12.248. Investor-owned electric utilities are regulated by state public utility commissions, which have the responsibility for approving rate struc­tures that will provide a fair rate of return on investment (§10.107). In most states, they also are required by statute to judge whether or not new generating facilities are indeed necessary. If approval is obtained, the is­suance of a Certificate of Public Convenience and Necessity (CPCN) as­sures that the needed investment will be added to the rate base. Generally, an electric utility will obtain a CPCN before initiating NRC application procedures.

12.249. State agencies also have various requirements that affect site selection, particularly within coastal areas, where land and water use might be affected. Also, such matters as cooling water supply and effluent discharges usually require state approval. In some states there are restrictions on nuclear plant construction on radiological health and safety grounds. Overlapping state and federal jurisdiction can result in regulatory complications.