46-1-1. Definitions.

As used in this title, the term:

1. “Certificate” means a certificate of public convenience and necessity issued pursuant to this title.
2. “Commission” means the Public Service Commission.
3. “Company” shall include a corporation, a firm, a partnership, an association, or an individual.
4. “Electric utility” means any retail supplier of electricity whose rates are fixed by the commission.
5. “Gas company” means any person certificated under Article 2 of Chapter 4 of this title to construct or operate any pipeline or distribution system, or any extension thereof, for the transportation, distribution, or sale of natural or manufactured gas.
6. “Person” means any individual, partnership, trust, private or public corporation, municipality, county, political subdivision, public authority, cooperative, association, or public or private organization of any character.
7. “Railroad corporation” or “railroad company” means all corporations, companies, or individuals owning or operating any railroad in this state. This title shall apply to all persons, firms, and companies, and to all associations of persons, whether incorporated or otherwise, that engage in business as common carriers upon any of the lines of railroad in this state, as well as to railroad corporations and railroad companies as defined in this Code section.
8. “Rate,” when used in this title with respect to an electric utility, means any rate, charge, classification, or service of an electric utility or any rule or regulation relating thereto.
9. “Utility” means any person who is subject in any way to the lawful jurisdiction of the commission.

History. Orig. Code 1863, §§ 2038, 2039; Code 1868, §§ 2039, 2040; Code 1873, §§ 2065, 2066; Ga. L. 1878-79, p. 125, § 12; Code 1882, §§ 719l, 2065, 2066; Civil Code 1895, §§ 2199, 2263, 2264, 2267; Civil Code 1910, §§ 2642, 2711, 2712, 2715; Ga. L. 1931, Ex. Sess., p. 99, § 2; Ga. L. 1931, p. 199, §§ 2, 33; Ga. L. 1933, p. 198, § 1; Code 1933, §§ 18-101, 18-201, 68-502, 68-601, 93-101; Ga. L. 1939, p. 207, § 1; Ga. L. 1943, p. 179, § 1; Ga. L. 1960, p. 1129, § 1; Ga. L. 1962, p. 630, § 1; Ga. L. 1963, p. 30, § 1; Ga. L. 1963, p. 365, § 1; Ga. L. 1964, p. 298, § 1; Ga. L. 1970, p. 224, § 1; Ga. L. 1975, p. 1190, § 1; Ga. L. 1976, p. 197, § 1; Ga. L. 1979, p. 651, § 1; Ga. L. 1980, p. 479, § 1; Code 1933, § 93-102, enacted by Ga. L. 1981, p. 121, § 2; Ga. L. 1982, p. 3, § 46; Ga. L. 1982, p. 410, §§ 1, 2; Ga. L. 1982, p. 827, §§ 1, 2; Ga. L. 1983, p. 3, § 35; Ga. L. 1983, p. 735, § 1; Ga. L. 1984, p. 22, § 46; Ga. L. 1984, p. 1394, § 1; Ga. L. 1985, p. 1394, § 1; Ga. L. 1986, p. 1283, § 1; Ga. L. 1987, p. 1090, § 1; Ga. L. 1990, p. 709, §§ 1, 2; Ga. L. 1993, p. 579, § 1; Ga. L. 1994, p. 97, § 46; Ga. L. 1994, p. 661, § 1; Ga. L. 1994, p. 1238, § 1; Ga. L. 1995, p. 1302, § 14; Ga. L. 1996, p. 950, § 2; Ga. L. 1997, p. 798, § 1; Ga. L. 2000, p. 951, §§ 9-1, 9-2, 9-3; Ga. L. 2002, p. 415, § 46; Ga. L. 2002, p. 1378, § 8; Ga. L. 2005, p. 334, § 28-1/HB 501; Ga. L. 2007, p. 607, § 1/HB 317; Ga. L. 2007, p. 679, § 1/HB 389; Ga. L. 2009, p. 669, § 1/HB 440; Ga. L. 2011, p. 479, § 18/HB 112; Ga. L. 2012, p. 580, § 14/HB 865; Ga. L. 2012, p. 775, § 46/HB 942.

The 2002 amendments. The first 2002 amendment, effective April 18, 2002, part of an Act to revise, modernize, and correct the Code, deleted “by the Public Service Commission” preceding “pursuant to this title” in paragraph (2) and substituted “Department of Motor Vehicle Safety” for “Public Service Commission” in paragraph (18). The second 2002 amendment, effective July 1, 2002, rewrote paragraph (7); rewrote subparagraph (9)(C); and, in paragraph (11), substituted “United States Department of Transportation” for “interstate Commerce Commission” and inserted “passenger” near the middle.

The 2005 amendment, effective July 1, 2005, substituted “commission” for “commissioner of motor vehicle safety” in paragraph (7); deleted “, provided that they do not operate to or from fixed termini outside of such limits and to any dray or truck which operates within the corporate limits of a city and is subject to regulation by the governing authority of such city or by the commissioner of motor vehicle safety and which goes beyond the corporate limits only for the purpose of hauling chattels which have been seized under any court process” at the end of division (9)(C)(ii); in division (9)(C)(x), substituted “commissioner of public safety” for “commissioner of motor vehicle safety” three times and inserted “and the Environment” following “Senate Natural Resources” in the next-to-last sentence; deleted division (9)(C)(xii), which read: “Motor vehicles engaged in compensated intercorporate hauling whereby transportation of property is provided by a person who is a member of a corporate family for other members of such corporate family, provided:

“(I) The parent corporation notifies the commissioner of motor vehicle safety of its intent or the intent of one of the subsidiaries to provide the transportation;

“(II) The notice contains a list of participating subsidiaries and an affidavit that the parent corporation owns directly or indirectly a 100 percent interest in each of the subsidiaries;

“(III) A copy of the notice is carried in the cab of all vehicles conducting the transportation; and

“(IV) The transportation entity of the corporate family registers the compensated intercorporate hauling operation with the commissioner of motor vehicle safety, registers and identifies any of its vehicles, and becomes subject to the commissioner’s liability insurance and motor common carrier and motor contract carrier and hazardous materials transportation rules. For the purpose of this division, the term ‘corporate family’ means a group of corporations consisting of a parent corporation and all subsidiaries in which the parent corporation owns directly or indirectly a 100 percent interest;” substituted “state revenue commissioner” for “commissioner of motor vehicle safety” four times in division (9)(C)(xiii) and paragraphs (11) and (18), and added “state revenue” preceding “commissioner’s” in division (9)(C)(xiii).

The 2007 amendments.

The first 2007 amendment, effective July 1, 2007, in division (9)(C)(ii), in the second sentence, substituted “such vehicles” for “taxicabs and buses” in the middle and added a period at the end, and added the last two sentences. The second 2007 amendment, effective July 1, 2007, added the last sentence in subparagraph (9)(B) and substituted the present provisions of division (9)(C)(xiii) for the former provisions which read: “Vehicles, except limousines, transporting not more than ten persons for hire, except that any operator of such a vehicle is required to register the exempt operation with the state revenue commissioner, register and identify any of its vehicles, and become subject to the state revenue commissioner’s liability insurance and vehicle safety rules;”.

The 2009 amendment, effective May 4, 2009, added paragraphs (5.1), (6.2), and (6.3); in paragraph (6), near the beginning, inserted “ ‘compensation’ or ‘for’ ” and inserted “payment or other”, and added “or for hire, provided that no exempt rideshare shall be deemed to involve any element of transportation for compensation or for hire” at the end; and, in paragraph (13), deleted “or” at the end of subparagraph (13)(C), substituted “; or” for a period at the end of subparagraph (13)(D), and added subparagraph (13)(E).

The 2011 amendment, effective July 1, 2011, substituted “Reserved” for the former provisions of paragraph (8), which read: “ ‘Motor carrier of property’ means a motor common or contract carrier engaged in transporting property, except household goods, in intrastate commerce in this state.”; in subparagraph (9)(A), substituted “persons or household goods or engaged in the activity of nonconsensual towing pursuant to Code Section 44-1-13 for hire over any public highway in this state” for “persons or property for hire over any public highway in this state and not operated exclusively within the corporate limits of any city”, and added the last sentence; in subparagraph (9)(B), substituted “household goods” for “property”, and inserted “or engaged in the activity of nonconsensual towing pursuant to Code Section 44-1-13,” in the first sentence; in division (9)(C)(ii), deleted “drays, trucks, buses, and other motor vehicles” following “Taxicabs” in the first sentence and deleted the period following the first sentence, deleted the second through fourth sentences, relating to the exception of regulation by the governing authorities and tow trucks engaged in consensual towing, respectively, and added “the provisions of this division notwithstanding, vehicles and the drivers thereof operating within the corporate limits of any city shall be subject to the safety regulations adopted by the commissioner of public safety pursuant to Code Section 40-1-8” at the end of the present first sentence; substituted “Reserved” for the former provisions of division (9)(C)(v), which read: “Granite trucks, where transportation from quarry to finishing plant involves not crossing more than two counties”; substituted “Reserved” for the former provisions of division (9)(C)(vi), relating to RFD carriers and star-route carriers; substituted “Reserved” for the former provisions of division (9)(C)(vii), relating to motor trucks of railway companies which perform pick-up and delivery; substituted “Reserved” for the former provisions of division (9)(C)(ix), relating to single source leasing; substituted “Reserved” for the former provisions of division (9)(C)(x), relating to motor vehicles engaged exclusively in the transportation of agricultural or dairy products; substituted “subparagraph” for “paragraph” at the end of division (9)(c)(xiii); substituted “Reserved” for the former provisions of paragraph (11), relating to the definition of “permit”; and substituted “Reserved” for the former provisions of paragraph (13), relating to the definition of “private carrier”; and substituted “commission” for “state revenue commissioner” at the end of paragraph (18).

The 2012 amendments.

The first 2012 amendment, effective July 1, 2012, rewrote this Code section. The second 2012 amendment, effective May 1, 2012, part of an Act to revise, modernize, and correct the Code, substituted “renter’s” for “rentor’s” in subparagraph (5.1)(C). See Editor’s notes regarding the effect of these amendments.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 1986, the definitions in this Code section were arranged in alphabetical order.

Pursuant to Code Section 28-9-5, in 2000, “Senate Natural Resources Committee” was substituted for “Senate Committee on Natural Resources” in the last sentence of division (9)(C)(x).

Editor’s notes.

Ga. L. 2000, p. 951, § 13-1, not codified by the General Assembly, provides that the 2000 Act which amended this Code section becomes fully effective July 1, 2001, but authorizes administrative action commencing April 28, 2000, for purposes of appointing certain officials, adopting rules and regulations, employing personnel, and preparing for and phasing in full implementation; provided, however, that the Governor may by executive order extend the date for full implementation of the Act to no later than July 1, 2003. In accordance with an executive order issued June 29, 2001, by the Governor, the amendment of this Code section by Ga. L. 2000, p. 951, became fully effective July 1, 2001.

Ga. L. 2012, p. 775, § 54(e)/HB 942, not codified by the General Assembly, provides: “In the event of an irreconcilable conflict between a provision in Sections 1 through 53 of this Act and a provision of another Act enacted at the 2012 regular session of the General Assembly, the provision of such other Act shall control over the conflicting provision in Sections 1 through 53 of this Act to the extent of the conflict.” Accordingly, the amendment to subparagraph (5.1)(C) of this Code section by Ga. L. 2012, p. 775, 878, § 46(1)/HB 942, was not given effect.

Law reviews.

For article commenting on the 1997 amendment of this Code section, see 14 Ga. St. U.L. Rev. 264 (1997).

46-1-2. Measure of damages for wrongs and injuries by railroad companies generally; venue for actions against railroad companies and electric companies generally.

1. As used in this Code section, the term “electric company” means all corporations engaged in the business of either generating or transmitting electricity for light, heat, power, or other commercial purposes.
2. If any railroad company doing business in this state shall, in violation of any rule or regulation of the Public Service Commission, inflict any wrong or injury on any person, such person shall have a right of action and recovery for such wrong or injury in the county where the wrong or injury occurred and the damages which may be recovered in such actions shall be the same as in actions between individuals, provided that, in cases of willful violation of law, such railroad companies shall be liable for exemplary damages. All such actions under this subsection must be brought within 12 months after the commission of the alleged wrong or injury.
3. Any railroad, electric company, or gas company shall be sued by anyone whose person or property has been injured by such railroad, electric company, or gas company, or by its officers, agents, or employees, for the purpose of recovering damages for such injuries, in the county in which the cause of action originated; and causes of actions on all contracts shall be brought in the county in which the contract in question is made or is to be performed. If the cause of action arises in a county where the railroad, electric company, or gas company liable to suit has no agent, service may be perfected by the issuance of a second original, to be served upon the company in the county of its principal office and place of business, if in this state, and if not, on any agent of such company. In the alternative, if the company has no agent in the county where the cause of action arises, an action may be brought in the county of the residence of such company.
4. Whenever any:
   1. Railroad or electric company incorporated under the laws of this state acquires by purchase, lease, or otherwise the ownership or control of the line of railroad of a competing railroad company in this state, in violation of Article III, Section VI, Paragraph V(c) of the Constitution of the State of Georgia;
   2. Railroad or electric company incorporated under the laws of this state acquires by purchase, lease, or otherwise the ownership or control of the generating plant or transmission line of a competing electric company in this state, in violation of Article III, Section VI, Paragraph V(c) of the Constitution of the State of Georgia; or
   3. Gas company incorporated under the laws of this state acquires by purchase, lease, or otherwise the ownership or control of the natural gas pipeline or distribution system of a competing gas company in this state, in violation of Article III, Section VI, Paragraph V(c) of the Constitution of the State of Georgia;

      the venue of an action brought against the railroad, electric company, or gas company for the purpose of setting aside and having annulled such unlawful act of acquisition shall be in any county through which may run the line of railroad or in any county through which may run the transmission line of such electric company or in any county in which may be located the generating plant of such electric company or in any county through which may run the natural gas pipeline or distribution system so unlawfully acquired.

5. In any cause of action described in this Code section, any judgment rendered in any county other than one designated in this Code section shall be void.
6. The venue provisions of this Code section shall apply to the following electric companies:
   1. An electric company owning a generating plant in one county and having its situs or principal office either in some other county of this state or beyond the limits of this state;
   2. An electric company operating a generating plant, whether under lease or otherwise, in one county and having its situs or principal office either in some other county of this state or beyond the limits of this state;
   3. An electric company owning a transmission line located in one county and having its situs or principal office in some other county of this state or beyond the limits of this state;
   4. An electric company operating, whether under lease or otherwise, a transmission line located in one county and having its situs or principal office in some other county of this state or beyond the limits of this state;
   5. An electric company owning a transmission line located in, or extending through, more than one county; and
   6. An electric company operating, whether under lease or otherwise, a transmission line located in or extending through more than one county.
7. The venue provisions of this Code section shall apply to the following gas companies:
   1. A gas company owning a natural gas pipeline or distribution system located in one county and having its situs or principal office in some other county of this state or beyond the limits of this state; and
   2. A gas company owning a natural gas pipeline or distribution system located in, or extending through, more than one county.

History. Ga. L. 1855-56, p. 154, §§ 1, 2; Ga. L. 1859, p. 48, § 1; Code 1863, § 3317; Code 1868, § 3329; Ga. L. 1869, p. 14, § 1; Code 1873, § 3406; Ga. L. 1878-79, p. 125, § 10; Code 1882, §§ 719, 3406; Ga. L. 1892, p. 59, § 1; Civil Code 1895, §§ 2197, 2334; Ga. L. 1898, p. 50, § 1; Civil Code 1910, §§ 2640, 2798; Ga. L. 1912, p. 66, §§ 1-4; Code 1933, §§ 93-413, 94-1101; Ga. L. 1983, p. 3, § 62; Ga. L. 1984, p. 22, § 46; Ga. L. 1985, p. 149, § 46; Ga. L. 1986, p. 37, § 1; Ga. L. 1992, p. 6, § 46; Ga. L. 2004, p. 631, § 46; Ga. L. 2013, p. 551, § 1/HB 194.

The 2004 amendment, effective May 13, 2004, part of an Act to revise, modernize, and correct the Code, revised punctuation in subsection (d).

The 2013 amendment, effective May 6, 2013, substituted “subsection” for “title” in the last sentence of subsection (b); in subsection (c), in the first sentence, substituted “railroad, electric company, or gas company” for “railroad or electric company”, inserted “, or gas company,” and inserted “causes of”, and, in the second sentence, substituted “railroad, electric company, or gas company ” for “railroad or electric company” ; substituted the present provisions of subsection (d) for the former provisions, which read: “Whenever any railroad or electric company incorporated under the laws of this state acquires by purchase, lease, or otherwise the ownership or control of the line of railroad of a competing railroad company in this state, in violation of Article III, Section VI, Paragraph V(c) of the Constitution of the State of Georgia, or whenever any railroad or electric company incorporated under the laws of this state acquires by purchase, lease, or otherwise the ownership or control of the generating plant or transmission line of a competing electric company in this state, in violation of Article III, Section VI, Paragraph V(c) of the Constitution of the State of Georgia, the venue of an action brought against the railroad or electric company for the purpose of setting aside and having annulled such unlawful act of acquisition shall be in any county through which may run the line of railroad or in any county through which may run the transmission line of such electric company or in which may be located the generating plant of such electric company so unlawfully acquired.”; substituted the present provisions of the introductory paragraph of subsection (f) for the former provisions, which read: “The following electric companies shall be embraced within the provisions of this Code section:”; and added subsection (g). See Editor’s notes for applicability.

Cross references.

Time limitation on actions against railroads for injury to or death of employee, § 34-7-46 .

Venue for actions against lessees or possessors of railroads, § 46-8-310 .

Venue for actions against receivers, trustees, etc., of railroad companies, § 46-8-314 .

Editor’s notes.

Ga. L. 2013, p. 551, § 2/HB 194, not codified by the General Assembly, provides that: “This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall apply to causes of actions arising on or after such effective date.” The Governor approved this Act on May 6, 2013.

Law reviews.

For article discussing aspects of third party practice (impleader) under the Georgia Civil Practice Act (Ch. 11, T. 9), see 4 Ga. St. B. J. 355 (1968).

For article, “Statutes of Limitation: Counterproductive Complexities,” see 37 Mercer L. Rev. 1 (1985).

For annual survey trial practice and procedure, see 38 Mercer L. Rev. 383 (1986).

For annual survey of recent developments, see 38 Mercer L. Rev. 473 (1986).

For annual survey on trial practice and procedure, see 43 Mercer L. Rev. 441 (1991).

For note discussing problems with venue in Georgia, and proposing statutory revisions to improve the resolution of venue questions, see 9 Ga. St. B.J. 254 (1972).

46-1-3. Applicability of powers granted by title to other companies or entities regulated by commission.

Notwithstanding the placement of any provision of law within this title, the powers granted by provisions of one Code section shall be applicable to any other company or entity regulated by the commission, where applicable.

46-1-4. Applicability of title to carriers engaged in interstate commerce.

Unless otherwise provided by Georgia law and not preempted by federal law or unless provided or allowed by federal law, the provisions of this title relating to carriers engaged in the transportation of passengers or goods within this state shall not apply to carriers engaged in interstate commerce.

46-1-5. Duties of Department of Human Services with regard to assistance to low or fixed income consumers of gas and electric service.

By March 2, 1982, the Department of Human Resources (now known as the Department of Human Services) shall develop a program to identify those low or fixed income consumers of gas and electric utility service who, in the department’s opinion, should benefit from public assistance in paying their bills for gas and electric service. The department shall also establish an efficient and economical method for distributing to such consumers all public assistance funds which will be made available, whether by appropriations of state or federal funds, grants, or otherwise. All gas and electric utilities shall cooperate fully with the department in developing and implementing its program. Nothing in this Code section shall limit the commission’s authority to order regulatory alternatives which assist low or fixed income ratepayers.

History. Ga. L. 1981, p. 121, § 8; Ga. L. 2009, p. 453, § 2-20/HB 228.

The 2009 amendment, effective July 1, 2009, inserted “(now known as the Department of Human Services)” in the first sentence of this Code section.

Cross references.

Public assistance generally, Ch. 4, T. 49.

46-1-6. Governmental entities prohibited from restricting utility service connection or sale of fuels based on type; ability to choose utility service.

1. As used in this Code section, the term:
   1. “Governmental entity” means any:
      1. Municipality, public corporation, political subdivision, instrumentality, body politic, authority, district, consolidated government, county, or any board, commission, agency, department, or board of any such entity;
      2. State board, commission, agency, department, or board; or
      3. Other form of government.
   2. “Policy” means an ordinance, resolution, regulation, code, or any other requirement imposed by a governmental entity.
2. No governmental entity of this state shall adopt any policy that prohibits, or has the effect of prohibiting, based on the type or source of energy or fuel to be delivered:
   1. The connection or reconnection of a customer to an electric utility, gas company, or natural, manufactured, or liquefied petroleum gas service;
   2. Sales of liquefied petroleum gas, including, but not limited to, directly to a consumer by a retail establishment; or
   3. Sales of other liquefied petroleum products.
3. Nothing in this Code section shall limit the ability of a governmental entity to choose utility services for properties owned by such governmental entity.

History. Code 1981, § 46-1-6 , enacted by Ga. L. 2021, p. 583, § 1/HB 150.

Effective date. —

This Code section became effective May 6, 2021.

46-2-1. Election of Commissioners; terms of office.

1. The Georgia Public Service Commission shall consist of five members to be elected as provided in this Code section. The members in office on January 1, 2022, and any member appointed or elected to fill a vacancy in such membership prior to the expiration of a term of office shall continue to serve out their respective terms of office. As terms of office expire, new members elected to the commission shall be required to be residents of one of five Public Service Commission Districts as hereafter provided, but each member of the commission shall be elected state wide by the qualified voters of this state who are entitled to vote for members of the General Assembly. Except as otherwise provided in this Code section, the election shall be held under the same rules and regulations as apply to the election of Governor. The Commissioners, who shall give their entire time to the duties of their offices, shall be elected at the general election next preceding the expiration of the terms of office of the respective incumbents. Their terms of office shall be six years and shall expire on December 31.
2. In order to be elected as a member of the commission from a Public Service Commission District, a person shall have resided in that district for at least 12 months prior to election thereto. A person elected as a member of the commission from a Public Service Commission District by the voters of Georgia shall continue to reside in that district during the person’s term of office, or that office shall thereupon become vacant.
3. For the purpose of electing the members of the Public Service Commission, this state shall be divided into five Public Service Commission Districts described as follows:

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4. The first members of the commission elected under this Code section shall be elected thereto on the Tuesday next following the first Monday in November, 2024, from Public Service Commission Districts 3 and 5, shall take office on the first day of January immediately following that election, and shall serve for terms of office of six years and until the election and qualification of their respective successors. Those members of the commission elected thereto on the Tuesday next following the first Monday in November, 2026, from Public Service Commission Districts 1 and 4 shall take office on the first day of January immediately following that election and shall serve for terms of office of six years and until the election and qualification of their respective successors. The member of the commission elected thereto on the Tuesday next following the first Monday in November, 2022, from Public Service Commission District 2 shall take office on the first day of January immediately following that election and shall serve for a term of office of six years and until the election and qualification of his or her respective successor. All future successors to members of the commission whose terms of office are to expire shall be elected at the state-wide general election immediately preceding the expiration of such terms, shall take office on the first day of January immediately following that election, and shall serve for terms of office of six years.

District 001 Appling County Atkinson County Bacon County Baker County Baldwin County Ben Hill County Berrien County Bibb County Bleckley County Brantley County Brooks County Bryan County Calhoun County Camden County Charlton County Chattahoochee County Clay County Clinch County Coffee County Colquitt County Cook County Crawford County Crisp County Decatur County Dodge County Dooly County Dougherty County Early County Echols County Evans County Glynn County Grady County Harris County Houston County Irwin County Jeff Davis County Johnson County Jones County Lanier County Laurens County Lee County Liberty County Long County Lowndes County Macon County Marion County McIntosh County Miller County Mitchell County Monroe County Montgomery County Muscogee County Peach County Pierce County Pulaski County Quitman County Randolph County Schley County Seminole County Stewart County Sumter County Talbot County Tattnall County Taylor County Telfair County Terrell County Thomas County Tift County Toombs County Treutlen County Turner County Twiggs County Ware County Wayne County Webster County Wheeler County Wilcox County Wilkinson County Worth County District 002 Banks County Barrow County Bulloch County Burke County Butts County Candler County Chatham County Clarke County Columbia County Effingham County Elbert County Emanuel County Glascock County Greene County Hancock County Hart County Henry County Jackson County Jasper County Jefferson County Jenkins County Lincoln County Madison County McDuffie County Morgan County Newton County Oconee County Oglethorpe County Putnam County Richmond County Rockdale County Screven County Spalding County Taliaferro County Walton County Warren County Washington County Wilkes County District 003 Clayton County DeKalb County Fulton County District 004 Cherokee County Dawson County Fannin County Forsyth County Franklin County Gilmer County Gwinnett County Habersham County Hall County Lumpkin County Murray County Pickens County Rabun County Stephens County Towns County Union County White County Whitfield County District 005 Bartow County Carroll County Catoosa County Chattooga County Cobb County Coweta County Dade County Douglas County Fayette County Floyd County Gordon County Haralson County Heard County Lamar County Meriwether County Paulding County Pike County Polk County Troup County Upson County Walker County

History. Ga. L. 1878-79, p. 125, § 1; Code 1882, § 719a; Civil Code 1895, § 2185; Ga. L. 1906, p. 100, §§ 1-3; Ga. L. 1907, p. 72, § 1; Civil Code 1910, §§ 2615, 2616; Ga. L. 1922, p. 143, § 1; Code 1933, § 93-201; Ga. L. 1998, p. 1530, §§ 1, 2; Ga. L. 2002, p. 359, §§ 1, 2; Ga. L. 2012, p. 642, § 1/SB 382; Ga. L. 2022, p. 472, § 1/SB 472.

The 2002 amendment, effective April 11, 2002, rewrote the descriptions of Public Service Commission Districts 1 through 5 following the colon at the end of the introductory language in subsection (c) and added subsection (e).

The 2012 amendment, effective May 1, 2012, in subsection (a), substituted “January 1, 2012” for “January 1, 2000”; in subsection (b), twice substituted “shall” for “must” in the first and second sentences and added a comma following “office” in the second sentence; in the introductory paragraph of subsection (c), substituted “this state ” for “the state” and rewrote the descriptions of the Public Service Commission Districts 1 through 5; in subsection (d), substituted “November, 2012” for “November, 2000” in the first sentence, substituted “November, 2014” for “November, 2002” in the second sentence, and substituted “November, 2016” for “November, 2004” in the third sentence; and deleted former subsection (e), relating to definitions and conditions.

The 2022 amendment, effective March 4, 2022, substituted “January 1, 2022” for “January 1, 2012” in subsection (a); rewrote the descriptions of Public Service Commission Districts 1 through 5 following the colon at the end of the introductory language in subsection (c); and, in subsection (d), substituted “November, 2024” for “November, 2012” in the first sentence, “November, 2026” for “November, 2014” in the second sentence, and “November, 2022” for “November, 2016” in the third sentence.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 2022, “Chattooga County” was substituted for “ChattooCounty County” in the entry for Public Service Commission District 5.

46-2-2. Qualifications of Commissioners; restriction on any interest in companies under jurisdiction of commission; disqualification of Commissioner.

1. Any person who is at least 30 years of age, is qualified to vote as an elector, and is not directly or indirectly interested in any mercantile business or any corporation that is controlled by or that participates in the benefit of any pool, combination, trust, contract, or arrangement that has the effect of increasing or tending to increase the cost to the public of carriage, heat, light, power, or any commodity or merchandise sold to the public shall be eligible for membership on the commission, without regard to his experience in law or in the utility or transportation business.
2. During their terms of office, the Commissioners shall not, jointly or severally, or in any way, be the holders of any stock or bonds, or be agents or employees of any company, or have any interest in any company under the jurisdiction of the commission. If any Commissioner becomes disqualified in any way, he shall at once remove the disqualification or resign; and on failure to do so he shall be suspended from office by the Governor.

History. Ga. L. 1878-79, p. 125, § 1; Code 1882, § 719a; Civil Code 1895, § 2185; Ga. L. 1907, p. 72, § 2; Civil Code 1910, § 2620; Code 1933, § 93-202.

Cross references.

Conflicts of interest of state officials and employees generally, § 45-10-20 et seq.

46-2-3. Oath of office of Commissioners.

The Commissioners shall take an oath of office, the wording of which shall be determined by the Governor.

History. Ga. L. 1878-79, p. 125, § 1; Code 1882, § 719a; Civil Code 1895, § 2185; Civil Code 1910, § 2619; Code 1933, § 93-203.

46-2-4. Filling of vacancies on commission.

Any vacancy in the commission shall be filled by the Governor. Any person so appointed shall hold his office until the next regular general election and until his successor for the balance of the unexpired term has been elected and has qualified.

History. Ga. L. 1906, p. 100, § 4; Civil Code 1910, § 2617; Code 1933, § 93-204.

46-2-5. Chairperson of commission; selection.

1. There shall be a chairperson of the commission. The chairperson shall be selected by a simple majority of the members of the commission. The chairperson serving on December 31, 2012, shall serve for a term of office as chairperson until January 1, 2013, or until his or her term as a member of the commission shall expire, whichever is shorter. Each subsequent chairperson shall serve for a two-year term of office as chairperson or until his or her term as a member of the commission shall expire, whichever is shorter. Any four members of the commission may call for an election of a chairperson at any time prior to the end of the term of a chairperson; provided, however, that such elections shall not be held more than twice per calendar year, except in the case of a vacancy by the chairperson; and provided, further, that any chairperson so elected shall serve for a two-year term of office as chairperson or until his or her term as a member of the commission shall expire, whichever is shorter. No commissioner shall be elected or serve as chairperson for more than two consecutive terms.
2. The chairperson shall give his or her entire time to the duties of the office.

History. Ga. L. 1907, p. 72, § 3; Civil Code 1910, § 2622; Ga. L. 1919, p. 92, § 2; Ga. L. 1922, p. 143, § 7; Code 1933, § 93-206; Ga. L. 1947, p. 673, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 613, §§ 1-5; Ga. L. 1960, p. 57, §§ 1, 2; Ga. L. 1963, p. 651, § 1; Ga. L. 1967, p. 95, § 1; Ga. L. 1992, p. 2335, § 1; Ga. L. 2012, p. 1176, § 1/SB 483.

The 2012 amendment, effective December 31, 2012, rewrote subsection (a); deleted former subsections (b) and (c); redesignated former subsection (d) as present subsection (b); and rewrote subsection (b).

Code Commission notes.

Pursuant to Code Section 28-9-5, in 1992, “April 20, 1992,” was substituted for “this Code section becomes effective” in the third sentence of subsection (a).

Pursuant to Code Section 28-9-5, in 2012, “serving on December 31, 2012,” was substituted for “currently serving on the effective date of this Code section” in the second sentence of subsection (a).

46-2-6. Salary of Commissioners.

The salary of each Commissioner shall be as provided in Code Section 45-7-4, provided that nothing in this Code section or in Code Section 46-2-5 shall entitle an emeritus commissioner to a salary greater than $12,000.00 per annum.

History. Ga. L. 1878-79, p. 125, § 1; Code 1882, § 719a; Civil Code 1895, § 2185; Ga. L. 1907, p. 72, § 15; Civil Code 1910, §§ 2621, 2670; Ga. L. 1919, p. 92, §§ 1, 2; Ga. L. 1919, p. 94, § 1; Ga. L. 1922, p. 143, § 7; Ga. L. 1931, p. 7, § 99; Code 1933, § 93-208; Ga. L. 1947, p. 673, § 1; Ga. L. 1951, p. 668, § 1; Ga. L. 1953, Jan.-Feb. Sess., p. 613, §§ 1-5; Ga. L. 1960, p. 57, §§ 1, 2; Ga. L. 1963, p. 651, § 1; Ga. L. 1967, p. 95, § 2.

46-2-7. Employment of officers, experts, and other employees by commission; compensation of employees.

The commission shall have power to employ such officers, experts, engineers, statisticians, accountants, inspectors, clerks, and other employees as it may deem necessary to perform the duties and exercise the powers conferred by law upon the commission. The compensation of such employees shall be fixed by the commission at such sums as it may deem reasonable and proper.

History. Ga. L. 1907, p. 72, § 4; Civil Code 1910, § 2623; Ga. L. 1922, p. 143, § 2; Code 1933, § 93-207.

Cross references.

Applicability of conflicts of interest laws to full-time state employees hired by commission to assist commission in fulfilling duties and responsibilities, § 45-10-20.

46-2-7.1. Director of utilities.

1. On or before July 1, 1981, the commission shall employ a director of utilities, who shall serve at the pleasure of the commission and whose salary shall be set by the commission.
2. The director of utilities shall:
   1. Direct the activities of the utility divisions and sections;
   2. Manage and coordinate the commission’s preparation of rate cases;
   3. Schedule and coordinate all in-house, reactive, regular, and engineering audits;
   4. Direct all utility personnel and the preparation of that section of the commission’s budget; and
   5. Perform such other duties as the commission may establish by order.

History. Code 1933, § 93-207.1, enacted by Ga. L. 1981, p. 121, § 3.

46-2-7.2. Public information officer.

1. On or before September 1, 1981, the commission shall employ a public information officer, who shall serve at the pleasure of the commission.
2. The public information officer shall:
   1. Report directly to the executive secretary;
   2. Maintain the commission’s public information files;
   3. Coordinate official commission press releases and media relations; and
   4. Perform such other duties as the executive secretary may establish.

History. Code 1933, § 93-207.2, enacted by Ga. L. 1981, p. 121, § 3.

46-2-8. Payment of salaries and expenses by commission; appropriations for salaries and expenses; designation of Public Service Commission Fund.

The salaries fixed by the commission for its officers, experts, engineers, statisticians, accountants, inspectors, clerks, and other employees, and fixed by Code Section 45-7-4 for Commissioners, shall be paid monthly from the funds provided for the use of the commission after being approved by the commission. All expenses incurred by the commission, including the actual and necessary traveling and other expenses and disbursements of the Commissioners, and of officers and employees, incurred while on business of the commission, shall be paid from the funds provided for the use of the commission after being approved by the commission. The necessary expenses of conducting the business of the commission and the salaries of the Commissioners shall be provided for by appropriations made for such purposes. The funds assessed and collected as provided in Code Section 46-2-10 shall be specially designated as the Public Service Commission Fund and shall be expended only as provided and directed in this title.

History. Ga. L. 1922, p. 143, § 7; Ga. L. 1931, p. 7, § 99; Code 1933, § 93-209; Ga. L. 1953, Jan.-Feb. Sess., p. 613, §§ 1-5; Ga. L. 1960, p. 57, § 2.

46-2-9. Domicile of commission; jurisdiction of actions involving commission or business entities regulated by commission; furnishing commission with office and supplies.

1. The domicile of the commission is fixed at the capital; and no courts of this state other than those of Fulton County shall have or take jurisdiction in any action brought or instituted against the commission or on account of any of its orders or rules, provided that nothing in this Code section shall prevent the courts of the county in which is located the principal office of a business entity regulated by the commission from having or taking jurisdiction in any action brought or instituted against that business entity as a result of any such commission order or rule.
2. The commission shall be furnished with necessary furniture and stationery and an office in Atlanta.

History. Ga. L. 1878-79, p. 125, § 2; Civil Code 1895, § 2186; Ga. L. 1905, p. 95, §§ 1, 2; Ga. L. 1907, p. 72, § 14; Civil Code 1910, §§ 2625, 2627; Code 1933, § 93-211; Ga. L. 1976, p. 418, § 1.

46-2-10. Payment of special fee by corporations and utilities subject to jurisdiction of commission; notice of amount due; procedure on default.

1. There shall be paid by all public service corporations and utilities which are subject to the jurisdiction of the Public Service Commission a special fee in addition to all other fees required by law. Such fee shall be fixed by the state revenue commissioner upon each of such public service corporations or utilities according to the gross revenues of each such public service corporation or utility resulting from intrastate service regulated by the commission, as ascertained by the state revenue commissioner from reports filed with the state revenue commissioner by such public service corporations and utilities and from gross revenues reported for income tax purposes pursuant to Chapter 7 of Title 48, and shall be apportioned among such public service corporations or utilities upon the basis of such gross revenues so as to produce a revenue of $1,050,000.00 per annum.  Notwithstanding any other provisions of this Code section, the gross revenues of a telephone utility shall not include revenues of such a utility received from the collection of interstate tolls, interstate access or subscriber line charges, interstate call charges, amounts paid by a telecommunications service provider to any other telecommunications service provider for carrier access charges, or any charges for any unregulated services. Any revenues collected by a local exchange company as a billing and collection agent shall be excluded from the calculation of the gross revenues of the local exchange company.
2. 1. Not later than December 1, 1994, the state revenue commissioner shall notify each public service corporation or utility of the state of the amount due by it under this Code section, and the fee shall be paid into the general fund of the state by January 20, 1995.  Such sum of $1,050,000.00 shall be available for appropriation in an amount sufficient to cover the cost of operating the Public Service Commission.
   2. Effective January 1, 1995, not later than April 1 of each year, the state revenue commissioner shall notify each public service corporation or utility of the state of the amount due by it under this Code section, and the fee shall be paid into the general fund of the state by July 1 of such year. Such sum of $1,050,000.00 shall be available for appropriation in an amount sufficient to cover the cost of operating the Public Service Commission.
3. In case of default in payment by any public service corporation or utility of the fee provided for in this Code section, the state revenue commissioner shall proceed to collect the same in the same manner as franchise taxes are collected.

History. Ga. L. 1922, p. 143, § 6; Ga. L. 1931, p. 7, § 99; Code 1933, § 93-210; Ga. L. 1960, p. 168, § 1; Ga. L. 1973, p. 664, § 1; Ga. L. 1982, p. 1063, §§ 1, 2; Ga. L. 1988, p. 263, § 1; Ga. L. 1990, p. 856, § 1; Ga. L. 1994, p. 630, § 1.

46-2-20. Jurisdiction of commission generally; powers and duties of commission generally.

1. Except as otherwise provided by law, the commission shall have the general supervision of all common carriers, express companies, railroad or street railroad companies, dock or wharfage companies, terminal or terminal station companies, telephone companies, gas or electric light and power companies, and persons or private companies who operate rapid rail passenger service lines within this state; provided, however, that nothing in this subsection shall be deemed to extend the jurisdiction of the commission to include the operations of the Metropolitan Atlanta Rapid Transit Authority created in an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended.
2. The commission may hear complaints; in addition, it is also authorized to perform the duties imposed upon it of its own initiative.
3. The commission may, either by general rules or by special orders in particular cases, require all companies under its supervision to establish and maintain such public services and facilities as may be reasonable and just.
4. The commission may require common carriers and persons or private companies who operate rapid rail passenger service lines to publish their schedules in newspapers of towns through which their lines extend, in such manner as may be reasonable and as the public convenience demands.
5. The commission shall have authority to examine the affairs of all companies under its supervision and to keep informed as to their general condition, their capitalization, their franchises, and the manner in which the lines owned, leased, or controlled by them are managed, conducted, and operated, not only with respect to the adequacy, security, and accommodation afforded by their service to the public and their employees but also with reference to their compliance with all laws, orders of the commission, and charter requirements.
6. The commission shall have the power and authority, whenever it deems advisable, to prescribe, establish, and order a uniform system of accounts to be used by railroads and other companies over which it has jurisdiction, the same to be, as far as practicable, in conformity with the system of accounts prescribed by the Interstate Commerce Commission. The commission shall also have the power and authority to examine all books, contracts, records, papers, and documents of any person subject to its supervision and to compel the production thereof.
7. The commission shall have the power, through any of its members, at its discretion, to make personal visits to the offices and places of business of the companies under its supervision for the purpose of examination. Any Commissioner making a personal visit pursuant to this subsection shall have full power and authority to examine the agents and employees of any such company, under oath or otherwise, in order to procure information deemed by the Commissioner necessary to the work of the commission or of value to the public.
8. Nothing in this Code section shall be so construed as to repeal or abrogate any existing law or rule of the commission as to notice or hearings to be accorded to any person interested in the rates fixed by, or in the orders, rules, or regulations promulgated by, the commission before the same are issued. Neither shall anything in this Code section repeal the law of this state as to notice by publication of a change in rates.
9. The commission shall have the power and authority to prescribe rules and regulations for the safe installation and safe operation of all natural gas transmission and distribution facilities within this state, including, without limitation, all natural gas transmission and distribution facilities which are owned and operated by municipalities within this state.
10. Notwithstanding any other provision of law, the authority and jurisdiction of the commission shall not extend to persons or companies who are engaged in the retail sale of natural gas to the public for use as a fuel in motor vehicles and who are not otherwise subject to the authority and jurisdiction of the commission.

History. Ga. L. 1907, p. 72, § 6; Civil Code 1910, § 2663; Ga. L. 1922, p. 143, §§ 3, 5; Code 1933, § 93-307; Ga. L. 1967, p. 650, § 1; Ga. L. 1989, p. 692, § 1; Ga. L. 1990, p. 856, § 2; Ga. L. 1992, p. 1647, § 1; Ga. L. 2012, p. 847, § 3/HB 1115.

The 2012 amendment, effective July 1, 2012, deleted “and telegraph” following “telephone” near the middle of subsection (a).

Cross references.

Authority of commission to promulgate safety rules and regulations for motor vehicles within its jurisdiction, § 40-8-2 .

Authority of commission to contract with state agencies to use state employees, § 45-10-20.

Jurisdiction of commission with regard to projects of Municipal Electric Authority of Georgia, § 46-3-152 .

Rapid Rail Passenger Service, Chapter 8A, Title 46.

Code Commission notes.

Pursuant to Code section 28-9-5, in 1989, a comma was inserted following “promulgated by” in subsection (h).

Law reviews.

For article, “The Chevron Two-Step in Georgia’s Administrative Law,” see 46 Ga. L. Rev. 871 (2012).

46-2-21. Extension of commission’s powers and duties to street railroads, telegraph companies, telephone companies, and gas and electric light and power companies.

1. The powers and duties conferred by law prior to August 23, 1907, upon the commission and its authority and control shall extend to street railroads and to companies owning, leasing, or operating street railroads in this state, provided that nothing in this Code section shall be construed to impair any valid contract between any municipality and any such company in force on that date; provided, further, that this Code section shall not operate to repeal any municipal ordinance existing on that date; nor shall it impair or invalidate any contract or ordinance of any municipality made or adopted since that date as to the public uses of such company, which contract or ordinance has received the assent of the commission.
2. The powers and duties conferred by law prior to August 23, 1907, upon the commission and its authority and control shall also extend to:
   1. Docks and wharves, and companies owning, leasing, or operating the same;
   2. Terminals or terminal stations, and companies owning, leasing, or operating the same;
   3. Cotton compress corporations or associations, and companies owning, leasing, or operating the same;
   4. Telegraph or telephone companies, or persons owning, leasing, or operating a public telephone service or telephone lines in this state; and
   5. Gas and electric light and power companies, or persons owning, leasing, or operating public gas plants or electric light and power plants furnishing service to the public.

History. Ga. L. 1907, p. 72, § 5; Ga. L. 1908, p. 67, § 1; Civil Code 1910, § 2662; Ga. L. 1922, p. 143, § 1; Code 1933, § 93-304.

Law reviews.

For survey article on local government law, see 34 Mercer L. Rev. 225 (1982).

46-2-22. [Reserved] Jurisdiction of commission over express companies and telegraph companies.

History. Ga. L. 1890-91, p. 151, § 1; Civil Code 1895, § 2217; Civil Code 1910, § 2660; Ga. L. 1922, p. 143, § 1; Code 1933, § 93-305; repealed by Ga. L. 2012, p. 847, § 4/HB 1115, effective July 1, 2012.

Editor’s notes.

Ga. L. 2012, p. 847, § 4/HB 1115 repealed and reserved this Code section, effective July 1, 2012.

46-2-23. Rate-making power of commission generally; special provisions concerning telecommunications companies.

1. The commission shall have exclusive power to determine what are just and reasonable rates and charges to be made by any person, firm, or corporation subject to its jurisdiction.
2. As to those telecommunications companies subject to the jurisdiction of the commission, the commission is not required to fix and determine specific rates, tariffs, or charges for the services offered by said telecommunications companies and in lieu thereof may on application of an interested party or on its own motion after public notice and hearing:
   1. Totally deregulate a service;
   2. Totally eliminate any tariffs on a service;
   3. Eliminate tariff rates for a service but retain tariffs for service standards and requirements; or
   4. Eliminate tariff rates for a service but require that notice of any rate changes be provided to the commission.
3. In determining what actions, if any, are to be taken on applications under subsection (b) of this Code section, the commission shall conduct hearings at which it shall consider the following factors:
   1. The extent to which competing telecommunications services are available from competitive providers in the relevant geographic market;
   2. The ability of competitive providers to make functionally equivalent or substitute services readily available;
   3. The number and size of competitive providers of service;
   4. The overall impact of the proposed regulatory change on the continued availability of existing services at just and reasonable rates;
   5. The impact of the proposed regulatory change upon efforts to promote universal availability of basic telecommunications services at affordable rates and to permit telecommunications companies subject to the jurisdiction of the commission to respond to competitive thrusts; and
   6. Such other factors as the commission may determine are in the public interest.
4. Nothing in this Code section shall authorize the application of subsection (b) of this Code section to any service unless functionally equivalent or substitute services are readily available from competitive providers in the relevant geographic market. This finding must be made on the record after public hearing.
5. Any telecommunications service deregulated or detariffed under this Code section may be reregulated or resubjected to tariffing by the commission if the commission finds, through a proceeding initiated on its own or upon application by an interested party, that such reregulation or retariffing is in the public interest.
6. Nothing in this Code section shall be interpreted as requiring the commission to alter, amend, or repeal any rule or regulation which relates to any telecommunications company and which has been adopted by the commission or which is under consideration for adoption by the commission as of April 14, 1988.
7. No telecommunications company may use current revenues earned or expenses incurred in conjunction with services subject to regulation to subsidize services which are not regulated or tariffed. The commission may adopt procedural rules as necessary to implement this subsection.

History. Code 1981, § 46-2-23 , enacted by Ga. L. 1981, Ex. Sess., p. 8; Ga. L. 1988, p. 1988, § 1; Ga. L. 1990, p. 8, § 46; Ga. L. 1992, p. 6, § 46; Ga. L. 2002, p. 415, § 46; Ga. L. 2009, p. 303, §§ 12, 15/HB 117; Ga. L. 2012, p. 847, § 5/HB 1115.

The 2002 amendment, effective April 18, 2002, part of an Act to revise, modernize, and correct the Code, deleted former subsection (h), which read: “Nothing in this Code section shall be interpreted as amending, modifying, altering, or repealing Chapter 6 of this title, known as the ‘Georgia Radio Utility Act.’ ” and redesignated former subsection (i) as present subsection (h).

The 2009 amendment, effective April 30, 2009, in subsection (h), substituted “House Energy, Utilities and Telecommunications Committee” for “Industry Committee of the House of Representatives” and substituted “Senate Regulated Industries and Utilities Committee” for “Finance and Public Utilities Committee of the Senate”. See Editor’s notes for intent.

The 2012 amendment, effective July 1, 2012, deleted former subsection (h), which read: “Beginning one year after deregulation or eliminating tariffs on a service, the utility will file within 60 days of such anniversary date with the commission a report showing the rates or tariffs for such service on the effective date of deregulation or detariffing and the rates or tariffs on the anniversary date. Such reports will continue to be filed on an updated basis annually for a period of five years. The commission may prescribe the form and content of such reports. The commission will thereafter as soon as practicable file a summary of the results and contents of such reports with the House Energy, Utilities and Telecommunications Committee and the Senate Regulated Industries and Utilities Committee.”

Cross references.

Authority of General Assembly regarding regulation of public utility rates, Ga. Const. 1983, Art. III, Sec. VI, Para. V.

Prohibition against gratuities, Ga. Const. 1983, Art. III, Sec. VI, Para. VI.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 1988, “April 14, 1988” was substituted for “the effective date of this Code section” at the end of subsection (f) and subsections (f.1) and (g) were redesignated as subsections (g) and (h), respectively.

Editor’s notes.

Ga. L. 1990, p. 8, § 55, repealed Ga. L. 1988, p. 1988, § 2, providing for certain reports after deregulation or elimination of tariffs on a service. These provisions may now be found in subsection (h) of this Code section.

Ga. L. 2009, p. 303, § 20, not codified by the General Assembly, provides that: “This Act is intended to reflect the current internal organization of the Georgia Senate and House of Representatives and is not otherwise intended to change substantive law. In the event of a conflict with any other Act of the 2009 General Assembly, such other Act shall control over this Act.”

Law reviews.

For annual survey on administrative law, see 61 Mercer L. Rev. 1 (2009).

46-2-23.1. “Alternative form of regulation” defined; filing; notice; approval; release of interstate pipeline capacity.

1. As used in this Code section, the term “alternative form of regulation” means a method of establishing just and reasonable rates and charges for a gas company by performance based regulation without regard to methods based strictly upon cost of service, rate base, and rate of return. Performance based regulation may include without limitation one or more of the following features: earnings sharing, price caps, price-indexing formulas, ranges of authorized rates of return, and the reduction or suspension of regulatory requirements.
2. A gas company may from time to time file an application with the commission to have its rates, charges, classifications, and services regulated under an alternative form of regulation. Within ten days of the filing, the gas company shall publish a notice generally describing the application in a newspaper or newspapers with general circulation in its service territory.
3. After notice and hearing the commission may approve the plan, or approve it with modifications, if the commission determines that the application is in the public interest and will produce just and reasonable rates, after taking into consideration the extent to which the application:
   1. Is designed to and is likely to produce lower prices for consumers of natural gas in Georgia;
   2. Will provide incentives for the gas company to lower its costs and rates;
   3. Will provide incentives to improve the efficiency and productivity of the gas company;
   4. Will foster the long-term provision of natural gas service in a manner that will improve the quality and choices of service;
   5. Is consistent with maintenance and enhancement of safe, adequate, and reliable service and will maintain or improve preexisting service quality and consumer protection safeguards;
   6. Will not result in cross-subsidization among or between groups of gas company customers;
   7. Will not result in cross-subsidization among or between the portion of the gas company’s business or operations subject to the alternative form of regulation and any unregulated portion of the business or operations of the gas company or of any of its affiliates;
   8. Will reduce regulatory delay and cost; and
   9. Will tend to enhance economic activity in the affected service territory.
4. Performance based regulation adopted by the commission as an alternative form of regulation shall provide for the following:
   1. Equal and symmetric opportunities to earn above and below the performance standard;
   2. Performance incentives based upon conditions within the control of the management of the gas company; and
   3. Adjustments from time to time for the net effect of changes in tax rates, other costs imposed by law, and the cost of capital.
5. Where an application for an alternative form of regulation has been filed by a gas company and the commission determines that the proposal does not satisfy the requirements of this Code section, it may either reject the proposal or issue an order approving an alternative with such modifications as the commission deems necessary to satisfy the requirements of this Code section. The commission shall determine and prescribe in any such order establishing rates and charges the revenue requirements of the gas company filing the application.
6. An order adopting an alternative form of regulation may include:
   1. Terms and conditions for establishing new services, withdrawing services, price changes to services, and services by contract to individual customers;
   2. Terms and conditions necessary to achieve the objectives contained in subsection (c) of this Code section;
   3. General or specific authorization for changes in rates, charges, classifications, or services such that the provisions of subsection (a) of Code Section 46-2-25 do not require 30 days’ notice and commission approval before such change or changes may go into effect; and
   4. Other rates, terms, and conditions that are consistent with the objectives and requirements of subsection (c) of this Code section.
7. Except as otherwise provided in this Code section, the provisions of this title relating to the rates, charges, and terms of service of a gas company shall apply to rates, charges, and terms of service established pursuant to this Code section.
8. Any special or negotiated contract between a gas company and a retail customer approved by the commission shall not be invalidated or modified by the provisions of this Code section.
9. 1. Neither the provisions of this Code section nor the provisions of Article 5 of Chapter 4 of this title shall prohibit a gas company from releasing interstate pipeline capacity available to it from time to time and not required to serve the requirements of its retail customers and marketers and from making sales of gas with or without interstate transportation capacity to municipal corporations, other local gas distribution companies, or marketers and end users connected to an interstate pipeline company or connected to another local distribution company; provided, however, that where net benefits to the firm retail customers who are receiving commodity sales service from the gas company accrue:
      1. Twenty percent of the revenues from the release of interstate pipeline capacity for the purposes of transporting gas to end users in Georgia shall be allocated to the gas company, and the remaining 80 percent of such revenues shall be credited to the costs of gas sold by the gas company to firm retail customers;
      2. Ten percent of the revenues from the release of interstate pipeline capacity for the purpose of transporting gas to end users outside of Georgia shall be allocated to the gas company, and the remaining 90 percent of such revenues shall be credited to the costs of gas sold by the gas company to firm retail customers; and
      3. Fifty percent of the net margin from the sale of gas, with or without interstate capacity, to municipal corporations, other local gas distribution companies, or marketers and end users connected to an interstate pipeline company or connected to another local distribution company shall be allocated to the gas company, and the remaining 50 percent of such net margins shall be credited to the costs of gas sold by the gas company to firm retail customers; provided, however, that if as a result of such sale, the then existing natural gas requirements of retail customers in Georgia cannot be supplied physically, all of such net margin shall be credited to the costs of gas. The net margin shall be calculated by subtracting all variable costs associated with the transaction from the revenues generated by the transaction. The costs recovered by the gas company through such transactions shall be credited to the gas costs payable by retail customers of the gas company.
   2. Where a universal service fund has been created by the commission pursuant to Code Section 46-4-161 for a gas company which is an electing distribution company, as defined in paragraph (10) of Code Section 46-4-152, the shares that are to be credited to the costs of gas sold to firm retail customers under subparagraphs (A), (B), and (C) of paragraph (1) of this subsection shall be allocated to such fund, and the costs recovered through a transaction described in subparagraph (C) of this subsection shall be allocated to such company.
   3. Any gas company which engages in a transaction of a type described in paragraph (1) of this subsection, which results in the allocation to the gas company of a share of the revenues or net margin therefrom, shall make a report to the commission annually describing each such transaction and explaining the benefits resulting to firm retail customers from each such transaction.

