Working on an audit for a facility with extreme seasonal variation - HVAC dominates summer usage. How do you handle seasonal adjustments when calculating potential savings? Client wants projections but I'm struggling with the methodology.
Seasonal adjustment methodology
All excellent points. Kurt raises an important issue - always verify seasonal tariff differences. Also consider weather normalization for facilities heavily dependent on heating/cooling. Degree day adjustments can improve accuracy significantly.
Lorraine's approach is solid. I also like to break out base load vs seasonal load separately. Base load savings are consistent year-round, seasonal savings only apply during peak months. Gives clients a clearer picture of when to expect benefits.
Hannah - I typically use 3 years of historical data if available and calculate seasonal averages for each month. Then project savings as percentages rather than fixed dollar amounts. More accurate than annual averages for seasonal businesses.
For demand charges with seasonal variations, don't forget that some utilities have different demand billing methodologies in summer vs winter. Georgia Power's summer demand billing can be significantly different than winter calculations.