20091214_2782.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KEMPTON
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
TERRI CARLOCK
DECEMBER 8, 2009
ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2010. CASE NO. GNR-09-01.
The interest to be paid on customer deposits for the 2010 calendar year is determined by
the twelve-month average interest rate from November 1 , 2008 through October 31 , 2009. This
average rate is 0.54% as shown on the attached worksheet. Rounded to the nearest whole
percent the rate will be 1 %, a 1 % decrease from the prior year. The following chart shows the
interest rates for the last twenty years and the Order numbers approving those rates.
Calendar Year
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Interest Rate Order No.
22836
23425
23971
24578
25242
25788
26233
26681
27248
27828
28234
28575
28896
29158
29386
29653
29932
30200
30469
30692
DECISION MEMORANDUM DECEMBER 8 , 2009
COMMISSION DECISION
Should the interest rate to be paid on deposits collected from customers for the calendar
year 2010 be set at 1 %, a decrease from 2%?
~U-Lc C~
Terri Carlock
u/tcarloc/ AnnDetIntRaes 12-2009.
DECISION MEMORANDUM DECEMBER 8, 2009
APPENDIX
ONE-YEAR TREASURY RATES
Week Ended Rate %Week Ended Rate %
11/7/2008 1.20 5/8/2009
11/14/2008 1.14 5/15/2009 0.50
11/21/2008 5/22/2009
11/28/2008 5/29/2009
12/5/2008 6/5/2009
12/12/2008 0.50 6/12/2009
12/19/2008 0.44 6/19/2009
12/26/2008 6/26/2009
1/2/2009 7/2/2009
1/9/2009 7/10/2009
1/16/2009 7/17/2009
1/23/2009 7/24/2009
1/30/2009 7/31/2009
2/6/2009 8/7/2009
2/13/2009 8/14/2009
2/20/2009 8/21/2009
2/27/2009 8/28/2009
3/6/2009 9/4/2009
3/13/2009 9/11/2009
3/20/2009 9/18/2009
3/27/2009 9/25/2009
4/3/2009 10/2/2009
4/9/2009 10/9/2009
4/17/2009 10/16/2009
4/24/2009 10/23/2009
5/1/2009 10/30/2009
AVERAGE 54 %
Source: Federal Reserve Treasury Rates
One-Year Constant Maturities