The defendant, hereinafter called the Power Company, enumerates as error the overruling of its renewed general demurrers to the amended petition against it for declaratory judgment, on the ground that it does not set forth adequate grounds for relief by declaratory judgment. The controversy as alleged by the petitioner, hereinafter called the City, concerns rights claimed by the Power Company to continue to operate the electric distribution system which it has operated since 1929 under a franchise granted to it by the City. In 1929 the City sold the electric light and power plant and distribution system which it then owned to the Power Company, and granted the Power Company the franchise to operate the system. The City contends that the resolutions and ordinances under which it granted the franchise in 1929 were ultra vires and it had no right to grant the franchise and these acts were void and gave no rights to the Power Company. The City has the right under its charter to erect and operate its own electric light and power plant and its commission has passed resolutions determining to do so and to provide funds therefor by the issuance and sale of bonds, and to call an election upon the question of the bond issue. The City has determined that it is not economically feasible for it to proceed with this undertaking unless it has exclusive rights, and the commission has passed a resolution to prohibit all others from engaging in this business. The City is about to undertake expenditures of public funds preliminary to carrying out the commission’s resolutions, including costs of obtaining plans for construction of the power plant and estimates of its cost, in order to ascertain the amount of money necessary to be raised by the bond issue, and costs of holding the bond election. The date set for the election has been postponed pending the outcome of this suit. The petition further alleges that before proceeding with the undertaking it is necessary to have guidance by judicial declaration that the resolutions and ordinances enacted in 1929 and the Power Company’s franchise granted thereunder are null and void and that the City has the right to prohibit the Power Company from its activities and operations under the purported franchise.
A declaratory judgment was sought with respect to a similar controversy in City of Summerville v. Georgia Power Co.,
The trial court erred in overruling the general demurrers to the petition.
Judgment reversed.
