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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>75556</law_id><section_number>56-265.2</section_number><catch_line>Certificate of convenience and necessity required for acquisition, etc., of new facilities</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>15.2-5406</reference><reference>56-259</reference><reference>56-265.2:1</reference><reference>56-265.3:1</reference><reference>56-46.1</reference><reference>56-578</reference><reference>56-585.1</reference><reference>56-585.1:10</reference><reference>62.1-44.15:21</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="56">Public Service Companies</unit><unit label="chapter" level="2" order_by="1" identifier="10.1">Utility Facilities Act</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> 1. Subject to the provisions of subdivision 2, it shall be unlawful for any <span class="dictionary">public utility</span> to construct, enlarge or acquire, by lease or otherwise, any facilities for use in <span class="dictionary">public utility</span> service, except ordinary extensions or improvements in the usual course of business, without first having obtained a certificate from the <span class="dictionary">Commission</span> that the public convenience and necessity require the exercise of such right or <span class="dictionary">privilege</span>. Any certificate required by this section shall be issued by the <span class="dictionary">Commission</span> only after opportunity for a <span class="dictionary">hearing</span> and after due notice to interested parties. The certificate for overhead electrical transmission lines of 138 kilovolts or more shall be issued by the <span class="dictionary">Commission</span> only after compliance with the provisions of &#xA7;&#xA0;<a class="law" title="Commission to consider environmental, economic, and improvements in service reliability factors in approving construction of electrical utility facilities; approval required for construction of certain electrical transmission lines; notice and hearings" href="/56-46.1/">56-46.1</a>. <a id="paragraph-271428" class="section-permalink" href="https://vacode.org/56-265.2/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> For construction of any transmission line of 138 kilovolts and associated facilities, a <span class="dictionary">public utility</span> shall either (i) obtain a certificate pursuant to subdivision 1 or (ii) obtain approval pursuant to the requirements of (a) &#xA7; <a class="law" title="Legal status of plan" href="/15.2-2232/">15.2-2232</a> and (b) any applicable local zoning <span class="dictionary">ordinances</span> by the locality or localities in which the transmission line will be located. Issuance by the <span class="dictionary">Commission</span> of a certificate pursuant to subdivision 1 approving construction of a 138 kilovolt transmission line and any associated facilities shall be deemed to satisfy the requirements of &#xA7; <a class="law" title="Legal status of plan" href="/15.2-2232/">15.2-2232</a> and all local zoning <span class="dictionary">ordinances</span> with respect to the transmission line and its associated facilities. For purposes of this subdivision, &#x201C;associated facilities&#x201D; include any station, substation, transition station, and switchyard facilities to be constructed outside of any county operating under the county executive form of government that is located in Planning District 8 in association with a 138 kilovolt transmission line. <a id="paragraph-271429" class="section-permalink" href="https://vacode.org/56-265.2/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> In exercising its authority under this section, the <span class="dictionary">Commission</span>, notwithstanding the provisions of &#xA7; <a class="law" title="Certificate to operate in territory of another certificate holder" href="/56-265.4/">56-265.4</a>, may permit the construction and operation of electrical generating facilities, which shall not be included in the <span class="dictionary">rate</span> base of any regulated utility whose <span class="dictionary">rates</span> are established pursuant to Chapter 10 (&#xA7; <a class="law" title="Public utility and schedules defined" href="/56-232/">56-232</a> et seq.), upon a <span class="dictionary">finding</span> that such generating facility and associated facilities including transmission lines and equipment (i) will have no <span class="dictionary">material</span> adverse effect upon the <span class="dictionary">rates</span> paid by customers of any regulated <span class="dictionary">public utility</span> in the Commonwealth; (ii) will have no <span class="dictionary">material</span> adverse effect upon reliability of electric service provided by any such regulated <span class="dictionary">public utility</span>; and (iii) are not otherwise contrary to the public interest. In review of its <span class="dictionary">petition</span> for a certificate to construct and operate a generating facility described in this subsection, the <span class="dictionary">Commission</span> shall give consideration to the effect of the facility and associated facilities, including transmission lines and equipment, on the environment and establish such conditions as may be desirable or necessary to minimize adverse environmental impact as provided in &#xA7; <a class="law" title="Commission to consider environmental, economic, and improvements in service reliability factors in approving construction of electrical utility facilities; approval required for construction of certain electrical transmission lines; notice and hearings" href="/56-46.1/">56-46.1</a>. Facilities authorized by a certificate issued pursuant to this subsection may be exempted by the <span class="dictionary">Commission</span> from the provisions of Chapter 10 (&#xA7; <a class="law" title="Public utility and schedules defined" href="/56-232/">56-232</a> et seq.). <a id="paragraph-271430" class="section-permalink" href="https://vacode.org/56-265.2/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> A map showing the location of any proposed ordinary extension or improvement outside of the territory in which the <span class="dictionary">public utility</span> is lawfully authorized to operate shall be filed with the <span class="dictionary">Commission</span>, and prior notice of such ordinary extension shall be given to the <span class="dictionary">public utility</span> or other entity authorized to provide the same utility service within said territory. Ordinary extensions outside the service territory of a <span class="dictionary">public utility</span> shall be undertaken only for use in providing its <span class="dictionary">public utility</span> service and shall be constructed and operated so as not to interfere with the service or facilities of any <span class="dictionary">public utility</span> or other entity authorized to provide utility service within any other territory. If, upon objection of the affected utility or entity filed within 30 days of the aforesaid notice and after investigation and opportunity for a <span class="dictionary">hearing</span> the <span class="dictionary">Commission</span> finds an ordinary extension would not comply with this section, it may alter or <span class="dictionary">amend</span> the plan for such activity or prohibit its construction. <a id="paragraph-271431" class="section-permalink" href="https://vacode.org/56-265.2/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> Whenever a certificate is required under this section for a pipeline for the transmission or distribution of natural or manufactured gas, the <span class="dictionary">Commission</span> may <span class="dictionary">issue</span> such a certificate only after compliance with the provisions of &#xA7; <a class="law" title="Approval by Commission required for construction of certain gas pipelines and related facilities; notice and hearing" href="/56-265.2_1/">56-265.2:1</a>. As used in this section and &#xA7; <a class="law" title="Approval by Commission required for construction of certain gas pipelines and related facilities; notice and hearing" href="/56-265.2_1/">56-265.2:1</a>, &#x201C;<span class="dictionary">pipeline for the transmission or distribution of manufactured or natural gas</span>&#x201D; shall include the pipeline and any related facilities incidental or necessary to the operation of the pipeline. <a id="paragraph-271432" class="section-permalink" href="https://vacode.org/56-265.2/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> This section shall be subject to the requirements of &#xA7; <a class="law" title="Certificate to furnish public utility service; allotment of territory transfers, leases or amendments" href="/56-265.3/">56-265.3</a>, if any, and nothing herein shall be construed to supersede &#xA7; <a class="law" title="Certificate to furnish public utility service; allotment of territory transfers, leases or amendments" href="/56-265.3/">56-265.3</a>. <a id="paragraph-271433" class="section-permalink" href="https://vacode.org/56-265.2/#E"><i class="fa fa-link"/></a></p></section></text><history>1950, p. 599; 1985, c. 282; 1995, cc. 311, 514; 1998, c. 92; 2012, cc. 54, 284; 2017, c. 728.</history><metadata></metadata></law>
