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2009 SESSION

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HB 1970 Underground distribution system; delivery of propane service.

Introduced by: R. Lee Ware, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION: (all summaries)

Utility Facilities Act; delivery of propane service.  Excludes any company that provides non-utility gas service from the definition of a "public utility" for purposes of the Utility Facilities Act.  The State Corporation Commission may authorize a person to provide non-utility gas service to (i) two or more residential or commercial customers located one-half mile or less from any existing underground natural gas line operated by a regulated utility; (ii) more than 10 residential or two commercial customers located more than one-half mile but within one mile or less from any existing underground natural gas line operated by a regulated utility; (iii) more than 20 residential or five commercial customers located more than one mile but within three miles or less from any existing underground natural gas line operated by a regulated utility; or (iv) more than 50 residential or 10 commercial customers located more than three miles but no more than five miles from an existing underground natural gas line operated by a regulated utility, if the Commission finds that (a) the natural gas utility that holds the certificate to provide natural gas service in the defined geographic area proposed to be served is not currently offering service to the area and is unable to extend natural gas utility service to the requested area within a reasonable period of time, and (b) the proposed provision of non-utility gas service is in the public interest.  A municipal corporation providing gas service to residential or commercial customers located within an area where a natural gas utility holds a certificate to provide service is required to have the certificate holder's authorization.  Such authorization shall not be unreasonably withheld.  This requirement does not apply to (i) any fully constructed and operational municipally-owned gas service system in place as of the effective date of this act, (ii) industrial parks located within the corporate limits of a city whose 2000 population is greater than 45,000 but less than 50,000, or (iii) any facility consisting of an industrial park owned or developed prior to the enactment of this legislation by a Regional Industrial Facility Authority, the members of which are such city and a contiguous county.  Non-utility gas service providers are required to comply with all pipeline safety standards, and are subject to applicable penalties for violations of pipeline safety requirements.  The measure also provides that the provision of non-utility gas service without SCC approval is punishable by a penalty of up to $500 per day.  HB 2081 is incorporated. The measure is emergency legislation that will be effective upon passage.


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