Pensacola Must Repay up to $20M for Unlawful Gas Fees

Written By Chuck Presti

Key Points:

Illogical Charges:

  • It was deemed illogical for the city to charge itself a fee and then pass those charges onto its citizens.

  • The city argued that they had reduced gas rates since 1991 to offset the franchise fees, ensuring customers were not paying extra.

Court Ruling:

  • Judge Jan Shackelford found that the city did not offset the cost of the franchise fees for municipal customers.

  • The 1991 ordinance cited by the city did not legally justify the imposition of these fees on municipal customers.

Financial Impact:

  • Customers were paying a 6% franchise fee plus an additional 10% public service tax, leading to a 6.6% overcharge.

Repayment Order:

  • The city must repay the unlawfully collected fees plus interest to Pensacola Energy customers within city limits.

  • The ruling resulted from a 2015 lawsuit, which had been circulating in courts for nine years.

City's Response:

  • The city is reviewing the order and working with outside counsel to determine next steps, possibly including an appeal.

This ruling signifies a significant financial and administrative impact on the city and its residents, highlighting the ongoing legal and fiscal scrutiny of municipal fee structures.

As Reported By Pensacola News Journal, July 19, 2024

Chuck Presti
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