Controlling Costs

From Mohave Electric’s 2022 – 2020 Key Ratio Trend Analysis (KRTA) Report

When comparing costs and expenses, a lower survey is favorable. In this case, Mohave’s current 786th ranking in the nation in wage cost per member among electric cooperatives, demonstrating MEC’s total wage cost per member is very low. There were only 25 other cooperatives in the country that had lower wage costs per member than MEC.* There were only 4 other cooperatives in the country that had lower wage costs per member 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).

Mohave has one of the lowest costs of doing business in the nation; and has the lowest cost of doing business among Arizona Cooperatives and member-owned entities for the last five years. Mohave has ranked lowest in cost among Arizona member-owned entities for 20 of the 22-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 22-year history of the KRTA.

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.

Mohave has finished in the bottom 6 percentile in the nation in annual employee wage cost per member over the 22-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 19 of the 22 years.

Prepared by the National Rural Utilities Cooperative Finance Corporation

Total Controllable Expenses

Per Member 

  • Year – 2022
  • Mohave’s Value – $310.32
  • US Total
  • Median – $582.53
  • NBR – 811
  • MEC Rank – 801
  • State Grouping
  • Median – $652.14
  • NBR – 10
  • MEC Rank – 10

Total Wages Per Member

  • Year – 2022
  • Mohave’s Value – $189.11
  • US Total
  • Median – $296.26
  • NBR – 809
  • MEC Rank – 741
  • State Grouping
  • Median – $307.85
  • NBR – 10
  • MEC Rank – 9

Total Controllable Expenses

Per Member 

  • Year – 2021
  • Mohave’s Value – $304.10
  • US Total
  • Median – $542.95
  • NBR – 812
  • MEC Rank – 790
  • State Grouping
  • Median – $552.59
  • NBR – 11
  • MEC Rank – 11

Total Wages Per Member

  • Year – 2021
  • Mohave’s Value – $152.67
  • US Total
  • Median – $287.59
  • NBR – 811
  • MEC Rank – 786
  • State Grouping
  • Median – $291.16
  • NBR – 11
  • MEC Rank – 11

Total Controllable Expenses

Per Member 

  • Year – 2020
  • Mohave’s Value – $296.13
  • US Total
  • Median – $530.99
  • NBR – 815
  • MEC Rank – 801
  • State Grouping
  • Median – $558.24
  • NBR – 11
  • MEC Rank – 11

Total Wages Per Member

  • Year – 2020
  • Mohave’s Value – $159.77
  • US Total
  • Median – $284.10
  • NBR – 814
  • MEC Rank – 783
  • State Grouping
  • Median – $376.11
  • NBR – 11
  • MEC Rank – 11

*2021 CFC Key Ratio Trend Analysis