(UNDATED) – Two natural gas providers in Michigan have been given permission to raise their rates.

The Michigan Public Service Commission on Wednesday approved settlement agreements with Michigan Gas Utilities and Consumers Energy, allowing the two companies to raise the rates on their natural gas customers.

The approval means that Michigan Gas can raise their natural gas base rate by $9.9 million. That is lower than the $19.1 million increase they had originally proposed.

Michigan Gas officials say the rate increase was needed to help them fund safety and reliability upgrades and to cover increasing costs for materials and labor. It also will help with the impact of higher interest rates and inflation.

The new rate will go into effect on January 1, 2024. Residential customers using 100 ccf of natural gas a month will see an increase of $5.10 on their bill.

Consumers Energy will be permitted to increase their rates by $95 million, which is below the $212 million that the company had asked for. Consumers says the higher rates are needed to address capital infrastructure improvements, investment in technology and operational efficiency, and increased financing costs.

The new rate for Consumers will begin on October 1. Residential customers using 100 ccf of natural gas monthly will see an increase of $4.20 on their bill.