History. Code 1981, § 46-2-23.1 , enacted by Ga. L. 1997, p. 798, § 2; Ga. L. 2015, p. 1088, § 35/SB 148.

The 2015 amendment, effective July 1, 2015, deleted the former last sentence of paragraph (i)(3), which read: “Such report shall be served on the consumer’s utility counsel division of the Governor’s Office of Consumer Affairs.”

Law reviews.

For article commenting on the enactment of this section, see 14 Ga. St. U.L. Rev. 264 (1997).

46-2-24. Consideration by commission of quality of service in determining just and reasonable rates and charges.

In determining what are just and reasonable rates and charges to be made by any person, firm, or corporation (referred to in this Code section as a “utility”) subject to its jurisdiction, the commission is authorized and is directed to consider the quality of the service rendered by such utility.

History. Code 1933, § 93-309.1, enacted by Ga. L. 1973, p. 677, § 1.

Cross references.

Limitation on authority of General Assembly regarding regulation of public utility rates, Ga. Const. 1983, Art. III, Sec. VI, Para. V.

46-2-25. Procedure for changing any rate, charge, classification, or service; recovery of financing costs.

1. No person, firm, or corporation (referred to in this Code section as a “utility”) subject to the jurisdiction of the commission shall make any change in any rate, charge, classification, or service subject to the jurisdiction of the commission, or in any rule or regulation relating thereto, except after 30 days’ notice to the commission and to the public, unless the commission otherwise orders, or unless the commission has previously authorized or approved the change. Such notice shall be given by filing with the commission and keeping open for public inspection new schedules stating plainly the changes to be made in the schedules then in force and the time when the changes will go into effect. The commission, for good cause shown, may allow changes to take effect without requiring the 30 days’ notice by an order specifying the changes to be made, the time when they shall take effect, and the manner in which they shall be filed and published.
2. Whenever any new schedule is filed pursuant to subsection (a) of this Code section, the commission shall have authority, either upon written complaint or upon its own initiative without complaint, at once, and, if it so orders, without answer or formal pleading by the utility but upon reasonable notice, to enter upon a hearing concerning the lawfulness of such rate, charge, classification, or service. Pending such hearing and the decision thereon, the commission, upon filing with such schedule and delivering to the utility affected thereby a statement in writing of its reasons for such suspension, may suspend the operation of such schedule and defer the use of such rate, charge, classification, or service, but not for a period longer than five months beyond the time when it would otherwise go into effect, provided that the commission may apply to the Superior Court of Fulton County for an extension of such period, as provided for in Code Section 46-2-57. After such hearings as are required, whether they are completed before or after the rate, charge, classification, or service goes into effect, the commission may make such orders as are proper with reference thereto within the authority vested in the commission. The commission is empowered to reduce or revoke any such suspension with respect to all or any part of such schedule. If the proceeding has not been concluded and an order not made at the expiration of the suspension period, the proposed change of rate, charge, classification, or service shall go into effect at the end of such period; but in case of a proposed increased rate or charge, the commission shall by order require the interested utility to keep accurate account in detail of all amounts received by reason of such increase, specifying by whom and in whose behalf such amounts were paid; and upon completion of the hearing and the rendering of a decision, the commission shall by further order require such utility to refund, with interest at the maximum legal rate, in such manner as the commission may direct, such portion of such increased rates or charges as by its decision shall be found not justified. Any portion of such refunds not thus refunded to patrons or customers of the utility shall be refunded or disposed of by the utility as the commission may direct, provided that no such funds shall accrue to the benefit of the utility. At any hearing involving a rate or charge sought to be increased, the burden of proof to show that the increased rate or charge is just and reasonable shall be upon the utility, and the commission shall give to the hearing and decision of such questions preference over other questions pending before it and decide the same as speedily as possible.
3. Before any increased rate or charge shall go into effect without the approval of the commission, the commission shall by order require the interested utility to file with the commission a bond written by a surety who is approved by the commission and who is authorized to transact business in this state. The bond shall be fixed by the commission in an amount not to exceed $250,000.00. The bond shall be payable to the Governor and conditioned upon the faithful performance of the requirements of the refund order entered by the commission, the requirements of this Code section, and the requirements of the rules and regulations of the commission.

   (c.1) (1) Notwithstanding any provision to the contrary, a utility shall recover from its customers, as provided in this subsection, the costs of financing associated with the construction of a nuclear generating plant which has been certified by the commission prior to January 1, 2018. The financing charges shall accrue on all applicable certified costs as they are recorded in the utility’s construction work in progress accounts pursuant to generally accepted accounting and regulatory principles as approved by the commission. The financing costs shall be based on the utility’s actual cost of debt, as reflected in its annual surveillance report filed with the commission, and based on the authorized cost of equity capital and capital structure as determined by the commission when setting the utility’s current base rates. These financing costs shall be recovered from each customer through a separate rate tariff and allocated on an equal percentage basis to standard base tariffs which are designed to collect embedded capacity costs. The commission shall retain the discretion to consider the effect of this tariff when setting the level of any senior or low income assistance it may authorize; provided, however, that the income qualification for such assistance shall be 200 percent of the federal poverty level.

4. Any action taken by the commission under this Code section shall be reduced to writing by the commission and signed by the chairman and secretary thereof. All such actions and orders shall be effective from the date such actions are reduced to writing and are signed as provided by this subsection. No such action or order of the commission may be given retroactive effect. A full and complete record shall be kept of the votes taken in connection with any such action, said record to be entered upon the official minutes of the commission.
5. Nothing in this Code section shall be construed as limiting the authority granted to the commission by Code Sections 46-2-20 and 46-2-23 to initiate an earnings review hearing.

(2) The commission shall have the authority to authorize any specific accounting treatment for the costs recovered pursuant to this subsection and to review whether costs recovered pursuant to this subsection are being properly recorded.

(3) (A) For any nuclear generating plant certified by the commission on or after July 1, 2009, the utility may begin recovering the costs of financing the construction of the nuclear generating plant at any time within five years after the date on which such nuclear generating plant is certified. Any such costs incurred between the time the plant is certified and the time the utility begins recovering its cost shall be accrued, capitalized, and included in the balance of the account and then amortized over the next five years following the date on which the utility begins recovering the costs of financing the construction and shall be recovered with one-fifth of those deferred costs being recovered each year for five years.

(B) For any nuclear generating plant certified by the commission on or after January 1, 2009, and before July 1, 2009, the utility shall begin recovering on January 1, 2011, any costs of financing the construction of the nuclear generating plant. Any such costs incurred prior to January 1, 2011, shall be accrued, capitalized, and included in the balance of the account and then amortized over the next five years following January 1, 2011, and shall be recovered with one-fifth of those deferred costs being recovered each year for five years.

(4) The costs recoverable pursuant to this subsection shall be recalculated and the level of the charges reset annually if necessary to reflect the level of construction costs expected to be incurred in the next 12 months consistent with the certificate and the financing costs expected to be incurred for the next 12 months together with a balanced accounting of actual expenditures and financing costs incurred in the preceding period.

(5) The financing costs associated with a nuclear generating plant which has been certified by the commission shall continue to be recovered between the time that the generating plant begins commercial operation and until the next general rate case filed by the utility becomes effective, at which time the financing costs being collected for any generating plants which are then in commercial operation shall be included in the general revenue requirements of the utility and collected in the general base rates of the utility.

History. Code 1933, § 93-307.1, enacted by Ga. L. 1972, p. 137, § 1; Ga. L. 1976, p. 419, § 1; Ga. L. 2002, p. 475, § 2; Ga. L. 2009, p. 39, § 2/SB 31; Ga. L. 2018, p. 1085, § 1/SB 355.

The 2002 amendment, effective April 25, 2002, added subsection (e).

The 2009 amendment, effective April 21, 2009, added subsection (c.1).

The 2018 amendment, effective July 1, 2018, added “prior to January 1, 2018” at the end of the first sentence of paragraph (c.1)(1).

Cross references.

Authority of General Assembly regarding regulation of public utility rates, Ga. Const. 1983, Art. III, Sec. VI, Para. V.

Prohibition against gratuities, Ga. Const. 1983, Art. III, Sec. VI, Para. VI.

Editor’s notes.

Ga. L. 2002, p. 475, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Natural Gas Consumers’ Relief Act.’”

Ga. L. 2009, p. 39, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Georgia Nuclear Energy Financing Act.’”

Law reviews.

For note on the 2002 enactment of this chapter, see 19 Ga. St. U.L. Rev. 285 (2002).

46-2-25.1. County-wide local calling; modification of existing rate schedules; plans for implementing service; methods of funding; rate-making power of commission not affected.

1. Except as provided in subsection (b) of this Code section, on and after July 1, 1990, the commission shall not approve any rate schedule which authorizes a long-distance charge for calls between two telephones within the same county.  Where two or more telephone companies operate in the same county, each company shall provide county-wide local calling to and from telephones within the area served by the other company or companies in the county. Rate schedules approved prior to July 1, 1990, shall be amended to comply with this Code section by not later than July 1, 1991.
2. All rate schedules approved pursuant to this Code section may be modified at the discretion of the commission upon a good and sufficient showing of geographic, economic, or technological infeasibility by a telephone company.
3. All rate schedules approved pursuant to this Code section shall take into account the following:
   1. The reasonable cost of providing such service to customers of the telephone company throughout the entire service area of such telephone company and the increased value resulting from such expanded calling areas;
   2. The average annual contributions made by such telephone company to the intra-LATA toll pool if such pool exists; and
   3. The reasonable rate of return on investment authorized in the rate schedule approved by the commission for such telephone company.
4. The commission shall, on or before December 31, 1990, implement a plan whereby all telephone companies subject to its jurisdiction will provide to each telephone subscriber, in addition to its present service arrangements and the intracounty service mandated under the provisions of this Code section, expanded community of interest toll free calling beyond county boundary lines and/or a reduction in intra-LATA toll rates to a level comparable to present inter-LATA toll rates.
5. Any plan to implement county-wide local calling shall be subject to the approval of the commission.  In developing a plan, the commission shall require telephone companies to enter into negotiations to provide for county-wide local calling throughout their service areas.  If the companies are unable to reach an agreement within a time frame consistent with the requirements of this Code section and the instructions of the commission, the commission may impose its own plan.  The commission shall have the authority to determine the method of funding this service.  In determining the method of funding this service, the commission shall first utilize any available earnings of the telephone companies in excess of those authorized in their respective tariffs; provided, however, that the commission shall not mandate any plan that requires the transfer of funds to implement county-wide local calling from one telephone company to another unless or until all other remedies are exhausted. Any telephone company seeking to recover any portion of its expenses or lost toll revenues resulting from the implementation of such county-wide local calling plan shall demonstrate its financial hardship to the commission before such recovery shall be allowed.  It shall be within the discretion of the commission to determine the methodology and source of recovery for any such affected telephone company. Such methodology and source may include, but not be limited to, increases in the affected telephone company’s rates and charges, sharing of lost revenues and increased expenses by any other telephone company included in the plan under review, and any other methodology which has as its goal the maintenance of reasonable telephone rates for all subscribers in the state.
6. The commission shall be authorized to consider and adopt alternative forms of regulation for telephone companies which may include, but will not be limited to, establishing plans which require the sharing with its subscribers of telephone company earnings above preestablished levels or regulating the maximum prices of basic local exchange services for which there are no readily available substitutes.  In determining what actions, if any, are to be taken under this subsection, the commission shall consider the factors contained in subsection (c) of Code Section 46-2-23.
7. Nothing in this Code section shall be interpreted as amending, modifying, or repealing Code Section 46-2-23, relating to the rate-making power of the commission generally and special provisions concerning telecommunications companies.

History. Code 1981, § 46-2-25.1 , enacted by Ga. L. 1990, p. 1672, § 1.

Code Commission notes.

Pursuant to Code Section § 28-9-5 , in 1991, “Code section” was substituted for “Code Section” near the beginning of subsection (g).

Law reviews.

For note on 1990 enactment of this Code section, see 7 Ga. St. U.L. Rev. 352 (1990).

46-2-25.2. Sixteen-mile toll-free telephone calling; modification of rate schedules; recovery of expenses or lost revenues by telephone companies; rate-making power of Public Service Commission not affected.

1. It is the goal of this Code section to provide for toll-free calling between two telephones where the central offices serving such telephones are within 16 miles of each other.
2. Except as provided in subsection (e) of this Code section, on and after July 1, 1992, the Public Service Commission shall not approve any new rate schedule which authorizes a long-distance charge for calls between two telephones where the central offices serving such telephones are within 16 miles of each other.
3. Except as provided in subsection (e) of this Code section, on and after July 1, 1992, rate schedules approved by the Public Service Commission prior to July 1, 1992, shall be amended so as to reduce by one-half the long-distance charge for calls between two telephones where the central offices serving such telephones are within 16 miles of each other.
4. On or before July 1, 1993, the Public Service Commission shall conduct hearings and accept evidence and upon consideration of such evidence shall determine any further reductions in long-distance charges for calls between two telephones where the central offices serving such telephones are within 16 miles of each other.  Such determination shall consider the availability of funds and other revenue sources to affected companies to offset the costs associated with such further reductions.
5. All rate schedules approved pursuant to this Code section may be modified at the discretion of the Public Service Commission upon a good and sufficient showing of geographic, economic, or technological infeasibility by a telephone company.
6. All rate schedules approved pursuant to this Code section shall take into account the following:
   1. The reasonable cost of providing such service to customers of the telephone company throughout the entire service area of such telephone company and the increased value resulting from such expanded calling areas; and
   2. The reasonable rate of return on investment authorized in the rate schedule approved by the Public Service Commission for such telephone company.
7. Any telephone company seeking to recover any portion of its expenses or lost toll revenues resulting from the implementation of the 16 mile toll free calling plan contained in this Code section shall demonstrate its financial hardship to the Public Service Commission before such recovery shall be allowed.  It shall be within the discretion of the Public Service Commission to determine the methodology and source of recovery for any such affected telephone company.  In determining the method of offsetting the costs associated with the 16 mile plan, the Public Service Commission shall first utilize any available earnings at the telephone companies seeking assistance in excess of those authorized in their respective tariffs.  Such methodology and source for offsetting costs shall include but not be limited to recovery from the Universal Service Fund as permitted under Code Section 50-5-200.
8. Nothing in this Code section shall be interpreted as amending, modifying, or repealing Code Section 46-2-23, relating to the rate-making power of the Public Service Commission generally and special provisions concerning telecommunications companies.

History. Code 1981, § 46-2-25.2 , enacted by Ga. L. 1992, p. 480, § 2; Ga. L. 2004, p. 631, § 46.

The 2004 amendment, effective May 13, 2004, part of an Act to revise, modernize, and correct the Code, revised punctuation in subsection (a).

Editor’s notes.

Code Section 50-5-200, referred to in this Code section, was repealed by Ga. L. 2008, p. 1015, § 10.

46-2-25.3. Toll-free calls within 22 miles of exchange; hearings; “net gain” defined.

1. On and after June 1, 1998, there shall be toll-free calling between two telephones within a 22 mile radius of an exchange serving such telephones as such 22 mile calling areas are designated on maps on file with the commission in any local exchange as provided in subsection (b) or (c) of this Code section; provided, however, that the provisions of this Code section shall not apply to a subscriber who has elected an optional plan. Such calls made in the 22 mile radius shall be considered local calls. Nothing in this subsection shall preclude the offer of optional rate plans.
2. 1. For each telephone company which has not elected to have its rates, terms, and conditions for services determined pursuant to the alternative regulation provided for in Article 4 of Chapter 5 of this title, the Public Service Commission may conduct hearings and accept evidence and, upon consideration of such evidence, shall determine if any telephone company should be authorized to increase its rates for basic exchange service to cover the reasonable costs of providing such toll-free service to customers of the telephone company throughout the 22 mile calling areas and to continue a reasonable rate of return on investment authorized in the rate schedule previously approved by the Public Service Commission for such telephone company. Such determination shall consider the availability of funds and other revenue sources to affected companies to offset the costs associated with such toll-free calling areas. It shall be within the discretion of the Public Service Commission to determine the methodology and source of recovery for any such affected telephone company. In determining the method of offsetting the costs associated with the 22 mile plan, the Public Service Commission shall first utilize any available earnings at the telephone companies seeking assistance in excess of those authorized in their respective tariffs. The commission shall be authorized to approve any increase in rates which the commission determines to be necessary to implement and accomplish the toll-free calling requirements of this Code section.
   2. If the rate of increase determined pursuant to paragraph (1) of this subsection does not exceed $2.00 or 25 percent of the basic service rate then in effect, the commission shall require the concurrent implementation of a 22 mile toll-free expanded calling area and the increase in basic local exchange service rates for that exchange, and the local exchange company shall be permitted to increase the basic local exchange service rates notwithstanding any provision of Chapter 5 of this title to the contrary.
   3. If the rate of increase determined pursuant to paragraph (1) of this subsection exceeds $2.00 or 25 percent of the basic service rate then in effect, the commission shall conduct balloting of the subscribers in each local exchange proposed to receive the 22 mile toll-free expanded calling area service. If a majority of those subscribers who return ballots is in favor of both the service and the requisite increase in basic local exchange service rates, the commission shall require the concurrent implementation of a 22 mile toll-free expanded calling area and the increase in basic local exchange service rates for that exchange, and the local exchange company shall be permitted to increase the basic local exchange service rates notwithstanding any provision of Chapter 5 of this title to the contrary.
3. 1. For each telephone company which has elected to have its rates, terms, and conditions for services determined pursuant to the alternative regulation provided for in Article 4 of Chapter 5 of this title, the commission shall determine for each local exchange company the increase in rates for basic local exchange services necessary to recover fully all revenues which would be lost if a 22 mile toll-free expanded calling area were implemented in that local exchange.
   2. If the rate of increase determined pursuant to paragraph (1) of this subsection does not exceed $2.00 or 25 percent of the basic service rate then in effect, the commission shall require the concurrent implementation of a 22 mile toll-free expanded calling area and the increase in basic local exchange service rates for that exchange, and the local exchange company shall be permitted to increase the basic local exchange service rates notwithstanding any provision of Chapter 5 of this title to the contrary.
   3. If the rate of increase determined pursuant to paragraph (1) of this subsection exceeds $2.00 or 25 percent of the basic service rate then in effect, the commission shall conduct balloting of the subscribers in each local exchange proposed to receive the 22 mile toll-free expanded calling area service. If a majority of those subscribers who return ballots is in favor of both the service and the requisite increase in basic local exchange service rates, the commission shall require the concurrent implementation of a 22 mile toll-free expanded calling area and the increase in basic local exchange service rates for that exchange, and the local exchange company shall be permitted to increase the basic local exchange service rates notwithstanding any provision of Chapter 5 of this title to the contrary.
4. 1. As used in this subsection, the term “net gain” means the net revenue impact from the implementation less costs incurred as a result of the implementation of a 22 mile toll-free calling area.
   2. The commission shall adopt a methodology to provide that any net gain which a telecommunications company experiences as a result of implementing this Code section be passed on to end user customers.
5. Nothing in this Code section shall be interpreted as amending, modifying, or repealing Code Section 46-2-23, relating to the rate-making power of the Public Service Commission generally and special provisions concerning telecommunications companies, or Article 4 of Chapter 5 of this title, “The Telecommunications and Competition Development Act of 1995.”

History. Code 1981, § 46-2-25.3 , enacted by Ga. L. 1997, p. 1056, § 1; Ga. L. 1998, p. 128, § 46.

46-2-26. Restriction as to utilization of fuel-adjustment tariffs; procedure for rate change by utility based solely on change in fuel costs; extent of commission’s power over rate changes; disclosure requirements for utilities seeking rate change.

1. As used in this Code section, the term:
   1. “Fuel costs” of a utility company means the cost of fuel as defined in the utility company’s tariffs in effect on July 1, 1979, as such tariffs may be changed from time to time by order of the commission as provided by law.
   2. “Utility” means any retail supplier of electricity subject to the rate-making jurisdiction of the commission.
2. No utility regulated by the commission shall automatically increase any customer’s billing for intrastate utility services by reason of application of any fuel adjustment tariff. Rate changes based solely on increases or decreases in the cost of fuel may be determined as set forth in this Code section. Code Section 46-2-25 shall not apply to proceedings conducted pursuant to this Code section.
3. On or before May 15, 1979, each utility shall file with the commission an estimate of fuel costs and an estimate of retail sales for the three calendar months beginning on July 1, 1979, and proposed base rate tariffs to recover those costs. Thereafter, a utility may change its base rates solely because of increased or decreased fuel costs only after filing with the commission an estimate of its fuel costs and retail sales for the next three consecutive calendar months and proposed base rates to recover those costs, adjusted as required by subsection (g) of this Code section.
4. Not less than ten days after any such filings or after a commission show-cause order concerning such base rates, the commission shall conduct a public hearing on the information so filed for the purpose of determining its accuracy. The utility’s testimony shall be under oath and shall, with any corrections thereto, constitute the utility’s affirmative case. At any hearing conducted pursuant to this Code section, the burden of proof to show that an increased rate, based on fluctuations in fuel costs, is just and reasonable shall be upon the utility. Formal intervention by customers of the utility shall be permitted. The staff of the commission and formal intervenors shall have the right to examine all utility records used in the preparation of the testimony and exhibits of the utility, to cross-examine utility witnesses, and to present rebuttal testimony, subject to cross-examination by all parties.
5. Following such hearing, the commission shall issue an order stating the base rates to be used by the utility during the next three consecutive calendar months, or until changed as provided in this Code section. Should the commission fail or refuse to issue such order by the ninetieth day after the utility’s filing, the base rates proposed by the utility shall thereupon be deemed adopted by operation of law.
6. Each utility shall compute, record, and report to the commission monthly the most current data available showing the monthly and accumulated overrecovery or underrecovery of actual fuel costs resulting from application of its base rates.
7. Each base rate amendment shall include an adjustment based on actual expense to date in order that the accumulated retail fuel costs of the utility shall equal, as nearly as possible, the revenues recovered pursuant to the fuel recovery allowance contained in its base rates. The resulting adjustment in the charge, if any, shall be made to the nearest 0.0001¢ per kilowatt hour.
8. The commission shall disallow and make appropriate adjustment for any reported fuel cost that is the result of illegal or clearly imprudent conduct on the part of the utility.
9. All commission orders issued pursuant to this Code section shall contain the commission’s findings of fact and conclusions of law upon which the commission’s action is based. Such order shall be deemed a final order subject to judicial review under Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.”
10. The commission shall not prohibit or limit the operation of a rate schedule or other tariff of a utility to the extent that it permits rate increases or decreases to adjust for increased or decreased purchased power costs, where such increased or decreased purchased power costs shall have become effective under the procedures of a federal regulatory agency or under a contract approved by a federal regulatory agency. Any subsequent refunds received by any such utility with respect to any such increased purchased power costs which become effective under procedures of a federal regulatory agency, or otherwise, shall be refunded by the utility to its customers in the manner directed by the commission.
11. In filing any estimate of fuel costs under subsection (c) of this Code section, each utility shall disclose the name and address of each person from whom the utility expects to purchase fuel or the transportation of fuel during the period covered by such estimate. Each such filing shall also disclose, when applicable, any financial interest the utility has in any firm or corporation expected to supply or transport fuel to the utility during the period covered by the estimate. It shall be the duty of the commission to make public at each public hearing held pursuant to subsection (d) of this Code section any information disclosed by a utility pursuant to the requirements of this subsection. It shall constitute a financial interest within the meaning of this subsection:
    1. For any member of the board of directors of the utility to be a member of the board of directors of a corporation supplying or transporting fuel to the utility;
    2. For any member of the board of directors of the utility to be the proprietor of or a partner in any business supplying or transporting fuel to the utility; or
    3. For any member of the board of directors of the utility, or for the utility itself, to own 10 percent or more of the stock of any corporation supplying or transporting fuel to the utility.

History. Code 1933, § 93-307.2, enacted by Ga. L. 1979, p. 1312, § 1; Ga. L. 1984, p. 22, § 46; Ga. L. 2002, p. 475, § 3.

The 2002 amendment, effective April 25, 2002, substituted “ninetieth day” for “forty fifth day” in the last sentence of subsection (e).

Editor’s notes.

Ga. L. 2002, p. 475, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Natural Gas Consumers’ Relief Act.’ ”

Law reviews.

For note on the 2002 enactment of this chapter, see 19 Ga. St. U.L. Rev. 285 (2002).

46-2-26.1. Accounting methods to be used by electric utilities in rate-making proceedings.

1. The accounting treatments specified in this Code section shall apply in any proceeding before the commission to determine the rates to be charged by an electric utility.
2. In any proceeding to determine the rates to be charged by an electric utility, the electric utility shall file jurisdictionally allocated cost of service data on the basis of a test period, and the commission shall utilize a test period, consisting of actual data for the most recent 12 month period for which data are available, fully adjusted separately to reflect estimated operations during the 12 months following the utility’s proposed effective date of the rates. After the initial filing and until new rates go into effect, the utility shall file actual cost of service data as they become available for each month following the actual data which were filed. The utility shall have the burden of explaining and supporting the reasonableness of all estimates and adjustments contained in its cost of service data.
3. In any case after March 2, 1981, in which an electric utility transfers partial or total ownership of any electric plant, the electric utility shall return to its ratepayers, in such manner as the commission may prescribe, the ratepayers’ cash contribution to the cost of construction, plus the income taxes paid, accrued, and collected by the electric utility in respect thereof, and a portion of the profit, if any, on such transfer.
   1. The ratepayers’ contribution to the cost of construction shall be determined by first multiplying the amount of construction and preconstruction expenditures included in the rate base by the authorized return allowed by the commission for the electric utility on the jurisdictional rate base during the period or periods such expenditures were included in the rate base, and then subtracting therefrom any carrying costs capitalized in respect of such construction and preconstruction expenditures included in the rate base. In the event an electric utility transfers partial or total ownership of any electric plant after it has commenced commercial operation, the ratepayers’ contribution to the cost of construction shall be reduced in proportion to the remaining life of the electric plant.
   2. The profit, if any, on such transfer shall be allocated between the electric utility and its ratepayers in proportion to their respective contributions to the cost of construction. For the purposes of this calculation, the ratepayers’ contribution shall be determined as provided by paragraph (1) of this subsection. The electric utility’s contribution shall be the cost, including carrying costs, of the transferred electric plant as recorded on the books and records of the electric utility. The amount of profit, if any, shall be determined by deducting the sum of the ratepayers’ and the electric utility’s contributions to the cost of construction from the gross proceeds of the transfer.

History. Code 1933, § 93-307.3, enacted by Ga. L. 1981, p. 121, § 5.

46-2-26.2. Tax accounting by utilities in rate-making proceedings.

For purposes of determining a utility’s cost of service in rate-making proceedings, the income tax expense portion shall be calculated on the basis of net income before income taxes. Any difference between income based on the utility’s accounting records and income determined in accordance with United States Internal Revenue Service laws and regulations will be accounted for as required by generally accepted accounting principles governing all businesses.

History. Code 1933, § 93-307.4, enacted by Ga. L. 1981, p. 121, § 5.

46-2-26.3. Recovery of costs of conversion from oil-burning to coal-burning generating facility; filing of request; public hearing; determination of rate; adjustments.

1. A utility regulated by the Public Service Commission which has 25 percent or more of its total generating capacity as oil-fired generation and operates any electric generating facility which was in the process of being converted on January 1, 1982, and which will be converted and in commercial operation as a coal-fired facility on or before December 31, 1982, after conversion from oil to coal-fired operation may file with the commission an application to determine the appropriate rate to recover the cost of conversion and to demonstrate the fuel cost savings resulting from said conversion.
2. For the purposes of this Code section, the following words or terms shall have the following meanings:
   1. “Coal” shall mean coal used as a primary energy source.
   2. “Commission” shall mean the Georgia Public Service Commission.
   3. 1. “Cost of conversion” shall mean costs as determined by the commission to be reasonable and necessary for the conversion of an oil-burning electric generating facility to the burning of coal. Such costs shall include, but not be limited to, engineering, administrative, and legal costs, the cost of environmental studies and control equipment, coal-handling and storage equipment, including rail facilities, equipment and facilities necessary to permit the combustion of coal, the cost of retrofitting or refurbishing boilers to permit the combustion of coal, the cost of on-site and off-site facilities for handling, storing, and disposing of wastes resulting from the combustion of coal, and the cost of all other facilities reasonable and necessary to allow the conversion of an oil-burning electric generating facility to burn coal. Such costs shall also include the reasonable cost of capital for such conversion and for carrying the cost of such conversion until such costs are recovered as provided in this Code section. In no case shall cost of conversion include any costs incurred pursuant to an expansion of an electric generating facility’s generating capacity above the generating capacity of said facility that existed prior to the conversion from oil to coal.
      2. “Cost of conversion” shall not include the amount financed by the company through tax-exempt pollution control bonds, if any, of any portion of the project certified by the Environmental Protection Division of the Department of Natural Resources, or other agency vested with similar authority, to be a pollution control facility and therefore eligible for financing under Section 103 of the Internal Revenue Code and the regulations thereunder or other similar law or regulation now or hereafter adopted.
   4. “Fuel cost savings” shall mean the amount of fuel savings to be obtained by operating the facility converted from oil to coal-fired operation during the facility’s first full 12 months of operation using coal as its primary fuel as compared to the operation of such facility on oil, had it been so operated, during the same 12 month period.
   5. “Utility” shall mean any retail supplier of electricity subject to the rate-making jurisdiction of the commission.
3. Any utility meeting the qualifications under subsection (a) of this Code section may file with the commission a request to establish an appropriate adjustment in its rates and charges in order to recover the costs of conversion of an oil-burning generating facility to coal-fired operation as provided herein. After receipt of such filing, the commission shall hold a public hearing to determine the cost of conversion of the generating facility and the fuel cost savings anticipated. Unless it is determined by the commission that the cost of conversion will be less than the projected fuel cost savings accruing to retail customers over the remaining life of the generating facility, no further action shall be taken by the commission. Upon making such determination that the fuel cost savings exceed the cost of conversion, the commission shall then determine the appropriate rate to recover the cost of conversion as provided in subsection (d) of this Code section.
4. In determining the appropriate rate, the commission shall consider the cost of conversion, and an appropriate period of time, but not more than seven years, to amortize such cost. The appropriate rate shall be an amount which is not less than the amount necessary to amortize the cost of conversion, as herein defined over a period of not more than seven years on a per kilowatt-hour basis taking into consideration the estimated kilowatt hours to be generated for sale by the utility during the first full 12 months in operation of the facility. In determining the rate to recover the cost of conversion, the commission shall permit recovery by the utility of the cost of conversion net of such federal, state, or local taxes based on revenue and income which may be imposed upon the utility for receipt of proceeds of the fuel-savings-allocation which cannot be reasonably avoided by the utility using due diligence. All revenues derived through the rate herein provided shall be applied solely to the cost of conversion of said facility.
5. The utility shall compute, record, and report to the commission monthly the amount collected under any rate herein authorized and the amount applied to the cost of conversion and the balance remaining to be recovered.
6. Upon recovery by the utility of the cost of conversion as herein provided, the utility shall no longer charge any rate authorized to recover the cost of conversion. Upon such termination, the utility shall file a report with the commission within 30 days, sworn to by an officer of the utility, that its fuel-savings-allocation revenues are in compliance with all commission orders issued pursuant to this Code section. In the event such revenue is lesser or greater than the utility’s cost of conversion, the commission shall make such determinations and issue such orders as are necessary to result in the full recovery, but no more, of the cost of conversion.
7. In the event the utility should become entitled, by reason of the conversion, to any federal or state grant and receive same, the commission shall make such determinations and issue such orders as are necessary to reduce the amount of conversion costs which the utility would otherwise recover by means of the rate provided herein. If such grant is received after termination of such adjustment, the utility shall promptly report such receipt and the commission shall make such determinations and issue such orders as are necessary to result in the utility receiving no more than the cost of conversion after taking into account such grant.
8. Once the utility charges the rate to recover the cost of conversion, the commission shall not recognize for rate-making purposes any costs of conversion which are recovered by the utility through the rate provided herein.
9. At any hearing or any proceeding under this Code section formal intervention by customers of the utility shall be permitted. All commission orders issued pursuant to this Code section shall be rendered within 180 days from the date of any filing or the institution of any proceeding hereunder and shall contain, unless waived by all parties, the commission’s findings of fact and conclusions of law upon which the commission’s action is based. Such order shall be deemed a final order subject to judicial review under Chapter 13 of Title 50, known as the “Georgia Administrative Procedure Act.”
10. Any recovery of costs of conversion provided or allowed hereunder shall not affect the recovery of fuel costs provided in Code Section 46-2-26.

History. Code 1933, § 93-307.5, enacted by Ga. L. 1982, p. 412, § 1; Code 1981, § 46-2-26.3 , enacted by Ga. L. 1982, p. 412, § 2; Ga. L. 1983, p. 3, § 35; Ga. L. 1984, p. 22, § 46; Ga. L. 1987, p. 191, § 9; Ga. L. 1989, p. 14, § 46; Ga. L. 1992, p. 6, § 46; Ga. L. 2014, p. 866, § 46/SB 340; Ga. L. 2015, p. 1088, § 36/SB 148.

The 2014 amendment, effective April 29, 2014, part of an Act to revise, modernize, and correct the Code, deleted the extra subsection (b) designation preceding subparagraph (3)(A).

The 2015 amendment, effective July 1, 2015, in subsection (f), deleted “and the consumers’ utility counsel” following “file a report with the commission” near the beginning of the second sentence.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 1988, “consumers’ utility counsel” was substituted for “Consumers’ Utility Counsel” in subsection (f).

Editor’s notes.

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provides that this Act is applicable to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply.

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act.

Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes.

Ga. L. 2015, p. 1088, § 36/SB 148, effective July 1, 2015, purported to revise this Code section but only amended subsection (f).

46-2-26.4. Accounting procedures in gas utility rate proceedings.

1. The accounting treatments specified in this Code section shall apply in any proceeding before the commission to determine the rates to be charged by a gas utility.
2. In any proceeding commenced after April 1, 2002, to determine the rates to be charged by a gas utility, the gas utility shall file jurisdictionally allocated cost of service data on the basis of a test period, and the commission shall utilize a test period, consisting of actual data for the most recent 12 month period for which data are available, fully adjusted separately to reflect estimated operations during the 12 months following the proposed effective date of the rates. After the initial filing, and until new rates go into effect, the utility shall file actual cost of service data as they become available for each month following the actual data which were filed. The utility shall have the burden of explaining and supporting the reasonableness of all estimates and adjustments contained in its cost of service data.

History. Code 1981, § 46-2-26.4 , enacted by Ga. L. 1991, p. 1705, § 1; Ga. L. 2002, p. 475, § 4.

The 2002 amendment, effective April 25, 2002, in the first sentence of subsection (b), inserted “commenced after April 1, 2002,” near the beginning and substituted “12 months following the” for “12 month period commencing five months from the” near the end.

Editor’s notes.

Ga. L. 2002, p. 475, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Natural Gas Consumers’ Relief Act.’ ”

Law reviews.

For note on the 2002 enactment of this chapter, see 19 Ga. St. U.L. Rev. 285 (2002).

46-2-26.5. Gas supply plans and adjustment factors; filings and hearing procedures; recovery of purchase gas cost.

1. As used in this Code section, the term:
   1. “Adjustment factor” means a factor used pursuant to a purchased gas adjustment rate to recover purchased gas costs.
   2. “Commission” means the Georgia Public Service Commission.
   3. “Firm customer” means a customer who purchases gas from a gas utility on a firm basis which ordinarily is not subject to interruption or curtailment.
   4. “Gas supply plan” means the particular array of available gas supply, storage, and transportation options selected by a gas utility to supply the requirements of its firm customers.
   5. “Gas utility” means a gas utility subject to the jurisdiction of the commission.
   6. “Purchased gas adjustment rate” means a purchased gas adjustment rider or similar rate, provision, or clause in the tariff of a gas utility pursuant to which purchased gas costs are billed to the firm customers of the gas utility.
   7. “Purchased gas costs” means all costs incurred by a gas utility for the purpose of acquiring gas delivered to its system in order to supply its firm customers, including without limitation the costs incurred in purchasing gas from sellers; the costs incurred in transactions involving rights to buy and sell gas; the costs incurred in gathering gas for transportation to the gas utility; the costs incurred in transporting gas to the facilities of the gas utility; the costs incurred in acquiring and using gas storage service from others, including the costs of injecting and withdrawing gas from storage; and all charges, fees, and rates incurred in connection with such purchases, rights, gathering, storage, and transportation.
   8. “Recovery year” means the 12 calendar months commencing October 1, 1994, and ending September 30, 1995, and each succeeding 12 calendar month period thereafter.
2. Commencing October 1, 1994, the requirements of this Code section shall apply to any purchased gas adjustment rate.  The requirements of Code Section 46-2-25 shall not apply to filings made or proceedings conducted pursuant to this Code section.
3. On or before August 1 of each year, each gas utility shall file with the commission its gas supply plan for the following recovery year.  The gas utility shall include with such filing the adjustment factors it proposes for recovering its purchased gas costs during such following recovery year, together with the calculations that produced such factors.
4. Not less than ten days after any such filing by a gas utility, the commission shall conduct a public hearing on such filing. The gas utility’s testimony shall be under oath and shall, with any corrections thereto, constitute the gas utility’s affirmative case.  At any hearing conducted pursuant to this Code section, the burden of proof to show that the proposed gas supply plan and adjustment factors are appropriate shall be upon the gas utility.
5. Following such a hearing, the commission shall issue an order approving the gas supply plan filed by the gas utility or adopting a gas supply plan for the gas utility that the commission deems appropriate. In addition, the commission in its order shall approve the adjustment factors proposed by the gas utility or adopt adjustment factors that the commission deems appropriate. The adjustment factors approved or adopted by the commission, or otherwise made effective under this Code section, shall be applied uniformly to all firm customers upon the effective date of such factors. The adjustment factors to be effective during the recovery year commencing October 1, 1994, shall be set at levels appropriate to account for underrecoveries or overrecoveries, if any, under the purchased gas adjustment rate of the gas utility in effect prior to October 1, 1994. The adjustment factors to be applicable during each recovery year commencing October 1, 1995, and thereafter, shall be set at levels appropriate to account for underrecoveries or overrecoveries during the preceding recovery year. Should the commission fail or refuse to issue an order by the ninetieth day after the gas utility’s filing which either approves the gas supply plan filed by the gas utility or adopts a different gas supply plan for the gas utility, the gas supply plan proposed by the gas utility shall thereupon be deemed approved by operation of law. Similarly, should the commission fail or refuse to issue an order by such date which either approves the adjustment factors proposed by the gas utility or adopts different adjustment factors for the gas utility, the adjustment factors proposed by the gas utility shall thereupon be deemed approved by operation of law.
6. The provisions of law relating to parties, intervention, and discovery in proceedings before the commission shall apply with respect to proceedings under this Code section.
7. Each gas utility shall file with the commission monthly its actual monthly purchased gas costs and accumulated purchased gas costs during the recovery year.  The gas utility shall include in such filing information which demonstrates whether such purchased gas costs were incurred in accordance with a gas supply plan which had become effective in accordance with the provisions of this Code section.
8. Each gas utility shall also file with the commission monthly the most current data available showing the monthly and accumulated overrecoveries or underrecoveries of actual purchased gas costs resulting from application of its purchased gas adjustment rate.
9. At least every three calendar months, the gas utility shall file proposed revisions to the adjustment factors based on actual unrecovered purchased gas costs in order that the revenues to be recovered pursuant to such rate during the remainder of the current recovery year shall equal, as nearly as possible, the gas utility’s unrecovered purchased gas costs through the end of such recovery year.  The revisions to the adjustment factors, if any, shall be made to the nearest 0.01¢ per therm.  Unless the commission directs otherwise, such revised adjustment factors shall become effective on the first day of the first calendar month that begins at least 15 days after the date of such filing.
10. All commission orders issued pursuant to this Code section shall contain the commission’s findings of fact and conclusions of law upon which the commission’s action is based.  Any such order shall be deemed a final order subject to judicial review under Chapter 13 of Title 50, the “Georgia Administrative Procedure Act.”
11. The commission shall not prohibit or limit the operation of a purchased gas adjustment rate of a gas utility to the extent that the adjustment permits increases or decreases to adjust for increased or decreased purchased gas costs when such increased or decreased purchased gas costs shall have become effective under the procedures of a federal regulatory agency or under a contract approved by a federal regulatory agency. Any subsequent refunds received by a gas utility with respect to any such increased purchased gas costs which become effective under procedures of a federal regulatory agency, or otherwise, shall be treated by the gas utility in such manner as the commission may direct.
12. Any purchased gas costs which are incurred by a gas utility in accordance with a gas supply plan which was in effect pursuant to the provisions of this Code section at the time such costs were incurred may be recovered by the gas utility under its purchased gas adjustment rate and shall not be disallowed retroactively by the commission nor by any court which reviews the action of the commission in the absence of fraud or willful misconduct on the part of the gas utility; provided, however, that the commission may disallow and make appropriate adjustments for any purchased gas costs that were not incurred in accordance with such a gas supply plan if the same resulted in higher purchased gas costs and were the result of clearly imprudent conduct on the part of the gas utility.  The provisions of this Code section shall not prohibit the commission from authorizing a gas utility to recover under a purchased gas adjustment rate costs or amounts in addition to purchased gas costs, nor shall the provisions of this Code section prohibit the commission from removing from purchased gas costs those costs incurred by a gas utility for the purpose of acquiring gas to supply customers who are not firm customers.
13. After a gas supply plan has become effective under the provisions of this Code section as a result of a proceeding before the commission, the commission shall retain jurisdiction of the proceeding for the balance of the recovery year for the purposes set forth in this subsection.  Upon the application of the affected gas utility or upon its own initiative, the commission may, after affording due notice and opportunity for hearing to the affected gas utility and the intervenors in the proceeding, amend the gas supply plan of the affected gas utility for the remainder of the recovery year. The amended gas supply plan shall become effective upon the date of the commission’s order and shall not have retroactive effect.

History. Code 1981, § 46-2-26.5 , enacted by Ga. L. 1994, p. 630, § 2; Ga. L. 2006, p. 709, § 1/SB 209.

The 2006 amendment, effective July 1, 2006, substituted “ninetieth day” for “forty-fifth day” in the sixth sentence of subsection (e).

46-2-27. Notation on bill of charges for fuel adjustment, meter reading and consumption, and where rates charged may be obtained.

Upon the face or back of each periodic and terminal billing for retail consumption of electric, gas, and water services, there shall appear a conspicuous notation of charges for fuel adjustment and a notation of the meter reading upon which the billing was computed, including the previous reading and consumption. Where a customer is on a voluntary “budget bill” or “levelized bill” agreement, the actual consumption for any period of time may be omitted until the annual anniversary account billing. The rates on which the bill was computed shall be made readily available to the customer upon demand; and a notation of where the rates can be obtained shall appear on the face of the bill.

History. Code 1933, § 93-309.3, enacted by Ga. L. 1975, p. 574, § 1.

46-2-28. Procedure for issuance of stocks, bonds, notes, or other debt by companies under commission’s jurisdiction; exemptions.

1. Each of the companies over which the commission has jurisdiction shall be required to furnish the commission a list of any stocks and bonds the issuance of which is contemplated.
2. It shall be unlawful for any of such companies to issue stocks, bonds, notes, or other evidences of debt, payable more than 12 months after the date of issuance, except upon the approval of the commission, and then only when necessary and for such amount as may be reasonably required for the acquisition of property; the construction and equipment of power plants and carsheds; the completion, extension, or improvement of its facilities or properties; the improvement or maintenance of its service; the discharge or lawful refunding of its obligations; or other lawful corporate purposes falling within the spirit of this Code section.
3. The decision of the commission shall be final as to the validity of the issuance of stocks, bonds, notes, or other evidences of debt by companies under the jurisdiction of the commission.
4. Before issuing stocks, bonds, notes, or other evidence of debt, a company under the jurisdiction of the commission shall secure an order from the commission authorizing such issue, the amount thereof, and the purpose and use for which the issue is authorized. For the purpose of enabling it to determine whether such order should be issued, the commission shall make such inquiry or investigation, hold such hearings, and examine such witnesses, books, papers, documents, or contracts as it may deem advisable or necessary.
5. Notwithstanding any other provision of this Code section, a company under the jurisdiction of the commission may issue notes or other evidences of debt for proper and lawful corporate purposes, payable at periods of not more than 12 months from the date of issuance, without the consent of the commission, provided that no such notes or other evidences of debt shall, in whole or in part, directly or indirectly, be refunded by any issue of stocks, bonds, or other evidences of debt running for more than 12 months without the consent of the commission.
6. Notwithstanding any other provision of this Code section, motor common carriers and motor contract carriers regulated under Chapter 7 of this title shall be exempt from the provisions of this Code section.
7. Notwithstanding any other provision of this Code section or any other provision of law, local exchange companies as defined in paragraph (10) of Code Section 46-5-162 under the commission’s jurisdiction shall be exempt from the provisions of this Code section if the stocks, bonds, notes, or other evidences of debt are issued as part of a debt transaction that is an interstate transaction, as evidenced by the following:
   1. The local exchange company is a wholly owned subsidiary of a parent company headquartered or domiciled outside of this state;
   2. The debt transaction is by and between the parent company, the primary obligor, and a national bank or other lending or financial institution licensed or authorized to enter into such debt transaction by any state or federal agency; and
   3. The local exchange company is issuing stocks, bonds, notes, or other evidences of debt for the purpose of providing collateral or other security to the lending or financial institution in order to accommodate the debt transaction of a parent company or other entity.

History. Ga. L. 1907, p. 72, § 8; Civil Code 1910, § 2665; Code 1933, § 93-414; Ga. L. 1986, p. 1518, § 1; Ga. L. 2011, p. 582, § 1/HB 116; Ga. L. 2012, p. 775, § 46/HB 942.

The 2011 amendment, effective May 12, 2011, added subsection (g).

The 2012 amendment, effective May 1, 2012, part of an Act to revise, modernize, and correct the Code, revised punctuation in the introductory language of subsection (g).

46-2-29. Requirement of confidentiality of information obtained by commission member or employee in a proceeding under Code Section 46-2-28.

1. No member or employee of the commission shall, except when legally called upon by a court of competent jurisdiction, disclose or impart to anyone any fact which was obtained in his official capacity from or through any proceeding filed with the commission under Code Section 46-2-28, provided that this Code section shall not apply to any fact or information which is obtained through public hearings or which is not confidential in nature.
2. Any person who violates this Code section shall be guilty of a misdemeanor.

History. Ga. L. 1907, p. 72, § 8; Civil Code 1910, § 2665; Code 1933, § 93-319.

46-2-30. Power of commission to make rules and regulations generally.

The commission shall have full power and authority to make rules and regulations to effectuate and implement all laws conferring powers and duties upon the commission. Any rule or regulation adopted by the commission shall be transmitted to the chairman of the appropriate committees of the House of Representatives and the Senate for review by such committees and recommendations by such committees to the General Assembly for appropriate action.

History. Code 1933, § 93-308.1, enacted by Ga. L. 1975, p. 404, § 2.

Cross references.

Provisions of Administrative Procedure Act pertaining specifically to commission, §§ 50-13-10 , 50-13-17 , 50-13-19 .

46-2-31. Annual report by commission to Governor.

It shall be the duty of the commission to make annual reports of its activities to the Governor and to recommend from time to time such legislation as it may deem advisable.

History. Ga. L. 1878-79, p. 125, § 14; Code 1882, § 719n; Ga. L. 1889, p. 133, § 1; Civil Code 1895, § 2201; Civil Code 1910, § 2644; Code 1933, § 93-318.

46-2-32. Payment of fines into state treasury; cumulative nature of remedies provided by this title.

All fines recovered under this title shall be paid into the general fund of the state treasury, to be used for such purposes as the General Assembly may provide. The remedies provided in this title shall be regarded as cumulative of all other remedies given by law against railroad companies, and this title shall not be construed as repealing any statute giving such remedies.

History. Ga. L. 1878-79, p. 125, § 11; Code 1882, § 719k; Civil Code 1895, § 2198; Civil Code 1910, § 2641; Code 1933, § 93-418.

46-2-33. Costs incurred by commission charged to utility; invoicing; recovery.

1. The cost to the commission of providing reasonably necessary specialized testimony and assistance in conducting affiliate transactions audits prior to utility rate cases, in monitoring nuclear power costs, and in proceedings initiated by the utility, including, but not limited to, utility rate cases, fuel cost recovery cases, gas supply cases, and capacity supply cases, shall be charged to the affected utility. The amount of any such charges shall not exceed $200,000.00 per case per year, except for utility rate cases, generation construction monitoring, integrated resource planning cases, and generation certification cases, to the extent such amount is not also being recovered pursuant to an order issued under subsection (c) of Code Section 46-3A-5, which shall not exceed $600,000.00 per case per year. The maximum fee shall be adjusted on an annual basis based on the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor. In the event the Consumer Price Index is no longer available, the commission shall select a comparable broad national measure of inflation. This Code section shall not apply to proceedings for Tier 1 local exchange companies that have elected alternative regulation or to certificated competing local exchange carriers.
2. At the time the commission determines that specialized testimony and assistance is required, the commission shall issue an order setting forth the scope and budget for such testimony and assistance. All invoices relating to the testimony and assistance shall be subject to commission review and approval, and no utility shall be required to pay any invoice not approved by the commission.
3. The amounts paid by regulated companies under this Code section shall be deemed a necessary cost of providing service, and the utility shall be entitled to recover the full amount of any costs charged to the utility pursuant to this Code section. In addition, at the election of the utility, the utility shall be entitled to recover all such costs promptly through a reasonably designed rider designated for such purpose.

History. Code 1981, § 46-2-33 , enacted by Ga. L. 2010, p. 111, § 1/HB 1233.

Effective date. —

This Code section became effective July 1, 2010.

46-2-40. Creation of Utility Finance Section; composition of section.

There is established a Utility Finance Section of the commission staff, which section shall have the powers and duties specified in this article. The section shall consist of a director, an assistant director, and such accountants, statisticians, experts, and clerical personnel as the commission may employ, as authorized by the General Assembly.

History. Code 1933, § 93-201a, enacted by Ga. L. 1981, p. 121, § 4.

46-2-41. Appointment of director of Utility Finance Section; compensation; supervisory role of director of utilities; qualifications and responsibilities of director of section generally.

1. On or before December 31, 1981, the commission by order shall employ an individual qualified by knowledge and experience to serve as director of the Utility Finance Section. The director shall be compensated in an amount determined by the commission. He shall serve at the pleasure of the commission and shall report to the director of utilities of the commission.
2. The director of the Utility Finance Section must possess at least five years’ experience in the field of public regulation of business, whether through employment with a state or federal agency, in industry, in education, or through the practice of law. This individual must have graduated from a four-year college with a major in either accounting, finance, business, or management or have graduated from a law school and been admitted to the State Bar of Georgia.
3. The director shall be responsible for the:
   1. Preparation of the budget of the section for submittal to the director of utilities;
   2. Administration of the section;
   3. Supervision of the work of the section; and
   4. Presentation of the commission staff’s position during electric utility rate proceedings.

History. Code 1933, § 93-202a, enacted by Ga. L. 1981, p. 121, § 4; Ga. L. 1982, p. 1174, §§ 1, 2.

46-2-42. Employment of assistant director of Utility Finance Section; employment of accountants, statisticians, experts, and clerical personnel; application of rules and regulations.

1. The director of the Utility Finance Section shall employ an assistant director who shall be employed at the pleasure of the commission and as provided by law.
2. The director shall employ such accountants, statisticians, experts, and clerical personnel as are necessary for the effective performance of the duties of the section, and such employees shall be in the unclassified service as defined by Code Section 45-20-2.
3. Rules and regulations of the State Personnel Board concerning compensation and promotion shall not apply to employees of the Utility Finance Section.

History. Code 1933, § 93-203a, enacted by Ga. L. 1981, p. 121, § 4; Ga. L. 2009, p. 745, § 1/SB 97; Ga. L. 2012, p. 446, § 2-87/HB 642.

The 2009 amendment, effective July 1, 2009, substituted “State Personnel Administration” for “state merit system” twice in subsection (c).

The 2012 amendment, effective July 1, 2012, added “, and such employees shall be in the unclassified service as defined by Code Section 45-20-2” at the end of subsection (b); and substituted the present provisions of subsection (c) for the former provisions, which read: “With the concurrence of the State Personnel Administration compensation board, certain employees of the section may be included in the ‘unclassified service’ in addition to those currently provided by paragraph (15) of Code Section 45-20-2. The State Personnel Administration regulations and restrictions concerning compensation and promotion shall not apply to such employees.”

Editor’s notes.

Ga. L. 2012, p. 446, § 3-1/HB 642, not codified by the General Assembly, provides that: “Personnel, equipment, and facilities that were assigned to the State Personnel Administration as of June 30, 2012, shall be transferred to the Department of Administrative Services on the effective date of this Act.” This Act became effective July 1, 2012.

Ga. L. 2012, p. 446, § 3-2/HB 642, not codified by the General Assembly, provides that: “Appropriations for functions which are transferred by this Act may be transferred as provided in Code Section 45-12-90.”

46-2-43. Director, assistant director, or any other employee of Utility Finance Section prohibited from having any interest in or being employed by electric utilities.

During the period of his employment and for one year following the termination of his employment, neither the director of the Utility Finance Section, the assistant director of the section, nor any other employee of the section shall own any interest of any kind in or be retained or employed by any electric utility or own any controlling interest in or be retained or employed by any person who has a vested interest in the outcome of any proceeding in which the section participates.

History. Code 1933, § 93-204a, enacted by Ga. L. 1981, p. 121, § 4.

Cross references.

Conflicts of interest of state officers and employees generally, § 45-10-20 et seq.

46-2-44. Duties of Utility Finance Section generally.

