Legal basis under EPIRA and related laws
- Republic Act No. 9136 (EPIRA) establishes PSALM Corporation under Section 49 as a government-owned and controlled corporation to take ownership of NPC generation assets, liabilities, IPP contracts, real estate, and other disposable assets.
- Under Republic Act No. 9136, PSALM Corporation is mandated by Section 50 to manage the orderly sale, disposition, and privatization of NPC assets to liquidate NPC financial obligations and stranded contract costs in an optimal manner.
- EPIRA’s framework makes PSALM Corporation, by operation of law, a successor-in-interest of NPC after transfer of NPC assets and assumption of liabilities.
- Executive Order No. 169 is issued to address the EPIRA gap on attaching PSALM as an attached agency for policy and program coordination and general supervision within the Executive Branch.
- Executive Order No. 169 invokes the President’s authority under Section 5, Chapter 1, Book IV of the Revised Administrative Code of 1987 to assign offices and agencies not otherwise assigned by law to a department or indicate the department to which a government corporation may be attached.
Policy goal: coordination with DOE energy governance
- Executive Order No. 169 aligns PSALM’s EPIRA-mandated functions with DOE’s role in supervising and controlling government activities relative to energy projects.
- Executive Order No. 169 ties this attachment to the State energy policy goals embodied in Section 2 of Republic Act No. 7638 (DOE Act of 1992).
- Section 1 states that the attachment ensures policy and program coordination and general supervision of government energy-related activities.
Attachment of PSALM to the DOE
- Section 1 assigns the PSALM Corporation as an attached agency of the Department of Energy (DOE).
- Section 1 requires the attachment to ensure policy and program coordination and general supervision of energy related activities of the government.
- The attachment operates as a structural administrative relationship between DOE and PSALM, reflecting PSALM’s energy sector role under EPIRA.
Attachment governed by the Administrative Code
- Section 2 provides that the relationship of DOE and PSALM Corporation is governed by Section 38(3), Chapter 7, Book IV of Executive Order No. 292 (Administrative Code of 1987).
- Section 2 establishes that the operative legal framework for the DOE–PSALM attachment follows the specified Administrative Code provision.
PSALM’s annual reporting obligation
- Section 3 requires the President of PSALM Corporation to submit an annual report to the Secretary of Energy.
- Section 3 directs the annual report to reflect the progress of the privatization program.
- Section 3 requires inclusion of other related projects in the annual report.
- Section 3 requires that the annual report be in consonance with the objectives of Republic Act No. 9136 (Electric Power Industry Restructuring Act of 2001).
Repeal and inconsistency rule
- Section 4 revokes, amends, or modifies all executive orders, rules and regulations, and other issuances or parts thereof that are inconsistent with Executive Order No. 169.
- Section 4 applies the inconsistency rule to the extent of the conflict, resulting in revocation, amendment, or modification as warranted.
Effectivity through publication
- Section 5 sets effectivity on fifteen (15) days after publication.
- The publication must be in two (2) newspapers of general circulation before the fifteen (15) day period begins to run.