                                 CODE OF VIRGINIA

CERTIFICATE OF CONVENIENCE AND NECESSITY REQUIRED FOR ACQUISITION, ETC., OF NEW
FACILITIES (§ 56-265.2)

A. 1. Subject to the provisions of subdivision 2, 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 138 kilovolts or more shall be issued by the
Commission only after compliance with the provisions of § 56-46.1.

   2. For construction of any transmission line of 138 kilovolts and associated
   facilities, a public utility shall either (i) obtain a certificate pursuant to
   subdivision 1 or (ii) obtain approval pursuant to the requirements of (a)
   &#xA7; 15.2-2232 and (b) any applicable local zoning ordinances by the
   locality or localities in which the transmission line will be located.
   Issuance by the Commission 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; 15.2-2232 and
   all local zoning ordinances with respect to the transmission line and its
   associated facilities. For purposes of this subdivision, &#8220;associated
   facilities&#8221; 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.

B. In exercising its authority under this section, the Commission,
notwithstanding the provisions of &#xA7; 56-265.4, may permit the construction
and operation of electrical generating facilities, which shall not be included
in the rate base of any regulated utility whose rates are established pursuant
to Chapter 10 (&#xA7; 56-232 et seq.), upon a finding that such generating
facility and associated facilities including transmission lines and equipment
(i) will have no material adverse effect upon the rates paid by customers of any
regulated public utility in the Commonwealth; (ii) will have no material adverse
effect upon reliability of electric service provided by any such regulated
public utility; and (iii) are not otherwise contrary to the public interest. In
review of its petition for a certificate to construct and operate a generating
facility described in this subsection, the Commission 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; 56-46.1. Facilities authorized by a certificate issued pursuant to this
subsection may be exempted by the Commission from the provisions of Chapter 10
(&#xA7; 56-232 et seq.).

C. 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 30
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.

D. 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 &#xA7;
56-265.2:1. As used in this section and &#xA7; 56-265.2:1, &#8220;pipeline for
the transmission or distribution of manufactured or natural gas&#8221; shall
include the pipeline and any related facilities incidental or necessary to the
operation of the pipeline.

E. This section shall be subject to the requirements of &#xA7; 56-265.3, if any,
and nothing herein shall be construed to supersede &#xA7; 56-265.3.

HISTORY: 1950, p. 599; 1985, c. 282; 1995, cc. 311, 514; 1998, c. 92; 2012, cc.
54, 284; 2017, c. 728.