Electricity Supply Versus Delivery at a Laundromat

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

Direct answer

Electric supply is the energy commodity—generation or purchases from a supplier or REP. Delivery is the regulated service that moves power over transmission and distribution lines to your meter. EIA notes that in retail choice areas you may choose supply while the utility still delivers. Demand, customer, and wire charges usually sit on the delivery side even when supply is competitive.

Cited: [1] U.S. Energy Information Administration · [2] Public Utility Commission of Texas · [3] Oncor · [4] Coin Laundry Association · [5] U.S. Department of Energy

Keep these

Key takeaways

  • Supply answers who sells you kWh; delivery answers who maintains wires to your laundromat.
  • Switching suppliers changes supply lines—not necessarily TDU delivery tariffs.
  • Texas ERCOT customers must select a REP in TDU territories; munis and many co-ops are exceptions.
  • Michigan electric choice faces a 10% cap with waitlist; Virginia small loads rarely qualify.
  • Atlanta laundromats typically remain on regulated electric supply while gas may use marketers.
  • Cutting kWh or kW is consumption strategy; changing REP is procurement—both show on one bill.

Definitions tied to your meter

Supply encompasses energy commodity costs—fuel, wholesale purchases, renewable certificates, and supplier margin. Delivery encompasses the regulated network: local distribution operators, transmission allocators, and metering services that keep your coin laundry energized during 16.6 mean daily operating hours per CLA's 2024 survey.

Oncor's delivery charge explainer separates TDU delivery from energy supply on Texas bills—a pattern repeated in other unbundled states. Even when supply is competitive, the TDU remains your delivery provider.

Supply versus delivery on typical commercial bills
CategoryUsually supplyUsually delivery
Energy kWh chargeYesSometimes bundled in regulated states
Demand kW chargeRareOften yes on commercial schedules
Customer chargeNoOften yes
Transmission cost recoveryNoYes
Distribution cost recoveryNoYes
MeteringNoYes

How choice states treat laundromats

EIA explains retail choice is territory- and customer-class specific—not universal nationwide. Texas mandates REP selection for most loads in TDU areas served by the Public Utility Commission framework, while Austin Energy, CPS Energy, and many co-ops remain bundled. Michigan limits choice to 10% of load with a waitlist. Virginia generally restricts choice for typical laundromat loads unless they exceed five megawatts or join an aggregation.

Georgia Power territory laundromats usually see bundled regulated supply and delivery on one bill; gas may follow Atlanta Gas Light's marketer model instead.

Decision framework for owners

When evaluating a supplier quote, map which bill dollars are in scope.

  • Step 1: Highlight supply subtotal on last twelve months of bills.
  • Step 2: Highlight delivery and demand subtotals separately.
  • Step 3: Confirm whether your load qualifies for choice in your state cap or size rules.
  • Step 4: Compare quoted supply $/kWh only to historical supply $/kWh.
  • Step 5: Track blended bill impact after one full cycle—delivery and peak kW may unchanged.
  • Step 6: Document that procurement does not replace efficiency work on washers and water heat.

Interaction with laundromat load profile

Gas dryers shift bulk drying energy off the supply kWh line but electric water heating keeps supply charges material—DOE cites water heating as about 50% of commercial laundry primary energy. Demand charges on the delivery side still respond when washers, boosters, and HVAC align during your open hours.

Procurement lowers the price per supply kWh; staggered starts lower billed kW—a different bill section.

Q & A

If I switch REP in Texas, does Oncor go away?
No. Oncor or your TDU continues as the delivery utility. You choose a REP for supply under PUC Texas rules; delivery charges remain on the bill as regulated TDU fees. Your laundromat still calls the TDU for outages and meter issues.
Can a Michigan laundromat shop supply today?
Michigan electric choice is capped at 10% of utility load with a waitlist. A typical single-store laundromat must verify whether its utility has open choice slots before assuming competitive supply is available.
Does supply versus delivery matter if I am not in a choice state?
Yes. Even bundled bills often show transmission and distribution riders separately from energy charges. Understanding the split helps you spot which riders changed when the total jumps and separates procurement conversations from regulated rate cases.

Sources

  1. EIA Retail Choice FAQU.S. Energy Information Administration

    Supports: Choice territory-specific; utility delivers

  2. PUC Texas Electric ChoicePublic Utility Commission of Texas

    Supports: REP selection in competitive areas

  3. Oncor Delivery Charges 101Oncor

    Supports: TDU delivery separation

  4. CLA Member Survey 2024Coin Laundry Association (2024)

    Supports: Operating hours context

  5. Commercial Laundry Energy UseU.S. Department of Energy

    Supports: Water heating load on supply kWh

Related guides

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

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