Load Factor on Laundromat Electric Accounts
Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.
Direct answer
Load factor compares average electric demand to peak demand over a billing period—higher load factor means steadier use relative to peaks. Laundromats with spiky washer and HVAC overlap may have lower load factor, making demand charges costly relative to kWh. Improving load factor spreads peaks across more operating hours when equipment scheduling allows.
Definition: Load factor
Load factor is often calculated as (total kWh) divided by (billing days × 24 × peak kW), expressed as a percentage. Stores open long hours per CLA survey norms sometimes improve load factor versus short-hour retail, but simultaneous equipment starts still depress it.
Brokers and utilities use load factor conversationally when discussing whether demand charges dominate a tariff fit.
Laundromat example
Two stores each use 10,000 kWh monthly, but Store A peaks at 50 kW while Store B peaks at 30 kW due to staggered washer timing—Store B likely pays less demand even with identical kWh.
Related terms
Sources
- EIA Retail Choice FAQ — U.S. Energy Information Administration
Supports: Utility still delivers in choice states; supply may be separate
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