Catalyst 2016: Calendarization & Normalization
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Gain a better understanding of degree days and how they are used with linear regression in the calendarization and normalization process.
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Catalyst 2016: Calendarization & Normalization
- 1. Calendarization & Normalization Steve Heinz, PE, CEM Founder & CEO EnergyCAP, Inc.
- 2. Calendarization ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 3. EnergyCAP ‘Reporting Month’ Each utility bill is assigned to a reporting month when entered, called the Billing Period. Example: A bill for April 20–May 20 is assigned to Billing Period of May because a majority of the days are in May even though 1/3rd of the consumption was in April. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 4. EnergyCAP ‘Reporting Month’ A 60-day water bill for April 20–June 20 will be called a May bill (May being the reporting month); April and June will report zero consumption. For some users, “smoothing out” bills to the calendar month in which the consumption occurred is preferred. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 5. This process is called Calendarization ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 6. Why Calendarize? Better month-to-month and year-to-year comparisons “Smooth out” multi-month bills More representative of actual monthly energy usage ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 7. Why Calendarize? (cont’d) Better reports and graphs Fewer “false alarms” and wasted investigation time Available only in EnergyCAP Online versions ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 8. Calendarization Process ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 9. Non-weather sensitive meters Simple average daily use and cost allocation Spread it out based on days in each calendar month ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 10. Non-weather sensitive meters ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 11. Weather sensitive meters Split bill into weather sensitive and non-weather sensitive pieces Simple per day allocation of non-weather sensitive piece Degree day proration of weather sensitive piece ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 12. Weather sensitive meters ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 13. Most important concept: On an annual basis, the use and cost totals of calendarized data are equal to actual utility bills (exception: possible year-end rollover) ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 14. Calendarization is a better way to report and display the data. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 15. Non-Calendarized Data ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 16. Calendarized Data ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 17. How do we determine weather sensitivity? Similar to Cost Avoidance (M&V) Statistical correlation of usage vs. degree days Summer and winter analyzed separately Results visible for any meter ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 18. Weather sensitivity ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 19. Normalization ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 20. Why Normalize? Better year-to-year comparisons of usage (only) Shows energy usage reduction attributable to your efforts, not due to the weather Available only in EnergyCAP Online versions ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 21. Normalization Process ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 22. Most important concept: Normalization shows estimated (hypothetical) data “How much would I have used if the weather had been equal in every year to 2012?” ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 23. Non-weather sensitive meters Simple average daily use and cost allocation No adjustments are made Spread it out based on days in each calendar month For non-weather sensitive meters, normalized data=calendarized data ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 24. Weather sensitive meters Split the bill into weather sensitive and non-weather sensitive pieces Simple per day allocation of the non-weather sensitive piece Degree day adjustment of the weather sensitive piece ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 25. Simpler Normalization Process Q: Wouldn’t this be a lot simpler if I just divided my total usage by total degree days, to give me a simple usage per degree day index? A: Yes, it would be simpler. It would also be totally invalid, so don’t waste your time doing it. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 26. Simpler Normalization Process (cont’d) The “divide all usage by degree days” assumes that 100% of usage is weather sensitive But, you don’t want to make weather adjustments where weather has no impact on a meter’s usage ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 27. Normalization Result #1 Monthly Use Graphic ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 28. Normalization Result #2 Annual Use Graphic ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 29. Normalization Result #3 Energy Use Intensity ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 30. Project Tracking Track Sustainability Projects ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 31. Project Appears on Chart Energy Use Intensity ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
- 32. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Live Demo
- 33. Questions Visit the Ace Place to learn more! ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com