LANSING, Mich. (AP) — Michigan regulators on Thursday approved a $100 million electric rate hike for Consumers Energy, authorizing the state's second-largest utility to bill the average residential customer about $9 more per month starting in January.

The increase for residents is nearly 12% after factoring in other allowed adjustments, the Public Service Commission said. The agency said the Jackson-based utility sought the higher rates to fund upgrades to its distribution system and to meet its clean-energy goals by retiring coal-fired plants.

The hike is 39% of what Consumers requested. The order also lets the utility spend more to trim trees to reduce power outages.

Consumers has about 1.8 million power customers, behind only DTE Energy.

“Consumers Energy is taking actions to improve our response to storms, clear more trees and limbs from power lines, and invest in new infrastructure,” spokeswoman Katie Carey said. “We also remain committed to the planet, carrying out our industry-leading clean energy plan to achieve net-zero carbon emissions.”

Dan Scripps, chair of the commission, said the order supports continued spending on Consumers' distribution infrastructure and vegetation management to “increase reliability and reduce both the number and duration of outages.”

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