Forum 2012 July 8 –11 | Hilton New York

Co-sponsored by

Bulls, Bears and Big Ideas: Cooperatives Engage the Future in the Big Apple

For Directors: The Future of Carbon – Preliminary Agenda Implications for U.S. Power Generation Carbon policies are a critical driver affecting future generation choices. In this session, Kernow MONDAY, JULY 9 Consulting Corporation President Roger J. Goodman will provide a risk management 7 a.m.–5:45 p.m. perspective on what the optimal future choices Forum Registration and Product Showcase for power generators are and will explore the key uncertainties over carbon policies and other 1–2 p.m. factors such as cost. Roger J. Goodman GENERAL SESSION • Roger J. Goodman, Founder & President, Kernow Consulting Corporation Where America Stands and Where We Are Heading For CFOs: Cyber Security on a Budget Former New York Governor Mario Cuomo will share his vision for America, the greatest In today’s challenging economic landscape, many cooperatives struggle leadership challenges the United States faces with how they can protect their valuable information assets. In this today and how we should address them. informative session, learn about cost-effective ways your cooperative can mitigate cyber security risks without breaking the bank. Governor Cuomo is the longest-serving Democratic Governor of New York in modern • Duc Lai, Enterprise Infrastructure Security Architect, CFC history. He twice set New York records for highest popular vote ever achieved in a For G&Ts: Perspectives from Top Rating Agencies statewide election. He also served as the 68th Mario Cuomo In this session, analysts from the top three rating agencies will share Lieutenant Governor of New York (1979–1982) their insights on the financial assessment and outlook for G&Ts and and the 58th Secretary of State of New York the electric utility industry. (1975–1978). • David Bodek, Director, Standard & Poor’s Rating Services 2–2:15 p.m. • Dennis Pidherny, Senior Director, Public Power Sector, Networking Break/Product Showcase Fitch Ratings • Kevin Rose, Vice President, Global Infrastructure & Finance Group, 2:15–3:15 p.m. Moody’s Investors Service

BREAKOUT SESSIONS 3:15–3:45 p.m. Networking Break/Product Showcase For CEOs: Board and Employee Issues: An Executive Session for CEOs Only This confidential session will allow CEOs to focus on sensitive and pressing issues concerning boards and employees. • Bill Clayton, Vice President of Corporate Training, CFC

CFC Forum 2012 Agenda 1 3:45–5:45 p.m. TUESDAY, JULY 10 GENERAL SESSION 7 a.m.–5 p.m. 3:45–4:45 p.m. Registration and Product Showcase The U.S. and Global Economic Outlook CNN Chief Business Correspondent, Financial 7–8 a.m. Expert and Author Ali Velshi will offer insights Continental Breakfast on current economic conditions and what’s next for the Federal Reserve, financial markets and the 8–9:30 a.m. American and global economies. GENERAL SESSION Velshi is CNN’s chief business correspondent and the anchor of “Your Money” and “World Ali Velshi 8–8:30 a.m. Business Today” on CNN International. In Bulls, Bears and Big Ideas addition to his anchor responsibilities, he frequently reports from the field on breaking news events, politics CFC CEO Sheldon C. Petersen will share his and in-depth personal profiles that offer insights into global issues. signature insights on the opportunities and “Big He has reported extensively on the global financial meltdown since Ideas” ahead for electric cooperatives. Sheldon C. Petersen 2008 and on the U.S. debt ceiling and budget debate. Previously, he was an anchor with CNNfn, where he hosted various interactive 8:30–9:30 a.m. shows, including “Your Money,” “Street Sweep” and “The Money America’s Deficit Crisis: The Rivlin-Domenici Plan Gang.” Alice Rivlin and Pete Domenici will detail 4:45–5:45 p.m. their assessment of what must be done to reduce How Great Leaders Inspire Action America’s budget deficit. In 2010, Rivlin and Domenici were named by Simon Sinek, author of Start With Why, will present a President Barack Obama to participate on the powerful model for how leaders inspire action, starting bipartisan Commission on Fiscal Responsibility with a golden circle and a focus on purpose. and Reform. Previously, Rivlin and Domenici Sinek teaches leaders and organizations how to were co-chairs of the Bipartisan Policy Center’s inspire people. He is an adjunct staff member of the Debt Reduction Task Force. Alice Rivlin RAND Corporation, where he advises on matters Rivlin is an economist specializing in fiscal, of military innovation and planning. He also Simon Sinbek monetary and social policy. She is a senior teaches graduate-level strategic communications at fellow in the Economic Studies Program at The Columbia University. He writes for The New York Brookings Institution and a visiting professor Times, Wall Street Journal, The Washington Post, Chronicle, at the Public Policy Institute of Georgetown FastCompany, NPR and BusinessWeek, and is a regular contributor to University. She served as vice chair of the Federal The Huffington Post, BrandWeek and MSNBC’s “Your Business.” Reserve Board (1996–1999). She was director 5:45 p.m. of the White House Office of Management and Budget in the first Clinton Administration and the Adjourn for the Day founding director of the Congressional Budget Evening on Your Own—An Opportunity to Relax with Co-op Office (1975–1983). Pete Domenici Friends and Enjoy the New York Skyline Domenici served six terms as a U.S. Senator from New Mexico, the longest term in the state’s history. During his tenure in the Senate, he served as Chairman and Ranking Minority Member of the Senate Budget Committee and the Appropriations Subcommittee of Energy and Water Development. He also served as Chairman and Ranking Minority Member of the Senate Energy and Natural Resources Committee. He currently serves as a Senior Fellow at the Bipartisan Policy Center, where he focuses on budget and nuclear energy issues.

