State Codes and Statutes

Statutes > Virginia > Title-56 > Chapter-10-1 > 56-265-4-6

§ 56-265.4:6. Furnishing non-utility gas service.

A. In this section the following terms shall have the following meanings:

"Affiliated interest" shall have the same meaning as set forth in § 56-76and shall be applied in this statute to non-utility gas service providers.

"Commercial customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a nonresidential customer under theapplicable natural gas utility's tariff.

"Municipally-owned gas service" means the sale and distribution of naturalgas by a municipal corporation that has the authority to provide natural gasdistribution service through the provisions of its charter.

"Natural gas line" means a distribution or transmission pipeline owned andoperated by the natural gas utility and subject to the jurisdiction of theCommission but excluding such lines that serve only a single residence orretail establishment.

"Natural gas utility" or "utility" means an investor-owned public servicecompany engaged in the business of furnishing natural gas service to thepublic and which is regulated as to rates and service pursuant to this title.

"Non-utility gas service" means the sale and distribution of propane,propane-air mixtures, or other natural or manufactured gas to two or morecustomers by way of underground or aboveground distribution lines by a personother than a natural gas utility or an affiliated interest of a natural gasutility, master meter operator, or any person operating in compliance with §56-1.2.

"Non-utility gas service provider" means a person, other than a natural gasutility, providing non-utility gas service.

"Person" means any individual, corporation, partnership, association,company, business trust, joint venture or other private legal entity.

"Pipeline safety standards" means all gas pipeline safety requirementsestablished pursuant to § 56-257.2.

"Residential customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a residential customer under theapplicable natural gas utility's tariff.

B. A person, individually or together with its affiliated interests, otherthan the natural gas utility that holds the certificate to provide naturalgas service in a particular territory or one of its affiliated interests,shall apply to the Commission for and obtain approval prior to providingnon-utility gas service to:

1. Two or more residential or commercial customers located one-half mile orless from any existing underground natural gas line operated by a utilityunder the jurisdiction of the Commission;

2. More than 10 residential or two commercial customers located more thanone-half mile but within one mile or less from any existing undergroundnatural gas line operated by a utility under the jurisdiction of theCommission;

3. More than 20 residential or five commercial customers located more thanone mile but within three miles or less from any existing underground naturalgas line operated by a utility under the jurisdiction of the Commission; or

4. More than 50 residential or 10 commercial customers located more thanthree miles but no more than five miles from an existing underground naturalgas line operated by a utility under the jurisdiction of the Commission.

Approval of any application to provide non-utility gas service pursuant tothis section shall be granted by the Commission only after opportunity for ahearing and after due notice to the natural gas utility that holds thecertificate to provide service in the defined geographic area proposed to beserved. The Commission shall approve an application to provide non-utilitygas service upon finding that: (i) the natural gas utility that holds thecertificate to provide natural gas service in the defined geographic areaproposed to be served is not currently offering service to the area desiredfor non-utility gas service and is unable to extend natural gas utilityservice to the requested area within a reasonable period of time; and (ii)the provision of non-utility gas service in the defined geographic areaproposed to be served, and to the estimated number of customers defined inthe application, is in the public interest.

Any order approving an application to provide non-utility gas servicepursuant to this section shall define the geographic area to be covered andthe maximum number of customers to whom the non-utility gas service providercan provide service before having to apply to the Commission for a revisedorder. The order approving an application to provide non-utility gas serviceshall also provide for compliance with all pipeline safety standards;however, nothing in the order shall authorize the Commission to exercisejurisdiction over the rates, charges, or services being offered inconjunction with non-utility gas service by a non-utility gas serviceprovider. Further, except as provided in this section, approval of anapplication to provide non-utility gas service shall not infringe upon ordiminish the rights of the natural gas utility that holds the certificate toprovide natural gas service in the specified area.

Any fully constructed and operational non-utility gas service system as ofApril 8, 2009, shall be exempt from the requirements of this subsection.

