Federal utility to provide Mexico City electricity

MEXICO CITY — The Mexican government says the Federal Electricity Commission will provide service to Mexico City and the surrounding areas, taking over from a disbanded public utility.

President Felipe Calderon disbanded the utility Luz y Fuerza over the weekend, citing a gaping budget hole that threatened service to 25 million consumers.

The Energy Department announced in a statement Tuesday that the Federal Electricity Commission will now provide service to Mexico City and parts of four central states.

The government had been considering creating another state company to replace Luz y Fuerza, which employed 44,504 people.

The federal utility provides service to the rest of the country, and had already taken over provisionally for Luz y Fuerza.