INTERPRETIVE OR POLICY STATEMENT
Subject: Resolution of an ambiguity in the application of a commission rule requiring telecommunications companies to pay interest on customer deposits, and to interpret the proper interest rate to be paid on customer deposits held by telecommunications companies during calendar year 2003.
Effective Date: December 31, 2002.
Document Description: The requirement of WAC 480-120-056 that telecommunications companies pay interest on customer deposits that they hold based on the average rate for one-year treasury bills issued by the United States government during the previous twelve months is ambiguous because the federal government no longer issues one-year treasury bills. The commission finds that the twenty-six week treasury bill is the current federal debt instrument that is closest to the instrument cited in the current rule, and that it reflects interest rates in the current market. Using the twenty-six week rate as the substitute for the one-year rate, the commission concludes that the proper interest rate for calendar year 2003 is 1.77%.
To receive a copy of the interpretive statement, contact the Commission Secretary, Washington Utilities and Transportation Commission, P.O. Box 47250, Olympia, WA 98504-7250, phone (360) 664-1160, fax (360) 586-1150, e-mail email@example.com, or go to the commission's website http://wutc.wa.gov (click on Search, click on Docket Number, enter docket number "021658," click on "No Company Name," click on "Orders," and click on "12/31/2002").
Carole J. Washburn