The Georgia Supreme Court is currently hearing arguments in a dispute between Georgia Power and Walton Electric Membership Corp. The case revolves around Georgia Power’s claim of “grandfather rights” to continue providing electricity to the Hartwell Nestlé Purina PetCare Co. despite the company’s decision to switch to Walton EMC as its supplier. The state Supreme Court is expected to make a ruling in the coming months after reconsidering decisions made by lower courts.
The Georgia Territorial Electric Service Act introduced retail competition in 1973, allowing certain businesses to choose their electricity supplier. Georgia Power, with 2.7 million customers, is regulated by the state Public Service Commission, while over 90 EMCs and municipally-owned systems have limited regulatory authority.
Nestlé’s investment in refurbishing the facility that manufactures cat food led Walton EMC to become its electricity supplier, sparking Georgia Power to file a complaint with the PSC. The argument centers on whether the facility’s renovations constituted a “new premises” under the Territorial Act’s customer choice provision.
Walton EMC’s attorney argued that the conversion of the facility satisfied the customer choice provision, while Georgia Power contended that the renovations were substantial enough to classify it as a new premises. Justices questioned the extent of the changes made to the building and whether they warranted a switch in electricity provider.
The Georgia Supreme Court’s ruling on this case is highly anticipated as it will have implications on customer choice provisions and the rights of electricity providers in the state.
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