20171117Decision Memo.pdf

RE:
DECISION MEMORANDI'M
TO:COMMISSIONER I(IEL LAIYDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
NOVEMBER 15,2017DATE:
ANT.IUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED ['ROM CUSTOMERS F'OR THE CALENI}AR
YEAR 2OIE. CASE NO. GNR-U.I7.OI.
Every year the Commission sets the interest rate to be paid on customer deposits for the
next calendar year. Rule 106 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 thc prcvious November I through October 31, round that rate to thc
nearcst whole ocrcent...". (IDAPA 31.21.01.106 and IDAPA 31.41.01.104). This average
interest rate is l.06% as shovm on Attachment A. Staffrecommends the rate be rounded to the
nearest whole percent and set at l%o, as is cunently the 2017 rate.
The chart on Anachment B shows the interest rates since 1990 and the Order numbers
approving those rates.
COMMISSION DECISION
Should the interest rate paid on deposits collected from customers for the calendar year
2018 be set at lolo?
TeniCarlock
u.,tcorlociAnnDctlntRucr I l -l 5-20 I 7 TC
a
Week Ended
APPENDIX
ONE.YEAR TREASURY RATES
Rate %Week Ended Rate %
Ltl41?:016
t,.ltol2ot:6
trltsl2ot6
tttzsl2ot6
LLl212OL6
,2lelza,s
tzlt6l20t6
t2l23l2oL6
tzltol2aL6
u612oL7
1lL3l2Ot7
tl20l2o!7
u27l2afl
2lrl2Ot7
2lfil2AL7
2lt7l2OL7
zl24l2Ot7
3ltl20t7
3lLOlzOt7
3lt7l20t7
3124120fi
sl3,.lz017
4t7l20fi
4lttl2ot7
4l2tl2OL7
4l28l2OL7
slslzafi
slLalZaLt
slLel2ol7
5l26l2OL7
6lZlAOLT
6lel2a,,7
6lrclaan
6l23l2Ot7
6ltolzo,r
717l2AL7
uMlzafl
il2uzafl
7l28l20t7
814lzafl
8lLua0t7
8lL8{2AL7
8l2sl20t7
elLlzoLT
el8l2ot7
eh5l2Ot7
el22l2AL7
elzel2afi
fil6l2ot7
LO|,3lzafi
tol2alzo,-T
tol27ha]7
0.62
o.72
o.77
0.81
0.80
0.85
0.91
0.87
0.85
0.85
0.82
0.82
0.82
0.82
0.81
0.82
0.80
0.98
1.03
1.00
1.00
1.03
1.08
1.03
0.99
t.o7
1.10
1.11
1.10
1.17
1.16
1.20
1.21
L.7L
L.24
L.22
t.22
1.22
!.22
1.23
1.21
L.24
1.23
1,24
L.22
1.30
1.30
1.31
1.35
1.39
1.43
L,42
AVERAGE
Source: Federal Reserue Treasury Rates
0ne-Year Constant Matu rities
1.06
Attachment A
Calcndar Year
Interest Rates on Deposits
Interest Rate
9%
8%
6a/o
4%
3%
5%
6%
6%
6%
5o/o
5o/o
6%
4o/o
2o/o
la/o
2%
3o/o
5o/o
5%
7o/o
t%
t%
t%
lo/o
t%
l%
t%
t%
Order No.
r990
r99l
t992
1993
r994
1995
r996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2047
2008
2009
2010
201 I
2012
20t3
20t4
2015
2016
20t7
22836
2342s
23971
24578
2s242
25788
26233
2668t
27248
27828
28234
28575
28895
29 158
29386
29553
29932
30200
30469
30692
3096s
32109
32403
32684
32922
33187
33426
33664
ATTACHMEM B