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Grocery Retail

Grocery Retail Is the Most Energy-Intensive Commercial Use in America. Are You Paying What You Actually Owe?

The U.S. Energy Information Administration benchmarks food sales buildings at 53.3 kWh per square foot annually — more than four times the average for all commercial buildings.

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Grocery RetailMay 6, 2025Michael Steifman, CEO

The U.S. Energy Information Administration benchmarks food sales buildings at 53.3 kWh per square foot annually — more than four times the average for all commercial buildings. A 50,000 square foot grocery store consumes roughly 2.67 million kWh per year.

At an average commercial electricity rate of $0.144 per kWh — the national average commercial rate as of early 2026, per EIA, up more than 10% year-over-year, that translates to roughly $384,000 in annual electricity costs before gas, water, and sewer. For a regional grocer with 40 stores, annual electricity expense now exceeds $15 million.

“For a regional grocer with 40 stores, annual electricity expense typically exceeds $15 million. The billing complexity — refrigeration loads, demand methodology, and large customer rate thresholds — creates systematic error opportunities that most operators have never examined.”— Michael Steifman, Founder & CEO, UtiliSave®

The billing complexity in the grocery sector is exceptional. It can involve multiple meter configurations serving front-of-store and back-of-store loads. It always has refrigeration systems that operate continuously. While both of these circumstances may qualify for special tariff treatment, such opportunities are often overlooked. Natural gas accounts use can be large for bakery, deli, and hot food preparation. Water accounts for produce misting, sanitation, and restrooms can also be sizeable.

The most common audit findings in grocery accounts are refrigeration load miscalculation, demand charge errors, and the lack of awareness of large customer rate schedules that become available at consumption thresholds most grocery stores exceed but never apply for.