Xcel Energy Inc. is seeking to raise electric base rates by $136 million a year, down from an earlier request of about $180 million, in a settlement with Colorado Public Utilities Commission staff and consumer advocates.

The utility said Wednesday that if the commission approves the request, monthly bills would rise by $4.66 for typical residential customers or by $7.16 for typical small-business customers beginning in January.

Xcel is trying to recover more than $1.7 billion it invested in new generating plants, transmission lines and distribution system improvements.

The settlement calls for a possible rate of return on equity of 10.5 percent. The company also agreed to establish another low-income energy assistance program.