With energy shortages in California and skyrocketing costs of natural gas nationwide, the United States finds itself in the midst of its worst energy crisis in more than two decades. Today, national energy policy takes on particular importance in the context of the possibly changing state of the economy. While most people recognize that both energy and weather affect every resident of the United States, few realize the critical role that the use of weather and climate information plays in the energy industry.

This briefing will address the production and use of weather and climate information in the public and private sectors, an integral, if little-known, aspect of national energy policy. It will focus on the importance of weather and climate data, research results and computer models and their significant role in the management of energy. For instance, the use of weather information allows utility companies to estimate supply and demand and manage their operations accordingly – as in the operation of reservoirs that provide hydropower to customers. Finally, it will explore “weather derivatives,” a fairly new financial service focused on hedging against weather fluctuations. In the past several years, this market, according to some estimates, now totals $7 billion annually.

Sponsors

• Senate Committee on Energy and Natural Resources
• American Meteorological Society (AMS)
• University Corporation for Atmospheric Research (UCAR)

Subtopics

Impacts of Weather Variations on a Western State Utility
(Woodrow Whitlatch )

Quantitative Precipitation Forecasting
(William Neff )

Weather Risk Management
(Bradley Hoggatt )

Weather and Climate Forecasts in Daily Energy Sector Operations
(Nick Keener )

Summary (David Rogers)