The City of Pensacola has agreed to a $12.6 million settlement following a class action lawsuit over natural gas franchise fees. This settlement is important because it offers compensation to residents and businesses who were natural gas customers within the Pensacola city limits from August 6, 2011, to the present.
Who Qualifies for the Pensacola Natural Gas Settlement
Eligibility is limited to individuals and businesses that used natural gas services from the City of Pensacola, also known as Pensacola Energy or Energy Services of Pensacola.
You may qualify if:
- You had a natural gas account with the City of Pensacola at any time since August 6, 2011.
- Your service address was located inside the Pensacola city limits.
The settlement class is divided into two groups:
- Current customers: If you still have a natural gas account, you do not need to file a claim. Payment will be sent automatically.
- Former customers: If you no longer have a natural gas account, you must submit a claim form in order to receive compensation.
How Much Is the Settlement Payout
The total settlement fund is $12.6 million. Payments will be distributed on a pro rata basis, meaning each class member’s award will depend on the total amount of franchise fees they were billed during the covered period.
The formula for calculating each award is:
Individual award = Net settlement amount × (class member’s franchise fees billed ÷ total franchise fees billed to all class members)
This ensures that customers who paid higher fees over the years will receive larger settlement payments.
How to File a Claim
The process for claiming compensation depends on whether you are a current or former customer:
- Current customers: No action is needed. Settlement checks will be mailed automatically to the address on file. If you have moved, you must update your address with the settlement administrator.
- Former customers: You must file a claim form to receive payment. Claims can be submitted online or by mailing a completed PDF form.
The settlement administrator’s mailing address is:
Frank v. City of Pensacola
c/o Kroll Settlement Administration LLC
P.O. Box 225391
New York, NY 10150-5391
Information Needed to File a Claim
To submit a claim, you will need the class member ID included in your settlement notice. If you do not have one, you can request it by filling out the online contact form or by calling 833-890-3973.
Individuals must provide one of the following:
- Driver’s license number
- Last four digits of Social Security number
- Date of birth
- Customer number
Businesses must provide one of the following:
- Federal Employer Identification Number (FEIN)
- Florida Department of Revenue consumer certificate of exemption number (Form DR-14)
- Customer number
Payment Options
- Current customers: Payment will be issued by check and mailed to the address on file.
- Former customers: Payment can be received by mailed check or, if filing online, by electronic transfer.
Important Dates and Deadlines
- Claim filing deadline: One year from the date the settlement administrator completes the initial notification process. The administrator will provide the exact deadline.
- Payment date: Settlement checks will be issued approximately 15 days after final approval of the settlement.
Why This Settlement Was Reached
The lawsuit alleged that the City of Pensacola improperly charged franchise fees and related utility service taxes to natural gas customers inside city limits. Plaintiffs argued that these charges amounted to unauthorized taxes under the Florida constitution.
The court issued a final judgment preventing the city from continuing to charge these fees. To resolve the matter and avoid the cost and uncertainty of continued litigation, both parties agreed to the $12.6 million settlement.
