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

2025-01-28

Summary

Holding. Reversed. The Georgia Supreme Court reversed the lower courts' decisions and reinstated the Public Service Commission's determination that the premises were destroyed or dismantled within the meaning of the Territorial Electric Service Act, allowing Nestle to switch to Walton Electric Membership Corporation.

In 2019, Nestle Purina sought to switch its electric supplier from Georgia Power Company to Walton Electric Membership Corporation for its pet food processing facility in Hartwell, Georgia. Georgia Power objected, arguing that the Territorial Electric Service Act prevented the switch because the premises were not new and had not been sufficiently destroyed or dismantled to qualify for an exception. The Public Service Commission ruled in Nestle's favor, finding that Nestle's $300 million in renovations—including replacing structural systems, removing and replacing substantial portions of the facility, demolishing infrastructure, and converting it from a textile manufacturing facility to a food processing center—constituted destruction or dismantling of the premises such that they were not reconstructed in substantial kind. The superior court and Court of Appeals reversed, holding that the modifications did not constitute wholesale destruction as required by the statute.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Meaning of 'destroyed or dismantled' under the Territorial Electric Service Act
  • Standard of review for administrative determinations involving mixed questions of law and fact
  • Meaning of 'reconstructed in substantial kind' under the Territorial Electric Service Act
  • Whether partial destruction of a facility triggers the exception to exclusive territorial service rights

Procedural posture

After the Public Service Commission approved Nestle's request to switch suppliers, Georgia Power sought judicial review in superior court, which reversed the Commission's decision; the Court of Appeals affirmed that reversal; and the Georgia Supreme Court granted certiorari.

Authorities cited

Opinion

majority opinion

NOTICE: This opinion is subject to modification resulting from motions for reconsideration under Supreme Court Rule 27, the Court’s reconsideration, and editorial revisions by the Reporter of Decisions. The version of the opinion published in the Advance Sheets for the Georgia Reports, designated as the “Final Copy,” will replace any prior version on the Court’s website and docket. A bound volume of the Georgia Reports will contain the final and official text of the opinion.

In the Supreme Court of Georgia

Decided: January 28, 2025

S24G0314. WALTON ELECTRIC MEMBERSHIP

CORPORATION et al. v. GEORGIA POWER COMPANY.

S24G0318. NESTLE PURINA PETCARE COMPANY et al. v.

GEORGIA POWER COMPANY.

MCMILLIAN, Justice.

In 2019, Nestle Purina Petcare Company attempted to switch

its electric supplier for its wet-food manufacturing and distribution

facility in Hartwell, Georgia from Georgia Power Company to

Walton Electric Membership Corporation. Georgia Power objected

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

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

servicing the premises because they were not new premises and

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

electric suppliers. Specifically, Georgia Power argued that the

premises had long existed as a manufacturing and warehousing

facility, that the premises continued to be a manufacturing and

warehousing facility, and that the changes Nestle made to the

facility did not “destroy[] or dismantle[]” the premises in whole as

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

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

rejected Georgia Power’s argument, concluding that the premises

were “destroyed or dismantled” and that they were not

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

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

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

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

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

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

review – abuse of discretion – the Commission’s decision should have

been upheld, so we reverse.

In 2017, Nestle purchased and renovated a former warehouse

and textile manufacturing facility in Hartwell, Georgia to

manufacture and process pet food. The premises are located in

2

Georgia Power’s assigned supply territory pursuant to the

Territorial Act, and Georgia Power has provided electrical service to

the premises since they were built in 1991 as a textile

manufacturing and warehouse facility. The facility was expanded

at various points and totaled approximately 550,000 square feet by

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

manufacturing and remained vacant for the next decade until some

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

Nestle then purchased the premises for $7 million and overhauled

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

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

pursuant to an exception in the Territorial Act for premises that

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

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

“reconstructed . . . in substantial kind.” OCGA §§ 46-3-8 (a) (5); 46-3-8 (b). Georgia Power objected and filed a complaint with the

Commission, arguing that OCGA § 46-3-8 (b) entitled Georgia Power

to continue serving the premises.

3

The Commission hearing officer’s initial decision, which was

adopted and affirmed in its entirety by the full Commission,

concluded that Nestle was entitled to switch providers because its

“substantial modifications” had “destroyed or dismantled” the

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

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

live testimony from multiple witnesses called by the parties and

accepted dozens of exhibits from the parties.

