FORT WAYNE, Ind. (AP) — Michigan regulators have approved a rate increase for Indiana Michigan Power, though one significantly smaller than initially sought by the utility.

The Michigan Public Service Commission approved an agreement Thursday allowing the Fort Wayne-based company to boost its Michigan customers’ rates by a total of $36.4 million annually.

That’s about 38 percent lower than the proposed $58.5 million increase. Regulators say a customer who uses 500 kilowatt hours of electricity a month will see an increase of $12.14, or about 15 percent.

The utility agreed not to change base rates until at least 2023. Indiana Michigan Power says the increase allows it to make significant investments. The new rates take effect Feb. 1.