The Government repealed Decree 1560/73 and ordered that Mendoza receive 100% of the hydroelectric royalties from Los Nihuiles, putting an end to a distribution that had been in place since the Lanusse dictatorship
Article 1°: Rejects the reconsideration appeal from Mendoza against Decree 1560/73 for not presenting nullity defects according to Law 19.549.
Article 2°: Exhausts the administrative route (Article 23, subsection c of Law 19.549), opening a period of 180 judicial business days for actions, without halting the case File No. CSJ 140/2022 ("Mendoza, Province of v. National State (P.E.N.) regarding nullity of administrative act - damages") before the Supreme Court.
In a supreme act of justice, the Executive led by President Javier Milei put an end to 53 years of injustice. Through Decree 982/2026, signed on September 10, 2026, published in the Official Bulletin, the Government repealed Decree 1560/73 issued on February 26, 1973 during the dictatorship of Alejandro A. Lanusse. The measure establishes that Mendoza will receive 100% of the hydroelectric royalties from the Los Nihuiles Hydroelectric System on the Atuel River in San Rafael, aligning the distribution with the actual location of the dams, plants, and the hydroelectric source, while La Pampa ceases to participate.
The original regulatory framework of Article 43 of Law 15.336 set a hydroelectric royalty of 5% for the provinces owning the sources. In 1973, the state company Agua y Energía Eléctrica applied an arbitrary distribution of 50% and 50% (2.5% for each jurisdiction) between Mendoza and La Pampa. With the reform of Law 23.164 (Article 1°), the rate was raised to 12%, resulting in a 6% for each province.
The president, Javier Milei
The Decree 982/2026 (processed under File No. EX-2018-07099109-APN-DDYME#MEM) eliminates this exception based on Laws Nos. 12.650, 15.336, 19.549, 23.164, and 24.065. The 12% hydroelectric royalties applied to energy sold at the Spot Market price will correspond entirely to Mendoza.
The Executive's determination has an impregnable technical and legal basis:
Autonomy of the Resource: Article 5° and Article 15, subsection 9 of Law 15.336 establish that the energy from water falls is a legally distinct entity from water or the riverbed.
Doctrine of the Supreme Court of Justice of the Nation:
In Rulings: 323:1825 (year 2000), the Court defined electrical norms as “…rules of extremely high complexity influenced by many factors inherent to the regime…”.
In Rulings: 326:3521 (year 2003), it ruled that “it is evident that a criterion of participation among the provincial states where the ‘hydroelectric sources’ are located is thus established”, reaffirming Decree 141/95 (January 26, 1995) by stating that “it is based on a reasonable regulatory interpretation of the federal regime in the matter since it does not alter its purposes and the meaning assigned to it, so the plaintiff's challenge and that of the co-litigants supporting its position lacks foundation”. It also differentiated the payment of royalties regarding the consumptive use of the Atuel River (declared interjurisdictional river on December 3, 1987 in Rulings: 310:2478).
The Los Nihuiles Hydroelectric Complex
In Rulings: 332:212 (year 2009), it validated Resolution 158/95 (September 27, 1995) stating that “it respects the parameters imposed by decree 141/95 and the law 15.336 on which it is based, and clarifies the equitable and rational guidelines for the distribution of royalties in binational uses such as that of Salto Grande, unless agreed otherwise, so the plaintiff's challenge lacks foundation”.
Technical Pronouncements: In Opinions 185:030 and Opinions 294:059, the National Treasury Attorney's Office determined that Law 12.650 authorized the works in El Nihuil (Mendoza territory), with the hydroelectric use located 100% in Mendoza, recommending the replacement of the 1973 regime.
The commitment of the Fifth Clause of the Interjurisdictional Agreement of 1992 (ratified by the Court) was expressly subject to future regulations. Upon the expiration of the concession on May 31, 1994 (Article 31.1) established with Hidroeléctrica Los Nihuiles S.A. under Decree 1398/92 (August 6, 1992), the Government issued Decree 667/2026 (July 27, 2026) calling for a public national and international tender for the sale of shares of HIDROELECTRICIDAD MENDOCINA S.A. according to Articles 14, 15, and 21 bis of Law 15.336. This aligns with Decree 718/2024 (August 9, 2024) promoted for the complexes Cerros Colorados, El Chocón-Arroyito, Alicurá, and Piedra del Águila, ensuring the stability of the SADI.
Sergio Ziliotto
The Decree 982/2026, issued under Article 99, subsection 1 of the National Constitution, establishes:
Article 4°: Assigns 100% of the hydroelectric royalties to Mendoza.
Article 5° and Article 6°: Establish immediate validity and its submission to the National Directorate of the Official Register.
In response to the reparative ruling, the governor of La Pampa Sergio Ziliotto attempted to discredit the measure:
"The Atuel River not only Mendoza robbed us of a river. Now together with Milei's Government, which repeals Decree 1560/73, they take away its royalties. We will not remain still! The Atuel River is also Pampean!!!"
Luis Petri on X
The governor of Mendoza, Alfredo Cornejo, celebrated the historic restoration of the right:
“It is a historic achievement for Mendoza, the result of a firm and sustained defense of our resources. More royalties mean more investment, more infrastructure, and more development for all Mendocinians”
For his part, deputy Luis Petri crushed the Pampean stance, reaffirming the indisputable triumph of the law and the ideas of freedom:
"That is not theft, it is JUSTICE. Governor Sergio Ziliotto: stealing is collecting royalties for 53 years for energy that is generated entirely in Mendoza, sheltered by a decree from Lanusse's dictatorship. You defend a de facto decree. We defend the law, the Supreme Court, and federalism. The reservoir, the dams, and the plants of Los Nihuiles are in San Rafael. The royalty is paid for the hydroelectric source, for the water fall, the Court said in 2003 and the Attorney's Office in 2015. President @JMilei ended that injustice and dispossession."
