NOLANVILLE — The City Council approved a resolution Thursday adopting a new schedule-rate review mechanism for Atmos Energy Corporation.

“It’s a standard that is pretty much from all over the Central Texas area,” Councilman Dennis Biggs said. “(The update) is an equation that is used to factor the cost of the usage for natural gas.”

With the new mechanism, customers will have the option to pay their monthly bills based on anticipated gas usage rather than paying a lump sum during the year, he said. A set-up rate based on a calculated formula will determine how individuals and businesses will be charged for using natural gas.

“This (rate) is one that is more defined and an updated version,” Biggs said.

The new rate schedule essentially gives residents a chance to save money. A rate increase is not anticipated from the change, Biggs said.

Atmos Energy supplies natural gas through pipelines to residents and businesses in the city, providing gas to power heating systems and stoves.

“During the wintertime, it’s definitely needed,” he said. “So when we have to pay (for gas) the rates will be reasonable.”

Biggs said a “pay-as-you-use” system will go into effect by the end of this year, and the company will issue notices to residents explaining the change in greater detail.

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