ANCHORAGE, Alaska (AP) — Residents in Alaska have received lower electricity bills this month after two utilities consolidated last year.

Chugach Electric Association Inc. consolidated with Municipal Light & Power promising that there would be reduced rates associated with the move, KTUU-TV reported.

“One of the things we’ve said since the very beginning is that by combining the two utilities, members will see lower, long-term electric rates,” Chugach Electric spokesperson Julie Hasquet said. “You can combine two utilities, you get rid of duplication and all the other factors and you’re able to see a long-term lowering of your electric rates.”

Chugach Electric has two rate districts, Hasquet said. The north district will see a rate reduction of 9.6% in their January bills and the south district will see a rate reduction of 2.7%.

Hasquet said the north district received a bigger discount since there was $36 million in equity that was returned to the members because that was their investment over three years.

“So for the next three years, they will get $12 million a year reduction in their bills. There will be reductions for our south customers as well, but the reduction in the north is a little bit bigger because of the $36 million in equity,” she said.