Legal Definitions - certificate of public convenience and necessity

Definition: A certificate of public convenience and necessity is a legal document that grants permission to a company or individual to provide a certain service or operate in a certain area. It is issued by a regulatory agency, such as a state or federal government, and is based on the agency's determination that the service or operation is necessary and in the public interest.

Example: A company wants to build a new power plant in a certain area. Before it can begin construction, it must apply for a certificate of public convenience and necessity from the state's regulatory agency. The agency will review the application and determine whether the power plant is necessary to meet the area's energy needs and whether it will be in the public interest to allow the company to operate the plant.

Explanation: This example illustrates how a certificate of public convenience and necessity is used to regulate the provision of services and operations that have an impact on the public. The regulatory agency must consider factors such as the need for the service or operation, its potential impact on the environment and public health, and the interests of the community before granting the certificate. This helps to ensure that the service or operation is provided in a safe and responsible manner that benefits the public.