Several weeks after approving increases to the city’s water and sewage rates, local leaders will consider raising the price for electrical service later this month.

The Dowagiac City Council approved the first reading of an amendment that would raise the power utility rates for city residents during its regular meeting Monday night at city hall. The council will vote at its next meeting on Monday, Aug. 28, as to whether or not to adopt the increase.

The amendment, if approved by the council, would raise the commodity charge for electrical service by 2.5 percent, which would take effect in October, according to a memo written by Dowagiac City Manager Kevin Anderson. For example, a household that uses 1,000 kWh of power per month would begin paying $121.92 for electricity, compared to $119.16 it would owe under present rates.

The city’s ready-to-serve charge will remain unchanged, Anderson stated in the document.

The city manager said the increase would help the city stay on top of rising costs to purchase power, due to additional requires on power companies to use renewable energy sources and cleaner burning fuels, which is a problem affecting electrical users across the U.S. In addition, the higher rate would help the cover the costs of participation in the state’s energy optimization program, as well as will ensure that leaders have funding to maintain current operational and capital investment levels.

“It’s a relatively small increase,” Anderson said to the council Monday. “It ensures we can make additional reinvestments. The rates will remain competitive with those in surrounding communities and [as well as with] private utility companies.”

City council last voted to raise electrical rates in April 2016, which increased the ready-to-serve charge by 8 percent and the commodity charge by 10 percent.

In June, the city also raised the rates on water and sewage utilities, which will take effect Sept. 10.

Also on Monday:

• The council voted to begin performing monthly billing services for sewage utility customers living in townships of Calvin, Jefferson, LaGrange and Penn townships, per an agreement with the Cassopolis Area Utilities Authority and participating townships. The agreement will be for five years, and the city will perform the services for $27,500 per year, with a 2.5 percent increase each year.

• The council authorized a grant request to the Michigan Municipal Risk Management Authority for $2,750 worth funding to help the city install a 4-foot fence around the retention pond at Russom Park. If approved, the grant dollars would cover 50 percent of the $5,500 it would cost to install the fencing.