After nearly a decade of turmoil and experimentation, the rest of the industry has begun to realize what most co-ops understood from the very start—that profits might be nice, technology might be nice, but in the end, it's satisfying the customer that makes all the difference. That's what sets co-ops apart from other utilities. It's our culture of service.

The co-op difference simply boils down to putting people first. It's a difference that is simple, yet very powerful. It is, I believe, the heart of the cooperative business culture.

Our unique ownership structure, after all, requires us to put members as our highest priority. But putting people first is not only about how we treat our members, it's also about how we treat our employees. While other utilities were slashing their headcount, co-ops did no such thing. The result? Co-op employees provide a high level of service and professionalism. I would put them up against any other utility company in this country. If we know anything about running a business, we know, as co-ops, how to put people first.

There is more to electric co-ops than producing, transmitting, and distributing electrons. Every utility does that. But if you take all the electric utility achievements of co-ops and combine them with the co-op culture of putting people first, the combined entity is greater than the physical sum of the electric system components. Maybe that's why we often refer to the electric cooperative network as a "Movement" or a "Program." Our unity of purpose and our commitment to put people first inspires member and employee loyalty and commitment.

My observation is that the co-op culture of putting people first is a great business strategy. To the degree that we stay true to that mission, that culture, we have found, both individually and collectively, that we have succeeded. To the degree that we have strayed, we have tended to be less successful.

I'm not saying that the money isn't important. As a CEO for a multi-billion dollar finance organization, I know it's important. It's essential for any well-run business to know how to manage its funds. While the financial end of our business is important, it's not the mission, it's not the goal. The goal is to put people first, to serve the needs of the members.

In putting people first we can't loose sight of the basic and primary service we provide to them—electricity. Fundamental investment decisions need to be made, but they can't be made in a vacuum. Our industry is desperate for direction at the federal level. And yet none seems to be forthcoming. It's absolutely shocking to me, particularly after last year's blackout in the Northeast, that Congress is not making long-term energy policy an issue. It concerns me a great deal, and I believe we'll have to pay the piper down the road for their shortsightedness.

We have also seen an increased focus on transparency and governance within corporate America. Putting people first certainly involves setting standards of accountability and ethics.

Given today's Internet technology that makes vast amounts of information instantly available to all people, businesses, including co-ops, simply can't hide information. We all need to communicate openly with our employees, our members, and with other interested parties. And I believe that's a good thing for co-ops, which by nature tend to be more open than other businesses.

When people see who we are and compare us to other businesses, they find something in co-ops that resonates in their hearts. The honesty, the integrity, the service orientation of a co-op offer an irresistible appeal at a time when people are looking for businesses that are authentic.

Putting people first is a long-term strategy for success. And it's been a long-term goal of CFC from the start. For us, it's all about the relationship, not just about the deal. We're interested in being a partner our members can trust for the long haul.

Sheldon Peterson is Governor/CEO of the National Rural Utilities Cooperative Finance Corporation (CFC), the premier private market lender for the nation s electric cooperatives, who own the corporation. This text is excerpted from his remarks to CFC's 2004 Forum held in Boston in June.

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.

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