The duties of the Utility Finance Section shall include the following:

1. Preparing a budget for the section for submission by the director of the section to the director of utilities to secure the necessary appropriations to finance the activities of the section;
2. Investigating the rates and auditing the books and records of any electric utility other than transportation utilities, municipal electric systems, and electric membership corporations when so directed by the director of utilities;
3. Appearing in any proceeding to determine rates of an electric utility. In such capacity, the section shall:
   1. Form an independent evaluation concerning whether the electric utility rates in question are just and reasonable;
   2. Present testimony by its employees or specially retained experts concerning the electric utility rates in question;
   3. Provide to the commission all technical assistance, data, and calculations concerning the electric utility rates in question, as the commission may require;
   4. Assist the commission in any judicial review of a commission determination of the rates of an electric utility; and
   5. When it will not interfere with the section’s participation in utility rate proceedings, perform such other duties regarding any utility matter which the director of utilities may establish.

History. Code 1933, § 93-205a, enacted by Ga. L. 1981, p. 121, § 4.

46-2-45. Relationship of Utility Finance Section to commission.

The Utility Finance Section shall have the following authority and relationship to the commission:

1. The section shall be part of the commission staff; and
2. The section shall be deemed a party to any proceeding to consider rates in which it participates, provided that it shall not have standing to appeal or contest the final order entered by the commission in such a proceeding.

History. Code 1933, § 93-206a, enacted by Ga. L. 1981, p. 121, § 4.

46-2-50. Conducting of hearings and investigations generally.

The commission shall conduct hearings and investigations in different parts of the state when, in the opinion of the commission, such hearings and investigations will best serve the interest and convenience of the public.

History. Ga. L. 1922, p. 143, § 3; Code 1933, § 93-502.

46-2-51. Prescription by commission of rules of procedure and rules of evidence; promulgation of rules and regulations as to rehearing, reconsideration, and oral argument of orders.

The commission shall prescribe the rules of procedure and the rules for the taking of evidence in all matters that may come before it. In the investigation, preparation, and hearing of cases, the commission shall not be bound by the strict technical rules of pleading and evidence but may exercise such discretion as will facilitate its efforts to ascertain the facts bearing upon the right and justice of the matters before it. When deemed necessary, in all formal cases heard and determined, the commission shall render an opinion setting out the issues involved in the case and its decision, ruling, and findings thereon. The commission is authorized to provide by rule and regulation for the procedure to be observed in the rehearing, reconsideration, and oral argument of all orders entered by the commission.

History. Ga. L. 1922, p. 143, § 3; Code 1933, § 93-501; Ga. L. 1945, p. 356, § 2.

Law reviews.

For comment on Tamiami Trail Tours, Inc. v. Georgia Pub. Serv. Comm’n, 213 Ga. 418 , 99 S.E.2d 225 (1957), see 20 Ga. B.J. 247 (1957).

46-2-52. Keeping of records of proceedings on formal investigations; transcribing of testimony.

A full and complete record as provided in paragraph (8) of subsection (a) of Code Section 50-13-13 shall be kept of all proceedings conducted before the commission on any formal investigation; and all testimony shall be transcribed by the official reporter appointed by the commission.

History. Ga. L. 1922, p. 143, § 4; Code 1933, § 93-503.

46-2-53. [Reserved] Reports, rate schedules, orders, rules, or regulations of commission as admissible evidence in court proceedings.

History. Ga. L. 1907, p. 72, § 5; Civil Code 1910, § 2626; Ga. L. 1922, p. 143, § 1; Code 1933, § 93-504; repealed by Ga. L. 2011, p. 994, § 89/HB 24, effective January 1, 2013.

Editor’s notes.

Ga. L. 2011, p. 994, § 89/HB 24 repealed and reserved this Code section, effective January 1, 2013.

Ga. L. 2011, p. 99, § 101/HB 24, not codified by the General Assembly, provides that this Act shall apply to any motion made or hearing or trial commenced on or after January 1, 2013.

46-2-54. Power to issue subpoenas; payments to witnesses; failure or refusal to obey subpoenas.

1. In making any examination for the purpose of obtaining information pursuant to this title, the commission shall have the power to issue subpoenas for the attendance of witnesses by such rules as it may prescribe.
2. Witnesses shall receive for such attendance the same fees and mileage as prescribed by law in civil cases in the superior court. Such compensation shall be ordered paid by the Governor upon presentation of subpoenas and statements as to the number of days served and miles traveled. Such statements shall be sworn to by the witnesses before the clerk of the commission, who shall have the power to administer oaths.
3. If any person willfully fails or refuses to obey such subpoena, it shall be the duty of the judge of the superior court of any county, upon application of the commission, to issue an attachment for such witness and compel him to attend the meeting of the commission and give his testimony upon such matters as shall be lawfully required by such commission. The court shall have power to punish for contempt as in other cases of refusal to obey the process and order of the court.

History. Ga. L. 1878-79, p. 125, § 15; Code 1882, § 719o; Civil Code 1895, § 2210; Civil Code 1910, § 2653; Ga. L. 1922, p. 143, § 5; Code 1933, § 93-505.

46-2-55. Compelling witnesses to testify before commission as to the giving or granting of rebates or as to discriminations in rates and charges by common carriers.

In investigating complaints of violations by common carriers of the laws prohibiting the giving or granting of rebates and prohibiting unjust discrimination in rates and charges, the commission may exercise the power and authority to compel the shipper or consignee, or any officer, agent, or employee of a common carrier to give evidence relating to such complaints. Before any such person shall be compelled to give evidence relating to such complaints, the commission shall make an order that such witness is required by the commission to testify and that he will be exempt thereafter from indictment or prosecution for any transaction about which he is compelled to testify. When such order is made, the witness shall be compelled to give evidence touching such complaints, and he shall be forever free from indictment or prosecution in any court touching the matters about which he is compelled to testify.

History. Ga. L. 1896, p. 57, § 1; Civil Code 1910, § 2636; Ga. L. 1922, p. 143, § 5; Code 1933, § 93-506.

Cross references.

Prohibition against compelled self-incrimination, Ga. Const. 1983, Art. I, Sec. I, Para. XVI.

General prohibition against unjust discrimination in freight-transportation rates by common carriers, § 46-9-52 .

46-2-56. Compelling witnesses to testify against common carriers or any other person in court.

If a witness is exempted from indictment or prosecution as provided in Code Section 46-2-55, he may also be compelled to give evidence in any action or prosecution instituted in any of the courts of this state against any common carrier or against any other person on account of the transactions about which he is compelled to testify before the commission.

History. Ga. L. 1896, p. 57, § 2; Civil Code 1910, § 2637; Ga. L. 1922, p. 143, § 5; Code 1933, § 93-507.

46-2-57. Obtaining of discovery by employees and agents of commission; petitions by commission for necessary orders, injunctions, and subpoenas; extension of suspension period by Superior Court of Fulton County; time of hearing of applications and petitions from commission.

1. In any case pending before it, the commission, in addition to its now existing authority to do so, is authorized to issue an order permitting its employees and agents to take depositions and otherwise obtain discovery of any matter, not privileged, which is relevant to the subject matter involved in the investigation, proceeding, or petition before the commission, in the same manner prescribed in Chapter 11 of Title 9 for discovery in civil actions. In any case involving an application of a gas company to establish just and reasonable rates pursuant to Code Section 46-2-23.1 or 46-4-154, intervenors who are granted party status pursuant to Code Section 46-2-59, as well as the gas company subject to the particular proceeding, shall have all discovery rights available under Chapter 11 of Title 9.
2. The commission, its agents and employees as directed by the commission, and intervenors and gas companies which are granted discovery rights under subsection (a) of this Code section are authorized to petition the Superior Court of Fulton County for all orders, injunctions, and subpoenas necessary to carry out the provisions of this Code section which would otherwise be authorized or necessary under Chapter 11 of Title 9; and the judges and clerks of the court are authorized to issue all such orders, injunctions, and subpoenas and to take all other actions necessary to carry out this Code section which would otherwise be authorized or necessary under Chapter 11 of Title 9.
3. In addition to the sanctions which may be imposed under Code Section 9-11-37, the Superior Court of Fulton County is further authorized to extend the period of suspension of the operation of any new schedules and defer the use of such rates, charges, classifications, or service beyond the time authorized by Code Section 46-2-25, if the court, upon application of the commission, determines that the failure of any regulated utility to comply with a discovery request of the commission, its agents, or its employees is unreasonable and requires such extension. No such extension of the period of suspension shall be considered by the court unless the utility has failed completely to respond to a valid deposition or discovery request.
4. Any application or petition made by the commission, its agents, or its employees pursuant to this Code section shall be heard within 20 days of the filing of the application or petition, irrespective of whether any response to the application or petition has previously been made, and shall be disposed of promptly.

History. Ga. L. 1922, p. 145, § 5; Code 1933, § 93-508; Ga. L. 1979, p. 1084, § 1; Ga. L. 1997, p. 798, § 3.

Law reviews.

For article commenting on the 1997 amendment of this section, see 14 Ga. St. U.L. Rev. 264 (1997).

46-2-58. Conducting of hearings by hearing officers.

1. The commission shall employ one or more hearing officers to perform the duties set forth in this Code section. Hearing officers shall be persons qualified by knowledge and experience to conduct hearings on utility and transportation matters. In addition, the commission may employ part-time hearing officers, if necessary, to handle the caseload.
2. In all utility proceedings commenced after July 1, 1981, any hearing may be conducted by a hearing officer, who shall have authority to:
   1. Administer oaths and affirmations;
   2. Sign and issue subpoenas for discovery or trial;
   3. Rule upon offers of proof;
   4. Regulate the course of the hearing, setting the time and place for continued hearings;
   5. Permit persons to make limited appearances as provided in Code Section 46-2-59;
   6. Take official notice of judicially recognizable facts;
   7. Reprimand or exclude from the hearing any person for any indecorous or improper conduct committed at or during a hearing;
   8. Exercise such other powers necessary for the efficient and expeditious conduct of the hearing, to the end that a complete and orderly record may be developed; and
   9. Make written findings of fact based upon evidence in the record.
3. The hearing officer or commission shall permit only the Commissioners, the hearing officer, the parties, or the attorneys of record of the Commissioners, hearing officers, or parties to examine or cross-examine witnesses, except with the consent of the witness.
4. Within 30 days after the conclusion of a hearing, the hearing officer shall prepare and certify a record of the evidence to the commission. The hearing officer shall also transmit to the commission proposed written findings of fact based upon evidence in the record. A copy of the record and findings of fact shall be provided all parties of record by the hearing officer. The hearing officer may render an initial or recommended decision in uncontested cases, if directed to do so by the commission. Any such recommended decision shall also be served upon the parties of record, who shall be provided an opportunity to file with the commission its objections or comments.

History. Code 1933, § 93-501a, enacted by Ga. L. 1981, p. 121, § 6; Ga. L. 1981, p. 409, § 3.

Cross references.

Procedure for contested cases in administrative proceedings generally, § 50-13-13 .

46-2-59. Permissible parties in proceedings before commission; intervention in proceedings generally; limited appearances; procedure for granting leave to intervene.

1. In all proceedings before the commission, the parties to such proceeding shall consist of the affected applicant, any person who is permitted to intervene as provided in this Code section, and the Utility Finance Section established pursuant to Article 2A of this chapter.
2. Any person on whom a statute confers an unconditional right to intervene may intervene by filing a notice of intervention with the commission or hearing officer, as appropriate.
3. Any other person desiring to intervene must file an application for leave to intervene within 30 days following the first published notice of the proceeding. Any such application shall be in writing, shall be verified either by the party intervening or by his attorney on information and belief, shall identify the party requesting the intervention, and shall set forth with particularity the facts pertaining to his interest and the grounds upon which his application for intervention are based. Such application shall be served on all other parties in the proceeding, including those who have previously applied for leave to intervene. No untimely application for leave to intervene shall be granted by the presiding authority except for good cause shown.
4. Any party or person who has previously applied for leave to intervene in a proceeding in which leave to intervene is sought by another person may file a response to the application for leave to intervene within 15 days after the application is served.
5. The commission or hearing officer shall permit only the following persons to intervene:
   1. A person upon whom a statute confers an unconditional right to intervene;
   2. A person who demonstrates a legal, property, or other interest in the proceeding. In determining whether to permit intervention, the hearing officer may consider whether the person’s interest is adequately represented by other parties and whether the intervention will unduly delay the proceedings or prejudice the rights of other parties;
   3. Any member of the General Assembly of the State of Georgia, who may without fee intervene on behalf of his constituents with the full rights and privileges of a designated party.
6. The commission or hearing officer may condition any order permitting intervention so as to assure the orderly conduct of the proceeding.
7. A person who is not a party may make a limited appearance by making an oral or written statement of his position on the issues within such limits and on such conditions as may be fixed by the hearing officer; but he may not otherwise participate in the proceeding.
8. A party granted leave to intervene shall be present, absent good cause shown, during that portion of the proceedings for which that party has indicated a desire to be heard.
9. An order by a hearing officer denying or conditioning an application for leave to intervene shall be immediately reviewable by the commission. An order by the commission denying or conditioning an application for leave to intervene shall be immediately reviewable as provided by law for the judicial review of final commission orders.
10. Nothing in this Code section shall be construed to prohibit the commission from taking any action prior to the expiration of the 30 day period during which persons are permitted to file applications for leave to intervene.

History. Code 1933, § 93-502a, enacted by Ga. L. 1981, p. 121, § 6.

Cross references.

Intervention in administrative proceedings generally, § 50-13-14 .

Law reviews.

For annual survey of administrative law, see 38 Mercer L. Rev. 17 (1986).

For article, “Administrative Law,” see 63 Mercer L. Rev. 47 (2011).

46-2-70. Definitions.

As used in this article, the term:

1. “Corporation” means any private corporation, municipal corporation, joint-stock company, partnership, association, business trust, or other organized group of persons, whether incorporated or not, or a receiver or trustee of any of the foregoing.
2. “Person” means an individual or a corporation.
3. “Utility” means any person who supplies, furnishes, or sells a utility service.
4. “Utility service” means gas or electricity which is supplied, sold, or furnished by any person subject to the jurisdiction of the commission.

History. Ga. L. 1972, p. 470, § 1.

46-2-71. Power of commission to allocate utility service and to alter, amend, suspend, or terminate existing rates, schedules, contracts, rules, or regulations; findings required before commission exercises powers of allocation.

1. Subject to subsection (b) of this Code section, the commission shall have the power and authority to allocate any utility service in such manner as it deems proper in order to protect the public health, safety, or welfare, including for such purposes the power and authority to alter, amend, suspend, or terminate any existing rate, schedule, contract, rule, or regulation affecting such utility service and to prescribe new or additional rates, schedules, contracts, rules, or regulations affecting such utility service, provided that in any event such rates, schedules, contracts, rules, or regulations as are altered, amended, or prescribed by the commission shall be just and reasonable.
2. Before the commission may exercise the power and authority granted by subsection (a) of this Code section, it must:
   1. Find, after a hearing respecting the manner, if any, in which the commission should exercise such power and authority, as well as the necessity therefor, such hearing to be initiated by the commission on its own motion or by any person and to be preceded by notice to the persons affected, that there exists a shortage in the quantities of such utility service available in this state or in any portion of the state, or that such a shortage is imminent, and that it is necessary for the commission to exercise such power and authority in order to protect the public health, safety, or welfare; or
   2. Find that an emergency exists with respect to the quantities of such utility service available in this state or in any portion of the state, and that it is necessary for the commission to exercise such power and authority in order to protect the public health, safety, or welfare before notice and hearing can be afforded to the persons affected; provided, however, that the directives, rulings, and orders of the commission respecting such utility service based upon a finding that an emergency exists pursuant to this paragraph shall be temporary and provisional and the commission shall, as soon as practicable under the circumstances, afford notice and hearing to the persons affected as to whether such directives, rulings, or orders of the commission shall be continued, modified, made permanent, or otherwise affected.

History. Ga. L. 1972, p. 470, § 2.

Cross references.

Limitation on power of Governor upon declaration of state of energy emergency, § 38-3-51(h) .

46-2-72. Immunity from liability of persons acting in accordance with ruling or order of commission entered pursuant to Code Section 46-2-71.

Any person who supplies, furnishes, sells, limits, withholds, receives, or otherwise acts with respect to any utility service in accordance with a directive, ruling, or order entered by the commission pursuant to the authority granted by Code Section 46-2-71 will not be held liable to any other person by reason thereof in any action at law or in equity.

History. Ga. L. 1972, p. 470, § 3.

46-2-90. Liability of companies subject to jurisdiction of commission generally; venue for actions generally; award of attorney’s fee.

If any company under the jurisdiction of the commission does, causes to be done, or permits to be done any act which is prohibited, forbidden, or declared to be unlawful, or fails to do any act which is required either by a law of this state or by an order of the commission, such company shall be liable to the persons affected thereby for all loss, damage, or injury caused thereby or resulting therefrom. An action to recover for such loss, damage, or injury may be brought in any court of competent jurisdiction by any such person. In case of recovery, if the jury finds that such act or failure to act was willful, it may fix a reasonable attorney’s fee, which shall be taxed and collected as part of the costs of the case.

History. Ga. L. 1907, p. 72, § 9; Civil Code 1910, § 2666; Code 1933, § 93-415.

Law reviews.

For article advocating that payment of attorneys fees be assigned to the losing party, see 18 Ga. B.J. 439 (1956).

For annual survey of recent developments, see 38 Mercer L. Rev. 473 (1986).

For annual survey on administrative law, see 69 Mercer L. Rev. 15 (2017).

46-2-91. Penalties recoverable before commission; superior court filing of certain commission orders; venue; effect of judgment.

1. Except as provided in subsection (b) of this Code section, any person, firm, or corporation (referred to in this Code section as a “utility”) subject to the jurisdiction of the commission, which utility willfully violates any law administered by the commission or any duly promulgated regulation issued thereunder or which fails, neglects, or refuses to comply with any order after notice thereof, shall be liable to a penalty not to exceed $15,000.00 for such violation and an additional penalty not to exceed $10,000.00 for each day during which such violation continues.
2. Any operator which violates any rule or regulation of the commission prescribed pursuant to subsection (i) of Code Section 46-2-20, or which fails, neglects, or refuses to comply with any order after notice thereof, shall be liable to a penalty not to exceed the maximum penalties provided for in 49 C.F.R. Section 190.223. As used in this subsection, the term “operator” means any person who engages in the transportation of natural gas by pipeline.
3. 1. The commission, after a hearing conducted after not less than 30 days’ notice, shall determine whether any utility has willfully violated any law administered by the commission or any duly promulgated regulation issued thereunder, or has failed, neglected, or refused to comply with any order of the commission. Upon an appropriate finding of a violation, the commission may impose by order such civil penalties as are provided by either subsection (a) or (b) of this Code section, but not both. In each such proceeding, the commission shall maintain a record as provided in paragraph (8) of subsection (a) of Code Section 50-13-13 including all pleadings, a transcript of proceedings, a statement of each matter of which the commission takes official notice, and all staff memoranda or data submitted to the commission in connection with its consideration of the case. All penalties and interest thereon (at the rate of 10 percent per annum) recovered by the commission shall be paid into the general fund of the state treasury.
   2. Any party aggrieved by a decision of the commission may seek judicial review as provided in subsection (d) of this Code section.
4. 1. Any party who has exhausted all administrative remedies available before the commission and who is aggrieved by a final decision of the commission in a proceeding described in subsection (c) of this Code section may seek judicial review of the final order of the commission in the Superior Court of Fulton County.
   2. Proceedings for review shall be instituted by filing a petition within 30 days after the service of the final decision of the commission or, if a rehearing is requested, within 30 days after the decision thereon. A motion for rehearing or reconsideration after a final decision by the commission shall not be a prerequisite to the filing of a petition for review. Copies of the petition shall be served upon the commission and all parties of record before the commission.
   3. The petition shall state the nature of the petitioner’s interest, the facts showing that the petitioner is aggrieved by the decision, and the ground, as specified in paragraph (6) of this subsection, upon which the petitioner contends that the decision should be reversed. The petition may be amended by leave of court.
   4. Within 30 days after service of the petition, or within such further time as is stipulated by the parties or as is allowed by the court, the agency shall transmit to the reviewing court the original or a certified copy of the entire record of the proceedings under review. By stipulation of all parties to the review proceedings, the record may be shortened. A party unreasonably refusing to stipulate that the record be limited may be taxed for the additional costs. The court may require or permit subsequent corrections or additions to the record.
   5. If, before the date set for hearing, application is made to the court for leave to present additional evidence, and it is shown to the satisfaction of the court that the additional evidence is material and there were good reasons for failure to present it in the proceedings before the agency, the court may order that the additional evidence be taken before the commission upon such procedure as is determined by the court. The commission may modify its findings and decision by reason of the additional evidence and shall file that evidence and any modifications, new findings, or decisions with the reviewing court.
   6. The review shall be conducted by the court without a jury and shall be confined to the record. The court shall not substitute its judgment for that of the commission as to the weight of the evidence on questions of fact. The court may affirm the decision of the commission or remand the case for further proceedings. The court may reverse the decision of the commission if substantial rights of the petitioner have been prejudiced because the commission’s findings, inferences, conclusions, or decisions are:
      1. In violation of constitutional or statutory provisions;
      2. In excess of the statutory authority of the commission;
      3. Made upon unlawful procedure;
      4. Clearly not supported by any reliable, probative, and substantial evidence on the record as a whole; or
      5. Arbitrary or capricious.
   7. A party aggrieved by an order of the court in a proceeding authorized under subsection (c) of this Code section may appeal to the Supreme Court of Georgia or to the Court of Appeals of Georgia in accordance with Article 2 of Chapter 6 of Title 5, the “Appellate Practice Act.”
5. The commission may file in the superior court in the county in which the person under order resides or in the county in which the violation occurred or, if the person is a corporation, in the county in which the corporation maintains its principal place of business a certified copy of a final order of the commission unappealed or of a final order of the commission affirmed upon appeal, whereupon the court shall render judgment in accordance therewith and notify the parties. The judgment shall have the same effect, and all proceedings in relation thereto shall thereafter be the same, as though the judgment had been rendered in an action duly heard and determined by the court.

History. Code 1933, § 93-309.2, enacted by Ga. L. 1973, p. 677, § 2; Ga. L. 1992, p. 1640, § 1; Ga. L. 1997, p. 708, § 1; Ga. L. 2004, p. 366, § 1; Ga. L. 2006, p. 708, § 1/SB 210; Ga. L. 2020, p. 358, § 1/HB 972.

The 2004 amendment, effective July 1, 2004, deleted “or by subsection (a) of Code Section 46-2-94” following “this Code section” at the end of the second sentence in paragraph (b)(1).

The 2006 amendment, effective July 1, 2006, added subsection (d).

The 2020 amendment, effective July 29, 2020, substituted “Except as provided in subsection (b) of this Code section, any” for “Any” at the beginning of subsection (a); added subsection (b); redesignated former subsections (b) through (d) as present subsections (c) through (e), respectively; substituted “provided by either subsection (a) or (b) of this Code section, but not both” for “provided by subsection (a) of this Code section” at the end of the second sentence of paragraph (c)(1); substituted “subsection (d)” for “subsection (c)” near the end of paragraph (c)(2); substituted “subsection (c)” for “subsection (b)” in the middle of paragraph (d)(1); and substituted “subsection (c)” for “subsection (b)” in the middle of paragraph (d)(7).

46-2-92. Penalties recoverable by state through civil action.

1. Every company under the jurisdiction of the commission, and all officers, agents, and employees of every such company, shall obey, observe, and comply with every order made by the commission under authority of law. Any company under the jurisdiction of the commission, or any officer, agent, or employee thereof, who or which violates any provision of this Code section, or who or which fails, omits, or neglects to obey, observe, and comply with any rule, regulation, order, direction, or requirement of the commission, shall forfeit to the state a sum of not more than $5,000.00 for each offense, the amount to be fixed by the presiding judge. Every violation of this Code section or any other Code section, or of any rule, regulation, order, direction, or requirement of the commission shall be a separate and distinct offense; in case of a continued violation, every day a violation thereof takes place shall be deemed a separate and distinct offense.
2. An action for the recovery of the penalty provided in subsection (a) of this Code section may be brought in the county of the principal office in this state of such company, or in the county of the state where such violation occurs and such wrong is perpetrated, or in any county in this state through which the company operates. Where the violation consists of an excessive charge for the carriage of freight or passengers or for any other service rendered, as such violation is described in Code Section 46-9-250, an action may be brought in any county in which the charges are made, or through which counties it was intended that such passengers or freight should have been carried, or through which counties such company operates. Any action pursuant to this Code section shall be brought in the name of the state by direction of the Governor.
3. Any proceeding to enforce the penalty provided in subsection (a) of this Code section may be tried at the first term of the court to which it is brought and shall be given precedence over other business by the presiding judge. The court shall not be adjourned until such proceeding is legally continued or disposed of. The decision in such case may be taken to the Court of Appeals as in other cases.

History. Ga. L. 1907, p. 72, § 12; Civil Code 1910, § 2667; Code 1933, § 93-416; Ga. L. 1946, p. 726, § 1.

46-2-93. Criminal penalty; venue for actions; calling of agents and employees of company as witnesses; use of testimony against agents and employees.

Every officer, agent, or employee of any company under the jurisdiction of the commission who violates or procures, aids, or abets any violation by any such company of any provision of this title; or who fails to obey, observe, or comply with any order of the commission; or who aids or abets any such company in its failure to obey, observe, and comply with any such order, direction, or provision, shall be guilty of a misdemeanor. Such officer, agent, or employee shall be subject to prosecution in any county in which the company or the officer, agent, or employee violates any provision of this title or any provision of any order of the commission, or in any county through which the company operates. Such officer, agent, or employee shall also be subject to prosecution under this title in any county in which a subordinate agent or employee of the company violates any provision of this title, by the approval or direction, or in consequence of the approval or direction, of such officer, agent, or employee; and the agent or employee who locally in any county violates the rules or directions of said commission pursuant to the direction or authority of a superior officer may be called as a witness and be compelled to testify as to the authority by which he acted. Such testimony shall not be used against such subordinate employee or agent, nor shall he thereafter be subject to prosecution for said offense.

History. Ga. L. 1907, p. 72, § 13; Civil Code 1910, § 2668; Penal Code 1910, § 527; Code 1933, § 93-9901; Ga. L. 1982, p. 3, § 46.

Cross references.

Prohibition against compelled self-incrimination, Ga. Const. 1983, Art. I, Sec. I, Para. XVI.

46-2-94. [Reserved] Operation as household goods carrier for hire without having valid certificate prohibited.

History. Ga. L. 1992, p. 1640, § 2; repealed by Ga. L. 2004, p. 366, § 2, effective July 1, 2004.

Editor’s notes.

Ga. L. 2004, p. 366, § 2 repealed and reserved this Code section, effective July 1, 2004.

46-2-95. Civil actions; standard for obtaining an injunction.

The commission may bring a civil action to enjoin the violation of any law administered by the commission or any rule, order, or regulation established by the commission. It shall not be necessary to allege or prove that there is no adequate remedy at law to obtain an injunction under this Code section.

History. Code 1981, § 46-2-95 , enacted by Ga. L. 2002, p. 475, § 5.

Effective date. —

This Code section became effective April 25, 2002.

Editor’s notes.

Ga. L. 2002, p. 475, § 1, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Natural Gas Consumers’ Relief Act.’ ”

Law reviews.

For note on the 2002 enactment of this chapter, see 19 Ga. St. U.L. Rev. 285 (2002).

46-2A-1. Annual audit of affairs of electric utilities.

1. Each electric utility shall provide for the appointment by its board of directors of an audit committee consisting solely of directors who are not officers or employees of the electric utility. Such audit committee shall make an annual examination into the affairs of the electric utility and report the result of such audit in writing to the board of directors at its next regular meeting.
2. The report provided for in subsection (a) of this Code section shall state whether the electric utility is in a sound condition and whether adequate internal audit controls and procedures are being maintained and shall recommend to the board of directors such changes in the manner of conducting the affairs of the electric utility as shall be deemed advisable. The board of directors shall report in writing to the commission that such audit has been made and reviewed by the board of directors.

History. Code 1933, § 93-1001, enacted by Ga. L. 1981, p. 121, § 7.

46-2A-2. Management audit of electric utilities.

1. Not more frequently than every five years, the commission shall cause to be performed a management audit of each electric utility to determine whether it is being managed in an efficient and effective manner.
2. The management audit provided for in this Code section shall be performed by a qualified and reputable management auditor of national reputation, to be selected by the commission from a list of not less than three such auditors, which list shall be made up by mutual agreement of the commission and the electric utility. The management auditor shall report the results of the audit to the commission.
3. In the event that the commission and the electric utility are unable to agree on a list of management auditors, either party may petition the Superior Court of Fulton County to select, within 30 days of filing, such a list after a hearing on the petition.
4. The audited electric utility shall pay for the management audit. The cost of the management audit shall be recognized by the commission as an operating expense of the utility; and the utility’s rates shall be fixed by the commission to recover this retail expense amortized over such period as the commission may direct.

History. Code 1933, § 93-1002, enacted by Ga. L. 1981, p. 121, § 7.

46-3-1. Short title.

This part shall be known as the “Georgia Territorial Electric Service Act.”

History. Ga. L. 1973, p. 200, § 1.

Law reviews.

For annual survey of local government law, see 43 Mercer L. Rev. 317 (1991).

For annual survey of local government law, see 44 Mercer L. Rev. 309 (1992).

For annual survey of construction law, see 56 Mercer L. Rev. 109 (2004).

46-3-2. Legislative findings and declaration of policy.

The public interest requires, and it is declared to be the policy of the State of Georgia, that, in order (1) to assure the most efficient, economical, and orderly rendering of retail electric service within the state, (2) to inhibit duplication of the lines of electric suppliers, (3) to foster the extension and location of electric supplier lines in the manner most compatible with the preservation and enhancement of the state’s physical environment, and (4) to protect and conserve lines lawfully constructed by electric suppliers, it is necessary and appropriate that the state establish and implement a plan whereby every geographic area within the state shall be either assigned to an electric supplier or declared unassigned as to any electric supplier; that, to accomplish such a plan, it is necessary that all electric suppliers within the state be subject to this part; that the commission be delegated power, authority, and jurisdiction with respect to such plan; and that all electric membership corporations and all municipalities which furnish retail electric service be additionally subject to regulation by the commission in the same manner as provided for regulation of electric light and power companies, except as to the fixing of their rates, charges, and service rules and regulations, it being determined by the General Assembly that such electric membership corporations and municipalities, which by their corporate nature are wholly or substantially controlled by their consumers, should for regulatory purposes be classified differently in certain respects from electric light and power companies.

History. Ga. L. 1973, p. 200, § 2.

46-3-3. Definitions.

As used in this part, the term:

1. “Assigned area” means an enclosed geographic area assigned to only one electric supplier by the commission or by this part, and inside which the assignee electric supplier shall have the exclusive right to extend and continue furnishing service to new premises, except as otherwise provided in this part.
2. “Electric membership corporation” has the meaning provided by paragraph (3) of Code Section 46-3-171.
3. “Electric supplier” means any electric light and power company subject to regulation by the commission, any electric membership corporation furnishing retail service in this state, and any municipality which furnishes such service within this state.
4. “Line” means any conductor for the distribution or transmission of electricity other than a conductor operating at a potential of 120,000 volts or more. However, a conductor that initially constitutes a line shall not cease being a line if, after March 29, 1973, it is operating at a potential in excess of 120,000 volts.
5. “Municipality” means:
   1. Any geographically defined political subdivision of this state, other than a county, performing or authorized to perform multiple and substantial municipal functions, specifically including either the function of furnishing retail electric service or the function of granting to electric suppliers street franchise rights for use in furnishing retail electric service;
   2. Any geographically defined political subdivision, or agency thereof, of this state if at any relevant time it lawfully furnishes retail electric service; and
   3. Any political subdivision of any other state which furnishes retail electric service within this state.
6. “Premises” means the building, structure, or facility to which electricity is being or is to be furnished, provided that two or more buildings, structures, or facilities which are located on one tract or contiguous tracts of land and are utilized by one electric consumer shall together constitute one premises; provided, however, that any such building, structure, or facility shall not, together with any other building, structure, or facility, constitute one premises if the permanent service to it is separately metered and the charges for such service are calculated independently of charges for service to any other building, structure, or facility; provided, further, that an outdoor security light, or an outdoor sign requiring less than 2200 watts, shall not constitute a premises.
7. “Primary supplier” within a municipality in existence on March 29, 1973, means, either:
   1. That electric supplier which, on March 29, 1973, is furnishing service to the majority or to a plurality, whichever is the case, of the retail electric meters then inside the corporate limits of the municipality; or
   2. That electric supplier to which the commission has reassigned a geographic area, previously assigned to another electric supplier, located within such municipality as its limits existed on March 29, 1973.
8. “Secondary supplier” within a municipality in existence on March 29, 1973, means any electric supplier which owns lines on that date within such municipality and which is not a primary supplier.
9. “Service” means retail electric service and includes temporary or construction service as well as permanent service but excludes wholesale service and sales for resale.
10. “To own” or “to belong” or the like means, wherever used in reference to lines being used by an electric supplier, to have any proprietary or possessory interest.
11. “Unassigned area-A” means a geographic area which, between March 29, 1973, and Sept. 1, 1975, was not an assigned area and was not declared to be an unassigned area-B.
12. “Unassigned area-B” means a geographic area which has not been assigned and which has been declared by the commission to be, or by operation of this part becomes, an unassigned area-B, and inside which an electric supplier shall have the right to extend and thereafter continue furnishing service to new premises locating therein if chosen by the consumer utilizing such premises, provided that an electric supplier whose line, as it exists on March 29, 1973, or as thereafter lawfully constructed to serve new premises pursuant to this part, is at least partially within 500 feet of such new premises shall have the exclusive right to extend and continue furnishing service to such premises if the line of every other electric supplier so existing or so thereafter constructed is at that time wholly more than 500 feet from such premises.
13. “Wholly new municipality” means a municipality initially coming into existence after March 29, 1973, but not one resulting from the reincorporation of all or any portion of a geographic area theretofore contained in a previously existing municipality or from the merger, consolidation, or any other combination of two or more political subdivisions which are counties or incorporated cities.

History. Ga. L. 1973, p. 200, § 3; Ga. L. 1982, p. 3, § 46; Ga. L. 2006, p. 72, § 46/SB 465.

The 2006 amendment, effective April 14, 2006, part of an Act to revise, modernize, and correct the Code, substituted the present provisions of paragraph (2) for the former provisions, which read: “ ‘Electric membership corporation’ means a corporation organized under Article 2 of this chapter.”

Law reviews.

For article, “Administrative Law,” see 53 Mercer L. Rev. 81 (2001).

46-3-4. Assignment or declaration as unassigned areas-B of geographic areas outside municipal limits as of March 29, 1973.

After March 29, 1973, and continuing thereafter as rapidly as it is administratively practicable to do so, the commission is authorized and directed to assign to electric suppliers or to declare as unassigned areas-B all geographic areas in this state that were, on March 29, 1973, located outside the corporate limits of any municipality. Such assignments and declarations of unassignment shall be effected by the commission in accordance with the following standards:

1. Assigned areas shall be described by defined boundaries on maps to be filed with the commission and incorporated by it in its orders. Where deemed necessary or appropriate, the commission may require boundaries to be additionally described by written metes and bounds;
2. Each geographic area assigned shall be assigned to only one electric supplier, as determined by public convenience and necessity, having primary regard for the location of electric suppliers’ lines but having no regard for differences in electric suppliers’ retail rates or for the fact that retail consumers are not then being served from such lines;
3. Each geographic area assigned shall be so assigned that its boundaries enclose land spaces in which the assignee electric supplier owns all or a preponderance of the lines, provided that a geographic area may be so assigned or declared unassigned even though it is completely surrounded by the inner boundaries of another geographic area assigned to an electric supplier. Boundaries will be located around the perimeter of such land spaces so as to be approximately 1,000 feet from the nearest of the assignee electric supplier’s lines so enclosed, provided that if the lines of two or more electric suppliers are closer together than 2,000 feet, the boundary shall be located approximately halfway between them; provided, however, that where compelling factors of public convenience and necessity so require, including the need for using natural and manmade landmarks for boundary references, the location of a boundary may vary somewhat more or somewhat less than such 1,000 foot or halfway distance; provided, further, that such 1,000 foot or halfway distance standards shall not apply to any lines of the assignee electric supplier which extend from inside the assigned area outside such area or to any lines of any other electric supplier which extend from outside the area inside or completely across such area and which do not otherwise occasion assignment or unassignment of land space, the rights and restrictions applying to such other electric supplier’s lines inside such area being as provided for in paragraph (4) of this Code section;
4. A line of an electric supplier which extends into or completely crosses a land space in which another electric supplier owns a preponderance of the lines may nevertheless be considered as the basis for assigning or declaring unassigned land space related thereto; but, unless such line so occasions an assignment or an unassignment, then, from and after the date of the assignment to an electric supplier of the geographic area within which such line is enclosed and based upon the location of both suppliers’ lines on that date, the electric supplier owning such enclosed line shall have the exclusive right to extend and continue furnishing service to all new premises locating at least partially within 500 feet of such line and wholly more than 500 feet from the assignee electric supplier’s lines and shall have the right, if chosen by the consumer utilizing such premises, to extend and continue furnishing service to new premises locating at least partially within 500 feet of both electric suppliers’ lines but shall not otherwise have the right, unless so agreed by the assignee electric supplier and the consumer utilizing such premises, to extend and furnish service to any other premises locating inside such assigned area;
5. Except where public convenience and necessity require their assignment, the commission shall declare as unassigned areas-B those land spaces which are not assigned to an electric supplier pursuant to any other provision of this part; and
6. Not inconsistent with Code Section 46-3-8, any electric supplier may apply to the commission for assignment to it of one or more geographic areas or for the commission to declare one or more geographic areas to be unassigned areas-B.

History. Ga. L. 1973, p. 200, § 4.

Law reviews.

For annual survey of law on administrative law, see 62 Mercer L. Rev. 1 (2010).

For article, “The Chevron Two-Step in Georgia’s Administrative Law,” see 46 Ga. L. Rev. 871 (2012).

46-3-5. Assignment of geographic areas within municipal limits as of March 29, 1973.

Except as otherwise provided in subsection (a) of Code Section 46-3-8, all geographic areas inside the corporate limits of every municipality, as such limits existed on March 29, 1973, are assigned to the primary supplier, subject to the rights and restrictions applying to electric suppliers owning lines therein, as follows: Based upon the location of all electric suppliers’ lines therein on March 29, 1973, every secondary supplier shall have the exclusive right to extend and continue furnishing service to new premises locating therein at least partially within 300 feet of its line and wholly more than 300 feet from the lines of every other electric supplier; and shall have the right, if chosen by the consumer utilizing such premises, to extend and continue furnishing service to new premises locating therein at least partially within 300 feet of both its lines and the lines of any other electric supplier; but shall not otherwise have the right, unless so agreed by the primary supplier and by any other secondary supplier whose lines are located at least partially within 300 feet thereof and the consumer utilizing such premises, to extend and continue furnishing service to any other premises locating therein, which shall be the exclusive right of the primary supplier or such other secondary supplier, if such be the case.

History. Ga. L. 1974, p. 200, § 5; Ga. L. 1982, p. 3, § 46.

46-3-6. Assignment and unassignment of geographic areas included within wholly new municipalities after March 29, 1973.

As to geographic areas which, after March 29, 1973, are included within the initial limits of a wholly new municipality, the rights and restrictions applying to electric suppliers shall be as follows:

1. Any portion of such geographic area then already assigned to an electric supplier shall continue to be so assigned until and unless reassigned by the commission to another electric supplier pursuant to paragraph (1) of subsection (d) of Code Section 46-3-8; and
2. Any portion of such geographic area which is then unassigned shall continue to be so unassigned until and unless it is assigned by the commission, taking into account the recommendation, if any, of the municipality itself, to an electric supplier pursuant to paragraph (2) of subsection (d) of Code Section 46-3-8.

History. Ga. L. 1973, p. 200, § 6; Ga. L. 1982, p. 3, § 46.

46-3-7. Assignment and unassignment of geographic areas annexed to municipalities after March 29, 1973.

Whenever, after March 29, 1973, any geographic area is annexed to a municipality including the inclusion of a geographic area in a new municipality formed by the merger, consolidation, or any other combination of a then existing municipality and one or more other geographically defined political subdivisions, if the resulting political subdivision constitutes a municipality as defined in Code Section 46-3-3, such geographic area shall be assigned or assignable or become unassigned, and the rights and restrictions applying to electric suppliers therein shall be as follows:

1. In so much of such geographic area, if any, as was immediately theretofore within the limits of a municipality as they existed on March 29, 1973, or as they existed on the date on which a wholly new municipality came into existence, and if such annexation is caused by the merger, consolidation, or any other combination of such previously existing municipality and one or more other geographically defined political subdivisions, resulting in a political subdivision which constitutes a municipality as defined in Code Section 46-3-3, the rights and restrictions applying to all electric suppliers therein shall continue to be governed by Code Section 46-3-5 or 46-3-6, whichever is applicable;
2. As to such geographic areas other than those provided for in paragraph (1) of this Code section:
   1. So much of such geographic area, if any, as was already assigned to a primary supplier within a municipality which was in existence on March 29, 1973, shall continue to be so assigned, provided that if such annexation is caused by the merger, consolidation, or any other combination of two or more such municipalities having different primary suppliers, such assignments shall continue in favor of such primary suppliers respectively;
   2. If the annexation is to a wholly new municipality, then so much of such geographic area, if any, as was already assigned to an electric supplier then serving as an assignee electric supplier within such municipality shall continue to be so assigned;
   3. If such annexation includes one or more wholly new municipalities or one or more municipalities which were in existence on March 29, 1973, then so much of such geographic area, if any, as was then contiguous to a wholly new municipality and was already assigned to an assignee electric supplier within such wholly new municipality, or which was contiguous to a municipality which was in existence on March 29, 1973, and was already assigned to the primary supplier within such municipality, shall continue to be so assigned;
   4. As to such geographic areas which are annexed by other than merger, consolidation, or other combination of a previously existing municipality and one or more other geographically defined political subdivisions so as to result in a political subdivision which constitutes a municipality as defined in Code Section 46-3-3 but are not provided for in paragraph (1) of this Code section or in subparagraphs (A), (B), and (C) of this paragraph, so much of such geographic area, if any, as was already assigned to any electric supplier shall continue to be so assigned. In the event the primary supplier delivers, not less than 45 nor more than 90 days prior to the effective date of such annexation, written notice of such annexation upon every other electric supplier owning lines within the county or counties in which the annexing municipality is located (or, though not in the same county, within one mile of any portion of such geographic area), such portions of such geographic area as shall not have been already assigned to any other electric supplier shall by operation of this part become assigned to the primary supplier unless, on or before the effective date of such annexation, there is filed with the commission one or more applications by one or more other electric suppliers for the assignment of any portion of such geographic area. If such an application or applications are filed, then, until there is a final determination with respect to such application or applications, the service rights and restrictions applying to electric suppliers in so much of such geographic area as is the subject matter of the application or applications shall continue as they were immediately prior to the effective date of annexation. In such a proceeding, the commission, acting in accordance with Code Section 46-3-4, may make assignments of all or any portion of such geographic area to one or more applicant electric suppliers. Any portion of such geographic area not so assigned to any other electric supplier shall, effective as of the final determination of such application or applications, be assigned by operation of this part to the primary supplier, provided that if the commission finds and determines upon complaint that such assignment to the primary supplier of any such portion thereof will be grossly inimical to the public interest, it shall designate such portion as an unassigned area-B. In any geographic area assigned by operation of this part pursuant to this subparagraph, every secondary supplier shall have, based upon the location of all secondary suppliers’ lines therein on the effective date of the annexation, the exclusive right to extend and continue furnishing service to new premises locating therein at least partially within 300 feet of its line and wholly more than 300 feet from the lines of every other electric supplier; and shall have the right, if chosen by the consumer utilizing such premises, to extend and continue furnishing service to new premises locating therein at least partially within 300 feet of both its lines and the lines of any other electric supplier; but shall not otherwise have the right, unless so agreed by the assignee electric supplier and by any other secondary supplier whose lines are located at least partially within 300 feet thereof and the consumer utilizing such premises, to extend and continue furnishing service to any other premises locating therein, which shall be the exclusive right of the assignee electric supplier or such other secondary supplier, if such be the case; or
   5. If such geographic area was already an unassigned area-A or an unassigned area-B and was annexed by merger, consolidation or other combination of a previously existing municipality and one or more other geographically defined political subdivisions so as to result in a political subdivision which constitutes a municipality as defined in Code Section 46-3-3, or if such an unassigned area-A or unassigned area-B was otherwise annexed but the notice of annexation required by subparagraph (D) of this paragraph was not given, such geographic area shall, on the effective date of the annexation, become or continue to be, as the case may be, an unassigned area-B until and unless the commission assigns all or any portion thereof to an electric supplier pursuant to paragraph (2) of subsection (d) of Code Section 46-3-8.

History. Ga. L. 1973, p. 200, § 7; Ga. L. 1982, p. 3, § 46.

Cross references.

Annexation of territory by municipalities generally, Ch. 36, T. 36.

46-3-8. Exceptions, grandfather rights, and other rights.

1. Notwithstanding any other provision of this part, but subject to subsections (b) and (c) of this Code section, after March 29, 1973, service to one or more new premises (but if more than one, such premises must be located on the same tract or on contiguous tracts of land), if utilized by one consumer and having single-metered service and a connected load which, at the time of initial full operation of the premises, is 900 kilowatts or greater (excluding redundant equipment), may be extended and furnished, if chosen by the consumer:
   1. By the primary supplier within a municipality if the premises are located anywhere within the limits of such municipality as they existed on March 29, 1973;
   2. By a secondary supplier within the limits of a municipality as they existed on March 29, 1973, if the premises are located at least partially within 300 feet of the lines of such secondary supplier;
   3. By any electric supplier if the premises are located within the initial corporate limits of a wholly new municipality;
   4. By any electric supplier owning lines in a municipality if the premises are located in a geographic area annexed in any manner to such municipality after March 29, 1973; and
   5. By any electric supplier if the premises are located outside the limits of a municipality.
2. Notwithstanding any other provision of this part, but subject to subsections (c) and (h) of this Code section, every electric supplier shall have the exclusive right to continue serving any premises lawfully served by it on March 29, 1973, or thereafter lawfully served by it pursuant to this part, including any premises last and previously served by it which before or after March 29, 1973, have become disconnected from service for any reason, and including premises which before or after March 29, 1973, have been destroyed or dismantled and which are reconstructed after March 29, 1973, in substantial kind on approximately the same site.
3. Notwithstanding any other provision of this part:
   1. Upon its own complaint or the complaint of any other electric supplier or any other interested party, the commission shall have the authority and jurisdiction, after notice to all affected electric suppliers and after hearing, if a hearing is requested by any affected electric supplier or any other interested party, to find and determine that the service of an electric supplier then serving a premises or exclusively entitled under this part to serve such premises is not adequate or dependable or that such electric supplier’s rates, charges, service rules and regulations, or the application thereof unreasonably discriminate in favor of or against the consumer utilizing such premises, or that an electric supplier is in violation of subsection (b) of Code Section 46-3-11. Upon such determination, the commission shall have the authority and jurisdiction to order such electric supplier within a reasonable time to make such improvements as will make its service adequate and dependable, or to order such electric supplier within not less than 30 days to cease employing such discriminatory rates, charges, service rules and regulations, or the application thereof or the practices prohibited by subsection (b) of Code Section 46-3-11 and to substitute in lieu thereof, subject to approval by the commission, rates, charges, service rules and regulations, and practices of application thereof which are not unreasonably discriminatory, or practices in conformity with subsection (b) of Code Section 46-3-11. If the commission finds and determines in its first consideration of the matter that such electric supplier is unwilling or unable within a reasonable time to make its service adequate and dependable, or is unwilling within 30 days to cease and correct such unreasonable discrimination or practices, or if it finds in a subsequent consideration of the matter that its order to improve service, its order to cease and correct the unreasonable discrimination, or its order to cease and correct such practices has not been timely and in good faith complied with, it may then order such electric supplier to cease or desist from serving such premises and order any other electric supplier which may reasonably do so to extend and furnish service to such premises; and
   2. Upon the joint application of the affected electric suppliers, the commission shall have the authority and jurisdiction, after notice to all affected persons and after hearing, if a hearing is requested, to find and determine that the public convenience and necessity require, and thereupon to approve, the transfer of service from one electric supplier to another electric supplier.
4. Notwithstanding any other provision of this part, but subject to subsection (b) of this Code section, the commission may:
   1. If it determines that an assignee electric supplier has breached the tenets of public convenience and necessity therein, reassign all or any portion of an area assigned to that assignee electric supplier to another electric supplier; and
   2. If it determines that public convenience and necessity so require, assign to any electric supplier all or any portion of a geographic area which theretofore has been an unassigned area-A or an unassigned area-B.
5. Notwithstanding any other provision of this part:
   1. No portion of a line constructed after March 29, 1973, by an electric supplier inside another electric supplier’s assigned area, inside an unassigned area-A, or inside a municipality to serve premises which, but for the exception provided for in subsection (a) of this Code section, it would not have had the right to serve shall acquire any other service rights therein or impair or diminish any service rights of an assignee electric supplier or the service rights accruing to the lines of any electric supplier inside any assigned area, unassigned area-A, or municipality, provided that such electric supplier may extend and furnish service from such line to any other premises which it otherwise has the right to serve;
   2. No portion of a line constructed after March 29, 1973, by an electric supplier inside an unassigned area-B to serve premises which, but for the exception provided for in subsection (a) of this Code section, it would not have had the right to serve shall impair or diminish any service rights accruing to the lines of any other electric supplier inside such unassigned area-B, provided that such electric supplier may extend and furnish service from such line to any other premises which it otherwise has the right to serve;
   3. No portion of a line constructed after March 29, 1973, by an electric supplier for the initial sole purpose of furnishing service at wholesale shall acquire any other service rights or impair or diminish the service rights of any assignee electric supplier or the service rights accruing to the lines of any electric supplier, provided that such electric supplier may extend and furnish service from such line to any other premises which it otherwise has the right to serve;
   4. No electric supplier shall, after March 29, 1973, construct its lines to serve new premises except in accordance with sound electric utility standards. If, after a hearing involving the affected electric suppliers and any other interested party, the commission determines that an electric supplier is about to violate, is violating, or has violated such standards so as arbitrarily to preempt areas or arbitrarily to gain service rights for such a line, the commission is authorized and directed:
      1. To order the offending electric supplier to cease and desist such construction or to alter and relocate the same; or
      2. To declare that such line or any offending portion thereof shall not be taken into account in assigning an area or in locating an assigned area boundary or shall not acquire any service rights that would otherwise accrue thereto or impair or diminish any service rights accruing to the lines of any other electric supplier;
   5. Any electric supplier may extend and furnish service to any of its own premises devoted to public service, whether the same shall have already been served by another electric supplier, but no line constructed for such purpose after March 29, 1973, shall acquire any other service right or impair or diminish the service rights of any assignee electric supplier or the service rights accruing to the lines of any electric supplier, provided that such electric supplier may extend and furnish service from such line to other premises which it otherwise has the right to serve;
   6. No line of a secondary supplier constructed prior to March 29, 1973, which on that date is not providing retail service to one or more premises within the limits of the municipality as they exist on that date shall acquire any service rights to provide retail service to any premises located within such municipal limits as they exist on that date.
6. The time at which an electric supplier, based upon the location or proximity of electric suppliers’ lines as in this part provided for, shall be considered as having the right to extend and furnish, or as being restricted from extending and furnishing, service to new premises shall be the time at which written application for temporary construction or permanent service is made to any electric supplier by the consumer utilizing such premises or the time at which construction of such premises is commenced, whichever first occurs. The location of a premises for temporary construction service shall be deemed to be the same as the location of the premises which shall require permanent service after construction. If temporary construction service is required at one site for the purpose of beginning the construction of premises at two or more sites, this subsection shall not preclude an electric supplier, if chosen by the builder and having the right to serve at least one of the premises to be constructed, from furnishing all of such temporary construction service, notwithstanding the fact that one or more other electric suppliers may have and may exercise the exclusive right thereafter to extend and furnish the permanent service to one or more of the premises being constructed.
7. Whenever, after March 29, 1973, any new premises requiring service are so sited as to be located partially within an assigned area, an unassigned area-A, or an unassigned area-B and also partially within any other assigned area, unassigned area-A, or unassigned area-B, such premises may be served by that electric supplier chosen by the consumer utilizing such premises from among the electric suppliers which are eligible under this part to extend and furnish such service within any of such areas.
8. Notwithstanding any other provisions of this part, if a majority of those voters of a municipality which was not rendering electric service on March 29, 1973, approve, by means of referendum vote, the purchase, construction, extension, operation, and maintenance of an electric distribution system by that municipality, such municipality is granted the right of eminent domain to condemn all of the lines and other facilities of the primary supplier within such municipality and any secondary supplier located within the corporate limits of such municipality and used to serve customers therein at retail. This right shall expire, with respect to each such municipality, one year after the date the results of such referendum are declared unless, before that date, such municipality institutes proceedings to acquire such lines and other facilities under any of the statutory methods provided for the condemnation of private property. Upon a final order of condemnation of such lines and other facilities, such municipality shall become the primary supplier therein, the rights of the former primary supplier and any such secondary suppliers under subsection (b) of this Code section shall cease, and the consumers served thereby within such corporate limits shall be thereafter served by the municipality as the new primary supplier. The transfer of service shall be accomplished as nearly as practicable without interruption of service to the consumers. Electric suppliers are authorized to negotiate the sale and purchase of all or any part of any such lines and other facilities, and upon the transfer of title thereto the rights of the selling supplier under subsection (b) of this Code section shall cease.

History. Ga. L. 1973, p. 200, § 9.

Law reviews.

For article, “Administrative Law,” see 53 Mercer L. Rev. 81 (2001).

For annual survey on administrative law, see 61 Mercer L. Rev. 1 (2009).

For article, “The Chevron Two-Step in Georgia’s Administrative Law,” see 46 Ga. L. Rev. 871 (2012).

46-3-9. Limitation on power of electric membership corporations to furnish service within municipalities.