C. A non-utility gas service provider shall comply with the provisions ofsubsection B if any proposed new customers (i) are located in or are adjacentto a residential subdivision, commercial or mixed-use development, currentlybeing provided non-utility gas service by that non-utility gas serviceprovider and (ii) the number of such new customers, when added to the numberof then existing customers of such non-utility gas service provider,individually or together with its affiliated interests, located in theadjacent residential subdivision, commercial or mixed-use development, wouldexceed the threshold number of customers for any of the geographical areasdescribed in subsection B.

D. In any instance in which customers proposed to be served by a non-utilitygas service provider, individually or together with its affiliated interests,are in the same residential subdivision, commercial or mixed-use development,or any phase thereof, and that residential subdivision, commercial or mixeduse development, including all parts and phases thereof, straddles any of thedistance thresholds set forth in subsection B, then all of the customers inall parts and phases of such residential subdivision, commercial or mixed-usedevelopment shall be deemed to be within the distance from the undergroundnatural gas line operated by a utility under the jurisdiction of theCommission applicable to the customer located in such residentialsubdivision, commercial or mixed-use development that is located closest tosuch underground natural gas line operated by a utility under thejurisdiction of the Commission.

E. The distance threshold set forth in subsection B shall be measured in alinear manner and shall be based upon the underground natural gas linesoperated by a utility under the jurisdiction of the Commission that are inexistence at the time the non-utility gas service provider applies forCommission approval pursuant to subsection B, if applicable, or at the timethe non-utility gas service provider applies for the initial local governmentapproval necessary to construct its distribution lines required to serve theproposed new customers, whichever is earlier.

F. All non-utility gas service providers shall provide notice to theCommission of any and all non-utility gas service that is subject to pipelinesafety standards and is being provided to two or more customers in theCommonwealth and shall provide notice of the construction of new non-utilitygas service to the Commission no later than 30 days prior to commencingconstruction of such system. Any non-utility gas service provider that isrequired to provide such notice shall be subject to the jurisdiction of theCommission for the purpose of ensuring compliance with the pipeline safetystandards and subject to any penalties that may be applicable under §56-257.2. Upon request of the Commission, the non-utility gas serviceprovider shall provide, within 30 days of such request, documentation to showcompliance with the requirements of the pipeline safety standards.

G. Any municipal corporation that provides municipally-owned gas service toresidential or commercial customers located within an area where a naturalgas utility holds a certificate to provide service, must have writtenauthorization from that certificate holder to provide such service whichauthorization shall not be unreasonably withheld. The written authorizationshall define the geographic area to be served by the municipally-owned gasservice provider. If authorization is withheld, the natural gas utility shallprovide a written justification for the decision to the municipally-owned gasservice provider. Any decision to withhold authorization shall be subject toreview by the Commission upon petition by a customer seeking natural gasservice. Any natural gas utility that provides written permission to amunicipal corporation to provide municipally-owned gas service within aterritory where it holds a certificate shall provide a written copy of theauthorization to the Commission.

Notwithstanding the foregoing, a municipally-owned gas service provider shallnot be required to obtain consent to i) provide natural gas service tofacilities or property owned in whole or in part by the municipalcorporation, or ii) install lines that serve only a single residentialcustomer.

A municipally-owned gas service provider which fails to comply with thissubsection shall be subject to relief in a court having competentjurisdiction. Nothing herein shall authorize the Commission to imposepenalties or fines on any municipal corporation.

Any fully constructed and operational municipally-owned gas service system inplace as of April 8, 2009, shall be exempt from the requirements of thissubsection.

H. The Commission is authorized to promulgate any rules consistent with andnecessary to implement this section other than subsection G.

I. The provision of non-utility gas service without complying with subsectionB shall be punishable by a penalty of up to $500 per day to be imposed andcollected by the Commission, in addition to any injunctive or othernon-monetary penalties provided by law.

(2009, c. 794.)

