1974

Culpeper v. Va. Elec. & Power Co.

Supreme Court of Virginia

215 Va. 189, 207 S.E.2d 864

Power companies had certificates of public convenience and necessity issued by the State Corporation Commission to provide electricity to a portion of Culpeper County. A portion of their existing service area was annexed by the Town of Culpeper. Town filed declaratory judgment action to take over the distribution of electricity in this area. Power companies asserted this was an infringement of their constitutionally protected property rights and an impairment of the valid exercise of police power. Trial court ruled for power companies. On appeal, Supreme Court ruled that the franchises were valuable property rights and that annexation of territory must not impair vested rights. There was no authority that certificates issued by the SCC can be nullified by annexation and no procedure existed by which an annexing town can acquire franchised facilities by eminent domain. To hold otherwise would destroy a vested and valuable right and have the companies sustain an unconstitutional non-compensable loss. Affirmed.

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