Notwithstanding any other provision of law, no electric membership corporation shall be authorized or empowered to furnish service inside the corporate limits of any municipality except:

1. If it is already furnishing service therein on March 29, 1973, or if its lines become annexed, including annexation that may be caused by the merger, consolidation, or any other combination of a then existing municipality and one or more other geographically defined political subdivisions, if the resulting political subdivision constitutes a municipality as defined in Code Section 46-3-3, or if its lines become included in a wholly new municipality, in any of which events the other relevant Code sections of this part shall apply and prevail;
2. To extend and furnish service initially inside a municipality the population of which at the time of such initial service is 1,500 or less, but not inconsistently with the other Code sections of this part; or
3. Notwithstanding paragraphs (1) and (2) of this Code section, if the municipality and all electric suppliers then furnishing service inside such municipality or furnishing electric service to the municipality at wholesale so consent.

History. Ga. L. 1973, p. 200, § 13; Ga. L. 1982, p. 3, § 46.

46-3-10. Limitation on power of electric suppliers to condemn property of other electric suppliers.

Notwithstanding any other provision of law, no electric supplier shall be authorized or empowered to exercise the power of eminent domain for the purpose of acquiring any property, whether real or personal, of another electric supplier which property is devoted to the public use in furnishing wholesale or retail electric service if such acquisition would destroy or unduly impair or interfere with the operation or use of such property by such other electric supplier.

History. Ga. L. 1973, p. 200, § 14.

46-3-11. Application by electric supplier of discriminatory rates, charges, or service rules or regulations; prohibited acts by electric suppliers generally.

1. Every electric supplier is prohibited from having or applying any rate, charge, or service rule or regulation which unreasonably discriminates against or in favor of (1) any member of a class of consumers as opposed to any other consumer who is or should be in the same class of consumers for such purposes, or (2) any class of its consumers as opposed to another class of consumers for such purposes, provided that this prohibition shall not apply to any rate, charge, or service rule or regulation relating solely to service rendered by a municipality to consumers whose premises are located within its limits as they existed on March 29, 1973.
2. Notwithstanding any other provision of law, every electric supplier is prohibited from, directly or indirectly, by ordinance, law, policy, contract, rate, regulation, or otherwise:
   1. Requiring that a consumer receive retail electric service from such electric supplier as a condition for such consumer to receive from such electric supplier or any other person any goods or other services that are not reasonably related to the furnishing of retail electric service to such consumer’s premises;
   2. Offering a consumer lesser charges or more favorable terms or conditions for retail electric service because of such consumer’s receiving or agreeing to receive from such electric supplier any goods or other services that are not reasonably related to the furnishing of retail electric service to such consumer’s premises;
   3. Imposing higher charges for any goods or other services that are not reasonably related to the furnishing of retail electric service to a consumer’s premises because of such consumer’s failure or refusal to receive retail electric service from that supplier; or
   4. Furnishing retail electric service to any premises which such electric supplier is not entitled to serve under this part.

History. Ga. L. 1973, p. 200, § 10.

46-3-12. Jurisdiction of commission over electric membership corporations.

All electric membership corporations which furnish service in the State of Georgia and all municipalities, whether incorporated by this state or not, which furnish service inside the state shall, in addition to the manner and extent otherwise provided for in this part, be subject to the authority and jurisdiction of the commission in the same manner as electric light and power companies are subject under other laws of the State of Georgia and regulations of the commission pursuant thereto, provided that the rates, charges, and service rules and regulations of electric membership corporations and municipalities shall be filed with the commission and shall be subject to Code Section 46-3-11 but shall not otherwise be fixed by the commission; provided, further, that securities issued by a municipality relating solely to service rendered inside its limits as they existed on March 29, 1973, shall not be subject to regulation by the commission; provided, further, that service rendered by any electric supplier shall be made pursuant to and consistent with its rates, charges, and service rules and regulations then in effect.

History. Ga. L. 1973, p. 200, § 11.

46-3-13. Enforcement of part by commission.

At any time, upon its own complaint or the complaint of any other electric supplier or any other interested party, the commission shall have the authority and jurisdiction, after notice to all affected electric suppliers and other interested parties, and after a hearing, to enforce the provisions of this part by appropriate orders.

History. Ga. L. 1973, p. 200, § 12.

46-3-14. Effect of part on municipal police powers over erection and maintenance of electric wires, poles, and other facilities of electric suppliers in streets, alleys, and public ways.

1. No provision of this part shall restrict the reasonable exercise of the police power of a municipality over the erection and maintenance of poles, wires, and other facilities of electric suppliers in streets, alleys, and public ways.
2. No municipality may, by unreasonably withholding or conditioning right of way easements or franchises, defeat, impair, or interfere with the rights and restrictions applying to electric suppliers therein as provided for in this part. Rather, any secondary supplier within a municipality existing on March 29, 1973, and any electric supplier other than the primary supplier within any geographic area thereafter annexed to such municipality, shall pay the municipality for street franchise rights a sum of money calculated and payable in the same manner and on the same basis as is utilized with respect to the payment, if any, by the primary supplier (other than the municipality itself) for the same or substantially identical rights. In addition, any electric supplier within a wholly new municipality at the time such municipality comes into existence or thereafter which does not serve a majority or plurality of the retail electric meters inside the limits of such municipality shall pay such municipality for street franchise rights a sum of money calculated and payable in the same manner and on the same basis as is utilized with respect to the payment, if any, by the electric supplier (other than the municipality itself) which serves a majority or plurality, whichever is the case, of the retail electric meters inside the limits of such municipality for the same or substantially identical rights.
3. No provision of this part shall abolish the power of any incorporated municipality pursuant to paragraph (7) of Code Section 36-34-2 or any other provision of law to grant street franchises; nor shall any provision of this part abolish the requirement, to the extent existing on March 29, 1973, that any electric supplier must obtain such a franchise in order to use and occupy streets of an incorporated municipality for the purpose of rendering utility services.

History. Ga. L. 1973, p. 200, § 15.

46-3-15. Effect of part on charges of public utilities owned or operated by counties or municipalities.

No provision of this part, and no application thereof, shall be construed in any way to regulate or fix charges of county owned or operated or municipality owned or operated public utilities, as prohibited by Article III, Section VI, Paragraph V(d) of the Constitution of Georgia.

History. Ga. L. 1973, p. 200, § 15A; Ga. L. 1983, p. 3, § 62; Ga. L. 1984, p. 22, § 46.

46-3-30. Short title.

This part shall be known and may be cited as the “High-voltage Safety Act.”

History. Code 1981, § 46-3-30 , enacted by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-30 as present Code Section 46-3-32.

Law reviews.

For annual survey article discussing workers’ compensation law, see 51 Mercer L. Rev. 549 (1999).

For survey article on construction law for the period from June 1, 2002 through May 31, 2003, see 55 Mercer L. Rev. 85 (2003).

46-3-31. Purpose of part.

The purpose of this part is to prevent injury to persons and property and interruptions of utility service resulting from accidental or inadvertent contact with high-voltage electric lines by providing that no work shall be done in the vicinity of such lines unless and until the owner or operator thereof has been notified of such work and has taken one of the safety measures prescribed in this part.

History. Code 1981, § 46-3-31 , enacted by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, effective July 1, 1992, repealed former Code Section 46-3-31, which related to the protection of employees from accidental contact with high voltage lines. The former Code section was based on Ga. L. 1960, p. 181, § 2; and Ga. L. 1981, Ex. Sess., p. 8, Code Enactment Act.

46-3-32. Definitions.

As used in this part, the term:

1. “High-voltage lines” means an electric line or lines installed above ground level having a voltage in excess of 750 volts between conductors or from any conductor to ground.
2. “Notice” means actual notification given to the center.
3. “Person responsible for the work” means the person actually doing the work as well as any person, firm, or corporation who employs and carries on his payroll any person actually doing the work or who employs a subcontractor who actually does the work; provided, however, that this term does not mean one who is exempted under Code Sections 46-3-37 and 46-3-38.
4. “Utilities protection center” or “center” means the corporation or other organization formed by utilities which receives advance notifications regarding work and distributes such notifications to its utility members.
5. “Utility” means any person operating or maintaining high-voltage lines within the state.
6. “Work” means the physical act of performing or preparing to perform any activity under, over, by, or near high-voltage lines, including, but not limited to, the operation, erection, handling, storage, or transportation of any tools, machinery, ladders, antennas, equipment, supplies, materials, or apparatus or the moving of any house or other structure whenever such activity is done by a person or entity in pursuit of his trade or business.

History. Ga. L. 1960, p. 181, § 1; Ga. L. 1974, p. 153, § 1; Code 1981, § 46-3-30 ; Code 1981, § 46-3-32 , as redesignated by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, effective July 1, 1992, repealed former Code Section 46-3-32, which concerned clearance requirements for the operation, handling, etc., of tools, machinery, etc., and the moving of houses, buildings, or other structures over, under, by, or near high-voltage lines and the safeguarding against accidental contact. The former Code section was based on Ga. L. 1960, p. 181, § 3; Ga. L. 1981, Ex. Sess., p. 8, Code Enactment Act; and Ga. L. 1984, p. 22, § 46; and Ga. L. 1992, p. 6, § 46.

46-3-33. Required conditions for commencing work within ten feet of high-voltage line.

No person, firm, or corporation shall commence any work as defined in paragraph (6) of Code Section 46-3-32 if at any time any person or any item specified in paragraph (6) of Code Section 46-3-32 may be brought within ten feet of any high-voltage line unless and until:

1. The person responsible for the work has given the notice required by Code Section 46-3-34; and
2. The owner or operator of such high-voltage line has effectively guarded against danger from accidental contact by either deenergizing and grounding the line, relocating it, or installing protective covering or mechanical barriers, whichever safeguard is deemed by the owner or operator to be feasible under the circumstances.

History. Code 1981, § 46-3-33 , enacted by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-33 as present Code Section 46-3-34.

In light of the similarity of the provisions, decisions under former Code Section 46-33-32 are included in the annotations for this Code section.

Law reviews.

For survey article on construction law, see 59 Mercer L. Rev. 55 (2007).

For survey article on local government law, see 60 Mercer L. Rev. 263 (2008).

46-3-34. [Effective September 1, 2022. See note.] Utilities protection center; funding of activities; notice of work; delay; responsibility for completing safety requirements.

1. All utilities shall organize, participate as members in, and cooperate with the utilities protection center. In lieu of organizing a new center, if the organization defined as the Utilities Protection Center (UPC) in Code Section 25-9-3 undertakes to serve as the utilities protection center referred to in this part, it may do so and no duplicative center shall thereafter be established. The activities of the center relating to high-voltage lines shall be funded by all utilities.
2. Where work is to be done, the person responsible for such work shall give notice to the utilities protection center during its regular business hours at least 72 hours, excluding weekends and holidays, prior to commencing such work and such notice shall:
   1. Describe the tract or parcel of land upon which the work to be done is to take place with sufficient particularity to enable the owner or operator of the high-voltage lines to ascertain the precise tract or parcel of land involved;
   2. State the name, address, and telephone number of the person who will be in charge of the work;
   3. Describe the type of work to be engaged in by the person; and
   4. Designate the date upon which the work will commence and will be completed.
3. After receipt of the notice required by subsection (b) of this Code section, the owner or operator of the high-voltage line shall contact the person whose name is given as required by paragraph (2) of subsection (b) of this Code section within a reasonable time, so that appropriate satisfactory arrangements can be made for the completion of the safety precautions required by Code Section 46-3-33, including coordination of work schedules and payment of costs required to effect such safety precautions. Upon completion of such arrangements, the owner or operator of such high-voltage line shall effect such safety precautions within a reasonable time.
4. If, after such arrangements are made, a delay in commencing the work is encountered, then the person responsible for the work shall be required to give a new notice as specified in subsection (b) of this Code section.
5. The person responsible for the work shall be responsible to assure that the safety requirements of Code Section 46-3-33 are completed prior to the commencement of any such work.

History. Ga. L. 1960, p. 181, § 5; Code 1981, § 46-3-33 ; Code 1981, § 46-3-34 , as redesignated by Ga. L. 1992, p. 2141, § 1; Ga. L. 2001, p. 4, § 46; Ga. L. 2022, p. 325, § 2/HB 1372.

Delayed effective date.

Code Section 46-3-34 is set out twice in this Code. This version, as set out above, is effective September 1, 2022. For version effective until September 1, 2022, see the preceding version.

The 2022 amendment, effective September 1, 2022, substituted “Utilities Protection Center (UPC) in Code Section 25-9-3” for “utilities protection center in paragraph (21) of Code Section 25-9-2” in the second sentence in subsection (a).

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-34 as present Code Section 46-3-35.

46-3-35. Allocation of expense of precautionary measures taken pursuant to public highway construction.

Where, during any public highway construction, any temporary precautionary measure is required by this part to guard against accidental contact with high-voltage lines that are located upon public highways or roads which are owned by this state or a county thereof and which are located outside the corporate limits of any municipality, the expense of such temporary precautionary measure shall be borne by the owner or operator of such lines, provided that such construction is undertaken pursuant to a permit issued by the state or county, for which permit neither the state nor the county received consideration. The person responsible for the work nevertheless shall not commence any work until he has given notice as required by Code Section 46-3-34 and the safety precautions required by Code Section 46-3-33 have been effected.

History. Ga. L. 1960, p. 181, § 5A; Code 1981, § 46-3-34 ; Code 1981, § 46-3-35 , as redesignated by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-35 as present Code Section 46-3-36 [repealed].

46-3-36. [Reserved] Administration and enforcement of part by Commissioner of Labor.

History. Ga. L. 1960, p. 181, § 6; Code 1981, § 46-3-35 ; Code 1981, § 46-3-36 , as redesignated by Ga. L. 1992, p. 2141, § 1; repealed by Ga. L. 1994, p. 1673, § 1, effective April 19, 1994.

Editor’s notes.

Ga. L. 1994, p. 1673, § 1 repealed and reserved this Code section, effective April 19, 1994.

46-3-37. Applicability of part to railway systems, electrical engineering system or other entities.

1. This part shall not be construed as applying to the construction, reconstruction, operation, and maintenance of overhead electrical conductors and their supporting structures and associated equipment by authorized and qualified electrical workers. Specifically, this part shall not be construed as applying to the construction, reconstruction, operation, and maintenance of overhead electrical circuits or conductors and their supporting structures and associated equipment for rail transportation systems or for electrical generating, transmission, and distribution systems or for communication systems, when such work is performed by authorized and qualified employees of any person engaged in such work.
2. When applied to railway systems, the exception provided in this Code section shall be construed as permitting operation of standard rail equipment which is normally used in the transportation of freight or passengers, or both, or in the operation of relief trains or other equipment in emergencies, or in the maintenance of way service, at a distance of less than ten feet from any high-voltage conductor of such railway system; provided, however, that normal repair or construction operations at a distance of less than ten feet from any high-voltage conductor by other than properly qualified and authorized persons or employees under the direct supervision of an authorized person who is familiar with the hazards involved is prohibited, unless there has been compliance with the safety provisions of Code Section 46-3-33.
3. Any telephone company or other entity which has a joint use contract with an electric company is specifically exempted from this part.

History. Ga. L. 1960, p. 181, § 8; Code 1981, § 46-3-36 ; Code 1981, § 46-3-37 , as redesignated by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-37 as present Code Section 46-3-38.

46-3-38. Applicability of part to moving or transportation of houses or buildings.

In addition to the exceptions set forth in Code Section 46-3-37, this part shall not be construed as applying to and shall not apply to the moving or transportation of houses or buildings or parts thereof when such moving is under the jurisdiction of, and is undertaken pursuant to authority granted by, the Department of Public Safety.

History. Ga. L. 1960, p. 181, § 4; Code 1981, § 46-3-37 ; Code 1981, § 46-3-38 , as redesignated by Ga. L. 1992, p. 2141, § 1; Ga. L. 2012, p. 580, § 15/HB 865.

The 2012 amendment, effective July 1, 2012, substituted “Department of Public Safety” for “Georgia Public Service Commission” at the end of this Code section.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-38 as present Code Section 46-3-39.

46-3-39. Restriction on liability of owners and operators of high-voltage lines; effect of part on duty or degree of care.

1. The owner or operator of high-voltage lines shall not be liable for damage or loss to person or property resulting from work within ten feet of high-voltage lines unless notice has been given as required by Code Section 46-3-34 and the owner or operator of the high-voltage line has failed to comply with the provisions of Code Section 46-3-33.
2. Except as provided in subsection (a) of this Code section, nothing in this part shall be construed or applied so as to limit or reduce the duty or degree of care applicable to owners or operators of high-voltage lines with respect to damage or loss to person or property.

History. Ga. L. 1960, p. 181, § 10; Code 1981, § 46-3-38 ; Code 1981, § 46-3-39 , as redesignated by Ga. L. 1992, p. 2141, § 1.

Editor’s notes.

Ga. L. 1992, p. 2141, § 1, redesignated former Code Section 46-3-39 as present Code Section 46-3-40.

46-3-40. Criminal penalty; strict liability for injury or damage; indemnification; liability for cost of delay.

1. Any person responsible for the work who violates any of the provisions of this part shall be guilty of a misdemeanor and, upon conviction thereof, shall be liable for a fine of $1,000.00 for a first offense and $3,000.00 for a second or subsequent offense.
2. Any person responsible for the work who violates the requirements of Code Section 46-3-33 and whose subsequent activities within the vicinity of high-voltage lines result in damage to utility facilities or result in injury or damage to person or property shall be strictly liable for said injury or damage.  Any such person shall also indemnify the owner or operator of such high-voltage lines against all claims, if any, for personal injury, including death, property damage, or service interruptions, including costs incurred in defending any such claims resulting from work in violation of Code Section 46-3-33.
3. In the event the owner or operator of the high-voltage line fails to effect the safeguards required by Code Section 46-3-33 within a reasonable time after notice is given and appropriate arrangements are made pursuant to Code Section 46-3-34, such owner or operator shall be liable for the reasonable costs incurred by any such delay.

History. Ga. L. 1960, p. 181, § 7; Code 1981, § 46-3-39 ; Code 1981, § 46-3-40 , as redesignated by Ga. L. 1992, p. 2141, § 1.

46-3-50. Short title.

This part shall be known and may be cited as “The Georgia Cogeneration and Distributed Generation Act of 2001.”

History. Ga. L. 1979, p. 389, § 1; Ga. L. 2001, p. 1149, § 1.

46-3-51. Legislative determinations and declarations.

1. The legislature finds that it is in the public interest to:
   1. Encourage private investment in renewable energy resources;
   2. Stimulate the economic growth of Georgia; and
   3. Enhance the continued diversification of the energy resources used in Georgia.
2. The General Assembly further finds and declares that a program to provide distributed generation for eligible cogenerators is a way to encourage private investment in renewable energy resources, stimulate in-state economic growth, enhance the continued diversification of this state’s energy resource mix, and reduce interconnection and administrative costs.

History. Code 1981, § 46-3-51 , enacted by Ga. L. 2001, p. 1149, § 1.

Editor’s notes.

Ga. L. 2001, p. 1149, § 1, redesignated former Code Section 46-3-51 as present Code Section 46-3-52.

46-3-52. Jurisdiction of commission over cogeneration facility the energy from which is used solely by operator.

As used in this part, the term:

1. “Bidirectional metering” means measuring the amount of electricity supplied by an electric service provider and the amount fed back to the electric service provider by the customer’s distributed generation facility using the same meter.
2. “Cogeneration facility” means a facility, other than a distributed generation facility, which produces electric energy, steam, or other forms of useful energy (such as heat) which are used for industrial, commercial, heating, or cooling purposes.
3. “Commission” means the Georgia Public Service Commission.
4. “Customer generator” means the owner and operator of a distributed generation facility.
5. “Distributed generation facility” means a facility owned and operated by a customer of the electric service provider for the production of electrical energy that:
   1. Uses a solar Photovoltaic system, fuel cell, or wind turbine;
   2. Has a peak generating capacity of not more than 10kw for a residential application and 100kw for a commercial application;
   3. Is located on the customer’s premises;
   4. Operates in parallel with the electric service provider’s distribution facilities;
   5. Connected to the electric service provider’s distribution system on either side of the electric service provider’s meter; and
   6. Is intended primarily to offset part or all of the customer generator’s requirements for electricity.
6. “Electric membership corporation” means a corporation organized under Article 2 of this chapter.
7. “Electric service provider” means any electric utility, electric membership corporation, or municipal electric utility that is engaged in the business of distributing electricity to retail electric customers in the state.
8. “Electric supplier” means any electric utility, electric membership corporation furnishing wholesale service, any municipal electric utility or any other person which furnishes wholesale service to any municipality, and the Tennessee Valley Authority.
9. “Electric utility” means any retail supplier of electricity whose rates are fixed by the commission.
10. “Municipal electric utility” means a city or town that owns or operates an electric utility.
11. “Person” means a natural person, corporation, trust, partnership, incorporated or unincorporated association, or any other legal entity.
12. “Renewable energy sources” means energy supplied from technologies as approved in the Georgia Green Pricing Accreditation Program.

History. Ga. L. 1979, p. 389, § 3; Code 1981, § 46-3-51 ; Code 1981, § 46-3-52 , as redesignated by Ga. L. 2001, p. 1149, § 1.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 2001, punctuation was modified in paragraph (4); and “10kw” was substituted for “10kW” and “100kw” was substituted for “100kW” in subparagraph (5)(B).

Editor’s notes.

Ga. L. 2001, p. 1149, § 1, redesignated former Code Section 46-3-52 as present Code Section 46-3-53.

46-3-53. Jurisdiction of commission over cogeneration facilities.

1. Any person may operate a cogeneration facility without being subject to the jurisdiction or regulation of the commission if such person uses all of the electric energy, steam, or other form of useful energy produced at such cogeneration facility. The electric energy shall not be sold to any other person except as provided in subsection (b) of this Code section.
2. Any person may operate a cogeneration facility and sell any excess electric energy to an electric supplier without being subject to the jurisdiction or regulation of the commission; provided, however, that nothing in this article shall except a person from compliance with federal law.

History. Ga. L. 1979, p. 389, § 4; Code 1981, § 46-3-52 ; Ga. L. 1981, p. 808, § 1; Code 1981, § 46-3-53 , as redesignated by Ga. L. 2001, p. 1149, § 1; Ga. L. 2002, p. 415, § 46.

The 2002 amendment, effective April 18, 2002, part of an Act to revise, modernize, and correct the Code, substituted “except” for “affect” in subsection (b).

46-3-54. Electric service providers; rates and fees.

An electric service provider:

1. Shall make either bidirectional metering or single directional metering available to customer generators depending on how the distributed generation facility is connected to the distribution system of the electric service provider;
2. Shall enter into a written agreement with the customer generator to charge the customer generator the rate established by the commission, or the appropriate governing body, in the case of any other electric service provider or electric supplier, for metering services;
3. In setting the fees for metering service, the commission, or the appropriate governing body, in the case of any other electric service provider or electric supplier, will include the direct costs associated with interconnecting or administering metering services or distributed generation facilities and will not allocate these costs among the utility’s entire customer base; and
4. In establishing such a fee for metering services, the electric service provider shall not charge the customer generator any standby, capacity, interconnection, or other fee or charge, other than a monthly service charge, unless agreed to by the customer generator or approved by the commission, in the case of an electric utility, or the appropriate governing body, in the case of any other electric service provider or electric supplier.

History. Code 1981, § 46-3-54 , enacted by Ga. L. 2001, p. 1149, § 1.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 2001, “; and” was substituted for a period at the end of paragraph (3).

46-3-55. Measurement and payment of energy flow.

Consistent with the other provisions of this chapter, the energy flow shall be measured and paid for in the following manner:

1. If the distributed generation facilities are connected to the electric service provider’s distribution system on the customer generator’s side of the customer’s meter, the electric service provider shall:
   1. Measure the electricity produced or consumed during the billing period, in accordance with normal metering practices using bidirectional metering;
   2. When the electricity supplied by the electric service provider exceeds the electricity generated by the customer’s distributed generation, the electricity shall be billed by the electric service provider, in accordance with tariffs filed with the commission; or
   3. When electricity generated by the customer’s distributed generation system exceeds the electricity supplied by the electric service provider, the customer generator:
      1. Shall be billed for the appropriate customer charges for that billing period; and
      2. Shall be credited for the excess kilowatt-hours generated during the billing period at an agreed to rate as filed with the commission, with this kilowatt-hour credit appearing on the bill for the billing period; or
2. If the distributed generation facilities are connected to the electric service provider’s distribution system on the electric service provider’s side of the customer’s meter, the electric service provider shall:
   1. Measure the electricity produced or consumed during the billing period, in accordance with normal metering practices using single directional metering;
   2. Charge the customer generator a minimum monthly fee as established in Code Section 46-3-54; and
   3. If there is electricity generated by the customer generator for the billing period, the customer generator shall be compensated at an agreed to rate as filed with the commission.

History. Code 1981, § 46-3-55 , enacted by Ga. L. 2001, p. 1149, § 1.

Code Commission notes.

Pursuant to Code Section 28-9-5, in 2001, “; or” was substituted for a period at the end of division (1)(C)(ii).

46-3-56. Requirement to purchase energy from customer generator; safety standards and regulations.

1. An electric service provider will only be required to purchase energy as specified in Code Section 46-3-55 from an eligible customer generator on a first-come, first-served basis until the cumulative generating capacity of all renewable energy sources equals 0.2 percent of the utility’s annual peak demand in the previous year; provided, however, that no electric service provider will be required to purchase such energy at a price above avoided energy cost unless that amount of energy has been subscribed under any renewable energy program.
2. Once the capacity is subscribed, an electric service provider may purchase energy from an eligible customer generator at a cost of energy as defined for a utility by the commission, in the case of an electric utility, or by the appropriate governing body, in the case of any other electric service provider or electric supplier.
3. A distributed generation facility used by a customer generator shall include, at the customer’s own expense, all equipment necessary to meet applicable safety, power quality, and interconnection requirements established by the National Electrical Code, National Electrical Safety Code, the Institute of Electrical and Electronics Engineers, and Underwriters Laboratories.
4. The commission, in the case of an electric utility, or the appropriate governing body, in the case of other electric service providers or electric suppliers, after appropriate notice and opportunity for comment, may adopt by regulation additional safety, power quality, and interconnection requirements for customer generator that the commission or governing body determines are necessary to protect public safety and system reliability.
5. An electric service provider may not require a customer generator whose distributed generation facility meets the standards in subsections (a) and (b) of this Code section, to comply with additional safety or performance standards, perform or pay for additional tests, or purchase additional liability insurance.
6. No electric service provider or electric supplier shall be liable to any person, directly or indirectly, for loss of property, injury, or death resulting from the interconnection of a cogenerator or distributed generation facility to its electrical system.

History. Code 1981, § 46-3-56 , enacted by Ga. L. 2001, p. 1149, § 1; Ga. L. 2002, p. 415, § 46.

The 2002 amendment, effective April 18, 2002, part of an Act to revise, modernize, and correct the Code, in subsection (a), deleted “to” preceding “0.2 percent” and “that” preceding “has been subscribed” and modified punctuation.

46-3-60. Short title.

This part shall be known and may be cited as the “Solar Power Free-Market Financing Act of 2015.”

History. Code 1981, § 46-3-60 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-61. Findings.

The General Assembly hereby finds and declares that:

1. It is in the public interest to facilitate customers of electric service providers to invest in and install on their property solar technologies of their choice;
2. Free-market financing of solar technologies may provide more customers with opportunities to install solar technology;
3. Solar energy procurement agreements, and other similar financing arrangements, including those in which the payments are based on the performance and output of the solar technology installed on the property of customers of electric service providers, are financing arrangements which may help reduce or eliminate upfront costs involved in solar technology investments and installation by such customers; and
4. Individuals and entities which offer or receive such financing opportunities through solar energy procurement agreements pursuant to this part should not be considered or treated as electric service providers.

History. Code 1981, § 46-3-61 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-62. Definitions.

As used in this part, the term:

1. “Affiliate” means any entity directly or indirectly controlling or controlled by or under direct or indirect common control with an electric service provider.
2. “Capacity limit” means a peak generating capacity in alternating current that is no greater than:
   1. Ten kilowatts, for a residential application; or
   2. One hundred and twenty-five percent of the actual or expected maximum annual peak demand of the premises the solar technology serves, for a commercial application.
3. “Control” means the power to significantly influence the management and policies of any affiliate, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise.
4. “Electric service provider” means any electric supplier that is engaged in the business of distributing electricity to retail electric customers in this state.
5. “Electric supplier” has the same meaning as provided in paragraph (3) of Code Section 46-3-3.
6. “Entity” means any business entity, including, but not limited to, a corporation, partnership, limited liability company, or sole proprietorship.
7. “Maximum annual peak demand” means the maximum single hour electric demand actually occurring or expected to occur at a premises, measured at the premises’ electrical meter.
8. “Person” means any individual or entity.
9. “Premises” has the same meaning as provided in paragraph (6) of Code Section 46-3-3.
10. “Property” means the tract of land on which a premises is located, together with all adjacent contiguous tracts of land utilized by the same retail electric customer.
11. “Retail electric customer” means a person who purchases electric service from an electric service provider for such person’s use and not for the purpose of resale.
12. “Solar energy procurement agreement” means any agreement, lease, or other arrangement under which a solar financing agent finances the installation, operation, or both of solar technology in which the payments are based on the performance and output of the solar technology installed on the property.
13. “Solar financing agent” means any person, including an electric service provider and an affiliate, whose business includes the leasing, financing, or installation of solar technology.
14. “Solar technology” means a system that:
    1. Generates electric energy that is fueled solely by ambient sunlight;
    2. Is installed upon property owned or occupied by a retail electric customer; and
    3. Is connected to the electric service provider’s distribution system on either side of the electric service provider’s meter.

History. Code 1981, § 46-3-62 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-63. Financing of solar technology; electric service provider prohibited from interfering with use of solar technology; electric service provider not liable for certain acts.

1. Solar technology at or below the capacity limit may be financed by a retail electric customer through a solar financing agent utilizing a solar energy procurement agreement, provided that:
   1. Such solar technology and the installation thereof complies with all applicable state laws and all applicable county and municipal ordinances and permitting requirements; and
   2. The retail electric customer or the solar financing agent gives notice to the electric service provider serving the premises at least 30 days prior to operation of such solar technology.
2. No electric service provider shall prevent or otherwise interfere with the installation, operation, or financing of solar technology by a retail electric customer through a solar financing agent pursuant to subsection (a) of this Code section, except that an electric service provider may require the retail electric customer to meet applicable safety, power quality, and interconnection requirements as provided in Code Section 46-3-64.
3. An electric service provider not acting as a solar financing agent at the specific property where the liability arises shall not be liable for any loss of assets, injury, or death that may arise from, be caused by, or relate to:
   1. The act, or failure to act, of the retail electric customer or the solar financing agent relating to the solar technology;
   2. The solar energy procurement agreement or any other agreement between the retail electric customer and the solar financing agent; or
   3. The solar technology.
4. A solar financing agent which is not an electric service provider or affiliate may provide solar energy procurement agreements authorized by this part, notwithstanding the restrictions of Part 1 of this article.
5. A property with multiple premises may have multiple solar technologies financed by solar energy procurement agreements; provided, however, that a single solar technology is not connected to multiple premises and that the cumulative capacity of solar technologies connected to a premises shall not exceed the capacity limit. Solar technology installed to serve one premises shall only generate electric energy that is used on and by such premises or fed back to an electric service provider.

History. Code 1981, § 46-3-63 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-64. Requirements upon a retail electric customer utilizing solar technology connected to an electric system of an electric service provider.

1. For solar technology with a peak generating capacity of not more than 10 kilowatts for a residential application and not more than 100 kilowatts for a commercial application, the electric service provider may require the retail electric customer or solar financing agent to provide, at the retail electric customer’s or solar financing agent’s expense, all equipment necessary to meet applicable safety, power quality, and interconnection requirements established by the National Electrical Code, National Electrical Safety Code, Institute of Electrical and Electronics Engineers, and Underwriters Laboratories, prior to interconnecting the solar technology to the electric service provider’s electric system. If such applicable safety, power quality, and interconnection requirements are met, an electric service provider shall not require compliance with additional safety or performance standards, require the performance of or payment for additional tests, or require the purchase of additional liability insurance.
2. For solar technology with a peak generating capacity of more than 10 kilowatts for a residential application and more than 100 kilowatts for a commercial application, the electric service provider may require compliance with additional requirements beyond those specified in subsection (a) of this Code section. Such additional requirements shall include only those necessary to protect public safety, power quality, and system reliability.

History. Code 1981, § 46-3-64 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-65. Clarification of who shall be considered an electric supplier and an electric service provider.

1. Provided that the solar technology does not exceed the capacity limit, the leasing, financing, or installation of such solar technology through a solar energy procurement agreement shall not be considered the provision of electric service to the public, retail electric service, or retail supply of electricity by the solar financing agent, and neither the retail electric customer nor the solar financing agent shall be considered an electric supplier within the meaning of Part 1 of this article or in violation of exclusive electric service rights arising therein.
2. Notwithstanding any other provision of law, a solar financing agent’s actions under this part shall not cause the solar financing agent to be considered an electric service provider for any purpose under this title.
3. Any electric service provider or affiliate shall be authorized to become a solar financing agent; provided, however, that the restrictions of Part 1 of this article shall apply to any such electric service provider’s provision of solar technology. An electric service provider and an affiliate shall be subject to subsection (a) of Code Section 46-3-11 in providing services as a solar financing agent.

History. Code 1981, § 46-3-65 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-66. Construction and applicability.

1. Except as provided in subsection (d) of Code Section 46-3-63 and subsections (a) and (b) of Code Section 46-3-65, nothing in this part shall be construed as modifying the restrictions of Part 1 of this article on the sale, offer for sale, or distribution of retail electric service in this state.
2. Nothing in this part shall be construed to create or alter rights in real property or to change any restrictions or regulations on the use of real property that may exist under any means, including, but not limited to, a covenant, contract, ordinance, or state or federal law.
3. Nothing in this part shall be construed to restrict, affect, or diminish the ability of any county or municipality to adopt or enforce ordinances, permits, or regulations, or otherwise to exercise any lawful power under the Constitution or laws of this state, including, without limitation, those affecting zoning, land use, or the use of public rights of way.
4. Nothing in this part shall be applied to impair any obligation or right under a contract entered into prior to the effective date of this part or any amendment to or extension of such contract.
5. Nothing in this part shall be applied to any party to a wholesale electric power or transmission service contract entered into prior to the effective date of this part or to any original party to such contract that is subsequently amended or extended to the extent that the financing and installation of the solar technology would cause such party to be in breach of such contract or increase the costs of such contract by $100,000.00 or more. Any legal successor to substantially all rights and assets of a party shall also be considered a party under this subsection.

History. Code 1981, § 46-3-66 , enacted by Ga. L. 2015, p. 1438, § 1/HB 57.

46-3-70. [Reserved]

History. Repealed by Ga. L. 1981, p. 1587, § 6, effective July 1, 1981.

Editor’s notes.

Ga. L. 2016, p. 864, § 46/HB 737, effective May 3, 2016, part of an Act to revise, modernize, and correct the Code, designated Code Section 46-3-70 as reserved.

46-3-71 through 46-3-97. [Repealed]

History. Repealed by Ga. L. 1981, p. 1587, § 6, effective July 1, 1981.

46-3-110. Declaration of necessity.

Whereas certain political subdivisions of this state now own and operate electric distribution systems to serve their citizens, inhabitants, and customers by providing them electricity for all purposes; and whereas, if such political subdivisions are to furnish, and if the members of the public in the areas they serve are to receive, adequate service, such political subdivisions must have adequate, dependable, and economical sources and supplies of bulk electric power; it is declared that there exists in this state a need for an authority to function without profit in developing and promoting for the public good in this state adequate, dependable, and economical sources and supplies of bulk electric power and energy for the purposes expressed in this Code section.

History. Ga. L. 1975, p. 107, § 1.

46-3-111. Definitions.

As used in this article, the term:

1. “Authority” means the Municipal Electric Authority of Georgia and any successor thereto. Any change in name or composition of the authority shall in no way affect the vested rights of any person under this article or impair the obligations of any contracts existing under this article.
2. “Bond anticipation notes” or “notes” means short-term obligations issued after validation of bonds and in anticipation of the issuance of the bonds as validated.
3. “Bonds” or “revenue bonds” means any bonds issued by the authority under this article, including refunding bonds.
4. “Cost of project” or “cost of construction” means all costs of construction; all costs of real and personal property required for the purposes of such project and facilities related thereto, including land and any rights or undivided interests therein, easements, franchises, water rights, fees, permits, approvals, licenses, and certificates, and the securing of such permits, approvals, licenses, and certificates and the preparation of applications therefor, and including all machinery and equipment, including equipment for use in connection with such construction, and the initial fuel supply acquired for such project; financing charges; interest prior to and during construction and during such additional period as the authority may reasonably determine to be necessary for the placing of such project in operation; costs of engineering, architectural, and legal services; costs of plans and specifications and all expenses necessary or incidental to determining the feasibility or practicability of the project; administrative expenses; and such other expenses as may be necessary or incidental to the financing authorized by this article. All funds paid or advanced for any of the purposes mentioned in this paragraph by political subdivisions contracting with the authority prior to the issuance of any of the authority’s bonds or notes may be refunded to such political subdivisions out of the proceeds of any bonds or notes so issued. The costs of any project may also include a fund or funds for the creation of a debt service reserve, a renewal and replacement reserve, a fuel reserve, and such other reserves as may be reasonably required by the authority for the operation of its projects and as may be authorized by any bond resolution or trust agreement or indenture pursuant to the provisions of which the issuance of any such bonds may be authorized. Any obligation or expense incurred for any of the purposes mentioned in this paragraph shall be regarded as a part of the cost of the project and may be paid or reimbursed as such out of the proceeds of revenue bonds or notes issued under this article for such project.
5. “Election committee” means the Municipal Electric Authority of Georgia Membership Election Committee, as created in Code Section 46-3-113.
6. “Project,” “undertaking,” or “facility” means electric generation and transmission lines and works and all property, whether real or personal, of every kind and nature material or pertinent thereto or necessary therefor which may be used or useful in the development of electric power and energy and in the supplying of such electric power and energy to all those entities contracting with the authority therefor. These terms may include a divided or undivided interest in any electric generation or transmission facility in which the authority participates as an owner in common with others. These terms may be used interchangeably.

History. Ga. L. 1975, p. 107, § 5.

46-3-112. Creation of authority; status of authority as instrumentality of state; location of principal office and legal situs or residence of authority.

There is created a public body corporate and politic to be known as the Municipal Electric Authority of Georgia, which shall be a public corporation of the State of Georgia and shall have a perpetual existence. This authority, however, shall not be a state institution nor a department or agency of the state but shall be an instrumentality of the state, a mere creature of the state, having distinct corporate entity and being exempt from Article 2 of Chapter 17 of Title 50. The authority shall have its principal office in Fulton County, and its legal situs or residence for the purpose of this article shall be Fulton County.

History. Ga. L. 1975, p. 107, § 2; Ga. L. 1975, p. 1200, § 1.

46-3-113. Number of members of authority; creation of Municipal Electric Committee of Georgia Membership Election Committee; designation of members; selection of officers; receiving of nominations, election and terms of first members of authority.

1. The authority shall consist of nine members. The first nine members shall be elected as provided in this Code section.
2. On or before June 16, 1975, each of those political subdivisions which have, prior to such date, by proper resolution of their respective governing bodies, declared their intention to contract with the authority for the purchase of electric power and energy (other than for short-term purchases) shall designate one person, who shall be a resident of such political subdivision, as its representative on a body to be known as the Municipal Electric Authority of Georgia Membership Election Committee, provided that at least five political subdivisions have declared their intention to contract with the authority. All such resolutions of declaration of intention to contract with the authority shall be presented to the election committee at its first meeting, which shall be held in the office of the Georgia Municipal Association at 11:00 A.M. on Monday, June 22, 1975.
3. At its first meeting, the election committee shall organize and shall elect a chairman and such other officers as may be desirable in the determination of the election committee. The election committee shall then determine the sufficiency of the resolutions presented to it and shall determine the number of votes (including fractions thereof) which each representative to the election committee shall be entitled to cast in accordance with Code Section 46-3-117. Nominations for membership on the authority shall then be received by the election committee prior to adjournment of its first meeting.
4. The election committee shall then meet for the second time on Monday, June 29, 1975, at the same time and place to receive any other nominations to the authority that may be made. A vote shall then be taken; and the nine nominees receiving the largest number of votes cast by a quorum of the election committee, as such quorum is determined by subsection (c) of Code Section 46-3-117, shall be declared the first nine members of the authority. Insofar as may be consistent with the remaining provisions of this Code section, in the election of the first nine members, the three nominees receiving the highest number of votes shall be elected to terms of three years; the three nominees receiving the next highest number of votes shall be elected to terms of two years; and the three nominees receiving the next highest number of votes shall be elected to terms of one year. Any tie votes shall be resolved by lot in such manner as shall be prescribed by the election committee.
5. Notwithstanding any other provision of this Code section to the contrary, in the event it should be mathematically necessary in the election of the members of the authority for two members to be residents of the same political subdivision, then one of the two members who are residents of the same political subdivision shall be elected for an initial term of one year. In the event there are four political subdivisions from which two residents must be elected, one of the residents of one of such political subdivisions shall be elected for an initial term of two years.

History. Ga. L. 1975, p. 107, § 4.

46-3-114. Residency requirements for authority members; ineligibility of election committee representatives for membership; eligibility of members to succeed themselves.

Each member of the authority shall be a resident of one of the political subdivisions represented on the election committee, but, insofar as is mathematically possible, no two members shall reside in the same political subdivision. Representatives to the election committee shall not be eligible for membership on the authority. Members shall be eligible to succeed themselves.

History. Ga. L. 1975, p. 107, § 4.

46-3-115. Terms of authority members generally; time of meeting of election committee prior to annual meeting of authority.

Upon the expiration of the terms of the first members of the authority, members shall be elected for three-year terms, provided that in the year in which a member’s term is to expire, the term shall not expire until the adjournment of the annual meeting for that year and until a successor is elected. The election committee shall meet at a date not more than 30 days prior to each annual meeting of the authority and shall elect members to fill the terms which will expire at the conclusion of such annual meeting.

History. Ga. L. 1975, p. 107, § 4.

Cross references.

Annual meeting of authority, § 46-3-121 .

46-3-116. Selection of additional representatives to election committee by political subdivisions subsequently contracting with authority.

1. Each political subdivision contracting with the authority (other than for short-term purchases) following the election of the first nine members of the authority shall designate a representative to the election committee no more than 30 days following the execution of such contract by and between the authority and such political subdivision. The term of such additional representative shall begin with the next meeting of the election committee.
2. Representatives to the election committee shall serve at the pleasure of the governing body of the political subdivision which appointed them.

History. Ga. L. 1975, p. 107, § 4.

46-3-117. Manner of distribution of votes among representatives to election committee; quorum of election committee.

1. In elections held by the election committee to elect members to the authority, each political subdivision entitled to representation on the election committee shall have and shall be entitled to have its representative on the election committee cast one whole vote plus an additional vote or votes (including fractions thereof) to be determined as provided in this subsection. The percentage which is arrived at by dividing the number of kilowatt hours taken from Georgia Power Company by each such political subdivision during the immediately preceding calendar year by the total number of kilowatt hours taken from Georgia Power Company by all such political subdivisions during the immediately preceding calendar year shall be determined; and each such percentage shall then be applied to a total number of votes equal to the total number of political subdivisions entitled to representation on the election committee. The resulting figure, calculated to the nearest one-thousandth, shall be the additional vote or votes (including fractions thereof) to which each respective political subdivision is entitled.
2. At such time as facilities of the authority are placed in commercial operation as determined by the authority and energy is being supplied by the authority to political subdivisions contracting with the authority, then and thereafter each such political subdivision entitled to representation on the election committee shall have and shall be entitled to have its representative on the election committee cast one whole vote plus an additional vote or votes (including fractions thereof) to be determined as provided in this subsection. The percentage which is arrived at by dividing the number of kilowatt hours taken from the authority by each such political subdivision during the immediately preceding calendar year by the total number of kilowatt hours taken from the authority by all such political subdivisions during the immediately preceding calendar year shall be determined; and each such percentage shall then be applied to a total number of votes equal to the total number of political subdivisions entitled to representation on the election committee. The resulting figure, calculated to the nearest one-thousandth, shall be the additional vote or votes (including fractions thereof) to which each respective political subdivision is entitled by reason of energy taken. Notwithstanding any other provision of this subsection, at the meeting of the election committee in the calendar year immediately following the calendar year in which such facilities are first placed in commercial operation, as determined by the authority, and energy is being supplied by the authority to such political subdivisions, the period of time upon which the determination shall be made of the additional vote or votes (including fractions thereof) to which the representatives of the election committee shall be entitled at such meeting shall be the remainder of the calendar year in which energy was first supplied to such political subdivisions, provided that such facilities have been in commercial operation, as determined by the authority, and energy has been supplied for a minimum of six months in the immediately preceding calendar year. If such facilities of the authority have not been in commercial operation, as determined by the authority, and if energy has not been supplied for a minimum of six months in the immediately preceding calendar year, such additional vote or votes (including fractions thereof) shall be determined by the number of kilowatt hours taken from Georgia Power Company in accordance with subsection (a) of this Code section.
3. The presence at any meeting of the election committee of representatives entitled to cast two-thirds of the total votes to which the election committee shall be entitled shall constitute a quorum of the election committee.

History. Ga. L. 1975, p. 107, § 4; Ga. L. 1982, p. 3, § 46.

46-3-118. Vacancies on authority.

Any vacancy in the membership of the authority shall be filled by a new member who shall be elected by the remaining members of the authority and who shall serve until the next meeting of the election committee. At the first meeting of the election committee following the filling of such vacancy, the election committee shall elect a member to fill the remainder, if any, of the unexpired term for which such vacancy was filled. Upon such election by the election committee, the membership on the authority of the member previously elected by the remaining members of the authority to fill such vacancy shall terminate.

History. Ga. L. 1975, p. 107, § 4.

46-3-119. Officers of authority.

The authority shall elect from its membership a chairman, a vice-chairman, a secretary-treasurer, and an assistant secretary-treasurer. Such officers shall serve for such terms as shall be prescribed by resolution of the authority or until their successors are elected and qualified.

History. Ga. L. 1975, p. 107, § 4.

46-3-120. Quorum of authority; action by majority vote; adjournment of meetings at which less than a majority is present.

At all meetings of the authority, the presence in person of a majority of the members in office shall be necessary for the transaction of business, and the affirmative vote of a majority of the members then in office shall be necessary for any action of the authority. No vacancy in the membership of the authority shall impair the right of such majority to exercise all the rights and perform all the duties of the authority. If at any meeting there is less than a majority present, a majority of those present may adjourn the meeting to a fixed time and place, and notice of such time and place shall be given in accordance with subsection (c) of Code Section 46-3-121, provided that if the time element of subsection (c) of Code Section 46-3-121 cannot reasonably be complied with, such notice, if any, of such adjourned meeting shall be given as is reasonably practical.

History. Ga. L. 1975, p. 107, § 4.

46-3-121. Annual meeting of authority; special meetings; notice of meetings; waiver of notice; regular meetings other than annual meeting.

1. The annual meeting of the authority shall be held on the anniversary date of the first meeting of the authority unless the date, time, and place of such annual meeting shall otherwise be fixed by resolution of the authority, provided that any such date so fixed shall be in reasonable proximity to the anniversary date of such first meeting.
2. Special meetings of the authority may be called by resolution of the authority, by the chairman or vice-chairman, or upon the written request of at least three members of the authority.
3. Written notice of all meetings shall be delivered to each political subdivision contracting with the authority other than for short-term purchases, and to each member of the authority not less than ten days prior to the date of such meeting in the case of regular meetings and not less than three days in the case of special meetings.
4. Notice of a meeting of the authority need not be given to any member who signs a waiver of notice either before or after the meeting. Attendance of a member at a meeting shall constitute a waiver of notice of such meeting and a waiver of any and all objections to the place or time of the meeting or to the manner in which it has been called or convened, except when a member states at the beginning of the meeting any such objection or objections to the transaction of business. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the authority need be specified in the notice or waiver of notice of such meetings.
5. In addition to the annual meeting of the authority, regular meetings of the authority may be established by resolution of the authority; and no notice, other than notice of the adoption of such resolution to any member of the authority who was absent when it was adopted, shall be required for such meeting, except for the notice required by subsection (c) of this Code section.

History. Ga. L. 1975, p. 107, § 4; Ga. L. 1982, p. 3, § 46.

Editor’s notes.

The first meeting of the authority, as referred to in subsection (a) of this Code section, was held on July 7, 1975.

46-3-122. Reimbursement of members for expenses; making of rules and regulations by authority; employment of staff and personnel; designation of assistant secretary-treasurer.

The members of the authority shall not be entitled to compensation for their services but may be reimbursed by the authority for their actual expenses properly incurred in the performance of their duties. The authority shall make rules and regulations for its own government and may retain, employ, and engage all necessary staff and personnel, including professional and technical supervisors, assistants, and experts and other agents and employees, whether temporary or permanent, as it may require. Any one or more of such persons so engaged may be designated as an additional assistant secretary-treasurer of the authority and may be given the duties of keeping the books, records, and minutes of the authority, of giving all notices required by Code Sections 46-3-120, 46-3-121, and 46-3-123, and, in the absence of or in lieu of the secretary-treasurer, performing all other functions of the secretary-treasurer. Officers designated by the authority pursuant to this Code section shall serve at the pleasure of the authority.

History. Ga. L. 1975, p. 107, § 4.

46-3-123. Removal of authority members from office.

The election committee shall have the power to remove from office any member of the authority for cause after written notice and public hearing.

History. Ga. L. 1975, p. 107, § 4.

46-3-124. Books and records generally.

The authority shall keep suitable books and records of all its obligations, contracts, transactions, and undertakings; of all income and receipts of every nature; and of all expenditures of every kind.

History. Ga. L. 1975, p. 107, § 4.

46-3-125. Purpose of authority.

The purpose of the authority shall be to acquire or construct, or to acquire and construct, and to operate and maintain, or to cause to be constructed, operated, and maintained, electric generation and transmission facilities. In addition, it shall be the purpose of the authority to take all other necessary or desirable action in order to provide or make available an adequate, dependable, and economical supply of electric power and energy and related services to those political subdivisions of this state identified in Code Section 46-3-130 which may desire the same and, incidentally and so as to take advantage of economies of scale in the generation and transmission of electric power and energy, to other persons and entities.

History. Ga. L. 1975, p. 107, § 3.

46-3-126. Powers of authority generally.

