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1998 SESSION
989316743Be it enacted by the General Assembly of Virginia:
1. That §§ 56-265.2 and 56-265.3 of the Code of Virginia are amended and reenacted as follows:
§ 56-265.2. Certificate of convenience and necessity required for acquisition, etc., of new facilities.
A. It Except as provided herein, it shall be
unlawful for any public utility to construct, enlarge or acquire, by lease or
otherwise, any facilities for use in public utility service, except ordinary
extensions or improvements in the usual course of business, without first
having obtained a certificate from the Commission that the public convenience
and necessity require the exercise of such right or privilege. Any certificate
required by this section shall be issued by the Commission only after
opportunity for a hearing and after due notice to interested parties. The
certificate for overhead electrical transmission lines of 150 kilovolts or more
shall be issued by the Commission only after compliance with the provisions of
§ 56-46.1.
B. A map showing the location of any proposed ordinary extension or improvement outside of the territory in which the public utility is lawfully authorized to operate shall be filed with the Commission, and prior notice of such ordinary extension shall be given to the public utility or other entity authorized to provide the same utility service within said territory. Ordinary extensions outside the service territory of a public utility shall be undertaken only for use in providing its public utility service and shall be constructed and operated so as not to interfere with the service or facilities of any public utility or other entity authorized to provide utility service within any other territory. If, upon objection of the affected utility or entity filed within thirty days of the aforesaid notice and after investigation and opportunity for a hearing the Commission finds an ordinary extension would not comply with this section, it may alter or amend the plan for such activity or prohibit its construction.
C. Whenever a certificate is required under this section for a pipeline for the transmission or distribution of natural or manufactured gas, the Commission may issue such a certificate only after compliance with the provisions of § 56-265.2:1. As used in this section and § 56-265.2:1, "pipeline for the transmission or distribution of manufactured or natural gas" shall include the pipeline and any related facilities incidental or necessary to the operation of the pipeline.
D. This section shall be subject to the requirements of § 56-265.3, if any, and nothing herein shall be construed to supersede § 56-265.3.
E. The provisions of this section shall not be applicable to any public utility, as it relates to a non-nuclear electric generating facility, located in a portion of the Commonwealth for which one or more independent system operators has been approved by the Federal Energy Regulatory Commission to coordinate and control the operation of the interconnected electric energy transmission grid system.
§ 56-265.3. Certificate to furnish public utility service; allotment of territory transfers, leases or amendments.
A. No Except as provided herein, no public
utility shall begin to furnish public utility service within the Commonwealth
without first having obtained from the Commission a certificate of public
convenience and necessity authorizing it to furnish such service. Any company
engaged in furnishing a public utility service in this Commonwealth as of July
1, 1950, shall, upon filing maps with the Commission within ninety days from
such date, showing the territory now being served by it, be entitled to receive
a certificate of convenience and necessity authorizing it to begin to furnish
such public utility service in such territory. Also, any company that is
granted authority under the Public Utilities Securities Act, Chapter 3 (§
56-55 et seq.) of this title to issue securities for the purpose of
constructing or extending facilities described in the application for such
authority, shall, if the application was filed with the State Corporation
Commission before February 1, 1950, have the same right to a certificate of
convenience and necessity that it would have had if the facilities had been in
operation and serving the public on February 1, 1950. Any company which was
engaged in furnishing a public utility service in this Commonwealth as of July
1, 1950, and which is now so engaged in providing the same kind of service, and
which could have filed maps with the Commission in accordance with the
requirements of this section but failed to do so, may file such maps not later
than January 1, 1974, showing the territory now being served by it, and be
entitled to receive a certificate of convenience and necessity authorizing it
to continue to furnish the same kind of public utility service in such areas to
the same extent as if it had filed maps as of July 1, 1950.
B. On initial application by any company, the Commission, after formal or informal hearing upon such notice to the public as the Commission may prescribe, may, by issuance of a certificate of convenience and necessity, allot territory for development of public utility service by the applicant if the Commission finds such action in the public interest.
C. If the initial application provides for the furnishing of water or sewerage
service within any political subdivision in which there has been created an
authority for either or both of such purposes pursuant to Chapter
2851 (§ 15.1-1239
15.2-5100 et seq.) of Title 15.115.2,
the Commission shall not hold any hearing on such application or issue any
certificate for the allotment of territory unless the application shall first
have been approved by the governing body of the political subdivision in which
the territory is located. In any area where a water company was in existence
and furnishing water prior to the formation of an authority to provide water,
the Commission may hold a hearing on an application and issue a certificate to
the water company for that territory which was served prior to the creation of
the authority whether or not the governing body of the political subdivision
has approved the application. In any area where a sewer company was in
existence and furnishing sewer services prior to the formation of an authority
to provide sewer services, the Commission may hold a hearing on an application
and issue a certificate to the sewer company for that territory which was
served prior to the creation of the authority whether or not the governing body
of the political subdivision has approved the application.
D. If the Commission finds it to be in the public interest, upon the application of a holder of a water or sewer certificate, such certificate may be transferred, leased or amended after such reasonable notice to the public and opportunity to be heard as the Commission by order may prescribe. The Commission may authorize the transfer, lease, or amendment of the certificate subject to such restrictions as the Commission finds will promote the public interest.
E. The Commission is authorized to promulgate any rules necessary to implement this section.
F. The provisions of this section shall not be applicable to any public utility, as it relates to a non-nuclear electric generating facility, located in a portion of the Commonwealth for which one or more independent system operators has been approved by the Federal Energy Regulatory Commission to coordinate and control the operation of the interconnected electric energy transmission grid system.