                                 CODE OF VIRGINIA

CERTIFICATE TO FURNISH PUBLIC UTILITY SERVICE; ALLOTMENT OF TERRITORY TRANSFERS,
LEASES OR AMENDMENTS (§ 56-265.3)

A. 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 (&#xA7;
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 51 (&#xA7;
15.2-5100 et seq.) of Title 15.2, 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.

HISTORY: 1950, c. 599; 1968, c. 720; 1973, c. 397; 1986, c. 521; 1988, c. 233.