Mich. Comp. Laws » Michigan Compiled Laws / Chapter 460 / Act 69 of 1929
Michigan Compiled Laws

Mich. Comp. Laws § 460.502 (2026)

Certificate of convenience; necessity for gas or electric utilities.

✓ current as of July 2026
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CERTIFICATE OF CONVENIENCE AND NECESSITY


Act 69 of 1929


460.502 Certificate of convenience; necessity for gas or electric utilities.

Sec. 2.

    No public utility shall hereafter begin the construction or operation of any public utility plant or system thereof nor shall it render any service for the purpose of transacting or carrying on a local business either directly, or indirectly, by serving any other utility or agency so engaged in such local business, in any municipality in this state where any other utility or agency is then engaged in such local business and rendering the same sort of service, or where such municipality is receiving service of the same sort, until such public utility shall first obtain from the commission a certificate that public convenience and necessity requires or will require such construction, operation, service, or extension.

History: 1929, Act 69, Imd. Eff. Apr. 23, 1929 ;-- CL 1929, 11088 ;-- CL 1948, 460.502

Notes of Decisions
Cited in 10 cases, 1951–2006 · leading case: Panhandle E. Pipe Line Co. v. Michigan Pub. Serv. Comm'n, 44 N.W.2d 324 (Mich. 1951).
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Panhandle E. Pipe Line Co. v. Michigan Pub. Serv. Comm'n, 44 N.W.2d 324 (Mich. 1951). · cites it 6× “" Section 2 of PA 1929, No 69 (CL 1948, § 460.502 [Stat Ann § 22.142]), under which the Michigan public service commission assumed jurisdiction to make said order, provides: "No public utility shall hereafter * * * render any service for the purpose of transacting or carrying on…”
City of Marshall v. Consumers Power Co., 523 N.W.2d 483 (Mich. Ct. App. 1994). · cites it 6× “The language of Act 69, § 2, MCL 460.502; MSA 22.142, which speaks of a utility beginning construction of a plant or system, indicates that a utility that commences operation in a municipality after April 23, 1929, the effective date of the act, must first obtain a cpcn.”
Attorney Gen. v. Michigan Pub. Serv. Comm'n, 316 N.W.2d 187 (Mich. 1982). “MCL 460.502; MSA 22.142. Such a requirement seeks to avoid unnecessary multiplication of companies and wasteful duplication of facilities.”
Midwest Energy Coop. v. Pub. Serv. Comm'n, 708 N.W.2d 147 (Mich. Ct. App. 2006). “3411 (Rule 411) by providing electric service to a development in Vicksburg where appellee Indiana Michigan Power (I&M) 1 was entitled to operate and violated MCL 460.502 2 by doing so without having obtained a certifi *523 cate of public convenience and necessity.”
Huron Portland Cement Co. v. Pub. Serv. Comm'n, 88 N.W.2d 492 (Mich. 1958). “The statute involved is section 2 of PA 1929, No 69 (CL 1948, § 460.502 [Stat Ann § 22.142]), reading as follows: ■ .”
Nat'l Steel Corp. v. Long, 689 F. Supp. 729 (W.D. Mich. 1988). “§ 460.502, M.S.A. § 22.142. 2 . It is true that in both cases, the court buttressed its application of the Act’s bright line by discussing the importance of the local interests as justification for finding state authority even if Congress had not so clearly spoken.”
Nat'l Steel Corp. v. Long, 718 F. Supp. 622 (W.D. Mich. 1989). “Under § 2 of Act 69 of the Michigan Public Acts of 1929, (“Act 69”), a public utility such as Dome Pipeline, must obtain a certificate of public convenience and necessity from the MPSC before commencing construction or operation of a public utility plant or system or before…”
Cantor v. Detroit Edison Co., 392 F. Supp. 1110 (E.D. Mich. 1974). “§ 460.502 et seq. provides that any utility seeking to introduce new services or facilities in an area already served must first obtain a certificate of public convenience and necessity.”
In Re Retail Wheeling Tariffs, 575 N.W.2d 808 (Mich. Ct. App. 1998). · cites it 2× “Furthermore, Dow and abate contend that a third-party provider need not obtain a franchise from a municipality in which its retail customer or affiliated entity is located, because a third party’s sale of power to a customer located in a host utility’s service area does not…”
Nat'l Steel Corp. v. Pub. Serv. Comm'n, 516 N.W.2d 139 (Mich. Ct. App. 1994). “[MCL 460.502; MSA 22.142.] Act 69, § 1 defines "public utility”: The term "public utility,” when used in this act, means persons and corporations, other than municipal corporations, or their lessees, trustees and *635 receivers now or hereafter owning or operating in this state…”
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