Council approves settlement in Frank v. City of Pensacola; reserves to be used, council warns rate implications

Pensacola City Council approved a proposed settlement agreement to resolve the lawsuit Frank v. City of Pensacola during its May 22 meeting and authorized the mayor to execute the agreement and take required actions to implement the settlement.

The settlement, introduced as item 25‑656, was discussed in closed‑session briefing earlier in the day and presented to the public at the evening meeting. Outside counsel for the city appeared at the meeting to answer questions about the settlement mechanics.

Funding and fiscal impact

City officials and council members said the city will fund the settlement payment from Pensacola Energy reserves. City staff told council the proposed use of reserves is available but will reduce the utility’s reserve balance. Council members and staff warned that restoring those reserves could eventually require a utility rate adjustment.

Council Member David Baer, who raised procedural concerns about the city’s earlier handling of a similar fee, framed the settlement as restitution for an unlawful charge that had been assessed to natural‑gas customers in prior years. “This settlement agreement provides people like me with a refund…