What a demand charge is on a commercial laundry bill
Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.
Direct answer
A demand charge bills your highest average electric draw in kilowatts during a defined interval—commonly 15 or 30 minutes—within the billing period. Laundromats can hit demand peaks when washers, water heaters, and HVAC overlap even if total kWh looks stable. Demand is usually a delivery tariff element but appears as its own line on commercial bills.
Definition: Demand charge
Utilities use demand charges to reflect infrastructure needed to serve short-term peaks, not just total energy consumed. Coin laundries with extended hours may register peaks when morning rush aligns with electric water heating recovery.
Demand charges differ from energy charges: reducing LED kWh may not lower kW if peak equipment still starts simultaneously. Interval meter data helps owners time peaks to specific operational windows.
Laundromat example
A 30-pocket store bills 68 kW demand at $9 per kW alongside 12,000 kWh energy use. A single afternoon when all washers extract while rooftop HVAC runs full may set the month's peak even though gas dryers handle drying heat.
Related terms
Sources
- EIA Retail Choice FAQ — U.S. Energy Information Administration
Supports: Utility still delivers in choice states; supply may be separate
Owner desk
Need help reviewing your bills or quotes?
Share your utility territory and contract timing. We provide independent supply-side guidance where your market allows—not utility sales or guaranteed savings claims.