State Codes and Statutes

Statutes > Virginia > Title-56 > Chapter-10-1 > 56-265-4-6

§ 56-265.4:6. Furnishing non-utility gas service.

A. In this section the following terms shall have the following meanings:

"Affiliated interest" shall have the same meaning as set forth in § 56-76and shall be applied in this statute to non-utility gas service providers.

"Commercial customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a nonresidential customer under theapplicable natural gas utility's tariff.

"Municipally-owned gas service" means the sale and distribution of naturalgas by a municipal corporation that has the authority to provide natural gasdistribution service through the provisions of its charter.

"Natural gas line" means a distribution or transmission pipeline owned andoperated by the natural gas utility and subject to the jurisdiction of theCommission but excluding such lines that serve only a single residence orretail establishment.

"Natural gas utility" or "utility" means an investor-owned public servicecompany engaged in the business of furnishing natural gas service to thepublic and which is regulated as to rates and service pursuant to this title.

"Non-utility gas service" means the sale and distribution of propane,propane-air mixtures, or other natural or manufactured gas to two or morecustomers by way of underground or aboveground distribution lines by a personother than a natural gas utility or an affiliated interest of a natural gasutility, master meter operator, or any person operating in compliance with §56-1.2.

"Non-utility gas service provider" means a person, other than a natural gasutility, providing non-utility gas service.

"Person" means any individual, corporation, partnership, association,company, business trust, joint venture or other private legal entity.

"Pipeline safety standards" means all gas pipeline safety requirementsestablished pursuant to § 56-257.2.

"Residential customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a residential customer under theapplicable natural gas utility's tariff.

B. A person, individually or together with its affiliated interests, otherthan the natural gas utility that holds the certificate to provide naturalgas service in a particular territory or one of its affiliated interests,shall apply to the Commission for and obtain approval prior to providingnon-utility gas service to:

1. Two or more residential or commercial customers located one-half mile orless from any existing underground natural gas line operated by a utilityunder the jurisdiction of the Commission;

2. More than 10 residential or two commercial customers located more thanone-half mile but within one mile or less from any existing undergroundnatural gas line operated by a utility under the jurisdiction of theCommission;

3. More than 20 residential or five commercial customers located more thanone mile but within three miles or less from any existing underground naturalgas line operated by a utility under the jurisdiction of the Commission; or

4. More than 50 residential or 10 commercial customers located more thanthree miles but no more than five miles from an existing underground naturalgas line operated by a utility under the jurisdiction of the Commission.

Approval of any application to provide non-utility gas service pursuant tothis section shall be granted by the Commission only after opportunity for ahearing and after due notice to the natural gas utility that holds thecertificate to provide service in the defined geographic area proposed to beserved. The Commission shall approve an application to provide non-utilitygas service upon finding that: (i) the natural gas utility that holds thecertificate to provide natural gas service in the defined geographic areaproposed to be served is not currently offering service to the area desiredfor non-utility gas service and is unable to extend natural gas utilityservice to the requested area within a reasonable period of time; and (ii)the provision of non-utility gas service in the defined geographic areaproposed to be served, and to the estimated number of customers defined inthe application, is in the public interest.

Any order approving an application to provide non-utility gas servicepursuant to this section shall define the geographic area to be covered andthe maximum number of customers to whom the non-utility gas service providercan provide service before having to apply to the Commission for a revisedorder. The order approving an application to provide non-utility gas serviceshall also provide for compliance with all pipeline safety standards;however, nothing in the order shall authorize the Commission to exercisejurisdiction over the rates, charges, or services being offered inconjunction with non-utility gas service by a non-utility gas serviceprovider. Further, except as provided in this section, approval of anapplication to provide non-utility gas service shall not infringe upon ordiminish the rights of the natural gas utility that holds the certificate toprovide natural gas service in the specified area.

Any fully constructed and operational non-utility gas service system as ofApril 8, 2009, shall be exempt from the requirements of this subsection.

