Compensation for Customers Affected by Pensacola Natural Gas Fees Settlement Announcement

Settlement Announcement for Pensacola Natural Gas Customers



If you have been a natural gas customer in Pensacola, also known as Pensacola Energy or the Energy Services of Pensacola, since August 6, 2011, and your service address was located within the city limits, you could be eligible for financial compensation from a recently approved class action settlement. This announcement comes following the case of Eric L. Frank v. City of Pensacola, which was overseen by the Kroll Settlement Administration.

Background of the Lawsuit


The lawsuit was initiated based on claims that the city wrongfully charged franchise fees to its natural gas customers. The allegations brought forth two primary points:
1. Improper Fee Assessment: It was contended that city officials lacked the authority to pass franchise fees onto customers, which should have been collected solely by the city’s gas utility department.
2. Unlawful Charges: The franchise fees charged were argued to be invalid municipal user fees and instead constituted unlawful taxes, violating the Florida Constitution's Tax Preference Doctrine.

Additionally, the city had levied a Public Service Tax on these franchise fees, rendering the tax on customers also inappropriate and necessitating refunds to be issued.

Settlement Details


The court's final judgement barred the City of Pensacola from continuing to impose these franchise fees on its customers. The settlement includes a total allocation of $12.6 million designated for reimbursements to current and former natural gas customers.

Who is Eligible?


  • - Current Customers: Those who are still customers of the city’s natural gas service will automatically receive refund checks in the mail, without the need for any further action.
  • - Former Customers: If you are no longer a natural gas customer, you must submit a claim to receive your share of the settlement. Valid claims from former customers will be paid in a timely manner upon verification by the settlement administrator.

Process for Former Customers


Former customers need to complete and submit a Claim Form, providing the necessary documentation by mail or online. They have until one year after the initial notification process is completed to file their claims. More information on how to file a claim is available at PensacolaNaturalGasClassActionSettlement.com.

Consequences if You Take No Action


Existing customers, unless the city is involved, will automatically receive their compensation if no actions are taken. However, former customers who choose not to file a claim will forfeit their rights to any benefits from this settlement, leaving them unable to pursue further legal action regarding the issues raised in the case.

In conclusion, this settlement represents a significant move by the court to rectify the financial burdens imposed on natural gas consumers in Pensacola. For further information, including detailed settlement agreements and necessary documents, visit the official website or contact the Kroll Settlement Administration at the provided resources.

The outcome of this case not only provides financial relief but also establishes a precedent concerning the authority of municipal bodies in fee assessments and tax-related issues. For those affected, it is an essential step towards fairness and responsibility in public utility management.

Topics General Business)

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