Opinion ID: 6109741
Heading Depth: 2
Heading Rank: 1

Heading: The Legislature Has Provided Two Types of CCNs

Text: Grain Belt argues the Commission erred in denying its application for a line CCN based on ATXI . Before addressing this argument, a review of the statute creating CCNs is helpful. Section 393.170 sets out two types of CCNs the Commission may grant a utility. These types are provided for in separate subsections of section 393.170 and are commonly referred to as  line certificates and  area certificates. See, e.g. , State ex rel. Cass Cty. v. Pub. Serv. Comm'n , 259 S.W.3d 544 , 548-49 (Mo. App. 2008). Section 393.170.1 grants the Commission the authority to issue a line CCN to a utility to construct electrical plants. Subsection 1 provides: No gas corporation, electrical corporation, water corporation or sewer corporation shall begin construction of a gas plant, electric plant, water system or sewer system without first having obtained the permission and approval of the commission. Sec. 393.170.1. The Commission's grant of a line CCN does not require prior consent from affected counties. Section 393.170.2 grants the Commission the authority to issue an area CCN for the utility to exercise a franchise and provide retail utility service to a geographic territory. See, e.g. , Cass Cty. , 259 S.W.3d at 549 . Subsection 2 provides: 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 the permission and approval of 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. Sec. 393.170.2 (emphasis added). Subsection 2 requires prior consent from would-be affected counties before the Commission can grant approval. The legislature's intent to distinguish between the two types of CCNs is further evidenced in subsection 3 of the statute, promulgated regulations, and case law. Section 393.170.3 uses the disjunctive or when referencing the Commission's power to grant a line or area CCN. Subsection 3 provides, in relevant part, The commission shall have the 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 necessary or convenient for the public service. Sec. 393.170.3 (emphasis added). In addition, the distinction between the two types of CCNs provided for in subsections 1 and 2 of 393.170 is apparent in the different filing requirements as found in rules promulgated by the Commission. 4 CSR 240-2.060 contains the general requirements for applications to the Commission. These requirements, however, are qualified by 4 CSR 240-3.105, which contains the specific filing requirements for CCN applications. 4 CSR 240-3.105(1)(A) sets forth the requirements for an area CCN application under section 393.170.2. 4 CSR 240-3.105(1)(B), on the other hand, contains separate filing requirements for a line CCN application under section 393.170.1. 2 Case law also has repeatedly recognized section 393.170 as providing for two types of CCNs. See, e.g. , Cass Cty. , 259 S.W.3d at 548-49 (The permission and approval that may be granted pursuant to section 393.170 is of two types: [The Commission] may grant CCNs for the construction of power plants, as described in subsection 1, or for the exercise of rights and privileges under a franchise, as described in subsection 2.); StopAquila.Org v. Aquila, Inc. , 180 S.W.3d 24 , 33 (Mo. App. 2005) (noting there is a difference between the Commission's grant of authority to construct utility lines and the Commission's grant of authority to service a territory); State ex rel. Union Elec. Co. v. Pub. Serv. Comm'n of State of Mo. , 770 S.W.2d 283 , 285-86 (Mo. App. 1989) (Two types of certificate authority are contemplated in [section 393.170].); State ex rel. Harline v. Pub. Serv. Comm'n of Mo. , 343 S.W.2d 177 , 185 (Mo. App. 1960) (Certificate 'authority' is of two kinds and emanates from two classified sources. Sub-section 1 requires 'authority' to construct an electric plant. Sub-section 2 requires 'authority' for an established company to serve a territory by means of an existing plant.). The Commission erred in holding that prior county consent was necessary before it could approve Grain Belt's application for a line CCN by erroneously analyzing this case under the area CCN subsection.