CHAPTER 228

An Act to amend the Code of Virginia by adding in Chapter 10.1 of Title
56 a section numbered 56-265.4:1, relating to the furnishing of electric
public utility service or provision of facilities therefor by municipal
corporations and other governmental bodies and providing for agree-
ments with public utilities with respect thereto; and conferring and
amposing on the State Corporation Commission certain powers and
duties with respect thereto.

[S 36]

Approved March 31, 1964
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding in Chapter 10.1 of
Title 56 a section numbered 56-265.4:1, as follows:

§ 56-265.4:1. Lf any municipal corporation or other governmental body,
having legal authority by charter or other law, shall desire to supply electric
public utility service, or construct, enlarge or acquire, by lease or otherwise,
any electric utility facilities, outside its political boundaries, it shall have
power to enter into agreements in that regard with affected public utilities
which shall be binding in accordance with their terms and for the period
therein provided; but no contract entered into under this section shall limit
the power of the Commission to fix rates and to otherwise regulate a public
utility. No such service by a municipal corporation or other governmental
body shall be provided, or facilities constructed, enlarged or acquired, in
territory alloted to any public utility by the Commission except in territory
served by such municipal corporation or other governmental body on the
effective date of this act, unless the affected public utility shall consent by
such an agreement or the Commission shall grant a certificate therefor upon
application by the municipal corporation or other governmental body pur-
suant to § 56-265.4, authority for which certification is hereby granted. No
public utility shall extend its electric public utility service, or construct,
enlarge or acquire, by lease or otherwise, any electric utility facilities, in
territory served exclusively by a municipal corporation or other govern-
mental body on the effective date of this act, unless such municipal corpora-
tion or other governmental body shall consent by such an agreement. In
case of question as to the scope of the territory served by a municipal
corporation or other governmental body on the effective date of this act, the
Commission may, and on application by either such public utility or such
municipal corporation or other governmental body shall, decide such ques-
tion and allot such territory accordingly, between such public utility and
such municipal corporation or other governmental body, in which event any
expansion of service outside the territory so alloted shall be subject to
the applicable provisions of this Chapter, provided, however, that nothing
contained herein shall prevent any municipal corporation from constructing
or maintaining facilities in county areas for the purpose of generating or
purchasing electricity to be transmitted into the service area of such
municipal corporation.

Nothing herein shall be construed to increase, decrease or affect any
rights a municipal corporation, public utility or other governmental body
may have with regard to supplying electric public utility service in areas
heretofore or hereafter annexed by such municipal corporation.