In the coming months, electric customers in Cartersville, Georgia, will see higher electricity rates after the city council hears recommendations from Cartersville Electric System and City Manager Sam Grove on how to implement the rate hike, The Daily Tribune reports.

According to the media outlet, city officials are working to determine the exact increase, and what the municipal utility will need to charge for both generation and distribution functions. To determine the rate increase, the town will first divide areas into either business or residential customers.

"Then what we do is we create our rates based on the cost to actually serve the customers in that class, and the costs are generation costs, transmission costs, then local distribution costs," said CES Director David Meyers. "There are professionals out there that what they do all day is figure out what these costs are and then you set your rates accordingly to serve that particular class."

Similar rate hikes have been seen all over the country as utilities look to cover new costs associated with grid modernization projects that experts say are crucial to ensure grid reliability. However, in states with energy deregulation laws, residents can shop around for the best electricity rate and switch providers if a better rate is found.