New York Public Service Law
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 corporations 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 commissions rules and regulations, to revoke or modify a combined electric and gas corporations certificate as it relates to such corporations 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 corporations 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.