N.Y. Comp. Codes R. & Regs. tit. 16, § 531.1
Any corporation, partnership or person furnishing water service may impose a late payment charge, either one-time or continuing interest type, because of the failure of any customer to pay a bill for such service within a specified period therein stated. This section does not apply to residential customers of any waterworks corporation that is covered by Part 14 of this Title.