N.Y. Public Service Law § 68: Certificate of public convenience and necessity

§ 68. Certificate of public convenience and necessity. 1. Certificate

required. No gas corporation or electric corporation shall begin

construction of a gas plant or electric plant without first having

obtained the permission and approval of the commission. No such

corporation shall exercise any right or privilege under any franchise

hereafter granted, or under any franchise heretofore granted but not

heretofore actually exercised, or the exercise of which shall have been

suspended for more than one year, without first having obtained a

certificate of public convenience and necessity issued by the

commission. Before such certificate shall be issued a certified copy of

the charter of such corporation shall be filed in the office of the

commission, together with a verified statement of the president and

secretary of the corporation, showing that it has received the required

consent of the proper municipal authorities. The commission shall have

power to grant the permission and approval herein specified whenever it

shall after due hearing determine that such construction or such

exercise of the right, privilege or franchise is convenient and

necessary for the public service. In making such a determination, the

commission shall consider the economic feasibility of the corporation,

the corporation's ability to finance improvements of a gas plant or

electric plant, render safe, adequate and reliable service, and provide

just and reasonable rates, and whether issuance of a certificate is in

the public interest. Except as provided in article fourteen-A of the

general municipal law, no municipality shall build, maintain and operate

for other than municipal purposes any works or systems for the

manufacture and supplying of gas or electricity for lighting purposes

without a certificate of authority granted by the commission. If the

certificate of authority is refused, no further proceedings shall be

taken by such municipality before the commission, but a new application

may be made therefor after one year from the date of such refusal.

2. Revocation or modification of certificate. The commission may

commence a proceeding, conducted in accordance with the commission's

rules and regulations, to revoke or modify a combined electric and gas

corporation's certificate as it relates to such corporation's service

territory or any portion thereof based on findings of repeated

violations of this chapter or rules or regulations adopted thereto that

demonstrate a failure of such corporation to continue to provide safe

and adequate service. Whenever the commission has reason to believe that

such corporation's certificate may be subject to revocation or

modification, it shall notify such corporation of the facts and nature

of each act or failure to act allegedly warranting such revocation or

modification, and the statute, regulation or order allegedly violated,

and otherwise consider the following factors:

(a) the factors identified in subdivision one of this section for

issuance of a certificate of public convenience and necessity;

(b) whether another person, firm or corporation is qualified,

available, and prepared to provide alternative service that is adequate

to serve the public convenience and necessity, and that the transition

to such alternative person, firm or corporation is in the public

interest; and

(c) upon any other standards and procedures deemed necessary by the

commission to ensure continuity of safe and adequate service, and due

process.