POTSDAM — Unsure about what changes the coming years will bring to the energy market, the town and village are considering signing shorter franchise agreements with St. Lawrence Gas Co.
"We're not at all sure 10 years from now what the energy situation is going to be like," town Supervisor Marie C. Regan said.
The natural gas distribution company has proposed 30-year agreements with the municipalities, but both town and village officials may opt for 10-year contracts instead.
"It doesn't appear to be a rational, good decision to go 30 years. What's the benefit? We don't know if there is one," village Administrator Michael D. Weil said. "The only thing we know is the energy markets and the whole financial situation of the world are changing very rapidly."
Potsdam's governments could be the first in the state to sign such short franchise agreements, Mr. Weil said.
"We're not aware of any 10-year franchises in New York state," he said. "But 'just because everybody else is doing it' has never been a good enough reason in Potsdam."
The village Board of Trustees will vote today on a resolution scheduling a public hearing for Sept. 15 on the proposed franchise renewal with St. Lawrence Gas.
The Town Council already has set a public hearing on the issue for 6:15 p.m. Sept. 9.
The village collects a 1 percent utility fee on St. Lawrence Gas bills, as required by state law, which nets about $50,000 in revenues each year.
The company has offered to add a franchise fee to generate revenue for the town, but officials there have said they don't want to burden taxpayers any more than they have to.
Town attorney Francis P. Cappello has suggested the municipality could sign a 30-year lease, as long as it included a "reopener" clause, which would allow for new negotiations if the state were to require utility fee charges for towns as well.
Mr. Weil said the franchise agreement doesn't necessarily limit new energy technologies from moving into the area.
"There's nothing to prevent more than one franchise in the area, but because of the expense, the Public Service Commission is unlikely to approve more than one," he said. "There's a belief that you'd rather have one company that's stable than two that may fail and leave the user in the lurch. It's a nonexclusive franchise, but it's a monopoly because there's only one franchise here."
The village administrator said that while the wording of the franchise agreement has changed very little since the last time it was signed 30 years ago, the energy industry and global environment have.
"Who knows where we'll be, 20, 30 years from now?" Mr. Weil said.