FULTON - Fulton city leaders were preparing Sunday to approve a rate hike for electric customers in the city.

Fulton City Manager Bill Johnson said the new rates, which the city council was set to approve Tuesday, would raise rates about $5 a month for the average household.

Johnson said the new rate would cost the average household, using 1,000 kWh per month, $101.50. That's up from the current rate of $96.50 for 1,000 kWh.

The hike would be the first since 2008.

"Our wholesale costs have gone up 40 percent since 2008," Johnson said. "We have been cutting back and making due with the revenue we were generating, and we just got to the point where we can't do that anymore."

Johnson said if city council members approve the increase on Tuesday, it would go into effect with January billing.

The rate increase would keep Fulton electric rates comparable to other rates in mid-Missouri.

In Columbia, 1,000 kWh costs about $117.70 October through May, and about $123.16 in summer months.

The website electricitylocal.com said Jefferson City residents pay, on average, $0.0969 per kWh, about $96.9 for 1,000 kWh. Ameren Missouri, a dominant supplier of electricity in Jefferson City, said it charged customers about $86.77 for 1,000 kWh.

Johnson said a rate increase in Fulton was likely. He said city leaders understand the disadvantages of having to pay more for electricity.

"We are all rate payers as well," Johnson said.

The electric rates would be discussed Tuesday evening at the Fulton city council meeting.