Israel Electric Corp. is the sole integrated electric utility in the State of Israel and generates, transmits and distributes substantially all the electricity used in the State of Israel. The State of Israel owns approximately 99.85%of the Company.

As of December 31, 2009, IEC maintains and operates 17 power station sites (including five sites for steam driven power stations) with installed generating capacity of 11,664 megawatts. Each Company power station site has one or more separate units to generate electricity, leading to a total of 59 generating units, of which 20 are steam powered and 39 gas turbines (of which 14 industrial gas turbines, 16 jet gas turbines, 8 combined cycle gas turbines and 1 industrial gas turbine for future operation in the combined cycle format).

IEC’s steam driven generating units produce electricity with steam turbines and include carbonic units powered by coal and/or fuel oil, steam units driven by fuel oil and/or natural gas, jet gas turbines driven by diesel only and industrial gas turbines driven by diesel and/or natural gas.