Industry
Commercial electricity for nursing homes and assisted living
Occupied around the clock, so the base load is high and the peaks are modest next to it.
Nursing homes and assisted living typically run a moderate to high load factor, which means supply price and contract timing carry most of the controllable cost. Occupied around the clock, so the base load is high and the peaks are modest next to it.
Never far below half of peak: rooms, corridors and care areas run day and night, with modest bumps around laundry and meals. There is little peak to shave and a large base to price.
Illustrative shape, not measured data. It shows the pattern this kind of operation tends to follow, which is why its bill behaves the way it does. Your real profile comes from your own interval data, and it is the only version that can produce a number.
What the federal building survey says
In 2018 the U.S. Energy Information Administration surveyed 6,436 commercial buildings and recorded the electricity each used. These are the surveyed buildings that match nursing homes and assisted living, in kWh per square foot per year. Each is a whole building classed by what fills the most of it, so a single tenant space inside a larger building can use more or less.
Nursing home or assisted living
20.0kWh per sq ft a year, median
The middle half of surveyed buildings used 8.9 to 28.2. Nearly all fell between 5.5 and 39.1.
A typical one is 29,500 sq ft. At the median that is about 589,115 kWh a year, roughly $7,100 a month at the US average commercial price.
114 surveyed buildings Fair
Estimate your buildingSurvey year 2018, so this is the usage pattern, not a forecast. Prices here are today's: the US average commercial price for the 12 months to the latest EIA month. The cost estimator does the same for your own floor area and state.
What drives the load
- Heating, cooling and ventilation for resident rooms and common areas
- Kitchen and dining equipment
- Laundry
- Domestic hot water
- Corridor and common-area lighting that never fully switches off
- Care equipment, call systems and emergency systems
The trap this industry falls into
With residents in the building every hour of the year, there is little idle time to cut and little peak to shave, so most of the controllable cost sits on the supply side. The costly mistake is a supply contract that ends unnoticed and rolls onto a default or holdover rate because nobody owns the date.
What to actually do
- Put the contract end date, and a decision date months before it, on a shared calendar
- Check laundry and kitchen start times against the existing afternoon peak
- Find out whether hot water is electric and when it recovers
- Review setpoints and run times in dining rooms and activity rooms that are used only part of the day
- Ask for interval data before a renewal, so a supplier prices the real shape of the load
Which half of the bill to attack
A commercial bill splits into supply, which a competitive supplier can price where a competitive market exists, and delivery, demand, fixed charges and riders, which stay regulated whichever supplier you use. Load factor decides which half is worth your attention, and for nursing homes and assisted living the answer is usually clear.
At a moderate to high load factor, consumption is steady and there is comparatively little peak to attack. That pushes the controllable cost toward the supply side: the rate, the contract structure and above all the timing of the renewal. For an operation like this, a contract that expires unmanaged is usually the most expensive single event in the year.
That does not make the regulated half irrelevant — rate schedule fit and billing accuracy still apply — but it does mean the sequence is different. Get the contract calendar right first.
The mechanics behind this: load factor, demand charges and rate schedule fit.
What we need to give you a real answer
- 24 months of bills if available
- Contract end date and current structure
- Interval data
- Whether laundry, kitchen and hot water are electric or fuel-fired
- Number of beds and occupancy
The item that most often turns a vague conversation into a specific finding is twelve months of peak kW. A single bill shows what you paid; twelve months of demand readings show the shape that caused it, and the shape is where the recoverable money is.
Send one recent bill. We compute the supply, delivery and demand split for your account and tell you which of the levers above is actually worth your time.