Capacity versus demand versus energy
Energy charges scale with kWh—every washer cycle and light hour CLA members run across their long shifts. Demand charges scale with highest interval kW under Oncor-style 15-minute or Pepco-style 30-minute rules. Capacity charges scale with obligations to have enough generation or load resources available when the grid peaks—often tied to regional market rules rather than your daily coin drop count.
A laundromat can use fewer kWh after efficiency upgrades yet still carry a capacity tag set by a prior summer peak when every washer and HVAC unit ran together.
| Charge | Typical driver | Laundromat relevance |
|---|---|---|
| Energy ($/kWh) | Total kWh | Water heat, lighting, long open hours |
| Demand ($/kW) | Interval peak kW | Simultaneous washer/HVAC starts |
| Capacity ($/kW or fixed) | Peak tag, PLC, or class allocation | May persist after peak month |
Where capacity appears on bills
Labels vary: capacity cost recovery, PLC charge, ICAP, reserve margin, or capacity rider. In retail choice states, supply contracts may itemize capacity pass-through from the wholesale market while delivery charges remain with the TDU. EIA notes the utility still delivers regardless of supplier.
Georgia Power bundled bills and Texas REP itemizations show different formatting—always trace riders on a year of bills to spot capacity line introduction.
Interaction with laundromat load
Gas dryers shift drying therms off electric supply but leave electric water heating as a major kWh and potential peak contributor—DOE places water heating at about 50% of commercial laundry primary energy. EPA WaterSense attributes roughly 90% of washer operating energy to water heating. Capacity tags tied to kW peaks therefore may track washer and HVAC overlap more than gas dryer banks.
Stores open 24 hours—18% in CLA's 2024 survey—spread energy use without necessarily lowering the single interval that sets capacity if that interval was a busy afternoon.
Owner review framework
Use this when a bill jumps without kWh change.
- Identify capacity-labeled lines separately from demand-labeled lines.
- Note whether capacity uses current month kW or a historical ratchet.
- Compare capacity dollars month over month against tariff rider notices.
- Ask supplier whether fixed contracts include or exclude capacity pass-through.
- Do not confuse capacity reduction with shopping a lower $/kWh supply rate alone.
- Request tariff sheet definitions for acronyms on your bill.
