20201204Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:DECEMBER 3,2020
RE:ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 202];CASE NO.GNR-U-20-04.
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-monthaverage interest rate for
one-year Treasury Bills for the previous November 1 through October 31,round that rate to the
nearest whole percent...".(IDAPA 31.21.01.106and IDAPA 31.41.01.104).This average
interest rate is 0.62%as shown on Attachment A.Staff recommends the rate be rounded to the
nearest whole percent and set at 1%for the calendar year 2021.
COMMISSION DECISION
Should the interest rate paid on deposits collected from customers for the calendar year
2021 be set at 1%?
Terri Carlock
ulicarloc'AnnDetinlRatesl2-03.2020 TC
ATTACHMENT
ONE-YEARTREASURY RATES
VVeekEnded Rate%VVeekEnded Rate%
11/1/2019 13i3 5/1/2020 0.17
11/8/2019 1.58 5/8/2020 0.15
11/15/2019 1JS4 5/15/2020 0.:L5
11/22/2019 1JS6 5/22/2020 0.:07
11/29/2019 1.60 5/29/2020 OJL7
12/6/2019 1.57 6/5/2020 0.18
12/13/2019 1.54 6/12/2020 0.18
12/20/2019 1.52 6/19/2020 01.18
12/27/2019 1.51 6/26/2020 01.17
1/3/2020 1.55 7/2/2020 0.16
1/10/2020 1.53 7/10/2020 0.15
1/17/2020 1.56 7/17/2020 0.14
1/24/2020 1.55 7/24/2020 0.16
1/31/2020 1.45 7/31/2020 0.11
2/7/2020 1.49 8/7/2020 0.14
2/14/2020 1.49 8/14/2020 0.13
2/21/2020 1.43 8/21/2020 01.13
2/28/2020 0.97 8/28/2020 0.12
3/6/2020 0.39 9/4/2020 0.13
3/13/2020 0.38 9/11/2020 0.:Li
3/20/2020 01.15 9/18/2020 0.:LB
3/27/2020 0.11 9/25/2020 0.12
4/3/2020 0.15 10/2/2020 0.12
4/9/2020 0.25 10/9/2020 0.15
4/17/2020 0.16 10/16/2020 0.12
4/24/2020 0.18 10/23/2020 01.12
10/30/2020 0.13
AVERAGE 0.62
Source:Federal ReserveTreasury Rates
One-Year Constant Maturities
ATTACHhnENTA