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After Loss In Court, Georgia City Eyes Other Avenues To Act As Competitive Retail Gas Supplier

April 15,2019

The City of Marietta Georgia won't appeal a recent decision from the Court of Appeals which overruled a lower court and upheld a Georgia PSC decision denying the city's application -- via the entity Marietta Natural Gas LLC -- to become a certified natural gas marketer in Georgia's competitive market.

However, the City is exploring other avenues to become a competitive retail natural gas marketer

Tim Echols, Vice-chairman of the Georgia PSC, discussed the case at the National Energy Marketers Association (NEM) 22nd Annual National Energy Restructuring Conference in Washington

In brief, the Appeals court said that the PSC was correct to deny the city's marketer application on the ground that the statute provides that a marketer certificate may be granted to a "person." A city is not a person under the relevant statute. While the city did create an LLC to meet the definition of a person, the Appeals court found that the Marietta Board of Light and Waterworks (BLW) was not authorized to create an LLC under its charter

The BLW under its charter is specifically authorized to create, "non-profit corporations," and the Appeals court said that an LLC is not a corporation

"Because the charter required the BLW to create a wholly owned subsidiary in the form of a non-profit corporation rather than an LLC, its creation of an LLC was an ultra vires act, and the PSC was therefore authorized to dismiss MNG’s application for certification," the Appeals court said

While the City won't appeal the decision, the Marietta Daily Journal reports that the city is evaluating other avenues to create a competitive natural gas marketer, including creating a non-profit entity that would comply with the charter

Georgia   Natural gas   Marietta Natural Gas  

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