Connecticut Light & Power’s proposed distribution rate increase was cut by 41% by the state’s Public Utilities Regulatory Authority in a draft decision.

The utility asked for $221 million in additional revenue with a 10.2% return on equity (ROE). The draft ruling would allow recovery of $130.1 million, including some previously approved costs from major storms in 2011 and 2012. The ROE was cut to 9.17%. The base ROE was further cut to 9.02% for one year as a penalty for the utility’s performance in preparation and service restoration from Tropical Storm Irene in 2011 and an October 2011 snowstorm.

CL&P also proposed increasing the monthly service charge that most residential customers must pay regardless of consumption to $25.50 from the current $16. The draft decision allows the fixed rate to increase to $19.50 monthly.

An average residential customer using 700 kWh of electricity would see an increase of approximately $7.12 per month. PURA said the increases will be sufficient to allow CL&P to fund capital improvements to upgrade its distribution system.

A final vote by PURA’s commissioners is scheduled for Dec. 17.