CEO Letter

September 22, 2025

Dear Member,

For seventy-nine years, Mohave Electric Cooperative (MEC), as a member-owned, not-for-profit distribution utility, has been providing members with safe, reliable, and affordable electricity while investing in the infrastructure and technology that power our community.

Mohave Electric Cooperative’s national and statewide co-op rankings speak volumes in balancing reliability with costs.

*a higher number indicates a better ranking of controlling costs

Why a Rate Case Now?

Addressing Rising Costs: Like many utilities across the state and the nation, MEC has experienced significant cost increases for essential equipment such as poles, wires, transformers, meters, etc. The average increase in these fixed costs was 99.26% since January 2020.

Investing in Reliability: We’ve made substantial upgrades – to the tune of tens of millions of dollars – to harden the grid by strategically placing steel or ductile iron poles and enhance reliability, especially in the face of extreme weather and wildfire risks.

Meeting Rapid Growth: MEC’s service territory has also seen substantial growth in population and electricity usage. The Mohave County Assessor recently reported the County had a 14% increase in Single Family Residences, 32% increase in Multi Family Residences, and 90% increase in Commercial developments, all since 2020.

Adjusting member rates will allow us to appropriately account for rising costs, infrastructure improvements, and future economic development.

How Much Will My Residential Bill Increase?

We have worked diligently to minimize the impact on our members. Residential members will see a $5.99 increase to the Customer Charge on the bill. The current Customer Charge is $24.31 and with the $5.99 increase, the new Customer Charge will total $30.30.

There are no changes to residential energy tiered rates.

The Customer Charge will also adjust slightly for other members including businesses, solar customers, and demand customers. Energy rates will increase for small commercial members. Other non-residential member rates will remain the same.

Even with the proposed changes, MEC’s residential rates remain lowest in the state among cooperatives and investor-owned electric utilities. As a not-for-profit, we continue our commitment to cost control and fiscal responsibility.

MEC’s Statewide Ranking Among Other Electric Providers

Currently, every AZ co-op has already processed or is proposing a rate case. MEC has the lowest total monthly cost compared to other member-owned and investor-owned electric providers in Arizona, and with the new proposed rates, MEC remains the lowest total monthly cost in AZ.

You’re Invited – Member Townhall Meetings

To ensure transparency and open dialogue, we’re hosting a series of townhall meetings where you can learn more about the proposed rate changes, ask questions, and hear directly from the CEO.

What’s Next?

The rate case process involves a thorough review and approval by the ACC and is not anticipated to be in effect until 2026. We have included the official Notice of Filing and Frequently Asked Questions with this letter. Detailed information about the proposed rates, the filing itself, and answers to additional questions will be available on our website at www.mohaveelectric.com/ratecase2025 or visit 928 Hancock Road, Bullhead City or call Member Service at (928) 763-1100.

As a not-for-profit cooperative, every decision we make is with you, our members, in mind. We appreciate your understanding and continued support as we work together to ensure a reliable energy future for our community.

Sincerely,

J. Tyler Carlson
CEO, Mohave Electric Cooperative, Inc.