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

the testimony, evidence, and contentions of the parties before

stating:

The Hearing Officer finds that Nestle removed and

replaced the electrical system and infrastructure;

removed and replaced 30 percent of the flooring and

foundation in its food processing area; removed concrete

slabs in the old weave room; changed the foundation in

the old bleachery by filling the old vats with concrete and

the old pits with ballast, structural steel, and concrete;

removed the roof above the old bleachery, the old tank

building, and some of the distribution center; demolished

the old filter press’ structural piers; demolished and

removed the old air washing pits; and demolished the old

crane system. Nestle Purina has swallowed up the old

ventilation tunnels; some interior and exterior walls; and

4

replaced the old air plenum where the new office space

sits. Additionally, Nestle Purina demolished interior

walls, made openings in other walls, and is enclosing

some exterior walls with a new building.

The Hearing Officer further finds that Nestle has

committed $220 million to prepare the Hartwell Pet Food

Facility for startup in the fall of 2019, and an additional

$80 million to reach initial full operation by the second

quarter of 2020. Nestle Purina has: (1) replaced the

wastewater treatment facility, (2) changed the overall

structure and design of the existing facility, (3)

constructed approximately 120,00 [sic] square feet of

additional buildings, (4) replaced the existing electrical

systems, (5) replaced the air handling systems, and (6)

created a food safe environment by, among other things,

sealing off and otherwise protecting the interior from

pests and other contaminants, and (7) added a freezer in

one of the new buildings.

Based on these factual findings, the Commission determined

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

were defined by dictionaries and Commission precedent. Moreover,

the Commission concluded that the premises were not reconstructed

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

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

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

primary purpose and function.”

5

After Georgia Power filed a petition for judicial review in the

superior court pursuant to the Administrative Procedure Act, OCGA

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

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

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

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

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

that renovating portions of the premises does not constitute

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

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

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

substantial kind” because “[n]otwithstanding the extensive

modifications that were completed to make the premises compatible

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

warehouse and processing facility’] and layout remains

1 OCGA § 50-13-19 (a) provides that “[a]ny person who has exhausted all

administrative remedies available within the agency and who is aggrieved by

a final decision in a contested case is entitled to judicial review under this

chapter.”

6

substantially the same.”

The Court of Appeals affirmed, see Walton Elec. Membership

Corp., 369 Ga. App. at 466 (2), concluding that the superior court did

not err in finding that for subsection (b) to apply, Nestle would have

to take apart, disassemble, or ruin completely the premises “in a

wholistic rather than partial manner,” because subsection (b)

“speaks to a reconstruction of the premises, which naturally

contemplates the premises as a whole, and there is nothing in the

plain language of the statute suggesting that” the exception applies

to partial reconstruction. Id. at 464-65 (1). Citing prior precedent

from this Court, as well as its own precedent, the Court of Appeals

reasoned that this Court has cautioned that legislative exemptions

in statutes are to be strictly construed. See Jackson Elec.

Membership Corp. v. Ga. Pub. Svc. Comm., 294 Ga. App. 253, 258

(3) (668 SE2d 867) (2008); Sawnee Elec. Membership Corp. v. Ga.

Pub. Svc. Comm., 273 Ga. 702, 704 (544 SE2d 158) (2001). The

Court of Appeals also explained that to find that a partial

modification of the premises entitles a customer to switch electric

7

suppliers would frustrate the intent of the Territorial Act.2 Walton

Elec. Membership Corp., 369 Ga. App. at 465 (1).

We granted certiorari and posed three questions:

1. Did the Court of Appeals err in interpreting

“destroyed or dismantled” and “reconstructed . . . in

substantial kind” as used in OCGA § 46-3-8 (b)?

2. What standard of review applies to the review

of the Public Service Commission’s determination of

whether the premises were destroyed or dismantled

under OCGA § 46-3-8 (b)? See, e.g., Premier Pediatric

Providers, LLC v. Kennesaw Pediatrics, P.C., 318 Ga. 350

(898 SE2d 481) (2024) (describing different standards

under which mixed findings of law and fact are reviewed);

Efficiency Lodge, Inc. v. Neason, 316 Ga. 551 (889 SE2d

789) (2023) (same).

3. Applying the appropriate standard of review,

were the trial court’s conclusions here correct?

