November 26, 2020

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Core Natural Gas Demand Drivers

Core Demand (residential and commercial sectors), where natural gas is used mainly for winter heating loads. As illustrated in the chart, core demand correlates well to Heating Degree Days (HDD) with yearly swings resulting. A heating degree day (HDD) is a measurement designed to quantify the demand for energy needed to heat a building. It is the number of degrees that a day’s average temperature is below 18 degree Celsius, which is the temperature below which buildings need to be heated.

Customer counts drive underlying Core demand growth which tend to be partially offset by efficiency factors on a normalized basis (Mcf/Customer/HDD)

Efficiency factors include new building standards, opportunities to use modified technology applications such as adjustable smart digital thermometers, and conservation measures in existing housing stock (insulation, new windows).