§ 62-118. Abandonment and reduction of service.
§ 62‑118. Abandonment and reduction of service.
(a) Upon finding that public convenience and necessity are nolonger served, or that there is no reasonable probability of a public utilityrealizing sufficient revenue from a service to meet its expenses, theCommission shall have power, after petition and notice, to authorize by orderany public utility to abandon or reduce such service. Upon request from anyparty having an interest in said utility service, the Commission shall hold apublic hearing on such petition, and may on its own motion hold a publichearing on such petition. Provided, however, that abandonment or reduction ofservice of motor carriers shall not be subject to this section, but shall beauthorized only under the provisions of G.S. 62‑262(k) and G.S. 62‑262.2.
(b) If any person or corporation furnishing water or sewerutility service under this Chapter shall abandon such service without the priorconsent of the Commission, and the Commission subsequently finds that suchabandonment of service causes an emergency to exist, the Commission may, unlessthe owner or operator of the affected system consents, apply in accordance withG.S. 1A‑1, Rule 65, to a superior court judge who has jurisdictionpursuant to G.S. 7A‑47.1 or 7A‑48 in the district or set ofdistricts as defined in G.S. 7A‑41.1 in which the person or corporationso operates, for an order restricting the lands, facilities and rights‑of‑wayused in furnishing said water or sewer utility service to continued use infurnishing said service during the period of the emergency. An emergency isdefined herein as the imminent danger of losing adequate water or sewer utilityservice or the actual loss thereof. The court shall have jurisdiction torestrict the lands, facilities, and rights‑of‑way to continued usein furnishing said water or sewer utility service by appropriate orderrestraining their being placed to other use, or restraining their beingprevented from continued use in furnishing said water or sewer utility service,by any person, corporation, or their representatives. The court may, in itsdiscretion, appoint an emergency operator to assure the continued operation ofsuch water or sewer utility service. The court shall have jurisdiction torequire that reasonable compensation be paid to the owner, operator or otherparty entitled thereto for the use of any lands, facilities, and rights‑of‑waywhich are so restricted to continued use for furnishing water or sewer utilityservice during the period of the emergency, and it may require the emergencyoperator of said lands, facilities, and rights‑of‑way to post bondin an amount required by the court. In no event shall such compensation, foreach month awarded, exceed the net average monthly income of the utility forthe 12‑month period immediately preceding the order restricting use.
(c) Whenever the Commission, upon complaint or investigationupon its own motion, finds that the facilities being used to furnish water orsewer utility service are inadequate to such an extent that an emergency (asdefined in G.S. 62‑118(b) above) exists, and further finds that there isno reasonable probability of the owner or operator of such utility obtainingthe capital necessary to improve or replace the facilities from sources otherthan the customers, the Commission shall have the power, after notice andhearing, to authorize by order that such service be abandoned or reduced tothose customers who are unwilling or unable to advance their fair share of thecapital necessary for such improvements. The amount of capital to be advancedby each customer shall be subject to approval by the Commission, and shall beadvanced under such conditions as will enable each customer to retain aproprietary interest in the system to the extent of the capital so advanced. The remedy prescribed in this subsection is in addition to other remediesprescribed by law. (1933, c. 307, s.32; 1963, c. 1165, s. 1; 1971, c. 552, s. 1; 1973, c. 1393; 1985, c. 676, s.14; 1987 (Reg. Sess., 1988), c. 1037, s. 93; 1989 (Reg. Sess., 1990), c. 1024,s. 15.)