The Department of Energy welcomes the ten-year extension of the Power Sector Assets and Liabilities Management Corporation (PSALM) through Republic Act No. 12179, titled “An Act Amending Section 50 of Republic Act No. 9136, Otherwise Known as the Electric Power Industry Reform Act of 2001,” which lapsed into law on 18 April 2025. We extend our sincere gratitude to all legislators and advocates whose efforts made the passage of this important law possible.

The enactment of RA 12179 ensures that PSALM can continue and complete its mandate to privatize its remaining assets. The extension also provides PSALM with additional time to manage its outstanding financial obligations, thereby preventing the transfer of its remaining liabilities to the National Government in 2026. Moreover, this will enable PSALM to secure more favorable borrowing terms and negotiate long-term, advantageous financing arrangements.

The extension of PSALM’s corporate life would finally allow the rehabilitation of the Agus-Pulangi hydropower complex in Mindanao. The rehabilitation would restore at least 400 MW of renewable energy production and address any safety and flooding risks to nearby communities. The Agus-Pulangi rehabilitation was not achieved in the previous administration due to the absence of a viable counterparty given the end of PSALM’s corporate life in 2026.