The only permission that can be granted to give them access to "Edit Users" within Mod Tools is the "Update Communities" permission. This will give them access to many aspects of Community Admin, which you may not want such as Users, System, and Content tabs.
I suspect the reason for this being combined into the "Update communities" permission is that the "Edit Users" option in Mod Tools gives the ability to update a user's SSO ID, which general moderators should stay away from typically.
Another alternative for you could be to instruct moderators to update usernames and email addresses by editing the user's settings (they can access this through the "Moderator Controls" component by selecting "View/manage this user's settings").
If you are needing them to update SSO ID's, this tab for "Edit Users" within Mod Tools is the only way to do that.
I highly recommend posting this as an idea in our Idea Exchange as well, and post back here to link your idea once you do!
Thank you for your quick response!
Maybe I should have shared our needs before I posted this question. I want to our moderators to be able to see what email address a user is registered with. We are a software company and by searching for the email address in our own systems we can see what kind of software that user is using. Is there a better way for our moderators to find out a users email address than going to Mod tools - Edit users?
Good to know! There's a couple more things:
Hope this helps!