# Title 49 — Public Utilities

## Chapter 49-02 — Powers of Commission Generally

### § 49-02-01. General jurisdiction of the public service commission over public utilities.

The general jurisdiction of the commission shall extend to and include:
1. Contract and common carriers engaged in the transportation of persons and property,
excluding air carriers.
2. Telecommunications companies engaged in the furnishing of telecommunications
services as provided for in chapter 49-21.
3. Pipeline utilities engaged in the transportation of gas, oil, coal, and water.
4. Electric utilities engaged in the generation and distribution of light, heat, or power.
5. Gas utilities engaged in the distribution of natural, synthetic, or artificial gas.
6. All heating utilities engaged in the distribution of heat.
7. All other public utilities engaged in business in this state or in any county, city,
township, or other political subdivision of the state.
### § 49-02-01.1. Jurisdiction of commission limited as to certain utilities - Exemption.

1. Nothing in this chapter or in chapter 49-21 authorizes the commission to make any
order affecting rates, contracts, services rendered, adequacy, or sufficiency of
facilities, or the rules or regulations of any public utility owned and operated by the
state or by any city, county, township, or other political subdivision of the state or a
public utility, that is not operated for profit, that is operated as a nonprofit, cooperative,
or mutual telecommunications company or is a telecommunications company having
fewer than eighteen thousand local exchange subscribers. However, a
telecommunications utility that is operated as a nonprofit, cooperative, or mutual
telecommunications company or has fewer than eighteen thousand local exchange
subscribers is subject to sections 49-21-01.4, 49-21-02.4, 49-21-23, 49-21-24, and
49-21-25, subsections 6 through 14 of section 49-21-01.7, and to sections 49-21-01.2,
49-21-01.3, 49-21-06, 49-21-07, 49-21-09, and 49-21-10, regarding rates, terms, and
conditions of access services or connection between facilities and transfer of
telecommunications between two or more telecommunications companies. Nothing in
this section limits the authority of the commission granted under chapters 49-03 and
49-03.1 or sections 49-04-05 and 49-04-06.
2. Upon receipt of a resolution from the governing body of a city not served on August 1,
2017, with natural gas distribution service from a public utility requesting an
exemption, and stating its reasons for doing so, the commission shall grant the public
utility an exemption from sections 49-02-03, 49-02-11, and 49-02-15, and chapters
49-03.1 and 49-04 if the public utility:
a. Has a franchise to supply customers within the city and the area of the
extraterritorial zoning jurisdiction of the city with natural gas distribution service;
b. Consents to the exemption; and
c. Serves no more than two thousand five hundred customers within the city and the
area of the extraterritorial zoning jurisdiction of the city.
3. Upon approval of the exemption, the rates, contracts, or services rendered by the
public utility within the exempted area are subject to regulation by the city.
4. Notwithstanding an exemption granted under this section, the public utility remains
subject to any rules of the commission governing customer service disconnections,
and resale of natural gas service furnished or causing the resale of natural gas service
by any customer is prohibited.
5. If a city files with the commission a resolution of its governing body rescinding the
request for exemption, if the public utility serves more than two thousand five hundred
customers within the city and the area of the city's extraterritorial zoning jurisdiction, or
if the public utility requests rescinding the exemption for good cause, the commission
may rescind the exemption granted under this section. The commission may require a
public utility providing nonexempt natural gas distribution service to provide any
exempted natural gas distribution service as a separate business entity.

6. Equipment covered by this section must be installed and maintained in compliance
with the instructions provided by the manufacturer of any previously installed
equipment to which it will be added. Appliances designed to use only a specific fuel
may not be converted to use a different fuel if the manufacturer has prohibited the
conversions.
### § 49-02-01.2. Pipeline safety - Public service commission jurisdiction - Hazardous

facility orders.
1. The commission, by rule, may establish and enforce minimum safety standards for the
design, construction, and operation of gas distribution facilities and intrastate pipeline
facilities used for the distribution and intrastate transportation of gas, liquefied natural
gas, or hazardous liquids, regardless of whether they are owned or operated by a
public utility, in order to ensure the reasonable safety thereof. Any rule issued under
this section affecting the design, installation, construction, initial inspection, and initial
testing is not applicable to pipeline facilities in existence on the date such rule is
adopted. Such rules may not be more stringent than the corresponding federal
regulations applicable to interstate pipelines and related facilities.
2. If the commission determines that a pipeline facility is hazardous to life or property, it
may issue an order requiring the operator of the facility to take corrective action. The
commission may issue such an order without notice and opportunity for hearing if the
commission determines that to do otherwise would result in the likelihood of serious
harm to life or property. The commission shall include in such an order an opportunity
for hearing as soon as practicable after issuance of the order.
### § 49-02-02. Powers of public service commission with reference to public utilities.

