Utility costs include electricity and natural gas costs and represent up to 8.9 percent of total location-sensitive costs. Mexico has very low utility costs when compared to other major growth markets. For example, the capital of Baja California,
Mexicali, lies just east of
Tijuana, supplies most of its inhabitant’s electricity from hydroelectric power provided by the Colorado River.
Currently, utility costs are 4.79% less than in China. Within the last 2 years Mexico also made the electrical infrastructure for new facility sites easier to obtain by streamlining procedures, offering training opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials.