Controlling Costs

From Mohave Electric’s 2018 Key Ratio Trend Analysis (KRTA) Report

Prepared by the National Rural Utilities Cooperative Finance Corporation

Total Controllable Expenses Per Member

  • Year — 2018
  • Mohave’s Value — $283.29
  • US Total
    • Median — $514.50
    • NBR — 814
    • Rank — 803
  • State Grouping
    • Median — $587.11
    • NBR — 11
    • Rank — 11

When comparing costs and expenses, a lower survey is favorable. In this case, Mohave’s 803rd ranking in the nation means that Mohave’s controllable expenses came in very low when sorted high to low. There were only 11 other cooperatives that had lower controllable expenses than Mohave. In the State grouping, Mohave had the lowest controllable expense cost in the state.

Controllable Costs are costs that the Cooperative has at least some control over; in other words, not mandated costs that vary due to a rate structure not regulated by the Cooperative that is dependent on the customer and local economics that the Cooperative has no control over (example: cost of power regulated by the Arizona Corporation Commission).

As can be seen, Mohave has, and has had one of the lowest costs of doing business in the nation; and has had the lowest cost of doing business among Arizona Cooperatives and member-owned entities for the last three years. Mohave has ranked lowest in cost among Arizona member-owned entities for eighteen of the twenty-year history of the KRTA. A similar trait is also prevalent when comparing Mohave’s costs among the nation’s cooperatives where Mohave has finished in the lowest 15 percentile in the twenty-year history of the KRTA.

Total Wages Per Member

  • Year — 2018
  • Mohave’s Value — $137.14
  • US Total
    • Median — $268.66
    • NBR — 813
    • Rank — 798
  • State Grouping
    • Median — $313.97
    • NBR — 11
    • Rank — 11

This ratio demonstrates the total annual wage cost of all of the Cooperative’s staff when divided out by the number of members the Cooperative has.

When comparing costs and expenses, a lower survey is favorable. In this case, Mohave’s 798th ranking in the nation means that Mohave’s total wage cost per member came in very low when sorted high to low. There were only 15 other cooperatives that had lower wage costs per member than Mohave. In the State grouping Mohave had the lowest controllable expense cost in the state.

Mohave has finished in the bottom 6 percentile in the nation in annual employee wage cost per member over the 20-year history of the KRTA. Mohave has also had the lowest annual cost of wages per member among all Arizona Cooperatives and member-owned entities in Arizona 17 of the 20 years.