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It took World War II to get me involved in the rural electric cooperative business. My associate who had been handling the legal work for Illini Electric and Eastern Illinois Power Cooperatives was drafted shortly after Pearl Harbor and I was sent in to substitute for him and remained in that capacity for more than 60 years. During that time I have represented four electric cooperatives.

Only a few of my readers will remember the early days of our cooperatives: "the day the lights came on." They were not easy days. Dedicated farmers (like Vic Swanson in Champaign County) drove many miles soliciting $5 membership subscriptions and the early boards of directors burned the midnight oil to get the cooperatives off the ground.

An early obstacle was the bitter opposition of the privately owned utilities. I recall the battle for consumers with Illinois Power Company, which fought my cooperatives and others in the Legislature with repressive tax legislation and on the ground with "spite lines." Spite lines were built solely to claim territory, not to serve customers. Fortunately, those days are past.

A second problem in the early days was the shortage of materials. There was a war going on and the competition for vital materials was intense. The shortage continued to be a problem after the war because the demand for power and utility service was intense. Electric cooperative construction was booming.

Cooperation among cooperatives, the 6th cooperative principle, helped coops survive the early years. The Association of Illinois Electric Cooperatives (AIEC) was organized around 1942. About the same time, the National Rural Electric Cooperative Association (NRECA) was created in St. Louis. Through these associations co-ops have fought and won many legislative battles for their members.

The territorial struggle between electric cooperatives and the investor-owned utilities continued well into the 60s when the parties agreed to settle it legislatively. The result was The Electric Suppliers Act. This act, which attempted to allot service areas according to rules laid down by the act, was fairly effective, though not totally so. Territorial disputes are still being tried before the Commerce Commission.

A greater effort should be made to impress on our members the fact that they own the cooperative.

All this time (from 1942 to the present) the AIEC was becoming more active. It expanded its operations, assisting cooperatives and protecting their interests in the General Assembly. Under the leadership of Tom Moore, cooperatives began to seek guidance and direction from AIEC. The trend has been even more evident under the administration of Earl Struck, the current President/CEO. The Legal and Government Relations Department has been outstanding in its work in the Legislature and in furnishing legal assistance. This has come at a most important time with the utility industry deregulated and cooperatives moving down uncharted trails.

One change that I have observed in my 60 years is in the membership on the boards of directors. Initially many board members were well intentioned but naive in the ways of the business world and the utility industry. Many managers were from the private utility business and had no background in the cooperative way of doing business.

All this has changed. Board members became better educated and more knowledgeable in the utility business. A new breed of managers, familiar with cooperative principles, now lead the cooperatives. This produced subtle, but very real changes in the way many cooperatives did business. Electric cooperative managers and boards alike became more consumer friendly and more aware of their obligations to the membership.

The recent disclosures of corporate greed and scandal have shaken the public's confidence in the way America does business. However, this rash of fraud and corruption has not touched cooperatives. The cooperative way of doing business has made it clear to consumers nationwide that there are benefits to the member-owned business model.

If there is one bit of advice that I would leave with electric cooperatives of Illinois, it would be that a greater effort should be made to impress on our members the fact that they own the cooperative. Cooperative employees are working for them and the boards of directors are legally obligated to act in their best interest. Take an interest in your co-op. Take pride in your co-op. It is YOURS.

French Fraker has provided sound Judgment and solid advice to Illinois electric co-ops for more than 60 years. His life is an example of the co-op principle of commitment to community. As a civic leader he has been on too many service organisation boards to list here. Four boardrooms have been named after him.

The opinions and views of guest commentators are their own and may not represent those of the Association of Illinois Electric Cooperatives or the electric co-ops of Illinois.

4 ILLINOIS COUNTRY LIVING www.aiec.coop


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