Metamagic Rod Levels and Spells

[Haskalah]

Hi everyone, the group I'm working with has ruled that the following FAQ means that Spell Slot Level applies when determining if a Metamagic Rod will work:

http://paizo.com/paizo/faq/v5748nruor1fm#v5748eaic9r9w

Specifically, this:

In general, use the (normal, lower) spell level or the (higher) spell slot level, whichever is more of a disadvantage for the caster. The advantages of the metamagic feat are spelled out in the Benefits section of the feat, and the increased spell slot level is a disadvantage.

Now, the argument is that this applies negatively to Metamagic Rods and means that if you, for example, Empowered a Fireball it would be a 5th level spell and thus unaffected by a Lesser Metamagic Rod.

I argue that Rods point out spell levels and Metamagic Feats specifically do not increase spell level.

Which would be correct, and is there an FAQ or other official response on the matter, because it'd be a group decision one way or another.

[Jeff Merola]

That FAQ is the one you need. It says that a metamagic feat makes the spell count as whatever level is worse for the caster. A Lesser Rod cannot be used on an average caster's Empowered Fireball.