§269-7.5 - Certificates of public convenience and necessity.
§269-7.5 Certificates of public convenienceand necessity. (a) No public utility, as defined in section 269‑1,shall commence its business without first having obtained from the commission acertificate of public convenience and necessity. Applications for certificatesshall be made in writing to the commission and shall comply with therequirements prescribed in the commission's rules. The application shallinclude the type of service to be performed, the geographical scope of theoperation, the type of equipment to be employed in the service, the name ofcompeting utilities for the proposed service, a statement of its financialability to render the proposed service, a current financial statement of theapplicant, and the rates or charges proposed to be charged including the rulesgoverning the proposed service.
(b) If the applicant for a certificate ofpublic convenience and necessity has any known consumers or patrons at the timeof the filing of the application, the applicant shall notify these consumers orpatrons of the rates and charges proposed to be established by the application;provided that:
(1) The notice shall be mailed to the last knownaddress of the consumer or patron on file with the applicant or the applicant'saffiliates; and
(2) The manner and the fact of the notification shallbe reported to the commission,
within seven days from the filing of the application.
(c) A certificate shall be issued to anyqualified applicant, authorizing the whole or any part of the operations coveredby the application, if it is found that the applicant is fit, willing, and ableproperly to perform the service proposed and to conform to the terms,conditions, and rules adopted by the commission, and that the proposed serviceis, or will be, required by the present or future public convenience andnecessity; otherwise the application shall be denied. Any certificate issuedshall specify the service to be rendered and there shall be attached to theexercise of the privileges granted by the certificate at the time of issuanceand from time to time thereafter, such reasonable conditions and limitations asa public convenience and necessity may require. The reasonableness of therates, charges, and tariff rules proposed by the applicant shall be determinedby the commission during the same proceeding examining the present and futureconveniences and needs of the public and qualifications of the applicant, inaccordance with the standards set forth in section 269‑16.
(d) No public utility that holds a franchiseor charter enacted or granted by the legislative or executive authority of theState or its predecessor governments, or that has a bona fide operation as apublic utility heretofore recognized by the commission, shall be required toobtain a certificate of public convenience and necessity under this section.
(e) Any certificate, upon application of theholder and at the discretion of the public utilities commission, may beamended, suspended, or revoked, in whole or in part. The commission afternotice and hearing may suspend, amend, or revoke any certificate in part or inwhole, if the holder is found to be in wilful violation of any of theprovisions of this chapter or with any lawful order or rule of the commissionadopted thereunder, or with any term, condition, or limitation of thecertificate. [L 1978, c 72, §1; am L 1986, c 127, §1; am L 2006, c 9, §1]
Case Notes
Rebuttable presumption that a contribution was made by lotowners, or lessees, for construction of a utility system inapplicable based onlack of salient characteristics showing intent by developer to obtain doublerecovery for its capital construction costs and regulatory scheme of thissection. 83 H. 132, 925 P.2d 302.