Modeling residential demand for natural gas as a function of the coldness of the month

Abstract A simple two-parameter model of the monthly demand for natural gas for space heating is developed. First, a simple indicator of the coldness of the month labeled “modified degree days” is presented. Both aggregate monthly demand and monthly demand for a single unit are modeled as a function of this indicator. The model has two parameters, a reference temperature which reflects the internal temperature and free heat contribution and a slope parameter which reflects the thermal behavior of the dwelling. Variation in these two parameters is related to characteristics of the dwelling. Finally, the effect of the onset of the energy crisis on the two parameters is assessed.