Electric Regional Company of the South Anonymous Society

Historic Synopsis

Foundation

First Stage

Secondary Stage

Third Stage

April 23 of l897 gives up the creation of the first SOCIETY "ELECTRIC LIGHT" in the country, with home in the city of Loja; this society was conformed initially for twenty associates, of the who seventeen were old shareholders and the three residual, minor shareholders

Subsequently, in the course of 1897, 1898 until April 1 of 1899, the admission of five new associates is produced, in quality of old shareholders, arriving the total quantity of twenty-five associates; The capitalization of the society by means of the purchase of new actions per party of the old associates is also produced.

According to the public writing of conformation, celebrated in front of Mr. Actuary Public, M. Fernando Palacios, today would Note Secondary of the Canton Loja, this was an Anonymous Society of limited responsibility, with a duration of twenty years, and with a social capital of S/. 16.300,00. their first Manager was the Dr. Ramón Eguiguren and the Managing Engineer were the gentleman Alberto Rhor (French citizen), and between the objectives of the nascent society, they figured:

a.- Install a central in order to proportion electric light of public service and matter; and,

b.- Install a factory of seeing and work wood.

We know that by means of a journey effected by the Mr. José Miguel Burneo to the city of Lima, (Peru), he had the opportunity of knowing to the Mr. Rhor Albert, who had wide knowledge in plants of electric power and to their time, by means of a journey to the city of Loja in order to install hydraulic team of mills, he was interested in to the citizens to bring a machine that serves in order to proportion electric illumination.

Subsequently, and in execution of the statutes of the society, traveled Mr. Rhor to Europe for the purpose of making construct the machinery, the one which carried something more than one year; this once built, he arrived for sea until the Puerto of Maina (Peru), from this Puerto and by not existing in that then roads for cars, it was transferred until the city of Loja to loin of mule, for the one which should be unarmed; arrived the machinery to Loja, was proceeded to their installation, under the address of the mentioned Mr. Rhor.

Once installed the central, their official inauguration carries off effect the First of April of 1899, (Anniversary of the day of the Ecuadorian electrician and electric engineer), they for like effect circulated invitations, whose text said: "AL GLORY WORK AND TO THE INDUSTRY, THEY IN NARROW ACHIEVEMENT GO DE ROAD THE LIFE. THE EXTENDED, THE POWERFUL EMBRACE. SHE BATHED DE LIGHT AND SMILING," of this manner the city of Loja was the first in having electric light in the Ecuador, and probably the third city of South America, then of Lima and Buenos Aires.

First Stage

"COMPANY ELECTRIC ZAMORA S.A."

Looks Bequeath them: May 10 of 1950, in a would the Note I of the city. Remove, it rise public writing the minute of constitution of the COMPANY ELECTRIC ZAMORA S.A., being Shareholders: the I. Municipality of Loja, with a 60% of the Social Capital and the Corporation of Development, with the 40% of the Social Capital.

One must highlight that initially the Company relied on an I mount of S/. 68.709,80 in firm assets of: gear, movable and teams.

Subsequently it entered a new associate shareholder: The Joins of defense of the laws of Catamayo, and the social capital reached S/. 20'500.000,00. The Company Electric Zamora had a period of duration of 14 years from 1950 to 1964.

The contribution of the associates makes you it with aims to cover the necessities of carrying out new investments, in order to satisfy the demands of energy that already in that time was required; the small group that served to the city didn't supply to the demand of energy, the one which obligated to the shareholders to install a new unit that makes San Ramón it in the site, in the year of 1957, their first phase.

They exercised the Management the gentlemen: Dr. Arcenio Vivanco Neira, Mr. José Miguel Eguiguren, Engineer Ramón Eguiguren and Dr. Ernesto Rodríguez Witt, who in the period of 1950 to 1964, they lent their valuable contingent in order to seat a firm phase that subsequently will have new horizons like Company.

Area of concession: The area of concession that had the Company Electric Zamora S.A. exclusively it was the city of Loja.