1. Turning first to the question of what standard of review

applies to the review of the Commission’s determination of whether

the premises were “destroyed or dismantled” under OCGA § 46-3-8

(b), we start by setting out the standard for judicial review of

2 Because it agreed with the superior court that the premises were not

dismantled or destroyed, the Court of Appeals did not examine whether they

were reconstructed in substantial kind.

8

administrative decisions in the Administrative Procedure Act,

OCGA § 50-13-19 (h), which provides:

The court shall not substitute its judgment for that of the

agency as to the weight of the evidence on questions of

fact. The court may affirm the decision of the agency or

remand the case for further proceedings. The court may

reverse or modify the decision if substantial rights of the

appellant have been prejudiced because the

administrative findings, inferences, conclusions, or

decisions are:

(1) In violation of constitutional or statutory provisions;

(2) In excess of the statutory authority of the agency;

(3) Made upon unlawful procedure;

(4) Affected by other error or law;

(5) Clearly erroneous in view of the reliable, probative,

and substantial evidence on the whole record; or

(6) Arbitrary or capricious or characterized by abuse of

discretion or clearly unwarranted exercise of

discretion.

We have held under this provision that “[j]udicial review of an

administrative decision requires the court to determine that the

findings of fact are supported by ‘any evidence’ and to examine the

soundness of the conclusions of law that are based upon the findings

of fact,” and that “[w]hile the judiciary accepts the findings of fact if

there is any evidence to support the findings,” “the court is

statutorily required to examine the soundness of the conclusions of

9

law drawn from the findings of fact supported by any evidence, and

is authorized to reverse or modify the agency decision upon a

determination that the agency’s application of the law to the facts is

erroneous.” Pruitt Corp. v. Ga. Dept. of Community Health, 284 Ga.

158, 160-61 (3) (664 SE2d 223) (2008) (citing OCGA § 50-13-19 (h)).

However, neither OCGA § 50-13-19 (h), nor Pruitt Corp., nor

other similar cases involving judicial review of administrative

decisions explicitly address the situation here where we have a

mixed question of law and fact. We have, however, recently

addressed this situation in other contexts. In Efficiency Lodge, Inc.

v. Neason, 316 Ga. 551 (889 SE2d 789) (2023), we explained what

constituted a mixed question of law and fact in that case:

[T]he question whether a landlord-tenant relationship

has been created is a mixed question of fact and law. The

transfer of the right of possession is established by

reference to historical facts—for example, evidence that a

renter installed locks or put up a fence, or that the

property owner told her he would allow her to live there.

But the ultimate question is not merely what happened

in the real world, but whether what happened is properly

characterized as a “grant[ ]” and “accept[ance]” of “the

right simply to possess and enjoy the use of” the property.

OCGA § 44-7-1. Such questions, which require a nuanced

10

judgment whether given historical facts meet or add up to

an abstract legal concept or standard—a “landlord-tenant

relationship,” or “adverse possession,” or “domicile,” for

instance—are mixed questions of law and fact.

316 Ga. at 565 n.6 (2) (b) (ii). See also, e.g., Premier Pediatric

Providers, LLC v. Kennesaw Pediatrics, P.C., 318 Ga. 350, 355 (2)

(898 SE2d 481) (2024) (explaining that whether there has been an

unreasonable delay in the filing of the transcript for appeal is a

mixed question of law and fact).

Such mixed questions of law and fact are generally reviewed

for an abuse of discretion because the trial court is generally best

suited to weigh the evidence presented to it and assess whether the

legal standard has been met.3 See Premier, 318 Ga. at 356-57 (2).

3 As we explained in Premier,

[t]his is not to say that all mixed findings are reviewed for abuse

of discretion. For instance, a “mixed question of constitutional

law,” even if “fact-intensive,” generally calls for de novo

review. Efficiency Lodge, 316 Ga. at 565 (2) (b) (ii) n.6 (889 SE2d

789) (punctuation omitted) (quoting Lilly v. Virginia, 527 U.S. 116,

136-137 (V) (119 SCt 1887, 144 LE2d 117) (1999) (reasoning that

for “fact-intensive, mixed questions of constitutional law, ...

independent review is necessary to maintain control of, and to

clarify, the legal principles governing the factual circumstances

necessary to satisfy the protections of the Bill of Rights” (cleaned

up))).

