20061214_1757.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:DECEMBER 7 2006
RE:ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2007. CASE NO. GNR-06-
The interest to be paid on customer deposits for the 2007 calendar year is determined by
the twelve-month average interest rate from November 2005 through October 31 2006. This
average rate is 4.82% as shown on the attached worksheet. Rounded to the nearest whole
percent the rate will be 5%, a 2% increase from the prior year. The following chart shows the
interest rates for the various years and the order numbers approving those rates.
Calendar Year
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Interest Rate Order No.
21622 27167
22230
22836
23425
23971
24578
25242
25788
26233
26681
27248
27828
28234
28575
28896
29158
29386
29653
29932
DECISION MEMORANDUM DECEMBER 7 2006
COMMISSION DECISION
Should the interest rate to be paid on deposits collected from customers for the calendar
year 2007 be set at 5%?
.vvcl WI'('
Terri Carlock
TC:word:u/tcarlocl AnnDetIntRates 12-7 -2006. TC
DECISION MEMORANDUM DECEMBER 7 2006
APPENDIX
ONE-YEAR TREASURY RATES
Week Ended Rate %Week Ended Rate %
11/4/2005 5/5/2006
11/11/2005 5/12/2006
11/18/2005 5/19/2006
11/25/2005 5/26/2006
12/2/2005 6/2/2006
12/9/2005 6/9/2006
12/16/2005 6/16/2006
12/23/2005 6/23/2006
12/30/2005 6/30/2006
1/6/2006 7/7/2006
1/13/2006 4.41 7/14/2006
1/20/2006 4.43 7/21/2006
1/27/2006 7/28/2006
2/3/2006 8/4/2006
2/10/2006 8/11/2006
2/17/2006 8/18/2006
2/24/2006 8/25/2006
3/3/2006 9/1/2006
3/10/2006 9/8/2006
3/17/2006 9/15/2006
3/24/2006 9/22/2006
3/31/2006 9/29/2006
4/7/2006 10/6/2006
4/14/2006 10/13/2006
4/21/2006 10/20/2006
4/28/2006 10/27/2006
AVERAGE
Source: Federal Reserve Treasury Rates
One-Year Constant Maturities