Will upgrading to gas dryers eliminate demand charges?

Not necessarily. Gas dryers still draw about 0.35 kWh per load for motors and controls in California IOU testing, but the larger kW peak often comes from washers, water heating, and HVAC. Demand charges reflect your interval peak kW, not fuel type on dryers alone.

How do I calculate what demand cost me last month?

Sum every demand-related line on the bill—often labeled kW or demand charge—and divide by the billed kW figure shown. That effective $/kW complements blended $/kWh math. Use your actual bill numbers; utilities publish different $/kW rates by tariff.

Do 24-hour laundromats face higher demand risk?

CLA's 2024 survey shows 18% of members open 24 hours. Longer hours spread kWh but do not automatically raise kW unless more equipment runs at once. Peak risk depends on overlap, not hours alone—compare interval peaks to busy daytime windows even at 24-hour stores.

Demand Charges for Laundromats Explained

Demand Charges on Laundromat Electric Bills

Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.

Direct answer

Demand charges bill your highest average kW during a short interval—often 15 minutes on Oncor-style tariffs or 30 minutes on Pepco DC large general service examples. They pay for capacity on the grid, not total kWh. Laundromats can hit peaks when washers, electric water heating, and HVAC overlap during long open hours—CLA reports a mean 16.6 hours per day—even if gas dryers dominate therms.

Cited: [1] Oncor · [2] Coin Laundry Association · [3] U.S. Department of Energy · [4] U.S. EPA · [5] International Mechanical Code

Keep these

Key takeaways

kW demand is a peak snapshot; kWh is cumulative energy over the month.
Oncor notes demand billing may apply above 10 kW on certain schedules.
Pepco DC uses 30-minute interval demand at or above 25 kW for its GSLV example.
Gas dryers contribute little kW per California IOU test data—0.35 kWh per load—so peaks often come from washers and water heat.
Lowering demand is operational—staggering loads—not the same as switching energy supplier.
Effective $/kW = demand charges ÷ billed kW for monthly tracking.

What demand measures

Utilities recover fixed network costs partly through demand charges tied to your maximum average power draw during a billing interval. Unlike kWh, which adds every hour of use across your CLA-survey-average 16.6 daily open hours, demand captures the worst simultaneous draw—often when multiple washers extract, booster heaters run, and rooftop HVAC loads on a summer afternoon.

California IOU gas dryer testing averaged only 0.35 kWh per load on the electric side, so dryer banks alone may not explain a high kW peak if drying is gas-fired. Electric water heating can represent a large share of laundry energy—EPA WaterSense cites roughly 90% of washer operating energy in water heating—making hot cycles peak contributors.

Interval length and tariff thresholds

Your tariff sheet defines both the interval over which kW is averaged and the kW level where demand billing starts. Oncor materials reference the highest 15-minute kW interval and movement to demand rates above 10 kW. Pepco's District of Columbia general service large volume example bills demand on a 30-minute interval for accounts at or above 25 kW.

Read your exact schedule name on the bill before applying generic rules—municipal utilities and co-ops use different breakpoints.

Documented interval examples (verify your tariff)
Utility example	Interval	Noted threshold
Oncor TDU tariff materials	15-minute	>10 kW may move to demand schedule
Pepco DC GSLV example	30-minute	≥25 kW demand billing

Demand versus supply procurement

Retail electric supply contracts priced in $/kWh do not replace demand charges that sit on the delivery side in many choice states. EIA notes utilities continue delivering after you switch supplier. Cutting peak kW through scheduling, phased equipment enable, or HVAC setpoint management attacks demand line items; renegotiating supply attacks energy line items.

Both levers appear on the same bill but answer different operational questions.

Peak management checklist for coin laundries

Operational tactics—verify impact on your interval meter before capital spend.

Map which machines start simultaneously during busy periods.
Review electric water heater recovery settings relative to fill schedules.
Note whether makeup air fans per IMC 504.7 for exhaust over 200 CFM add constant baseload versus peak.
Compare billed kW month to month alongside revenue or vended load counts.
Request interval data from the utility if available before major electrical upgrades.
Separate demand spike months from rate rider changes when investigating bill jumps.

Q & A

Will upgrading to gas dryers eliminate demand charges?: Not necessarily. Gas dryers still draw about 0.35 kWh per load for motors and controls in California IOU testing, but the larger kW peak often comes from washers, water heating, and HVAC. Demand charges reflect your interval peak kW, not fuel type on dryers alone.
How do I calculate what demand cost me last month?: Sum every demand-related line on the bill—often labeled kW or demand charge—and divide by the billed kW figure shown. That effective $/kW complements blended $/kWh math. Use your actual bill numbers; utilities publish different $/kW rates by tariff.
Do 24-hour laundromats face higher demand risk?: CLA's 2024 survey shows 18% of members open 24 hours. Longer hours spread kWh but do not automatically raise kW unless more equipment runs at once. Peak risk depends on overlap, not hours alone—compare interval peaks to busy daytime windows even at 24-hour stores.

Sources

Oncor Delivery Charges 101 — Oncor
Supports: 15-minute demand; >10 kW threshold
CLA Member Survey 2024 — Coin Laundry Association (2024)
Supports: 16.6 mean hours; 18% 24-hour
California IOU CASE 2013 Gas Dryer Test — U.S. Department of Energy (2013)
Supports: 0.35 kWh per gas dryer load
WaterSense Commercial Laundry — U.S. EPA (2023)
Supports: Water heating ~90% washer operating energy
IMC 504.7 Makeup Air — International Mechanical Code
Supports: Makeup air when exhaust >200 CFM
EIA Retail Choice FAQ — U.S. Energy Information Administration
Supports: Delivery continues after supply switch

Row of commercial dryer drum openings with a warm heat glow.

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