Bill Text: AZ HB2198 | 2014 | Fifty-first Legislature 2nd Regular | Introduced
Bill Title: Certificates of convenience and necessity
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-29 - Referred to House FFR Committee [HB2198 Detail]
Download: Arizona-2014-HB2198-Introduced.html
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REFERENCE TITLE: certificates of convenience and necessity |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HB 2198 |
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Introduced by Representative Farnsworth E
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AN ACT
Amending section 40‑281, Arizona Revised Statutes; Amending title 40, chapter 2, article 4, Arizona Revised Statutes, by adding section 40-288; relating to certificates of public convenience and necessity.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 40-281, Arizona Revised Statutes, is amended to read:
40-281. Certificate required before construction by public service corporation; exceptions; complaint by corporation injuriously affected by construction hearing; exclusive franchise or monopoly
A. Except as provided in section 40‑288, a public service corporation, other than a railroad, shall not begin construction of a street railroad, a line, plant, service or system, or any extension thereof, without first having obtained from the commission a certificate of public convenience and necessity.
B. This section shall not require such corporation to secure a certificate for an extension within a city, county or town within which it has lawfully commenced operations, or for an extension into territory either within or without a city, county or town, contiguous to its street railroad or line, plant or system, and not served by a public service corporation of like character, or for an extension within or to territory already served by it, necessary in the ordinary course of its business. If a public service corporation, in constructing or extending its line, plant or system, interferes or is about to interfere with the operation of the line, plant or system of any other public service corporation already constructed, the commission, on complaint of the corporation claiming to be injuriously affected, may, after hearing, make an order and prescribe terms and conditions for the location of lines, plants or systems affected as it deems just and reasonable.
C. Except as provided in section 40‑288, no such corporation shall exercise any right or privilege under any franchise or permit without first having obtained from the commission a certificate of public convenience and necessity.
D. This article shall not be construed as granting or as having granted to any telecommunications corporation an exclusive franchise or monopoly within the territory described by its certificate unless the commission determines after notice and hearing that such an exclusive franchise or monopoly is in the public interest.
E. When the commission determines after notice and hearing that any product or service of a telecommunications corporation is neither essential nor integral to the public service rendered by such corporation, it shall declare that such product or service is not subject to regulation by the commission.
Sec. 2. Title 40, chapter 2, article 4, Arizona Revised Statutes, is amended by adding section 40-288, to read:
40-288. Certificate of public convenience and necessity; applicability; fit, willing and able standard; definition
A. Notwithstanding any law to the contrary, any entity or public service corporation proposing to provide electrical service to willing purchasers, without using infrastructure owned by a distinct public service corporation or municipality, may construct an electrical line, plant, service or system, or any extension thereof, in this state without a certificate of public convenience and necessity from the commission or any other state agency or political subdivision of this state if the entity or public service corporation is fit, willing and able to furnish the electrical service. Any entity or public service corporation furnishing electrical services authorized by this section is entitled to conduct any such operation that otherwise would have been authorized if the entity or public service corporation possessed the requisite certificate of public convenience and necessity.
B. If an entity or a public service corporation furnishes electrical services authorized by this section without being fit, willing and able to do so, the entity or public service corporation is liable for all consequential damages resulting therefrom and the attorney general may initiate a civil action to enjoin the operations of the entity or public service corporation.
C. The commission may issue rules establishing clear and objective standards for determining whether an entity or a public service corporation authorized to provide electrical service under this section is fit, willing and able to furnish the electrical service.
D. An entity or a public service corporation authorized to provide electrical services pursuant to this section shall comply with article 6.2 of this chapter relating to power plant and transmission line siting.
E. For the purposes of this section, "fit, willing and able" means the entity or public service corporation both:
1. Has the financial and technical ability to perform the service it seeks to provide.
2. Is willing to perform properly and safely the proposed service according to generally applicable laws unrelated to enforcing restrictions on competition.
