Holdover Rates on Laundromat Supply Contracts
Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.
Direct answer
A holdover rate is month-to-month supply pricing applied after a laundromat energy contract expires without renewal. Holdover appears on supply portions of bills and is often higher than negotiated fixed rates. Owners recognize holdover by comparing post-expiry supply $/kWh or $/therm to signed contract months.
Definition: Holdover rate
Holdover terms live in supplier contracts—notice periods, maximum duration, and exit requirements vary. Holdover differs from utility default service labels used in some states.
Acquisition diligence should flag contracts nearing expiry to avoid closing into immediate holdover.
Laundromat example
A gas marketer contract ends March 31; April bills show supply at 12% above the prior fixed rate with no new contract signed—holdover pricing until the owner completes a renewal RFP.
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
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