One of the benefits of being a member of Mohave Electric Cooperative (MEC) 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 MEC when you buy electricity.
MEC’s member-elected Board of Directors authorized a capital credits retirement of approximately $1,462,825.08. This amount includes all capital credits for the remainder of 1985 and 1986, and a portion of 2017, 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 check only for those years during which you had active MEC service. For example, if you had active service during any part of 1985, 1986, 2000 or 2017, you are receiving your share of retired capital credits for each of those years as one total amount; if you were a member in 2017, but not the other three years, your check will include your share of capital credits for that one year.
Mohave Electric Cooperative 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 MEC 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 MEC financially.
More information about capital credits is available at the Member Services Office at 928 Hancock Road in Bullhead City. Or call (928) 763-4115 and select option 4.
The Board of Directors, management, and staff put members first, every day. We are pleased to be sending this capital credits check to you, a demonstration of the advantage and power of your Cooperative membership.