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![handle is hein.gao/gaobadhjq0001 and id is 1 raw text is:
X THE COMPTROLLER GENERAL
07=CISID3N * O-F THE UNITED STATES
WASHINGTON, D.C. 20548
FILE 13-194905 DATE: C
MATTER OFSouth Carolina Electric and Gas Company ate
Payment Charges]
DIGEST:Contract provision providing Air Force will not be
liable for payment of penalty or interest charges
to utility company does not relieve the Air Force
of obligation to pay late payment charges when those
charges are approved by State commission as part of
utility's tariff to recoup losses attributable to late
payments and Air Force has agreed to pay approved
tariff.
The Accounting and Finance Office of the Charleston Air Force
Base, South Carolina, (his reference: ACF (Mr. Johnk, 583-3387)),
has requested our opinion on the propriety of paying arrears and late
payment charges on two contracts for utilities services provided to
the United States Air Force, Charleston Air Force Base, by the
South Carolina Electric and Gas Company (SCE&G).
SCE&G has assessed these charges on the Air Force accounts
since February 1971 but the Air Force has refused to pay them.
The SCE&G maintains that the late payment charges are part of the
General Terms and Conditions of Service which has been approved
by the Public Service Commission of South Carolina (Commission)
and are a part of the company's tariff.
The HQ MAC/Office of the Staff Advocate (HQ MAC/SJA) and
SCE&G base their respective contentions on different provisions of
the contracts. HQ MAC/SJA relie-s primarily on paragraph 4(c)
which states in pertinent part that [aill bills for service shall be
paid without penalty or interest... . SCE&G relies primarily on
paragraph 2 which states in pertinent part that the Government will
pay for service at the authorized tariff rate and that [s]ervice
furnished under this contract shall be subject to regulation in the
manner-and to the extent prescribed by law or by any federal,
-state or local regulatory commission having jurisdiction. By
an order dated July 1, 1970, the Commission authorized SCE&G to
adopt a plan as part of its rates whereby a one and a half percent
Late Payment Charge would be assessed on any past due amounts.
The issue in this case involves the characterization of the
late payment charges. Provision 4(c) expressly forbids the payments
of late charges if they are considered to be penalties or interest.](ViewImageLocal?handle=hein.gao/gaobadhjq0001&div=1&collection=&method=preview&ext=.png&size=3)