Mendoza to Recover 100% of Los Nihuiles Hydroelectric Royalties

After more than five decades of claims, Mendoza Province will no longer share with La Pampa the royalties generated by the hydroelectric complex located entirely within Mendoza territory. The decision recognizes the source criterion and represents the recovery of strategic resources for Mendoza.

Mendoza advanced in recovering 100% of the hydroelectric royalties generated by the Los Nihuiles System, ending a scheme in force since 1973 that distributed those resources equally between Mendoza and La Pampa.

Governor Alfredo Cornejo announced the decision and emphasized that it represents a claim sustained for more than 50 years in defense of provincial resources.

"Mendoza recovers what legitimately belongs to it, 100% of the hydroelectric royalties from Los Nihuiles," the governor stated on his official X account.

The conflict originates in National Decree 1560/1973, which established that royalties produced by hydroelectric generation should be distributed between Mendoza and La Pampa. Since then, both provinces received equivalent participation, despite the complex and the source of hydroelectric generation being located in Mendoza territory.

Mendoza's position was historically sustained by the so-called source criterion, according to which royalties should correspond to the jurisdiction where the facility generating energy is located. This criterion is applied in other hydroelectric complexes in the country and was endorsed in 2015 by an opinion from the Office of the Attorney General of the Nation, which recognized Mendoza's right to receive all of those resources.

A claim spanning more than half a century

The Province pursued various administrative and judicial actions over decades to reverse the regime established in 1973. Mendoza even brought the matter before the Supreme Court of Justice of the Nation with the objective of nullifying that distribution and recovering the resources it considers its own.

The conflict remained active this year. The Supreme Court had resolved to formally incorporate La Pampa into the case initiated by Mendoza against the National State over the distribution of Los Nihuiles royalties.

The recovery of all royalties acquires special relevance for San Rafael, where the hydroelectric complex is located on the Atuel River. Los Nihuiles constitutes one of Mendoza's most important energy systems and comprises various power plants and infrastructure linked to the generation and transmission of electrical energy.

Cornejo emphasized that the decision not only resolves a historical dispute between jurisdictions but also brings greater resources into the provincial treasury.

"More royalties mean more investment, more infrastructure, and more development for all Mendocinos," stated the Governor.

In this way, Mendoza consolidates a claim initiated more than five decades ago and recovers for the Province all resources from the hydroelectric generation of Los Nihuiles.