318 Ga. at 356 n.3 (2).

11

But a litigant challenging a court’s evaluation of such mixed

predicate questions can “attack[] conclusions of law . . . or findings

of fact . . . that are made along the way to the predicate findings,”

and “[t]hose subsidiary legal conclusions and factual findings are

reviewed on appeal de novo and for clear error respectively, . . . and

if error is found in reviewing those conclusions and findings, that

informs the ultimate judgment whether the trial court abused its

discretion in making the predicate findings,” which “will generally

not be disturbed as long as they are within the bounds of the law,

based on ‘correct,’ ‘relevant’ facts, and within the range in which

reasonable jurists could disagree.” Id. This standard of review is

consistent with OCGA § 50-13-19 (h) (6) (allowing reversal of agency

determination under an “abuse of discretion” standard) and is also

consistent with the standards enunciated in Pruitt Corp.

Here, while the issue of the meaning of “destroyed or

dismantled” and reconstructed “in substantial kind” under OCGA §

46-3-8 (b) is a subsidiary question of law, and the issue of what

renovations and modifications Nestle made to the premises is an

12

evidentiary question of fact, the ultimate issue of whether those

evidentiary facts meet or add up to that legal standard as set forth

in the statute is a mixed question of law and fact. And because this

type of mixed question requires a nuanced, case-by-case

characterization, assessment, or judgment of whether the given

historical facts are properly characterized as meeting the legal

standard of “destroyed or dismantled” and “reconstructed . . . in

substantial kind,” we conclude that this mixed question is reviewed

for an abuse of discretion. See Premier, 318 Ga. at 355 (2) (applying

abuse of discretion standard to mixed question of law and fact).

2. Having clarified the correct standard of review, we turn

to the merits. We recognize that the issue of whether the premises

were “destroyed or dismantled” and “reconstructed . . . in

substantial kind,” as posed in our first certiorari question, turns on

the meaning of the relevant terms as used in OCGA § 46-3-8, and

that is a subsidiary legal question that we review de novo. See

North American Senior Benefits, LLC v. Wimmer, 319 Ga. 641, 644

(2) (906 SE2d 373) (2024).

13

“When we consider the meaning of a statute, we must presume

that the General Assembly meant what it said and said what it

meant.” Deal v. Coleman, 294 Ga. 170, 172 (1) (a) (751 SE2d 337)

(2013) (citation and punctuation omitted). We therefore look to the

text of the statute, give the language its plain and ordinary

meaning, view it in the context in which it appears, and read it in

its most natural and reasonable way, as an ordinary speaker of the

English language would. See id. See also Golden v. Floyd

Healthcare Mgmt., Inc., 319 Ga. 496, 501 (3) (904 SE2d 359) (2024);

Synovus Bank v. Kelley, 309 Ga. 654, 657 (1) (847 SE2d 592) (2020).

“We determine the ordinary public meaning of legal text by

considering the meaning the text had at the time it was enacted.”

City of Winder v. Barrow County, 318 Ga. 550, 555 (1) (899 SE2d

157) (2024). In so doing, we typically “refer to the rules of English

grammar, inasmuch as those rules are the guideposts by which

ordinary speakers of the English language commonly structure

their words[.]” State v. SASS Group, LLC, 315 Ga. 893, 900-01 (2)

(b) (885 SE2d 761) (2023) (citation and punctuation omitted). As

14

always, “context is a critical determinant of meaning.” McBrayer v.

Scarbrough, 317 Ga. 387, 394 (2) (d) (893 SE2d 660) (2023).

OCGA § 46-3-8 (a) (5) provides:

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 . . .

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 . . . (5) By any

electric supplier if the premises are located outside the

limits of a municipality.

OCGA § 46-3-8 (b), in turn, provides:

Notwithstanding any other provision of this part, . . .

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.

It is undisputed that under the rules and regulations set forth in the

Territorial Act, Nestle’s premises are located within electric supplier

15

Georgia Power’s assigned area and that the premises were not brand

new such that Nestle had the right under OCGA § 46-3-8 (a) (5)

alone to select any electric supplier. Instead, Nestle claims that the

premises are deemed “new” under OCGA § 46-3-8 (a) & (b).

