By Sheldon C. Petersen, Governor and CEO
National Rural Utilities Cooperative Finance Corporation

Did you know that you are part of the largest utility network in America? Did you also know that you own and operate a $15 billion financial corporation that represents your interests every day to the Wall Street capital markets? Did you know that through that finance cooperative, you have links to more than 55 national and international banks, and a credit line of more than $4 billion?

Sheldon C. Petersen

The rural electric cooperative network, of which you are an integral part, opens doors for you that reach to every corner of today's business environment— whether it be on Capitol Hill, on Wall Street, or through banks in London, Tokyo, New York and San Francisco.

Rural utilities are big business. And their cooperative nature puts you, the consumer, in the driver's seat. The National Rural Utilities Cooperative Finance Corporation, known simply as CFC, takes your interests seriously. We provide financing to your local rural electric cooperative. Everything we do is done for your ultimate benefit.

The Illinois network of electric cooperatives is a strong one. Illinois systems maintain strong financial ratios and invest heavily in their finance cooperative. As of Feb. 1, 1996, they had more than $24 million invested in CFC in the form of equity certificates. These equity investments—along with the collateral your system pledges to CFC when obtaining a long-term loan—give us the solid base we need in order to go to Wall Street and raise additional funds at reasonable rates.

CFC then repays your commitment by providing loans and financial services to your electric systems and their subsidiaries for their day-to-day operations and their long-term growth opportunities. As of Feb. 1, 1996, CFC had more than $458 million outstanding in loans to Illinois electric cooperatives. Additionally, we've extended more than $15 million in credit to rural telephone systems in Illinois. We've also made our presence felt in the economic development arena, as well, with more than $1 million invested in Illinois business and community development projects.

As a cooperative, CFC retires earnings on the basis of patronage. Last year we refunded nearly $1 million in capital credits to Illinois systems, with an additional $6 million allocated for retirement at a future date.

From its inception in 1969, CFC has demonstrated its strong commitment to rural America. And I can assure that commitment has never been stronger. With a board of directors composed of rural business leaders from throughout the nation—including Illinois' own Harold Dycus, president for Egyptian Electric Cooperative Association in Steeleville—CFC offers rural utility systems secure solutions to their financing needs.

CFC initially provided loans that supplemented the federal funding program through the Rural Electrification Administration (now the Rural Utilities Service). But as budgetary constraints squeeze the federal government's ability to provide credit to rural utilities, CFC is shouldering a greater portion of the funding burden. That's why your representatives created CFC when they did—to serve as a steady source of capital, regardless of the shifting political landscape.

We take our commitments seriously, and I assure you that we at CFC are working every day to ensure that rural America is not left behind. I urge you to recognize the power you command as a member of the largest utility network in the country, and as an owner of a significant financial institution. Both CFC and your cooperative exist to serve your needs.

Sheldon C. Petersen is governor and CEO of National Rural Utilities Cooperative Finance Corporation based in Herndon, VA. He was raised in western Iowa and served at several electric cooperatives before becoming CFC 's leader in March 1995.

4 ILLINOIS COUNTRY LIVING JULY 1996