The Pella City Council held the first of three readings of an ordinance regarding the raising of electric rates at their meeting this week.

City Administrator Mike Nardini says the city is hoping to increase rates by 3% in March of next year and another 3% in 2016. He says the rate increases are necessary due to the hydroelectric dam project. He says based on how the grid works, the city and surrounding area should receive a large portion of the power generated while only paying a fraction of the cost of construction. Nardini says the proposed ordinance is subject to two more readings at the January meetings before it’s considered by the council.