The commission shall have power to:
1. Investigate all methods and practices of public utilities or other persons, subject to the
provisions of this title.
2. Require public utilities or other persons to conform to the laws of this state and to all
rules, regulations, and orders of the commission not contrary to law.
3. Require copies of reports, rates, classifications, schedules, and timetables in effect
and used by such utilities or other persons and all other information desired by the
commission relating to such investigations and requirements to be filed with the
commission.
4. Compel obedience to its lawful orders by proceedings of mandamus or injunction or
other proper proceedings, in the name of the state, in any court having jurisdiction of
the parties or of the subject matter.
5. Hold hearings on good cause being shown therefor or on its own motion, and to
provide notice thereof and to shorten the period for which notice must be given prior to
hearing, when good cause exists for such action. Such notice, however, must be
reasonable in view of the nature, scope, and importance of the hearing. Whenever it
appears to the satisfaction of the commission that all of the interested parties have
agreed concerning the matter at hand, or that no interested party has asked for a
hearing, the commission may issue its order without a hearing.
6. Employ, and fix the compensation of, rate experts, engineers, auditors, attorneys, and
all other expert help and assistance for hearings or investigations on applications filed
by gas or electric public utilities. The expense of any hearings or investigations and the
actual expenses of any employees of the commission while engaged upon any
hearing or investigation must be deducted from the application fee paid by the public
utility involved. The commission shall ascertain the costs and expenditures. The
application fees received by the commission under chapter 49-05 must be deposited in
a special account within the public service commission. All moneys deposited in the
account are appropriated on a continuing basis to the commission to pay expenses
incurred in the processing of cases in which application fees are required. The
commission shall refund the portion of a fee collected under chapter 49-05 which
exceeds the expenses incurred for processing the case for which the fee was paid.

7. Cooperate with and receive technical and financial assistance from the United States,
any state, or any department, agency, or officer thereof for any purposes relating to
federal energy laws that deal with energy conservation, coal conversion, rate reform,
and utilities subject to the jurisdiction of the commission. The commission shall also
have the authority to file any reports, hold hearings, and promulgate regulations for
any such purposes. Information received by the commission which was developed or
obtained by a regional transmission organization market monitor, the organization of
midcontinent independent system operator states, and the southwest power pool
regional state committee is exempt from section 44-04-18 and section 6 of article XI of
the Constitution of North Dakota.
8. Cooperate with and receive technical and financial assistance from the United States,
any state, or any department, agency, or officer thereof, and to file such reports and
promulgate rules as required by federal law or regulation for any purposes relating to
the regulation of safety standards for pipeline facilities and the transportation
associated with those pipeline facilities.
### § 49-02-02.1. Applicant to pay cost of publishing notice.

When an application is filed under this title for which there is no application fee, the
applicant shall pay the cost of publishing any notice issued by the commission for the
application.
### § 49-02-03. Power of public service commission to establish rates.

The commission shall supervise the rates of all public utilities. It shall have the power, after
notice and hearing, to originate, establish, modify, adjust, promulgate, and enforce tariffs, rates,
joint rates, and charges of all public utilities. Whenever the commission, after hearing, shall find
any existing rates, tariffs, joint rates, or schedules unjust, unreasonable, insufficient, unjustly
discriminatory, or otherwise in violation of any of the provisions of this title, the commission by
order shall fix reasonable rates, joint rates, charges, or schedules to be followed in the future in
lieu of those found to be unjust, unreasonable, insufficient, unjustly discriminatory, or otherwise
in violation of any provision of law.
### § 49-02-03.1. Power to fix special rates - Public service commission.

Repealed by S.L. 1963, ch. 322, § 2.
### § 49-02-04. Power of commission to regulate services.

