Mexico will sell power to Los Angeles

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Mexico's Federal Electricity Commission signed an agreement with Los Angeles to allow Mexico's state-owned power company to sell electricity to the U.S. city.

Electricity will be generated at Mexico's Cerro Prieto geothermal power plant in Mexicali and then sold to the Los Angeles Department of Water & Power, according to the memorandum of understanding signed by Los Angeles Mayor Antonio Villaraigosa and Mexico's Federal Electricity Commission Chief Alfredo Elias Ayub.

How much power will be generated and sold was not disclosed.

Mexico's commission said it recently signed a similar deal with Belize and is close to finalizing another power sale agreement with Guatemala, bringing its foreign power sales to $100 million by the end of 2010.

The Mexican utility said its goal is to "diversify the sources of electricity generation" and reduce emissions of pollutants and greenhouse gases.

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