The authority shall have all powers necessary or convenient to carry out and effectuate the purpose and provisions of this article including, but without limiting the generality of the foregoing, the power:

1. To sue and be sued in contract and in tort and to complain and defend in all courts;
2. To adopt and alter a corporate seal;
3. To acquire in its own name real property or rights and easements therein and franchises and personal property necessary or convenient for its corporate purposes, by purchase, on such terms and conditions and in such manner as it may deem proper, or by the exercise of the power of eminent domain in accordance with any and all existing laws of the State of Georgia applicable to the condemnation of property for public use, including the power to proceed as a condemning body under Article 2 of Chapter 2 of Title 22 or by gift, grant, lease, or otherwise; to insure the same against any and all risks as such insurance may, from time to time, be available; and to use such property, rent or lease the same to or from others, make contracts with respect to the use thereof, or sell, lease, or otherwise dispose of any such property in any manner it deems to the best advantage of the authority and the purposes thereof. The power to acquire, use, and dispose of property provided in this paragraph shall include the power to acquire, use, and dispose of any interest in such property, whether divided or undivided, which acquisition may result in the ownership of such property or any part thereof in common with any other party, whether public or private. Title to any such property of the authority, however, shall be held by the authority exclusively for the benefit of the public. The authority shall be under no obligation to accept and pay for any property condemned under this article except from the funds provided under the authority of this article and, in any proceedings to condemn, such orders may be made by the court having jurisdiction of the action as may be just to the authority and to the owners of the property to be condemned. If the authority shall deem it expedient to construct any project on lands which are subject to the control of the state or of any political subdivision or public corporation of the state, the Governor, in the case of lands controlled by the state, or the governing authorities of such political subdivisions or such public corporations are authorized to convey such lands to the authority for such consideration, not exceeding reasonable value, as may be agreed upon by the authority, as grantee, and by the Governor or by the governing body of such political subdivision or by such public corporation, as grantor, taking into consideration the public benefit to be derived from such conveyance;
4. To appoint and select officers, agents, and employees, including engineering, architectural, and construction experts, fiscal agents, and attorneys, and to fix their compensation;
5. To acquire, by purchase or otherwise, in whole or in part, as provided in paragraph (3) of this Code section, and to place into operation and operate or cause to be placed into operation and operated, either as owner of all or of any part in common with others or as agent, electric generation and transmission lines, works, facilities, and projects; to provide, by sale or otherwise, an adequate, dependable, and economical electric power supply to political subdivisions of this state contracting with the authority pursuant to authority of Code Section 46-3-130; and, through such political subdivisions, to supply such electric power to the members of the public in the areas served by them; and, as agent for such political subdivisions, to secure power supply contracts and arrangements with other persons. The authority shall also have the power, which may be exercised either as principal or as agent, to manufacture, generate, store, and transmit electric current for light, heat, power, and energy; to manufacture, buy, sell, import, export, lease, or otherwise acquire and generally deal in electrical apparatuses of all kinds and machinery and devices and nuclear or fossil fuels for the manufacture, generation, storage, and transmission of electric current for light, heat, power, and energy; to purchase power at retail or wholesale from any other person; to purchase or construct part of the capacity of generation or transmission projects sponsored and owned by or in common with others, making any such purchase at wholesale or retail within or without this state; to contract for the purchase of power and energy from, or the sale of power and energy to, the United States government and electric utility systems either privately or publicly owned, within or without this state; to execute long- or short-term power purchase or sale contracts on terms which may include agreements with respect to resale rates and the disposition of revenues; to interchange, exchange, and purchase power and energy from any person; to erect, buy, lease, or otherwise acquire, operate, and maintain electric lighting, heating, and power projects; to transmit power both for itself and on behalf of others; to erect, buy, sell, lease, or otherwise acquire, maintain, and operate or cause to be maintained and operated plants, underground subways, conduits, poles, and wires above, upon, and under the streets, alleys, lands, and territories of political subdivisions, public or private corporations, or individuals; and to continue to sell electric power to political subdivisions of this state which are authorized to contract with the authority pursuant to Code Section 46-3-130 and to other persons and entities and, as agent for any or all of the same, to make power and energy otherwise available to them through arrangements with other persons, all in the exercise of the powers of the authority and to effectuate the purposes of this article;
6. To contract with the state and its agencies, instrumentalities, and departments, with those political subdivisions of the state which are authorized to contract with the authority pursuant to Code Section 46-3-130 and with private persons and corporations. This power includes the making of contracts for the construction of projects, which contracts for construction may be made either as sole owner of the project or as owner, in common with other public or private persons, of any divided or undivided interest therein;
7. To exercise any one or more of the powers, rights, and privileges conferred by this Code section either alone or jointly or in common with one or more other parties or utilities, whether public or private. In any such exercise of such powers, rights, and privileges jointly or in common with others with respect to the construction, operation, and maintenance of electric generation or transmission facilities, the authority may own an undivided interest in such facilities with any other parties, whether public or private. The authority may enter into agreements with respect to any such electric generation or transmission facility with the other parties participating therein, and any such agreement may contain such terms, conditions, and provisions consistent with this article as the parties thereto shall deem to be in their best interests. Any such agreement may include, but need not be limited to, provisions for the construction, operation, and maintenance of such electric generation or transmission facility by any one or more of the parties to such agreement, which party or parties shall be designated in or pursuant to such agreement as agent or agents on behalf of itself and one or more of the other parties thereto, or by such other means as may be determined by the parties thereto. Such an agreement may also include provisions for methods of determining and allocating among or between the parties the costs of construction, operation, maintenance, renewals, replacements, improvements, and disposals with respect to such facility. In carrying out its functions and activities as such agent with respect to the construction, operation, and maintenance of such a facility, such agent shall be governed by the laws and regulations applicable to such agent as a separate legal entity and not by any laws or regulations which may be applicable to any of the other participating parties. Notwithstanding any other law to the contrary, pursuant to the terms of any such agreement the authority may delegate its powers and duties with respect to the construction, operation, and maintenance of such facility to the party acting as agent; and all actions taken by such agent in accordance with the provisions of such agreement may be made binding upon the authority without further action or approval by the authority;
8. To accept, receive, and administer gifts, grants, appropriations, and donations of money, materials, and property of any kind, including loans and grants from the United States government or the State of Georgia or any agency, department, authority, or instrumentality of either, upon such terms and conditions as the United States government, the State of Georgia, or such agency, department, authority, or instrumentality shall impose; to administer trusts; and to sell, lease, transfer, convey, appropriate, and pledge any and all of its property and assets;
9. To invest any accumulation of its funds and any sinking fund or reserves in any manner that public funds of this state or its political subdivisions may be invested, and to purchase its own bonds and notes;
10. To do any and all things necessary or proper for the accomplishment of the objectives of this article and to exercise any power usually possessed by private corporations performing similar functions which is not in conflict with the Constitution and laws of this state, including:
    1. Employment of professional and administrative staff and personnel and retaining of legal, engineering, and other professional services;
    2. The purchasing of all kinds of insurance, including, without limitation, insurance against tort liability and against risks of damage to property;
    3. The borrowing of money for any of the corporate purposes of the authority, provided that obligations of the authority other than revenue bonds for which provision is made in this article shall be payable from the general funds of the authority and shall not be a charge against any special fund allocated to the payment of revenue bonds;
    4. The power to indemnify and hold harmless any parties contracting with the authority or its agents from damage to persons or property; and
    5. The power to act as self-insurer with respect to any loss or liability;
11. To issue its revenue bonds as provided in this article in evidence of its indebtedness incurred with respect to the powers described in this Code section, such bonds to be payable from the revenues, receipts, and earnings of the projects of the authority and other available funds thereof; to execute trust agreements or indentures; to sell, convey, pledge, and assign any and all of its funds, assets, property, and income as security for the payment of such revenue bonds; and to provide for the payment of the same and for the rights of the owners thereof.

History. Ga. L. 1975, p. 107, § 7.

46-3-127. Policy as to nonprofit operation of projects by authority; fixing of rates, fees, and charges by authority.

The authority shall not operate or construct any project for profit except insofar as any such profit will inure to the benefit of the public. The authority shall fix the rates, fees, and charges consistent with this declaration of policy such as will produce revenues only in amounts sufficient, together with all other funds of the authority, to pay principal and interest on bonds and obligations of the authority, to provide for maintenance and operation of the authority and of its projects, and to maintain such reserves as shall have been created in amounts sufficient in the judgment of the authority for the security of the bonds and for the improvement, replacement, or expansion of the facilities or services of the authority or to provide fuel for its generating projects.

History. Ga. L. 1975, p. 107, § 12.

46-3-128. Declaration of authority property as public property; payments by authority in lieu of taxes; tax exemption for authority property, income, obligations, and debt interest.

1. It is found, determined, and declared that the creation of the authority and the carrying out of its corporate purposes are in all respects for the benefit of the people of this state and that the authority is an institution of purely public charity performing an essential governmental function.
2. 1. The property of the authority is declared, and shall in all respects be considered, to be public property. Title to the authority’s property shall be held by the authority only for the benefit of the public; and the use of such property pursuant to this article shall be and is declared to be for essential public and governmental purposes, that is, for the promotion of public general welfare in the matter of providing an adequate, dependable, and economical electric power supply in an effort to better the general condition of society in this state, which promotion is declared to be a public beneficence for the good of humanity and for the general improvement and happiness of society.
   2. 1. It is recognized, however, that removal from local tax digests of the value of all property owned by the authority might impose an unfair burden on many taxpayers whose property is taxable. In the interest of weighing these benefits and concerns and arriving at an equitable policy regarding treatment of authority property, the General Assembly finds and declares that equity requires that the exemption presently applicable to the authority’s property should remain in effect. However, the General Assembly also finds and declares that in the future the authority should rightfully make payments in lieu of taxes so that the authority may fulfill its good and public purposes without incidental harm to the state’s local governments.
      2. With respect to tangible property owned by the authority and included in its project one and project two, as those projects are constituted as of March 25, 1980, or thereafter under the authority’s power revenue bond resolution and general power revenue bond resolution, and supplemental resolutions thereto, the authority shall begin making payments in lieu of taxes in such manner and amounts as provided in this Code section in the earlier of (i) the first year after all of the bonds issued by the authority to finance each such respective project have been fully redeemed or (ii) the year 2020.
      3. With respect to tangible property acquired or constructed by the authority after March 25, 1980, and not included in its project one or project two, the authority shall begin making payments in lieu of taxes, in such manner and amounts as provided in this Code section, in the year 1981 or such later year as the authority first acquires or constructs such property.
      4. In each year in which the authority is required by this Code section to make payments in lieu of taxes, it shall file a return within the same time and in the same form and manner as public utilities. The taxing authorities shall assess the tangible property of the authority which is made subject by this Code section to payments in lieu of taxes in accordance with the law and procedures applicable to public utilities and shall apply to such assessments in each year in which any such payments are due the appropriate millage levies of the state and of the political subdivisions in which such property is located in order to arrive at the amounts of the respective payments in lieu of taxes. The authority shall be notified of the amounts of the payments in lieu of taxes due and shall pay such amounts to the state and respective political subdivisions within the time in which payments of taxes by public utilities are allowed or required.
3. Except as specifically provided in this Code section for payments in lieu of taxes, all property of the authority, all income, obligations, and interest on the bonds and notes of the authority and all transfers of such property, bonds, or notes shall be and are declared to be exempt from taxation by the state or any of its political subdivisions.

History. Ga. L. 1975, p. 107, § 6; Ga. L. 1980, p. 1128, § 1; Ga. L. 2014, p. 866, § 46/SB 340.

The 2014 amendment, effective April 29, 2014, part of an Act to revise, modernize, and correct the Code, deleted the extra subsection (b) designation preceding subparagraph (2)(A).

46-3-129. Contracts between authority and political subdivisions for use of projects and facilities of authority.

1. The authority may contract with any political subdivision of this state which is authorized by Code Section 46-3-130 to make such contracts for the payment of such rates, tolls, fees, and charges as may be prescribed by the authority for the use by such subdivisions or the residents thereof of the services and facilities of the projects and facilities of the authority. Any such political subdivision shall have the right and power, by resolution of its governing body, to make such a contract; and the amounts contracted to be paid by such political subdivision to the authority under such a contract shall constitute general obligations of such political subdivision for the payment of which the full faith and credit of such political subdivision may be pledged to provide the funds required to fulfill all obligations arising under any such contract.
2. Any such political subdivision which enters into such a contract pursuant to this article shall, annually in each and every fiscal year during the term of such contract, include in a general revenue or appropriation measure, whether or not any other items are included, sums sufficient to satisfy the payments required to be made in each year by such contract until all payments required under such contract have been paid in full.
3. If for any reason a provision or appropriation pursuant to subsection (b) of this Code section is not made, then the fiscal officers of such political subdivision are authorized and directed to set up as an appropriation on their accounts in each fiscal year the amounts required to pay the obligations called for under any such contract. The amount of an appropriation made under this subsection in each fiscal year shall be due and payable and shall be expended for the purpose of paying and meeting the obligations provided under the terms and conditions of such contract; and such appropriation shall have the same legal status as if the contracting political subdivision had included the amount of the appropriation in its general revenue or appropriation measure. Such fiscal officers shall make such payment to the authority if for any reason such appropriation is not otherwise made.
4. Any political subdivision which contracts with the authority under this article may obligate itself and its successors to use only those projects for which it has contracted and none other.

History. Ga. L. 1975, p. 107, § 17.

46-3-130. Eligibility of political subdivisions to contract with authority.

The political subdivisions with which the authority shall be authorized to contract to provide an electric power supply pursuant to this article shall be those political subdivisions of this state which, on March 18, 1975, owned and operated an electric distribution system.

History. Ga. L. 1975, p. 107, § 27.

46-3-131. Issuance of revenue bonds and bond anticipation notes in general.

1. When the authority desires to issue revenue bonds as permitted by this article, the authority shall, prior to the adoption of a resolution authorizing the issuance of such bonds, enter into one or more contracts with no less than five political subdivisions which are authorized to contract with the authority in accordance with Code Section 46-3-130. All such contracts shall be in accordance with Code Section 46-3-129.
2. The acquisition, construction, reconstruction, improvement, equipment, alteration, repair, or extension of any project, and the issuance, in anticipation of the collection of the revenues from such project, of bonds to provide funds to pay the cost thereof, may be authorized under this article by resolution of the authority. Unless otherwise provided therein, such resolution shall take effect immediately and need not be laid over or published or posted. The authority, in determining such cost, may include all costs and estimated costs of the issuance of the bonds; all engineering, inspection, fiscal, and legal expenses; the interest which it is estimated will accrue during the construction period and during such additional period as the authority may reasonably determine to be necessary for the placing of such project in operation on money borrowed, or which it is estimated will be borrowed pursuant to this article; and all costs included in the definition of “cost of project” as defined in Code Section 46-3-111. Such bonds may also be issued to pay off, refund, or refinance any outstanding bonds or other obligation of any nature owed by the authority, whether or not such bonds or other obligations shall then be subject to redemption; and the authority may provide for such arrangements as it may determine for the payment and security of the bonds being issued or for the payment and security of the bonds or other obligations to be paid off, refunded, or refinanced.
3. Revenue bonds may be issued under this article in one or more series; may bear such date or dates; may mature at such time or times, not exceeding 50 years from their respective dates; may bear interest at such rate or rates, payable at such time or times; may be payable in such medium of payment at such place or places; may be in such denomination or denominations; may be in such form, either coupon or fully registered without coupons; may be issued in any specific amounts; may carry such registration, conversion, and exchangeability privileges; may be declared or become due before the maturity date thereof; may provide such call or redemption privileges; may have such rank or priority; and may contain such other terms, covenants, assignments, and conditions as the bond resolution authorizing the issuance of such bonds or any indenture or trust agreement may provide. The authority may sell such bonds in such manner, at such price or prices, and upon such terms and conditions as shall be determined by the authority.
4. The bonds shall be signed by the chairman of the authority; the corporate seal of the authority shall be impressed, imprinted, or otherwise reproduced on the bonds; and the bonds shall be attested by the signature of the secretary-treasurer of the authority. The coupons shall be signed in such manner as may be directed by the authority. The signatures of the officers of the authority and the seal of the authority upon any bond, note, or other debt security issued by the authority may be by facsimile if the instrument is authenticated or countersigned by a trustee other than the authority itself or an officer or employee of the authority. All bonds or notes issued under authority of this article bearing signatures or facsimiles of the signatures of officers of the authority in office on the date of the signing thereof shall be valid and binding, notwithstanding that before the delivery thereof and payment therefor such officers whose signatures appear thereon shall have ceased to be officers of the authority. Pending the preparation of the definitive bonds, interim receipts, in such form and with such provisions as the authority may determine, may be issued to the purchasers of bonds to be issued under this article.
5. Any bond resolution authorizing the issuance of bonds and any indenture or trust agreement entered into under this article to finance in whole or in part the acquisition, construction, reconstruction, improvement, equipment, alteration, repair, or extension of any project may contain covenants as to:
   1. The rates, fees, tolls, or charges to be charged for the services, facilities, and commodities of the project;
   2. The use and disposition of the revenue to be derived from the project;
   3. The creation and maintenance of reserves or sinking funds and the regulation, use, and disposition thereof, including debt service reserve; renewal and replacement or other capital improvement reserve, including reserves for the provision of fuel; and such other reserves as may be reasonably required by the authority for the operation of its projects and as may be authorized by the bond resolution or trust agreement or indenture pursuant to which the issuance of such bonds may be authorized;
   4. The purposes to which the proceeds of the sale of said bonds may be applied, and the use and disposition of such proceeds;
   5. Events of default and the rights and liabilities arising thereupon, the terms and conditions upon which bonds issued under this article shall become or may be declared due before maturity, and the terms and conditions upon which such declaration and its consequences may be waived;
   6. The issuance of other additional bonds or instruments payable from or a charge against the revenue of such project;
   7. The insurance to be carried thereon and the use and disposition of insurance proceeds;
   8. Books of account and the inspection and audit thereof;
   9. Limitations or restrictions on the power to lease or otherwise dispose of the project while any of the bonds or interest thereon remains outstanding and unpaid; and
   10. The operation and maintenance of the project and of the authority.
6. The provisions of this article and of any bond resolution, indenture, or trust agreement entered into pursuant to this article shall be a contract with every holder of the bonds; and the duties of the authority under this article and under any such bond resolution, indenture, or trust agreement shall be enforceable by any bondholder by mandamus or other appropriate action or proceeding at law or in equity.
7. The authority shall give notice to the district attorney of the Atlanta Judicial Circuit of its intention to issue its revenue bonds, setting forth the fact of service of such notice, the principal amount of bonds to be issued, the purpose for which the same are to be issued, whether the bonds are to be issued in separate series or installments from time to time, the interest rate or rates which such bonds are to bear, the amount of principal to be paid in each year during the life of the bonds or the method or formula by which such amounts shall be determined, the date by which all bonds are to be paid in full, and the security to be pledged to the payment of the bonds; provided, however, that such notice, in the discretion of the authority, in lieu of specifying the rate or rates of interest which the bonds are to bear, may state that the bonds when issued will bear interest at a rate not exceeding a maximum per annum rate of interest specified in the notice, or, in the event the bonds, or any series or installment thereof, are to bear different rates of interest for different maturity dates, may state that none of such rates will exceed the maximum rate specified in the notice; provided, further, that nothing in this subsection shall be construed as prohibiting or restricting the right of the authority to sell the bonds at a discount, even if in so doing the effective interest cost resulting therefrom would exceed the maximum per annum interest rate specified in the notice to the district attorney. Such notice shall be signed by the chairman, vice-chairman, or secretary-treasurer.
8. Within 20 days after the date of service of the required notice, the district attorney shall prepare and file in the office of the clerk of the Superior Court of Fulton County a complaint directed to the Superior Court of Fulton County in the name of the state and against the authority, setting forth the fact of service of such notice, the amount of the bonds to be issued, for what purpose they are to be issued, whether the bonds are to be issued in separate series or installments from time to time, the interest rate or rates they are to bear or the maximum rate or rates of interest, the amount of principal and interest to be paid annually or the method or formula by which the amount of such payments shall be determined, and the date by which all bonds are to be paid in full. In addition, the district attorney shall obtain from the judge of the court an order requiring the authority by its proper officers to appear at such time and place as the judge may direct, either during a session of court or in chambers, within 20 days after the filing of the complaint, and show cause, if any, why the bonds should not be confirmed and validated. Such complaint and order shall be served upon the authority in the manner provided by law; and to such complaint the authority shall make sworn answer at or before the date set in the order for the hearing.
9. Prior to the hearing of the cause, the clerk of the Superior Court of Fulton County shall publish in the official organ of Fulton County once during each of the two weeks immediately preceding the week in which the hearing is to be held a notice to the public that, on the day specified in the order providing for the hearing of the cause, the same will be heard.
10. Within the time prescribed in the order or at such other time as he may fix, the judge of the superior court shall proceed to hear and determine all questions of law and of fact in the cause, including the question of whether the contractual obligations which are made a condition precedent to the issuance of such bonds by subsection (a) of this Code section have been properly incurred; and the judge shall render judgment on the cause. Any citizen of this state may become a party to the proceedings at or before the time set for the hearing. Any party who is dissatisfied with the judgment of the court confirming and validating the issuance of the bonds and the security therefor or refusing to confirm and validate the issuance of the bonds and the security therefor may appeal from the judgment under the procedure provided by Article 2 of Chapter 6 of Title 5. No appeal may be taken by any person who was not a party at the time the judgment appealed from was rendered.
11. In the event no appeal is filed within 30 days after the date of the judgment of validation, or, if an appeal is filed, in the event the judgment is affirmed on appeal, the judgment of the superior court so confirming and validating the issuance of the bonds and the security therefor shall be forever conclusive upon the validity of the bonds and the security therefor.
12. Bonds issued under this article shall bear a certificate of validation signed with the facsimile or manually executed signature of the clerk of the Superior Court of Fulton County stating the date on which the bonds were validated as provided in this Code section; and such entry shall be original evidence of the fact of judgment and shall be received as original evidence in any court in this state.
13. The authority shall reimburse the district attorney for his actual costs of the case, if any. For every $5,000.00 in principal amount of bonds or portion thereof, there shall be payable to the clerk of the Superior Court of Fulton County the following fees for validation and confirmation:

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14. Any other law to the contrary notwithstanding, this article shall govern all civil claims, proceedings, and actions respecting debt of the authority evidenced by revenue bonds.

First $500,000.00 $1.00 $501,000.00 — $2,500,000.00 .25 All over $2,500,000.00 .10

History. Ga. L. 1975, p. 107, § 8; Ga. L. 1985, p. 149, § 46.

Cross references.

Revenue bonds generally, § 36-82-60 et seq.

Repeal of interest rate limitations, § 36-82-123 .

Code Commission notes.

Pursuant to § 28-9-5 , in 1985, “bondholder” was substituted for “bond holder” in subsection (f).

Pursuant to § 28-9-5 , in 1987, “Atlanta Judicial Circuit” was substituted for “Atlanta judicial circuit” in the first sentence of subsection (g).

46-3-132. Validation of contracts for payments pledged as security for bonds.

1. When payments which are made by political subdivisions pursuant to contracts entered into under subsection (a) of Code Section 46-3-131 are pledged as security for the payment of bonds sought to be validated, the petition for validation shall make party defendant the authority and shall also make parties defendant to such action every political subdivision which has contracted with the authority for the use of the facilities, commodities, and services of the project for which bonds shall be sought to be validated and issued. In addition, every other party, whether public or private, contracting with the authority in any manner with relation to the operation of such project, and particularly with relation to any common ownership of such project or to the supplying of electric energy to the authority or the taking or purchasing of electric energy from the project, shall be made parties defendant.
2. All such parties defendant shall be served and shall be required to show cause, if any exists, why such contracts and the terms and conditions thereof should not be inquired into by the court and the validity of the terms thereof determined and the matters and conditions imposed on the parties to such contracts and all such undertakings thereof adjudicated to be valid and binding on the parties thereto.
3. Notice of such proceedings shall be included in the notice of validation hearing required by Code Section 46-3-131 to be issued and published by the clerk of the Superior Court of Fulton County. In addition to such notice required to be published in Fulton County, such notice shall also be published in the newspaper in which sheriff’s advertisements are published, once a week during each of the two weeks immediately preceding the week of the hearing, in each county in which any portion of any of the defendant political subdivisions lie.
4. Any citizen resident of this state may, at or before the time set for the validation hearing, intervene in the validation proceedings conducted in the Superior Court of Fulton County pursuant to Code Section 46-3-131 and may assert any ground or objection to the validity and binding effect of such contract on his own behalf and on behalf of any political subdivision and of all citizens, residents, and property owners of the state.
5. No appeal may be taken by any person who was not a party at the time the judgment appealed from was rendered.
6. An adjudication as to the validity of any such contract which adjudication is unexcepted to within 30 days after the date of the judgment of validation or, if an appeal is filed, which adjudication is confirmed on appeal shall be forever conclusive and binding upon such political subdivisions and the resident citizens and property owners of this state.

History. Ga. L. 1975, p. 107, § 9.

Cross references.

Class actions, § 9-11-23 .

Intervention, § 9-11-24 .

46-3-133. Failure of district attorney to pursue judicial validation of bonds.

In all cases where the authority has adopted a resolution for the issuance of revenue bonds, and where notice has been duly served upon the district attorney for the purpose of securing a judicial validation of such bonds and the security therefor, and where, in such case, there has been a failure on the part of such district attorney or other officer to proceed within the time prescribed by this article, it shall be competent for the authority to represent such facts in writing to the court and to represent further that such failure has been without fault on the part of the authority. In such case, the Superior Court of Fulton County shall have power and authority to inquire into the facts; and, upon being satisfied that such failure has not arisen from any fault or neglect on the part of the authority, it shall be the duty of the court to pass an order directing such district attorney to proceed within ten days to file a complaint as authorized by this article. Thereafter, the proceedings shall be held in the same manner as would have been followed had such petition been duly and promptly filed in the first instance.

History. Ga. L. 1975, p. 107, § 10.

46-3-134. Bonds as legal investments; depositing bonds with public officers and bodies of state.

The bonds authorized by this article shall be securities in which:

1. All public officers and bodies of this state;
2. All political subdivisions of this state;
3. All insurance companies and associations, and other persons carrying on an insurance business;
4. All banks, bankers, trust companies, saving banks, and savings associations, including savings and loan associations, building and loan associations, investment companies, and other persons carrying on a banking business;
5. All administrators, guardians, executors, trustees, and other fiduciaries; and
6. All other persons whatsoever who are authorized to invest in bonds or other obligations of the state

   may properly and legally invest funds, including capital in their control or belonging to them. Such bonds shall also be securities which may be deposited with and shall be received by all public officers and bodies of this state and its political subdivisions for any purpose for which deposit of the bonds or other obligations of this state is authorized.

History. Ga. L. 1975, p. 107, § 16.

46-3-135. Pledge of authority’s revenues and earnings to payment of principal of and interest on bonds; setting aside of pledged revenues and earnings into sinking funds.

1. All or any part of the gross or net revenues and earnings derived from any particular project and any and all revenues and earnings received by the authority, regardless of whether such revenues and earnings were produced by a particular project for which bonds have been issued, may be pledged by the authority to the payment of the principal of and interest on revenue bonds of the authority as may be provided in any resolution authorizing the issuance of such bonds or in any trust instrument pertaining to such bonds.
2. Such funds so pledged, from whatever source received, may include funds received from one or more or all sources and may be set aside at regular intervals into sinking funds for which provision may be made in any such resolution or trust instrument, which sinking funds may be pledged to and charged with the payment of:
   1. The interest upon such revenue bonds as such interest shall become due;
   2. The principal of the bonds as the same shall mature;
   3. The necessary charges of any trustee, paying agent, or registrar for such bonds; and
   4. Any premium upon bonds retired upon call or purchase.
3. The use and disposition of any sinking fund may be subject to regulations for which provision may be made in the resolution authorizing the issuance of the bonds or in the trust instrument or indenture securing the payment of the same.

History. Ga. L. 1975, p. 107, § 19.

46-3-136. Securing of bonds by trust agreement or indenture.

1. In the discretion of the authority, any issue of revenue bonds may be secured by a trust agreement or indenture made by the authority with a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without this state. Such trust agreement or indenture may pledge or assign all revenue, receipts, and earnings to be received by the authority and any proceeds which may be derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon.
2. The resolution providing for the issuance of revenue bonds and such trust agreement or indenture may contain provisions for protecting and enforcing the rights and remedies of the bond owners, including the right of appointment of a receiver upon default in the payment of any principal or interest obligation and the right of any receiver or trustee to enforce collection of any rates, fees, tolls, charges, or revenues for the use of the services or facilities of the project necessary to pay all costs of operation and all reserves provided for, the principal of and interest on all bonds in the issue, all costs of collection, and all other costs reasonably necessary to accomplish the collection of such sums in the event of any default of the authority.
3. Such resolution, trust agreement, or indenture may include covenants setting forth the duties of the authority regarding the acquisition of property for and the construction of the project and regarding the custody, safeguarding, and application of all funds of the authority, including any proceeds derived from the disposition of any real or personal property of the authority or proceeds of insurance carried thereon. In addition, such resolution, trust agreement, or indenture may include covenants providing for the operation, maintenance, repair, and insurance of the project and may contain provisions concerning the conditions, if any, upon which additional bonds may be issued.
4. Such resolution, trust agreement, or indenture may set forth the rights and remedies of the bond owners and of the trustee; may restrict the individual right of action of any bond owner in such manner as is customary in securing bonds and debentures of corporations; and may contain such other provisions as the authority may deem reasonable and proper for the security of the bond owners.
5. All expenses incurred in carrying out any trust agreement or indenture under this Code section may be treated as a part of the cost of maintenance, operation, and repair of the project affected by such trust agreement or indenture.

History. Ga. L. 1975, p. 107, § 20; Ga. L. 1992, p. 6, § 46.

46-3-137. Application of bond proceeds to cost of projects; issuance of additional bonds to remedy deficit in proceeds from bond issue; application of surplus proceeds.

1. Proceeds of the bonds issued under authority of this article shall be used solely for the payment of the cost of projects and shall be disbursed upon requisition or order of such person and under such restrictions as the resolution authorizing the issuance of such bonds or the trust agreement or indenture may provide.
2. If the proceeds of such bonds, including all series or installments of such issue, by error of calculation or otherwise, are less than the cost of projects, then, unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement or indenture, additional bonds may in like manner be issued, subject to the requirements of subsection (a) of Code Section 46-3-131 to provide the amount of such deficit. Unless otherwise provided in the resolution authorizing the issuance of the bonds or in the trust agreement or indenture, such additional bonds shall be deemed to be of the same issue and shall be entitled to payment from the same fund, without preference or priority, as the bonds first issued for the same purpose.
3. If the proceeds of the bonds of any issue exceed the amount required for the purpose for which such bonds are issued, the surplus shall be paid into the fund provided for the payment of principal and interest of such bonds.
4. In the discretion of the authority, revenue bonds of a single issue or series or installment of such issue may be issued for the purpose of paying the cost of any one or more projects.

History. Ga. L. 1975, p. 107, § 21.

46-3-138. Mutilated, lost, stolen, or destroyed bonds and coupons.

1. If any bond becomes mutilated or is lost, stolen, or destroyed, the authority may execute and deliver a new bond of like date of issue, maturity date, principal amount, and interest rate per annum as the bond so mutilated, lost, stolen, or destroyed, which new bond shall have attached thereto coupons corresponding in all respects to those, if any, on the bond mutilated, lost, stolen, or destroyed, provided that:
   1. In the case of any mutilated bond, such bond together with all unmatured coupons appertaining thereto is first surrendered to the authority;
   2. In the case of any lost, stolen, or destroyed bond, there is first furnished evidence of such loss, theft, or destruction satisfactory to the authority, together with indemnity satisfactory to the authority;
   3. All other reasonable requirements of the authority are complied with; and
   4. Expenses in connection with such transaction are paid.
2. In the event any coupon is mutilated, lost, stolen, or destroyed, the authority may issue a duplicate coupon upon the same terms and conditions as those provided for the replacement of mutilated, lost, stolen, or destroyed bonds.
3. Any bonds or coupon surrendered for exchange shall be canceled.
4. The authority shall be authorized to print the new bond with the validation certificate bearing the facsimile signature of the clerk of the superior court then in office, and such certificate shall have the same force and effect as in the first instance. All responsibility with respect to the issuance of any such new bonds shall be with the authority and not with such clerk; and such clerk shall have no liability in the event an overissuance occurs.

History. Ga. L. 1975, p. 107, § 11.

46-3-139. Interest on bonds.

Interest shall cease to accrue on any bond on the date that such bond becomes due for payment if said payment is made or duly provided for, but liability for such bond and for the accrued interest thereon shall continue until such bond is 20 years overdue for payment. At that time, unless demand for payment has been made, such obligation shall be extinguished and shall be deemed no longer outstanding.

History. Ga. L. 1975, p. 107, § 11.

46-3-140. Cancellation of evidences of indebtedness and interest coupons.

Unless otherwise directed by the authority, every evidence of indebtedness and interest coupon paid or otherwise retired shall forthwith be marked “canceled” and shall be delivered by the paying agent making payment thereof to the authority, whereupon the evidence of indebtedness or interest coupon shall be destroyed and a certificate of destruction shall be filed in the records of the authority.

History. Ga. L. 1975, p. 107, § 11.

46-3-141. Records of evidences of indebtedness issued.

The fiscal officer of the authority or his agent shall maintain records containing a full and correct description of each evidence of indebtedness issued, identifying it and showing its date, issue, amount, interest rate, payment dates, payments made, registration, cancellation, destruction, and every other relevant transaction.

History. Ga. L. 1975, p. 107, § 11.

46-3-142. Paying agents for bonds.

The authority may appoint one or more paying agents for each issue or series or installment of bonds. Every such paying agent shall be an incorporated bank or trust company authorized by the laws of the United States or of the state in which it is located to do a banking or trust business. The authority may make such provisions respecting paying agents as it deems necessary or useful and may enter into a contract with any paying agents containing such terms, including its compensation, and such conditions in regard to the paying agents as the authority deems necessary or useful.

History. Ga. L. 1975, p. 107, § 11.

46-3-143. Bond anticipation notes.

1. The authority shall have the power and is authorized, whenever revenue bonds of the authority have been validated as provided in Code Section 46-3-131, to issue from time to time its negotiable notes in anticipation of the issuance of such bonds as validated and to renew from time to time any such notes by the issuance of new notes, regardless of whether the notes to be renewed have matured. The authority may issue notes only to provide funds which would otherwise be provided by the issuance of the bonds as validated. The notes may be authorized, sold, executed, and delivered in the same manner as bonds.
2. Any resolution authorizing notes of the authority or any issue thereof may contain any provisions which the authority is authorized to include in any resolution authorizing bonds of the authority or any issue thereof; and the authority may include in any notes any terms, covenants, or conditions which it is authorized to include in any bonds.
3. All notes shall be general obligations of the authority, payable out of any of its funds or revenues, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding, provided that there may be specially pledged to the payment of such notes the proceeds to be derived from the issuance of the validated bonds in anticipation of the issuance of which the notes have been issued.
4. Validation of such bonds shall be a condition precedent to the issuance of such notes but it shall not be required that such notes be judicially validated.
5. Bond anticipation notes shall not be issued in an amount exceeding the par value of the bonds in anticipation of which they are to be issued.

History. Ga. L. 1975, p. 107, § 22; Ga. L. 1982, p. 3, § 46.

46-3-144. Negotiability of bonds, notes, and other evidences of debt.

Notwithstanding any other law to the contrary, every evidence of indebtedness issued under this article shall have all the rights and incidences of negotiable instruments, subject to provisions for registration.

History. Ga. L. 1975, p. 107, § 15.

46-3-145. Liability of members of authority on bonds and notes; obligations of state and political subdivisions in regard to issued bonds or notes; requirement as to recital on face of bonds and notes.

1. Neither the members of the authority nor any person executing bonds or notes on behalf of the authority shall be personally liable thereon by reason of the issuance thereof.
2. Neither the revenue bonds or notes issued under this chapter nor the instruments evidencing the obligations which constitute the security therefor shall constitute a debt of, a loan by, or a pledge of the faith and credit of the State of Georgia or of any political subdivision thereof. Rather, such bonds and notes shall be payable from the revenues of the authority as provided in the resolutions, trust agreements, or indentures authorizing or securing the issuance and payment of such bonds or notes. The issuance of such bonds or notes shall not obligate the state or any political subdivision thereof to levy or pledge any form of taxation whatever for the payment thereof. No owner of any such bond or note, and no receiver or trustee in connection therewith, shall have the right to enforce the payment of the bond or note against any property of the state or of any political subdivision thereof; nor shall any such bond or note constitute a charge, lien, or encumbrance, whether legal or equitable, upon any such property.
3. All such bonds and notes shall contain on their face a recital setting forth the complete immunity of the state and any such political subdivisions from liability thereon, which recital shall contain substantially the foregoing provisions of this Code section.

History. Ga. L. 1975, p. 107, § 13; Ga. L. 1982, p. 3, § 46.

46-3-146. Preservation of interests and rights of owners of bonds and notes.

While any of the bonds or notes issued by the authority remain outstanding, the powers, duties, or existence of the authority or of its officers, employees, or agents shall not be diminished, impaired, or affected in any manner which will affect adversely the interest and rights of the owners of such bonds or notes; and no other authority, instrumentality, or body will be created or empowered to compete with the authority so as to affect adversely the interests and rights of the owners of such bonds or notes; nor will the state itself so compete with the authority. This article shall be for the benefit of the state, the authority, and every owner of the authority’s bonds and notes and, upon and after the issuance of bonds or notes under this article, shall constitute an irrevocable contract by the state with the owners of such bonds and notes.

History. Ga. L. 1975, p. 107, § 30.

46-3-147. Appointment of receiver for authority for default on bonds; duties of receiver; termination of receivership; jurisdiction of court over receiver.

1. If the authority defaults on the payment of the principal or interest on any of the revenue bonds after the same become due, whether at maturity or upon call for redemption, and such default continues for a period of 30 days, or if the authority or its officers, agents, or employees fail or refuse to comply with the essential provisions of this article or default in any material respect on any agreement made with the holders of the revenue bonds, any holders of revenue bonds or a trustee therefor shall have the right to apply in an appropriate judicial proceeding to the Superior Court of Fulton County for the appointment of a receiver of the undertaking, regardless of whether all revenue bonds have been declared due and payable, and regardless of whether such holder or trustee therefor is seeking or has sought to enforce any other right or exercise any remedy in connection with such revenue bonds. Upon such application, the court, if it deems such action necessary for the protection of the bondholders, may appoint a receiver for the undertaking, provided that such appointment shall be mandatory if the application is made by the holders of 25 percent in principal amount of such revenue bonds then outstanding, or by any trustee for holders of such revenue bonds in such principal amount.
2. A receiver appointed pursuant to subsection (a) of this Code section shall forthwith, directly or by his agents and attorneys, enter into and upon and take possession of the project or of such portion thereof or interest therein as is owned by the authority. If the court so directs, the receiver may wholly exclude from the project the authority, its officers, agents, and employees, and all persons claiming under them. Upon taking possession of the project, the receiver shall have, hold, use, operate, manage, and control the same and each and every part thereof and, in the name of the authority or otherwise, as the receiver may deem best, shall exercise all the rights and powers of the authority with respect to the undertaking as the authority itself might do. The receiver shall maintain, restore, insure, and keep insured the project or such portion or interest therein as is owned by the authority; from time to time shall make all such necessary or proper repairs as the receiver may deem expedient; shall establish and maintain rates and collect such fees, tolls, and other charges in connection with the project as the receiver may deem necessary or proper and reasonable; and shall collect and receive all revenues, shall deposit the same in a separate account, and shall apply such revenues so collected and received in such manner as the court shall direct, provided that the duties of the receiver as described in this subsection shall be performed in a manner consistent with any and all existing contractual arrangements to which the authority may be a party; and the powers of the receiver shall be no greater than the powers of the authority.
3. Whenever all amounts due upon the revenue bonds and interest thereon have been cured and made good; and whenever a similar cure and making good has been effected in regard to any other notes, bonds, or other obligations, and interest thereon, which constitute a charge, lien, or encumbrance on the revenues of the project under any of the terms of any covenants or agreements with holders of revenue bonds; then, if it appears to the court that no default is imminent, the court shall direct the receiver to surrender possession of the project to the authority, provided that the same right of the holders of the revenue bonds to secure the appointment of a receiver as is provided in subsection (a) of this Code section shall exist upon any subsequent default.
4. A receiver shall, in the performance of the powers conferred upon him by this Code section, act under the direction and supervision of the court making such appointment, shall at all times be subject to the orders and decrees of such court, and may be removed thereby. Nothing contained in this Code section shall limit or restrict the jurisdiction of such court to enter such other and further orders and decrees as the court may deem necessary or appropriate for the exercise by the receiver of any functions specifically set forth in this Code section.

History. Ga. L. 1975, p. 107, § 14; Ga. L. 1982, p. 3, § 46.

46-3-148. Fixing, revising, and collecting fees, tolls, and charges for use of projects; application of revenues; time of payment; indemnity by political subdivisions; enforcement; assignment of payments; issuing resolutions governing disposition of revenues.

1. For the purpose of earning sufficient revenue to make possible the financing of the construction of the projects of the authority with revenue bonds, the authority is authorized and empowered to fix and revise rates and collect fees, tolls, and charges on each project which it causes to be acquired or constructed. Such rates, fees, tolls, and charges to be paid for the use of the facilities or services of such projects shall be so fixed and adjusted from time to time as to provide a fund which, together with other revenue, if any, of such projects or of the authority, will be sufficient:
   1. To pay:
      1. The costs of operating, maintaining, and repairing the projects, including reserves for insurance and extraordinary repairs, reserves for fuel, and other reserves required by the resolution, trust agreement, or indenture pertaining to such bonds and the issuance thereof, unless such costs shall be otherwise provided for;
      2. The costs of operating and conducting the business of the authority, including salaries; fees for professional services, including legal, engineering, and others; and all expenses properly relating to the conduct of the affairs of the authority;
      3. The costs of power, whether generated by the authority or acquired from others; and
      4. All other costs associated with the operation of the authority and its projects and facilities;
   2. To pay the principal of and interest on such revenue bonds as the same become due, including all premiums, if any, the proceeds of which shall have been or will be used to pay the cost of such projects, which cost shall include all elements of cost authorized by this article, including acquisition of property, whether real or personal, and any interest in property; clearing and preparing land for the purposes of this article; architectural, engineering, financial, and legal services; construction of projects authorized by this article; administrative expenses; funds for initiating the operation of the project; and interest prior to and during construction and during such period of time thereafter as may be reasonably determined by the authority to be necessary to put the project into operation;
   3. To comply with any sinking fund requirements contained in the resolution, trust agreement, or indenture pertaining to the issuance of and security for such bonds;
   4. To perform fully all provisions of such resolution, trust agreement, or indenture relating to the issuance of or security for such bonds to the payment of which such revenue is pledged;
   5. To accumulate any excess income which may be required by the purchasers of such bonds or may be dictated by the requirements of such resolution, trust agreement, or indenture or by the requirements of achieving ready marketability of and low interest rates on such bonds; and
   6. To pay expenses in connection with such bond issue or such projects, including, but not limited to, trustees’ and fiscal fees.
2. The rates, fees, tolls, and charges authorized by subsection (a) of this Code section shall be payable at such intervals as may be agreed upon and set forth in the contract providing therefor. Any such contract may provide for the commencement of payments, not necessarily based directly on rates, to the authority prior to the completion of the undertaking by the authority of any such project; may provide for the making of payments during such times as such projects may be partially or wholly not in use, whether or not any such project has been completed, is then operable, or is operating; and may provide that such payments shall not be subject to any reduction, by offset or otherwise, and shall not be conditioned upon the performance or nonperformance by any party of any agreement.
3. Such contract may obligate the political subdivision to indemnify and save harmless the authority from any and all damage to persons and property occurring on or by reason of the project, and may also obligate the political subdivision to undertake, at the expense of the political subdivision, the defense of any action brought against the authority by reason of injury or damages to persons or property occurring on or by reason of the project.
4. In the event of any failure or refusal on the part of the political subdivision to perform punctually any covenant or obligation contained in any such contract, the authority may enforce performance by any legal or equitable process, including specific performance.
5. Any payments due or to become due to the authority pursuant to any such contract may be assigned by the authority to a trustee or paying agent as may be required by the terms of the resolution, trust agreement, or indenture relating to the issuance of and security for such bonds.
6. The use and disposition of the authority’s revenue shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of the trust agreement or indenture, if any, securing the same.

History. Ga. L. 1975, p. 107, § 18; Ga. L. 1982, p. 3, § 46.

46-3-149. Status of authority’s funds received from revenue bonds, fees, tolls, charges, gifts, grants, or other contributions as trust funds; lien of bond owners on funds.

All funds received pursuant to authority of this article, whether as proceeds from the sale of revenue bonds or as revenues, fees, tolls, charges, or other earnings or as gifts, grants, or other contributions, shall be deemed to be trust funds to be held and applied solely as provided in this article. The bond owners entitled to receive the benefits of such funds shall have a lien on all such funds until applied as provided in any such resolution, trust agreement, or indenture of the authority.

History. Ga. L. 1975, p. 107, § 23.

46-3-150. Audits of authority and of funds established in connection with its debt.

The authority, together with all funds established in connection with its debt, shall be audited no less frequently than annually by an independent certified public accountant to be selected by the authority. Copies of such audit shall be available upon request to interested parties, including, but without limitation, the holders of the authority’s bonds and all parties contracting with the authority.

History. Ga. L. 1975, p. 107, § 11.

46-3-151. Venue of actions.

Any action to protect or enforce any rights under this article brought in the courts of this state shall be brought in the Superior Court of Fulton County. Any action pertaining to validation of the bonds issued under this article and pertaining to validation of the contracts constituting security for bonds shall also be brought in the Superior Court of Fulton County. That court shall have exclusive original jurisdiction of any action referred to in this Code section, provided that any action on any contractual obligation brought against the authority by any political subdivision contracting with the authority may be brought either in the county containing all or the largest part of the area of the political subdivision involved or in Fulton County, at the option of the party bringing the action.

History. Ga. L. 1975, p. 107, § 24.

46-3-152. Jurisdiction of commission over rates, services, and practices of authority.

The rates, services, and practices relating to the generation, transmission, and sale by the authority of power to be generated from the projects authorized by this article shall not be subject to the provisions of the Georgia Public Service Commission law nor to regulation by nor jurisdiction of the commission.

History. Ga. L. 1975, p. 107, § 26.

46-3-153. Applicability of other laws to meetings and records of authority.

Meetings of the authority shall be subject to Chapter 14 of Title 50. All records of the authority shall be subject to Article 4 of Chapter 18 of Title 50.

History. Ga. L. 1975, p. 107, § 25.

46-3-154. Supplemental nature of powers conferred by article.

The provisions of this article shall be regarded as supplementary and additional to and cumulative of powers conferred by other laws and shall not be regarded as being in derogation of any powers conferred by any other law.

History. Ga. L. 1975, p. 107, § 29.

46-3-155. Construction of article.

This article, being for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes hereof.

History. Ga. L. 1975, p. 107, § 28.

46-3-170. Short title.

This article may be cited as the “Georgia Electric Membership Corporation Act.”

History. Ga. L. 1937, p. 644, § 1; Code 1933, § 34C-101, enacted by Ga. L. 1981, p. 1587, § 1.

Cross references.

Nonprofit corporations generally, § 14-3-101 et seq.

Extension of jurisdiction of commission over electric membership corporations to same extent as commission has jurisdiction over electric light and power companies, § 46-3-12 .

46-3-171. Definitions.

As used in this article, the term:

1. “Address” means a complete mailing address, including, whenever practicable, street and number or building and floor.
2. “Articles of incorporation” means the original or restated articles of incorporation or articles of consolidation and all the amendments thereto, including articles of merger, and also includes what have been designated by the laws of this state prior to July 1, 1981, as charters.

   (2.1) “Broadband affiliate” means any person which directly or indirectly controls, is controlled by, or is under common control of one or more electric membership corporations and which is used to provide broadband services.

   (2.2) “Broadband facilities” means any facilities and equipment utilized to provide or support broadband services.

   (2.3) “Broadband services” means a wired or wireless service that consists of the capability to transmit data at a rate not less than 200 kilobits per second to and from end users and in combination with such service provides:

   (2.4) “Communications service provider” means a provider of cable service as defined in 47 U.S.C. Section 522(6), telecommunications service as defined in 47 U.S.C. Section 153(53), or information service as defined in 47 U.S.C. Section 153(24), as each such term existed on January 1, 2019.

   (2.5) “Electric easement” means a right of way or an easement, whether acquired by eminent domain, prescription, or conveyance, that is used or may be used for transmitting, distributing, or providing electrical energy and services by utilizing aboveground or underground wires, cables, lines, or similar facilities.

   1. Access to the internet;
   2. Computer processing, information storage, or protocol conversion; or
   3. Any application or information content to be provided over or through broadband.

      Such term shall include any broadband facilities and equipment associated with providing such a service.

3. “Electric membership corporation” or “EMC” means an electric membership corporation organized under this article or any prior electric membership corporation law of this state, or a corporation which elected, in accordance with the provisions thereof, to be governed by Ga. L. 1937, p. 644, the “Electric Membership Corporation Act.”
4. “Federal agency” includes the United States of America and any department, administration, commission, board, bureau, office, establishment, agency, authority, or instrumentality thereof.
5. “Foreign electric cooperative” means a cooperative, nonprofit membership corporation organized under laws other than the laws of this state for the same or similar purposes for which an electric membership corporation may be organized under this article.

   (5.1) “Gas activities” shall have the same meaning as provided for in Code Section 46-4-152.

   (5.2) “Gas affiliate” shall have the same meaning as the term “EMC gas affiliate” provided in Code Section 46-4-152.

6. “Insolvent” means that an electric membership corporation is unable to pay its debts as they become due in the usual course of its business or that it has liabilities in excess of assets.
7. “Member” means a person that has met the requirements and conditions of membership in an electric membership corporation which are set forth in this article and in the articles of incorporation and bylaws of an electric membership corporation.
8. “Person” includes any natural person; firm; association; electric membership corporation; cooperative; corporation; business or other trust; partnership; limited liability company; federal agency; state or political subdivision thereof; body politic; or other entity recognized by law.

   (8.1) “Retail broadband services” means any broadband services other than those provided for:

   1. The internal use of an electric membership corporation;
   2. The internal use of another electric membership corporation;
   3. Resale by another electric membership corporation or other communications service providers; or
   4. Use as a component part of communications services that other communications service providers offer to their customers.
9. “Service” means any service or commodity which an electric membership corporation may provide under this article for which value is paid.

History. Ga. L. 1937, p. 644, § 2; Ga. L. 1939, p. 312, § 1; Ga. L. 1960, p. 5, § 1; Code 1933, § 34C-102, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2019, p. 226, § 1/SB 2.

The 2019 amendment, effective April 26, 2019, added paragraphs (2.1) through (2.5), (5.1), (5.2), and (8.1); substituted “person that” for “person who” near the beginning of paragraph (7); and rewrote paragraph (8), which read: “ ‘Person’ includes any natural person; firm; association; electric membership corporation; foreign electric cooperative; corporation, either domestic or foreign; business or other trust; partnership; federal agency; state or political subdivision thereof; or body politic.”

46-3-172. Applicability of article.

1. This article shall apply to electric membership corporations but shall not apply to other persons except when expressly so provided in this article.
2. This article shall apply to commerce with foreign nations and among the several states only insofar as the same may be permitted under the Constitution and laws of the United States.
3. This article shall not impair the existence of any electric membership corporation existing on July 1, 1981. Any such existing electric membership corporation and its members, directors, and officers shall have the same rights and be subject to the same limitations, restrictions, liabilities, and penalties as an electric membership corporation formed under this article and its members, directors, and officers.
4. If the articles of incorporation or the bylaws of an electric membership corporation in existence on July 1, 1981, contain any provisions which were not authorized or permitted by the prior electric membership corporation law of this state but which are authorized or permitted by this article, such articles of incorporation or bylaw provisions shall be valid on and from July 1, 1981; and action may be taken on and from that date in reliance on such provisions.

History. Code 1933, § 34C-103, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-173. Effect of affixing corporate seal; signing of documents; affixing of seal as optional; signing of deeds after dissolution of an electric membership corporation.

1. With respect to any contract, conveyance, or other such document executed by and on behalf of an electric membership corporation or a foreign electric cooperative, the presence of the corporate seal or facsimile thereof, attested by the secretary or an assistant secretary of the corporation, shall attest:
   1. That the corporate seal or facsimile thereof affixed to the document is in fact the seal of the corporation or a true facsimile thereof, as the case may be;
   2. That any officer of the corporation executing the document does in fact occupy the official position indicated; that one in such position is duly authorized to execute such document on behalf of the corporation; and that the signature of such officer subscribed thereto is genuine; and
   3. That the execution of the document on behalf of the corporation has been duly authorized.
2. When the seal of an electric membership corporation or facsimile thereof is affixed to any document and is attested by the secretary or an assistant secretary of an electric membership corporation, a third party without knowledge or reason to know to the contrary may rely on such document as being what it purports to be.
3. When other provisions of this article require a document to be executed as provided in this Code section, the document shall be signed by the president or other chief executive officer, or a vice-president; and his signature shall be attested by the secretary or an assistant secretary. If the corporate seal is affixed, the signature of the secretary or assistant secretary shall also attest the seal.
4. The seal of the electric membership corporation may, but need not, be affixed to any document executed in accordance with this article; and its absence therefrom shall not impair the validity of the document or of any action taken in pursuance thereof or in reliance thereon.
5. Deeds or other transfer instruments requiring execution after the dissolution of an electric membership corporation may be signed by any two of the last officers or directors of the electric membership corporation and shall operate to convey the interest of the electric membership corporation in the real estate or other property described.

History. Code 1933, § 34C-104, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-174. Filing of documents with Secretary of State; filing of articles of correction.

1. Whenever this article requires any document to be delivered for filing as provided in this article, unless otherwise specifically stated in this article and subject to any additional provisions of this article, such requirement shall mean that:
   1. The original executed document, together with a conformed copy thereof, shall be delivered to the office of the Secretary of State;
   2. All fees required for filing the document shall be tendered to the Secretary of State;
   3. Upon delivery of the documents, and upon tender of the required fees, the Secretary of State shall certify that the original has been filed in his office by endorsing upon the original the word “filed” and the hour, day, month, and year thereof. Such endorsement shall be known as the filing date of the document and shall be conclusive of the date of filing in the absence of actual fraud. The Secretary of State shall thereafter file and index the original;
   4. The Secretary of State shall immediately compare the conformed copy with the original; and, if he finds that they are identical, he shall certify the conformed copy by making upon it the same endorsement which is required to appear upon the original, together with a further endorsement that the conformed copy is a true copy of the original document;
   5. The conformed copy, so certified, shall be returned to the person or persons delivering the documents to the Secretary of State or to the designee of such person or persons; and it shall be retained as part of the permanent records of the electric membership corporation or foreign electric cooperative.
2. Whenever any document authorized to be filed with the Secretary of State under this article has been so filed and contains errors in, inaccuracies in, or omissions of information required by this article, is an inaccurate record of the action therein referred to, or was defectively or erroneously executed or sealed, such document may be corrected by filing articles of correction with the Secretary of State. The articles of correction shall specify the error, inaccuracy, omission, or defect to be corrected and shall set forth the portion of the document in corrected form. Except as set forth in subsection (c) of this Code section, the procedure for filing articles of correction shall be the same as would be required under this article for filing the document being corrected. The corrected document shall be effective as of the effective date of the original document, except as to those persons who are substantially and adversely affected by the correction; and, as to those persons, the corrected document shall be effective from the filing date of the articles of correction.
3. No fee shall be payable to the Secretary of State for filing the articles of correction. The filing of the articles of correction as authorized in subsection (b) of this Code section shall not require the republication of any notice previously published in connection with the filing of the original document unless the error, inaccuracy, omission, or defect in the original document relates to information which was disclosed in the notice. In the event the error, inaccuracy, omission, or defect in the original document relates to information disclosed in the notice, a new notice shall be published in the same manner as the original publication. The publisher’s fee for republication shall be the same as the fee for the original publication.

History. Code 1933, § 34C-105, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-175. Certification of documents by Secretary of State.

The Secretary of State, at any time, upon the request of any person, shall make and certify additional copies of any document filed with his or her office and of the certificate, if any, issued by the Secretary of State in connection with the filing of the document, under this article, upon payment to the Secretary of State of the fee provided for in Code Section 46-3-502.

History. Code 1933, § 34C-106, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2011, p. 99, § 90/HB 24.

The 2011 amendment, effective January 1, 2013, deleted former subsection (a); deleted the former subsection (b) designation; inserted “or her” near the middle of this Code section; and substituted “the Secretary of State” for “him” near the end of this Code section. See Editor’s notes for applicability.

Editor’s notes.

Ga. L. 2011, p. 99, § 101/HB 24, not codified by the General Assembly, provides that the amendment of this Code section by that Act shall apply to any motion made or hearing or trial commenced on or after January 1, 2013.

Law reviews.

For article, “Evidence,” see 27 Ga. St. U. L. Rev. 1 (2011).

For article on the 2011 amendment of this Code section, see 28 Ga. St. U.L. Rev. 1 (2011).

46-3-176. Obligations issued to secure payment of federal loans as constituting securities; exemption of obligations and membership certificates from Georgia securities laws.

