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Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL No. ________ 
Introduced by: 
REP. PRESLEY C. DE JESUS, PHILRECA Party-List 
REP. SERGIO C. DAGOOC, APEC Party-List 
REP. GODOFREDO N. GUYA, RECOBODA Party-List 
REP. ADRIANO N. EBCAS, Ako Pilipino Party-List 
EXPLANATORY NOTE 
Created in June 2001 with a corporate life of 25 years or until June 2026, Power 
Sector Assets and Liabilities Management (PSALM) Corporation’s principal mandate 
is to manage the orderly sale, disposition, and privatization of the National Power 
Corporation (NPC) generation assets, real estate and other disposable assets, and 
independent power producer (IPP) contracts with the objective of liquidating all of 
NPC’s financial obligations and stranded contract costs (SCC) in an optimal manner. 
With less than 5 years remaining in its corporate life, there is an urgent need to 
assess and further prepare how PSALM Corp. can successfully accomplish its 
mandate. Should PSALM’s life end in 2026, all of its remaining assets and outstanding 
debts and IPP contract costs will revert to and be assumed by the National 
Government (NG).  
But considering the economic setback caused by the global pandemic to the 
Government, turning over these financial obligations to be absorbed as public debt 
may not be a prudent action, especially if it can be prevented. Hence, an extension of 
10 more years for the corporate life of PSALM Corp. is proposed.  
It is expected that in the next 15 years, PSALM will be able to significantly – if 
not fully – settle its financial obligations, such that when it is time for the government 
to take over any of PSALM’s remaining assets and obligations, the government will 
October 11, 2021
8:13 am
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be able to do so without sacrificing any other priorities or obligations in the public 
sphere.  
The passage of this bill is earnestly sought. 
PRESLEY C. DE JESUS 
Representative 
PHILRECA Party-List 
SERGIO C. DAGOOC 
Representative 
APEC Party-List 
GODOFREDO N. GUYA 
Representative 
RECOBODA Party-List 
ADRIANO N. EBCAS 
Representative 
Ako Pilipino Party-List 


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Republic of the Philippines 
House of Representatives 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL No. ________ 
Introduced by: 
REP. PRESLEY C. DE JESUS, PHILRECA Party-List 
REP. SERGIO C. DAGOOC, APEC Party-List 
REP. GODOFREDO N. GUYA, RECOBODA Party-List 
REP. ADRIANO N. EBCAS, Ako Pilipino Party-List 
AN ACT 
EXTENDING THE CORPORATE LIFE OF AND STRENGTHENING THE 
POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT 
CORPORATION, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9136, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 50, Chapter VI of Republic Act No. 9136, otherwise known 
as the “Electric Power Industry Reform Act of 2001” or EPIRA, is hereby amended to 
read as follows: 
“SEC. 50. Purpose and Objective, Domicile and Term of 
Existence. - The principal purpose of the PSALM Corp. is to manage 
the orderly sale, disposition, and privatization of NPC generation 
assets, real estate, and other disposable assets, and IPP contracts 
with the objective of liquidating all NPC financial obligations and 
stranded contract costs in an optimal manner. The PSALM Corp. 
shall have its principal office and place of business within Metro 
Manila.  
The PSALM Corp. shall exist [for a period of twenty five (25) years from 
the effectivity of this Act] until JUNE 26, 2036 unless otherwise provided by 
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law, and all assets held by it, all MONIES and properties belonging to it, and 
all its liabilities outstanding upon the expiration of its term of existence shall 
revert to and be assumed by THE NPC.  
 
PROVIDED, FURTHER, THAT UPON THE EXPIRATION OF ITS 
CORPORATE EXISTENCE, ALL THE PSALM CORP. EMPLOYEES THAT 
WILL BE ADVERSELY AFFECTED BY THE EXPIRATION SHALL 
RECEIVE SEPARATION PAY AND OTHER BENEFITS IN ACCORDANCE 
WITH LAW.  
 
PROVIDED, HOWEVER, THAT UPON THE EXPIRATION, PSALM 
CORP. EMPLOYEES ASSIGNED TO THE ASSET MANAGEMENT AND 
OTHER DEPARTMENTS AND DIVISIONS THAT ARE DEEMED VITAL 
TO THE PRIVATIZATION OF ITS ASSETS, AS DETERMINED JOINTLY 
BY 
PSALM 
CORP. 
AND 
NPC, 
SHALL 
BE 
RETAINED 
AND 
CONSEQUENTLY 
TRANSFERRED 
UNDER 
NPC 
WITH 
COMMENSURATIVE SALARY GRADE."  
 
SEC. 2. To continue the provision of low power rates in its area, Agus and 
Pulangui hydroelectric power complexes in Lanao Del Sur and Bukidnon provinces, 
respectively, will be permanently exempted from privatization, effectively amending 
relevant provisions in the mandate of PSALM Corp. 
 
SEC. 3. Separability Clause. - If any part or section of this Act is declared 
unconstitutional, such declaration shall not affect in any manner other parts or 
sections of this Act.  
 
SEC. 4. Repealing Clause. - The provisions of Republic Act No, 9136, otherwise 
known as the "Electric Power Industry Reform Act of 2001" shall continue to have full 
force and effect, except insofar as they are inconsistent with this Act.  
 
SEC. 5. Effectivity Clause. - This Act shall take effect on the fifteenth day 
following its publication in at least two (2) national papers of general circulation and 
in the Official  Gazette. 
 
Approved,