CHAPTER 327

AN ACT to require public utilities to secure certificates of conveni-
ence and necessity in certain cases and to prescribe the powers
of the State Corporation Commission in that regard.

[8 42]

Approved April 5, 1950

Be it enacted by the General Assembly of Virginia:

1. § 1. Definitions.—In this act the following terms shall have
the following meanings:

(a) “Company” means a corporation, an individual, a partner-
ship, an association, a joint-stock company, a business trust, a
cooperative, or an organized group of persons, whether incorporated
or not; or any receiver, trustee or other liquidating agent of any
of the foregoing in his capacity as such; but not a municipal
corporation.

(b) “Public utility” means any company which owns or oper-
ates facilities within the Commonwealth of Virginia for the genera-
tion, transmission or distribution of electric energy for sale, for the
production, transmission, or distribution, otherwise than in enclosed
portable containers, of natural or manufactured gas for sale for
heat, light or power, or for the furnishing of telephone service or
water.

(c) “Commission” means the State Corporation Commission.

§ 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 within the territory in which it is
lawfully authorized to operate, without first having obtained a
certificate from the Commission that the public convenience and
necessity require the exercise of such right or privilege. Such cer-
tificate shall be issued by the Commission only after formal or
informal hearing and after due notice to interested parties.

§ 3. No public utility shall engage in furnishing public utility
service within the State without first having obtained from the
Commission a certificate of public convenience and necessity author-
izing it to furnish such service; provided, however, that any com-
pany engaged in furnishing a public utility service in this State
as of the effective date of this act shall, upon filing maps with the
Commission within ninety days from the effective date hereof,
showing the territory now being served by it, be entitled to receive
a certificate of convenience and necessity authorizing it to furnish
such public utility service in such territory; and provided further,
that any company that is granted authority under the public
utilities securtties act to issue securities for the purpose of con-
structing or extending facilities described in the applicaton for
such authorty, 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 tt would
have had if the facilities had been in operation and serving the
public on February 1, 1950.

On application by any company, the Commission, after formal
hearing upon such notice to the public as the Commission may
prescribe, may, by 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.

§ 4. No certificate shall be granted to an applicant proposing
to operate in the territory of any holder of a certificate unless and
until it shall be proved to the satisfaction of the Commission that
the service rendered by such certificate holder in such territory is
inadequate to the requirements of the public necessity and conveni-
ence; and if the Commission shall be of opinion that the service
rendered by such certificate holder in such territory is in any
respect inadequate to the requirements of the public necessity and
convenience, such certificate holder shall be given reasonable time
and opportunity to remedy such inadequacy before any certificate
shall be granted to an applicant proposing to operate in such
territory.

§ 5. Certificates issued under the provisions of this act shall
be effective from the date of issuance unless a different date be
specified therein and shall remain in effect until terminated as
herein provided. The Commission may, by its order duly entered
after hearing, held after due notice to the holder of any such
certificate and an opportunity to such holder to be heard, at which
hearing it shall be proved that such holder has wilfully made a
misrepresentation of a material fact in obtaining such certificate
or has wilfully violated or refused to observe the laws of this State
touching such certificate or any of the terms of the certificate, or
any of the Commission’s proper orders, rules or regulations, impose
a penalty not exceeding One Thousand Dollars ($1,000.00) which
may be collected by the process of the Commission as provided by
law; or the Commission may suspend, revoke, alter or amend any
such certificate for any of the causes set forth above. But no such
certificate shall be revoked, altered or amended (except upon
application of the holder thereof) unless the holder thereof shall
wilfully fail to comply, within a reasonable time to be fixed by
the Commission, with the lawful order of the Commission or with
the lawful rule or regulation of the Commission, or with the term,
condition or limitation of such certificate, found by the Com-
mission to have been violated by such holder. No such certificate
shall be suspended, revoked, altered or amended for any cause not
stated in this section.

Proceedings looking to the imposition of any penalty provided
for in this section may be commenced upon the complaint of any
person or upon the Commission’s own initiative.
From any order of the Commission suspending, revoking, alter-
ing or amending any certificate, the holder thereof shall have the
right of appeal to the Supreme Court of Appeals of Virginia, as a
matter of right, as in other cases of appeals from the Commission.

§ 6. If any provision of this act or the application of such
provision to any company or circumstances shall be held invalid,
the remainder of this act and the application of such provision to
companies or circumstances other than those for which it is held
invalid shall not be affected thereby.

§ 7. The provisions of this act shall not apply to or in any way
affect any proceeding before the State Corporation Commission on
or before the effective date hereof and shall not confer on said
Comniission any jurisdiction not now vested in it with respect to
any such proceeding.

§ 8. This act may be cited as the Utility Facilities Act.