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.
References in periodicals archive ?
Colder winter weather in the first quarter of 2007 was offset by a substantial reduction in second quarter cooling degree days relative to 2006 .
4% Weather statistics 10 Yr Average Heating degree days 87 16 80 Cooling degree days 824 1,149 958 (a) Excludes $6.
1988] reported that precipitation, humidity, heating degree days, and cooling degree days were negatively related to housing expenditures - a proxy for land values - while wind speed, sunshine, and being close to the coast were positively related.
The coefficient for cooling degree days was also positive but not significantly different from zero.
21 weather primarily due to 23 percent higher cooling degree days and 14 percent higher heating degree days than 2009.
Finally, annual heating and cooling degree days have also changed; on average, annual heating degree days base 18.
02 weather primarily due to cooling degree days 9 percent higher than 2009 and 15 percent higher than normal
The actual heating and cooling degree days during the year beginning 15 January 2007 were 2,393 [degrees]C.
The number of cooling degree days in July 2003 was 13 percent above normal and 20 percent above the level recorded in July 2002.
The weather derivative contracts covered by the weather portfolio swap include call options, put options and swaps, and are based on heating degree days, cooling degree days and average temperature degree days.
Actual cooling degree days were 35% lower than last year and 13% lower than normal.
The weather derivatives are based on heating degree days (HDD) or cooling degree days (CDD).