Former City of Pensacola natural gas customers whose service address was inside city limits at any time since August 6, 2011 may qualify to claim back the franchise fees they were billed from the $12.6 million Pensacola Energy franchise fee class action settlement. Current customers were paid automatically, but former customers must file before the claims period ends in October 2026.
Current Status
Claims are open for former customers, and the window is closing. The claim deadline is one year after the settlement administrator finished its initial notice process, which local reporting places in October 2026; the exact date is posted on the official settlement website, and former customers should file now rather than wait for it. The court granted final approval on July 15, 2025. Current customers were mailed checks automatically in August 2025, and verified claims from former customers are paid as they are processed.Free settlement alerts
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What Changed Recently?
Nothing new has changed in the settlement itself. What matters now is the calendar: the one-year window for former customers, which opened in 2025, runs out in October 2026.The case, Eric L. Frank v. City of Pensacola, Case No. 2015 CA 001298, in the Circuit Court for Escambia County, Florida, challenged a “franchise fee” line on the city-owned gas utility’s bills. The lawsuit alleged that the city passed to customers a franchise fee it had charged its own gas utility, without City Council authorization, and that the fee was really an impermissible tax. On July 18, 2024, Circuit Judge Jan Shackelford granted partial summary judgment, barred the city from charging and collecting the franchise fees, and ruled that customers were entitled to the fees and the utility service taxes collected on them since August 6, 2011. The parties then settled the remaining issues, including possible appeals, for $15.9 million, and the court approved the settlement in a final judgment on July 15, 2025.
Who Qualifies?
The certified class is all natural gas customers of the City of Pensacola, also known as Pensacola Energy or Energy Services of Pensacola, whose service address was inside the Pensacola city limits and from whom the city collected franchise fees at any time since August 6, 2011. It includes both households and businesses. Customers whose gas service was in unincorporated Escambia County or Santa Rosa County are not in the class.The class is split in two for payment purposes. Existing customers, who still had gas service with the city when the settlement took effect, were paid automatically. Former customers, whose accounts had closed, must file a claim to be paid. WEAR-TV reported that nearly 35,000 customers are affected in all.
How Much Can You Get?
The city agreed to pay $15.9 million. After the class representative award and class counsel’s fees and costs, $12.6 million is set aside for customers.Each customer’s share equals $12,600,000 multiplied by that customer’s franchise fees billed since August 6, 2011, divided by the $12,366,732.92 in franchise fees billed to the whole class. Because the fund is slightly larger than the total fees billed, a customer’s share comes to about 102% of the franchise fees they were charged over the period, and each payment also gets a share of interest earned on the fund. Someone billed $300 in franchise fees over the years would be owed roughly $306 plus interest; that is an illustration based on the formula, not a quoted figure. The settlement website lets class members check their own amount.
Money left in the fund when claims processing ends is handled under the settlement agreement, which provides for some unclaimed funds, capped at $1 million, to be shared among class members.
What Proof or Notice ID Is Required?
No receipts or bills are needed, but a claim must include the account holder’s full name and the service location address, plus one identifier the administrator can match against the city’s records:• Individuals, including sole proprietorships and partnerships not registered with the Florida Secretary of State: a driver’s license number, the last four digits of a Social Security number, a date of birth or the customer number.
• Businesses registered with the Florida Secretary of State: a federal employer identification number, a Florida Department of Revenue Form DR-14 Consumer Certificate of Exemption number, or the customer number. Someone authorized to act for the business must sign.
Former customers were mailed a postcard with a Class Member ID in August 2025. The ID helps match a claim, and WEAR-TV reported that people who did not get a postcard can file online to be assigned one. If a claim is incomplete, the administrator is to follow up, and a defect can be fixed up to 30 days after the claims period ends.
What Is the Deadline?
Claims must be submitted online or postmarked no later than one year from the date the administrator completed its initial notice process. The court documents and the August 2025 notice do not state that date; WEAR-TV reported that former customers have until October 2026. The settlement website gives the exact date. With the deadline this close, filing now is the safe course.How Do You Take Action?
File on the official Pensacola Natural Gas Class Action Settlement website, or download the claim form there and mail it. Filing online is the only way to choose an electronic payment; mailed claims are paid by check. Have the service address, the Class Member ID if you have it, and one of the identifiers above ready. Kroll Settlement Administration is the court-approved administrator.What Happens Next?
The administrator verifies each former customer’s claim and pays it once verified, so former customers do not have to wait for the claims period to close. After the claims period ends, no further claims are accepted, and leftover money is handled as the settlement agreement directs. Existing customers who did not cash their original checks within 90 days were moved into the claims process and must also file to be paid.Sources and Verification
- Official settlement website — Pensacola Natural Gas Class Action Settlement, including the settlement agreement, notice letter and claim form
- Final Judgment, Frank v. City of Pensacola, No. 2015 CA 001298 (Escambia Cty. Cir. Ct., July 15, 2025)
- Administration Agreement among the parties and Kroll Settlement Administration (May 22, 2025)
- Court-approved press notice (PR Newswire, August 11, 2025)
- WEAR-TV — Pensacola Energy repaying $16 million to customers (August 12, 2025)
OpenClassActions.com is a consumer news site and is not the settlement administrator or a law firm.
Questions
Do I need to file a claim for the Pensacola Energy settlement?
Only if you are a former customer. People who were still City of Pensacola natural gas customers when the settlement took effect were mailed checks automatically in 2025 and did not need to file. Former customers, meaning people whose gas account with the city had closed, must submit a claim online or by mail before the claims period ends in October 2026.
How much will I get from the Pensacola franchise fee settlement?
Your share is based on the franchise fees the city billed you since August 6, 2011. The $12.6 million net settlement is divided in proportion to each customer's franchise fees out of the $12,366,732.92 billed to the whole class, so a customer's payment is roughly equal to the franchise fees they were charged, plus a share of interest earned on the fund. The settlement website lets class members check their amount.
What information does a former customer need to file?
Your full name and the service address, plus one identifier. Individuals give one of a driver's license number, the last four digits of their Social Security number, their date of birth or their customer number. Businesses registered with the Florida Secretary of State give a federal employer identification number, a Florida DR-14 Consumer Certificate of Exemption number or their customer number. The Class Member ID on the mailed postcard also helps match the claim.
I live outside Pensacola city limits. Am I included?
No. The certified class covers natural gas customers whose service address was inside the Pensacola city limits and who were charged the franchise fee. Pensacola Energy customers in unincorporated Escambia County or Santa Rosa County are not part of this settlement.
Is Pensacola Energy still charging the franchise fee?
No. The court's July 2024 partial summary judgment, repeated in the July 15, 2025 final judgment, bars the city from charging and collecting the franchise fees from class members.