Whenever the commission shall find, after hearing, that the rules, regulations, practices,
equipment, appliances, facilities, or service of any public utility, or the methods of manufacture,
distribution, transmission, storage, or supply employed by it are unjust, unreasonable, unsafe,
improper, inadequate, or insufficient, the commission shall determine the just, reasonable, safe,
proper, adequate, or sufficient rules, regulations, practices, equipment, appliances, facilities,
service, or methods to be observed, furnished, constructed, enforced, or employed, and, after
hearing, shall fix the same by its order, rule, or regulation. The commission shall prescribe, after
hearing, rules and regulations for the performance of any service, or the furnishing of any
commodity, of a character furnished or supplied by any public utility. On demand and tender of
rates, such public utility shall furnish such commodity and render such service within the time
and upon the conditions provided in such rules.
### § 49-02-05. Use by one utility of the facilities of another utility.

Whenever upon hearing, after due notice, the commission has found that public
convenience and necessity require the use by one public utility of the conduits, subways, tracks,
wires, poles, pipes, or other equipment, or any part thereof, on, over, or under any street or
highway and belonging to another public utility and that such use will not result in irreparable
injury to the owner or other users of such conduits, subways, tracks, wires, poles, pipes, or
other equipment, nor any substantial detriment to the service, and that such public utilities have
failed to agree upon such use or the terms and conditions or compensation for the same, the

commission, by order, may direct that such use be permitted, and may prescribe reasonable
compensation and reasonable terms and conditions for such joint use. If such use is directed,
the public utility to which the use is permitted shall be liable to the owner or other users of such
conduits, tracks, wires, poles, pipes, or other equipment for such damage as may result
therefrom to the property of such owner or other users thereof.
### § 49-02-05.1. Power to fix terms by which the facilities of one utility may cross those of

another utility.
Whenever public convenience and necessity requires that an electric or telecommunications
distribution or transmission line, pipeline, or railroad track of any public utility cross a line or
track of another public utility and the public utilities have failed to agree upon the terms and
conditions or compensation for the same, the commission, after notice and hearing, may
prescribe reasonable terms, conditions, and compensation under which the crossing shall be
permitted.
### § 49-02-06. Entering premises of public utility by public service commission for

examination purposes.
The commission and its officers and employees shall have the power to enter upon any
premises occupied by any public utility for the purpose of:
1. Making examinations and tests;
2. Setting out and using on said premises any weights or appliances necessary therefor;
or
3. Exercising any of the powers provided for in this chapter.
### § 49-02-07. Appliances tested on request of consumer - Fee for testing.

Any consumer or user of any product, commodity, or service of a public utility may have any
appliance used in the measurement thereof tested by paying the fees fixed by the commission.
The commission shall establish and fix reasonable fees to be paid for testing such appliances.
### § 49-02-08. Testing meters - Gas - Electric.

The commission shall test, request a public utility to test, or use a third party to test meters
of public utilities used:
1. To measure the amount of electric current passing through such meters to consumers.
2. To measure the amount of gas passing through such meters for the use of its
customers.
3. To determine the British thermal unit content of natural or artificial gas distributed by
public utilities in this state.
### § 49-02-09. Purpose of testing meters.

Tests shall be made for the purpose of determining the accuracy of the meters and shall
determine whether or not the British thermal unit content of gas, either natural or artificial,
distributed by public utilities, is of the standard that now or hereafter may be prescribed by the
commission under its general powers and duties.
### § 49-02-10. Rules for meters.

The commission shall make such rules as it may deem proper and necessary as to the
manner in which tests of meters and heat values shall be made.
### § 49-02-11. Standards - Classification - Examinations - Provided by public service

commission.
The commission shall:
1. Ascertain and fix just and reasonable standards, classifications, regulations, practices,
measurements, or services to be furnished, imposed, observed, and followed by all
public utilities.

2. Ascertain and fix adequate and serviceable standards for the measurement, quantity,
quality, pressure, initial voltage, or other condition pertaining to the supply of the
product, commodity, or service furnished or rendered by any such public utility.
3. Prescribe reasonable regulations for the examination and testing of such product,
commodity, or service and for the measurement thereof.
4. Establish reasonable rules, regulations, specifications, and standards to secure the
accuracy of all meters and appliances for measurements.
5. Provide for the examination and testing of any and all such appliances used for the
measurement of any product, commodity, or service of any public utility.
### § 49-02-12. System of accounts, records, and memoranda established.