9:30–10 a.m. Networking Break/Product Showcase

CFC Forum 2012 Agenda 2 10–11 a.m. G&Ts: The Future of Carbon – Implications BREAKOUT SESSIONS for U.S. Power Generation Carbon policies are a critical driver affecting For CEOs: Managing Crucial Conversations future generation choices. In this session, Effectively Within Your Cooperative Kernow Consulting Corporation President Roger J. Goodman The most potent managerial tool may be the ability will provide a risk to handle high-stakes interactions effectively. management perspective on what the optimal future choices for power generators are and Great leaders make it safe for people to share facts, explore the key uncertainties over carbon policies feelings and opinions candidly and respectfully. and other factors such as cost. They speak persuasively and move people from Roger J. Goodman healthy dialogue to effective action. In this session, • Roger J. Goodman, Founder & President, business communication expert and New York Kernow Consulting Corporation Times best-selling author Joseph Grenny will Joseph Grenny 11–11:15 a.m. explain how to begin managing crucial conversations Networking Break/Product Showcase in your cooperative. For more than 20 years, Grenny has taught and advised thousands of leaders worldwide on major change initiatives. • Joseph Grenny, Best-selling Business Author on Leadership, Influence and Communication 11:15 a.m.–1:15 p.m.

For Directors: Tattoos in the Boardroom NCSC ANNUAL MEETING & LUNCHEON Co-op boards are becoming more diverse and today often include members from different The 31st Annual Meeting of the National Cooperative generations. In this session, leading generational Services Corporation will be held in conjunction with expert Cam Marston will highlight the four Forum. A prominent keynote speaker will be featured. generations, examining what motivates and inspires each generation and how effective use of that information can strengthen a board. Marston and his firm, Generational Insights, have 1:15–1:30 p.m. provided research and consultation on generational Cam Marston issues for more than 15 years. His expertise has Networking Break/Product Showcase also been featured in the Wall Street Journal, The Economist, the Chicago Tribune, BusinessWeek, Fortune, Money 1:30–2:30 p.m. and Forbes, as well as on “Good Morning America” and the BBC. BREAKOUT SESSIONS He is an ongoing instructor at Belmont University and the author of three books on generational issues. For CEOs: How to Most Effectively Manage • Cam Marston, Author, Columnist, Blogger and Lecturer on Employees from Different Generations Generational Differences For the first time in history, cooperative managers are supervising For CFOs: The Four Most Dangerous Words in Finance: four distinct and different generations of employees. In this session, “This Time It’s Different!” leading generational expert Cam Marston will highlight what these four generations seek from their workplace and what motivates them The truth is that, despite the media hysteria, the to excel. financial markets and the economy follow historical Marston and his firm, Generational Insights, have provided research patterns. The finance professor you wish you had and consultation on generational issues for more than 15 years. His back in college, , will help you expertise has also been featured in the Wall Street Journal, The recognize and understand these trends. Economist, the Chicago Tribune, BusinessWeek, Fortune, Money Ricchiuti is a finance professor and assistant dean and Forbes, as well as on “Good Morning America” and the BBC. at ’s A.B. Freeman School of He is an ongoing instructor at Belmont University and the author of Business. He began his career with the investment three books on generational issues. firm of Kidder Peabody and later managed a budget Peter Ricchiuti • Cam Marston, Author, Columnist, Blogger and Lecturer on of more than $3 billion as assistant treasurer for Generational Differences the state of . He founded Tulane’s highly acclaimed stock research program in 1993. • Peter Ricchiuti, Finance Professor and Assistant Dean, Tulane University’s A.B. Freeman School of Business

