What is Weather Normalization?
WHAT IS WEATHER NORMALIZATION ………AND WHAT DOES IT MEAN TO YOU?
Weather is the most influential factor to impact your energy usage. Because weather can vary dramatically from year to year, establishing a benchmark is not as simple as comparing one year to the next. “Weather Normalization” creates a benchmark by averaging 20 years of individual daily weather information into a single year. Normalizing takes into account the effects of weather on any energy usage period (day, month or year). By doing so, you can see the effects of weather on your energy usage and plan for future weather forecasts. So if your energy consumption is sensitive to weather, and the forecast for winter is colder than normal, you could enter into an agreement to buy more at a fixed rate.
WHY NORMALIZE FOR WEATHER?
Using Weather Normalized energy usage will allow you to establish the amount of energy you will use for an average year’s weather (called your usage profile). Comparing changes between Weather Normalized usage profiles can detect deteriorations in heating plant efficiencies, uncover energy losses, or indicate increased process demand.
WHAT IS NORMAL?
This is based on a 20-year average consisting of two consecutive decades. Currently the years 1990 through 2010 are used for calculating normal. Normal weather takes into account the degree days, or specifically the Heating and cooling degree days, for 20 years. Using a 20-year normal for comparison allows for meaningful analysis vs. year-to-year fluctuations.
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