Heating Degree Day


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Related to Heating Degree Day: Cooling degree day

Heating Degree Day

A day on which the temperature in a certain area is below 65 degrees Fahrenheit, necessitating the use of heaters. Heating 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 heating degree day in a month, depending on how much cooler 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: Cooling degree day.
References in periodicals archive ?
In principle we could simply find the ratio of energy usage to heating degree days using on-site weather data, and multiply by the HDD associated with the TMY3 file (See Equation 1).
i] are monthly heating degree days and cooling degree days respectively for region i where regions are defined as the area served by a particular power distribution company, in this case, KESC, [T.
19) The weather variables were the actual average temperatures during 1979, the highest temperature in the summer, the lowest temperature during the winter, the number of heating degree days during 1979, and the number of cooling degree days.
5 percent, respectively, despite an overall decline in heating degree days primarily due to warmer temperatures in the Pacific Northwest during the month of January.
We managed to partially offset the impacts of a record-setting warm winter by managing expenses and by also recording gains from weather derivative contracts that we'd entered as a hedge against variations in heating degree days, such as occurred this past winter," explained Paul J.
Actual heating degree days across the company's service areas were 487 in the second quarter 2015, 26 percent warmer than normal and 30 percent warmer than the same period last year;
There were 20 percent fewer heating degree days in the first half of 2012 than in the first half of 2011, Unitil said.
Lower gas therm sales in the Company's utility service territories reflect the effect of warmer temperatures in 2010, where there were approximately 22% and 12% fewer Heating Degree Days in the the three and six month periods, respectively, compared to the prior year.
Riker says the company already has created more than 500 customized indexes for five industries, based on weather correlations over specific time periods to benchmarks such as heating degree days.
Currently, New York is at 68% of normal heating degree days.
In fact, when calculating the heating degree days, the National Oceanic Atmospheric Administration is predicting that this winter will be 5.
The Merc offers monthly contracts based on heating degree days expected in those cities.