Georgia Public-Service Commission v. City of Albany

179 S.E. 369, 180 Ga. 355, 1935 Ga. LEXIS 261
CourtSupreme Court of Georgia
DecidedFebruary 16, 1935
DocketNo. 10397
StatusPublished
Cited by9 cases

This text of 179 S.E. 369 (Georgia Public-Service Commission v. City of Albany) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Public-Service Commission v. City of Albany, 179 S.E. 369, 180 Ga. 355, 1935 Ga. LEXIS 261 (Ga. 1935).

Opinion

Russell, Chief Justice.

This was a case in which the Georgia Public-Service Commission notified the City of Albany, along with other municipalities operating electric-light sj^stems, as well as all private corporations operating similar utilities, to appear and answer why their rates should not be reduced. Upon receiving the order of the Public-Service Commission to show cause, etc., the City of Albany filed a petition contending that the Public Service Commission had no jurisdiction, so far as related to the City of Albany in the operation of its water and electric-light system, and praying for an injunction restraining the Public-Service Commission from proceeding to enforce any of the rules provided by law by which the Public-Service Commission is enabled to enforce its judgments. The superior court of Fulton County granted a temporary restraining order, and issued a rule nisi calling upon the Public-Service Commission to show cause why an interlocutory injunction should not- be granted. On interlocutory hearing the court granted an injunction as prayed. The exception is to this judgment. It is admitted that in its final analysis the question involved in the case at bar is reduced to one point. Is the juris[357]*357diction of the Public-Service Commission in the control of rates and regulations of the business of furnishing water and electricity for the public use so comprehensive and exclusive as to include municipal plants which have been authorized by the General Assembly to perform this public service as a governmental instrumentality ? Included within this question, there is naturally presented the inquiry whether the legislative delegation of authority in this respect to certain municipalities is violative of the constitutional provision (art. 2, sec. 4, par. 1) which forbids the enactment of a special law at variance or in conflict with a general law upon the same subject. At the outset it must be borne in mind that the powers granted to the Public-Service Commission are all merely statutory. Art. 4, sec. 2, par. 1, of the constitution of 1877, which led to the enactment of the act approved October 14, 1879 (Ga. L. 1879, p. 125), and the creation of the original Eailroad Commission of Georgia, has no reference to rate fixing or regulations other than as applicable to railroads. The scope of the duties of the present Public-Service Commission have been so enlarged as to include public-utility corporations, merely by acts of the General Assembly. Of these we deem it necessary only to refer specifically to the act approved August 23' 1907 (Ga. L. 1907, p. 72), and the act approved August 21, 1922 (Ga. L. 1922, p. 143), in which the name was changed from the Eailroad Commission of Georgia to the Georgia Public-Service Commission.

We are of the opinion that a proper determination of the question now before this court is of the highest importance, and involves the perpetuation of some of the most precious principles which underlie American democratic institutions. The principle of local self-government is one of the mudsills of democratic and republican institutions. In the creation of a municipality the State delegates to the municipality such powers of local government as the sovereign sees fit to grant. There is no limit except the discretion of the General Assembly subject to constitutional limitations. If the regulation of private-utility corporations, whose primary purpose is profit, is necessary, as it is for the protection of their customers, it would seem to be unnecessary to provide similar supervision or protection to the citizens of a municipality, who themselves own the plant which supplies the electricity and water. The remedy of any ill that can be anticipated rests with the owners of [358]*358the plant, the qualified voters of the municipality, at the ballot-box. But it is contended by able counsel for the Public-Service Commission, “first, that, irrespective of the express provisions of any municipal charter, the Public-Service Commission has jurisdiction, under the act of 1907 as amended, to regulate the rates to be charged by municipalities expressly authorized by their charters to operate and maintain electric-power plants; second, that even if it should be held that any jurisdiction of the Public-Service Commission is ousted by the express provision of a city charter authorizing the municipality to regulate rates, the Commission still has such power and authority with reference to any municipality expressly authorized to operate and maintain electric-power plants, but not expressly authorized to regulate rates within the municipality; third, that those municipalities which have no express charter authority either to operate an electric-power plant or to fix the rates to be charged within the municipality necessarily fall within the jurisdiction of the Public-Service Commission; and fourth, that with reference to all municipalities, whether having express charter powers or not, the Public-Service Commission has jurisdiction to regulate the rates to be charged customers living beyond the corporate boundaries of the municipality.” For reasons hereafter to be stated, the ruling of this court in Atlanta Terminal Co. v. Georgia Public Service Com., 163 Ga. 897 (6) (137 S. E. 556), even if decisive of the General Assembly’s inherent power to regulate public utilities, is without application in this case, as we are of the opinion that a municipal corporation does not become in any sense a public utility, though it be empowered to operate and does operate an electric-light and water plant. Hence it does not follow, as contended by learned counsel, that “the General Assembly thus has the power to regulate the rates to be charged by municipalities which operate public utilities,” and in our opinion neither the provisions of art. 4, sec. 2, paragraph 1, nor art. 3, sec. 7, par. 22, of the constitution, nor the rulings in Georgia Railway & Power Co. v. Georgia Railroad Com., 149 Ga. 1, 5, 11 (98 S. E. 696, 5 A. L. R. 1), Union Dry Goods Co. v. Georgia Public-Service Com., 142 Ga. 841 (2), 845 (82 S. E. 946, L. R. A. 1916E, 358), and Manigault v. Springs, 199 U. S. 473, 480 (26 Sup. Ct. 127, 50 L. ed. 274), support this contention. We can not concur in the statement of counsel for tbe Public-Service Commission that “it [359]*359may be taken as definitely settled that the power of the General Assembly to regulate the rates to be charged by utilities extends over and applies to utilities which are operated by municipal corporations.” It is a contention of counsel that “the legislature has vested exclusive jurisdiction to determine just and reasonable rates in the Georgia Public Service Commission.” To support this proposition, it is stated that by the act of 1879, supra, the General Assembly created the Eailroad Commission of Georgia and vested in it jurisdiction and authority to determine reasonable freight and passenger rates; that this was amended by the act of 1907, supra, so as to enlarge the jurisdiction of the commission and extend it to “gas and electric-light and power companies, corporations, or persons owning, leasing, or operating public’gas plants or electric-light and power plants furnishing service to the public.” Another argument on this point is based upon the premise “that the power to regulate municipal rates is inherent in the General Assembly, and that this power is not defeated by any grant of power to the municipal corporation.”

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Bluebook (online)
179 S.E. 369, 180 Ga. 355, 1935 Ga. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-public-service-commission-v-city-of-albany-ga-1935.