20071123Decision memo.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
CO MMISSI 0 NER RED FO RD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
TERRI CARLOCK
NOVEMBER 21 , 2007
ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2008. CASE NO. GNR-07-
The interest to be paid on customer deposits for the 2008 calendar year is determined by
the twelve-month average interest rate from November 1 2006 through October 31 , 2007. This
average rate is 4.79% as shown on the attached worksheet. Rounded to the nearest whole
percent the rate will be 5%, with no change 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
2007
Interest Rate Order No.
21622 27167
22230
22836
23425
23971
24578
25242
25788
26233
26681
27248
27828
28234
28575
28896
29158
29386
29653
29932
30200
DECISION MEMORANDUM NOVEMBER 21 , 2007
APPENDIX
ONE- YEAR TREASURY RATES
Week Ended Rate %Week Ended Rate %
11/3/2006 5/4/2007
11/10/2006 5/11/2007
11/17/2006 5/18/2007
11/24/2006 5/25/2007
12/1/2006 6/1/2007
12/8/2006 6/8/2007
12/15/2006 6/15/2007
12/22/2006 6/22/2007
12/29/2006 6/29/2007
1/5/2007 7/6/2007
1/12/2007 7/13/2007
1/19/2007 7/20/2007
1/26/2007 7/27/2007
2/2/2007 8/3/2007
2/9/2007 8/10/2007
2/16/2007 8/17/2007
2/23/2007 8/24/2007
3/2/2007 8/31/2007
3/9/2007 9/7/2007
3/16/2007 9/14/2007
3/23/2007 9/21/2007
3/30/2007 9/28/2007
4/6/2007 10/5/2007
4/13/2007 10/12/2007
4/20/2007 10/19/2007
4/27/2007 10/26/2007
AVERAGE
Source: Federal Reserve Treasury Rates
One- Year Constant Maturities
CO MMISSI 0 N D ECISI 0 N
Should the interest rate to be paid on deposits collected from customers for the calendar
year 2008 remain at 5%?
~-D~ Gt~cR
Terri Carlock
u/tcarloc/AnnDetIntRaesll-21-2007.TC
DECISION MEMORANDUM NOVEMBER 21 2007