§ 8-1-2-87 — Gas utilities; necessity certificates; requirements

(a) When used in this section, unless the
context otherwise requires:
(1) The term "gas" means natural gas, artificial or manufactured
gas, and mixed gas.
(2) The term "necessity certificate" means a certificate of public
convenience and necessity issued by the commission pursuant to
the provisions of this section, which certificate shall be deemed
an indeterminate permit.
(3) The term "rural area" means territory within the state of
Indiana that is outside the corporate limits of a municipality.
(4) The term "gas utility" means and includes any public utility
selling or proposing to sell or furnish gas directly to any consumer
or consumers within the state of Indiana for his, its or their
domestic, commercial, or industrial use.
(5) The term "gas distribution service" means the furnishing or
sale of gas directly to any consumer within the state of Indiana for
his or its domestic, commercial, or industrial use.
(b) It is hereby declared that in order adequately to protect the
public interest in the distribution of gas to consumers within the state
of Indiana, it is necessary and desirable that to the extent provided in
this section the holding of necessity certificates should be required as
a condition precedent to the rendering of gas distribution service in
rural areas of the state of Indiana.
(c) After February 26, 1945, no gas utility shall commence the
rendering of gas distribution service in any rural area in the state of
Indiana in which it is not actually rendering gas distribution service on
February 26, 1945, without first obtaining from the commission a
necessity certificate authorizing such gas distribution service, defining
and limiting specifically the rural area covered thereby, and stating that
public convenience and necessity require such gas distribution service
within such rural area by such gas utility; and no gas utility required by
this section to hold a necessity certificate for any rural area shall render
gas distribution service within such a rural area to any extent greater
than that authorized by such necessity certificate or shall continue to
render gas distribution service within such a rural area if and after such
necessity certificate has been revoked or transferred as in this section
provided.
(d) Whenever any gas utility proposes to commence the rendering
of gas distribution service in any rural area in which it is not actually
rendering such service on February 26, 1945, it shall file with the
commission a verified application for a necessity certificate covering
such service by it. The commission shall, by regulations, prescribe the
form of application and such application shall conform to such
prescribed form. Within a reasonable time after the filing of any such
application, the commission shall fix a time and place for a public
hearing thereon. Notice of such hearing shall be given in such manner
and to such persons as is from time to time required by law or by the
regulations of the commission. Such hearing shall be held in the
manner prescribed for a hearing in sections 54 through 67 of this
chapter, and the provisions of such sections so far as applicable shall
apply to such hearing. Any person interested in such proceedings,
including without limiting the generality of the foregoing any gas utility
rendering gas distribution service within the general service area
(including territory within and without municipalities) of which the
rural area covered by the application may reasonably be deemed a part,
shall be permitted to appear either in person or by attorney and offer
evidence in support of or opposition to the application. The applicant
shall, at all times, have the burden of proving by evidence each of the
matters specified in this subsection as necessary to be found by the
commission before a necessity certificate shall be issued by it. If the
commission shall find from the evidence, including such evidence, if
any, as the commission may cause to be introduced as a result of any
investigation which it may have made relative to the matter, that the
applicant therefor has lawful power and authority to obtain such
necessity certificate and to render the proposed gas distribution service
if it obtains such certificate, that he or it has the financial ability to
provide the proposed gas distribution service, that public conveyance
and necessity require the rendering of the proposed gas distribution
service, and that the public interest will be served by the issuance of
the necessity certificate to him or it, the application shall be granted,
subject to such terms, restrictions, and limitations as the commission
shall determine to be necessary and desirable in the public interest;
otherwise the application shall be denied.
(e) Upon approval by the commission given after notice and public
hearing given and held in the manner provided for in subsection (d) in
cases of applications for necessity certificates, but not otherwise, any
necessity certificate may:
(1) be sold, assigned, leased, or transferred by the holder thereof
to any person, firm, or corporation to whom a necessity certificate
might be lawfully issued; or
(2) be included in the property and rights encumbered under any
indenture of mortgage or deed of trust of such holder.
(f) Any necessity certificate may, upon application by the holder to
the commission, be revoked by the commission, in whole or in part,
after notice given and hearing held in the manner provided for in
subsection (d). Any necessity certificate may, after notice given and
hearing held in the manner provided for in subsection (d), be revoked
by the commission, in whole or in part, for the failure of the holder to
comply with any applicable order, rule, or regulation prescribed by the
commission in the exercise of its powers under this chapter, or with any
term, condition, or limitation of such necessity certificate.
Formerly: Acts 1913, c.76, s.97a; Acts 1945, c.53, s.1. As
amended by P.L.59-1984, SEC.39; P.L.8-1993, SEC.112.