C. A non-utility gas service provider shall comply with the provisions ofsubsection B if any proposed new customers (i) are located in or are adjacentto a residential subdivision, commercial or mixed-use development, currentlybeing provided non-utility gas service by that non-utility gas serviceprovider and (ii) the number of such new customers, when added to the numberof then existing customers of such non-utility gas service provider,individually or together with its affiliated interests, located in theadjacent residential subdivision, commercial or mixed-use development, wouldexceed the threshold number of customers for any of the geographical areasdescribed in subsection B.

D. In any instance in which customers proposed to be served by a non-utilitygas service provider, individually or together with its affiliated interests,are in the same residential subdivision, commercial or mixed-use development,or any phase thereof, and that residential subdivision, commercial or mixeduse development, including all parts and phases thereof, straddles any of thedistance thresholds set forth in subsection B, then all of the customers inall parts and phases of such residential subdivision, commercial or mixed-usedevelopment shall be deemed to be within the distance from the undergroundnatural gas line operated by a utility under the jurisdiction of theCommission applicable to the customer located in such residentialsubdivision, commercial or mixed-use development that is located closest tosuch underground natural gas line operated by a utility under thejurisdiction of the Commission.

E. The distance threshold set forth in subsection B shall be measured in alinear manner and shall be based upon the underground natural gas linesoperated by a utility under the jurisdiction of the Commission that are inexistence at the time the non-utility gas service provider applies forCommission approval pursuant to subsection B, if applicable, or at the timethe non-utility gas service provider applies for the initial local governmentapproval necessary to construct its distribution lines required to serve theproposed new customers, whichever is earlier.

F. All non-utility gas service providers shall provide notice to theCommission of any and all non-utility gas service that is subject to pipelinesafety standards and is being provided to two or more customers in theCommonwealth and shall provide notice of the construction of new non-utilitygas service to the Commission no later than 30 days prior to commencingconstruction of such system. Any non-utility gas service provider that isrequired to provide such notice shall be subject to the jurisdiction of theCommission for the purpose of ensuring compliance with the pipeline safetystandards and subject to any penalties that may be applicable under §56-257.2. Upon request of the Commission, the non-utility gas serviceprovider shall provide, within 30 days of such request, documentation to showcompliance with the requirements of the pipeline safety standards.

G. Any municipal corporation that provides municipally-owned gas service toresidential or commercial customers located within an area where a naturalgas utility holds a certificate to provide service, must have writtenauthorization from that certificate holder to provide such service whichauthorization shall not be unreasonably withheld. The written authorizationshall define the geographic area to be served by the municipally-owned gasservice provider. If authorization is withheld, the natural gas utility shallprovide a written justification for the decision to the municipally-owned gasservice provider. Any decision to withhold authorization shall be subject toreview by the Commission upon petition by a customer seeking natural gasservice. Any natural gas utility that provides written permission to amunicipal corporation to provide municipally-owned gas service within aterritory where it holds a certificate shall provide a written copy of theauthorization to the Commission.

Notwithstanding the foregoing, a municipally-owned gas service provider shallnot be required to obtain consent to i) provide natural gas service tofacilities or property owned in whole or in part by the municipalcorporation, or ii) install lines that serve only a single residentialcustomer.

A municipally-owned gas service provider which fails to comply with thissubsection shall be subject to relief in a court having competentjurisdiction. Nothing herein shall authorize the Commission to imposepenalties or fines on any municipal corporation.

Any fully constructed and operational municipally-owned gas service system inplace as of April 8, 2009, shall be exempt from the requirements of thissubsection.

H. The Commission is authorized to promulgate any rules consistent with andnecessary to implement this section other than subsection G.

I. The provision of non-utility gas service without complying with subsectionB shall be punishable by a penalty of up to $500 per day to be imposed andcollected by the Commission, in addition to any injunctive or othernon-monetary penalties provided by law.

(2009, c. 794.)


State Codes and Statutes

State Codes and Statutes

Statutes > Virginia > Title-56 > Chapter-10-1 > 56-265-4-6

§ 56-265.4:6. Furnishing non-utility gas service.

