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B-222944 1 (1987-10-23)

handle is hein.gao/gaobadmww0001 and id is 1 raw text is: 


The Comptroller General
of the United States
Wahington, D.C. 20548

Decision

           National Park Service--Late Payment Charges for

Matterof-    Utility Services

File:      B-222944

Date:      October 23, 1987

DIGEST

Payments on invoices by the National Park Service, Depart-
ment of the Interior, submitted by an unregulated private
electri-c utility company which is not governed by tariff
approved by a state commission may be covered by the
shorter payment term established by company policy rather
than the longer payment term set forth in provision of the
Prompt Payment Act, 31 U.S.C. S 3903(l)(B), where elements
of implied contract, i.e., acceptance of electrical service
with notice of company's policy are present.


DECISION

The Regional Finance Otticer (a certitying officer) of the
National Park Service, Department of the Interior, Pacitic
Northwest Region requested our decision on whether he may
certify for payment invoices for finance charges assessed by
the Lincoln Electric Cooperative, Inc. (Cooperative),
Davenport, Washington, a non-regulated utility, for late
payments of monthly electric bills. For the reasons stated
below, we hold that he should certify the finance charges
for payment.

BACKGROUND

This case arises because the Service is generally unable to
pay Lincoln Electric's invoices within the time period the
Cooperative's policy prescribes. The Cooperative provides
electricity to National Park Service installations in the
Coulee Dam National Recreation Area. Invoices are sent to
Coulee Dam near the first of each month. Its policy is that
payment is delinquent it not received by the 15th of the
month. The Cooperative assesses a 1-1/2 percent penalty per
month on a delinquent payment until paid with a $l minimum.

The Service usually cannot make payment by the 15th of the
month because of the time it needs to complete administra-
tive approval and payment procedures. Upon receiving an





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