Real property owners filed complaints against city-owned natural gas utility, arising from several billing disputes over accrual of late fees on unpaid gas bills that were the subject of docketed municipal liens.
The Public Utility Commission ordered refunds of years of late fees on charges that were subject to docketed liens, imposed financial penalties on utility for charging those late fees, and ordered utility to reorganize its billing system. Utility petitioned for review. The Commonwealth Court reversed. Petition for allowance of appeal was granted.
The Supreme Court held that municipal lien arising out of delinquent bills for city-owned natural gas utility service was “judgment,” so that after it was docketed, the utility could only charge 6% statutory interest rate.
A municipal lien arising out of delinquent bills for city-owned natural gas utility service was a “judgment,” so that after such a lien was docketed, the utility could only charge the customer the 6% statutory interest rate applicable to judgments, rather than the 18% tariff rate on late payments that had not been reduced to judgment.