South Carolina Supreme Court Rules Municipality Possessed the Sole Right to Provide Electric Service Following Annexation
In City of Newberry v. Newberry Electric Cooperative, Inc. , the South Carolina Supreme Court reversed the South Carolina Court of Appeals’ decision holding that the Newberry Electric Cooperative (Cooperative) could provide electric service to an area owned by Wal-Mart and annexed by the City of Newberry (City). When Wal-Mart begin negotiations to construct a store on the site, the area was assigned to the Cooperative by the South Carolina Public Service Commission pursuant to the South Carolina Electric Cooperative Act, S.C. Code Ann. §§ 33-49-10, et. seq. (2006 and Supp. 2008) (Electric Cooperative Act). On June 21, 1999, the Cooperative and Wal-Mart entered into agreements for the Cooperative to provide electric service to the property. On June 27, 1999, the City annexed the property. Generally speaking, a municipality enjoys an absolute right to provide electric service to property it annexes. In the event that an electric cooperative is providing electric service to property pri