CFC Forum 2012 Agenda 3 For Directors: What Are the Financial 3–5:30 p.m. Markets Telling Us About the Future? GENERAL SESSION Tulane University finance professor Peter Ricchiuti will provide an insightful look at America’s 3–4 p.m. economy and what the financial markets are telling Myth vs. Reality with John Stossel us about the future. Consumer reporter, investigative journalist, author, Ricchiuti is assistant dean at Tulane University’s host and commentator on Fox Business Network A.B. Freeman School of Business. He began his John Stossel career with the investment firm of Kidder Peabody (FBN), puts conventional wisdom to and later managed a budget of more than $3 billion the test by providing his unique and entertaining Peter Ricchiuti as assistant treasurer for the state of Louisiana. He perspective on popular myths: getting cold will give founded Tulane’s highly acclaimed Burkenroad you a cold; money can buy happiness; chemicals are Reports stock research program in 1993. killing us; and full moons make people crazy. After years of consumer reporting, Stossel discovered what • Peter Ricchiuti, Finance Professor and Assistant Dean, Tulane he thought to be true was nonsense. John Stossel University’s A.B. Freeman School of Business Stossel has received numerous honors and awards, For CFOs: Managing Crucial Conversations including 19 Emmy Awards. He is author of Give Effectively Within Your Cooperative Me a Break; Myths, Lies and Downright Stupidity; and No, They Can’t. Prior to joining FBN, Stossel co-anchored ABC’s primetime The most potent managerial tool may be the ability newsmagazine show “20/20.” There he contributed in-depth special to handle high-stakes interactions effectively. reports and recurring segments on a variety of consumer topics, from Great leaders make it safe for people to share facts, pop culture to government and business. feelings and opinions candidly and respectfully. They speak persuasively and move people from healthy dialogue to effective action. In this session, 4–5:30 p.m. business communication expert and New York Fraud Protection 101 Times best-selling author Joseph Grenny will explain how to begin managing crucial conversations Joseph Grenny Former con man turned crime stopper Frank Abagnale in your cooperative. For more than 20 years, will highlight the latest sophisticated white collar crime Grenny has taught and advised thousands of leaders techniques made easy by technology, as well as your worldwide on major change initiatives. cooperative’s potential liability under the new Uniform • Joseph Grenny, Best-selling Business Author on Leadership, Commercial Code. A world-renowned authority on Frank Abagnale Influence and Communication preventing check fraud and identity theft, Abagnale is the author of several books, including Catch Me If For G&Ts: Enhancements to CFC’s G&T Trend Report You Can, and was the subject of Steven Spielberg’s blockbuster movie “Catch Me If You Can” that starred Leonardo DiCaprio and Tom This session will highlight the exciting changes and enhancements Hanks. incorporated into CFC’s new G&T Trend report. The many new ratios and features, along with the built-in peer comparisons, will be 5:30 p.m. reviewed. The session will demonstrate the utility and ease of use of Adjourn for the Day the enhanced tool for the G&T systems and its many uses. Evening on Your Own—An Opportunity to Relax John Grant • , Vice President, Financial Products and Services, CFC with Co-op Friends • Krishna Murthy, Vice President, Electric & Industry Analysis, CFC

