20041206_1016.pdf

TO:
FROM:
DATE:
RE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
TERRI CARLOCK
DECEMBER 1 , 2004
ANNUAL DETERMINATION OF THE INTEREST RATES ON
DEPOSITS COLLECTED FROM CUSTOMERS FOR THE CALENDAR
YEAR 2005. CASE NO. GNR-04-
The interest to be paid on customer deposits for the 2005 calendar year is determined by
the twelve-month average interest rate from November 1 , 2003 through October 31 , 2004. This
average rate is 1.67% as shown on the attached worksheet. Rounded to the nearest whole
percent the rate will be 2%, a 1 % increase 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
Interest Rate Order No.
21622, 27167
22230
22836
23425
23971
24578
25242
25788
26233
26681
27248
27828
28234
28575
28896
29158
29386
DECISION MEMORANDUM DECEMBER 1 , 2004
COMMISSION DECISION
Should the interest rate to be paid on deposits collected from customers for the calendar
year 2005 be set at 2%?
CtuJo
T em Carlock
TC:word:u/tcarloc/ AnnDetIntRates 12-2004. TC
DECISION MEMORANDUM DECEMBER 1 2004
APPEND IX
ONE-YEAR TREASURY BILLS
Week Ended Rate %Week Ended Rate %
11/7/2003 1.35 5/7/2004 1.63
11/14/2003 1.36 5/14/2004 1.83
11/21/2003 1.30 5/21/2004 1.83
11/28/2003 5/28/2004 1.82
12/5/2003 1.37 6/4/2004 1.92
12/12/2003 1.31 6/11/2004
12/19/2003 1.27 6/18/2004
12/26/2003 1.28 6/25/2004
1/2/2004 1.29 7/2/2004 2.14
1/9/2004 1.29 7/9/2004
1/16/2004 1.19 7/16/2004
1/23/2004 1.20 7 /23 /2004 2.12
1/30/2004 1.25 7/30/2004 2.16
2/6/2004 1.28 8/6/2004
2/13/2004 1.24 8/13/2004 1.99
2/20/2004 1.23 8/20/2004 1.98
2/27/2004 1.22 8/27/2004
3/5/2004 1.23 9/3/2004
3/12/2004 1.16 9/10/2004
3/19/2004 1.18 9/17/2004
3/26/2004 1.17 9/24/2004 2.14
4/2/2004 1.23 10/1/2004
4/9/2004 1.32 10/8/2004
4/16/2004 1.41 10/15/2004
4/23/2004 1.50 10/22/2004
4/30/2004 1.55 10/29/2004
Average 1.67
Source: Wall Street Journal Key Interest Rates