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Rochester Gas & Electric and its sister company, New York State Electric & Gas, will be allowed to raise their electricity rates slightly over the next three years, but will take steps to move away from natural gas under a modified rate case settlement approved Thursday by state utilities regulators.

Under the rate plan approved by the state Public Service Commission, RG&E customers will see electricity bill increases of roughly 1.6% in the first year, which starts Dec. 1, and roughly 2% in each of the second and third years.