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Capital Credits

Capital Credits Returned to Members


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 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’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. 


Capital credits checks were mailed in May. Active Mohave Electric members who had active service during any of those years received a bill credit for capital credits amounts less than $10.

Click here for more information in our capital credits brochure or call (928) 763-4115 and select option 4.

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