2:30–3 p.m. Networking Break/Product Showcase

CFC Forum 2012 Agenda 4 WEDNESDAY, JULY 11 9:45–10 a.m. Networking Break/Product Showcase

7 a.m.–12:15 p.m. 10–11 a.m. Registration and Product Showcase BREAKOUT SESSIONS 7–7:45 a.m. Continental Breakfast For Directors: Cyber Security: Protecting Your Cooperative and Yourself 7:45–9:45 a.m. This session will highlight some of the organizational and personal GENERAL SESSION risks associated with navigating the information super highway. Learn practical ways to protect your cooperative and yourself against cyber security threats such as social engineering, phishing and malware. 7:45–8:45 a.m. Duc Lai Perspectives on Energy Policy: Where •  , Enterprise Infrastructure Security Architect, CFC Are We Headed and When? For CFOs: Perspectives from Top Rating Agencies This session will offer special insight on energy In this session, analysts from the top three rating agencies will share and environmental policy from a panel of experts, their insights on the financial assessment and outlook for the electric Byron Dorgan including former North Dakota Senator utility industry. and former U.S. Department of Homeland Security Secretary Tom Ridge. Bring your toughest questions! • David Bodek, Director, Standard & Poor’s Rating Services Dorgan served in the Senate leadership for 16 years, • Dennis Pidherny, Senior Director, Public Power Sector, first as Assistant Democratic Floor Leader and then as Fitch Ratings Chairman of the Democratic Policy Committee. He was • Kevin Rose, Vice President, Global Infrastructure Chairman of Senate committees and subcommittees on Byron Dorgan & Finance Group, Moody’s Investors Service the issues of Energy, Appropriations and Water Policy. He served as a congressman and Senator for North For G&Ts & CEOs: NERC’s Key Messages for CEOs Dakota for 30 years before retiring from the U.S. Senate of G&Ts and Electric Distribution Cooperatives in 2011. He is a recognized leader in the fields of energy System reliability and cyber security are key issues policy, economic issues and trade policy. facing the U.S. electricity grid. Gerry W. Cauley, Following the events of 9/11, Ridge became the first President & CEO of North American Electric Assistant to the President for Homeland Security and, Reliability Corporation (NERC), will discuss on January 24, 2003, became the first Secretary of the NERC’s current thinking on these and other U.S. Department of Homeland Security. He served as grid-related issues. the 43rd governor of Pennsylvania from 1995 to 2001. Tom Ridge • Gerry W. Cauley, President & Chief Executive He was elected to Congress in 1982. He was one of the Officer, North American Electric Reliability first Vietnam combat veterans elected to the U.S. House Corporation Gerry W. Cauley of Representatives and was overwhelmingly re-elected by Pennsylvania voters five times. 11–11:15 a.m. 8:45–9:45 a.m. Networking Break/Product Showcase November’s Election, America’s Future 11:15 a.m.–12:15 p.m. and Patriotic Grace CLOSING SESSION In this session, columnist and former presidential speechwriter Peggy Noonan will provide her Facing Adversity with Optimism & Resilience trademark perspectives on the 2012 presidential War Hero, actor and motivational speaker election and the implications for America, the world J.R. Martinez and your cooperative. She also will discuss the need will close Forum 2012 with his for a more elevated discourse in national politics. remarkable story and inspiring message. Noonan is a Wall Street Journal columnist and best- In 2003, Martinez sustained severe burns to more than 40 percent of his body while serving as a selling author of eight books on American politics, Peggy Noonan history and culture. Her essays have appeared in United States Army infantryman in Iraq. Since his TIME, Newsweek, The Washington Post and other recovery involving more than 33 surgeries, he has publications, and she provides frequent political commentary on traveled around the country speaking about his television. She served as special assistant to President Ronald Reagan experiences. He is the celebrated winner on Season J.R. Martinez from 1984 to 1986 and was chief speechwriter for Vice President 13 of ABC’s “Dancing with the Stars” and played George H. W. Bush when he ran for president (1988). Before entering an injured Iraq combat veteran on the ABC daytime the Reagan White House, she was a producer at CBS News in New drama “All My Children” for three years. York. She was an adjunct professor of journalism at New York 12:15 p.m. University from 1978–1979. Adjourn