A. In this section the following terms shall have the following meanings:

"Affiliated interest" shall have the same meaning as set forth in § 56-76and shall be applied in this statute to non-utility gas service providers.

"Commercial customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a nonresidential customer under theapplicable natural gas utility's tariff.

"Municipally-owned gas service" means the sale and distribution of naturalgas by a municipal corporation that has the authority to provide natural gasdistribution service through the provisions of its charter.

"Natural gas line" means a distribution or transmission pipeline owned andoperated by the natural gas utility and subject to the jurisdiction of theCommission but excluding such lines that serve only a single residence orretail establishment.

"Natural gas utility" or "utility" means an investor-owned public servicecompany engaged in the business of furnishing natural gas service to thepublic and which is regulated as to rates and service pursuant to this title.

"Non-utility gas service" means the sale and distribution of propane,propane-air mixtures, or other natural or manufactured gas to two or morecustomers by way of underground or aboveground distribution lines by a personother than a natural gas utility or an affiliated interest of a natural gasutility, master meter operator, or any person operating in compliance with §56-1.2.

"Non-utility gas service provider" means a person, other than a natural gasutility, providing non-utility gas service.

"Person" means any individual, corporation, partnership, association,company, business trust, joint venture or other private legal entity.

"Pipeline safety standards" means all gas pipeline safety requirementsestablished pursuant to § 56-257.2.

"Residential customer" means any person that purchases non-utility gasservice for its own consumption at one or more metering points or nonmeteredpoints of delivery located in the Commonwealth and who if served by a naturalgas utility would be classified as a residential customer under theapplicable natural gas utility's tariff.

B. A person, individually or together with its affiliated interests, otherthan the natural gas utility that holds the certificate to provide naturalgas service in a particular territory or one of its affiliated interests,shall apply to the Commission for and obtain approval prior to providingnon-utility gas service to:

1. Two or more residential or commercial customers located one-half mile orless from any existing underground natural gas line operated by a utilityunder the jurisdiction of the Commission;

2. More than 10 residential or two commercial customers located more thanone-half mile but within one mile or less from any existing undergroundnatural gas line operated by a utility under the jurisdiction of theCommission;

3. More than 20 residential or five commercial customers located more thanone mile but within three miles or less from any existing underground naturalgas line operated by a utility under the jurisdiction of the Commission; or

4. More than 50 residential or 10 commercial customers located more thanthree miles but no more than five miles from an existing underground naturalgas line operated by a utility under the jurisdiction of the Commission.

Approval of any application to provide non-utility gas service pursuant tothis section shall be granted by the Commission only after opportunity for ahearing and after due notice to the natural gas utility that holds thecertificate to provide service in the defined geographic area proposed to beserved. The Commission shall approve an application to provide non-utilitygas service upon finding that: (i) the natural gas utility that holds thecertificate to provide natural gas service in the defined geographic areaproposed to be served is not currently offering service to the area desiredfor non-utility gas service and is unable to extend natural gas utilityservice to the requested area within a reasonable period of time; and (ii)the provision of non-utility gas service in the defined geographic areaproposed to be served, and to the estimated number of customers defined inthe application, is in the public interest.

Any order approving an application to provide non-utility gas servicepursuant to this section shall define the geographic area to be covered andthe maximum number of customers to whom the non-utility gas service providercan provide service before having to apply to the Commission for a revisedorder. The order approving an application to provide non-utility gas serviceshall also provide for compliance with all pipeline safety standards;however, nothing in the order shall authorize the Commission to exercisejurisdiction over the rates, charges, or services being offered inconjunction with non-utility gas service by a non-utility gas serviceprovider. Further, except as provided in this section, approval of anapplication to provide non-utility gas service shall not infringe upon ordiminish the rights of the natural gas utility that holds the certificate toprovide natural gas service in the specified area.

Any fully constructed and operational non-utility gas service system as ofApril 8, 2009, shall be exempt from the requirements of this subsection.

