Purchasing cooperative forms for energy retailers

Click to enlarge. Cooperative IDEAL Energy purchased 179 million gallons of propane and distillate in 2019. Image courtesy of IDEAL Energy

Purchasing cooperative IDEAL Energy has formed for local energy retailers.

IDEAL Energy (Independents Delivering Energy Aligned Locally) is a member-owned cooperative of local energy distributors that aims to deliver heating and transportation fuels through an independent network, according to the cooperative.

IDEAL works with local, privately-held energy retailers. It says it helps local providers defend margin, prevent volume erosion, share operational expertise and offers a fuel-local brand to gain customers.

“One of our greatest member benefits is our strength as a community by aggregating resources,” says Kris Magnusson, general manager and co-founder of IDEAL. “For example, during this COVID-19 crisis, those members who applied for [the Paycheck Protection Program] were approved to receive this assistance in record time. Our ability to offer guidance helps strengthen our members’ core businesses.”

“My business has been directly helped by IDEAL,” says Ryan Jackson, COO of D.F. Richard and board chair of IDEAL. “The cooperative brings our company pre-vetted, industry-leading supplier and vendor partners, which have already saved my business significant bottom-line dollars. IDEAL’s attention to member best practices and development helps to maintain our edge over our competitors, while maintaining our own identity and brand.”

Founded in October 2019, the cooperative has a member footprint, as well as supplier and vendor partners, throughout New England, New York and Pennsylvania. IDEAL currently has buying power of more than 179 million propane and distillate gallons and half a billion dollars in business revenue.