QuestionsQuestions (EXECUTIVE ORDER NO. 169)
To assign the Power Sector Assets and Liabilities Management (PSALM) Corporation as an attached agency of the Department of Energy (DOE) for policy and program coordination and general supervision.
Republic Act No. 9136 (EPIRA) created PSALM (Sec. 49). PSALM is tasked to take ownership of NPC generation assets, liabilities, IPP contracts, real estate, and other disposable assets, and to manage the orderly sale/disposition/privatization to liquidate NPC financial obligations and stranded contract costs (Sec. 50).
The executive order points to the transfer of NPC assets and assumption of liabilities by PSALM, stating that by operation of law PSALM becomes a successor-in-interest of NPC.
Because EPIRA does not expressly indicate which line department should supervise PSALM, so the President relies on authority under the Revised Administrative Code to determine the attachment.
Section 5, Chapter 1, Book IV of the Administrative Code of 1987 (Executive Branch re: assignment/attachment of offices and agencies not otherwise assigned by law).
It assigns PSALM as an attached agency of DOE to ensure policy and program coordination and general supervision of government energy-related activities.
Section 38(3), Chapter 7, Book IV of the Administrative Code of 1987 governs the relationship.
It generally means DOE provides guidance and oversight for policy alignment and program coordination, but it does not automatically remove PSALM’s corporate independence or statutory functions unless the governing framework so provides.
The President of PSALM Corporation must submit an annual report to the Secretary of Energy reflecting the progress of the privatization program and other related projects in consonance with EPIRA objectives.
DOE supervises through attachment. The rationale is that PSALM’s functions are closely allied with DOE’s energy policy and supervisory mandate under the DOE Act (R.A. 7638).
DOE’s supervision and control over all government activities relative to energy projects to attain state energy policy goals under Section 2 of R.A. 7638.
Under Section 4 (Repealing Clause), all inconsistent executive orders, rules, regulations, and other issuances (or parts thereof) are revoked, amended, or modified accordingly.
Fifteen (15) days after publication in two (2) newspapers of general circulation.
It strengthens institutional alignment by attaching PSALM to DOE for coordination and supervision, while also requiring annual reporting tied to the privatization program and EPIRA objectives.
The President (Gloria Macapagal-Arroyo) and the Executive Secretary (Alberto G. Rómulo) signed it, indicating compliance with the standard requirements for presidential issuances.