A Supreme Court decision finds the Energy Regulatory Commission’s (ERC) use of the Optimized Depreciated Replacement Cost (ODRC) in valuing utility assets "fell short of the statutory standard that reasonable rates should provide electricity to the consuming public in the 'least cost manner'"
The Supreme Court voided ERC's use of the ODRC methodology, ruling that it fails to meet the “least cost manner” requirement for rate-setting as mandated by law and is “almost irrational.”
Solicitor General Menardo Guevarra urged the tribunal to reject the petition filed by individuals, including senatorial candidate and former Executive Secretary Victor Rodriguez, citing "fatal procedural defects and utter lack of merit."