One of the biggest challenges that small energy-supply companies face is consolidation by large conglomerates with a lot of buying power. To level the playing field, some of those companies are joining forces through the IDEAL Energy Cooperative, the nation’s first and only purchasing cooperative for independent fuel dealers. The Brentwood-based cooperative recently celebrated its fifth anniversary and today has 35 core member-owners representing nearly 100 retail fuel provider locations. Its member-owners have more than 300,000 customers, nearly 2,000 employees collectively, and generate over $720 million in business revenue.
Ryan Jackson, CEO at D.F. Richard Energy in Dover, whose 14,000-plus customers stretch from southern Maine to the Seacoast, was among the first companies to join IDEAL Energy Co-op when it began in late 2019. “When big companies buy up smaller energy companies it takes that community-based fuel supplier control away and people lose community commitment,” he says, adding that D.F. Richard Energy is involved with local t-ball and softball teams as well as the Chamber of Commerce. “We felt we could contribute as a group to the Co-op and with the rebate structure also recoup some of our costs,” Jackson adds, referring to a program IDEAL offers that allows members to earn rebates by doing business with its partner network.
IDEAL, which is an acronym for Independents Delivery Energy Aligned Locally, was created to support and protect local fuel (propane, heating oil, diesel fuel, kerosene, gasoline) and HVAC service providers, says Kris Magnuson, the Co-op’s founder.
“We aggregate our members’ purchasing power to lower fuel, equipment, and essential business service costs,” Magnusson says. “Our members have sold over 300 million gallons of fuel to help provide local energy security to our communities while elevating our owners’ operational excellence through owner-driven best practices. And finally, we work closely with vetted fuel suppliers, equipment vendors, and business service providers to ensure our member-owners save time and money.”
Each year, IDEAL opens a limited number of member-owner spots to ensure they maintain strategic growth through referrals, Magnuson says.
Jackson says D.F. Richard made an initial investment into the co-op and has quadrupled the company’s investment. “With all of the consolidation going on with retail energy operators, it is great to know that I have a team helping me compete at every level with purchasing, marketing, and best practices,” he says. For more information, visit idealenergycooperative.com.
