Financial rebate program for utilities based on degree days
First Claim
1. A computer-readable memory device having a computer program stored thereon for directing the operation of a computer, said program comprising:
- receiving means for receiving information representative of a location and a time-of-year interval and representative of historical weather data concerning a measurable, weather-related parameter regarding said location and time-of-year interval;
calculating means for calculating a financial rebate as a function of said historical weather data, a specified premium and a deviation in said weather-related parameter from a specified strike during said interval at said location; and
output means for producing an output representative of said rebate.
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Accused Products
Abstract
A financial rebate program provides a rebate to purchasers or sellers of energy such as electrical power and natural gas for a deviation from expected weather conditions. In one example, the buyer of a block of electrical power for a given winter month pays a premium as a percent of the value of the transaction. If the weather is warmer than normal, the heating degree days would be less and the demand for electrical power would also be less because of reduced electrical heating load. As a result, the buyer might have to sell the excess power at a discount. The buyer would receive a rebate based on the number of degree days below a given strike, such as ninety-five percent of normal, helping to offset the discount thereby minimizing a component of financial risk of the transaction.
61 Citations
29 Claims
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1. A computer-readable memory device having a computer program stored thereon for directing the operation of a computer, said program comprising:
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receiving means for receiving information representative of a location and a time-of-year interval and representative of historical weather data concerning a measurable, weather-related parameter regarding said location and time-of-year interval; calculating means for calculating a financial rebate as a function of said historical weather data, a specified premium and a deviation in said weather-related parameter from a specified strike during said interval at said location; and output means for producing an output representative of said rebate. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A computer having a weather guarantee computer program stored thereon for directing the operation of a computer, said computer comprising:
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receiving means for receiving information representative of a location and a time-of-year interval and representative of historical weather data concerning a measurable, weather-related parameter regarding said location and time-of-year interval; calculating means for calculating a financial rebate as a function of said historical weather data, a specified premium and a deviation in said weather-related parameter from a specified strike during said interval at said location; and output means for producing an output representative of said rebate. - View Dependent Claims (16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28)
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29. A method of providing a financial weather guarantee comprising the steps of:
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(a) receiving into a computer information representative of a location and a time-of-year interval, and representative of historical weather data and forecast weather data concerning a measurable, weather-related parameter regarding said location and time-of-year interval, said interval including a plurality of days; (b) calculating in said computer according to a program stored in a computer readable memory device coupled therewith a financial rebate as a function of said historical weather data, said forecast weather data, a specified premium and a deviation in said weather-related parameter from a specified strike during said interval at said location, said premium and rebate being expressed as percentages; step (b) including the step of sampling said historical weather data in accordance with said forecast weather data so that said premium includes a probable margin; (c) applying in said computer said premium and rebate to the value of a transaction; and (d) producing an output representative of said rebate as said weather guarantee.
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Specification