The commission shall:
1. Establish a system of accounts to be kept by a public utility subject to its jurisdiction.
2. Classify public utilities, establish a system of accounts for each class, and prescribe
the manner in which such accounts shall be kept.
3. Prescribe the forms for accounts, records, and memoranda to be kept by such public
utilities, including the accounts, records, and memoranda of the movement of traffic, as
well as of the receipts and expenditures of moneys, which the commission may deem
necessary to carry out any of the provisions of this title.
### § 49-02-12.1. Public service commission open meetings.

Except as otherwise provided by law, a meeting of the public service commission is subject
to the requirements of chapter 44-04. A meeting of the public service commission does not
include a quorum of members attending a legislative committee. The public service commission
is exempt from posting notice at the location of a meeting, as required under section 44-04-20, if
the meeting was not scheduled or organized by the public service commission.
### § 49-02-13. Jurisdiction of commission limited as to municipal utilities.

Repealed by omission from this code.
### § 49-02-14. Inspection of public utility accounts - Right as to examinations.

The commission, and each commissioner, and each officer or other person duly authorized
by the commission, shall have the right, at any time, to inspect the accounts, books, papers, and
documents of any public utility. The commission, each commissioner, any officer of the
commission, or any employee authorized to administer oaths shall have the power to examine,
under oath, any officer, agent, or employee of any public utility in relation to the business and
affairs of such public utility.
### § 49-02-15. Excessive or discriminatory charges - Reparation.

When complaint has been made to the commission concerning any rate or charge for any
product or commodity furnished or service performed by any public utility, and the commission
has found, upon a hearing after notice given as required by this title, that the public utility has
charged an excessive or discriminatory amount for such product, commodity, or service, in
excess of the schedules, rates, and tariffs on file with the commission, or has discriminated
under said schedules against the complainant, the commission may order that the public utility
make due reparation to the complainant therefor, with interest from the date of collection, if no
discrimination will result from such reparation.
### § 49-02-16. Investigation of interstate rates.

The commission shall exercise constant diligence in informing itself of the rates, rules, and
practices of common carriers engaged in:
1. The transportation of freight, express, and passengers;
2. The transportation by pipeline of crude petroleum, gas, or other petroleum products; or
3. The transmission of messages or intelligence,

from points in this state to points beyond its limits and from points in other states to points in this
state and in territory wholly outside of this state.
### § 49-02-17. Unreasonable rates, rules, and practices affecting interstate commerce.

Whenever it shall come to the knowledge of the commission, either from its own
investigation or by complaint made to it in any manner whatsoever, that the rates charged by
any public utility including any common carrier on interstate business are unjust or
unreasonable or that the rates, rules, or practices of such utility:
1. Discriminate unjustly against the citizens, industries, or interests of this state;
2. Place any of the citizens, industries, or interests of this state at an unreasonable
disadvantage as compared with those of other states; or
3. Are levied, laid, or otherwise in violation of federal law, rulings, orders, or regulations,
the commission immediately shall call such facts to the attention of the officials of such public
utility and urge upon them the propriety of changing such rates, rules, or practices.
### § 49-02-18. Failure of utility to adjust rates - Action by public service commission.

Whenever discriminatory, unreasonable, or unjust, rates, rules, or practices on interstate
business are not changed or adjusted so as to remove or remedy the discrimination,
unreasonableness, or unjustness, within a reasonable time, the commission shall take the
action necessary in an appropriate proceeding to obtain relief from such rates, rules, or
practices. If the commission deems it necessary, the attorney general, with such other
assistance as may be provided by law, shall prosecute any charge growing out of any such
discrimination.
### § 49-02-19. Power to fix special rates - Public service commission.

Repealed by omission from this code.
### § 49-02-20. Notice to be given before special rate fixed.

Repealed by S.L. 1963, ch. 322, § 2.
### § 49-02-21. Power of commission to regulate raising and lowering of electric supply

and communication lines.
The public service commission shall have power:
1. To regulate the raising and lowering of electric supply and communication lines to
permit the movement of buildings or other bulky objects; and to adopt and promulgate,
after notice and hearing, reasonable rules and regulations pertaining thereto.
2. To require, after notice and hearing, increased clearances in specific locations where
electric supply and communication lines cross public roads and streets, provided that
the movement of buildings or other bulky objects thereon is sufficiently frequent to so
warrant.
### § 49-02-22. Charges for raising and lowering lines - Reimbursement for unreasonable

delay.
Any party requesting the raising or lowering of electric supply and communication lines shall
be required to pay not more than the actual cost reasonably and necessarily incurred therefor.
The commission shall, upon application, and after notice and hearing, review and determine the
reasonableness of any charges assessed for the raising and lowering of electric supply and
communication lines, and if said charges are found unreasonable, the commission shall fix a
just and reasonable charge; provided, however, that any person, firm, corporation, or limited
liability company in charge of electric supply or communication lines, who shall fail, except for
good cause, to have said lines raised or lowered to permit the movement of buildings or other
bulky objects at the time agreed upon, shall be liable for reasonable costs, damages, and
expenses occasioned by such unreasonable delay.

