Regulators slashed Connecticut Light & Power’s request for higher electric rates, lowering its existing profit margin and, for the first time, penalizing the power company for its troubled response to two disastrous storms three years ago.

The draft decision released Monday reduced the company’s $221 million increase to $130 million, a slimmed down cost that will add about $7 to typical monthly bills, nearly half of the increase coming from a slightly higher fixed charge.