Payment of Older Citizen Lifeline Utility Surcharge

An operating accountant, General Services Administration (GSA), requested a decision on whether GSA may pay a lifeline surcharge on electric utility billings in the State of Maine. GSA claimed that the surcharge represents a subsidy for providing electrical services to the elderly rather than services to the government. The lifeline surcharge does not constitute discrimination against federal agency users alone and, therefore, billings including the surcharge may be paid. The government is liable for late payment charges approved by the State Public Utilities Commission which become part of the utility rates payable under contract.