Section 42. Other charges

1.  A  utility  corporation or municipality may
  impose late payment charges not in excess of one  and  one-half  percent
  per  month  on  the  unpaid  balance  of any bill including any interest
  thereon. Any such late payment charge, however, may not  be  imposed  if
  the  bill  is  the  subject  of  a pending complaint with the utility or
  municipality  provided,  however,  that  such  charge  may  be   imposed
  retroactively  if  the  complaint  is  finally  resolved in favor of the
  utility or municipality.
    2. Except as provided in subdivision one of this section,  no  utility
  corporation  or  municipality may charge any residential customer a late
  payment charge, penalty, fee, interest, or other charge of any kind  for
  any  late  payment, collection effort, service disconnection or deferred
  payment agreement occasioned by the customer's failure to pay timely for
  gas or electric service.