Page 18 RAIN Aug./Sept. 1980 In Duluth, Minnesota, 48 people are joining together to form a wood buying cooperative, utilizing waste wood discarded by a local wood processor. In Jamaica Plain, Massachusetts, a building materials co-op which purchases and installs home insulation has been operating since April 1978. Both of these new cooperatives are part of a growing trend of "energy cooperatives" forming throughout the continenL By pooling resources and purchasing in volume, homeowners, co-op apartment owners, and renters have been able to enjoy a savings on energy costs unavailable to individuals. Like most cooperative ventures, the immediate "4rawing card" is an economic one. Bulk buying, whether it be for oil, wood or insulation, puts members in a bargaining position for reduced prices and occasionally increased services. Energy co-ops have taken a variety of forms-from centrally administered programs (su~h as fut!lbuying c9nsortiums) to member operated and run.businesses. With the exception of wood-purchasing co-ops in the Northwest, most energy co-ops have focused on conventional, non-renewable. sources of energy. That trend is beginning to ch~nge. While the immediate concern is to provide basic needs at lower prices, the long-term potential of energy co-ops to advocate development and use of renewable energy sources and,appropriate technologies is only now being realized. • Similar in style to food cooperatives, oil purchasing co-ops /consortiums operate by utilizing the leverage of numbers. The more members (volume) that a cooperative can sustain in a concentrated geographic area, the better the deal that can be negotiated with the local wholesaler-in this case an oil distributor. Greater volume in a concentrated area, and reduced paper work (some co-ops handle their own paper work for the distributor) are the prime motivators for distributor interest-reputed to be high in most cities. While the particular structures may vary, the establishment of a self-sufficient base is a major consideration of every co-op. The investment of unused funds (such as the summer payments of a co-op which utilizes a year-round payment plan) in a high interest savings account is one strategy that co-ops use to accrue savings for operational expenses. After the negotiations are made and the contract is signed, oil purchasing cooperatives and consortiums are able to offer their members a savings of 10 to 20 cents on each gallon of oil. The New York Association of Neighborhood Housing Development (ANHO) Fuel Consortium, in its seco~d year of operation, acts as a liaison between the fuel supplier and member buildings. Over 23 buildings,·scattered through Manhattan, Brooklyn and the Bronx, participate in the program. Their goal for this next heating season is 125 buildings, including low, moderate and high income buildings. Eventually they hope to diversify their services to include purchase plans for building supplies and storm windows-major needs for inner-city apartment buildings. Last fall in Philadelphia, a food co~op and credit union organized a fuel co-op for their members. With only 50 participants, the Weaversway co-op is planning a dramatic expansion this year. Instead of soliciting individual memberships, Weaversway Fuel co-op will include organizations as members-co~munity organizations, neighborhood groups and religious institutions. Similar to the ANHD,model; Weaversway will contract with a local distributor for a discount on services provided to members. A capital investment of $50 by each organization will enable all of its members to benefit from the services of the cooperative. The discount they have negotiated is lower than the consortium's 3 cents/gallon, but no paperwork is involved. Lower operating costs, the initial capital in- , vestment, and a larger number of experienced members may enable this co-op to achieve financial stability somewhat sooner than the consortium. Their futur~ goals include operating an energy audit service and group purchases of conservation and solar materials. While the focus in the north has been.predominantly on home heating, some warmer states, such as California, have focused on transportation costs. In January of this year, the Sacramento City Fuel co-op incorporated with approximately'75 members, to form a gasoline co-op. The initial groundwork for the co-op includes the purchase of an "out.of the way" gasoline station and increasing membership. By buying wholesale and operating on a non-profit basis, the co-op will be able to provide gasoline at 20 cents a gallon less than standard gas stations (wholesale prices are 25% less than
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