56-265.2 - Certificate of convenience and necessity required for acquisition, etc., of new facilities.
§ 56-265.2. Certificate of convenience and necessity required foracquisition, etc., of new facilities.
A. It shall be unlawful for any public utility to construct, enlarge oracquire, by lease or otherwise, any facilities for use in public utilityservice, except ordinary extensions or improvements in the usual course ofbusiness, without first having obtained a certificate from the Commissionthat the public convenience and necessity require the exercise of such rightor privilege. Any certificate required by this section shall be issued by theCommission only after opportunity for a hearing and after due notice tointerested parties. The certificate for overhead electrical transmissionlines of 150 kilovolts or more shall be issued by the Commission only aftercompliance with the provisions of § 56-46.1.
B. In exercising its authority under this section, the Commission,notwithstanding the provisions of § 56-265.4, may permit the construction andoperation of electrical generating facilities, which shall not be included inthe rate base of any regulated utility whose rates are established pursuantto Chapter 10 (§ 56-232 et seq.) of this title, upon a finding that suchgenerating facility and associated facilities including transmission linesand equipment (i) will have no material adverse effect upon the rates paid bycustomers of any regulated public utility in the Commonwealth; (ii) will haveno material adverse effect upon reliability of electric service provided byany such regulated public utility; and (iii) are not otherwise contrary tothe public interest. In review of its petition for a certificate to constructand operate a generating facility described in this subsection, theCommission shall give consideration to the effect of the facility andassociated facilities, including transmission lines and equipment, on theenvironment and establish such conditions as may be desirable or necessary tominimize adverse environmental impact as provided in § 56-46.1. Facilitiesauthorized by a certificate issued pursuant to this subsection may beexempted by the Commission from the provisions of Chapter 10 (§ 56-232 etseq.) of Title 56.
C. A map showing the location of any proposed ordinary extension orimprovement outside of the territory in which the public utility is lawfullyauthorized to operate shall be filed with the Commission, and prior notice ofsuch ordinary extension shall be given to the public utility or other entityauthorized to provide the same utility service within said territory.Ordinary extensions outside the service territory of a public utility shallbe undertaken only for use in providing its public utility service and shallbe constructed and operated so as not to interfere with the service orfacilities of any public utility or other entity authorized to provideutility service within any other territory. If, upon objection of theaffected utility or entity filed within thirty days of the aforesaid noticeand after investigation and opportunity for a hearing the Commission finds anordinary extension would not comply with this section, it may alter or amendthe plan for such activity or prohibit its construction.
D. Whenever a certificate is required under this section for a pipeline forthe transmission or distribution of natural or manufactured gas, theCommission may issue such a certificate only after compliance with theprovisions of § 56-265.2:1. As used in this section and § 56-265.2:1,"pipeline for the transmission or distribution of manufactured or naturalgas" shall include the pipeline and any related facilities incidental ornecessary to the operation of the pipeline.
E. 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.
(1950, p. 599; 1985, c. 282; 1995, cc. 311, 514; 1998, c. 92.)