Late Charges for Utility Services
B-186494
Jul 22, 1976
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Highlights
Payment by the Coast Guard of late charges for electrical service was questioned. Government agencies may pay interest on late payments pursuant to either statute or contract provision. The contract between the Coast Guard and the utility company provides for payment of rates approved by the state utility commission but states that bills shall be paid without penalty or interest; late payment charges are properly payable under the contract and are not excluded as penalty or interest.