Mohave Electric Cooperative’s board of directors has authorized a capital credits return of $1.3 million to members. MEC members who had electric service in 1988 or 2019 will receive their share as a check, or as a bill credit on active service accounts for amounts less than $10.00.
“One of the benefits of being a member of Mohave Electric Cooperative is that members share in any margins earned,” said Ardie Lauxman, chief financial officer of MEC. “If MEC has a positive margin and meets our lender’s requirements, the board of directors may vote, once a year, to retire, or pay out a portion of available capital credits to members.
Lauxman said checks will be mailed in June.
MEC CEO Tyler Carlson said, “We recognize the importance of retiring as much as we could afford to this year, as we try to help our members cope with the COVID-19 financial impacts.”
Since 2015, MEC has returned $8.5 million in capital credits to members.
Lauxman explained that MEC operates as a not-for-profit corporation. Revenues from the sale of electricity are used to purchase wholesale power, pay operating expenses, make payment on outstanding loans, and provide a financial reserve as a condition of lenders. Any remaining funds are called margins and are allocated to members as capital credits.
Additional information on capital credits is available at MEC’s website mohaveelectric.com, click on member services, and capital credits.