Natural Gas Utility (2016 LGAA)

Village of Hamilton (Winner)
County: Madison County
Population: Less than 5,000
Village Hall: (315) 824-1111

In 2010, the Village of Hamilton Board of Trustees and the Municipal Utilities Commission were approached by the three largest employers within the Village limits, requesting that a feasibility study be done to determine whether there was an economic and environmental benefit by bringing natural gas to the Village and surrounding communities. The study revealed that offering an alternative heating option would help reduce costs and the carbon footprint of the community. In 2012, a public referendum was approved, allowing the Village Board of Trustees to create a Municipally Owned and Operated Natural Gas Utility.

The Village, with the backing of the largest village employer (Colgate University), joined forces and developed plans, programs, policies, rates and submitted the project to the Public Service Commission (PSC) requesting approval to create only the third Municipal Gas Utility in New York State. In order to fund this project, Colgate University backstopped the cost for the initial installation of the gas distribution system resulting in no cost to taxpayers and bond payments. The cost of operating the system would be generated by the sale of gas to all that converted their heating systems to natural gas.

Colgate University and Community Memorial Hospital have financially supported this project from its inception through the next 20 years. Anchor customers that can and will support the costs of creating a natural gas utility are a key component to successfully creating a municipal utility.

Residents and business alike now have an opportunity to choose between four heating sources, electric, fuel oil, propane and now natural gas. Switching to natural gas helps reduce the community carbon footprint, keeps the Village municipal electric rates lower during winter months, has created franchises in the three surrounding towns, Madison, Hamilton and Eaton, and enhances the economic development opportunities by providing businesses looking to locate in the area with natural gas.