Table 5. Interest Rates Used for Comparisons with Federal Utility Borrowing Costs, 1990 and 1998
| Rate | 1990 | 1998 |
| 30-Year Treasury | 8.61 | 5.58 |
| Investor-Owned Aaa | 9.45 | 6.77 |
| Investor-Owned Aa | 9.66 | 6.91 |
| Investor-Owned A | 9.87 | 7.04 |
| Investor-Owned Baa | 10.06 | 7.26 |
| Municipal Aaa | 6.97 | 4.92 |
| Municipal Aa | 7.07 | 4.99 |
| Municipal A | 7.16 | 5.08 |
| Municipal Baa | 7.30 | 5.15 |
| Note: Municipal bond yields are significantly lower than similar maturity IOU yields because of the Federal income tax
exemption for municipal bonds. Municipal bonds also usually have an exemption from State and local taxes in the jurisdictions
in which they are issued. BPA's cost of funds on its appropriated and long-term debt were estimated at 78 basis points above
the Treasury's own cost of funds in 1998, as explained later in this chapter. Source: Moody's Investor Service, Utility Manual 1998, and Federal Reserve, Form H-15. | ||
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File last modified: July 10, 2000
URL: http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/tbl_5.html
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