WALTON ELECTRIC MEMBERSHIP CORPORATION v. GEORGIA POWER COMPANY (Two Cases)

320 Ga. 740
CourtSupreme Court of Georgia
DecidedJanuary 28, 2025
DocketS24G0314, S24G0318
StatusPublished
Cited by5 cases

This text of 320 Ga. 740 (WALTON ELECTRIC MEMBERSHIP CORPORATION v. GEORGIA POWER COMPANY (Two Cases)) 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
WALTON ELECTRIC MEMBERSHIP CORPORATION v. GEORGIA POWER COMPANY (Two Cases), 320 Ga. 740 (Ga. 2025).

Opinion

320 Ga. 740 FINAL COPY

S24G0314. WALTON ELECTRIC MEMBERSHIP CORPORATION et al. v. GEORGIA POWER COMPANY.

S24G0318. NESTLE PURINA PETCARE COMPANY et al. v. GEORGIA POWER COMPANY.

MCMILLIAN, Justice.

In 2019, Nestle Purina Petcare Company attempted to switch

its electric supplier for its wet-food manufacturing and distribution

facility in Hartwell, Georgia from Georgia Power Company to

Walton Electric Membership Corporation. Georgia Power objected

under the Territorial Electric Service Act, OCGA § 46-3-1 et seq.

(“Territorial Act”), asserting that it had the right to continue

servicing the premises because they were not new premises and

Nestle did not meet the requirements of the Territorial Act to switch

electric suppliers. Specifically, Georgia Power argued that the

premises had long existed as a manufacturing and warehousing

facility, that the premises continued to be a manufacturing and

warehousing facility, and that the changes Nestle made to the facility did not “destroy[ ] or dismantle[ ]” the premises in whole as

required by the Territorial Act to switch providers. OCGA § 46-3-8

(b). The Georgia Public Service Commission (the “Commission”)

rejected Georgia Power’s argument, concluding that the premises

were “destroyed or dismantled” and that they were not

“reconstructed . . . in substantial kind,” so Nestle was permitted to

switch to Walton EMC under subsection (b). On appeal, the superior

court reversed, concluding that the premises were not “destroyed or

dismantled,” and the Court of Appeals affirmed. Walton Elec.

Membership Corp. v. Ga. Power Co., 369 Ga. App. 461 (893 SE2d

852) (2023). We conclude that under the appropriate standard of

review — abuse of discretion — the Commission’s decision should

have been upheld, so we reverse.

In 2017, Nestle purchased and renovated a former warehouse

and textile manufacturing facility in Hartwell, Georgia, to

manufacture and process pet food. The premises are located in

Georgia Power’s assigned supply territory pursuant to the

Territorial Act, and Georgia Power has provided electrical service to

2 the premises since they were built in 1991 as a textile

manufacturing and warehouse facility. The facility was expanded at

various points and totaled approximately 550,000 square feet by

1999. In 2006, the premises ceased being used for textile

manufacturing and remained vacant for the next decade until some

of the space was leased to several companies for warehousing space.

Nestle then purchased the premises for $7 million and overhauled

the facility so that it could be used to make pet food. In 2019, Nestle

indicated its intention to switch its service provider to Walton EMC,

pursuant to an exception in the Territorial Act for premises that

have a single-metered service and connected load of 900 kilowatts or

greater, which have been “destroyed or dismantled” and not

“reconstructed . . . in substantial kind.” OCGA § 46-3-8 (a) (5), (b).

Georgia Power objected and filed a complaint with the Commission,

arguing that OCGA § 46-3-8 (b) entitled Georgia Power to continue

serving the premises.

The Commission hearing officer’s initial decision, which was

adopted and affirmed in its entirety by the full Commission,

3 concluded that Nestle was entitled to switch providers because its

“substantial modifications” had “destroyed or dismantled” the

premises, and they had not been “reconstructed . . . in substantial

kind.” The decision noted that the hearing officer heard two days of

live testimony from multiple witnesses called by the parties and

accepted dozens of exhibits from the parties.

Under the heading “Findings of Fact,” the decision summarized

the testimony, evidence, and contentions of the parties before

stating:

The Hearing Officer finds that Nestle removed and replaced the electrical system and infrastructure; removed and replaced 30 percent of the flooring and foundation in its food processing area; removed concrete slabs in the old weave room; changed the foundation in the old bleachery by filling the old vats with concrete and the old pits with ballast, structural steel, and concrete; removed the roof above the old bleachery, the old tank building, and some of the distribution center; demolished the old filter press’ structural piers; demolished and removed the old air washing pits; and demolished the old crane system. Nestle Purina has swallowed up the old ventilation tunnels; some interior and exterior walls; and replaced the old air plenum where the new office space sits. Additionally, Nestle Purina demolished interior walls, made openings in other walls, and is enclosing some exterior walls with a new building.

4 The Hearing Officer further finds that Nestle has committed $220 million to prepare the Hartwell Pet Food Facility for startup in the fall of 2019, and an additional $80 million to reach initial full operation by the second quarter of 2020. Nestle Purina has: (1) replaced the wastewater treatment facility, (2) changed the overall structure and design of the existing facility, (3) constructed approximately 120,00 [sic] square feet of additional buildings, (4) replaced the existing electrical systems, (5) replaced the air handling systems, and (6) created a food safe environment by, among other things, sealing off and otherwise protecting the interior from pests and other contaminants, and (7) added a freezer in one of the new buildings.

Based on these factual findings, the Commission determined

that the premises were “destroyed or dismantled” as those terms

were defined by dictionaries and Commission precedent. Moreover,

the Commission concluded that the premises were not reconstructed

in substantial kind because “[t]here are countless differences

between the [textile facility] and Nestle[’s pet food processing

facility] in terms of both physical appearance and structure, and

primary purpose and function.”

After Georgia Power filed a petition for judicial review in the

superior court pursuant to the Administrative Procedure Act, OCGA

5 § 50-13-19 (a),1 the superior court reversed the Commission’s

decision, concluding, “[t]he hearing officer’s findings of fact . . . are

clearly supported by the evidence,” but “the PSC’s determination

that these modifications subjected the premises to [OCGA § 46-3-8

(b)] was clearly erroneous. . . . The Court finds as a matter of law

that renovating portions of the premises does not constitute

‘ruining,’ ‘demolishing,’ or ‘disassembling’ in any regard.” Moreover,

the superior court found “that even if the renovations could be

construed as a ‘dismantling,’ they were certainly reconstructed in

substantial kind” because “[n]otwithstanding the extensive

modifications that were completed to make the premises compatible

with hygienic food processing, the purpose of the premises [as ‘a

warehouse and processing facility’] and layout remains

substantially the same.”

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