The Department of Energy (DOE) warmly welcomes the ten-year extension of the Power Sector Assets and Liabilities Management Corporation (PSALM) through Republic Act No. 12179. The law, titled “An Act Amending Section 50 of Republic Act No. 9136, Otherwise Known as the Electric Power Industry Reform Act of 2001,” lapsed into law on 18 April 2025.
“We extend our sincere gratitude to all legislators, stakeholders, and advocates whose collective efforts made the passage of this vital legislation possible,” said 𝐄𝐧𝐞𝐫𝐠𝐲 𝐒𝐞𝐜𝐫𝐞𝐭𝐚𝐫𝐲 𝐑𝐚𝐩𝐡𝐚𝐞𝐥 𝐏.𝐌. 𝐋𝐨𝐭𝐢𝐥𝐥𝐚.
With the enactment of RA 12179, PSALM is now empowered to fulfill and complete its mandate to privatize remaining assets and responsibly manage its financial obligations. The extension ensures that the corporation can prevent the automatic transfer of its liabilities to the National Government by 2026. Additionally, it enables PSALM to secure more favorable borrowing terms and enter into long-term financing arrangements that are both stable and cost-effective.
Crucially, this extension paves the way for the long-awaited rehabilitation of the Agus-Pulangi hydropower complex in Mindanao. The rehabilitation project is expected to restore at least 400 megawatts of renewable energy capacity while addressing critical safety and flood mitigation issues for surrounding communities. The initiative was previously stalled due to the impending expiration of PSALM’s corporate life, which had made it difficult to secure a viable development partner.
The DOE reaffirms its commitment to advancing sustainable energy development and recognizes this legislative milestone as a key step forward in strengthening the country’s power infrastructure and financial stability.