CFC Forum 2012 Agenda 5 PRE-CONFERENCE WORKSHOPS 8−11:30 a.m. An Insider’s View of CFC: Pre-Forum Session for Directors CFC is offering several pre-Forum sessions for early birds who Specifically designed for directors, this session provides an want to earn professional education credits. These workshops excellent insight into the origins, purpose and operations of your are tailored to the needs and interests of both cooperative finance co-op. Discover how CFC helps cooperatives meet the staff and directors. challenges and financial needs of today’s electric cooperative network. Meet key CFC staff and learn about CFC’s financial products and services developed exclusively for electric cooperatives. Sunday, July 8 • Sheldon Petersen, CEO, CFC 9 a.m.−4 p.m. • Andrew Don, Senior Vice President/Treasurer, CFC Essentials of Effective Communication: • Rich Larochelle, Senior Vice President, Corporate Relations A Workshop for Co-op CEOs and Key Staff Group, CFC • John List, Senior Vice President, Member Services Group, and This day-long interactive workshop is designed for cooperative General Counsel, CFC managers and key staff who wish to become more effective communicators on topics such as the Smart Grid, energy • Moderator: Brad Captain, Vice President, Corporate efficiency, rate increases and the value of cooperative membership. Communications, CFC Attendees will explore case studies related to these topics. Lunch will be served to workshop attendees only. 10−11:30 a.m. • Buck Joseph, professor emeritus of Management, Executive Education, Wisconsin School of Business, University of Accounting and Auditing Insights Wisconsin-Madison This panel discussion will address current and evolving accounting and auditing guidance that is of particular importance to electric cooperatives. Attendees will have an opportunity to Monday, July 9 ask these highly knowledgeable experts questions about specific issues concerning their organizations. 8−9:30 a.m. • Diana Alger, Chief, Technical Accounting & Auditing, RUS Equity Management—Practical Applications • Steve Lilly, Senior Vice President and Chief Financial Officer, CFC This hands-on equity management workshop focuses on key topics for your cooperative such as calculating the cost of equity and • Russ Wasson, Director, Tax, Finance and Accounting Policy, capital, return on equity (ROE) and equity growth rate. Roll up NRECA your sleeves and learn how to apply those calculations to real-life • Moderator: Tom Kandel, Senior Accountant, cooperative scenarios like obtaining a discount for estate capital Regulatory Affairs, CFC credits and analyzing changes to equity levels utilizing CFC’s new equity management report titled Considering Equity Management. Attendees are required to bring their Form 7 data from 2009, 2010 10−11:30 a.m. and 2011 for use during the workshop. Electric Rates and the Recovery of Fixed Costs: • Rod Crile, Regional Vice President, CFC Benefits of Minimum Bill Concepts During • John Grant, Vice President, Financial Products Periods of Declining or Negative kWh Growth and Services, CFC This session will focus on the development of retail electric rates with a minimum bill rate structure that recovers most or at 8−9:30 a.m. least a significant portion of a cooperative’s fixed costs. We will Reenergizing Your Cooperative Culture explore how this rate design can enhance and stabilize financial performance – particularly in declining or negative kWh growth When people feel a real passion for their work, they are more situations. Cooperative examples of the application of minimum productive, have a greater degree of job satisfaction and are bill rate structures and their impact in lowering energy charges more likely to project a positive image for the cooperative. This will be analyzed and discussed. interactive session will provide cooperative CEOs with effective Richard Cuthbert tools to create a sustainable cooperative culture and more inspired •  , Senior Consultant, Energy, and satisfied workplace. Environment & Infrastructure Solutions, SAIC Bill Edwards • Adam Schwartz, Founder & Principal, The Cooperative Way •  , Vice President, Regulatory Affairs, CFC

6 Forum 2012 Breakout Sessions at a Glance

MONDAY TUESDAY TUESDAY WEDNESDAY 2:15–3:15 p.m. 10–11 a.m. 1:30-2:30 p.m. 10-11 a.m.