Although subsection (b) is drafted from the perspective of the

electric supplier that has the exclusive right to continue serving the

premises (here, Georgia Power), it must be read in conjunction with

subsection (a), which permits a customer to select “any electric

supplier” upon meeting several conditions including that the

premises are “new.” However, subsection (a) is explicitly made

“subject to” subsection (b). Reading subsections (a) and (b) together,

it follows that an electric supplier for an assigned area does not have

the exclusive right to continue serving the premises if the premises

have been “destroyed or dismantled” and though reconstructed, are

not “reconstructed . . . in substantial kind.” See Crowder v. State,

309 Ga. 66, 70-71 (2) (a) (844 SE2d 806) (2020) (reading related

statutory subsections together in context). Such premises are

treated as “new premises” under subsection (a), permitting a large16

load consumer to choose another electric supplier to service such

premises pursuant to that provision. Therefore, whether Nestle

may choose Walton EMC as its electric provider, as the Commission

originally ruled, or whether Georgia Power is entitled to be Nestle’s

exclusive electric provider, as the superior court and the Court of

Appeals ruled, depends on whether the subject premises were

“destroyed or dismantled” and “reconstructed . . . in substantial

kind” under the statute.

(a) Turning to the phrase “destroyed or dismantled,” we

acknowledge that the Territorial Act does not define those terms, so

we must interpret that phrase according to its ordinary public

meaning at the time the statute was enacted in 1973. See Barrow

County, 318 Ga. at 555 (1). Relying on dictionaries,4 the parties

appear to be in agreement that the ordinary public meaning of

“destroy” is “to ruin the structure, organic existence, or condition of,”

4 “Dictionaries are often helpful in ascertaining the ordinary meaning of

a word that is not defined in a statute, but they cannot be the definitive source

of ordinary meaning in questions of textual interpretation because they are

acontextual, and context is a critical determinant of meaning.” City of Winder,

318 Ga. at 555 (1) (citation and punctuation omitted).

17

Webster’s Third New International Dictionary, Destroy, 615, G. & C.

Merriam Co., Springfield, MA (1969), “[t]o ruin completely; spoil” or

“[t]o tear down or break up; raze; demolish.” The American Heritage

Dictionary, Destroy, 358, American Heritage Publishing Co., Inc.,

New York, NY (1973).5

However, the parties depart on their understanding of the term

“dismantled,” with Georgia Power asserting that “dismantled”

means wholesale destruction, and Walton EMC and Nestle arguing

that the whole premises need not be destroyed for the premises to

be “dismantled.” At the time OCGA § 46-3-8 (b) was enacted,

Webster’s Third New International Dictionary defined “dismantle”

as

1: to strip or deprive of dress or covering: DIVEST,

UNCLOAK 2: to strip of furniture and equipment or

significant contents <~ a house that is to be razed> <~ a

ship before scrapping it>; specif: to strip of guns, walls,

and defenses <~ a fort> <~ a town> 3: to wear down: do

away with: RAZE, DESTROY; also: ANNUL, RESCIND

<~ price controls after the war> 4: to take to pieces:

DISMOUNT syn see STRIP.

5 The Commission also purported to apply dictionary definitions of

“destroy” (without citations to which dictionaries): “to ruin completely; spoil; 2. To tear down or break up; demolish . . . .”

18

Webster’s Third New International Dictionary, Dismantle, 651-52,

G. & C. Merriam Co., Springfield, MA (1969). The American

Heritage Dictionary defined “dismantle” as

To strip (a house, for example) of furnishings or

equipment. 2. To take apart; tear down. 3. To strip of

clothing or covering. [Old French desmanteler: des-, from

Latin dis- (removal) + mantel, MANTLE.].

The American Heritage Dictionary, Dismantle, 379, American

Heritage Publishing Co., Inc., New York, NY (1973).

These definitions do not conclusively resolve the question of the

extent of changes that must be made for the premises to be

“dismantled,” especially because at least one definition of

“dismantle” includes the term “destroy.” See Webster’s Third New

International Dictionary, Dismantle, 651-52, G. & C. Merriam Co.,

Springfield, MA (1969). 6 So we turn to the grammatical and

statutory context for more clues, looking at the phrase “destroyed or

6 See also Antonin Scalia & Bryan A. Garner, Reading Law: The

Interpretation of Legal Texts 422 (2012) (urging caution in using Webster’s

Third New International Dictionary “because of its frequent inclusion of

doubtful, slipshod meanings without adequate usage notes”).

19

dismantled.” (emphasis supplied). We have long observed that “the

word ‘or’ is generally used in a disjunctive sense to signal

alternatives.” Ford Motor Co. v. Cosper, 317 Ga. 356, 359 (2) (893

SE2d 106) (2023) (noting that “or” carries a “usual disjunctive

sense”). There is nothing in the text of OCGA § 46-3-8 (b) that gives

a clear indication that the usual disjunctive sense is not meant here.

