R7-38     NOTIFICATION OF CONTIGUOUS EXTENSION

(a)  At least 30 days prior to constructing, acquiring, or beginning the operation of any public utility plant or equipment capable of providing water utility service to customers in territory contiguous to that already occupied, for which, by virtue of its contiguity, no certificate of public convenience and necessity is required, a public utility shall provide written notice to the Commission of its intention to construct, acquire, or begin operation of such plant.  The notice shall be in a form approved by the Commission and shall identify the area to be served by the extension.

(b)  For purposes of this Rule, the phrase "territory contiguous to that already occupied'' shall mean territory that is immediately adjacent.  In order to be immediately adjacent, the territory must share a significant common boundary line with that already occupied.  There may be a geographic feature such as a roadway or stream along this boundary line, but there must not be any intervening land or any substantial body of water.  The territory must be immediately adjacent to territory that is already occupied by the water utility.  A water utility occupies a territory by the presence of its plant in the territory.  A contiguous extension may not be made across unoccupied territory that will not be served by the extension, whether franchised to the utility or not.

(NCUC Docket No. W-100, Sub 17, 2/28/95.)