Proposed Legislation
- 2008
- 2007
-
- PUC 1, An Act to Efficiently Use Funds of the Public Utilities Commission [Word]
- PUC 2, An Act to Transfer the Administration of the Renewable Resource Fund from the State Planning Office to the PUC [Word]
- PUC 3, An Act Regarding Long-term Contracting Authority [Word]
- PUC 4, An Act to Limit the Eminent Domain Authority of a Transmission and Distribution Utility [Word]
- PUC 5, An Act to Encourage the Use of Solar Energy [Word]
Late Payment Charge Interest Rate and Interest Rate on Customer Deposits for 2008
November 6, 2008
To All Maine Utilities
Annual Change of Late Payment Charge Interest Rate and Interest Rate on Customer Deposits Issued Pursuant to Chapter 870 of the Commission’s Rules.
The Prime Interest Rate reported in the Wall Street Journal dated November 3, 2008, was 4.00%. Pursuant to Chapter 870, notice is hereby given to all utilities that the maximum late charge for 2009 will be 12.00% based on the formula “Wall Street Journal Prime Rate plus 8.00% (rounded to the nearest 0.25% and subject to a maximum of 18.00%).” For utilities choosing to compound, the equivalent monthly maximum late payment charge for 2009 will be 0.949%.
The one-year certificate of deposit interest rate reported on Bankrate.com for November 3, 2008 was 3.56%. We have used Bankrate.com because the Wall Street Journal no longer publishes a one‑year certificate of deposit rate in its “Money Rates” section. However, the Wall Street Journal cites Bankrate.com as the source of its “Consumer Rates and Returns to Investors” shown daily on page C4. Pursuant to Chapter 870, notice is hereby given to all utilities that the rate payable on customer deposits for 2009 will be 3.60%, based on the formula “Wall Street Journal one‑year certificate of deposit rate rounded to the nearest 0.10%.”
Please note that Chapter 870 does not differentiate between investor-owned and non investor-owned utilities and therefore non investor-owned utilities are also required to pay the deposit interest rate specified herein.
The effective date for the above-mentioned interest rates for late charges and on customer deposits is January 1, 2009.
Sincerely,
Marjorie R. McLaughlin
Director of Finance
MRM/llp