President signs law extending PSALM's life by 10 years

President Ferdinand R. Marcos Jr. signed Republic Act 12179 into law on April 18, extending the corporate life of Power Sector Assets and Liabilities Management (PSALM) Corporation by another ten years.

RA 12179 amends Section 50 of RA 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001, allowing PSALM to continue its operations until June 26, 2036.

PSALM's mandate includes managing the orderly sale and disposition of National Power Corporation’s generation assets, real estate, and other disposable properties while liquidating financial obligations in an optimal manner.

The new law also mandates that all PSALM's assets and outstanding liabilities will revert to and be assumed by the national government at the end of its extended term on June 26, 2036.

PSALM is prohibited from collecting or charging consumers for stranded costs and debts during its extended period without prior approval from the Energy Regulatory Commission.