Whenever any electric membership corporation shall have borrowed money from any federal agency, the obligations issued to secure the payment of such money shall be and are classified as securities, the inherent qualities of which assure their sale and disposition without the perpetuation of fraud and which, together with membership certificates issued by any such electric membership corporation, shall not be subject to the Georgia securities laws.

History. Ga. L. 1937, p. 644, § 20; Code 1933, § 34C-1801, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-177. Jurisdiction of commission.

Except as otherwise provided in Part 1 of Article 1 of this chapter, the “Georgia Territorial Electric Service Act,” electric membership corporations shall not be subject to the jurisdiction of the commission.

History. Code 1933, § 34C-1802, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-178. Intent of article as regards authority of electric membership corporations to own or operate cable television systems.

It is the intention of the General Assembly that nothing in this article shall be construed so as to authorize any electric membership corporation to own or operate a cable television system.

History. Ga. L. 1981, p. 1587, § 2.

46-3-179. Validity of transactions entered into before July 1, 1981; preservation of rights, duties, and interests arising from such transactions.

Transactions validly entered into before July 1, 1981, and the rights, duties, and interests flowing from them shall remain valid thereafter and may be terminated, completed, consummated, or enforced as required or permitted by any statute repealed by this article as though such repeal had not occurred.

History. Ga. L. 1981, p. 1587, § 3.

46-3-180. Effect of article on cause of action, liability, penalty, or special proceeding accrued, existing, incurred, or pending as of July 1, 1981.

The repeal of a prior Act by this article shall not affect any cause of action, liability, penalty, or action or special proceeding which is accrued, existing, incurred, or pending on July 1, 1981; but the same may be asserted, enforced, prosecuted, or defended as if the prior Act had not been repealed.

History. Ga. L. 1981, p. 1587, § 4.

46-3-181. Reservation of power by General Assembly.

The General Assembly shall at all times have power to prescribe such regulations, provisions, and limitations as it may deem advisable, which regulations, provisions, and limitations shall be binding upon any and all persons which are subject to this article; and the General Assembly shall have power to amend, repeal, or modify this article at pleasure.

History. Code 1933, § 34C-107, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-182. Construction of article as against Part 1 of Article 1 of this chapter, the “Georgia Territorial Electric Service Act.”

Nothing in this article repeals, or is intended to repeal, either expressly or by implication, any provision of Part 1 of Article 1 of this chapter, the “Georgia Territorial Electric Service Act.”

History. Code 1933, § 34C-108, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-200. Purposes of electric membership corporations.

An electric membership corporation may serve any one or more of the following purposes:

1. Furnish electrical energy and service;
2. Assist its members in the efficient and economical use of energy;
3. Engage in research and promote and develop energy conservation and sources and methods of conserving, producing, converting, and delivering energy;
4. Provide and operate broadband facilities and provide and use the broadband services described in subparagraphs (A) and (B) of paragraph (8.1) of Code Section 46-3-171;
5. Furnish on a nondiscriminatory basis the broadband services described in subparagraphs (C) and (D) of paragraph (8.1) of Code Section 46-3-171;
6. Form, fund, support, and operate a broadband affiliate, directly or indirectly, contingent upon compliance with Code Sections 46-5-163 and 46-3-200.2; and
7. Engage in any lawful act or activity necessary or convenient to effect the foregoing purposes.

History. Ga. L. 1937, p. 644, § 3; Code 1933, § 34C-201, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2019, p. 226, § 2/SB 2.

The 2019 amendment, effective April 26, 2019, rewrote this Code section, which read: “An electric membership corporation may serve any one or more of the following purposes:

“(1) To furnish electrical energy and service;

“(2) To assist its members in the efficient and economical use of energy;

“(3) To engage in research and to promote and develop energy conservation and sources and methods of conserving, producing, converting, and delivering energy; and

“(4) To engage in any lawful act or activity necessary or convenient to effect the foregoing purposes.”

46-3-200.1. Authorized acts of electric membership corporation or broadband affiliate.

In order to assist a broadband affiliate in the planning, engineering, construction, extension, provision, operation, repair, and maintenance of broadband services, an electric membership corporation or its broadband affiliate shall be authorized to:

1. Apply for, accept, repay, and utilize loans, grants, and other financing from any person; and
2. Enter into contracts, agreements, partnerships, or other types of business relationships with any person.

History. Code 1981, § 46-3-200.1 , enacted by Ga. L. 2019, p. 226, § 3/SB 2.

Effective date. —

This Code section became effective April 26, 2019.

46-3-200.2. Cross-subsidization; jurisdiction over compliance with the cross-subsidization prohibitions; expedited adjudication.

1. No electric membership corporation, broadband affiliate, or gas affiliate shall permit cross-subsidization between its electricity services activities, its broadband services activities, or its gas activities. To prevent cross-subsidization between broadband services activities and gas activities and between broadband services activities and electricity services activities, any electric membership corporation with a broadband affiliate that provides retail broadband services shall:
   1. Fully allocate all costs of electricity services activities and broadband services activities, including costs of any shared services, between electricity services activities and such broadband affiliate’s broadband services activities, in accordance with:
      1. The provisions of this Code section; and
      2. The applicable uniform system of accounts and generally accepted accounting principles that are applicable to electric membership corporations under federal and state laws, rules, and regulations;
   2. Not charge any costs of electricity services activities or gas activities to the broadband services customers of the broadband affiliate;
   3. Not charge any costs of broadband services activities to the electricity services customers of such electric membership corporation or to the gas activities customers of its gas affiliate; and
   4. Not use below-market loans or below-market funding from programs that are not intended to support the deployment of broadband facilities or broadband services in order to support broadband facilities or to provide broadband services unless the electric membership corporation or its broadband affiliate imputes the difference between market rates and the below-market loans or below-market funding into the costs of its broadband facilities and broadband services. The provisions of this paragraph shall not apply to loans or funding from programs that are intended to support the deployment of broadband facilities or broadband services.
2. An electric membership corporation that has a broadband affiliate that provides retail broadband services shall:
   1. Not condition the receipt of electricity services upon, nor provide more favorable terms for electricity services in exchange for, persons that receive broadband services from the electric membership corporation or its broadband affiliate;
   2. Have a duty to provide access to the poles, ducts, conduits, and easements of such electric membership corporation to all communications service providers on rates, terms, and conditions that are just, reasonable, and nondiscriminatory;
   3. Not provide its broadband affiliate or any communications service provider any information obtained from other communications service providers in the pole attachment request and approval process, including without limitation the requested locations for pole attachments, the locations of the customers to be served, or any identifying information regarding such customers;
   4. When such electric membership corporation is assisting a customer or potential customer seeking to initiate electricity services and there is any inquiry or discussion regarding the availability of retail broadband services, in the course of the same discussion or transaction in which such assistance is being provided, inform such customer or potential customer of other providers offering broadband services in such customer’s area based on any service map of a provider of broadband services or similar resource maintained by any department of the state or federal government and inform such customer or potential customer that broadband services may be obtained from such electric membership corporation’s broadband affiliate or such other providers of broadband services. Such information shall be provided only with regard to other providers of broadband services that have notified the electric membership corporation’s broadband affiliate, in writing and in a commercially reasonable manner, that such provider of broadband services is able and willing to provide broadband services to customers located within all or a portion of the electric membership corporation’s designated electricity service territory; and
   5. Develop and maintain a cost allocation manual, to be approved by the commission, describing the electric membership corporation’s methods of cost allocation and such other information and policies reasonably required to ensure compliance with this article. Such manual shall:
      1. Establish rules for the pricing of transactions between an electric membership corporation and its gas affiliates and broadband affiliates, as applicable, including the transfer of assets between such electric membership corporation and its gas affiliates and broadband affiliates;
      2. Require the electric membership corporation and its gas affiliates and broadband affiliates, as applicable, to maintain separate books of accounts and records which shall be subject to inspection to confirm compliance with this article and the cost allocation manual; and
      3. Require that all services that an electric membership corporation provides to its gas affiliates and broadband affiliates, as applicable, be provided at the same rates and on the same terms and conditions as any other similarly situated retail customer or communications service provider. Any such services provided to any communications service provider shall be on a strictly confidential basis, such that the electric membership corporation does not share information regarding any communications service provider with any other communications service provider, including a broadband affiliate.
3. The commission shall have jurisdiction over each broadband affiliate and each electric membership corporation that has a broadband affiliate that provides retail broadband services to enforce compliance within the provisions of this Code section. The commission shall provide for an expedited adjudication of any complaint as to a failure to comply with this Code section and may engage an administrative law judge for purposes of such adjudication.
4. Except as provided in subsection (e) of this Code section, this Code section shall only apply to electric membership corporations with a broadband affiliate offering retail broadband services.
5. As to an electric membership corporation that was offering retail broadband services on or before January 1, 2019, whether directly through the electric membership corporation or indirectly through a broadband affiliate, this Code section shall only apply to retail broadband services offered on or after January 1, 2021, and such electric membership corporation shall have until January 1, 2021, to develop and maintain the cost allocation manual required in paragraph (5) of subsection (b) of this Code section.

History. Code 1981, § 46-3-200.2 , enacted by Ga. L. 2019, p. 226, § 3/SB 2.

Effective date. —

This Code section became effective April 26, 2019.

46-3-200.3. Rights, powers, and benefits to broadband affiliates of electric membership corporations.

Broadband affiliates shall have all of the rights, powers, and benefits granted to other entities under the provisions of Title 14 and shall not be subject to any restrictions contained in this article, except that a broadband affiliate shall:

1. Only serve the purposes of developing, providing, furnishing, or promoting broadband facilities and broadband services, or a combination of such purposes; and
2. Be subject to the provisions of Code Section 46-3-200.2.

History. Code 1981, § 46-3-200.3 , enacted by Ga. L. 2019, p. 226, § 3/SB 2.

Effective date. —

This Code section became effective April 26, 2019.

46-3-200.4. Rates, terms, and conditions for pole attachments between communications service providers and electric membership corporations and their broadband affiliates.

1. As used in this Code section, the term:
   1. “Attachment” means the connection or fastening of a wire or cable to a utility pole.
   2. “Broadband services” shall have the same meaning as provided for the term “broadband service” in Code Section 46-5-221.
   3. “Communications service provider” means a provider of cable service as defined in 47 U.S.C. Section 522(6), telecommunications service as defined in 47 U.S.C. Section 153(53), or information service as defined in 47 U.S.C. Section 153(24), as each such term existed on January 1, 2020.
   4. “Utility pole” means a pole or similar structure that is used in whole or in part for electric distribution by an electric membership corporation or an affiliate thereof.
2. In order to promote the deployment of broadband services in this state, and except as required by the Tennessee Valley Authority for its distributors in this state, on and after July 1, 2021, the rates, fees, terms, conditions, and specifications in any pole attachment agreement entered into by a communications service provider and an electric membership corporation shall be as determined by the commission, except as provided in subsection (e) of this Code section. Such determination shall be made after consideration of what is just, reasonable, nondiscriminatory, and commercially reasonable. The commission shall by rules and regulations prescribe the process for making such a determination providing all interested parties the opportunity to be heard and to present evidence. On or before January 1, 2021, the commission shall publish the pole attachment rates, fees, terms, conditions, and specifications.
3. The commission shall have jurisdiction over all electric membership corporations to enforce compliance within the provisions of this Code section. The commission shall provide for an expedited adjudication of any complaint as to a failure to comply with this Code section and may engage an administrative law judge for purposes of such adjudication.
4. Notwithstanding the provisions of subsection (b) of this Code section, any existing agreement between a communications service provider and an electric membership corporation shall remain in effect until the date of its natural expiration or lawful termination.
5. Any electric membership corporation and communications service provider may enter into a mutual agreement as to the rates, fees, terms, conditions, and specifications for attachments to utility poles by communications service providers that differ from those provided for in subsection (b) of this Code section.

History. Code 1981, § 46-3-200.4 , enacted by Ga. L. 2020, p. 814, § 2/HB 244.

Effective date. —

This Code section became effective January 1, 2021.

Editor’s notes.

Ga. L. 2020, p. 814, § 1/HB 244, not codified by the General Assembly, provides that: “This Act shall be known and may be cited as the ‘Georgia Broadband Opportunity Act.’”

Ga. L. 2020, p. 814, § 2/HB 244, repealed former Code Section 46-3-200.4, pertaining to rates, terms, and conditions for pole attachments between communications service providers and electric membership corporations and their broadband affiliates, and enacted the present Code section. The former Code section was based on Ga. L. 2019, p. 226, § 3/SB 2.

46-3-201. Existence of electric membership corporations under articles of incorporation; duration of corporations; powers of corporations generally.

1. Subject to any limitations provided in this article, or in any other law, and consistent with the purposes set forth in this article, each electric membership corporation:
   1. Shall exist under articles of incorporation;
   2. Shall have perpetual duration unless a limited period of duration is stated in its articles of incorporation; provided, however, that each electric membership corporation existing or continuing to operate as an electric membership corporation after the expiration of the period of duration stated in its articles of incorporation or any renewal thereof, on July 1, 1981, shall have perpetual duration unless its articles of incorporation are amended under this article to provide for a limited period of duration. The existence of any such electric membership corporation whose articles of incorporation were expired on July 1, 1981, shall be deemed to have continued without interruption from the date of such expiration;
   3. Shall have power:
      1. To cease its corporate activities and surrender its corporate franchise;
      2. To renew or revive its corporate existence in case a limited period of duration is fixed in its articles of incorporation; and
      3. To sue and be sued and to complain and defend in all courts and to participate in any judicial, administrative, arbitrative, or other action or proceeding.
2. Subject to any limitations provided in this article or in any other law, and consistent with the purposes set forth in this article, each electric membership corporation shall have power:
   1. To conduct its business, carry on its operations, have offices, and exercise its powers granted by this article at any location within or outside of this state;
   2. To make and alter bylaws, not inconsistent with its articles of incorporation or with the laws of this state, for the administration and regulation of the affairs of the electric membership corporation;
   3. To elect, appoint, or hire officers, employees, and other agents of the electric membership corporation; to define their duties; and to fix their compensation and the compensation of directors;
   4. To have a corporate seal which may be altered at pleasure and to use the seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced;
   5. To purchase; take; receive by gift, will, or otherwise; lease; or otherwise acquire, own, hold, improve, use, and otherwise deal in and with real or personal property or any interest therein, wherever situated;
   6. To sell, convey, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets or any interest therein, wherever situated;
   7. To generate, manufacture, purchase, acquire, and accumulate electricity, and to transmit, distribute, sell, furnish, and dispose of such electricity;
   8. To assist its members in any manner in the efficient and economical use of energy, including, but not limited to, the installation of wiring, insulation, electrical machinery, supplies, apparatus, and equipment of any and all kinds or character;
   9. To acquire, own, hold, use, exercise, and, to the extent permitted by law, sell, mortgage, pledge, hypothecate, and in any manner dispose of franchises, rights, privileges, licenses, rights of way, and easements necessary, useful, or appropriate. Any such electric membership corporation shall have the right to acquire rights of way, easements, and all interests in realty necessary and appropriate to effectuate the purposes of such electric membership corporation by condemnation under the same procedure and terms as provided by Title 22 and any other law of this state which provides a method or procedure for the condemnation of property for public purposes by all persons or corporations having the privilege of exercising the right of eminent domain;
   10. In connection with the acquisition, construction, improvement, operation, or maintenance of its lines, to use any highway or any right of way, easement, or other similar property right owned or held by the state or any political subdivision thereof, subject to reasonable rules and regulations as to safety as may be promulgated by the State Transportation Board or subject to such reasonable terms and conditions as the governing body of such political subdivision shall determine;
   11. To make any and all contracts necessary or convenient for the exercise of the powers granted in this article, including, but not limited to, contracts with any person, federal agency, or municipality for the purchase or sale of energy; and, in connection with any such contract, to stipulate and agree to such covenants, terms, and conditions as the board of directors may deem appropriate, including, but not limited to, covenants, terms, and conditions with respect to resale rates, financial and accounting methods, services, operation and maintenance practices, and the manner of disposing of the revenues of the system operated and maintained by the electric membership corporation;
   12. To make and enter into contracts of guaranty, whether or not the electric membership corporation has a direct interest in the subject matter of the contract with respect to which it acts as guarantor or surety;
   13. To incur obligations and liabilities, borrow money, issue its notes, bonds, and other obligations, and to execute and deliver any one or more mortgages, deeds of trust, or deeds to secure debt covering, or to create by other means a security interest in, any or all of the real or personal property, assets, rights, privileges, licenses, franchises, and permits of the electric membership corporation or any interest therein, as well as the revenues therefrom, whether acquired or to be acquired, and wherever situated, for the purpose of securing the payment or performance of any one or more contracts, notes, bonds, or other obligations of the electric membership corporation;
   14. To purchase, take, receive, subscribe for, or otherwise acquire; to own, hold, vote, use, or employ; to sell, lend, or otherwise dispose of; to mortgage, pledge, create a security interest in, or otherwise encumber; and otherwise to use and deal in and with shares or other interests in or obligations of electric membership corporations or other domestic or foreign corporations, whether for profit or not, associations, partnerships, or individuals, or direct or indirect obligations of the United States or of any other government, state, territory, governmental district, or municipality or any instrumentality thereof;
   15. To form or acquire the control of other electric membership corporations, foreign electric cooperatives, and other corporations, whether domestic or foreign;
   16. To participate with any other person or persons in any corporation, partnership, transaction, arrangement, operation, organization, or venture, even if such participation involves sharing of control with or delegation of control to others;
   17. To lend money, invest and reinvest its funds, and take and hold real and personal property as security for the payment of funds so loaned or invested;
   18. To make donations, irrespective of corporate benefit, for the public welfare or for community fund, hospital, charitable, scientific, educational, civic, or similar purposes, and in time of war or other national emergency in aid of the national effort with respect thereto;
   19. At the request or direction of the United States government or any agency thereof, to transact any lawful business in time of war or national emergency or in aid of national defense;
   20. To procure for its benefit insurance on the life of any of its directors, officers, or employees or any other person whose death might cause financial loss to the electric membership corporation;
   21. To reimburse and indemnify litigation expenses of directors, officers, and employees and to purchase and maintain liability insurance for their benefit;
   22. To purchase and otherwise acquire and dispose of its own securities;
   23. To pay pensions and establish and carry out pension, savings, thrift, and other retirement, incentive, and benefit plans, trusts, and provisions for any or all of its directors, officers, and employees;
   24. To fix, regulate, and collect rates, fees, rents, or other charges for electric energy and any other facilities, supplies, equipment, or services furnished by the electric membership corporation;
   25. To assist any other electric membership corporation in the execution of its purposes and powers under this article; and
   26. To have and exercise all powers necessary or convenient to effect any or all of the purposes for which the electric membership corporation is organized.
3. It shall not be necessary to set forth in the articles of incorporation any of the powers enumerated in this Code section.
4. The articles of incorporation may limit or expand the powers conferred by subsection (b) of this Code section in any manner not inconsistent with any other provisions of this article or any other law or with the purposes of electric membership corporations.

History. Ga. L. 1937, p. 644, § 4; Ga. L. 1939, p. 312, § 2; Ga. L. 1957, p. 604, §§ 1, 2; Ga. L. 1980, p. 72, § 1; Code 1933, § 34C-202, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1984, p. 22, § 46.

Law reviews.

For survey article on local government law, see 59 Mercer L. Rev. 285 (2007).

For survey article on zoning and land use law, see 59 Mercer L. Rev. 493 (2007).

46-3-202. Defense of ultra vires.

No act of an electric membership corporation and no conveyance or transfer of real or personal property to or by an electric membership corporation shall be invalid by reason of the fact that the electric membership corporation was without capacity or power to do such act or to make or receive such conveyance or transfer; but such lack of capacity or power may be asserted:

1. In an action by a member or director against the electric membership corporation to enjoin the doing of any act or the transfer of real or personal property by or to the electric membership corporation, unless the plaintiff has assented to the act or transfer in question or in bringing the action is acting in collusion with officials of the electric membership corporation. If the unauthorized act or transfer sought to be enjoined is being or is to be performed or made pursuant to any contract to which the electric membership corporation is a party, the court may, if all the parties to the contract are parties to the action and if it deems the same to be equitable, set aside and enjoin the performance of such contract and in so doing may allow to the electric membership corporation or to the other parties to the contract, as the case may be, compensation for the loss or damage sustained by either of them which may result from the action of the court in setting aside and enjoining the performance of such contracts; but anticipated profits to be derived from the performance of the contract shall not be awarded by the court as a loss or damage sustained;
2. In an action by the electric membership corporation, whether acting directly or through a receiver, trustee, or other legal representative or through members in a representative action, against an incumbent or former officer or director of the electric membership corporation for loss or damage due to his unauthorized act; or
3. In an action by the Attorney General to dissolve the electric membership corporation or in an action by the Attorney General to enjoin the electric membership corporation from the transaction of unauthorized business.

History. Code 1933, § 34C-203, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-203. Unauthorized assumption of corporate powers.

All persons who assume to act as an electric membership corporation before the Secretary of State has issued the certificate of incorporation to the incorporator or incorporators or his or their attorney shall be jointly and severally liable for all debts and liabilities incurred or arising as a result thereof.

History. Code 1933, § 34C-204, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-204. Limitations as to actions growing out of acquisition of rights of way, easements, or occupation of lands of others; damages recoverable.

All rights of action accruing against any electric membership corporation growing out of the acquisition of rights of way or easements or the occupying of lands of others by such electric membership corporations shall be barred at the end of 12 months from the date of the accrual of such cause of action; and in cases where any such electric membership corporation is in possession of the lands of others without having condemned the property as provided, and such electric membership corporation is using any such land of another for any of the purposes for which an electric membership corporation may be created under this article, and the owners of the land took no legal steps to prevent the occupation of the land by the electric membership corporation, the rights of the owner of the land shall be limited to whatever damages may have been caused to his realty by such occupation; and this limitation shall apply to all persons whether sui juris or not.

History. Ga. L. 1939, p. 312, § 3; Code 1933, § 34C-205, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-205. Use of easements.

1. The General Assembly finds that electric membership corporations providing broadband services should be permitted to use existing electric easements to provide or expand access to broadband services. The General Assembly also finds that utilizing existing electric easements to provide broadband services, without the placement of additional poles or other ground based structures, does not change the physical use of the easement, interfere with or impair any vested rights of the owner or occupier of the real property subject to the electric easement, or place any additional burden on the property interests of such owner or occupier. Consequently, the installation and operation of broadband services within any electric easement are merely changes in the manner or degree of the granted use as appropriate to accommodate a new technology and, absent any applicable express prohibition contained in the instrument conveying or granting the electric easement, shall be deemed as a matter of law to be a permitted use within the scope of every electric easement.
2. Subject to compliance with any express prohibitions in an electric easement, the owner of an electric easement may use an electric easement to install, maintain, lease, and operate broadband services without incurring liability to the owner or occupant of the real property subject to the electric easement or paying additional compensation to the owner or occupant of the real property subject to the electric easement, so long as no additional poles or other ground based structures are installed; provided, however, that any electric utility owning an electric easement may assess fees and charges and impose reasonable conditions on the use of its facilities within an electric easement for the purpose of providing or supporting broadband services.
3. Nothing in this Code section shall in any way affect, abrogate, or eliminate the obligation of an owner of an electric easement that is located on, along, over, across, or under property owned or controlled by a railroad company or state agency to comply with the application, review, safety, and permit requirements of such railroad company or state agency for projects of the nature contemplated by this Code section. Such requirements may include, but are not limited to, insurance coverage and responsibility of the owner of an electric easement to pay for costs incurred by a railroad company or state agency related to such requirements, such as safety measures and engineering review costs. For purposes of this subsection, the term “state agency” means any department, division, board, bureau, commission, or other agency of the state government or any state authority.

History. Code 1981, § 46-3-205 , enacted by Ga. L. 2019, p. 226, § 4/SB 2; Ga. L. 2020, p. 485, § 1/SB 370.

Effective date. —

This Code section became effective April 26, 2019.

The 2020 amendment, effective January 1, 2021, added subsection (c).

46-3-220. Requirements as to corporate name generally.

1. The corporate name shall be written in Roman or cursive letters or Arabic or Roman numbers and:
   1. Shall contain the words “electric membership corporation” or an abbreviation of such words;
   2. Shall not contain any word or phrase:
      1. Which indicates or implies that the electric membership corporation is organized for any purpose other than one or more of the purposes permitted by this article and its articles of incorporation; or
      2. Which, in the reasonable judgment of the Secretary of State, is obscene;
   3. Shall not be the same as or confusingly similar to:
      1. The name of any electric membership corporation or other corporation, whether for profit or not, existing under the laws of this state;
      2. The name of any foreign corporation, whether for profit or not, or any foreign electric cooperative authorized to transact business in this state;
      3. A name the exclusive right to which is at the time reserved in the manner provided in Chapter 3 of Title 14, the “Georgia Nonprofit Corporation Code,” Chapter 2 of Title 14, the “Georgia Business Corporation Code,” or in this article;
      4. The name of a corporation which has in effect a registration of its corporate name as provided in Chapter 2 of Title 14, the “Georgia Business Corporation Code”; or
      5. Any name prohibited by any other law of this state.
2. Nothing in this Code section shall:
   1. Prevent the use of the name of any electric membership corporation or other corporation, whether domestic or foreign, by an electric membership corporation where the first such electric membership corporation or other corporation has consented to such use, and the name of the electric membership corporation proposing such use contains other words or characters which distinguish it from the name of the first such electric membership corporation or other corporation;
   2. Require any electric membership corporation existing on July 1, 1981, to add to, modify, or otherwise change its corporate name; or
   3. Abrogate or limit the law as to unfair competition or unfair trade practice nor derogate from the common law, principles of equity, or the statutes of this state or of the United States with respect to the right to acquire and protect trade names and trademarks.
3. Any electric membership corporation which is precluded from using its corporate name in another state because such name is the same as or confusingly similar to that of an electric membership corporation or other corporation already authorized to transact business therein or to a name already reserved or registered in such state may amend its articles of incorporation to add to its corporate name, solely for use in such other state, a word, abbreviation, or other distinctive and distinguishing element (such as, for example, the state of its incorporation in parentheses) as may be necessary to resolve any reasonable confusion between the two names. Such amendment shall set forth the state or states as to which it shall apply; and the corporate name with such additions shall be the name of the electric membership corporation in such other state or states and shall be used in all of its dealings with the officials of such state or states and in the conduct of its business and affairs in such state or states.
4. The words “electric membership corporation” shall not be used in the corporate name of corporations organized under the laws of this state, or authorized to do business in this state, other than electric membership corporations.

History. Ga. L. 1937, p. 644, § 7; Code 1933, § 34C-301, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-221. Reservation of names.

1. The exclusive right to the use of a corporate name may be reserved by:
   1. Any person intending to organize an electric membership corporation under this article;
   2. Any electric membership corporation intending to change its name;
   3. Any foreign electric cooperative intending to make application for a certificate of authority to transact business in this state;
   4. Any foreign electric cooperative authorized to transact business in this state and intending to change its name; or
   5. Any person intending to organize a foreign electric cooperative and intending to have such foreign electric cooperative make application for a certificate of authority to transact business in this state.
2. The reservation shall be made by making application to the Secretary of State to reserve a specified corporate name. If the Secretary of State finds that the name is available for corporate use, he shall reserve the name for the exclusive use of the applicant for a period of four calendar months from the date of filing. An extension of this period may be granted by the Secretary of State for good cause shown.
3. Any person or electric membership corporation acquiring the right to use the corporate name of an electric membership corporation or other domestic corporation or of a foreign corporation or foreign electric cooperative authorized to transact business in this state may, on furnishing the Secretary of State satisfactory evidence of such acquisition, reserve the exclusive right to such corporate name for a period of five years.
4. The right to the exclusive use of a specified corporate name reserved as provided in this Code section may be transferred to any person by filing in the office of the Secretary of State a notice of such transfer, executed by the applicant for whom the name was reserved and specifying the name and address of the transferee.
5. The Secretary of State may revoke any reservation if, after hearing in his office, he finds that the application therefor or any transfer was not made in good faith.

History. Code 1933, § 34C-302, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-240. Registered office and registered agent.

1. Each electric membership corporation shall have and continuously maintain in this state:
   1. A registered office which may be, but need not be, the same as its place of business; and
   2. A registered agent, which agent may be:
      1. A natural person residing in this state whose business office is identical with such registered office; or
      2. A domestic corporation or a foreign corporation authorized to transact business in this state, such domestic or foreign corporation having a business office identical with such registered office.
2. The Secretary of State shall maintain current records, alphabetically arranged by corporate name, of the address of each electric membership corporation’s registered office and of the name and address of each electric membership corporation’s registered agent.
3. No registered agent shall be appointed without his or its prior written consent. Such written consent shall be filed with or as part of the document first appointing any registered agent and shall be in such form as the Secretary of State may prescribe.

History. Code 1933, § 34C-401, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-241. Change of registered office or registered agent.

1. An electric membership corporation may change its registered office or change its registered agent, or both, by executing and filing in the office of the Secretary of State a statement setting forth:
   1. The name of the electric membership corporation;
   2. The address of its then registered office;
   3. If the address of its registered office is to be changed, the new address of the registered office;
   4. The name of its then registered agent;
   5. If its registered agent is to be changed, the name of its successor registered agent and the written consent of such successor agent to his appointment; and
   6. That the address of its registered office and the address of the business office of its registered agent, as changed, will be identical.
2. If the Secretary of State finds that such statement conforms to subsection (a) of this Code section, he shall file such statement in his office; and upon such filing, the change of address of the registered office or the change of the registered agent, or both, as the case may be, shall become effective.
3. Any registered agent of an electric membership corporation may resign as such agent upon filing a written notice thereof with the Secretary of State. The appointment of such agent shall terminate upon the expiration of 30 days after receipt of such notice by the Secretary of State. There shall be attached to such notice an affidavit of such agent, if an individual, or of an officer thereof, if a corporation, that at least ten days prior to the date of filing such notice a written notice of the agent’s intention to resign was mailed or delivered to the president, secretary, or treasurer of the electric membership corporation for which such agent is acting. Upon such resignation’s becoming effective, the address of the business office of the resigned registered agent shall no longer be the registered office of the electric membership corporation.
4. A registered agent may change his or its business address and the address of the registered office of any electric membership corporation of which he or it is registered agent to another place within the same county by filing a statement as required in subsection (a) of this Code section, except that such statement need be signed only by the registered agent and need not be responsive to paragraph (5) of subsection (a) of this Code section and must state that a copy of the statement has been mailed or delivered to a representative of such electric membership corporation other than the notifying registered agent.

History. Code 1933, § 34C-402, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-242. Service of process on electric membership corporations.

1. The registered agent appointed by an electric membership corporation pursuant to Code Section 46-3-240 shall be an agent of the electric membership corporation upon whom any process, notice, or demand required or permitted by law to be served upon the electric membership corporation may be served in the manner provided by law for the service of a summons and complaint.
2. Whenever an electric membership corporation fails to appoint or maintain a registered agent in this state, or whenever its registered agent cannot with reasonable diligence be found at the registered office, then the Secretary of State shall be an agent of such electric membership corporation upon whom any process, notice, or demand may be served. Service on the Secretary of State of any such process, notice, or demand shall be made by delivering to and leaving with him, or with any person having charge of the corporation department of his office, or with any other person or persons designated by the Secretary of State to receive such service, duplicate copies of such process, notice, or demand. In the event any such process, notice, or demand is served on the Secretary of State, he shall immediately cause one of the copies thereof to be forwarded by registered or certified mail or statutory overnight delivery, addressed to the electric membership corporation at its registered office or, if there is no registered office, to the last known address of the electric membership corporation or to an officer listed on the most recent annual report filed with the Secretary of State or, if none, to any officer, director, or incorporator of the electric membership corporation as shown by the records of the Secretary of State. Any service so had on the Secretary of State shall be answerable not more than 30 days from the date so mailed by the Secretary of State. The provisions of this subsection may be used notwithstanding any inconsistent provisions of Chapter 11 of Title 9, the “Georgia Civil Practice Act.”
3. The Secretary of State shall keep a record of all processes, notices, and demands served upon him under this Code section and shall record therein the time of such service and his action with reference thereto.
4. Nothing in this Code section shall limit or affect the right to serve any process, notice, or demand required or permitted by law to be served on an electric membership corporation in any other manner permitted by law.

History. Code 1933, § 34C-403, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2000, p. 1589, § 3.

Editor’s notes.

Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the amendment to subsection (b) is applicable with respect to notices delivered on or after July 1, 2000.

46-3-243. Venue in proceedings against electric membership corporations and foreign electric cooperatives generally.

1. Notwithstanding Code Section 46-1-2, venue in proceedings against an electric membership corporation or foreign electric cooperative shall be determined in accordance with the Constitution of Georgia and this Code section.
2. Unless otherwise required by the Constitution of Georgia, an electric membership corporation or foreign electric cooperative may be sued only in the county of its residence, as described below:
   1. Each electric membership corporation and each foreign electric cooperative authorized to transact business in this state shall be deemed to reside in the county where its registered office is maintained. If any such electric membership corporation or foreign electric cooperative fails to maintain a registered office, it shall be deemed to reside in the county in this state where its last-named registered office or principal office, as shown by the records of the Secretary of State, was maintained;
   2. Each electric membership corporation and each foreign electric cooperative authorized to transact business in this state shall be deemed to reside and may be sued on contracts in the county in which the contract sought to be enforced was made or is to be performed, if it has an office and transacts business in that county;
   3. Each electric membership corporation and each foreign electric cooperative authorized to transact business in this state shall be deemed to reside, and may be sued for damages because of torts, wrong, or injury done, in the county where the cause of action originated, if it has an office and transacts business in that county.

History. Code 1933, § 34C-404, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-260. Qualifications of members; provision by articles of incorporation or bylaws for transfer, classification, and termination of memberships.

All persons who may lawfully receive service from an electric membership corporation and who are receiving or have agreed to receive such service shall be members therein, subject to complying with such additional conditions and requirements for membership as are set forth in the articles of incorporation or bylaws of the electric membership corporation. The articles of incorporation or bylaws may also provide criteria for, procedures for, and limitations upon the transfer, classification, and termination of memberships in an electric membership corporation.

History. Ga. L. 1937, p. 644, § 10; Code 1933, § 34C-501, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-261. Liability of members.

A member shall not, solely by virtue of his status as a member, be liable for the debts of an electric membership corporation; and the property of the member shall not, solely by virtue of his status as a member, be subject to attachment, garnishment, execution, or other collection procedure for such debts.

History. Code 1933, § 34C-502, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-262. Meetings of members generally.

1. Meetings of members may be held at such place within the service area of the electric membership corporation as may be provided in the bylaws. In the absence of any such provision, all meetings shall be held at a place within the service area of the electric membership corporation designated by the board of directors or, if no place is so designated, then at the registered office of the electric membership corporation in this state.
2. An annual meeting of the members shall be held at such time as may be provided in the bylaws. In the absence of such designation, the annual meeting shall be held on the second Tuesday of the fourth month following the end of the fiscal year of the electric membership corporation or, if such day is a legal holiday, the next following business day. Failure to hold the annual meeting shall not work a forfeiture; nor shall such failure affect otherwise valid corporate acts. If the electric membership corporation shall fail or refuse to hold the annual meeting on the date provided therefor pursuant to the bylaws or, in the absence of such designation, on the date provided in this Code section and shall thereafter also fail or refuse to hold the annual meeting within 60 days after being requested by any member to do so, the superior court of the county where the registered office of the electric membership corporation is located may, after notice to the electric membership corporation, order a substitute annual meeting to be held upon the application of such member. The superior court may issue such orders as may be appropriate, including, without limitation, orders designating the time and place of such meeting, the record date for determination of members entitled to vote, and the form of notice of such meeting.
3. Special meetings of members or a special meeting in lieu of the annual meeting of members may be called by the president, the chairman of the board of directors, the board of directors, or such other officers or persons as may be provided in the articles of incorporation or bylaws, or, in the event there are no officers or directors, then by any member. Special meetings of members or a special meeting in lieu of the annual meeting of members shall be called by the electric membership corporation upon the written request of not less than 10 percent of the members of the electric membership corporation.
4. Any action required by this article to be taken at a meeting of members of an electric membership corporation, or any action which may be taken at a meeting of members, may be taken without a meeting if written consent setting forth the action so taken shall be signed by all the members. Such consent shall have the same force and effect as a unanimous vote of members and may be stated as such in any articles or document filed with the Secretary of State under this article, except that no consent shall be effective as approval of a plan of merger or plan of consolidation pursuant to Part 10 of this article unless:
   1. Prior to the execution of the consent, the members shall have been given:
      1. A copy of the plan of merger or consolidation or an outline of the material features of the plan; and
      2. A copy of the most recent annual balance sheet and an annual profit and loss statement, or comparable financial statements, of each of the merging or consolidating electric membership corporations or of the merging or consolidating electric membership corporation and foreign electric cooperative, as the case may be; or
   2. The written consent itself conspicuously and specifically states that waiver of the right to receive such information is expressly made.
5. Unless otherwise provided in the articles of incorporation or bylaws of the electric membership corporation, meetings of the members shall be conducted in accordance with the latest edition of Robert’s Rules of Order; provided, however, that failure to so conduct any meeting shall not render invalid any action taken at such meeting unless objection citing such failure is made at the time such action is taken.

History. Ga. L. 1937, p. 644, § 12; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 1; Code 1933, § 34C-505, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-263. Notice of members’ meetings.

1. Written notice stating the place, day, and hour of the annual meeting of members and, in case of a special meeting, the purpose or purposes for which the meeting is called shall be provided not less than five nor more than 90 days before the date of the meeting by any reasonable means, by or at the direction of the president, the secretary, or the officer or persons calling the meeting, to each member of record entitled to vote at such meeting. Reasonable means of providing such notice shall include, but not be limited to, United States mail, personal delivery, electric membership corporation newsletter, or member monthly service bill. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with adequate prepaid postage thereon, addressed to the member at his address as it appears on the record books at the electric membership corporation; provided, however, that if notice is mailed by other than first-class mail, it shall be deemed to be delivered five days from the date of mailing. Personal delivery may be either by personal delivery to the member or by leaving such notice in a conspicuous place at the member’s address as it appears on the record books of the electric membership corporation or at the premises served.
2. At an annual meeting of members, including any substitute annual meeting ordered in accordance with Code Section 46-3-262, any matter relating to the affairs of the electric membership corporation, whether or not stated in the notice of the meeting, may be brought up for action, except matters which this article, the bylaws, or articles of incorporation require to be stated in the notice of the meeting.
3. When a meeting is adjourned to another time or place, it shall not be necessary, unless the bylaws require otherwise, to give any notice of the adjourned meeting if the time and place to which the meeting is adjourned are announced at the meeting at which the adjournment is taken; and at the adjourned meeting, any business may be transacted that might have been transacted on the original date of the meeting. If, however, after the adjournment the board fixes a new record date for the adjourned meeting, a notice of the adjourned meeting shall be given, in compliance with subsection (a) of this Code section, to each member of record on the new record date who is entitled to vote at such meeting.
4. Notice of a meeting of members need not be given to any member who signs a waiver of notice, in person or by proxy, either before or after the meeting. Unless required by the bylaws, neither the business transacted nor the purpose of the meeting need be specified in the waiver, except that any waiver of the notice of a meeting of members required with respect to a plan of merger or a plan of consolidation shall not be effective unless:
   1. Prior to execution of the waiver, the member signing the waiver shall have been given:
      1. A copy of the plan of merger or consolidation or an outline of the material features of the plan; and
      2. A copy of the most recent annual balance sheet and annual profit and loss statement, or comparable financial statements, of each of the merging or consolidating electric membership corporations or of the merging or consolidating electric membership corporation and foreign electric cooperative, as the case may be; or
   2. The waiver itself conspicuously and specifically states that waiver of the right to receive such information is expressly made.
5. Attendance of a member at a meeting, either in person or by proxy, shall of itself constitute waiver of notice and waiver of any and all objections to the place of the meeting, the time of the meeting, or the manner in which it has been called or convened, except when a member attends a meeting solely for the purpose of stating, at the beginning of the meeting, any such objection or objections to the transaction of business.

History. Code 1933, § 34C-507, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-264. Closing of record books and fixing of record date.

1. For the purpose of determining members entitled to notice of or to vote at any meeting of members or any adjournment thereof, or in order to make a determination of members for any other proper purpose, the board of directors of an electric membership corporation may provide that the membership books shall be closed for a stated period not to exceed 90 days.
2. In lieu of closing the membership books, the bylaws or (in the absence of any applicable bylaws) the board of directors may fix in advance a date as the record date for any such determination of members, such date in any case to be not more than 90 days prior to the date on which the particular action requiring such determination of members is to be taken.
3. If the membership books are not closed and no record date is fixed for the determination of members entitled to notice of or to vote at a meeting of members, the date on which notice of the meeting is mailed to all of the members shall be the record date for such determination of membership or, if such notice is not mailed to all of the members on the same date, the date ten days prior to the meeting shall be the record date for such determination of membership.
4. When the determination of members entitled to vote at any meeting of the members has been made as provided in this Code section, such determination shall apply to any adjournment thereof unless the board of directors fixes a new record date under this Code section for the adjourned meeting.

History. Code 1933, § 34C-511, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-265. Quorum of members; adjournment of meeting by majority of members represented at meeting.

1. Unless otherwise provided in the articles of incorporation or in bylaws adopted by the members, 10 percent of the members entitled to vote shall constitute a quorum at a meeting of members.
2. If a quorum is present, the affirmative vote of a majority of the members represented at the meeting shall be the act of the membership unless the vote of a greater number is required by this article, the articles of incorporation, or the bylaws.
3. When a quorum is once present to organize a meeting, the members present may continue to do business at the meeting, or at any adjournment thereof, notwithstanding the withdrawal of enough members to leave less than a quorum.
4. A majority of the members represented at a meeting, whether or not a quorum is present, may adjourn such meeting from time to time.

History. Code 1933, § 34C-509, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-266. Voting by members generally.

1. A member shall be entitled to only one vote in the exercise of his rights as a member of an electric membership corporation.
2. No member shall have the right to cumulate his votes by giving one candidate a vote or votes equal to his vote multiplied by the number of directors to be elected or by distributing such votes on the same principle among any number of such candidates.
3. The chairman of the board, the president, any vice-president, the secretary, or the treasurer or other officer of a corporation, club, school, church, or unincorporated association which is a member of an electric membership corporation shall be deemed by the electric membership corporation to have authority to vote such membership and to execute proxies and written waivers and consents in relation thereto, unless before a vote is taken or a waiver or consent is acted upon it is made to appear by a certified copy of the bylaws or resolution of the board of directors, executive committee, or other governing body of the corporation, club, school, church, or unincorporated association holding such membership that such authority is vested in some other officer or person. In the absence of such certification, a person executing any such proxy, waiver, or consent or presenting himself at a meeting as one of such officers of such a member shall, for the purpose of this Code section, be deemed prima-facie to be duly elected, qualified, and acting as such officer and to be fully authorized to so act. In case of conflicting representation, such a member shall be deemed to be represented by its senior officer in the order first stated in this subsection.
4. Unless it is made to appear otherwise by an affidavit, court order, or other document, or by the instrument creating the position, the following persons shall be deemed to be authorized to vote a membership or execute a proxy, waiver, or consent in relation thereto:
   1. The administrator or executor of an estate which is a member;
   2. A guardian of a member; or
   3. A trustee in whose name a membership is held.
5. If more than one person holds a position described in paragraphs (1) through (3) of subsection (d) of this Code section with respect to the same membership or if a membership is held by two or more persons, whether as fiduciaries, joint tenants, tenants in common, tenants in partnership, or otherwise, then unless the instrument or order appointing them or creating the tenancy otherwise directs and a copy thereof is filed with the secretary of the electric membership corporation or unless the articles of incorporation or bylaws of the electric membership corporation otherwise provide, their acts with respect to voting shall have the following effect:
   1. If only one votes, his act binds all;
   2. If more than one vote, the act of the majority so voting binds all;
   3. If more than one vote and the vote is evenly split, each faction shall be entitled to vote the membership in question proportionally;
6. The principles of subsection (e) of this Code section shall apply, insofar as possible, to the execution of proxies, waivers, consents, or objections and for the purpose of ascertaining the presence of a quorum.
7. If there is reasonable doubt as to the person qualified to cast the vote of a member or to execute a proxy, waiver, or consent on behalf of a member, the electric membership corporation may deny the right of such member to vote or to execute a proxy, waiver, or consent until sufficient action has been taken by such member to eliminate the uncertainty.

History. Ga. L. 1937, p. 644, § 9; Code 1933, § 34C-503, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-267. Effect of voting requirements provided for in articles of incorporation or bylaws.

1. Whenever, with respect to any action to be taken by the members of an electric membership corporation, the articles of incorporation or bylaws require the vote or concurrence of a greater number of the members than required by this article with respect to such action, the provisions of the articles of incorporation or bylaws shall control.
2. Any such provision in the articles of incorporation or bylaws may not itself be amended by a vote less than the vote prescribed in such provision.
3. The authorization or taking of any action by vote or concurrence of the members may be rescinded or revoked by the same vote or concurrence as at the time of rescission or revocation would be required to authorize or take such action in the first instance, subject to the contract rights of other persons.

History. Code 1933, § 34C-508, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-268. Voting by proxy generally.

1. To the extent, and only to the extent, authorized by the articles of incorporation or bylaws, a member may be represented at a meeting of the membership, vote thereat, and execute consents or waivers by one or more persons authorized by a written proxy executed by such member or by his attorney in fact. The exercise of such rights by a person pursuant to a written proxy shall be subject to such limitations and in accordance with such procedures as may be provided in the articles of incorporation or bylaws. The exercise of such rights shall, in any event, be subject to the following limitations and procedures:
   1. No proxy shall be valid after the expiration of 11 months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the person executing it;
   2. No proxy shall be valid if the person granting it is no longer a member or his rights as a member have been lawfully suspended;
   3. Subject to the limitations of paragraphs (1) and (2) of this subsection, any proxy duly executed is not revoked and continues in full force and effect until an instrument revoking it or a duly executed proxy bearing a later date is received by the secretary of the electric membership corporation. A proxy is not revoked by the death or incapacity of the maker unless, before the vote is counted or the authority is exercised, written notice of such death or incapacity is received by the secretary of the electric membership corporation. Notwithstanding that a valid proxy is outstanding, the powers of the proxy holder are suspended if the maker is present at a meeting of the members and elects to vote in person;
   4. If the proxy for the same member confers authority upon two or more persons and does not otherwise provide, a majority of such persons present at the meeting, or if only one is present, then that one, may exercise all the powers conferred by the proxy; but if the proxy holders present at the meeting are divided as to the right and manner of voting in any particular case and there is no majority, the vote of the member granting the proxy shall be prorated;
   5. If the proxy expressly provides, any proxy holder may appoint in writing a substitute to act in his place;
   6. A member shall not sell his vote or issue a proxy to vote to any person for any sum of money or anything of value. Any proxy issued in exchange for money or anything of value shall be void.
2. If proxy voting is authorized in the articles of incorporation or bylaws of the electric membership corporation, attendance at a members’ meeting by a proxy holder authorized to vote for a member shall be deemed to be attendance by such member for purposes of determining whether a quorum is present and shall otherwise be considered personal attendance by such member.

History. Ga. L. 1937, p. 644, § 9; Code 1933, § 34C-504, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-269. Dissenters’ rights.

No member of an electric membership corporation shall, by dissenting from any merger or consolidation to which the electric membership corporation of which he is a member is a party or otherwise, any sale of all or substantially all the assets of such electric membership corporation, or any amendment of such electric membership corporation’s articles of incorporation, have the right to receive any consideration for his membership interest except as provided in the plan of merger or consolidation, the terms of sale, or the amendment of the articles of incorporation.

History. Code 1933, § 34C-1803, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-270. Credentials and elections committee.

1. The bylaws of an electric membership corporation may provide for the appointment of a credentials and elections committee composed of members who are not officers or directors of the electric membership corporation or candidates for such positions. This committee shall be responsible for the counting of all ballots or votes cast and for ruling on the effect of any ballots or votes irregularly marked or cast and on all other questions that may arise relating to member voting and the election of directors, including, but not limited to, the validity of petitions of nomination or qualification of candidates and the regularity of the nomination and election of directors. The procedures for the appointment and qualification of the members of such committee shall be as provided in the bylaws authorizing and establishing such committee. Any committee member related within the third degree by affinity or consanguinity, computed according to the civil law, to any candidate for director shall refrain from participating in any deliberation or vote of the committee concerning such candidate.
2. On request of the person presiding at the meeting of the members or on the request of any member entitled to vote thereat, such committee shall make a report in writing of any challenge, question, count, or matter determined by the committee and shall execute a certificate of any fact found by them. Any such report or certificate made by them shall be prima-facie evidence of the facts stated and of the vote as certified by them.

History. Code 1933, § 34C-506, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-271. Maintenance of books and records of account; inspection of books and records by members; preparation of annual financial statements.

1. Each electric membership corporation shall keep correct and complete books and records of account, shall keep minutes of the proceedings of its members and board of directors, and shall keep at its registered office or principal place of business a record of its members, giving the names and addresses of all members and the number of members.
2. Subject to the limitations set forth in this Code section and in other applicable laws, any person who is a member of the electric membership corporation in good standing shall, upon written demand stating the purpose thereof and the books and records sought to be examined, have the right to examine, in person or by agent or attorney, at any reasonable time or times, for any proper purpose, its books and records and, at his own expense, may make extracts therefrom. Any such inspection, however, may be denied or limited upon one or more of the following grounds:
   1. The member refuses to warrant and furnish to the electric membership corporation an affidavit that such inspection is desired for a purpose reasonably related to the business of the electric membership corporation;
   2. The inspection seeks information the release of which would unduly infringe upon or invade the privacy of any person;
   3. The inspection is sought for a dishonest purpose or to gratify mere curiosity, or is otherwise inimical to the lawful interest of the electric membership corporation or is not reasonably germane to the interest of the member as such;
   4. The books and records sought to be inspected deal with trade secrets or information which is privileged, confidential, or proprietary; or
   5. The member refuses to warrant and furnish an affidavit that he has not, within the five years preceding the date of the affidavit, sold or offered for sale and does not now intend to sell or offer to sell any list of members of the electric membership corporation or of any other electric membership corporation, or any list of shareholders of a corporation, and that he has not, within such five-year period, aided or abetted and does not now intend to aid or abet any other person in procuring any list of members or shareholders for such purpose.
3. If the electric membership corporation or an officer or agent of the electric membership corporation refuses to permit the inspection authorized by subsection (b) of this Code section, the member demanding inspection may apply to the superior court of the county in which the electric membership corporation’s registered office is located, upon such notice as the court may require, for an order directing the electric membership corporation or its officers or agents to show cause why an order should not be granted permitting such inspection by the applicant. The court shall hear the parties summarily, by affidavit or otherwise; and, if the applicant establishes that he is qualified and is entitled to such inspection, the court shall grant an order permitting such inspection, subject to any limitations which the court may prescribe, and shall grant such other relief, including costs and reasonable attorney’s fees, as the court may deem just and proper. The court may deny or restrict inspection if it finds that the member has improperly used information secured through any prior examination of the books and records of account, or minutes or records of members of such electric membership corporation or of any other electric membership corporation, or that any other grounds, as set forth above, exist for denying or restricting such inspection.
4. Not later than four months after the close of each fiscal year, and in any case prior to the annual meeting of members, each electric membership corporation shall prepare:
   1. A balance sheet or comparable financial statement showing in reasonable detail the financial condition of the electric membership corporation as of the close of its fiscal year; and
   2. A profit and loss statement or comparable financial statement showing the results of its operation during the fiscal year.
5. Upon written request, an electric membership corporation promptly shall mail to any member of record a copy of the most recent such balance sheet and profit and loss statement or comparable statement.

History. Code 1933, § 34C-510, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-272. Derivative actions by members.

1. A derivative action may be brought by a member in the right of the electric membership corporation to procure a judgment in its favor against directors, officers, or other representatives of the electric membership corporation or members or third parties, or any combination thereof, whenever the electric membership corporation has a claim or cause of action which the representatives of the electric membership corporation, in violation of their duties, have failed to enforce, including a claim or cause of action against such representatives for their failure in this respect. However, a derivative action may not be brought until the expiration of 30 days after a member has delivered written demand upon the directors, officers, or other representatives of the electric membership corporation who are alleged to have failed to enforce such cause of action, setting forth the claim or cause of action which is sought to be enforced and the basis therefor.
2. In a derivative action brought by one or more members in the right of an electric membership corporation to procure a judgment in favor of the electric membership corporation, the complaint shall be verified and shall allege that the plaintiff is a member at the time of bringing the action. It shall further allege that the plaintiff was a member at the time of the transaction of which he complained and that the demand required by subsection (a) of this Code section has been properly made.
3. Such action shall not be discontinued, compromised, or settled without the approval of the court having jurisdiction of the action. If the court determines that the interest of the members will be substantially affected by such discontinuance, compromise, or settlement, the court shall direct that notice, by publication or otherwise, of the action and the proposed discontinuance, compromise, or settlement thereof be given to the members. If notice is directed to be given, the court may determine which one or more of the parties to the action shall bear the expense of giving the same in such amount as the court shall determine and find to be reasonable in the circumstances.
4. If such action is successful in whole or in part or if anything is received by the plaintiff or plaintiffs as the result of the judgment, compromise, or settlement thereof, the court may award the plaintiff or plaintiffs reasonable expenses, including reasonable fees of attorneys, and shall direct him or them to account to the electric membership corporation for the remainder of the proceeds so received by him or them.
5. In any such action instituted after July 1, 1981, the court having jurisdiction, upon final judgment and the finding that the action was brought without reasonable cause, may require the plaintiff or plaintiffs to pay the parties named as defendants the reasonable expenses, including fees of attorneys, incurred by them in defense of such action.

History. Code 1933, § 34C-512, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-290. Management of business and affairs of electric membership corporation by board of directors; knowledge of limitations on directors’ authority required; qualifications; compensation and reimbursement for expenses.

