Connecticut regulators approved a $130 million rate increase for Connecticut Light & Power, endorsing a staff draft decision to cut the company’s requested hike by 41%.

The Public Utilities Regulatory Authority’s ruling boosts the fixed residential monthly charge by 20% to $19.25. Regulators also OK’d the utility’s plan for transmission upgrades.

The decision reduces CL&P’s requested 10.2% return on equity to 9.17%. It also imposes a 0.15% penalty for one year for the company’s performance in preparing for and restoring service from two storms in 2011. A $257 million capital spending budget was also approved.

An average residential customer using 700 kWh of electricity will see an increase of approximately $7.12 per month.