20081124_2415.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER RED FO RD
CO MMISSI 0 NER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:NOVEMBER 20, 2008
RE:ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2009. CASE NO. GNR-08-
The interest to be paid on customer deposits for the 2009 calendar year is determined by
the twelve-month average interest rate from November 1 , 2007 through October 31 , 2008. This
average rate is 2.25% as shown on the attached worksheet. Rounded to the nearest whole
percent the rate will be 2%, a 3% decrease from the prior year. The following chart shows the
interest rates for the various years and the Order numbers approving those rates.
Calendar Year Interest Rate Order No.
1988 21622 27167
1989 22230
1990 22836
1991 23425
1992 23971
1993 24578
1994 25242
1995 25788
1996 26233
1997 26681
1998 27248
1999 27828
2000 28234
2001 28575
2002 28896
2003 29158
2004 29386
2005 29653
2006 29932
2007 30200
2008 30469
DECISION MEMORANDUM NOVEMBER 20, 2008
COMMISSION DECISION
Should the interest rate to be paid on deposits collected from customers for the calendar
year 2009 be set at 2% a decrease from 5%?
-0~n w, ~t,CJx
Terri Carlock
ultcarloc/ AnnOetIntRctes 11-21-2008.
DECISION MEMORANDUM NOVEMBER 20, 2008
APPENDIX
ONE-YEAR TREASURY RATES
Week Ended Rate %Week Ended Rate %
11/2/2007 5/2/2008
11/9/2007 5/9/2008 1.91
11/16/2007 5/16/2008
11/23/2007 5/23/2008
11/30/2007 5/30/2008
12/7/2007 6/6/2008
12/14/2007 6/13/2008
12/21/2007 6/20/2008
12/28/2007 6/27/2008
1/4/2008 7/3/2008
1/11/2008 7/11/2008
1/18/2008 7/18/2008
1/25/2008 7/25/2008
2/1/2008 8/1/2008
2/8/2008 8/8/2008
2/15/2008 8/15/2008
2/22/2008 8/22/2008
2/29/2008 8/29/2008
3/7/2008 1.55 9/5/2008
3/14/2008 9/12/2008
3/20/2008 1.33 9/19/2008
3/28/2008 1.56 9/26/2008 1.81
4/4/2008 10/3/2008
4/11/2008 1.52 10/10/2008
4/18/2008 1.85 10/17/2008
4/25/2008 10/24/2008 1.60
10/31/2008
AVERAGE
Source: Federal Reserve Treasury Rates
One-Year Constant Maturities