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The electricity sector in Mexico is undergoing a process of significant structural change. Traditional industry framework has been exposed to new market structures and greater competition, both of which are being introduced by changing regulations on who can generate, transmit, distribute and sell electricity. At present, Mexicopsilas power industry is changing to a competitive integrated model. The sector has been opened, since the 1990psilas, to private participation in generation, and policymakers and industry participants are studying various power sector structural models that have been implemented in other countries in order to help shape the future of the Mexican power sector. Electricity industry restructuring is based in part on the assumption that transmission systems should be flexible, reliable, and open to all exchanges no matter where the suppliers and consumers of energy are located and who they are. However, neither the existing transmission systems nor its management infrastructure can fully support this open exchange. This paper describes the main issues affecting the transmission and distribution system in Mexico under this competitive environment and a transmission planning methodology that takes explicit account on the uncertainties associated with the location and size of new generating power stations in order to produce leas-cost and robust transmission expansion plans. Additionally, the planning process involves a rigorous analysis of the economics of the resulting transmission plans.