20101112final_order_no_32109.pdf

Office of the Secretary
Service Date
November 12 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INTEREST RATE
ON DEPOSITS COLLECTED FROM
CUSTOMERS OF GAS, ELECTRIC,
TELEPHONE AND WATER PUBLIC
UTILITIES FOR THE CALENDAR YEAR 2011
CASE NO. GNR-10-
ORDER NO. 32109
The Commission s Customer Relations Rules for Gas, Electric and Water Utilities
(IDAPA 31.21.01.106) and the Customer Relations Rules for Telephone Companies (IDAPA
31.41.01.104) both provide for the payment of interest on customer deposits. Pursuant to Rule
106.02 of these rule sets, the interest rate on deposits is determined by calculating the 12-month
average interest rate for one-year treasury bills for the previous November 1 through October 31.
The resulting rate is then rounded to the nearest whole percent. The calculated rate will be in
effect for the following calendar year.
Using the weekly rates as posted by the U.S. Department of Treasury the average
interest rate for one-year treasury bills for the 12-month period from November 1 , 2009 through
October 31 2010, is .33%. We accept Staffs position that zero is not a whole interest rate, low
current interest rates represent unusual circumstances, and paying some level of interest on
deposits is fair. Accordingly, public utilities shall pay 1.0% annual interest on all customer
deposits held pursuant to IDAPA Rules 31.21.01.106 and 31.41.01.104 for calendar year 2011.
The 2011 interest rate is identical to the 2010 interest rate.
ORDER
IT IS HEREBY ORDERED that 1.0% annual interest shall be paid during calendar
year 2011 on customer deposits held by gas, electric, water, and telephone companies subject to
this Commission s jurisdiction under IDAPA 31.21.01.106 and 31.41.01.104. The Commission
Secretary shall serve this Order upon all public utilities operating within Idaho.
IT IS FURTHER ORDERED that the rate on deferred accounts using the customer
deposit rate during calendar year 2011 shall be 1.0%.
ORDER NO. 32109
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 99 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this IO-tA
day of November 2010.
(2ff. ~ L
. KEMPT , P IDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
bls/O:GNR-IO-Ol dh
ORDER NO. 32109