MERALCO Spokesperson Joe Zaldarriaga said the arguments of Cong. Dan Fernandez are not legal and emphasized that this should be addressed in the appropriate forum.

Zaldarriaga said during seveal Congress hearings, discussions highlighted that the weighted average cost of capital (WACC) is an industry WACC that applies to all private DUs in the same category and is not company-specific WACC.

Resource persons and lawmakers alike were aware that setting of the WACC is a regulatory function and falls under the rules on Performance-Based Regulation (PBR), whether for NGCP or for a Private Distribution Utility (DU).

It is a fact that Meralco does not have a determined WACC since July 2015 because there has yet to be a completed regulatory rate reset.

“I would like to reiterate that as a highly regulated entity, Meralco strictly adhered to the rules governing its operations and fanchise and he rate we implement always have prior approval from the regulator,” Zaldarriaga said.

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