One of the benefits of being a member of Mohave Electric Cooperative is that you share in any margins that the Cooperative earns. We call your share of the margins “capital credits” because margins originate with what you pay, also called “capital,” to the Cooperative when you buy electricity.
Mohave’s member-elected Board of Directors authorized a capital credits retirement of approximately $1,539,589. This amount includes all capital credits for 1984 and a portion of 1985 and 2016, as well as Arizona G&T Cooperative capital credits for a portion of 2000.
The check enclosed represents your share of this capital credits retirement. You are receiving a capital credits refund only for those years during which you had active Mohave Electric service. For example if you had active service during any part of 1984, 1985, 2000 or 2016, you are receiving your share of retired capital credits for each of those years as one total amount; if you were a member in 2016, but not the other three years, your check will include your share of capital credits for that one year.
Mohave Electric operates as a not-for-profit corporation and our rates are set to cover the cost of doing business, not to generate a profit. Money received from the sale of electricity to members is used to pay operating expenses, make payments on any loans, and provide an emergency reserve. Any amount remaining is called margins, which is allocated to a capital credit account for every member based on the amount of electricity purchased. Capital credits reduce the need for borrowed funds and the payment of interest expense.
If the Co-op has a positive margin and meets our lenders’ requirements, the Board of Directors may vote, once a year, to retire, or pay out, a portion of available capital credits to members, but only if doing so will not harm the Cooperative financially.
Mohave Electric’s Board of Directors, management, and staff put members first, every day. We are pleased to be sending this capital credits refund check to you…a demonstration of the advantage and power of your Co-op membership.