9-516. Declaration of public policy; eminent
domain
A. It is declared as the public policy of the state that when adequate public
utility service under authority of law is being rendered in an area, within or without
the boundaries of a city or town, a competing service and installation shall not be
authorized, instituted, made or carried on by a city or town unless or until that portion
of the plant, system and business of the utility used and useful in rendering such
service in the area in which the city or town seeks to serve, has been acquired.
B. The city or town which seeks to acquire the facilities of a public service
corporation shall have the right to do so under eminent domain. Such action shall be
brought and prosecuted in the same manner as other civil actions.
C. A city or town acquiring the facilities of a public service corporation
rendering utility service without the boundaries of such city or town, or which renders
utility service without its boundaries, shall not discontinue such service, once
established, as long as such city or town owns or controls such utility. A city or town
which renders utility service outside of its boundaries as prescribed by this subsection
shall not be prohibited from selling a part of its utility operation to another utility
which operates under regulations prescribed by law.
D. It is declared the public policy of the state that when a city or town has
purchased the property or plant of a public utility serving in an area within or without
the boundaries of the city or town pursuant to this article, the corporation commission
shall not be authorized or empowered to grant a new certificate of convenience and
necessity or franchise to any person, firm or corporation to provide the same kind of
public utility service within the area or territory previously authorized to said public
utility under its certificate of convenience and necessity or franchise, but if the city
or town refuses to provide utility service to a portion or part of the area or territory
previously authorized to the public utility, the corporation commission may issue a new
certificate of convenience and necessity or franchise to a public utility to provide
utility service in that portion or part of the area or territory.
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