1. Subject to the provisions of the articles of incorporation or the bylaws, the business and affairs of an electric membership corporation shall be managed by a board of directors.
2. No limitation upon the authority which the directors would have in the absence of such limitation, whether contained in the articles of incorporation, bylaws, or otherwise, shall be effective against persons, other than members and directors, who are without actual knowledge of such limitation.
3. Directors shall be natural persons of the age of 18 years or over. The articles of incorporation or bylaws may prescribe additional qualifications for directors.
4. The compensation, if any, of directors for their services as such shall be on a per diem basis and, unless otherwise provided in the bylaws, shall be fixed by the board of directors. Directors also shall be entitled to reimbursement of expenses actually and necessarily incurred by them in the performance of their duties.

History. Ga. L. 1937, p. 644, § 11; Ga. L. 1950, p. 233, § 1; Ga. L. 1975, p. 783, § 1; Code 1933, § 34C-601, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-291. Number of directors; statement of names and addresses of initial directors in articles of incorporation; duration of director’s service in office.

1. The number of directors of an electric membership corporation shall not be less than three. Subject to such limitation, the number of directors shall be fixed by the bylaws or a procedure set forth in the bylaws, except that the number constituting the initial board of directors shall be fixed by the articles of incorporation.
2. The number of directors may be increased or decreased from time to time by amendment to the bylaws or by other procedure set forth in the bylaws; but, unless otherwise provided in the bylaws, no decrease shall have the effect of shortening the term of any incumbent director. In the absence of a bylaw fixing the number of directors or establishing the number of directors by a procedure set forth in the bylaws, the number shall be the same as that stated in the articles of incorporation.
3. The names and addresses of the members of the initial board of directors shall be stated in the articles of incorporation. Each such person shall hold office until his successor shall have been elected and qualified or until his earlier resignation, removal from office, or death.
4. At the first annual meeting of members and at each annual meeting thereafter, the members shall elect directors to hold office until the next succeeding annual meeting, except in case of the classification of directors by staggered term as permitted by Code Section 46-3-293. Each director shall hold office for the term for which he is elected and until his successor shall have been elected and qualified or until his earlier resignation, removal from office, or death.

History. Ga. L. 1937, p. 644, § 11; Ga. L. 1950, p. 233, § 1; Ga. L. 1975, p. 783, § 1; Code 1933, § 34C-602, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-292. Provisional director.

1. If the directors of an electric membership corporation are deadlocked in the management of the corporate affairs and if injury to the electric membership corporation is being suffered or is threatened by reason thereof, the superior court of the county where the registered office of the electric membership corporation is located may appoint a provisional director pursuant to this Code section, notwithstanding any provisions of the articles of incorporation or bylaws of the electric membership corporation to the contrary and whether or not an action is pending for an involuntary dissolution of the electric membership corporation.
2. Action for such appointment may be filed by one-half of the directors or by not less than 25 members, except that, if the electric membership corporation has less than 50 members, action for such appointment may be filed by not less than 25 percent of the members. Notice of such action shall be served upon the directors, other than those who have filed the action, and upon the electric membership corporation in the manner provided by law for service of a summons and complaint; and a hearing shall be held not less than ten days after such service is effected. At such hearing all interested persons shall be given an opportunity to be heard.
3. The provisional director shall be an impartial person who is neither a member nor a creditor of the electric membership corporation nor related by consanguinity or affinity within the third degree, as computed according to the civil law, to any of the other directors of the electric membership corporation or to any judge of the court by which he is appointed. The provisional director shall have all the rights and powers of a director and shall be entitled to notice of the meetings of the board of directors and to vote at such meetings until he is removed by order of the court or by vote of a majority of the members present and voting at a meeting of members. The provisional director shall be entitled to receive such compensation as may be agreed upon between him and the electric membership corporation; and in the absence of such agreement he shall be entitled to such compensation as shall be fixed by the court.

History. Code 1933, § 34C-603, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-293. Classification of directors; division of service territory into districts.

1. The articles of incorporation or a bylaw adopted by the members may provide that the directors be divided into either two or three classes, each class to be as nearly equal in number as possible, the term of office of directors of the first class to expire at the first annual meeting of members after their election, that of the second class to expire at the second annual meeting after their election, and that of the third class, if any, to expire at the third annual meeting after their election.
2. At each annual meeting after such classification, the number of directors equal to the number of the class whose term expires at the time of such meeting shall be elected to hold office until the second succeeding annual meeting, if there are two classes, or until the third succeeding annual meeting, if there are three classes. No classification of directors shall be effective prior to the first annual meeting of members.
3. If directors are classified and the number of directors is thereafter changed, any increase or decrease in the number of directors shall be so apportioned among the classes as to make all classes as nearly equal in number as possible. When the number of directors is increased and any newly created directorships are filled by the board, there shall be no classification of the additional directors until the next election of directors by the members.
4. Electric membership corporations having a lawfully classified board of directors when this article goes into effect may continue their existing classification even though not conforming to this Code section.
5. The articles of incorporation or the bylaws may provide for the division of the territory served or to be served by an electric membership corporation into two or more districts for any purpose, including, without limitation, the nomination and election of directors. The articles of incorporation or bylaws shall prescribe the boundaries of the districts, or the manner of establishing such boundaries of the districts, and the manner of changing such boundaries and the manner in which such districts shall function.

History. Ga. L. 1937, p. 644, § 11; Ga. L. 1950, p. 233, § 1; Code 1933, § 34A-114.1, enacted by Ga. L. 1950, p. 233, § 2; Code 1933, § 34C-604, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-294. Vacancies on board of directors generally.

Unless the articles of incorporation or bylaws otherwise provide:

1. Except as provided in paragraphs (2) and (3) of this Code section, any vacancy occurring in the board of directors may be filled by the affirmative vote of a majority of the remaining directors, though less than a quorum of the board of directors, or by the sole remaining director, as the case may be, or, if the vacancy is not so filled or if no director remains, by the members;
2. If a vacancy occurs with respect to a director elected by members from a particular district pursuant to subsection (e) of Code Section 46-3-293, the vacancy may be filled by the remaining director or directors elected by the members from that district or, if no such director remains, by the other remaining directors or by the members in accordance with paragraph (1) of this Code section;
3. Any directorship to be filled by reason of the removal of a director or directors, as provided in Code Section 46-3-295, shall be filled by the members or, if authorized by the members, by the remaining director or directors as provided in paragraph (1) of this Code section;
4. A director elected or appointed to fill a vacancy shall be elected or appointed for the unexpired term of his predecessor in office. Any directorship to be filled by reason of an increase in the number of directors may be filled by the board of directors, but only for a term of office continuing until the next election of directors by the members and the election and qualification of his successor;
5. A director who resigns may postpone the effectiveness of his resignation to a future date or upon the occurrence of a future event specified in a written tender of resignation. A vacancy shall be deemed to exist at the time of such tender; and the board of directors or the members may then or thereafter elect or appoint a successor to take office when the resignation, by its terms, becomes effective.

History. Code 1933, § 34C-605, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-295. Removal of directors.

1. Unless otherwise provided in the bylaws, at any meeting of members with respect to which notice of such purpose has been given, the entire board of directors or any individual director may be removed, with or without cause, by the affirmative vote of a majority of the members of the electric membership corporation.
2. Whenever the members from a particular district are entitled to elect one or more directors pursuant to subsection (e) of Code Section 46-3-293, this Code section shall apply, in respect of the removal of the director or directors so elected, to the vote of the members from that district and not to the vote of the members as a whole.
3. If any or all directors are removed, new directors may be elected at the same meeting.

History. Code 1933, § 34C-606, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-296. Quorum of directors; action by majority vote; conducting of meetings of board or committees by conference calls.

1. Unless the articles of incorporation or the bylaws provide that a different number shall constitute a quorum, a majority of the number of directors fixed by the bylaws or fixed by the procedure set forth in the bylaws, or, in the absence of such bylaw provisions, then a majority of the number stated in the articles of incorporation, shall constitute a quorum for the transaction of business. In no case shall less than one-third of the total number of directors nor less than two directors constitute a quorum.
2. The vote of a majority of the directors present and voting at the time of the vote, if a quorum is present at such time, shall be the act of the board of directors unless the vote of a greater number is required by the articles of incorporation or the bylaws.
3. Unless the articles of incorporation or bylaws otherwise provide, members of the board of directors or any committee designated by such board may participate in a meeting of such board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this subsection shall constitute presence in person at such meeting.

History. Ga. L. 1937, p. 644, § 11; Ga. L. 1950, p. 233, § 1; Ga. L. 1975, p. 783, § 1; Code 1933, § 34C-607, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-297. Executive committee and other committees.

1. Unless prohibited by the articles of incorporation or the bylaws, the board of directors, by resolution adopted by a majority of the full board of directors, may designate from among its members an executive committee and one or more other committees, each consisting of two or more directors and each of which, to the extent provided in such resolution or in the articles of incorporation or the bylaws of the electric membership corporation, shall have and may exercise all the authority of the board of directors; but no such committee shall have the authority of the board of directors in reference to:
   1. Amending the articles of incorporation or the bylaws of the electric membership corporation;
   2. Adopting a plan of merger or consolidation;
   3. The sale, lease, exchange, or other disposition of all or substantially all the property and assets of the electric membership corporation; or
   4. A voluntary dissolution of the electric membership corporation or a revocation thereof.
2. The board, by resolution adopted in accordance with subsection (a) of this Code section, may designate one or more directors as alternate members of any such committee, which directors may act in the place and stead of any absent member or members at any meeting of such committee.
3. Unless otherwise provided in the articles of incorporation or the bylaws or unless ordered by the board of directors, any such committee shall act by a majority of its members.
4. The designation of any such committee and the delegation thereto of authority shall not operate to relieve the board of directors or any member thereof of any responsibility imposed by law.
5. Nothing in this Code section shall be construed to invalidate any executive committee or other committee validly created under the electric membership corporation law of this state existing on July 1, 1981.

History. Ga. L. 1937, p. 644, § 12; Code 1933, § 34C-608, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-298. Place, time, and notice of directors’ meetings; waiver of notice; adjournment of meetings; notice of adjournment; manner of calling meetings.

1. Unless the articles of incorporation or bylaws otherwise provide, meetings of the board of directors, whether regular or special, may be held either within or outside of this state. The time and place for holding meetings of the board of directors may be fixed by or under the bylaws or, if not so fixed, by the board.
2. Regular meetings of the board of directors may be held with or without notice, as prescribed in the articles of incorporation or bylaws or in a standing resolution of the board of directors. Special meetings of the board of directors may be held upon such notice as is prescribed in the articles of incorporation or the bylaws. Unless otherwise prescribed in the articles of incorporation or bylaws, written notice of the time and place of special meetings of the board of directors shall be given to each director either by personal delivery or by mail, telegram, or cablegram at least two days before the meeting.
3. Notice of a meeting of the board of directors need not be given to any director who signs a waiver of notice either before or after the meeting. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting and waiver of any and all objections to the place of the meeting, the time of the meeting, or the manner in which it has been called or convened, except when a director states, at the beginning of the meeting, any such objection or objections to the transaction of business.
4. Neither the business to be transacted at nor the purpose of any regular or special meeting of the board of directors need be specified in the notice or waiver of notice of such meeting unless required by the articles of incorporation or bylaws.
5. A majority of the directors present, whether or not a quorum exists, may adjourn any meeting of the board of directors to another time and place. Unless the articles of incorporation or bylaws otherwise provide, notice of any such adjourned meeting shall be given to the directors who were not present at the time of the adjournment and, unless the time and place of the adjourned meeting are announced at the time of the adjournment, to the other directors.
6. Meetings of the board of directors may be called by the chairman of the board, by the president, by 25 percent of the directors then in office, or by any other person or persons authorized by the articles of incorporation or bylaws.

History. Code 1933, § 34C-609, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1982, p. 3, § 46.

46-3-299. Action by directors without a meeting.

Unless otherwise provided by the articles of incorporation or bylaws, any action required by this article to be taken at a meeting of the directors of an electric membership corporation or any action which may be taken at a meeting of the directors or of a committee may be taken without a meeting if written consent setting forth the action so taken is signed by all the directors or by all of the members of the committee, as the case may be, and is filed with the minutes of the proceedings of the board or the committee. Such consent shall have the same force and effect as a unanimous vote and may be stated as such in any articles or document filed with the Secretary of State under this article.

History. Code 1933, § 34C-610, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-300. Dissent by a director.

A director of an electric membership corporation who is present at a meeting of the electric membership corporation’s board of directors at which action on any corporate matter is taken shall be presumed to have assented to the action unless:

1. He votes against such action if a vote is taken; and
2. His dissent is entered in the minutes of the meeting, or he files his written dissent to such action with the person acting as secretary of the meeting before the adjournment thereof, or he forwards such dissent by registered or certified mail or statutory overnight delivery to the secretary of the electric membership corporation within 48 hours after the adjournment of the meeting.

History. Code 1933, § 34C-615, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2000, p. 1589, § 3.

Editor’s notes.

Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the amendment to paragraph (2) is applicable with respect to notices delivered on or after July 1, 2000.

46-3-301. Election or appointment of officers generally.

1. The board of directors shall elect or appoint a president, a secretary, and a treasurer. Other officers may be elected or appointed either by the board or as may be provided in the articles of incorporation or bylaws. Any two or more offices may be held by the same person, except the offices of president and secretary.
2. The articles of incorporation or bylaws may provide that all officers or specified officers shall be elected by the members instead of by the board.
3. Unless otherwise provided in the articles of incorporation, bylaws, or resolution of the board, all officers shall be elected or appointed for a term of office running until the meeting of the board following the next annual meeting of members or, in the case of officers elected by the members, until the next annual meeting of members.
4. Each officer shall hold office for the term for which he is elected or appointed and until his successor has been elected or appointed and has qualified, or until his earlier resignation, removal from office, or death.
5. All officers and agents of an electric membership corporation, as between themselves and the electric membership corporation, shall have such authority and perform such duties in the management of the electric membership corporation as may be provided in the articles of incorporation or bylaws or as may be determined by action of the board not inconsistent with the articles of incorporation and bylaws.
6. When the directors are deadlocked, the president shall have authority to institute or defend legal proceedings other than an action seeking appointment of a provisional director.
7. No electric membership corporation shall be relieved of its liability to any third person for the acts of its officers by reason of any limitations upon the power of the officer which are not known to such third person, whether such limitations are contained in the articles of incorporation, the bylaws, or elsewhere.

History. Ga. L. 1937, p. 644, § 11; Ga. L. 1950, p. 233, § 1; Ga. L. 1975, p. 783, § 1; Code 1933, § 34C-611, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-302. Removal of officers; filling of vacancies.

1. Any officer or agent elected or appointed by the board of directors may be removed by the board whenever in its judgment the best interests of the electric membership corporation will be served thereby.
2. An officer or agent elected by the members may be removed only by vote of the members unless the members shall have authorized the board to remove such officer or agent; but the authority of such officer or agent to act for the electric membership corporation may be suspended by the board for cause.
3. Any officer or agent appointed otherwise than by the board of directors or by the members may be removed with or without cause at any time by any officer having authority to appoint, except as may be otherwise provided in the articles of incorporation or bylaws, whenever such officer in his absolute discretion shall consider that the best interests of the electric membership corporation will be served thereby.
4. Removal as provided in this Code section shall be without prejudice to the contract rights, if any, of the person removed. Election or appointment of an officer or agent shall not of itself create contract rights.
5. Any vacancy, however occurring, in any office may be filled by the board of directors unless the articles of incorporation or bylaws shall have expressly reserved such power to the members.

History. Code 1933, § 34C-612, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-303. Duty of directors and officers to act in good faith; reliance on financial information prepared by others; presumption of good faith.

1. A director shall perform his or her duties as a director in good faith and with the degree of care an ordinarily prudent person in a like position would exercise under similar circumstances.
2. In performing his or her duties a director may rely upon:
   1. Officers, employees, or agents of the electric membership corporation whom the director reasonably believed to be reliable and competent in the functions performed; and
   2. Information, data, opinions, reports, or statements provided by officers, employees, or agents of the electric membership corporation or by legal counsel, public accountants, investment bankers, or other persons as to matters involving the skills, expertise, or knowledge reasonably believed to be reliable and within such person’s professional or expert competence.
3. There shall be a presumption that the process a director followed in arriving at decisions was done in good faith and that such director exercised ordinary care; provided, however, that this presumption may be rebutted by evidence that such process constitutes gross negligence by being a gross deviation from the standard of care of a director in a like position under similar circumstances.
4. Nothing contained in this Code section shall:
   1. In any instance when fairness is at issue, such as consideration of the fairness of a transaction to the electric membership corporation as evaluated under paragraph (3) of subsection (a) of Code Section 46-3-305, alter the burden of proving the fact or lack of fairness otherwise applicable;
   2. Alter the fact or lack of liability of a director under the Official Code of Georgia Annotated, including the governance of the consequences of a conflicting interest transaction under Code Section 46-3-305;
   3. Affect any rights to which the electric membership corporation or its members may be entitled under another law of this state or of the United States; or
   4. Deprive a director of the applicability, effect, or protection of the business judgment rule.

History. Code 1933, § 34C-613, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2020, p. 85, § 3/SB 373.

The 2020 amendment, effective July 1, 2020, rewrote this Code section, which read: “Directors and officers shall discharge the duties of their respective positions in good faith and with that degree of diligence, care, and skill which ordinarily prudent men would exercise under similar circumstances in like positions. In discharging their duties, directors and officers, when acting in good faith, may rely upon financial information concerning the electric membership corporation when such information is represented to them by the president of the electric membership corporation or by the employee of the electric membership corporation having charge of its books of account, or in the form of a written report by an independent or certified public accountant or firm of such accountants, to be correct and to reflect fairly the financial condition of the electric membership corporation.”

Editor’s notes.

Ga. L. 2020, p. 85, § 6/SB 373, not codified by the General Assembly, provides that: “This Act shall apply only to causes of action arising on or after July 1, 2020.”

46-3-303.1. Standard of care for officers in discharge of duties; reasonable reliances.

1. An officer shall perform his or her duties as an officer in good faith and with the degree of care an ordinarily prudent person in a like position would exercise under similar circumstances.
2. In performing his or her duties, an officer may rely upon:
   1. Officers, employees, or agents of the electric membership corporation whom the officer reasonably believed to be reliable and competent in the functions performed; and
   2. Information, data, opinions, reports, or statements provided by officers, employees, or agents of the electric membership corporation or by legal counsel, public accountants, investment bankers, or other persons as to matters involving the skills, expertise, or knowledge reasonably believed to be reliable and within such person’s professional or expert competence.
3. There shall be a presumption that the process an officer followed in arriving at decisions was done in good faith and that such officer exercised ordinary care; provided, however, that this presumption may be rebutted by evidence that such process constitutes gross negligence by being a gross deviation from the standard of care of an officer in a like position under similar circumstances.
4. Nothing contained in this Code section shall:
   1. In any instance when fairness is at issue, such as consideration of the fairness of a transaction to the electric membership corporation as evaluated under paragraph (3) of subsection (a) of Code Section 46-3-305, alter the burden of proving the fact or lack of fairness otherwise applicable;
   2. Alter the fact or lack of liability of an officer under the Official Code of Georgia Annotated, including the governance of the consequences of a conflicting interest transaction under Code Section 46-3-305;
   3. Affect any rights to which the electric membership corporation or its members may be entitled under another law of this state or of the United States; or
   4. Deprive an officer of the applicability, effect, or protection of the business judgment rule.

History. Code 1981, § 46-3-303.1 , enacted by Ga. L. 1988, p. 1451, § 1; Ga. L. 2020, p. 85, § 4/SB 373.

The 2020 amendment, effective July 1, 2020, rewrote this Code section, which read: “(a)(1) A director shall discharge his duties as director, including his duties as a member of a committee:

“(A) In good faith; and

“(B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances.

“(2) In discharging his duties, a director is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

“(A) One or more officers or employees of the electric membership corporation whom the director reasonably believes to be reliable and competent in the matters presented;

“(B) Legal counsel, public accountants, investment bankers, or other persons as to matters the director reasonably believes are within the person’s professional or expert competence; or

“(C) A committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.

“(3) A director is not acting in good faith if he has knowledge concerning the matter in question that makes unwarranted the reliance otherwise permitted by paragraph (2) of this subsection.

“(4) A director is not liable for any action taken as a director or any failure to take any action if he performed the duties of his office in compliance with this subsection.

“(b)(1) An officer with discretionary authority shall discharge his duties under that authority:

“(A) In good faith; and

“(B) With the care an ordinarily prudent person in a like position would exercise under similar circumstances.

“(C) A committee of the board of directors of which he is not a member if the director reasonably believes the committee merits confidence.

“(2) In discharging his duties, an officer is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:

“(A) One or more officers or employees of the electric membership corporation whom the officer reasonably believes to be reliable and competent in the matters presented; or

“(B) Legal counsel, public accountants, investment bankers, or other persons as to matters the officer reasonably believes are within the person’s professional or expert competence.

“(3) An officer is not acting in good faith if he has knowledge concerning the matter in question that makes unwarranted the reliance otherwise permitted by paragraph (2) of this subsection.

“(4) An officer is not liable for any action as an officer or any failure to take any action if he performed the duties of his office in compliance with this subsection.

“(c) The general standards of care and conduct for actions of directors or officers of electric membership corporations, which actions occur on July 1, 1988, shall be as provided in this Code section and not as provided in Code Section 46-3-303.

“(d) This Code section shall not relieve any director or officer from liability for the payment of taxes.”

Editor’s notes.

Ga. L. 2020, p. 85, § 6/SB 373, not codified by the General Assembly, provides that: “This Act shall apply only to causes of action arising on or after July 1, 2020.”

46-3-304. Actions against directors and officers.

1. An action may be brought by any of the persons named in subsection (b) of this Code section against one or more directors or officers of an electric membership corporation to procure for the benefit of the electric membership corporation a judgment for the following relief:
   1. To compel the defendant to account for his official conduct, or any other relief called for by his official conduct, in the following cases:
      1. The neglect of, failure to perform, or other violation of his duties to the electric membership corporation, or violations of his duties in regard to disposition of corporate assets committed to his charge;
      2. The acquisition by him, transfer to others, loss, or waste of corporate assets due to any neglect of, failure to perform, or other violation of his duties; or
      3. The appropriation, in violation of his duties, of any business opportunity of the electric membership corporation;
   2. To enjoin a proposed unlawful conveyance, assignment, or transfer of corporate assets or other unlawful corporate transaction, where there is sufficient evidence that it will be made;
   3. To set aside an unlawful conveyance, assignment, or transfer of corporate assets, where the transferee knew of its unlawfulness and is made a party to the action.
2. An action may be brought for the relief provided in this Code section by the electric membership corporation, or a receiver, trustee in bankruptcy, officer, director, or judgment creditor thereof, or by a member in accordance with Code Section 46-3-272, relating to derivative actions.
3. No action shall be brought for the relief provided in this Code section more than four years from the time the cause of action accrued.
4. This Code section shall not limit any liability otherwise imposed by law upon any director or officer or any third party.

History. Code 1933, § 34C-614, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1984, p. 22, § 46.

46-3-305. Interested directors and officers.

1. No contract or transaction between an electric membership corporation and one or more of its directors or officers, or between an electric membership corporation and any other corporation, partnership, association, or other organization in which one or more of its directors or officers are directors or officers or have a financial interest, shall give rise to an award of damages or other sanctions or be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the board of directors or committee thereof which authorizes the contract or transaction, or solely because any of their votes are counted for such purpose, if:
   1. The material facts as to his or her interest and as to the contract or transaction are disclosed or are known to the board of directors or the committee, and the board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors are less than a quorum; or
   2. The material facts as to his or her interest and as to the contract or transaction are disclosed or are known to the members, and the contract or transaction is specifically approved or ratified in good faith by vote of such members; or
   3. The contract or transaction is fair as to the electric membership corporation as of the time it is authorized, approved, or ratified by the board, a committee thereof, or the members.
2. Interested directors may be counted in determining the presence of a quorum at a meeting of the board or committee thereof which authorizes the contract or transaction.

History. Code 1933, § 34C-616, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2020, p. 85, § 5/SB 373.

The 2020 amendment, effective July 1, 2020, in the introductory text of subsection (a), inserted “give rise to an award of damages or other sanctions or” and substituted “any of” for “his or”; and inserted “or her” near the beginning of paragraphs (a)(1) and (a)(2).

Editor’s notes.

Ga. L. 2020, p. 85, § 6/SB 373, not codified by the General Assembly, provides that: “This Act shall apply only to causes of action arising on or after July 1, 2020.”

46-3-306. Indemnification of officers, directors, employees, and agents; purchase and maintenance of liability insurance; notice to members of payment of indemnification.

1. As used in this Code section, the term “the electric membership corporation” shall include, in addition to the surviving or new electric membership corporation, any merging or consolidating electric membership corporation, including any merging or consolidating electric membership corporation of a merging or consolidating electric membership corporation, absorbed in a merger or consolidation so that any person who is or was a director, officer, employee, or agent of such merging or consolidating electric membership corporation, or is or was serving at the request of such merging or consolidating electric membership corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall stand in the same position under this Code section with respect to the resulting or surviving electric membership corporation as he would if he had served the resulting or surviving electric membership corporation in the same capacity, provided that no indemnification under subsections (b) and (c) of this Code section which are permitted by this subsection shall be mandatory under this subsection or any bylaw of the surviving or new electric membership corporation without the approval of such indemnification by the board of directors or members of the surviving or new electric membership corporation, in the manner provided in paragraphs (1) and (3) of subsection (e) of this Code section.
2. An electric membership corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of the electric membership corporation), by reason of the fact that he is or was a director, officer, employee, or agent of the electric membership corporation, or is or was serving at the request of the electric membership corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorney’s fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred by him in connection with such action or proceeding if he acted in a manner he reasonably believed to be in or not opposed to the best interests of the electric membership corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action or proceeding by judgment, order, settlement, or conviction, or upon a plea of nolo contendere or its equivalent, shall not of itself create a presumption that the person did not act in a manner which he reasonably believed to be in or not opposed to the best interests of the electric membership corporation and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.
3. An electric membership corporation shall have the power to indemnify any person who was or is a party or who is threatened to be made a party to any threatened, pending, or completed action or suit by, or in the right of, the electric membership corporation to procure a judgment in its favor, by reason of the fact he is or was a director, officer, employee, or agent of the electric membership corporation or is or was serving at the request of the electric membership corporation as a director, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorney’s fees, actually and reasonably incurred by him in connection with the defense or settlement of such action or suit, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the electric membership corporation; except that no indemnification shall be made in respect to any claim, issue, or matter as to which such person shall have been adjudged to be liable to the electric membership corporation, unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem proper.
4. To the extent that a director, officer, employee, or agent of an electric membership corporation has been successful, on the merits or otherwise, in defense of any action, suit, or proceeding referred to in subsections (b) and (c) of this Code section or in defense of any claim, issue, or matter therein, he shall be indemnified against expenses, including attorney’s fees, actually and reasonably incurred by him in connection therewith.
5. Any indemnification under subsections (b) and (c) of this Code section, unless ordered by a court, shall be made by the electric membership corporation only as authorized in the specific case, upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in subsections (b) and (c) of this Code section. Such determination shall be made:
   1. By the board of directors by a majority vote of a quorum consisting of directors who were not parties to such action, suit, or proceeding;
   2. If such a quorum is not obtainable or, even if obtainable, if a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or
   3. By the affirmative vote of the members present and voting at the meeting at which such determination is made.
6. Expenses incurred in defending a civil or criminal action, suit, or proceeding may be paid by the electric membership corporation in advance of the final disposition of such action, suit, or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee, or agent to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by the electric membership corporation as authorized in this Code section.
7. The indemnification and advancement of expenses provided by or granted pursuant to this Code section shall not be deemed exclusive of any other rights, in respect to indemnification or otherwise, to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, resolution, or agreement, either specifically or in general terms approved by the affirmative vote of a majority of the members entitled to vote thereon, taken at a meeting, the notice of which specified that such bylaw, resolution, or agreement would be placed before the members, both as to action by a director, officer, employee, or agent in his official capacity and as to action in another capacity while holding such office or position, except that no such other rights, in respect to indemnification or otherwise, may be provided or granted to a director, officer, employee, or agent pursuant to this subsection by an electric membership corporation with respect to the liabilities described in divisions (b)(3)(A)(i) through (b)(3)(A)(iii) of Code Section 46-3-321.
8. An electric membership corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the electric membership corporation or who is or was serving at the request of the electric membership corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the electric membership corporation would have the power to indemnify him against such liability under this Code section.
9. If any expenses or other amounts are paid by way of indemnification, otherwise than by court order or action by the members or by an insurance carrier pursuant to insurance maintained by the electric membership corporation, the electric membership corporation, not later than the next annual meeting of members, unless such meeting is held within three months from the date of such payment, and in any event, within 15 months from the date of such payment, shall send to its members who are entitled to vote for the election of directors a statement specifying the persons paid, the amounts paid, and the nature and status at the time of such payment of the litigation or threatened litigation. Such statement shall be provided to the members in the manner provided in subsection (a) of Code Section 46-3-263 for giving notice of members’ meetings.
10. The indemnification and advancement of expenses provided by or granted pursuant to this Code section shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of such a person.

History. Code 1933, § 34C-617, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1988, p. 1451, § 2; Ga. L. 1989, p. 14, § 46.

46-3-320. Number of incorporators; age requirement.

One or more persons may act as incorporator or incorporators of an electric membership corporation to be formed under this article. Any natural person acting as incorporator shall be at least 18 years of age.

History. Ga. L. 1937, p. 644, § 5; Ga. L. 1980, p. 72, § 2; Code 1933, § 34C-701, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-321. Signing of articles of incorporation; contents of articles of incorporation.

1. The articles of incorporation shall be signed by the incorporator or incorporators or his or their attorney and shall set forth:
   1. The name of the electric membership corporation;
   2. That the electric membership corporation is organized pursuant to this article;
   3. The period of duration, which shall be perpetual unless otherwise limited;
   4. The purpose or purposes for which the electric membership corporation is organized;
   5. The address of its initial registered office and the name of its initial registered agent at such address;
   6. The number of directors constituting the initial board of directors and the name and address of each person who is to serve as a member thereof; and
   7. The name and address of each incorporator.
2. The articles of incorporation may, as a matter of election, also set forth:
   1. Any provision, not inconsistent with law, for the regulation of the internal affairs of the electric membership corporation;
   2. Any provision which under this chapter is required or permitted to be set forth in the bylaws; any such provision set forth in the articles of incorporation need not be set forth in the bylaws; and
   3. 1. A provision eliminating or limiting the personal liability of a director to the electric membership corporation or its members for monetary damages for breach of duty of care or other duty as a director, provided that such provision shall not eliminate or limit the liability of a director:
         1. For any appropriation, in violation of his duties, of any business opportunity of the electric membership corporation;
         2. For acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; or
         3. For any transaction from which the director derived an improper personal benefit.
      2. No such provision shall eliminate or limit the liability of a director for any act or omission occurring prior to the date when such provision becomes effective.

History. Ga. L. 1937, p. 644, § 6; Ga. L. 1980, p. 72, § 3; Code 1933, § 34C-702, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1988, p. 1451, § 3.

46-3-322. Filing articles of incorporation; issuance of certificate of incorporation; forwarding of copy of certificate to clerk of superior court; rejection of articles of incorporation; publication of notice; commencement of corporate existence.

1. The incorporator or incorporators or his or their representative shall obtain from the Secretary of State a certificate which states that the name of the proposed electric membership corporation is available in accordance with Code Section 46-3-220. Such certificate shall be issued upon application to reserve the use of the proposed corporate name as provided in Code Section 46-3-221 and shall be valid for the period provided in Code Section 46-3-221, including any extension of such period granted by the Secretary of State. Upon the expiration of such period or any extension thereof, the certificate shall become void unless the electric membership corporation shall have come into existence within such time.
2. The incorporator or incorporators or his or their representative shall deliver the original articles of incorporation and two conformed copies of the articles to the Secretary of State for filing as provided in subsection (a) of Code Section 46-3-174.
3. Together with the articles of incorporation, the incorporator or incorporators or his or their representative shall deliver to the Secretary of State:
   1. A certificate issued by the Secretary of State reserving the name of the proposed electric membership corporation, as provided in subsection (a) of this Code section;
   2. Payment to the Secretary of State of the fee provided for in Code Section 46-3-501;
   3. A check, draft, or money order in the amount of $16.00, payable to the clerk of the superior court of the county where the initial registered office of the electric membership corporation is to be located, in payment of the cost of filing the articles of incorporation in that county and in payment of the fee required in civil actions and proceedings as required by Code Sections 15-6-77 and 47-14-51;
   4. A letter addressed to the publisher of a newspaper which is the official organ of the county where the initial registered office of the electric membership corporation is to be located or which is a newspaper of general circulation published within that county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation. This letter shall contain a notice to be published four times in the newspaper and shall be in substantially the following form:

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   5. A check, draft, or money order in the amount of $60.00, payable to the designated newspaper; and
   6. A consent to appointment as registered agent, as provided for in subsection (c) of Code Section 46-3-240.
4. Upon delivery of the articles of incorporation to the Secretary of State, the Secretary of State shall affix thereon the hour, day, month, and year of delivery. Not later than the close of business on the first business day following the day of delivery, the Secretary of State shall either issue a certificate of incorporation in the manner provided in this Code section or shall reject the articles in the manner provided in this Code section.
5. If the Secretary of State finds that the articles of incorporation appear to be in proper form for filing and are accompanied by the other items required by subsection (c) of this Code section, he shall, in addition to the requirements of subsection (a) of Code Section 46-3-174:
   1. Issue a certificate of incorporation in substantially the following form and attach it to one conformed copy of the articles of incorporation:

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   2. Return the certificate of incorporation with the conformed copy of the articles of incorporation attached thereto to the incorporator or incorporators or his or their representative. A copy of the certificate of incorporation shall be attached to the original articles of incorporation;
   3. Forward a conformed copy of the articles of incorporation with a copy of the certificate of incorporation attached thereto, along with the check, draft, or money order provided for in paragraph (3) of subsection (c) of this Code section, to the clerk of the superior court in the county where the initial registered office of the electric membership corporation is located, within four business days after the articles of incorporation have been delivered to the Secretary of State for filing;
   4. Mail the letter and the check, draft, or money order provided for in paragraphs (4) and (5) of subsection (c) of this Code section, with the date of incorporation inserted in the notice, to the designated newspaper within four business days after the articles of incorporation have been delivered to the Secretary of State for filing.
6. If the Secretary of State finds that the articles of incorporation do not appear to be in proper form for filing or are not accompanied by the other items required by subsection (c) of this Code section, he shall reject the articles for filing and shall immediately notify the incorporator or incorporators or his or their representative of such rejection by mailing a notice no later than the close of business on the first business day following the day of delivery of the articles of incorporation for filing. The notice shall specify the reason or reasons for rejection of the articles of incorporation; and the articles and all accompanying materials shall be returned therewith.
7. The conformed copy of the articles of incorporation, with a copy of the certificate of incorporation attached thereto, provided for in paragraph (3) of subsection (e) of this Code section shall be filed upon receipt by the clerk of the superior court of the county where the initial registered office of the electric membership corporation is to be located. Failure on the part of the Secretary of State to mail the conformed copy of the articles of incorporation or failure on the part of the clerk of the superior court to comply with this subsection shall not invalidate the issuance of the certificate of incorporation by the Secretary of State.
8. The notice provided for in paragraph (4) of subsection (c) of this Code section shall be published within ten days after receipt of the notice by the newspaper. Failure on the part of the Secretary of State to mail the notice or failure on the part of the newspaper to comply with this subsection shall not invalidate the issuance of the certificate of incorporation by the Secretary of State.
9. If the Secretary of State issues a certificate of incorporation, the corporate existence of the electric membership corporation shall begin as of the time of delivery to the Secretary of State of the articles of incorporation so certified.

(name and address of the newspaper designated by the incorporator or incorporators or his or their representative) Dear Sirs: You are requested to publish, four times, a notice in the following form: “ (name of electric membership corporation) has been duly incorporated on (month, day, and year to be inserted by the Secretary of State), by the issuance of a certificate of incorporation by the Secretary of State in accordance with the applicable provisions of Article 4 of Chapter 3 of Title 46, the ‘Georgia Electric Membership Corporation Act.’ The initial registered office of the electric membership corporation is located at (address of registered office) and its initial registered agent at such address is (name of agent).” Enclosed is a (check, draft, or money order) in the amount of $60.00 in payment of the costs of publishing this notice. Very truly yours, (Name and address of incorporator or incorporators or his or their representative)

State of Georgia Office of the Secretary of State Ex Officio Corporation Commissioner This is to certify that (the name of the electric membership corporation) has been duly incorporated under the laws of the State of Georgia on the day of , (insert date articles of incorporation are delivered for filing), by the filing of articles of incorporation in the office of the Secretary of State and the fees therefor paid, as provided by law, and that attached hereto is a true copy of the said articles of incorporation. Witness my hand and official seal, this day of , . Secretary of State Ex Officio Corporation Commissioner of the State of Georgia

History. Ga. L. 1937, p. 644, § 8; Ga. L. 1980, p. 72, § 4; Code 1933, § 34C-703, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1992, p. 6, § 46; Ga. L. 1999, p. 81, § 46.

46-3-323. Effect of issuance of certificate of incorporation.

The certificate of incorporation issued by the Secretary of State shall be conclusive evidence that the electric membership corporation has been incorporated under this article, except as against this state in a proceeding to cancel or revoke the certificate of incorporation or for involuntary dissolution of the electric membership corporation.

History. Code 1933, § 34C-704, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1992, p. 6, § 46.

46-3-324. Organization meeting of directors.

After the corporate existence has begun, an organization meeting of the board of directors named in the articles of incorporation shall be held, either within or outside of this state, at the call of any incorporator, for the purpose of adopting bylaws, electing officers, and transacting such other business as properly may come before the meeting. The incorporator or incorporators calling the meeting shall give at least three days’ notice thereof by mail to each director so named, which notice shall state the time and place of the meeting.

History. Code 1933, § 34C-705, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-325. Adoption of initial bylaws; authority to alter, amend, repeal, or adopt new bylaws; contents of bylaws generally.

1. The initial bylaws of an electric membership corporation shall be adopted by its board of directors.
2. The board of directors shall not have power to alter, amend, or repeal the bylaws or adopt new bylaws directly relating to the election of the board of directors. The board of directors shall otherwise have power to alter, amend, or repeal the bylaws or adopt new bylaws unless such power is reserved exclusively to the members by the articles of incorporation or in bylaws previously adopted by the members; but any bylaws adopted by the board of directors may be altered, amended, or repealed and new bylaws adopted by the members. The members may prescribe that any bylaw or bylaws adopted by them shall not be altered, amended, or repealed by the board of directors.
3. The bylaws may contain any provisions for the regulation and management of the affairs of the electric membership corporation not inconsistent with law or the articles of incorporation.

History. Ga. L. 1937, p. 644, § 12; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 1; Code 1933, § 34C-706, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-326. Adoption of bylaws for emergency conditions; emergency powers of board of directors generally.

1. The board of directors may adopt emergency bylaws, subject to repeal or change by action of the members, which, notwithstanding any other provision to the contrary in this article or in the articles of incorporation or bylaws, shall be operative during any emergency in the conduct of the business of the electric membership corporation resulting from an attack on the United States or on a locality in which the electric membership corporation conducts its business or customarily holds meetings of its board of directors or its members, or during any nuclear or atomic disaster, or during the existence of any catastrophe or other similar emergency condition, as a result of which a quorum of the board of directors or a standing committee thereof cannot readily be convened for action. The emergency bylaws may make any provision that may be practical and necessary for the circumstances of the emergency, including, without limitation, provisions that:
   1. A meeting of the board of directors may be called by any officer or director in such manner and under such conditions as shall be prescribed in the emergency bylaws;
   2. The director or directors in attendance at the meeting, or any greater number fixed by the emergency bylaws, shall constitute a quorum;
   3. The officers or other persons designated on a list approved by the board of directors before the emergency, all in such order or priority and subject to such conditions and for such period of time (not longer than reasonably necessary after the termination of the emergency) as may be provided in the emergency bylaws or in the resolution approving the list, shall, to the extent required to provide a quorum at any meeting of the board of directors, be deemed directors for such meeting;
   4. Any officer of the electric membership corporation shall have such emergency powers as may be prescribed in the emergency bylaws; and
   5. The board of directors may delegate any of its powers to any officer or director.
2. The board of directors, either before or during any such emergency, may provide and from time to time may modify lines of succession in the event that during such an emergency any or all officers or agents of the electric membership corporation shall for any reason be rendered incapable of discharging their duties.
3. The board of directors, either before or during any such emergency, may, effective during the emergency, change the head office or designate several alternative head offices or regional offices or authorize the officers so to do.
4. To the extent not inconsistent with any emergency bylaws so adopted, the bylaws of the electric membership corporation shall remain in effect during any such emergency; and upon the termination of the emergency, the emergency bylaws shall cease to be operative.
5. Unless otherwise provided in the emergency bylaws, notice of any meeting of the board of directors during any such emergency may be given only to such of the directors as it may be feasible to reach at the time and by such means as may be feasible at the time, including publication, radio, or television.
6. To the extent required to constitute a quorum at any meeting of the board of directors during any such emergency, the officers of the electric membership corporation who are present, unless otherwise provided in the emergency bylaws, shall be deemed, in order of rank and within the same rank in order of seniority, directors for such meeting.
7. No officer, director, agent, or employee acting in accordance with any emergency bylaws shall be liable except for willful misconduct. No officer, director, agent, or employee shall be liable for any action taken by him in good faith in such an emergency in furtherance of the ordinary business affairs of the electric membership corporation, even though such action is not authorized by the bylaws then in effect.
8. If emergency bylaws have not been adopted by an electric membership corporation, action by members, directors, officers, agents, or employees during any emergency described in subsection (a) of this Code section shall be valid if it is substantially in compliance with this Code section or if it is otherwise practical and necessary for the emergency operation and management of the business.

History. Code 1933, § 34C-707, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-340. Nonprofit operation of electric membership corporations required; rates and fees to cover costs of operation and interest payments and for maintaining reserves; bylaw provisions concerning revenues, assets, and member classification.

1. Each electric membership corporation shall be operated without profit to its members; but the rates, fees, rents, or other charges for electric energy and any other facilities, supplies, equipment, or services furnished by the electric membership corporation shall be sufficient at all times:
   1. To cover all administrative and operating expenses and the costs of purchased capacity and energy as necessary or desirable for the prudent conduct of its business, and to cover the payments of the principal of and interest on the obligations issued or assumed by the electric membership corporation in the performance of the purposes for which it was organized; and
   2. To establish and maintain reasonable reserves.
2. An electric membership corporation may also accumulate funds for future capital needs and for the purpose of establishing and maintaining a reasonable capital structure.
3. The bylaws of an electric membership corporation shall contain provisions, consistent with subsection (a) of this Code section, for accounting for, allocating, assigning and disposing of its revenues and assets and may establish classes of members for such purposes.

History. Ga. L. 1937, p. 644, §§ 12, 14; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 1; Code 1933, § 34C-801, enacted by Ga. L. 1981, p. 1587, § 1.

Code Commission notes.

Georgia Laws 1937, p. 644, contained two provisions which were designated as “Section 14,” one such provision appearing on page 653 and the other appearing on page 654. The provision appearing on page 653 is codified at this section and the provision appearing on page 654 is codified at §§ 46-3-360 , 46-3-361 .

46-3-341. Return of revenues upon death of member.

1. Unless the bylaws otherwise provide, upon the death of a member or former member who is a natural person, the board of directors shall have authority, but shall not be required, to pay revenues allocated but not previously paid to that member or former member.
2. If the member or former member dies testate, such payments shall be made to the person who is the executor of the estate of the decedent at the time of the payment.
3. If the member or former member dies intestate and the electric membership corporation is provided a copy of letters of administration for the estate of the decedent, such payments shall be made to the administrator of the estate named therein.
4. If the member or former member dies intestate and the electric membership corporation is not provided a copy of letters of administration of the estate of the deceased and such payment is $2,500.00 or less, such payment shall be made to the persons listed below and according to the priority indicated:
   1. To the surviving spouse of the decedent;
   2. If no surviving spouse, then to the surviving children of the decedent, pro rata;
   3. If no surviving children, then to the surviving mother and father of the decedent, pro rata;
   4. If no surviving parent, then to the surviving brothers and sisters of the decedent, pro rata.
5. If the member or former member dies intestate and the electric membership corporation is not provided a copy of the letters of administration and such payment is greater than $2,500.00, such payment shall be made to the person entitled thereto under the laws of descent and distribution of this state.
6. Payment to the persons listed in subsections (b) through (e) of this Code section shall operate as a complete acquittal and discharge to the electric membership corporation from any action, claim, or demand of whatever nature for the amount so paid by any heir, distributee, or creditor of the decedent or any other person. Payment to such persons is authorized to be made as provided in subsections (d) and (e) of this Code section without the administration of the estate of the decedent and without the necessity of obtaining an order that no administration is necessary.

History. Ga. L. 1971, p. 760, § 1; Code 1933, § 34C-802, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-360. Right of electric membership corporation to amend articles of incorporation.

An electric membership corporation may amend its articles of incorporation from time to time in any and in as many respects as may be desired, so long as the amendment contains only such provisions as might lawfully be contained in original articles of incorporation at the time of making such amendment.

History. Ga. L. 1937, p. 644, § 14; Ga. L. 1957, p. 604, § 3; Ga. L. 1980, p. 72, § 5; Code 1933, § 34C-901, enacted by Ga. L. 1981, p. 1587, § 1.

Code Commission notes.

Georgia Laws 1937, p. 644, contained two provisions which were designated as “Section 14,” one such provision appearing on page 653 and the other appearing on page 654. The provision appearing on page 653 is codified at § 46-3-340 and the provision appearing on page 654 is codified at this section and § 46-3-361 .

46-3-361. Procedure to amend articles of incorporation generally.

1. Before the electric membership corporation has any members, amendments to the articles of incorporation may be made:
   1. Before the organization meeting of the directors, by the incorporator or, if there is more than one incorporator, then by two-thirds of the incorporators; and
   2. At or after the organization meeting of the directors named in the articles of incorporation, by two-thirds of the directors.
2. After the electric membership corporation has members, amendments to the articles of incorporation shall be made in the following manner:
   1. The board of directors shall adopt a resolution setting forth the proposed amendment and directing that it be submitted to a vote at a meeting of members, which may be either an annual or a special meeting;
   2. Written notice setting forth the proposed amendment or a summary of the changes to be effected thereby shall be given to each member of record entitled to vote thereon within the time and in the manner provided in Code Section 46-3-263 for the giving of notice of meetings of members. If the meeting is an annual meeting, the proposed amendment or such summary may be included in the notice of such annual meeting;
   3. At such meeting a vote of the members shall be taken on the proposed amendment. The proposed amendment shall be adopted upon receiving the affirmative vote of a majority of the members present and voting at a meeting at which a quorum is present.
3. Any number of amendments may be submitted to the members and may be voted upon by them at one meeting.

History. Ga. L. 1937, p. 644, § 14; Ga. L. 1957, p. 604, § 3; Ga. L. 1980, p. 72, § 5; Code 1933, § 34C-902, enacted by Ga. L. 1981, p. 1587, § 1.

Code Commission notes.

Georgia Laws 1937, p. 644, contained two provisions which were designated as “Section 14,” one such provision appearing on page 653 and the other appearing on page 654. The provision appearing on page 653 is codified at § 46-3-340 and the provision appearing on page 654 is codified at § 46-3-360 and this section.

46-3-362. Manner of execution of articles of amendment; contents of articles of amendment.

1. The articles of amendment, other than an amendment under subsection (b) of this Code section, shall be executed by the electric membership corporation as provided in Code Section 46-3-173 and shall set forth:
   1. The name of the electric membership corporation;
   2. The amendment so adopted;
   3. The date of the adoption of the amendment by the members; and
   4. The member vote required to adopt the amendment, the number of members entitled to vote, and the number of members who voted for the amendment.
2. If the amendment is made by the incorporator or incorporators or directors before the electric membership corporation has any members, the articles of amendment shall be executed by the incorporator or incorporators or directors, as the case may be, and shall set forth:
   1. The name of the electric membership corporation;
   2. The amendment so adopted and the date of adoption; and
   3. A statement that the amendment is made by the incorporator or incorporators or directors before the electric membership corporation has any members.

History. Code 1933, § 34C-903, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-363. Obtaining of certificate from Secretary of State upon amendment of name of electric membership corporation; filing articles of amendment; issuance of certificate of amendment; forwarding of copy of certificate to superior court; rejection of articles of amendment; publication of notice.

1. If the purpose or one of the purposes of the articles of amendment is to change the corporate name, the electric membership corporation shall cause to be obtained from the Secretary of State a certificate which states that the proposed name is available in accordance with Code Section 46-3-220. Such certificate shall be issued upon application to reserve the use of the proposed name as provided in Code Section 46-3-221 and shall be valid for the period provided in that Code section, including any extension of such period granted by the Secretary of State. Upon the expiration of such period or any extension thereof, the certificate shall become void unless the amendment changing the corporate name shall have become effective within such time.
2. The electric membership corporation shall cause the original articles of amendment and two conformed copies of the articles to be delivered to the Secretary of State for filing as provided in subsection (a) of Code Section 46-3-174.
3. Together with the articles of amendment, the electric membership corporation shall cause to be delivered to the Secretary of State:
   1. If subsection (a) of this Code section is applicable, the certificate issued by the Secretary of State reserving the proposed corporate name;
   2. Payment to the Secretary of State of the fee provided for in Code Section 46-3-501;
   3. A check, draft, or money order in the amount of $16.00, payable to the clerk of the superior court of the county where the registered office of the electric membership corporation is located on the day of delivery of the articles of amendment to the Secretary of State, in payment of the cost of filing the articles of amendment in said county;
   4. A letter addressed to the publisher of a newspaper which is the official organ of the county where the registered office of the electric membership corporation is located or which is a newspaper of general circulation published within that county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation. This letter shall contain a notice to be published four times in the newspaper and shall be in substantially the following form:

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   5. A check, draft, or money order in the amount of $60.00 payable to the designated newspaper.
4. Upon delivery of the articles of amendment to the Secretary of State, the Secretary of State shall affix thereon the hour, day, month, and year of delivery. Not later than the close of business on the first business day following the day of delivery, the Secretary of State shall either issue a certificate of amendment in the manner provided in this Code section or reject the articles in the manner provided in this Code section.
5. If the Secretary of State finds that the articles of amendment appear to be in proper form for filing and are accompanied by the other items required by subsection (c) of this Code section, he shall, in addition to the requirements of subsection (a) of Code Section 46-3-174:
   1. Issue a certificate of amendment which shall state that the articles of incorporation have been duly amended by the filing of articles of amendment in the office of the Secretary of State and the fees paid therefor, as provided by law, and attach the certificate to one conformed copy of the articles of amendment;
   2. Return the certificate of amendment with the conformed copy of the articles of amendment attached thereto to the electric membership corporation or its representative. A copy of the certificate of amendment shall be attached to the original articles of amendment;
   3. Forward a conformed copy of the articles of amendment with a copy of the certificate of amendment attached thereto, along with the check, draft, or money order provided for in paragraph (3) of subsection (c) of this Code section, to the clerk of the superior court of the county where the registered office of the electric membership corporation is located, within four business days after the articles of amendment have been delivered to the Secretary of State for filing; and
   4. Mail the letter and the check, draft, or money order provided for in paragraphs (4) and (5) of subsection (c) of this Code section, with the date inserted in the notice, to the designated newspaper within four business days after the articles of amendment have been delivered to the Secretary of State for filing.
6. If the Secretary of State finds that the articles of amendment do not appear to be in proper form for filing or are not accompanied by the other items required by subsection (c) of this Code section, he shall reject the articles for filing and shall immediately notify the electric membership corporation or its representative of such rejection by mailing a notice no later than the close of business on the first business day following the day of delivery of the articles of amendment for filing. Said notice shall specify the reason or reasons for rejection of the articles of amendment, and said articles and all accompanying materials shall be returned therewith.
7. The conformed copy of the articles of amendment, with a copy of the certificate of amendment attached thereto, as provided for in paragraph (3) of subsection (e) of this Code section, shall be filed upon receipt by the clerk of the superior court of the county where the registered office of the electric membership corporation is located. Failure on the part of the Secretary of State to mail the conformed copy of the articles of amendment or failure on the part of the clerk of the superior court to comply with this subsection shall not invalidate the issuance of the certificate of amendment by the Secretary of State.
8. The notice provided for in paragraph (4) of subsection (c) of this Code section shall be published within ten days after receipt of the notice by the newspaper. Failure on the part of the Secretary of State to mail the notice or failure on the part of the newspaper to comply with this subsection shall not invalidate the issuance of the certificate of amendment by the Secretary of State.

(Name and address of the newspaper designated by the electric membership corporation) Dear Sirs: You are requested to publish, four times, a notice in the following form: “The Articles of Incorporation of (name of electric membership corporation) have been duly amended on , (month, day, and year to be inserted by the Secretary of State), by the issuance of a certificate of amendment by the Secretary of State, in accordance with the applicable provisions of Article 4 of Chapter 3 of Title 46, the ‘Georgia Electric Membership Corporation Act.”’ Enclosed is a (check, draft, or money order) in the amount of $60.00 in payment of the cost of publishing this notice. Very truly yours, (Name and address of the electric membership corporation or its representative)

History. Ga. L. 1937, p. 644, § 14; Ga. L. 1957, p. 604, § 3; Ga. L. 1980, p. 72, § 5; Code 1933, § 34C-904, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-364. Time of effectiveness of amendment; effect of amendment on pending causes of action.

1. If the Secretary of State issues a certificate of amendment, the amendment shall become effective as of the time of delivery to the Secretary of State of the articles of amendment so certified; and the articles of incorporation shall be deemed to be amended accordingly.
2. No amendment shall affect any existing cause of action in favor of or against such electric membership corporation, or any pending action to which such electric membership corporation is a party, or the existing rights of persons other than members; and, in the event the corporate name is changed by amendment, no action brought by or against such electric membership corporation under its former name shall abate for that reason.

History. Code 1933, § 34C-905, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-365. Restated articles of incorporation.