### § 49-02-23. Consideration of environmental externality values prohibited.

The commission may not use, require the use of, or allow electric utilities to use
environmental externality values in the planning, selection, or acquisition of electric resources or
the setting of rates for providing electric service. Environmental externality values are numerical
costs or quantified values that are assigned to represent either:
1. Environmental costs that are not internalized in the cost of production or the market
price of electricity from a particular electric resource; or
2. The alleged costs of complying with future environmental laws or regulations that have
not yet been enacted.
### § 49-02-24. Renewable electricity and recycled energy credit trading and tracking

system.
Notwithstanding any other provision of law, the commission by rule may establish or
participate in a program to track, record, and verify the trading of credits for electricity generated
from renewable and recycled heat sources among electric generators, utilities, and other
interested entities within this state and with similar entities in other states. This section applies
to all public utilities, electric cooperatives, and municipal electric utilities.
### § 49-02-25. Renewable electricity and recycled energy defined.

As used in section 49-02-24, renewable electricity and recycled energy include electricity
generated from facilities using the following sources:
1. Solar, using the sun as the source of energy for producing electricity.
2. Wind, using the wind as the source of energy for producing electricity.
3. Hydroelectric, using water as the source of energy for producing electricity.
4. Biomass, using agricultural crops and agricultural wastes and residues, wood and
wood wastes and residues, animal wastes, and landfill gas as the fuel to produce
electricity.
5. Geothermal, using energy contained in heat that continuously flows outward from the
earth as the source of energy to produce electricity.
6. Hydrogen, provided that the hydrogen is generated from a source listed in this section.
7. Recycled energy systems producing electricity from currently unused waste heat
resulting from combustion or other processes into electricity and which do not use an
additional combustion process. The term does not include any system whose primary
purpose is the generation of electricity unless the generation system consumes
wellhead gas that would otherwise be flared, vented, or wasted.
### § 49-02-26. Qualifying for renewable electricity and recycled energy credits.

For purposes of qualifying for renewable electricity and recycled energy credits, electricity
must be generated from a source identified in section 49-02-25.
### § 49-02-27. Decommissioning of renewable energy conversion facilities.

1. The commission shall adopt rules governing the decommissioning of commercial wind
energy conversion facilities. The rules must address:
a. The anticipated life of the project;
b. The estimated decommissioning costs in current dollars;
c. The method and schedule for updating the costs of the decommissioning and
restoration;
d. The method of ensuring that funds will be available for decommissioning and
restoration;
e. The anticipated manner in which the project will be decommissioned and the site
restored; and
f. Present and future natural resource development.
2. The facility owner or operator of a commercial wind energy facility shall record the
location of any portion of underground foundation not removed during

decommissioning with the county recorder in the county in which any such
underground foundation is located.
3. The commission may adopt rules governing the decommissioning of commercial solar
energy conversion facilities.
### § 49-02-28. State renewable and recycled energy objective.

Repealed by S.L. 2025, ch. 432, § 2.
### § 49-02-29. Qualifying for renewable electricity and recycled energy objective.

Repealed by S.L. 2025, ch. 432, § 2.
### § 49-02-30. Application of electricity generated from existing hydroelectric facilities in

calculating the renewable and recycled energy objective.
Repealed by S.L. 2025, ch. 431, § 4.
### § 49-02-31. Purchase and retirement of renewable energy and recycled energy

certificates to meet the objective.
Repealed by S.L. 2025, ch. 432, § 2.
### § 49-02-32. Use of renewable and recycled energy - Economic evaluation.

Repealed by S.L. 2025, ch. 432, § 2.
### § 49-02-33. Verification of generation and of purchase of renewable energy and

recycled energy certificates.
Repealed by S.L. 2025, ch. 432, § 2.
### § 49-02-34. Public reporting on progress toward meeting the renewable energy and

recycled energy objective.
Repealed by S.L. 2025, ch. 432, § 2.
