CHAPTER 720

An Act to amend and reenact § 56-265.3 of the Code of Virginia, relating
to certificates of public convenience and necessity for public utility

service.
[S 358]
Approved April 5, 1968

Be it enacted by the General Assembly of Virginia:

1. That § 56-265.3 of the Code of Virginia be amended and reenacted
as follows:

§ 56-265.3. 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 authorizing
it to furnish such service; provided, however, that any company engaged
in furnishing a public utility service in this State as of July first, nine-
teen hundred fifty, 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 au-
thorizing it to furnish such public utility service in such territory; and
provided further, that any company that is granted authority under the
Public Utilities Securities Act to issue securities for the purpose of con-
structing or extending facilities described in the application for such au-
thority, shall, if the application was filed with the State Corporation Com-
mission before February first, nineteen hundred fifty, have the same right
to a certificate of convenience and necessary that it would have had if
the facilities had been in operation and serving the public on February
first, nineteen hundred fifty.

‘On application by any company other than one furnishing water or
sewerage service, 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.

If the applicant seeks authority to furnish water or sewerage service,
he shall file with his application a detailed description of the facilities and
services to be provided, together with a detailed estimate of the cost of
construction, operation and maintenance thereof; proposed rules, regula-
tions and rates, fees and charges under which service 1s to be rendered;
a statement of his qualifications to engage in such activities; and such
other information as the Commission may require.

In such cases involving authority to furnish water or sewerage serv-
ice, after formal hearing upon such notice to the public as the Com-
mission may prescribe and after ascertaining that (1) there is a public
need for the service in the area for which the certificate is sought; (2)
no other publicly or privately owned system is able to adequately provide
service in the said area; (3) the applicant’s proposed facilities will pro-
vide proper and adequate service for the area; (4) the applicant’s pro-
posed rules, regulations and rates, fees and charges for the service to be
rendered are reasonable; and (5) the applicant has the financial and
managerial ability necessary to properly install, maintain and operate the
proposed facilities and to render the required service, the Commission
may, if it finds such action in the public interest, issue a certificate of
convenience and necessity allotting territory for development of the pub-
lic utility service by the applicant; provided, however, that if the applica-
tion 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 Sections 15.1-1289, et. seq.
of the Code of Virginia, the Commission shall not hold any hearing on
such application or issue any certificate for the allotment of territory un-
less the application shall first have been approved by the governing body
of the political subdivision in which the territory is located.