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Cooling Degree Day

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Cooling Degree Day
A day on which the temperature in a certain area is above 65 degrees Fahrenheit, necessitating the use of air conditioners. Cooling degree days are used in some weather futures, which are contracts in which the buyer is required to pay the seller some multiple of $20 for each cooling degree day in a month, depending on how much warmer it is. Weather futures allow businesses to hedge against potential losses resulting from unexpected changes in weather. Energy companies are the most common sellers of weather futures. They have become relatively popular investments. See also: Heating degree day.


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At first thought, 3 degrees doesn''t seem like all that much; however, if you convert the temperatures to cooling degree days , as shown in Figure 9, the results look dramatic.
The actual heating and cooling degree days during the year beginning 15 January 2007 were 2,393 [degrees]C.
Facility executives can also develop an even more sophisticated measurement and verification report by considering other factors like heating or cooling degree days and other changes in the building, such as operating hours, or equipment added or removed.
 
 
 
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