See Gearinger v. Lee, 266 Ga. 167, 169 (2) (465 SE2d 440) (1996).7

Georgia Power also argues that because the term

“reconstructed” refers back to “dismantled,” and because

“reconstructed” means “to construct again,” a premises has to be

totally destroyed or dismantled to be “reconstructed.” We do not find

that argument persuasive because we do not see why a premises

that is “dismantled” in substantial part cannot be “constructed

again,” at least as to the part that was dismantled. However, the

phrase “reconstructed . . . in substantial kind” does indicate that the

7 Georgia Power argues that the use of the past tense of “destroyed” and

“dismantled” indicates that the two are “equivalencies describing the state of

the premises, not alternatives.” We disagree and do not see the tense of the

words as a “clear indication” that the disjunctive was not intended here.

20

destruction or dismantling must at least be to a degree substantial

enough that a reconstruction would be required to return the

premises to “substantial kind.” Accordingly, to give full effect to

each word in the phrase “destroyed or dismantled,” read in context,

we conclude that “destroyed” refers to the complete ruination or

tearing down or breaking down of the premises, while “dismantled”

means something less, which may, for example, be accomplished by

substantially taking apart or substantially stripping away a

building’s structural components, furniture, equipment, or other

significant contents, without the added requirement of entire

destruction.8 See Middleton v. State, 309 Ga. 337, 342 (3) (846 SE2d

73) (2020) (“[C]ourts generally should avoid a construction that

makes some statutory language mere surplusage.”).

Georgia Power argues, however, that dismantled must be

construed narrowly to mean wholesale destruction because

“legislative exceptions in statutes are to be strictly construed and

8Relying on dictionary definitions and its own precedent, the

Commission utilized similar definitions of these terms.

21

should be applied only so far as their language fairly warrants. All

doubts should be resolved in favor of the general statutory rule,

rather than in favor of the exemption.” Sawnee, 273 Ga. at 704

(cleaned up). 9 While it is true that Sawnee enunciated this principle,

it did so by recognizing that this principle is limited by what the

statutory language “fairly warrants.” Id. We thus read Sawnee’s

admonition to “strictly construe” statutory exceptions as bounded by

the plain language of the exception and only applying if there is an

ambiguity after applying all tools of construction. As recently

explained by the United States Supreme Court, statutory exceptions

should be “read fairly, not narrowly, for they are no less part of

Congress’s work than its rules and standard—and all are worthy of

a court’s respect.” HollyFrontier Cheyenne Refining, LLC v.

9 Although Sawnee characterizes OCGA § 46-3-8 (a) as providing a

statutory exception to allow “a consumer to choose an electric supplier different

from the one assigned,” some of us question whether that characterization is

correct. Sawnee, 273 Ga. at 703. Moreover, the statute’s reference to premises

which “have been destroyed or dismantled and . . . reconstructed . . . in

substantial kind” merely describes premises over which a supplier maintains

exclusive service rights under OCGA § 46-3-8 (b), so it is not clear to some of

us that the question about whether the premises do or do not meet that

description is even a question about whether to apply a statutory exception.

22

Renewable Fuels Assn., 594 US 382, 396 (2) (B) (141 SCt 2172, 210

LE2d 547) (2021) (cleaned up). This reasoning is consistent with

how this Court construes legal text. See Johnson v. State, 304 Ga.

369, 372 (818 SE2d 601) (2018) (“Legislative exceptions in statutes

should be interpreted according to the rules of construction . . . and

applied only so far as their language fairly warrants.”) (citation and

punctuation omitted).

We hold therefore that the Court of Appeals erred in

interpreting “destroyed or dismantled,” as used in OCGA § 46-3-8

(b), to require the premises to be taken apart, disassembled, or

ruined “in a wholistic rather than partial manner.” 369 Ga. App. at

464.

(b) Turning now to the phrase “reconstructed . . . in

substantial kind” as used in OCGA § 46-3-8 (b), we note, as an initial

matter, that the Court of Appeals did not reach the question of

whether the premises met this requirement because it affirmed

based on its misinterpretation of “destroyed or dismantled.”

However, the Court of Appeals upheld the superior court’s ruling,

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which construed the meaning of “reconstructed . . . in substantial

kind” and concluded that the Commission wrongly determined that

the premises were not reconstructed in substantial kind. Because

this issue was decided by the superior court and is within the scope

of our first certiorari question, it is ripe for our review. See Barnes

v. Turner, 278 Ga. 788, 790 (1) n.9 (606 SE2d 849) (2004).

