Allocation of Malampaya Funds to Cut Power Rates

Joint Congressional Energy Commission (JCEC): A congressional commission established under RA 9136 and amended by RA 11285 overseeing energy matters.
Malampaya Fund: Government shares from the Malampaya Natural Gas Project's net production proceeds as per relevant decrees.
Malampaya Natural Gas Project: The extraction project under Service Contract 38 offshore Northwest Palawan.
Net Government Share: The 60% portion of the government from Malampaya project proceeds after certain deductions.
Net National Government Share: Portion of the net government share minus local government shares.
Net Production Proceeds: Gross proceeds after deducting Filipino Participation Incentive and operating expenses.
Stranded Contract Costs: Amounts where contracted costs under eligible NPC contracts exceed actual selling prices, as approved by the Energy Regulatory Board by end of 2000.
Stranded Debts: Unpaid NPC financial obligations not liquidated by asset sales or privatization.
Universal Charge: Non-bypassable monthly charges collected from all electricity end-users.

Allocation of PHP 208 billion from net national government share for payment of stranded contract costs and stranded debts assumed by PSALM.
Includes anticipated shortfalls in liabilities after applying PSALM collections from NPC asset sales, IPP contracts, and operations.
Annual allocations must be part of the General Appropriations Act aligned with fiscal programs; procedures are in the implementing rules.
Excess funds remain in the Special Account for energy development programs per PD No. 910.
Department of Budget and Management ensures timely release of funds to PSALM.
If liabilities are fully paid before fund exhaustion, remainder supports energy resource development.
Universal charges currently collected may be covered by the Malampaya fund allocation.

PSALM must submit annual projected and actual cash flow statements about stranded costs, debts, and payments.
Reports go to DOE, ERC, DOF, DBM, and JCEC with specific deadlines (June 30 before and after the year).
Regular coordination between PSALM, DOE, DOF, and DBM ensures proper records of fund disbursements.
Reports must be publicly accessible via PSALM's website.

The Joint Congressional Energy Commission shall oversee the implementation of the Act.

DOE and DOF, in coordination with DBM, Bureau of Treasury and PSALM, to promulgate implementing rules within 90 days from effectivity.
No new universal charges for stranded costs and debts shall be collected following the implementing rules.

Separability Clause: Invalidity of any provision does not affect the remainder of the law.
Amendatory Clause: Section 8 of PD No. 910 amended regarding use of the Special Account.
Repealing Clause: Laws inconsistent with this Act are repealed or modified accordingly.
Effectivity: The Act takes effect 15 days following publication in the Official Gazette or a newspaper of general circulation.