Columbia Gas owes the Franklin County School District interest for the money the school system should have received that instead went to the Frankfort Independent School District by mistake, according to a recent order issued by Franklin Circuit Judge William Graham.
The interest Columbia owes started accruing post-judgment on Nov. 26, 2001, at a rate of 1 percent per month on the $656,493 in question.
However, Graham ruled the Frankfort Independent District does not owe Columbia any post-judgment or pre-judgment interest or penalties on the $656,493 it was mistakenly given in misdirected utility taxes paid by Columbia Gas.
That means Columbia Gas is responsible for penalties and interest payments to the Franklin County Schools but the city school district is not responsible for paying Columbia Gas interest on the money obtained by mistake.
In November 2001, Graham ruled Columbia Gas of Kentucky Inc. owed the county school district for the taxes due, plus a penalty on the unpaid taxes. Graham also ruled the city school district owes Columbia Gas $656,493.