NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
of ,l,c s 'cl ,''
24 MAY-6 PI ;21
SENATE
S. No.2656
Introduced by Senator Francis G. Escudero
AN ACT
PROVIDING FOR THE CONDONATION OF UNPAID OBLIGATIONS ON THE 
POWER CONSUMPTION OF THE PUBLIC UTILITIES DEPARTMENT - 
OLONGAPO CITY TO THE POWER SECTOR ASSETS AND LIABILITIES 
MANAGEMENT CORPORATION
EXPLANATORY NOTE
This bili is fiied in recognition of a serious threat on the financiai sustainability 
and solvency of the finances of the City Government of Olongapo, following the sale 
and assignment of its Public Utilities Department (PUD) to the Cagayan Electric Power 
and Light Company in 2013. The outstanding debt of the city government arising from 
its PUD, due to steady accrual of interest and charges, has ballooned to 
P7,675,579,299.64 in March 2024. This figure is equivalent to three and a half times 
the entire annual appropriations of the city government for FY 2024.
In line with the intent of House Bill No. 9977 approved by the House of 
Representative last March 19, 2024, this bill seeks to condone the ballooning debt 
incurred by the City Government of Olongapo following the privatization of its Public 
Utilities Department. Through this intervention, the city government can channel its 
resources in the delivery of basic services, the achievement of its development goals, 
and the betterment of Filipinos living in the City of Olongapo.
In the light of the foregoing, I humbly present this bill for Congress' immediate 
consideration and approval.
FRANCIS G.
UDERO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
cW V
of Uif #'i>trrtar2*
24 MAY-6 PI :21
SENATE
s. no.2656
Introduced by Senator FRANCIS G. ESCUDERO
AN ACT
PROVIDING FOR THE CONDONATION OF UNPAID OBLIGATIONS ON THE 
POWER CONSUMPTION OF THE PUBLIC UTILITIES DEPARTMENT - 
OLONGAPO CITY TO THE POWER SECTOR ASSETS AND LIABILITIES 
MANAGEMENT CORPORATION
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Upon the effectivity of this Act, all outstanding financial obligations
2 
of the Public Utilities Department (PUD) - Olongapo City to the Power Sector Assets
3 
and Liabilities Management (PSALM) Corporation, including value-added taxes,
4 
generation rate adjustment mechanism, incrementai currency exchange rate
5 
adjustment, deferred accounting adjustments charges, automatic cost recovery
6 
mechanism, fuel, purchased power cost adjustment, foreign exchange adjustment and
7 
true-up adjustment charges representing the power consumption of PUD - Olongapo
8 
City, are hereby condoned.
9 
Sec. 2. Within sixty (60) days from the effectivity of this Act, the Department
10 
of Finance (DOF) shall, in coordination with PSALM, promulgate the necessary rules
11 
and regulations for the effective implementation of this Act. Taking into account the
12 
legislative intent to authorize a condonation of unpaid obligations, the said rules and
13 
regulations shall not entail additional requirements that shall negate the purpose of
14 
this Act: Provided, That failure of the DOF to promulgate the said rules and regulations
15 
shall not prevent the implementation of this Act sixty (60) days after its effectivity:
16 
Provided, further. That the DOF shall require the PSALM to submit bi-annualiy a list of


1 
delinquent accounts and demands made for payment from electric cooperatives and
2 
other clients.
3 
Sec. 3. If any provision of this Act is declared unconstitutional or invalid, the
4 
other parts or provisions hereof which are not affected thereby shall continue to be in
5 
full force and effect.
6 
Sec. 4. All laws, decrees, executive orders and issuances, rules and regulations,
7 
or parts thereof inconsistent with the provisions of this Act are hereby repealed or
8 
modified accordingly.
9 
Sec. 5. This Act shall take effect after fifteen (15) days following its publication 
10 in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,