Board & Employee Managing Crucial How to Most Effectively NERC’s Key Messages For Issues: An Executive Conversations Effectively Manage Employees for CEOs of G&Ts and CEOs Session for CEOs Only Within Your Cooperative from Different Electric Distribution Generations Cooperatives

For The Future of Carbon Tattoos in the What Are the Financial Cyber Security: Directors —Implications for U.S. Boardrooms Markets Telling Us About Protecting Your Power Generation the Future? Cooperative and Yourself

For Cyber Security on The Four Most Dangerous Managing Crucial Perspectives from Top CFOs a Budget Words in Finance: “This Conversations Effectively Rating Agencies Time It’s Different!” Within Your Cooperative

For Enhancements to CFC’s NERC’s Key Messages Perspectives from Top The Future of Carbon – G&Ts G&T Trend Report for CEOs of G&Ts and Rating Agencies Implications for U.S. Electric Distribution Power Generation Cooperatives

For more information about our strong lineup of speakers and additional conference details, visit the Thank You to the Forum 2012 Forum 2012 Web page. Planning Committee

Plan Your Attendance & Register Today Jay Bartlett Visit www.nrucfc.coop, select “Forum 2012” under “Events & President & CEO, Prairie Power (IL) Training” and click the “CFC Member Registration” link. There is no fee for CFC members to attend. Gary Cripps After you have registered for Forum, you will receive a printable CFO, Delaware EC (DE) confirmation screen and e-mail. Your confirmation will provide details on how to make your hotel reservation. Bruce Graham CEO, Kansas Electric Cooperatives, Inc. (KS) Hotel Information Wade Hensel The room block at the New York Hilton is sold out! We have General Manager, BENCO EC (MN) secured an overflow block of rooms directly across the street from the Hilton at the Sheraton New York Hotel & Towers. Shane Larson Occupancy rates are $239 for a single/double, $269 for a triple CEO, Rock Energy Cooperative (WI) and $299 for a quad. Rates do not include applicable taxes and fees, currently 14.75 percent plus a $2 occupancy charge and a daily hotel Debbie Robinson fee of $1.50 per room. General Manager, Wood County EC (TX) The cutoff date for the group rate at the Sheraton is June 15. To make a reservation at the overflow hotel, call 888-627-7067 Dave Schneider and use the group reference “CFC Forum Overflow.” Accounting Manager, Midstate EC (OR) Group rates are available three days prior to and following the conference dates, based on availability. Room type availability is not Jane Smith guaranteed. Director, Blue Grass Energy Cooperative Corp. (KY) You may want to check back periodically with the New York Hilton to see if additional rooms have become available within the CFC Steve Smith block. CFC is not maintaining a wait list of rooms. President & CEO, Hoosier Energy REC (IN) If you have any problems, please contact CFC’s Bernadette Waugh at 800-424-2954, ext. 1644. Matt Stanley Director of Finance, Laurens EC (SC) CPE and CEU Credits Bob Swindell Once again, we will offer both CPE and CEU credits for various Forum 2012 sessions. Detailed information about those credits will CEO, Access Energy Cooperative (IA) be available on the final agenda. Jeff Wadsworth CFO, Poudre Valley REA (CO) Forum 2012 July 8 –11 | Hilton New York

Co-sponsored by

Featured 2012 Forum Speakers

Mario Cuomo Tom Ridge Peggy Noonan Frank Abagnale Former Governor of New York First Secretary of U.S. Department of Columnist, Best-Selling Author, Security Expert; Acclaimed Subject (1983–1994) Homeland Security, Former Former Presidential Speechwriter of the Book, Movie and Broadway Play, Governor of Pennsylvania “Catch Me If You Can”

Sheldon C. Petersen Pete Domenici Alice Rivlin Ali Velshi CFC CEO Former U.S. Senator from New Mexico Former Vice Chair, Federal Reserve Board; CNN Chief Business Correspondent, (1973–2009); Co-chair, Bipartisan Policy Co-chair, Bipartisan Policy Center’s Debt Financial Expert Center’s Debt Reduction Task Force (2011) Reduction Task Force (2011); Senior Fellow, The Brookings Institution

J.R. Martinez Byron Dorgan Simon Sinek Joseph Grenny War Hero, Actor, “Dancing Former U.S. Senator from Marketing Consultant, Best-Selling Business Author on Leadership, with the Stars” Champion North Dakota (1992–2011) Author of Start With Why Influence and Communication