Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 26.00 - Security Deposits and Late Payment Charges Applicable to Non-residential Customers
Section 26.10 - Late Payment Charges on Unpaid Balance of Bills in Arrears
Current through Register 1531, September 27, 2024
(1) A company may assess a late payment charge on the unpaid past due portion of the balance of a customer bill.
(2) For the purpose of calculating the late payment charge, a company may consider a portion of a balance past due when payment has not been received by the company for that portion of the balance within the period specified in the company's Terms and Conditions.
(3) The late payment charge shall be calculated at an annual rate of interest which is the equivalent of the rate paid on two-year United States Treasury notes for the preceding 12 months ending December 31st of any year, plus 10%, i.e. 1000 basis points.
(4) Such two-year United States Treasury note rate shall be the rate published during the first week of January in the Federal Reserve Statistical Release, H.15 Selected Interest Rates. A company shall determine said rate and file with the Department the rate to be charged on all overdue portions of balances within 15 days after such rate is reported in the Federal Reserve Statistical Release. Revisions to the annual late payment charge rate shall become effective on February first of each year.
(5) Each company shall notify its customers of changes in the late payment charge rate in the month a new rate becomes effective.
