East Texas residents who receive their power from Swepco may soon see a sharp rise in their electricity rates, KTBS News reports.

According to the media outlet, Swepco is looking to increase its revenue from electricity rates by about $83 million, however not all residents are on board with the price hike, saying they are unsure why the utility needs the additional capital. Although the measure must still be approved by state regulators, Guy Solley of Atlanta, Texas, said the rise could have far-reaching effects.

Swepco contends the higher rates are needed to pay for the John W. Turk generation plant in Fulton. The facility is already 95 percent complete, and the higher rates would pay for the final phase.

The increase will be as high as $12, or 16 percent of residents' current rates. If the Texas Public Utility Commission approves the proposed hike, residents would see the higher electricity bills as of January 1.

Although the higher electricity prices will affect residents, Texas' deregulated electricity market allows customers to shop around for different energy plans to find one that better fits their energy needs.