A made important of remembering is that the Company Electric Zamora S.A., it served their clients through a group of small generation installed in the site named CHILE PROPERTY, that drives to the barium "Zamora Huaico"; it is important also mark that the type of current that produced the generator was current direct of 220 V, with a capacity of generation of 80 kW.

Secondary Stage

"COMPANY ELECTRIC LOJA S.A."

Looks Bequeath them: For decision of the gentlemen shareholders, they resolve to change the social denomination of the "Company Electric Zamora S.A.," for "Company Electric Loja S.A.," like indeed so makes you it by means of public writing of November 28 of 1964 and of course the increase from capital and reformation of the Statutes; these looks of legal order, they make that the social capital increases S/. 28'600.000,00.

They are Shareholders:

• I. Municipality of Loja.

• INECEL.

• Joins of Defense of the Laws of Catamayo.

• Joins of Economical Recuperation of Loja and Zamora Chinchipe.

• I. Municipality of Macará.

• Provincial Advice of Loja.

This change meant a gigantic advance to the Company, because the initiative doesn't sole is apprehended in the County of Loja but also to the County of Zamora Chinchipe; Is indubitably that in this secondary phase, where experience the Electric Company the chances of the nature, upon occasioning a fall of earth in the canal of San Francisco, when the Company had inaugurated already their second hydroelectric group in San Ramón, this act provoked that the city of Loja, stay for the lapse of three months in darkness. Situation that I cause concern between the shareholders, that they saw the necessity of increasing the capital with the end of searching for solution to these problems of act of God. Like Company Electric Loja, succeed in enlarging the electric net; Is as well as it are tried to carry the energy through a line of LOJA-CATAMAYO transmission, population that enters to form part of the social and economical development of that place; so same, the city of Macará is composed to this development, upon receiving the Company like part of payment of actions, a small group that would serve in order to concede the energy to the inhabitants of this sector. Was attended to the public from the 18H00 to 24H00.

In the Company Electric Loja S.A., they act the Dr like titular Managers: Gilberto Muñoz; In 1969 replace the Engineer Wilson Vivanco Arias. It is need highlight that the number of employing that counted the Company for the year 1964 they were of: 45 of operation and 22 workers.

Third Stage

"COMPANY ELECTRIC REGIONAL DEL SOUTH S.A."

Legal look: March 19 of 1973, a change of social denomination through the public writing of this date exists, in the one which passes Electric Loja S.A of Company., to COMPANY ELECTRIC REGIONAL OF SOUTH S.A.

Increased the social capital to S/. 68'356.000,00 and their shareholders are:

• INECEL (majority Associate).

• Provincial Advice of Loja.

• I. Municipalities of: Loja, Calvas, Celica, Saraguro, Macará, Paltas, Zamora and Gonzanamá.

Subsequently in the year 1976, there is a new increase from social capital and ascend to the add of S/. 262'066.000,00 in the that the INSTITUTE ECUADORIAN DE ELECTRIFICACIÓN has a 98% of the actions.

The necessities of expansion of the service create the necessity logically also of increasing the social capital and now count the Electric Regional Company of the South S.A., I with a mount of S/. 2.8l9'876.000,00. they Entered the I. Municipalities like new shareholders of: Puyango, Zapotillo, Catamayo, Espíndola, Sozoranga and the Provincial Advice of Zamora.

The EERSSA meets receiving energy of the National Interconnected System (SNI) corresponding to the INECEL from June of 1987 through the line of transmission to 138 kV Loja-Cuenca and the Sub estuation Loja of 138/ 69 kV.

In March of 1994, for a decision of the General Meeting of Shareholders, the change of Manager is produced, taking on the I load the Engineer frizzy Rodrigo Argudo. One year more takes a long time produces change in the administrative levels of the Company, the Technical Address is separated in Address of Operation and Maintenance and Address of Planning and Construction

In November of 1996, the General Meeting of Shareholders names like titular manager to the Engineer Ramiro Maldonado, their pass is fleeting for the Company since only was the front of the same something more than one month.

In December of 1996, for decision of the General Meeting of Shareholders Manager is named the Engineer frizzy Rodrigo Argudo again.

The Engineer Daniel Mahauad Ortega is named Manager in March of 1997.