Troup County Elec. Membership Corp. v. Georgia Power Co.

• Decision Date: 28 June 1972
• Docket Number: No. 27028,27028
• Citation: 191 S.E.2d 33,229 Ga. 348
• Parties: TROUP COUNTY ELECTRIC MEMBERSHIP CORPORATION v. GEORGIA POWER COMPANY.
• Court: Georgia Supreme Court

Page 33

191 S.E.2d 33

229 Ga. 348

TROUP COUNTY ELECTRIC MEMBERSHIP CORPORATION v. GEORGIA POWER COMPANY.

No. 27028.

Supreme Court of Georgia.

June 28, 1972.

Rehearing Denied July 13, 1972.

Tisinger & Tisinger, Richard G. Tisinger, Carrollton, for appellant.

Richter & Birdsong, LaGrange, Kelly, Champion & Henson, Forrest L. Champion, Jr., Columbus, for appellee.

James C. Brim, Jr., Camilla, Donald T. Robinson, Lennie F. Davis, E. H. Polleys, Jr., Columbus, amicus curiae.

Syllabus Opinion by the Court

HAWES, Justice.

Georgia Power Company filed a complaint for an injunction against Troup County Electric Membership Corporation in the Superior Court of Troup County. When the case came on to be heard, the trial court, after hearing evidence and argument of counsel, enjoined the defendant 'from further extending their lines or giving services more than 300 feet from the location of their lines on January 1, 1971.' Thereafter, it being made to appear to the trial court that the defendant, prior to the rendition of the judgment above referred to had extended its distribution lines located in a described residential subdivision in Muscogee County more than the 300 feet from their location on January 1, 1971, the court modified its order by permitting the defendant to continue to serve lots in the subdivision until the final determination of the issues by the Supreme Court, it being agreed and stipulated that nothing in such order as amended would operate to render the questions presented by the case moot.

The defendant Troup Electric Membership Corporation is a nonprofit electric membership corporation, organized under the provisions of the Act approved March 30, 1937 (Ga.L.1937, pp. 644, 659), as amended. Code Ann. Ch. 34B-1. That Act authorizes electric membership corporations to be organized thereunder for the purpose of 'engaging in rural electrification by (among others)' . . . (1) the furnishing of electric energy to persons in rural areas . . . Section 2(8) of that Act, as amended, provides: "Rural area' means any area not included within the boundaries of any incorporated or unincorporated city, town, or village having a population in excess of 1,500 inhabitants at the time a corporation commences to operate electric facilities or to furnish electric energy in such an area, and includes both the farm and nonfarm population thereof; and the inclusion by annexation or otherwise, of any portion of a rural area, as defined in this Chapter, within the limits of an incorporated or unincorporated city, town, or village regardless of its population, shall not in any respect impair or affect the right of a corporation to continue to furnish electric energy to its member consumers or to new member consumers within such newly annexed area: Provided that the right to serve new member consumers shall be limited to a service drop not exceeding 300 feet from any lines of such corporation in existence at the time of annexation or inclusion of any portion of rural area, as defined in this Chapter, within limits of an incorporated or unincorporated city, town or village.' Code Ann. § 34B-102(8). Prior to January 1, 1971, defendant owned distribution lines serving its members in portions of Muscogee County, Georgia, outside the limits of the then City of Columbus.

In 1968, the legislature proposed a local constitutional amendment to authorize the General Assembly to provide by local Act for the creation of a charter commission to study all matters relating to the consolidation of the government of the City of Columbus and the County of Muscogee and for the establishment of a successor government with powers and jurisdiction throughout the territorial limits of Muscogee County. Ga.L.1968, p. 1508, et seq. That proposed constitutional amendment was duly ratified by a majority of the people residing in the City of Columbus and in Muscogee County outside the City of Columbus. Ga.L.1969, p. 4426. At the 1969 session of the General Assembly a local enabling Act was passed creating the Muscogee County Charter Commission. Ga.L.1969, p. 3571, et seq. Pursuant thereto, a charter commission was duly formed and drafted a charter which was ratified by the affirmative vote of a majority of the qualified voters of Muscogee County and by the affirmative vote of a majority of the qualified voters of the then existing City of Columbus at a referendum held on May 27, 1970. Thereafter, on November 3, 1970, an election was held to elect members of the governing authority of the countywide government thereby established. 'Upon the election of the members of said county-wide government authority and their taking office as the governing authority of said county-wide government, the existing governments of the City of Columbus and Muscogee County' stood abolished. Ga.L.1969, pp. 3571, 3579. Said charter became effective January 1, 1971.

On that date a residential subdivision located outside the limits of what had been the City of Columbus, but within Muscogee County, was in the process of development, and Troup Electric Membership Corporation had extended its lines for conveying electrical energy into said subdivision. Thereafter, and before commencement of the action in this case defendant further extended its lines a distance of 725 feet into the subdivision in question, installing in the process five poles in order to serve new members in an area where defendant had no lines prior to January 1, 1971. The plaintiff in the court below contended that, by virtue of the ratification and adoption by the people of the City of Columbus and the people of Muscogee County of the charter of Columbus, Georgia, the area wherein are located the lines of the defendant in question became an area included in the boundary of an incorporated city having a population in excess of 1,500 and that under the provisions of § 2(8) of the Electric Membership Corporation Act, quoted above, defendant may not extend its lines in such area in any manner except to make a service drop not exceeding 300 feet from its lines as they existed prior to January 1, 1971. In the order appealed from, the trial court sustained this contention, and we have for decision the question of correctness of that ruling. Held:

1. It is a part of the public policy of this State to suppress monopolies and to encourage competition, and to this end restrictions on the right of any person, firm or corporation to engage in its business and to do business with those members of the public who choose to partake of its services are not favored. Const. of the State of Georgia, Art. IV, Sec. IV, Par. I (Code § 2-2701); Code § 20-504; State v....