C. A non-utility gas service provider shall comply with the provisions ofsubsection B if any proposed new customers (i) are located in or are adjacentto a residential subdivision, commercial or mixed-use development, currentlybeing provided non-utility gas service by that non-utility gas serviceprovider and (ii) the number of such new customers, when added to the numberof then existing customers of such non-utility gas service provider,individually or together with its affiliated interests, located in theadjacent residential subdivision, commercial or mixed-use development, wouldexceed the threshold number of customers for any of the geographical areasdescribed in subsection B.

D. In any instance in which customers proposed to be served by a non-utilitygas service provider, individually or together with its affiliated interests,are in the same residential subdivision, commercial or mixed-use development,or any phase thereof, and that residential subdivision, commercial or mixeduse development, including all parts and phases thereof, straddles any of thedistance thresholds set forth in subsection B, then all of the customers inall parts and phases of such residential subdivision, commercial or mixed-usedevelopment shall be deemed to be within the distance from the undergroundnatural gas line operated by a utility under the jurisdiction of theCommission applicable to the customer located in such residentialsubdivision, commercial or mixed-use development that is located closest tosuch underground natural gas line operated by a utility under thejurisdiction of the Commission.

E. The distance threshold set forth in subsection B shall be measured in alinear manner and shall be based upon the underground natural gas linesoperated by a utility under the jurisdiction of the Commission that are inexistence at the time the non-utility gas service provider applies forCommission approval pursuant to subsection B, if applicable, or at the timethe non-utility gas service provider applies for the initial local governmentapproval necessary to construct its distribution lines required to serve theproposed new customers, whichever is earlier.

F. All non-utility gas service providers shall provide notice to theCommission of any and all non-utility gas service that is subject to pipelinesafety standards and is being provided to two or more customers in theCommonwealth and shall provide notice of the construction of new non-utilitygas service to the Commission no later than 30 days prior to commencingconstruction of such system. Any non-utility gas service provider that isrequired to provide such notice shall be subject to the jurisdiction of theCommission for the purpose of ensuring compliance with the pipeline safetystandards and subject to any penalties that may be applicable under §56-257.2. Upon request of the Commission, the non-utility gas serviceprovider shall provide, within 30 days of such request, documentation to showcompliance with the requirements of the pipeline safety standards.

G. Any municipal corporation that provides municipally-owned gas service toresidential or commercial customers located within an area where a naturalgas utility holds a certificate to provide service, must have writtenauthorization from that certificate holder to provide such service whichauthorization shall not be unreasonably withheld. The written authorizationshall define the geographic area to be served by the municipally-owned gasservice provider. If authorization is withheld, the natural gas utility shallprovide a written justification for the decision to the municipally-owned gasservice provider. Any decision to withhold authorization shall be subject toreview by the Commission upon petition by a customer seeking natural gasservice. Any natural gas utility that provides written permission to amunicipal corporation to provide municipally-owned gas service within aterritory where it holds a certificate shall provide a written copy of theauthorization to the Commission.

Notwithstanding the foregoing, a municipally-owned gas service provider shallnot be required to obtain consent to i) provide natural gas service tofacilities or property owned in whole or in part by the municipalcorporation, or ii) install lines that serve only a single residentialcustomer.

A municipally-owned gas service provider which fails to comply with thissubsection shall be subject to relief in a court having competentjurisdiction. Nothing herein shall authorize the Commission to imposepenalties or fines on any municipal corporation.

Any fully constructed and operational municipally-owned gas service system inplace as of April 8, 2009, shall be exempt from the requirements of thissubsection.

H. The Commission is authorized to promulgate any rules consistent with andnecessary to implement this section other than subsection G.

I. The provision of non-utility gas service without complying with subsectionB shall be punishable by a penalty of up to $500 per day to be imposed andcollected by the Commission, in addition to any injunctive or othernon-monetary penalties provided by law.

(2009, c. 794.)