Illinois
COMMENTRY

Co-ops serving members in new and exciting ways

Over half a century ago, cooperatives brought electricity and telephone service to rural areas. Today, we are seeing an explosion of new services members have asked their co-ops to provide. Internet, medical alert, propane, natural gas, satellite TV security systems, financial services, wireless communication, safe drinking water and new fuel cell and microturbine generators are just a few of the exciting new services.

Earl struck

For more than 60 years, cooperatives have been an essential part of the communities they serve. They provide high-quality personal service to local member-owners. People trust their local cooperative. They know that whether it is propane service or Internet service, the co-op will provide the service in a proconsumer manner. Service, not profits, has always been the goal.

Some have criticized co-ops for providing these new services. They say that this is unfair competition from "federally subsidized cooperatives." It is an old and tired argument. Most of Illinois' cooperatives rely on private capital and no longer have any government loans. And, many of these services are not otherwise available in rural areas. Competition is limited or nonexistent.

Those who are critical of cooperatives are often large, national corporations. They want to buy up small, local businesses to achieve dominance in the marketplace. They often take advantage of special provisions in the law to avoid taxes.

It is interesting that most of the criticism is coming from those outside of our communities, and outside of our state. Co-ops are sensitive to the concerns of local businesses. In many cases co-ops have purchased local businesses and made the service or product available to more people. In some cases, coops have partnered with other local businesses to achieve the same goal. The bottom line is that cooperatives are concerned about the local communities they serve, and want to see their neighbors and local businesses grow and prosper.

Although cooperatives may encounter risks by entering these new businesses, they have done so only after careful study. Surveys, business plans and through discussions at co-op board meetings have all preceded decisions to offer new services.

Long-time cooperative members may recall that the development of additional co-op services is not really new. In the 1940s co-op leaders saw a need and began selling and servicing electric appliances. Cooking demonstrations were held, along with traveling appliance shows, to educate members about "modern" inventions like electric stoves and refrigerators.

The needs of people in rural areas may have changed in the last 60 years, but some things remain constant. Your cooperative has always been owned by the people it serves. It is locally controlled and is dedicated to the growth and well-being of local communities.

Cooperation among cooperatives is one of the secrets of our success. Some might think a local cooperative is too small to take on these new business and service responsibilities. What they don't realize is that cooperatives have the backing of a strong state and national cooperative network. Together, cooperatives have the strength and buying power of this network, yet retain the accessibility and personal service that only comes from a locally-owned business.

Cooperatives are also partnering with each other to offer services they could not otherwise provide. For example, EnerStar Power Corp., Corn Belt Energy Corporation and Shelby Electric Cooperative have joined forces to form Clear Talk. Clear Talk is a not-for-profit organization providing 800 MHz trunked radio service to most of Central Illinois.

On a national scope, cooperatives have formed a new service cooperative called Energy Co-Opportunity (ECO), to assist local cooperatives in entering the propane and natural gas businesses. ECO has been instrumental in helping cooperatives offer new fuel cell and microturbine technology to their customers. One of eight pilot fuel cells is being tested here in Illinois at EnerStar Power, and several other cooperatives have plans to test the new technology.

Entering these new competitive businesses, and meeting the challenges of deregulation, makes it even more important that cooperatives remain true to their core principles. Members must become involved in their cooperative, support its services, and let leaders of their cooperative know how they feel about these and other issues. Through the power of human connections, our cooperatives will continue to grow and prosper.

Earl Struck is the President and Chief Executive Officer of the Association of Illinois Electric Cooperatives.

4 ILLINOIS COUNTRY LIVING JUNE 2000