20241106Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
LEGAL
FROM: JOSEPH TERRY
DAYN HARDIE, DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 6, 2024
RE: ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2025; CASE NO. GNR-U-24-01.
Every year the Commission sets the interest rate to be paid on customer deposits for the
next calendar year. Rule 106.02 of the of the Customer Relations Rules for Gas, Electric and
Water Utilities provides: "the Commission will determine the twelve-month average interest rate
for one-year Treasury Bills for the previous November 1 through October 31, round that rate to
the nearest whole percent...". IDAPA 31.21.01.106.02. The average interest rate for one-year
Treasury Bills for November 1, 2023, through October 31, 2024 is 4.83% as shown on
Attachment A.
STAFF RECOMMENDATION
In accordance with the requirements of Rule 106.02 of the Customer Relations Rules,
Staff recommends the customer deposit rate be set at 5% for the calendar year 2025, the same as
it was in 2024.
COMMISSION DECISION
Should the interest rate paid on deposits collected from customers for the calendar year
2025 be set at 5%?
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I:\Utility\UDMEMOS\GNR-U-24-01 jt.docx
DECISION MEMORANDUM 1 NOVEMBER 6, 2024

ATTACHMENT
ONE-YEAR TREASURY RATES
Week Ended Rate% Week Ended Rate
10/27/2023 5.39 4/26/2024 5.21
11/3/2023 5.29 5/3/2024 5.12
11/10/2023 5.38 5/10/2024 5.17
11/17/2023 5.24 5/17/2024 5.14
11/24/2023 5.27 5/24/2024 5.21
12/1/2023 5.05 5/31/2024 5.18
12/8/2023 5.13 6/7/2024 5.17
12/15/2023 4.95 6/14/2024 5.07
12/22/2023 4.82 6/21/2024 5.10
12/29/2023 4.79 6/28/2024 5.09
1/5/2024 4.84 7/5/2024 4.98
1/12/2024 4.65 7/12/2024 4.87
1/19/2024 4.84 7/19/2024 4.87
1/26/2024 4.78 7/26/2024 4.79
2/2/2024 4.81 8/2/2024 4.33
2/9/2024 4.86 8/9/2024 4.50
2/16/2024 4.98 8/16/2024 4.49
2/23/2024 5.00 8/23/2024 4.36
3/1/2024 4.94 8/30/2024 4.38
3/8/2024 4.92 9/6/2024 4.10
3/15/2024 5.05 9/13/2024 4.00
3/22/2024 4.98 9/20/2024 3.92
3/28/2024 5.03 9/27/2024 3.90
4/5/2024 5.05 10/4/2024 4.20
4/12/2024 5.13 10/11/2024 4.18
4/19/2024 5.17 10/18/2024 4.19
10/25/2024 4.29
AVERAGE 4.83
Source: Federal Reserve Treasury Rates
One-Year Constant Maturities
https://www.treasury.gov/resou rce-center/data-chart-center/i nterest-
rates/Pages/TextView.aspx?data=yieldYear&year=2024
ATTACHMENT A
DECISION MEMORANDUM 2 NOVEMBER 6, 2024