FOR IMMEDIATE RELEASE

*BULLHEAD CITY, AZ – MEC DECREASES PURCHASED POWER ADJUSTOR (PPA)*

Mohave Electric Cooperative (MEC), a not-for-profit utility operating for 78 years, is proud to announce a substantial reduction in its Purchased Power Adjustor (PPA).

As a not-for-profit utility, MEC has continually committed to providing its member-owners with reliable service at cost. Over recent years, power generation prices have proven volatile, marking a forecasted average power price per MWh surge of 159% between 2021 and 2023.

“Since December 2023, MEC members faced this energy cost increase in the form of the PPA at 2¢ per kWh on member bills,” states Tyler Carlson, MEC CEO. However, utilities throughout the nation employ the PPA tool to encompass the escalating fuel and purchased power costs, negating the need for expensive rate cases. The adjustor is subject to changes based on the Arizona Corporation Commission’s (ACC) authorization and necessity.

Excitingly, the MEC Board of Directors has approved a decrease in the PPA to 1¢, which will reflect in member bills beginning September. “Should cost projections remain steady, the PPA should decrease to $0.00 as early as 2025,” predicts Carlson.

MEC is a regulated utility that undergoes ACC review of operations, energy costs, rates, and the PPA. The Board of Directors also regularly scrutinizes and determines the financial statements, modifying the PPA to accurately reflect fuel and power costs.

Partnering with Arizona Electric Power Cooperative, their not-for-profit generation and transmission provider, MEC diligently strives to keep the costs low for their members. To further offset costs associated with fuel and power in the wholesale market, MEC has incorporated new battery storage resources, according to MEC’s COO Jon Martell.

Founded in 1946, MEC continues to provide power to 37,640 members, 43,500 meters, with over 1,576 miles of serviced line stretching areas from Bullhead City to Topock on the west, Hualapai to Burro Creek to the south, and Nelson to the east.

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