BULLHEAD CITY – Mohave Electric Cooperative (MEC) a not-for-profit utility, has been serving members for 78 years strong. MEC has made every conscious effort to monitor and purchase power on the market by negotiating the most reliable and affordable power prices. Unlike investor-owned utilities who provide profits to shareholders, a utility operating under the cooperative model is a not-for-profit entity structured to provide its member-owners with exceptional service at cost.
“Over the past few years, MEC has incurred volatile power generation prices and these costs have continued to increase over the years – the worst being the forecasted average power price per MWh increasing 159% between 2021 -2023,” says Tyler Carlson MEC CEO. “Since December 2023, MEC members have paid for this increase in energy costs in the form of the Purchased Power Adjustor (PPA) at 2¢ per kWh on member bills.”
With prices constantly changing, utilities across the nation use a tool called the Purchased Power Adjustor (PPA) to cover the cost of rising fuel and purchased power without filing costly rate cases. This adjustor could be changed month to month based on necessity and is authorized by the Arizona Corporation Commission (ACC). MEC is a regulated utility under the ACC which reviews our operations, energy costs, paid for by members via rates, and the PPA.
“Good news for members, the MEC Board of Directors has approved reducing the PPA to 1¢. Members will begin to see the 1¢ PPA on September member bills,” says MEC CEO Tyler Carlson. “And if cost projections remain stable, members should see the PPA decrease to $.0 in early 2025, if not sooner.”
The Board of Directors reviews the utility’s financial statements monthly and may decide to change the PPA to move in a direction, either as a charge or a credit, that reflects fuel and power costs.
In addition, “MEC partners with Arizona Electric Power Cooperative (AEPCO), our not-for-profit generation and transmission provider, to keep costs as low as possible for our members,” says MEC COO Jon Martell. “MEC has also added new battery storage resources to offset costs associated with fuel and power costs in the wholesale market.”