Because the Territorial Act also does not define “reconstructed”

or “in substantial kind,” we start with the original public meaning

of those terms at the time of its enactment, looking again to

dictionaries contemporaneous with the enactment of the statutory

language. See Barrow County, 318 Ga. at 555. Webster’s Third New

International Dictionary defined “reconstruct” as “to construct

again: . . . to build again: . . . to make over: . . . to put together again:

. . .” Webster’s Third New International Dictionary, Reconstruct,

1897, G. & C. Merriam Co., Springfield, MA (1969), and defined

“substantial,” in relevant part, as “something of moment: an

important or material matter, thing, or part.” Id. at 2280. The

American Heritage Dictionary defined “reconstruct” quite simply as

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“[t]o construct again,” The American Heritage Dictionary,

Reconstruct, 1089, American Heritage Publishing Co., Inc., New

York, NY (1973), and defined “substantial,” in relevant part, as

“[c]onsiderable in importance, value, degree, amount, or extent: won

by a substantial margin.” Id. at 1284.

We have no trouble concluding, nor do the parties disagree,

that “reconstructed . . . in substantial kind” means reconstructed

premises that are largely, but not wholly, of the same fundamental

nature or quality as they were previously. 10 Accordingly, taken

together, we construe the phrase “destroyed or dismantled and

which are reconstructed . . . in substantial kind” in OCGA § 46-3-8

(b) as extending an electric supplier’s exclusive right to continue

serving premises if, among other things: (a) the premises are

completely ruined or torn or broken down, or (b) short of entire

destruction, the premises are substantially taken apart or the

This construction is consistent with how the Commission and the

10

superior court defined the phrase, although the superior court in applying that

definition ultimately concluded that the premises were “reconstructed . . . in

substantial kind.”

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premises’ structural components, furniture, equipment, or other

significant contents are substantially stripped away; and (c) the

premises are constructed again largely, but not wholly, of the same

fundamental nature or quality as they were previously.

3. We now turn to the third question posed on certiorari:

whether the courts below erred in reversing the Commission’s

decision under the appropriate standard of review. As for the

Commission’s findings of fact, we conclude that they were supported

by the evidence. Indeed, the superior court agreed that “[t]he

hearing officer’s findings of fact . . . are clearly supported by the

evidence,” and the Court of Appeals saw no error in those findings.

See Walton Elec. Membership Corp., 369 Ga. App. at 466 (2) (“[W]e

find no evidence of the [superior] court substituting its findings for

that of the Commission.”). Those findings included that Nestle spent

$300 million dollars (nearly 43 times the purchase price) changing

the structure and design of the previous facility, adding exterior

walls, removing interior walls, removing roofing, demolishing

infrastructure and systems, removing some buildings in part or in

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whole, constructing new buildings, replacing its wastewater

treatment and drainage systems to be specific to Nestle’s operations,

replacing the electrical systems and infrastructure, replacing the airhandling systems with specialized systems for Nestle’s operations,

removing and replacing flooring and foundation, making various

other additions specific for operating a wet-food processing center

and creating a food-safe environment, installing all new equipment,

and sealing off and filling in horizontal branch and vertical ducting

systems with rebar and concrete.

However, as described above, the courts below erred in

concluding that because there was not a wholesale ruin of the

premises, they were not “destroyed or dismantled” under OCGA §

46-3-8 (b). Instead, applying the correct construction of “destroyed

or dismantled,” we have no difficulty determining that the

Commission did not abuse its discretion in concluding that Nestle’s

premises were “destroyed or dismantled” given the factual findings

about the substantial modifications to the premises and

construction of new buildings. Moreover, despite Georgia Power’s

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arguments that the premises were reconstructed in substantial kind

because the premises remained a manufacturing and warehousing

facility, we see no abuse of discretion in the Commission’s

determination that “[t]here are countless differences between the

[textile facility] and Nestle[’s pet food processing facility] in terms of

both physical appearance and structure, and primary purpose and

function,” such that the premises were not “reconstructed . . . in

substantial kind.” Accordingly, we conclude that the Court of

Appeals erred in affirming the superior court’s reversal of the

Commission’s decision.

Judgment reversed. All the Justices concur, except Ellington

and Colvin, JJ., not participating.

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