Michigan Administrative Code
Department - Licensing and Regulatory Affairs
Public Service Commission
Consumer Standards And Billing Practices For Electric And Gas Residential Service
Part 5 - BILLING AND PAYMENT STANDARDS
Section R. 460.125 - Late payment charges

(1) Except as otherwise provided by statute, a utility shall bill each residential customer for the amount of natural gas or electricity consumed and any other approved charges pursuant to the rates and tariffs approved by the commission.

(2) A utility may assess residential customers a late payment charge that is not more than 2%, not compounded, of the portion of the bill, net of taxes, that is delinquent. A utility shall not assess a late-payment charge against a residential customer whose payments are made by the department of health and human services or who is participating in a shutoff protection program described in Part 9 of these rules, R 460.145 to R 460.153.

(3) A utility may not charge residential customers a late payment fee for failure to pay an estimated bill by the due date unless the customer is subsequently delinquent on a bill using an actual meter reading. This rule shall not apply if the bill is estimated because the utility was unable to gain access to the meter, the utility's lack of access is documented, and the customer refused to provide an actual meter reading.

(4) For nonresidential customers, unless the utilitys tariff states otherwise, a late payment charge of not more than 2%, not compounded, may be applied to the unpaid balance outstanding, net of taxes, if the bill is not paid in full on or before the date on which the bill is due.