. Currently, the project’s location is yet to be confirmed.

Energy Plus Regulation

In September 2006, the Secretariat of Energy issued Resolution No. 1281/06 in an effort to respond to the sustained increase in energy demand following Argentina’s economic recovery after the crisis. This resolution seeks to create incentives for energy generation plants in order to meet increasing energy needs. The resolution’s principal objective is to ensure that energy available in the market is used primarily to service residential users and industrial and commercial users whose energy demand is at or below 300 kW and who do not have access to other viable energy alternatives. To achieve this, the resolution provides that:

• Large users in the wholesale electricity market and large customers of distribution companies (in both cases above 300 kilowatts), will be authorized to secure energy supply up to their “base demand” (equal to their demand in 2005) by entering into term contracts; and 
   
• Large users in the wholesale electricity market and large customers of distribution companies (in both cases above 300 kilowatts) must satisfy any consumption in excess of their base demand with energy from the Energy Plus system at unregulated market prices. The Energy Plus system consists of the supply of additional energy generation from new generation and/or generating agents, co- generators or auto-generators that are not agents of the electricity market or who as of the date of the resolution were not part of the WEM. Large users in the wholesale electricity market and large customers of distribution companies can also enter into contracts directly with these new generators or purchase energy at unregulated market prices through CAMMESA.

The resolution also established the price large users are required to pay for excess demand, if not previously contracted underEnergy Plus, which is equal to the marginal cost of operations. This marginal cost is equal to the generation cost of the last generation unit transmitted to supply the incremental demand for electricity at any given time.