Federal Judge Suspends 100% Royalty Payment from Los Nihuiles to Mendoza
Federal judge Raúl Baric from the Federal Court of Santa Rosa issued a precautionary measure suspending the validity of Decree 982/2026, through which the National Government had resolved to grant Mendoza one hundred percent of the royalties from power generation at the Los Nihuiles hydroelectric complex. The ruling restores La Pampa's right to receive 50% of those revenues, the amount the province has been collecting since 1973.
The precautionary measure was ordered following a submission by the Government of La Pampa, headed by governor Sergio Ziliotto, who had publicly opposed the national decree celebrated by his Mendoza counterpart, Alfredo Cornejo. The suspension remains in effect until the merits of the underlying dispute are resolved.
Grounds for the Judicial Decision
Baric conducted an in-depth analysis of the background of the royalty regime protecting La Pampa. The magistrate stressed that the province had established prima facie the existence of a right established by Decree 1560/1973, which granted La Pampa the right to receive half of the royalty that the National State paid to Mendoza for the location of the complex on the Atuel River, in addition to a subsequent inter-jurisdictional agreement, its legislative ratification, and its judicial homologation.
In his ruling, the judge noted that the beneficial regime for La Pampa "has been recognized by the Nation, incorporated into an inter-jurisdictional agreement, and judicially homologated" for several decades. In contrast, he warned that the national decree "produces an immediate and substantial modification of the existing regime that would be colliding with provincial autonomy."
Economic Impact and Procedural Risks
Baric emphasized the economic damage La Pampa would suffer if the decree remained in effect. The province "would cease to receive the 50% of royalties it had been collecting, which would imply a significant monthly economic loss" without specifying amounts.
The magistrate also weighed a decisive procedural argument: the upcoming concession process for the Los Nihuiles complex, called through Decree 667/2026. If Decree 982 remains in effect, the tender documents will establish full royalty payment to Mendoza, "making it then nearly impossible to repair the incorporation of royalty payment to our province," Baric stated in his ruling. He therefore found it established "with sufficient credibility the danger in delay" invoked by La Pampa.
Instructions to the National Executive Power
The ruling orders the "immediate suspension" of articles 3° and 4° of Decree 982/2026 and requires the National Executive Power to submit a report provided for by Law 26.854 within three days of service of the sentence.