Hospital to Pay City More for Natural Gas

The city expects to net $15,000 per year under a new five-year contract to sell excess natural gas to Hoag Memorial Hospital Presbyterian.

The agreement, approved by the City Council this week, also includes an option to sell natural gas pipelines to the hospital within two years. The city would earn $17,000 if the hospital decides to purchase the lines.

Hoag for 12 years has paid the city 50% of commercial rates on natural gas. But because revenue has fluctuated as a result of market trends, the city negotiated with the hospital to sell natural gas at 75% of commercial rates, said public works director Don Webb.