Hospital Electricity Costs in Ohio: 2026 Buying Guide

Updated October 15, 2026Ohio Commercial Energy editorial teamHow we review content Book a free 15-min bill review

How much electricity do hospitals use?

CBECS 2018 puts inpatient health-care buildings at about 28.8 kWh per square foot per year; the average inpatient building uses about 7.6 million kWh a year.

Illustrative site	Annual use	Est. peak demand	Est. capacity tag	Capacity cost at 2026/27 price	Value of 0.5¢/kWh
120,000 ft²	3.46 million kWh	564 kW	507 kW	$60,943/yr (≈1.8¢/kWh)	$17,280/yr
300,000 ft²	8.64 million kWh	1,409 kW	1,268 kW	$152,359/yr (≈1.8¢/kWh)	$43,200/yr
600,000 ft²	17.30 million kWh	2,818 kW	2,536 kW	$304,717/yr (≈1.8¢/kWh)	$86,400/yr

How these numbers are built: annual use = 28.8 kWh/ft² (EIA CBECS 2018 Table C14, inpatient health care (mean; median 30.4; 25th-75th pct 22.2-35.3)). Peak demand assumes a 70% load factor; the capacity tag assumes 90% of that peak falls in the grid's summer peak hours. Capacity cost uses PJM's 2026/27 clearing price of $329.17/MW-day (about $120 per kW-year) before utility scaling factors. These are illustrations for sizing a decision — your own bills and interval data are what suppliers price.

Where the electricity goes

Ventilation is about 29% of inpatient electricity in CBECS (air-change requirements), with cooling and lighting at about 12% each, computing about 8%, and medical and miscellaneous equipment about 29%.

When the load peaks — and why that matters for price

Hospitals run 168 hours a week with a high, steady base and a summer afternoon peak driven by chillers. Imaging suites and surgical HVAC add demand spikes during weekday hours.

In Ohio's PJM market, the capacity part of your generation cost is set by how much you use during the grid's few highest summer peak hours. With a 70% load factor and about 90% of the site peak landing in those hours, capacity alone works out to roughly 1.8¢ per kWh at the 2026/27 price of $329.17/MW-day — compared with about 0.2¢ at the 2024/25 price of $28.92. That jump, not the energy price, explains most of the 2025–2026 increase in Ohio business electricity bills.

How hospitals in Ohio buy electricity

Hospitals are mercantile customers with large, predictable loads; they typically buy through a structured RFP and often use layered or block-and-index products to separate capacity and energy risk.

If you…	Usually consider
need a fixed monthly budget	a 12–36 month fixed price with capacity included (fixed vs variable)
can move load away from summer peak hours	a product that passes capacity through at cost, so reducing your capacity tag lowers your bill
use more than 700,000 kWh a year at a site	an interval-data RFP, block-and-index structures, and HB 15's behind-the-meter options
are 700,000 kWh a year or less and never chose a supplier	first check whether you're already in a community aggregation program

Ohio rules that affect this industry

HB 15 lets mercantile customers (over 700,000 kWh a year) connect their own or third-party generation behind the meter, which matters for resilience projects.
Supplier choice applies to customers of AEP Ohio, Duke Energy Ohio, AES Ohio, Ohio Edison, The Illuminating Company and Toledo Edison. Municipal-utility and electric-cooperative customers generally can't choose a supplier.
Ohio does not charge sales tax on electricity; the per-kWh excise tax does appear on bills.
As of 2026, Ohio's utilities do not offer general business efficiency rebates, so upgrades must pay back on bill savings (plus any federal tax treatment).
Under HB 15 (effective August 14, 2025), suppliers must send two notices before a fixed-rate contract rolls to a variable rate — but only to accounts with demand of 25 kW or less. Larger sites should track their own expiration dates.

Ways hospitals cut electricity costs

Re-commission air handlers and verify air-change rates against current codes; over-ventilation is common and expensive.
Optimize chilled-water plant sequencing and supply temperatures; the plant often sets the annual peak.
Use emergency generators for PJM demand response only where permitting and code allow — it can offset capacity costs.
Track capacity tags (PLC) each year; at 2026–2029 capacity prices a single megawatt of PLC is worth roughly $120,000 a year.

FAQ

How much electricity does a hospital use?

CBECS 2018 reports about 7.6 million kWh a year for the average inpatient building, or 28.8 kWh per square foot.

What drives a hospital’s electric demand charge?

Mostly chilled-water cooling and ventilation on hot weekday afternoons.

Can hospitals use backup generators to cut costs?

Sometimes, through PJM demand response or peak-shaving, but emissions permits and life-safety rules limit how emergency generators can run.

Sources

Operating evidence for the next contract

For hospitals, an electricity quote should reflect the actual operation rather than a generic business category. Give the reviewer the opening schedule, continuously required systems, planned equipment changes and the responsible legal customer. A national building benchmark can frame a question, but cannot prove the usage or saving at your facility.

Evidence to review	Decision it supports
Current operating schedule and required service levels	Identify whether the quoted load shape represents the next term, rather than last year’s business
Equipment and controls associated with hospital operations	Separate a procurement question from an engineering or maintenance question
A committed expansion, closure or tenant/ownership change	Review usage tolerance, assignment and site add/delete rights before signing
Written supply inclusions and exclusions	Distinguish an energy-only offer from a product that includes capacity or other components

Separate safe operating changes from price decisions

Use an appropriate facility specialist to validate technical changes. Track capacity tags (PLC) each year; at 2026–2029 capacity prices a single megawatt of PLC is worth roughly $120,000 a year. Treat that as a potential review item, not a guaranteed saving or permission to alter safety-critical settings. Medical, food, process and temperature requirements take precedence over an energy target.

Retain a base case without assumed rebates or unapproved tax benefits. If a project materially changes electricity use, ask the supplier how it affects the contract rather than silently carrying the old consumption profile forward. A lower supply price and reduced consumption are separate effects and should not be counted twice.

Keep the bid review practical

Compare at least the proposed start date, included components, monthly fees, renewal clause, exit rules and the treatment of expected load changes. Ask who is responsible for enrollment and what happens if a meter cannot switch on the expected date. An adviser should be able to explain why staying on the current arrangement may be appropriate.

The browser-only comparison tools keep inputs private. Start an Ohio electricity inquiry with the utility and question, without bills or account identifiers. For the common vocabulary behind the comparison, consult PUCO’s bill definitions.