Pensacola Energy Customers to Receive Millions in Refunds After Judge Rules City’s Fees Unfair
In a major ruling, Escambia County Circuit Court Judge Jan Shackelford has ordered the City of Pensacola to return between $18 million and $20 million to Pensacola Energy customers. These customers were wrongly charged extra fees since August 6, 2011. The lawsuit was led by Pensacola resident Dr. Eric L. Frank argued that the City unfairly imposed a six percent franchise fee and a 10 percent public services tax on natural gas bills essentially charging itself for using its land. The Judge also ordered that these fees stop immediately.
(photo: Franchise Direct)
City Gas Customers Win Big: Judge Rules Franchise Fee Illegal Tax
The legal case, handled by attorneys Matt Dannheisser and Artie Shimek challenged a long-standing practice from 1970 where the City’s gas department was charged a “franchise fee” for using city-owned land to deliver gas. This fee was passed on to customers which the lawsuit argued was an illegal tax. The Judge’s decision requires the City to refund these fees and stop charging them. However, because of Florida’s four-year limit on such claims and refunds are only for the past 13 years leaving earlier fees from 1970 to 2011 unreturned.
Next, a court-supervised process will be set up to help around 20,000 to 30,000 customers get their refunds. A special website will be created to make this process easier but it may be hard to find some former customers who have moved away. Dr. Frank, who had trouble finding lawyers willing to take the case thanked his legal team for their hard work and hopes the City Council will consider returning additional funds from earlier years showing the ongoing effects of the City’s financial mistakes, according to the report of South Santa Rosa News.
