WICHITA, KS, July 25, 2008 -- Imagine paying 40% more for electricity. It's a proposal being considered in the town of Anthony in Harper County.  A consultant for the city presented the plan this week.

At Eric and Kathy Smith's motel and cafe in Anthony, they pay $1500 to $2000 a month for electricity. A 40% increase would mean as much as $800 more.

"That takes a pretty big bite and we can't increase all of our prices, our customers can't afford things as it is nowadays," said Kathy Smith.

And business owners aren't the only ones turned off by the proposed hike; residents agree 40% is way too much.

“Nobody can afford a 40% rate increase, it just can't happen," said Lana Frank.  “We just cannot do it.”

But the city says because of the rising price of fuel and other costs making the electricity, they have been losing money for years, and now the reserve is gone, too.

"We kind of seen it coming I think, we were kind of told about it you know you don't like doing it so you play it as long as you can I guess," said utilities commissioner Bob Hekel.

Hekel says this month the Anthony electric company slipped $50,000 into the red, leaving the city no choice but to increase rates.  The 40% would allow them to break even.

"It's a must,” said Hekel.  “It's not something we want to do but it's a must.  I don't like it any more than the next person."

And Hekel says to prevent sinking even deeper in debt, says the increase has to happen fast.  But the Smith's say that's part of the problem.

"I understand rising prices, but there was no warning that there was a need for an increase, it's just all of a sudden here you go."

City commissioners still have to vote on the proposal.  They have canceled next Monday's meeting but will hold an informational meeting on Thursday at 6:30.