CHAPTER 55

FORMERLY

SENATE BILL NO. 52

AS AMENDED BY

SENATE AMENDMENT NO. 1

AND

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE CONCERNING THE CRITERIA TO BE USED BY THE PUBLIC SERVICE COMMISSION FOR GRANTING CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY TO WATER UTILITIES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend § 203C(e), Title 26 of the Delaware Code by deleting the present paragraph (1) in subsection (e) in its entirety and substituting therefore the following paragraph (1):

“(1) Evidence that all landowners of the proposed territory have been notified by certified mail, or its equivalent, of the filing of the application, such evidence consisting of (i) a list provided by the United States Postal service, or the alternate delivery service, of those to whom notice was sent and (ii) copies of all materials returned to sender; and one of the following:

a. A signed service agreement with the developer of a proposed subdivision or development, which subdivision or development has been duly approved by the respective county government;

b. One or more petitions requesting water service from the applicant executed by the landowners of record of each parcel or property to be encompassed within the proposed territory to be served;

c. In the case of an existing development, subdivision, or generally recognized unincorporated community, one or more petitions requesting water service from the applicant executed by the landowners of record of parcels and properties that constitute a majority of the parcels or properties in the existing development, subdivision, or unincorporated community; or

d. A certified copy of a resolution or ordinance from the governing body of a county or municipality that requests, directs, or authorizes the applicant to provide water utility services to the proposed territory to be served, which must be located within the boundary of such county or municipality.”

Section 2. Amend § 203C(i), Title 26 of the Delaware Code by deleting the present subsection (i) in its entirety and substituting therefore the following subsection (i):

“(i) For applications submitted pursuant to subsection (e)(1)b. and (e)(1)c. of this section, any landowner of record whose parcel or property (or any part thereof) is located within the proposed territory to be served shall be entitled to opt-out and have the landowner’s parcel or property excluded from the proposed territory to be served. A request to opt-out shall be submitted by any landowner of record prior to the issuance of a Certificate of Public Convenience and Necessity. In the case of a parcel with multiple landowners of record, a request to opt-out may be rescinded or countermanded by the landowners of record holding, or vested with, a controlling interest in the parcel or property. Notwithstanding the opt-out provision in the preceding sentences, no such opt-out right shall apply to the Town of Dagsboro to implement the results of a special election held on April 27, 2002; that election voted to establish water services by contract with a neighboring municipality that has an established water utility service. Notwithstanding the objection and opt-out provisions contained in this subsection, if the Town Council of the Town of Ocean View adopts a resolution providing for water utility service to its residents and undertakes the construction of such service, the objection and opt-out provisions shall not be available to the residents of the Town of Ocean View.”

Section 3. Amend § 203C(j), Title 26 of the Delaware Code by deleting the present subsection (j) in its entirety and substituting therefore the following paragraph (j):

“(j) For purposes of this section, the phrase “landowner of record” shall mean each person or entity holding a fee ownership interest in a parcel of real property that would be encompassed within the proposed territory to be served. A landowner of record shall be determined as of the time of the filing of the application for a Certificate of Public Convenience and Necessity and may be identified by reference to public tax and public land records or relevant land conveyances. The phrase “landowners of the proposed territory” shall mean the landowners of record of the parcel or parcels to be encompassed within the proposed territory to be served. However, with respect to condominium units, as defined in the Delaware Unit Property Act, Chapter 22 of Title 25, the phrase “landowner of record” and “landowners of the proposed territory” shall be deemed to mean the governing body or authorized officers of any condominium association with authority to act on behalf of unit owners, unless the underlying real property on which such condominium units have been built has been leased, directly or indirectly, to unit owners and the underlying real property owner retains the power to bind the unit owners. A petition from a governing body or authorized officers of a condominium association shall comply with subsection (g)(1).”

Section 5. This Act shall be effective upon enactment and shall apply to any application of a Certificate of Public Convenience and Necessity filed with the Public Service Commission after the date of enactment.

Section 6. Amend § 203C, Title 25 of the Delaware Code by adding thereto the following:

“(n) Notwithstanding anything in this Section to the contrary, the power to grant a certificate of public convenience and necessity pursuant to this Section to a water authority created under Title 16 shall be limited to the boundaries of the municipality(s) which created it unless the Commission is provided with a Resolution passed by the governing body of that municipality(s) which requests that the certificate be granted.”.

Approved June 28, 2007