City of Lithonia v. Ga. Public Svc. Comm

In City of Lithonia v. Ga. Public Svc. Comm., 238 Ga. 339 (232 SE2d 832) (1977), the Supreme Court of Georgia rejected an attack by a number of cities on the same "LT" rate schedule under which the PSC decided this matter, and concerning the same four percent franchise fee the municipalities in this case now seek to preserve. Noting that: "The process of setting rates is not required to follow any particular course, so long as the end result does not violate the 'just and reasonable' requirement," the Supreme Court held that the PSC had the power to determine that any franchise fee greater than four percent of usage revenue should be "charged back to the residents of the political subdivision who would benefit from the increased franchise payments." Id. at 341 (2).