1. An electric membership corporation may at any time restate its articles of incorporation as theretofore amended.
2. If the restated articles restate the text of the original articles as theretofore amended, without making any further amendment or change, the restated articles may be adopted by the board of directors without a vote of the members. In the alternative, the board may submit the proposed restated articles to the members for approval in accordance with Code Section 46-3-361 relating to amendments of the articles of incorporation.
3. Any amendment or amendments to the articles of incorporation may be adopted in the form of restated articles of incorporation. In such case the restated articles shall be submitted to the members for approval in accordance with Code Section 46-3-361 relating to amendments of the articles of incorporation.
4. Upon adoption or approval of the proposed restated articles by the directors or the members, as the case may be, restated articles of incorporation shall be executed by the corporation as provided in Code Section 46-3-173, and shall set forth:
   1. All provisions required by Code Section 46-3-321 to be included in original articles of incorporation at the time of restatement, except for the omissions expressly permitted by subsection (e) of this Code section;
   2. If the restated articles of incorporation restate the text of the original articles of incorporation as theretofore amended without making any further amendment or change, that the restatement purports merely to restate but not to change the original articles of incorporation as theretofore amended and that there is no discrepancy, other than that expressly permitted by subsection (e) of this Code section, between the provisions of the original articles of incorporation and the provisions of the restated articles;
   3. If any amendment or amendments to the articles of incorporation are adopted in the form of restated articles of incorporation, that the restatement purports merely to restate all those provisions then in effect not being amended by such new amendment or amendments;
   4. The date upon which the restatement was authorized by the directors or the members, as the case may be;
   5. If the restatement was authorized by the directors without a vote of the members, the director vote required to adopt the restatement and the number of directors who voted for the restatement;
   6. If the restatement was authorized by the members, the member vote required to adopt the restatement, the number of members entitled to vote, and the number of members who voted for the restatement; and
   7. That the restated articles supersede the original articles of incorporation as theretofore amended.
5. Restated articles of incorporation need not include statements as to the incorporator, the initial board of directors, the address of the initial registered office, or the name of the initial registered agent.
6. The electric membership corporation shall cause the original restated articles of incorporation and two conformed copies of the restated articles to be delivered to the Secretary of State for filing as provided in subsection (a) of Code Section 46-3-174.
7. Together with restated articles of incorporation, the electric membership corporation shall cause to be delivered to the Secretary of State:
   1. If subsection (c) of this Code section is applicable and if the purpose of the amendment or of one of the amendments to the articles of incorporation is to change the corporate name, the certificate issued by the Secretary of State reserving the proposed corporate name;
   2. Payment to the Secretary of State of the fee provided for in Code Section 46-3-501;
   3. If subsection (c) of this Code section is applicable, a letter containing a notice for legal publication substantially in the form provided in paragraph (4) of subsection (c) of Code Section 46-3-363 and a check, draft, or money order in the amount of $60.00 payable to the designated newspaper; and
   4. A check, draft, or money order in the amount of $16.00, payable to the clerk of the superior court of the county where the registered office of the electric membership corporation is located on the day of delivery of the restated articles of incorporation to the Secretary of State, in payment of the cost of filing the restated articles of incorporation in that county.
8. Upon delivery of the restated articles of incorporation to the Secretary of State, the Secretary of State shall affix thereon the hour, day, month, and year of delivery. Not later than the close of business on the first business day following the day of delivery, the Secretary of State shall either issue a restated certificate of incorporation in the manner provided in this Code section or reject the restated articles in the manner provided in this Code section.
9. If the Secretary of State finds that the restated articles of incorporation appear to be in proper form for filing and are accompanied by the other items required by subsection (g) of this Code section, he shall, in addition to the requirements of subsection (a) of Code Section 46-3-174:
   1. Issue a restated certificate of incorporation which shall state that the articles of incorporation, as theretofore amended, have been restated and, where subsection (c) of this Code section is applicable, have been amended by the filing of restated articles of incorporation in the office of the Secretary of State and the fees paid therefor, as provided by law, and attach the certificate to one conformed copy of the restated articles of incorporation;
   2. Return the restated certificate of incorporation with the conformed copy of the restated articles of incorporation attached thereto to the electric membership corporation or its representative. A copy of the restated certificate of incorporation shall be attached to the original restated articles of incorporation;
   3. Forward a conformed copy of the restated articles of incorporation with a copy of the restated certificate of incorporation attached thereto, along with the check, draft, or money order provided for in paragraph (4) of subsection (g) of this Code section, to the clerk of the superior court in the county where the registered office of the electric membership corporation is located, within four business days after the restated articles of incorporation have been delivered to the Secretary of State for filing; and
   4. If subsection (c) of this Code section is applicable, mail the letter and the check, draft, or money order provided for in paragraph (3) of subsection (g) of this Code section, with the appropriate date inserted in the notice, to the designated newspaper within four business days after the restated articles of incorporation have been delivered to the Secretary of State for filing.
10. If the Secretary of State finds that the restated articles of the electric membership corporation do not appear to be in proper form for filing or are not accompanied by the other items required by subsection (g) of this Code section, he shall reject the articles for filing and shall immediately notify the electric membership corporation or its representative of such rejection by mailing a notice no later than the close of business on the first business day following the day of delivery of the restated articles of incorporation for filing. Such notice shall specify the reason or reasons for rejection of the restated articles; and all accompanying materials shall be returned therewith.
11. The conformed copy of the restated articles of incorporation, with a copy of the restated certificate of incorporation attached thereto, as provided for in paragraph (3) of subsection (i) of this Code section, shall be filed upon receipt by the clerk of the superior court of the county where the registered office of the electric membership corporation is located. Failure on the part of the Secretary of State to mail the conformed copy of the restated articles of incorporation or failure on the part of the clerk of the superior court to comply with this subsection shall not invalidate the issuance of the restated certificate of incorporation by the Secretary of State.
12. The notice provided for in paragraph (3) of subsection (g) of this Code section shall be published within ten days after receipt of the notice by the newspaper. Failure on the part of the Secretary of State to mail the notice or failure on the part of the newspaper to comply with this subsection shall not invalidate the issuance of the restated certificate of incorporation by the Secretary of State.
13. If the Secretary of State issued a restated certificate of incorporation, the restated articles of incorporation shall become effective as of the time of delivery to the Secretary of State of the restated articles so certified; and the restated articles shall supersede the original articles of incorporation as theretofore amended.
14. When a restatement has been effected without a vote of the members, as permitted by subsection (b) of this Code section, that fact shall be disclosed in the next report furnished by the electric membership corporation to all its members and in any event to all of its members within 12 months of the effective date of such restatement.

History. Ga. L. 1937, p. 644, § 14; Ga. L. 1957, p. 604, § 3; Ga. L. 1980, p. 72, § 5; Code 1933, § 34C-906, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-380. Procedure for merger generally.

1. Any two or more electric membership corporations may merge into one of such electric membership corporations pursuant to a plan of merger approved in the manner provided in this part.
2. The board of directors of each electric membership corporation participating in the merger shall, by resolution adopted by each such board, approve a plan of merger setting forth:
   1. The names of the electric membership corporations proposing to merge, and the name of the electric membership corporation into which they propose to merge, which shall be referred to in this part as the surviving electric membership corporation;
   2. The terms and conditions of the proposed merger;
   3. The manner and basis of converting the membership interests into membership interests, rights, obligations, or securities of the surviving electric membership corporation or of any other corporation or, in whole or in part, into cash or other property;
   4. A statement of any changes in the articles of incorporation of the surviving electric membership corporation to be effected by such merger; and
   5. Such other provisions with respect to the proposed merger as are deemed necessary or desirable.

History. Code 1933, § 34C-1001, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-381. Procedure for consolidation generally.

1. Any two or more electric membership corporations may consolidate into a new electric membership corporation pursuant to a plan of consolidation approved in the manner provided in this part.
2. The board of directors of each electric membership corporation participating in the consolidation shall, by a resolution adopted by each such board, approve a plan of consolidation setting forth:
   1. The names of the electric membership corporations proposing to consolidate and the name of the new electric membership corporation into which they propose to consolidate, which shall be referred to in this article as the new electric membership corporation;
   2. The terms and conditions of the proposed consolidation;
   3. The manner and basis of converting the membership interests into membership interests, rights, obligations, or securities of the new electric membership corporation or any other corporation or, in whole or in part, into cash or other property;
   4. With respect to the new electric membership corporation, all of the statements required to be set forth in articles of incorporation for electric membership corporations organized under this article; and
   5. Such other provisions with respect to the proposed consolidation as are deemed necessary or desirable.

History. Ga. L. 1937, p. 644, § 15; Ga. L. 1980, p. 72, § 6; Code 1933, § 34C-1002, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-382. Approval of merger or consolidation plan by members.

1. The board of directors of each electric membership corporation, upon approving such plan of merger or plan of consolidation, shall by resolution direct that the plan be submitted to a vote at a meeting of members, which may be either an annual or special meeting.
2. Written notice shall be given to each member not less than 30 days before such meeting, in the manner provided in Code Section 46-3-263 for the giving of notice of meetings of members, and, regardless of whether the meeting is an annual or a special meeting, shall state that the purpose or one of the purposes is to consider the proposed plan of merger or consolidation. Such notice shall include:
   1. A copy of the plan of merger or consolidation or an outline of the material features of the plan; and
   2. A copy of the most recent annual balance sheet and annual profit and loss statement, or comparable financial statements, of each of the merging or consolidating electric membership corporations.

      If an electric membership corporation which is a party to any such plan provides retail service, notice that the merger is proposed and of the times and places of the proposed meetings of members for the purpose of voting on the merger shall be delivered not less than 30 days nor more than 90 days before such meeting to the publisher of each newspaper which is the official organ of each county in which each electric membership corporation provides service or to the publisher of one or more newspapers of general circulation published within each such county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation, together with a check, draft, or money order in the amount of $15.00 in payment of the cost of publishing such notice and a request that such notice be published one time as soon as practicable, but in any event within ten days after receipt of the notice by the newspaper.

3. At each such meeting, a vote of the members shall be taken on the proposed plan of merger or consolidation. The proposed plan shall be adopted upon receiving at least two-thirds of the votes of the members present and voting, at a meeting at which a quorum is present.
4. After the plan of merger or consolidation has been approved and at any time prior to the issuance of the certificate of merger or certificate of consolidation by the Secretary of State as provided in subsection (f) of Code Section 46-3-383, the merger or consolidation may be abandoned pursuant to provisions therefor, if any, set forth in the plan of merger or consolidation.

History. Ga. L. 1937, p. 644, § 15; Ga. L. 1980, p. 72, § 6; Code 1933, § 34C-1003, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1984, p. 22, § 46.

46-3-383. Contents of articles of merger or articles of consolidation; obtaining of certificate from Secretary of State upon use of new name; procedures involving filing, issuance, rejection, and publication of articles of merger or articles of consolidation.

1. Articles of merger or articles of consolidation shall be executed by each electric membership corporation, as provided in Code Section 46-3-173, and shall set forth:
   1. The plan of merger or the plan of consolidation, including the proposed name of the surviving or new electric membership corporation, which name may be that of any of the merging or consolidating electric membership corporations or any other available name permitted under this article;
   2. As to each consolidating electric membership corporation and as to each merging electric membership corporation the members of which voted on such plan, a statement of the member vote required to adopt the plan of merger or consolidation, the number of members entitled to vote, and the vote for the plan; and
   3. The effective time and date of the merger or consolidation if the effective time and date of the merger or consolidation is to be after the delivery of the articles of merger or articles of consolidation to the Secretary of State, as provided in subsection (a) of Code Section 46-3-384.
2. If the proposed name of the surviving or new electric membership corporation is not that of any of the merging or consolidating electric membership corporations, any one of those electric membership corporations shall obtain from the Secretary of State a certificate which states that such name is available in accordance with Code Section 46-3-220. Such certificate shall be issued upon application to reserve the use of the proposed corporate name as provided in Code Section 46-3-221 and shall be valid for the period provided in Code Section 46-3-221, including any extension of such period granted by the Secretary of State. Upon the expiration of such period or any extension thereof, the certificate shall become void unless a certificate of merger or certificate of consolidation shall have been issued by the Secretary of State within such time.
3. The merging or consolidating electric membership corporations shall cause the original articles of merger or the original articles of consolidation and two conformed copies of the articles of merger or the articles of consolidation to be delivered to the Secretary of State for filing as provided in subsection (a) of Code Section 46-3-174.
4. Together with the articles of merger or articles of consolidation, the merging or consolidating electric membership corporations shall cause to be delivered to the Secretary of State:
   1. If subsection (b) of this Code section is applicable, the certificate issued by the Secretary of State reserving the proposed name for the surviving or new electric membership corporation;
   2. Payment to the Secretary of State of the fee provided for in Code Section 46-3-501;
   3. A check, draft, or money order in the amount of $16.00, payable to the clerk of the superior court of the county where the registered office of the surviving or new electric membership corporation is to be located, in payment of the cost of filing the articles of merger or articles of consolidation in that county;
   4. A letter addressed to the publisher of a newspaper which is the official organ of the county where the registered office of the surviving or new electric membership corporation is to be located or which is a newspaper of general circulation published within that county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation. This letter shall contain a notice to be published four times in the newspaper and shall be in substantially the following form:

      Click to view

   5. A check, draft, or money order in the amount of $60.00 payable to the designated newspaper.
5. Upon delivery of the articles of merger or articles of consolidation to the Secretary of State, the Secretary of State shall affix thereon the hour, day, month, and year of delivery. Not later than the close of business on the first business day following the day of delivery, the Secretary of State shall either issue a certificate of merger or certificate of consolidation in the manner provided in this Code section or reject the articles in the manner provided in this Code section.
6. If the Secretary of State finds that the articles of merger or articles of consolidation appear to be in proper form for filing and are accompanied by the other items required by subsection (d) of this Code section, he shall, in addition to the requirements of subsection (a) of Code Section 46-3-174:
   1. Issue a certificate of merger or a certificate of consolidation which shall state that the merging or consolidating electric membership corporations have been or will be duly merged or consolidated, as the case may be, and the effective date thereof, by the filing of articles of merger or articles of consolidation in the office of the Secretary of State and the fees paid therefor, as provided by law, and attach the certificate of merger or certificate of consolidation to one conformed copy of the articles of merger or articles of consolidation;
   2. Return the certificate of merger or certificate of consolidation, with the conformed copy of the articles of merger or articles of consolidation attached thereto, to the surviving or new electric membership corporation, as the case may be, or its representative. A copy of the certificate shall be attached to the original articles of merger or articles of consolidation;
   3. Forward a conformed copy of the articles of merger or articles of consolidation, with a copy of the certificate of merger or certificate of consolidation, as the case may be, attached thereto, along with the check, draft, or money order provided for in paragraph (3) of subsection (d) of this Code section, to the clerk of the superior court of the county where the registered office of the surviving or new electric membership corporation is to be located, within four business days after the articles of merger or articles of consolidation have been delivered to the Secretary of State for filing; and
   4. Mail the letter and the check, draft, or money order provided for in paragraphs (4) and (5) of subsection (d) of this Code section to the designated newspaper within four business days after the articles of merger or articles of consolidation have been delivered to the Secretary of State for filing.
7. If the Secretary of State finds that the articles of merger or articles of consolidation do not appear to be in proper form for filing or are not accompanied by the other items required by subsection (d) of this Code section, he shall reject the articles for filing and shall immediately notify the merging or consolidating electric membership corporations or their representative of such rejection by mailing a notice no later than the close of business on the first business day following the day of delivery of the articles of merger or articles of consolidation for filing. This notice shall specify the reason or reasons for rejection of the articles of merger or articles of consolidation; and the articles and all accompanying materials shall be returned therewith.
8. The conformed copy of the articles of merger or articles of consolidation, with a copy of the certificate of merger or certificate of consolidation attached thereto, provided for in paragraph (3) of subsection (f) of this Code section shall be filed upon receipt by the clerk of the superior court of the county where the registered office of the surviving or new electric membership corporation is to be located. Failure on the part of the Secretary of State to mail the conformed copy of the articles of merger or articles of consolidation or failure on the part of the clerk of the superior court to comply with this subsection shall not invalidate the issuance of the certificate of merger or certificate of consolidation by the Secretary of State.
9. The notice provided for in paragraph (4) of subsection (d) of this Code section and in subsection (b) of Code Section 46-3-382 shall be published within ten days after receipt of the notice by the newspaper. Failure on the part of the Secretary of State to mail the notice provided for in paragraph (4) of subsection (d) of this Code section or failure on the part of the newspaper to comply with this subsection shall not affect the validity of the meeting of members at which the merger or consolidation is approved or the validity of the certificate of merger or certificate of consolidation issued by the Secretary of State.

(name and address of the newspaper designated by the merging or consolidating electric membership corporations) Dear Sirs: You are requested to publish, four times, a notice in the following form: “A (merger) (consolidation) (has been) (will be) effected by and between (name and state of incorporation of each of the constituent electric membership corporations) on (month, day, and year to be inserted by the Secretary of State) by the issuance of a certificate of (merger) (consolidation) by the Secretary of State, in accordance with the applicable provisions of Article 4 of Chapter 3 of Title 46, the ‘Georgia Electric Membership Corporation Act.’ The name of the (surviving electric membership corporation in the merger) (new electric membership corporation resulting from the consolidation) (is) (will be) (set forth the name and state of incorporation of the surviving electric membership corporation or new electric membership corporation, as the case may be), the registered office of which (is) (will be) located at (address of registered office).” Enclosed is a (check, draft, or money order) in the amount of $60.00 in payment of the cost of publishing this notice. Very truly yours, (Name and address of merging or consolidating electric membership corporations or their representative)

History. Ga. L. 1937, p. 644, § 15; Ga. L. 1980, p. 72, § 6; Code 1933, § 34C-1004, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-384. Effect of merger or consolidation.

1. If the Secretary of State issues a certificate of merger or certificate of consolidation, the merger or consolidation shall become effective as of the time of delivery to the Secretary of State of the articles of merger or articles of consolidation so certified, as provided in Code Section 46-3-383, or at such later time and date as the articles shall specify, not to exceed 60 days from the date of delivery of the articles to the Secretary of State.
2. When such merger or consolidation has become effective:
   1. The several electric membership corporations which are parties to the plan of merger or consolidation shall be a single electric membership corporation, which, in the case of a merger, shall be that electric membership corporation designated in the plan of merger as the surviving electric membership corporation and, in the case of a consolidation, shall be the new electric membership corporation provided for in the plan of consolidation;
   2. The separate existence of all electric membership corporations which are parties to the plan of merger or consolidation, except the surviving or new electric membership corporation, shall cease;
   3. Such surviving or new electric membership corporation shall have all the rights, privileges, immunities, and powers and shall be subject to all the duties and liabilities of an electric membership corporation organized under this article;
   4. Such surviving or new electric membership corporation shall thereupon and thereafter possess all the rights, privileges, immunities, and franchises, of a public as well as of a private nature, of each of the merging or consolidating electric membership corporations; and all property, whether real, personal, or mixed, and all debts due on whatever account, and all other choses in action, and all and every other interest of or belonging to or due to each of the electric membership corporations so merged or consolidated shall be taken and deemed to be transferred to and vested in such a single electric membership corporation without further act or deed; and the title to any real estate, or any interest therein, vested in any of such electric membership corporations shall not revert or be in any way impaired by reason of such merger or consolidation;
   5. Such surviving or new electric membership corporation shall thenceforth be responsible and liable for all the liabilities and obligations of each of the electric membership corporations so merged or consolidated; and any claim existing or action or proceeding pending by or against any of such electric membership corporations may be prosecuted as if such merger or consolidation had not taken place; or such surviving or new electric membership corporation may be substituted in its place. Neither the rights of creditors nor any liens upon the property of any such electric membership corporation shall be impaired by such merger or consolidation;
   6. In the case of a merger, the articles of incorporation of the surviving electric membership corporation shall be deemed to be amended to the extent, if any, that changes in its articles of incorporation are stated in the plan of merger; and, in the case of a consolidation, the statements set forth in the articles of consolidation and which are required or permitted to be set forth in the articles of incorporation of electric membership corporations organized under this article shall be deemed to be the original articles of incorporation of the new electric membership corporation.

History. Code 1933, § 34C-1005, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-385. Merger or consolidation of electric membership corporations and foreign electric cooperatives.

1. One or more foreign electric cooperatives and one or more electric membership corporations may be merged or consolidated into an electric membership corporation or a foreign electric cooperative, if such merger or consolidation is permitted by the laws of the jurisdiction under which each such foreign electric cooperative is organized.
2. With respect to procedure, including all filing and advertising requirements:
   1. Each such foreign electric cooperative shall comply with the applicable provisions of the laws of the jurisdiction under which it is organized;
   2. Each electric membership corporation shall comply with the provisions of this article relating to the merger or consolidation, as the case may be, of electric membership corporations. If the surviving or new corporation is to be a foreign electric cooperative without a registered office in this state, the notice provided for in paragraph (4) of subsection (d) of Code Section 46-3-383 shall be published, and the conformed copy of the articles of merger or articles of consolidation provided for in paragraph (3) of subsection (f) of Code Section 46-3-383 shall be filed in the county where the registered office of any of the electric membership corporations is located.
3. If the surviving or new corporation, as the case may be, is to be governed by the laws of any jurisdiction other than this state, it shall comply with the provisions of this article with respect to foreign electric cooperatives if it is to transact business in this state, and in every case it shall be deemed to have filed with the Secretary of State of this state:
   1. An agreement that it may be served with process in this state in any proceeding for the enforcement of any obligation of any electric membership corporation which is a party to such merger or consolidation; and
   2. An irrevocable appointment of the Secretary of State of this state as its agent to accept service of process in any such proceeding.
4. If the surviving or new corporation is to be governed by the laws of this state, the effect of such merger or consolidation shall be the same as in the case of the merger or consolidation of electric membership corporations. If the surviving or new corporation is to be governed by the laws of any jurisdiction other than this state, the effect of such merger or consolidation shall be the same as in the case of the merger or consolidation of electric membership corporations except insofar as the laws of such other jurisdiction provide otherwise.
5. At any time prior to the issuance of the certificate of merger or certificate of consolidation by the Secretary of State, the merger or consolidation may be abandoned pursuant to provisions therefor, if any, set forth in the plan of merger or consolidation.

History. Code 1933, § 34C-1006, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-400. Secured transactions and other dispositions of assets not requiring member approval.

1. Unless the articles of incorporation or bylaws otherwise provide, the board of directors may authorize any of the following transactions without any vote or consent of the members:
   1. Any sale, lease, exchange, or other disposition of less than substantially all the property and assets of the electric membership corporation; and
   2. The execution and delivery of any one or more mortgages, deeds of trust, or deeds to secure debt covering, or the creation by any other means of a security interest in, any or all of the real or personal property, assets, rights, privileges, licenses, franchises, and permits of the electric membership corporation, or any interest therein, as well as the revenues therefrom, whether acquired or to be acquired, and wherever situated, for the purpose of securing the payment or performance of any one or more contracts, notes, bonds, or other obligation of the electric membership corporation.
2. Any transaction made as permitted by this Code section without any vote or consent of the members may be upon such terms and conditions and for such consideration as the board may deem to be in the best interests of the electric membership corporation.

History. Code 1933, § 34A-128a, enacted by Ga. L. 1950, p. 233, § 3; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 2; Ga. L. 1970, p. 555, § 1; Code 1933, § 34C-1101, enacted by Ga. L. 1981, p. 1587, § 1.

Editor’s notes.

The “Electric Membership Corporation Act” was enacted by Ga. L. 1937, p. 644, and was unofficially codified at Title 34A of the 1933 Code. Georgia Laws 1950, p. 233, § 2 amended the 1937 Act by adding a section designated as § 34A-128a, which was unofficially codified at § 34A-128.1. In 1968 the General Assembly enacted the “Georgia Municipal Election Code” (Ga. L. 1968, p. 885) and officially designated that Act as Title 34A of the 1933 Code. As a means of accommodating the 1968 Act, the “Electric Membership Corporation Act” was unofficially redesignated as Title 34B. Thus, § 34A-128.1 was unofficially redesignated as § 34B-128.1.

46-3-401. Sale, lease, exchange, or other disposition of corporate assets requiring member approval.

A sale, lease, exchange, or other disposition of all or substantially all the property and assets of an electric membership corporation, with or without the good will of the electric membership corporation, in all cases other than those dealt with in Code Section 46-3-400 may be made upon such terms and conditions and for such consideration, which may consist in whole or in part of money or property, either real or personal, including, but not limited to, bonds or other securities of other electric membership corporations or of foreign electric cooperatives, or shares, bonds, or other securities of any other corporations, either domestic or foreign, as shall be authorized in the following manner:

1. The board of directors shall adopt a resolution recommending such sale, lease, exchange, or other disposition, specifying to the extent that the board sees fit any or all of the terms and conditions thereof and the consideration to be received by the electric membership corporation therefor and directing the submission thereof to a vote at a meeting of members, which may be either an annual or a special meeting;
2. Written notice shall be given to each member not less than 30 days before such meeting, in the manner provided in Code Section 46-3-263 for the giving of notice of meetings of members, and, regardless of whether the meeting is an annual or a special meeting, shall state that the purpose or one of the purposes is to consider the proposed sale, lease, exchange, or other disposition and shall fairly summarize the material features of the proposed transaction. Such written notice shall also be mailed, on the earliest date such notice is given to any member of the electric membership corporation, to any person who supplies retail electric service in this state and who has a contract with the electric membership corporation under which it is entitled to any of the output of or to be served by any facility owned in whole or in part by the electric membership corporation. If the electric membership corporation provides retail service, notice that the sale, lease, exchange, or other disposition is proposed and of the time and place of the proposed meeting of members for the purpose of voting on such disposition shall be delivered not less than 30 days nor more than 90 days before such meeting to the publisher of each newspaper which is the official organ of each county in which the electric membership corporation provides service or to the publisher of one or more newspapers of general circulation published within each such county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation, together with a check, draft, or money order in the amount of $15.00 in payment of the cost of publishing such notice and a request that such notice be published one time as soon as practicable but, in any event, within ten days after receipt of the notice by the newspaper. Such notice shall be published by each newspaper within ten days of its receipt of the notice; but failure of any newspaper to comply with such publication requirement shall not affect the validity of the meeting of members at which the disposition is approved and shall not affect the validity of the disposition.
3. At such meeting, the members may authorize such sale, lease, exchange, or other disposition and may approve or fix, or may authorize the board of directors to fix, any or all of the terms and conditions thereof and the consideration to be received by the electric membership corporation therefor. Such authorization shall require the affirmative vote of a majority of the members of the electric membership corporation.
4. After such authorization by a vote of the members, the board of directors may nevertheless in its discretion abandon such sale, lease, exchange, or other disposition of assets, subject to the rights of third parties under any contracts relating thereto, without further action or approval by the members.

History. Code 1933, § 34A-128a, enacted by Ga. L. 1950, p. 233, § 3; Ga. L. 1953, Nov.-Dec. Sess., p. 359, § 2; Code 1933, § 34C-1102, enacted by Ga. L. 1981, p. 1587, § 1.

Editor’s notes.

The “Electric Membership Corporation Act” was enacted by Ga. L. 1937, p. 644, and was unofficially codified at Title 34A of the 1933 Code. Georgia Laws 1950, p. 233, § 2 amended the 1937 Act by adding a section designated as § 34A-128a, which was unofficially codified at § 34A-128.1. In 1968 the General Assembly enacted the “Georgia Municipal Election Code” (Ga. L. 1968, p. 885) and officially designated that Act as Title 34A of the 1933 Code. As a means of accommodating the 1968 Act, the “Electric Membership Corporation Act” was unofficially redesignated as Title 34B. Thus, § 34A-128.1 was unofficially redesignated as § 34B-128.1.

46-3-420. Commencement of proceedings for voluntary dissolution of an electric membership corporation generally.

An electric membership corporation may be dissolved by the act of the electric membership corporation when authorized in the following manner:

1. The board of directors shall adopt a resolution recommending that the electric membership corporation be dissolved and directing that the question of such dissolution be submitted to a vote at a meeting of the members, which may be either an annual or a special meeting;
2. Written notice shall be given to each member not less than 30 days before such meeting, in the manner provided in Code Section 46-3-263 for the giving of notice of meetings of members and, regardless of whether the meeting is an annual or a special meeting, shall state that the purpose or one of the purposes of such meeting is to consider the advisability of dissolving the electric membership corporation. Such written notice shall also be mailed, on the earliest date such notice is given to any member of the electric membership corporation, to any person who supplies retail electric service in this state and who has a contract with the electric membership corporation under which it is entitled to any of the output of or to be served by any facility owned in whole or in part by the electric membership corporation. If the electric membership corporation provides retail service, notice that dissolution is proposed and of the time and place of the proposed meeting of members for the purpose of voting on dissolution shall be delivered not less than 30 days nor more than 90 days before such meeting to the publisher of each newspaper which is the official organ of each county in which the electric membership corporation provides service or to the publisher of one or more newspapers of general circulation published within each such county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation, together with a check, draft, or money order in the amount of $15.00 in payment of the cost of publishing such notice and a request that such notice be published one time as soon as practicable but, in any event, within ten days after receipt of the notice by the newspaper. Such notice shall be published by each newspaper within ten days of its receipt of the notice; but failure of any newspaper to comply with such publication requirement shall not affect the validity of the meeting of members at which dissolution is approved;
3. At such meeting, a vote of the members entitled to vote thereat shall be taken on a resolution to dissolve the electric membership corporation. The resolution may fix the time within which the statement of intent to dissolve, required by this article, shall be delivered to the Secretary of State for filing and also may authorize the board to abandon dissolution proceedings and to file a statement of revocation of voluntary dissolution proceedings without further member action. Such resolution shall be adopted upon receiving the affirmative vote of a majority of the members of the electric membership corporation;
4. Upon the adoption of such resolution, a statement of intent to dissolve shall be executed by the electric membership corporation as provided in Code Section 46-3-173, which statement shall set forth:
   1. The name of the electric membership corporation and its date and county of incorporation;
   2. The names and respective addresses of its officers;
   3. The names and respective addresses of its directors;
   4. A copy of the resolution adopted by the members authorizing the dissolution of the electric membership corporation; and
   5. The member vote required to adopt the resolution to dissolve the electric membership corporation, the number of members entitled to vote, and the vote for the resolution.

History. Ga. L. 1937, p. 644, § 16; Code 1933, § 34C-1201, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-421. Filing of statement of intent to dissolve with Secretary of State and state revenue commissioner.

The statement of intent to dissolve shall be delivered to the Secretary of State for filing as provided in Code Section 46-3-174. The electric membership corporation shall also forward a copy of such statement to the state revenue commissioner for filing.

History. Code 1933, § 34C-1202, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-422. Effect of filing of statement of intent to dissolve.

Upon the filing by the Secretary of State of a statement of intent to dissolve, the electric membership corporation shall cease to carry on its business, except insofar as may be necessary or appropriate for the winding up thereof; but its corporate existence shall continue until the time provided in subsection (g) of Code Section 46-3-428.

History. Code 1933, § 34C-1203, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-423. Procedure after filing statement of intent to dissolve.

1. The electric membership corporation shall immediately cause notice of its intent to dissolve to be published in a newspaper which is the official organ of the county where the registered office of the electric membership corporation is located or which is a newspaper of general circulation published within that county whose most recently published annual statement of ownership and circulation reflects a minimum of 60 percent paid circulation. This notice shall be published four times in the newspaper and shall be in substantially the following form:

   A Statement of Intent to Dissolve _______________ (name of electric membership corporation), a Georgia electric membership corporation with registered office at _______________ (address of registered office), has been delivered to the Secretary of State by said electric membership corporation and filed by him on _______________ , _______________ (month, day, and year), in accordance with the applicable provisions of Article 4 of Chapter 3 of Title 46, the “Georgia Electric Membership Corporation Act.”

2. The electric membership corporation shall proceed to collect its assets; convey and dispose of such of its properties as are not to be distributed in kind to its members and former members; pay, satisfy, and discharge its liabilities and obligations; and do all other acts required to liquidate its business and affairs and, after paying or adequately providing for the payment of all its obligations, distribute the remainder of its assets, either in cash or in kind, among its members and former members according to their respective rights and interests as such rights and interests are established under the articles of incorporation and bylaws.
3. The electric membership corporation, at any time during the liquidation of its business and affairs, may make application to the superior court of the county where the registered office of the electric membership corporation is situated to have the liquidation continued under the supervision of the court as provided in Code Section 46-3-431.

History. Code 1933, § 34C-1204, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1999, p. 81, § 46.

46-3-424. Revocation of voluntary dissolution proceedings by electric membership corporation.

An electric membership corporation may, at any time prior to the issuance of a certificate of dissolution by the Secretary of State as provided in subsection (d) of Code Section 46-3-428, revoke voluntary dissolution proceedings theretofore taken, in the following manner:

1. The board of directors shall adopt a resolution recommending that the voluntary dissolution proceedings be revoked and directing that the question of such revocation be submitted to a vote at a special meeting of members;
2. Written notice, stating that the purpose or one of the purposes of such meeting is to consider the advisability of revoking the voluntary dissolution proceedings, shall be given to each member within the time and in the manner provided in Code Section 46-3-263 for the giving of notice of special meetings of members;
3. At such meeting, a vote of the members shall be taken on a resolution to revoke voluntary dissolution proceedings, which resolution shall require for its adoption the affirmative vote of a majority of all the members;
4. Upon the adoption of such resolution, a statement of revocation of voluntary dissolution proceedings shall be executed by the electric membership corporation as provided in this article, which statement shall set forth:
   1. The name of the electric membership corporation;
   2. The names and respective addresses of its officers;
   3. The names and respective addresses of its directors;
   4. A copy of the resolution adopted by the members revoking the voluntary dissolution proceedings; and
   5. The member vote required to adopt the resolution to revoke voluntary dissolution proceedings, the number of members entitled to vote, and the vote for the resolution;
5. If the board has been authorized, in the original resolution to dissolve the electric membership corporation adopted by the members, to abandon dissolution proceedings and to file a statement of revocation of voluntary dissolution proceedings without further member action, then this statement shall be executed by the electric membership corporation as provided in Code Section 46-3-173 upon the adoption by the board of a resolution recommending that the voluntary dissolution proceedings be revoked. In such case, the statement shall set forth a copy of the resolution adopted by the board and shall briefly state why action by the members was not required; but the statement need not be responsive to subparagraphs (D) and (E) of paragraph (4) of this Code section.

History. Code 1933, § 34C-1205, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 1984, p. 22, § 46; Ga. L. 1985, p. 149, § 46.

46-3-425. Filing of statement of revocation of voluntary dissolution proceedings with Secretary of State.

The statement of revocation of voluntary dissolution proceedings shall be delivered to the Secretary of State for filing as provided in Code Section 46-3-174.

History. Code 1933, § 34C-1206, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-426. Effect of filing of statement of revocation of voluntary dissolution proceedings.

Upon the filing by the Secretary of State of a statement of revocation of voluntary dissolution proceedings, the revocation of the voluntary dissolution proceedings shall become effective and the electric membership corporation may again carry on its business.

History. Code 1933, § 34C-1207, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-427. Execution of articles of dissolution; contents of articles of dissolution.

If voluntary dissolution proceedings under Code Section 46-3-420 have not been revoked, then when all debts, liabilities, and obligations of the electric membership corporation have been paid and discharged, or adequate provision has been made therefor, and all of the remaining property and assets of the electric membership corporation have been distributed to its members and former members, or adequate provision has been made therefor, articles of dissolution shall be executed by the electric membership corporation as provided in Code Section 46-3-173, which articles shall set forth:

1. The name of the electric membership corporation;
2. That the Secretary of State has theretofore filed a statement of intent to dissolve the electric membership corporation and the date on which such statement was filed;
3. That all debts, obligations, and liabilities of the electric membership corporation have been paid and discharged or that adequate provision has been made therefor;
4. That all remaining property and assets of the electric membership corporation have been distributed among its members and former members in accordance with their respective rights and interests, or that adequate provision has been made therefor, or that such property and assets have been deposited with the Office of the State Treasurer as provided in Code Section 46-3-438; and
5. That there are no actions pending against the electric membership corporation in any court or that adequate provision has been made for the satisfaction of any judgment, order, or decree which may be entered against it in any pending action.

History. Code 1933, § 34C-1208, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2008, p. 230, § 2/SB 175; Ga. L. 2010, p. 863, § 2/SB 296.

The 2008 amendment, effective July 1, 2008, substituted “Office of Treasury and Fiscal Services” for “Department of Administrative Services” in paragraph (4).

The 2010 amendment, effective July 1, 2010, substituted “Office of the State Treasurer” for “Office of Treasury and Fiscal Services” near the end of paragraph (4).

46-3-428. Filing of articles of dissolution with Secretary of State; procedure involving filing, issuance, and rejection of certificate of dissolution; time of cessation of existence of electric membership corporation.

1. The electric membership corporation shall cause the original articles of dissolution and two conformed copies of the articles to be delivered to the Secretary of State for filing as provided in subsection (a) of Code Section 46-3-174.
2. Together with the articles of dissolution, the electric membership corporation shall cause to be delivered to the Secretary of State:
   1. The electric membership corporation’s certification that all tax returns which were due the state on the day of delivery of the articles of dissolution to the Secretary of State have been filed, such certification to be attached to the articles;
   2. Payment to the Secretary of State of the fee provided for in Code Section 46-3-501; and
   3. A check, draft, or money order in the amount of $16.00, payable to the clerk of the superior court of the county where the registered office of the electric membership corporation is located on the day of delivery of the articles of dissolution to the Secretary of State, in payment of the cost of filing the articles of dissolution in the county.
3. Upon delivery of the articles of dissolution to the Secretary of State, the Secretary of State shall affix thereon the hour, day, month, and year of delivery. Not later than the close of business on the first business day following the day of delivery, the Secretary of State shall either issue a certificate of dissolution in the manner provided in this Code section or reject the articles in the manner provided in this Code section.
4. If the Secretary of State finds that the articles of dissolution appear to be in proper form for filing and are accompanied by the other items required by subsection (b) of this Code section, he shall, in addition to the requirements of subsection (a) of Code Section 46-3-174:
   1. Issue a certificate of dissolution which shall state that the electric membership corporation has been dissolved by the filing of articles of dissolution in the office of the Secretary of State and the fees paid therefor, as provided by law, and attach the certificate to one conformed copy of the articles of dissolution;
   2. Return the certificate of dissolution with the conformed copy of the articles of dissolution attached thereto to the electric membership corporation or its representative. A copy of the certificate of dissolution shall be attached to the original articles of dissolution; and
   3. Forward a conformed copy of the articles of dissolution with a copy of the certificate of dissolution attached thereto, along with the check, draft, or money order provided for in paragraph (3) of subsection (b) of this Code section, to the clerk of the superior court in the county where the registered office of the electric membership corporation is located, within four business days after the articles of dissolution have been delivered to the Secretary of State for filing.
5. If the Secretary of State finds that the articles of dissolution do not appear to be in proper form for filing or are not accompanied by the other items required by subsection (b) of this Code section, he shall reject the articles for filing and shall immediately notify the electric membership corporation or its representative of such rejection by mailing a notice no later than the close of business on the first business day following the day of delivery of the articles of dissolution for filing. This notice shall specify the reason or reasons for rejection of the articles of dissolution; and the articles and all accompanying materials shall be returned therewith.
6. The conformed copy of the articles of dissolution, with a copy of the certificate of dissolution attached thereto, provided for in paragraph (3) of subsection (d) of this Code section shall be filed upon receipt by the clerk of the superior court of the county where the registered office of the electric membership corporation is located. Failure on the part of the Secretary of State to mail the conformed copy of the articles of dissolution or failure on the part of the clerk of the superior court to comply with this subsection shall not invalidate the issuance of the certificate of dissolution by the Secretary of State.
7. If the Secretary of State issues a certificate of dissolution, and after the electric membership corporation or its representative has filed a copy of its statement of intent to dissolve with the state revenue commissioner, the existence of the electric membership corporation shall cease as of the time of delivery to the Secretary of State of the articles of dissolution so certified, except for the purpose of court actions, other proceedings, and appropriate corporate actions by members, directors, and officers as provided in Code Section 46-3-439.

History. Code 1933, § 34C-1209, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-429. Commencement of actions for involuntary dissolution of electric membership corporations by superior courts.

1. If the Secretary of State determines that one of the situations described in subsection (b) of this Code section exists with regard to one or more electric membership corporations, the Secretary of State shall certify to the Attorney General the names of all such electric membership corporations, together with the facts pertinent thereto. Upon receipt of the certification from the Secretary of State, the Attorney General shall mail a notice that such certification has been made, together with a statement of the facts pertinent thereto, to the registered office of the electric membership corporation or, if there is no registered office, to the last known address of the electric membership corporation, or to an officer listed on the most recent annual report filed with the Secretary of State, or, if none is listed, to any officer, director, or incorporator of the electric membership corporation, as shown by the records of the Secretary of State.
2. In addition to any other remedies provided by law, the electric membership corporation may be dissolved involuntarily by a decree of the superior court in an action filed by the Attorney General 30 days or more after the date of mailing of the notice to the electric membership corporation under subsection (a) of this Code section, when it is established that:
   1. The electric membership corporation procured its articles of incorporation through fraud;
   2. The electric membership corporation has continued, after the written notice by the Attorney General to the electric membership corporation or one of its principal directors or officers, to violate this article in a manner likely to injure the public or the electric membership corporation’s members, creditors, or debtors, except that the Attorney General shall not file such action so long as the electric membership corporation is contesting in good faith, in any appropriate judicial or administrative proceeding, the alleged violation or violations of this article upon which the certification to the Attorney General is based;
   3. The electric membership corporation has been adjudicated bankrupt;
   4. The electric membership corporation has made a general assignment for the benefit of creditors; or
   5. By leave of court, when a receiver has been appointed in any action in which the affairs of the electric membership corporation are to be wound up.

History. Code 1933, § 34C-1210, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-430. Venue and service of process in action for involuntary dissolution.

Every action for the involuntary dissolution of an electric membership corporation shall be commenced in the name of the state by the Attorney General in the superior court of the county in which the last known registered office or principal office of the electric membership corporation, as shown by the records of the Secretary of State, is situated. Process shall issue and be served as in other civil actions.

History. Code 1933, § 34C-1211, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-431. Jurisdiction of court to liquidate assets and business of electric membership corporation.

1. The superior courts shall have full power to liquidate the assets and business of an electric membership corporation:
   1. In an action by at least 25 members or 10 percent of all of the members of the electric membership corporation, whichever is less, when it is established:
      1. That the directors are deadlocked in the management of the corporate affairs and the members are unable to break the deadlock, that irreparable injury to the electric membership corporation is being suffered or is threatened by reason thereof, and that it is impracticable for the court to appoint a provisional director as provided in Code Section 46-3-292 or to continue one in office;
      2. That the acts of the directors or those in control of the electric membership corporation are illegal or fraudulent;
      3. That the members are deadlocked in voting power and have failed, for a period which includes at least two consecutive annual meeting dates, to elect successors to directors whose terms have expired or would have expired upon the election of their successors; or
      4. That the corporate assets are being misapplied or wasted;
   2. In an action by a creditor:
      1. When the claim of the creditor has been reduced to judgment and an execution thereon returned unsatisfied, and it is established that the electric membership corporation is insolvent; or
      2. When the electric membership corporation has admitted in writing that the claim of the creditor is due and owing, and it is established that the electric membership corporation is insolvent; or
   3. Upon application by an electric membership corporation which has filed a statement of intent to dissolve, as provided in Code Section 46-3-420, to have its liquidation continued under the supervision of the court; or
   4. When an action has been filed by the Attorney General to dissolve an electric membership corporation and it is established that liquidation of its business and affairs should precede the entry of a decree of dissolution.
2. Proceedings under paragraph (1), (2), or (3) of subsection (a) of this Code section shall be brought in the county in which the registered office of the electric membership corporation is situated.
3. It shall not be necessary to make directors or members parties to any such action or proceeding unless relief is sought against them personally.

History. Code 1933, § 34C-1212, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-432. Procedure in liquidation of electric membership corporation by court.

1. In proceedings to liquidate the assets and business of an electric membership corporation, the court shall have power to issue injunctions; to appoint a receiver or receivers pendente lite with such powers and duties as the court from time to time may direct; and to take such other actions as may be required to preserve the corporate assets wherever situated and carry on the business of the electric membership corporation until a full hearing can be had.
2. After a hearing had upon such notice as the court may direct to be given to all parties to the proceedings and to any other parties in interest designated by the court, the court may appoint a liquidating receiver or receivers with authority to collect the assets of the electric membership corporation, including all amounts owing to the electric membership corporation by members. Such liquidating receiver or receivers shall have authority, subject to the order of the court, to sell, convey, and dispose of all or any part of the assets of the electric membership corporation wherever situated, either at public sale or at private sale. The assets of the electric membership corporation or the proceeds resulting from a sale, conveyance, or other disposition thereof shall be applied to the expenses of such liquidation and to the payment of the liabilities and obligations of the electric membership corporation; and any remaining assets or proceeds shall be distributed among its members and former members according to their respective rights and interests. The order appointing such liquidating receiver or receivers shall state their powers and duties. Such powers and duties may be increased or diminished at any time during the proceedings.
3. The court shall have power to allow from time to time, as expenses of the liquidation, compensation to the receiver or receivers and to attorneys in the proceeding and to direct the payment thereof out of the assets of the electric membership corporation or the proceeds of any sale or disposition of such assets.
4. A receiver of an electric membership corporation appointed under this Code section shall have authority to sue and defend in all courts in his own name as receiver of such electric membership corporation. The court appointing such receiver shall have exclusive jurisdiction of the electric membership corporation and its property, wherever situated.

History. Code 1933, § 34C-1213, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-433. Qualification of receivers; giving of bond.

1. A receiver shall in all cases be a citizen of the United States or a corporation authorized to act as receiver, which corporation may be a domestic corporation, either business or nonprofit, or a foreign corporation, either business or nonprofit, authorized to transact business in this state.
2. A receiver shall in all cases give such bond as the court may direct, with such sureties as the court may require.

History. Code 1933, § 34C-1214, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-434. Filing of claims in liquidation proceedings; effect of failure to file claims.

In proceedings to liquidate the assets and business of an electric membership corporation, the court may require all creditors of the electric membership corporation to file with the clerk of the court or with the receiver, in such form as the court may prescribe, proofs under oath of their respective claims. If the court requires the filing of claims, it shall fix a date, which shall be not less than four months from the date of the order, as the last day for the filing of claims and shall prescribe the notice that shall be given to creditors and claimants of the date so fixed. Prior to the date so fixed, the court may extend the time for the filing of claims. Creditors and claimants failing to file proofs of claim on or before the date so fixed may be barred, by order of court, from participating in the distribution of the assets of the electric membership corporation.

History. Code 1933, § 34C-1215, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-435. Discontinuance of liquidation proceedings.

The liquidation of the assets and business of an electric membership corporation may be discontinued at any time during the liquidation proceedings when it is established that cause for liquidation no longer exists. In such event, the court shall dismiss the proceedings and direct the receiver to redeliver to the electric membership corporation all of its remaining property and assets.

History. Code 1933, § 34C-1216, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-436. Entry of decree of involuntary dissolution; time of cessation of existence of electric membership corporation.

In proceedings to liquidate the assets and business of an electric membership corporation, when the costs and expenses of such proceedings and all debts, obligations, and liabilities of the electric membership corporation have been paid and discharged, or adequate provision has been made therefor, and all of its remaining property and assets distributed to its members or former members, or adequate provision has been made therefor, or such property and assets have been deposited with the Office of the State Treasurer as provided in Code Section 46-3-438, or if its property and assets are not sufficient to satisfy and discharge such costs, expenses, debts, and obligations and all of the property and assets have been applied so far as they will go to their payment, the court shall enter a decree dissolving the electric membership corporation. Upon the filing of the decree with the clerk of the court, the existence of the electric membership corporation shall cease.

History. Code 1933, § 34C-1217, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2008, p. 230, § 2/SB 175; Ga. L. 2010, p. 863, § 2/SB 296.

The 2008 amendment, effective July 1, 2008, substituted “Office of Treasury and Fiscal Services” for “Department of Administrative Services” in the middle of the first sentence.

The 2010 amendment, effective July 1, 2010, substituted “Office of the State Treasurer” for “Office of Treasury and Fiscal Services” in the middle of the first sentence.

46-3-437. Filing of decree of involuntary dissolution; giving of notice of entry of decree.

1. If the court enters a decree dissolving an electric membership corporation, it shall be the duty of the clerk of the court to cause a certified copy of the decree to be filed with the Secretary of State. No fee shall be charged by the Secretary of State for the filing of this certified copy or for giving the notice required by subsection (b) of this Code section.
2. The Secretary of State shall give notice of the decree dissolving the electric membership corporation and of the date of its entry to:
   1. The clerk of the superior court of the county where the electric membership corporation’s last known registered office or principal office, as shown by the records of the Secretary of State, is situated, if such decree has been entered by the superior court of another county; and
   2. The clerk of the superior court of the county where the electric membership corporation’s articles of incorporation were filed, if such decree has been entered by the superior court of another county.

      No fee shall be charged by such clerks for receiving and filing the notice required by this subsection.

History. Code 1933, § 34C-1218, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-438. Deposit with Office of the State Treasurer of amount due unknown, disabled, or unlocatable creditors or members; disposition of unclaimed amounts; time limitation.

Upon the voluntary or involuntary dissolution of an electric membership corporation, the portion of the assets distributable to a creditor or member who is unknown or cannot be found, or who is under disability and has no known representative legally competent to receive such distributive portion, shall be reduced to cash and deposited with the Office of the State Treasurer and shall be paid over to such creditor or member or to his legal representative upon proof satisfactory to the Office of the State Treasurer of his right thereto. After the Office of the State Treasurer has held the unclaimed cash for six months, the Office of the State Treasurer shall pay such cash to the Board of Regents of the University System of Georgia, to be held without liability for profit or interest until a claim for such cash shall be filed with the Office of the State Treasurer by the parties entitled thereto. No such claim shall be made more than six years after such cash is deposited with the Office of the State Treasurer.

History. Code 1933, § 34C-1219, enacted by Ga. L. 1981, p. 1587, § 1; Ga. L. 2008, p. 230, § 2/SB 175; Ga. L. 2010, p. 863, § 2/SB 296.

The 2008 amendment, effective July 1, 2008, substituted “Office of Treasury and Fiscal Services” for “Department of Administrative Services” throughout this Code section.

The 2010 amendment, effective July 1, 2010, substituted “Office of the State Treasurer” for “Office of Treasury and Fiscal Services” six times throughout this Code section.

46-3-439. Survival of remedy after dissolution.

The dissolution of an electric membership corporation in any manner, except by a decree of court when the court has supervised the liquidation of the assets and business of the electric membership corporation as provided in this article, shall not take away or impair any remedy available to or against such electric membership corporation or its directors, officers, or members for any right or claim existing, or any liability incurred, prior to such dissolution if an action or other proceeding thereon is pending on the date of such dissolution or is commenced within two years after the date of such dissolution. Any such action or proceeding by or against the electric membership corporation may be prosecuted or defended by the electric membership corporation in its corporate name. The members, directors, and officers shall have power to take such corporate or other action as shall be appropriate to protect such remedy, right, or claim.

History. Code 1933, § 34C-1220, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-440. Revival of electric membership corporation after dissolution by expiration of period of duration.

An electric membership corporation that has been dissolved by the expiration of its period of duration but which has continued in business in ignorance of such expiration may revive its corporate existence by amending its articles of incorporation at any time during a period of 15 years immediately following the expiration date fixed by the articles of incorporation so as to extend its period of duration. As of the effective date of the amendment, the corporate existence shall be deemed to have continued without interruption from the expiration date. If during the period between expiration and revival the name of the electric membership corporation has been assumed, reserved, or registered by any other electric membership corporation, the revived electric membership corporation shall not engage in business until it has amended its articles of incorporation to change its name.

History. Code 1933, § 34C-1221, enacted by Ga. L. 1981, p. 1587, § 1.

46-3-450. Requirement of obtaining certificate of authority by foreign electric cooperative; applicability of state laws generally; acts not constituting transaction of business in this state.

1. No foreign electric cooperative shall have the right to transact business in this state until it shall have procured a certificate of authority to do so from the Secretary of State. No foreign electric cooperative shall be entitled to procure a certificate of authority under this article to transact in this state any business which an electric membership corporation organized under the laws of this state is not permitted to transact; and no foreign electric cooperative shall be entitled to procure a certificate of authority to transact any business in this state which under any of the laws of this state a foreign electric cooperative is not permitted to transact. Any foreign electric cooperative to which a certificate of authority is granted shall be subject to all licensing and regulatory statutes of this state relating to businesses of the kind which the foreign electric cooperative proposes to transact in this state. A foreign electric cooperative shall not be denied a certificate of authority by reason of the fact that the laws of the state under which such foreign electric cooperative is organized governing its organization and internal affairs differ from the laws of this state; and nothing contained in this article shall be construed to authorize this state to regulate the organization or the internal affairs of such foreign electric cooperative.
2. Without excluding other activities which may not constitute transacting business in this state, a foreign electric cooperative shall not be considered to be transacting business in this state, for the purposes of qualification under this article, solely by reason of carrying on in this state any one or more of the following activities:
   1. Maintaining or defending any action or any administrative or arbitration proceeding, or effecting the settlement thereof or the settlement of claims or disputes;
   2. Holding meetings of its directors or members or carrying on other activities concerning its internal affairs;
   3. Maintaining bank accounts, or share accounts in savings and loan associations, custodian or agency arrangements with a bank or trust company, or stock or bond brokerage accounts;
   4. Securing or collecting debts or enforcing any rights in property securing the same;
   5. Effecting transactions in interstate or foreign commerce;
   6. Owning and controlling a subsidiary electric membership corporation or other corporation incorporated in or transacting business within this state; or
   7. Conducting an isolated transaction not in the course of a number of repeated transactions of like nature.
3. This Code section shall not be deemed to establish a standard for activities which may subject a foreign electric cooperative to taxation or to service of process under any of the laws of this state.