Question & AnswerQ&A (EXECUTIVE ORDER NO. 169)
PSALM Corporation is a government-owned and controlled corporation created under Section 49 of Republic Act No. 9136 (Electric Power Industry Reform Act of 2001) to take ownership of all existing NPC generation assets, liabilities, IPP contracts, real estate, and other disposable assets, and to manage their sale, disposition, and privatization.
PSALM Corporation's primary mandate is to manage the orderly sale, disposition, and privatization of NPC assets with the objective of liquidating all NPC financial obligations and stranded contract costs in an optimal manner.
PSALM was assigned as an attached agency of the Department of Energy pursuant to Section 5, Chapter 1, Book IV of the Revised Administrative Code of 1987 and under Executive Order No. 169, following the silence of EPIRA on such assignment.
The DOE's supervision over PSALM is based on Section 37 of RA 9136 mandating the DOE's role in energy project supervision, and Section 2 of RA 7638 (DOE Act of 1992), which tasks the DOE to exercise supervision and control over all government activities related to energy projects.
The relationship between the DOE and PSALM Corporation is governed by Section 38(3), Chapter 7, Book IV of Executive Order No. 292 (Administrative Code of 1987), which pertains to policy and program coordination and general supervision.
The President of PSALM Corporation is required to submit an annual report to the Secretary of Energy reflecting the progress of the privatization program and other related projects in accordance with the objectives of RA 9136.
Executive Order No. 169 took effect fifteen (15) days after its publication in two newspapers of general circulation.
All executive orders, rules and regulations, and other issuances or parts thereof that are inconsistent with the provisions of Executive Order No. 169 are revoked, amended, or modified accordingly.
The Electric Power Industry Reform Act of 2001 (Republic Act No. 9136) governs the restructuring of the electric power industry and establishes the role of PSALM Corporation.