ALBUQUERQUE, N.M. — New Mexico’s largest electric utility says it’s disappointed with a decision by state regulators to move ahead with a revamped proposal that includes a much smaller rate increase than initially approved.

A divided Public Regulation Commission voted Wednesday in favor of an order that would allow for a rate hike close to 2 percent.

The order also limits what Public Service Co. of New Mexico can recoup from coal-related investments and calls for reducing the utility’s revenue by an additional $9 million.

Officials with parent company PNM Resources said Thursday the changes could result in a write-off of as much as $60 million and increase risks related to the utility’s financial health.

The utility, the state attorney general’s office and other parties that have been negotiating must sign off on the proposal. A decision is due Tuesday.