Century Natural Gas Exclusive Franchise Approved; Pensacola Energy Disputes

April 18, 2018

The Escambia County Commission voted Tuesday night to renew an expiring exclusive natural gas franchise for the Town Of Century, over numerous objections from the City of Pensacola and Pensacola Energy as they claimed most of the franchise territory as their own.

In 1968, the Escambia County Board of County Commissioners granted the Town of Century (then known as the Town of South Flomaton) a franchise to provide natural gas services to citizens in the Century area.  The present franchise expires this year.

The commission adopted a new franchise ordinance that provides the Town with the same rights and responsibilities as other county franchises, including payment of a five percent franchise fee.  This new franchise will not extend beyond the franchise area previously designated in the 1968 franchise agreement. The renewed franchise will expire in 2047.

But an attorney for the City of Pensacola spoke out against the exclusive franchise, making a claim that Pensacola Energy already has an exclusive natural gas franchise in North Escambia.

“Since 1993, the City of Pensacola has been providing natural gas service to customers within some of the areas that are in the proposed ordinance that will become an exclusive franchise area for the Town of Century,” attorney Charlie Guyton said. He said Pensacola Energy serves 46 customers within the Century franchise area, adding that service to these customers began after Pensacola in 1992 purchased gas facilities that belonged to the Escambia County Utilities Authorities (now known and the Emerald Coast Utilities Authority) for $1.1 million.

Guyton said ECUA issued an exclusive franchise to the City of Pensacola in “all of Escambia County, Florida, north of 10 Mile Road… other than in the Town of Century and for the benefit of the State of Florida prison system. The City of Pensacola has an exclusive franchise to serve the areas where it has been serving.”

Guyton claimed the Town of Century currently only has a license or a permit, but not a franchise to provide natural gas service.. “It does not have a franchise. If you look at the document, there is no mention of a franchise. It does refer to a permit or license. But more importantly, the rights granted under that document are non-exclusive,” he said.

Pensacola’s attorney also pointed out that Pensacola has paid, and Escambia County has accepted, an estimated $150,000 in franchise fees from the disputed area.

“In 1968, well before ECUA even existed…you (Escambia County) had granted an exclusive franchise to the Town of Century for this territory,” Century attorney Matt Dannheisser  said. “But somehow in 1993, without notice to us, without asking our permission, they started taking our customers.”

He said Century does have a franchise, which is the same as a permit or license.

“Pensacola shows up today with one of the largest, most expensive law firms….to try…to confuse you, because it is a tactic that we lawyers take when we don’t really have the facts in favor of us. Try to confuse somebody so that won’t make a decision, so that they will delay. I hope that you don’t fall into that trap. You know all the facts; you know what is the right decision to make,” Dannheisser  told the commissioners. “They want different rules to apply to the City of Pensacola  that to everyone else.”

“They want us to pay them over a half million dollars to buy back the customers that we should already have,” Danneheisser said, customers he contends are paying Pensacola Energy 35 t0 40 percent more than the rate charged by the Town of Century’s gas department.

Guyton said that approval of the exclusive franchise would lead to a territorial dispute that would likely go to the Florida Public Service Commission.

“And it won’t be just an issue of the franchise, but of who has the better ability to serve. And I think that comparison is going to work in favor of the City of Pensacola,” he said.

Escambia County Commissioner Douglas Underhill cautioned Guyton against taking his client before the PSC. He said Pensacola Energy promised natural gas service to areas of Perdido Key for four years, but was unable to deliver. He said the PSC would learn of several negative issues involving Pensacola Energy.

Commissioner Steven Barry made the motion Tuesday night to approve the exclusive Century natural gas franchise, subject to approval by the Century Town Council within 120 days.

Commissioner Grover Robinson voted against the ordinance, saying he wanted to see more time to for Century and Pensacola to come to terms.

Barry said they’ve had three or four years, and “I don’t perceive that we are any closure to an agreement…there does not appear there has been a lot of progress between the two entities.”

Century will continue to hold franchise rights from Escambia County to provide natural gas service from the Escambia River westward to almost the Perdido River and from the Alabama state line southward to near Bogia. The franchise area includes Century, Bogia, Byrneville, Bratt, Oak Grove, Walnut Hill and McDavid. Century currently provides gas service only in a portion of their franchise area — near the town limits, south along Highway 29 to and including a portion of Highway 164, west into Byrneville and an area of Bratt.

Pictured top: A “natural gas gate station” that serves the Town of Century, located just off Highway 168 on Poplar Dell Road. Picture top inset: Attorney Charlie Guyton for the City of Pensacola. Pictured middle inset: Century attorney Matt Dannheisser. Pictured bottom inset: A Pensacola natural gas valve station in Bratt. Pictured below: A map of Century’s natural gas franchise area. NorthEscambia.com photos and courtesy images, click to enlarge.


Comments

3 Responses to “Century Natural Gas Exclusive Franchise Approved; Pensacola Energy Disputes”

  1. Chelleepea on April 18th, 2018 2:34 pm

    I hope the town take advantage of this seeing that they almost lost it to pcola. This is where grant money comes in and can be used to show some progress.

  2. Citizen on April 18th, 2018 2:31 pm

    Nice article.

    So if Century can gear up and supply gas and make this work, can it turn around the fact the gas portion of the town was losing money and that they transferred money from the special fund to cover it? which in turn showed up on their audit as inappropriate that the town accountant didn’t advise against because he is being paid and not there?

    Hate to be a naysayer but not so sure they can accomplish that, but who knows?

    This is not the end of the story. Hope Pensacola Energy settles well with Century, and pays them off for ruining them, instead of charging them to ruin them. (if that is the case)

    Dannheisser keep the second signature, it’s important, hope you are doing this pro bono.

  3. sam on April 18th, 2018 10:01 am

    glad the town got it. just hope they have the equipment and man power to do something with it.

Written by William Reynolds · Filed Under News