Long Term Probabilistic Load Forecasting and Normalization With Hourly Information

The classical approach to long term load forecasting is often limited to the use of load and weather information occurring with monthly or annual frequency. This low resolution, infrequent data can sometimes lead to inaccurate forecasts. Load forecasters often have a hard time explaining the errors based on the limited information available through the low resolution data. The increasing usage of smart grid and advanced metering infrastructure (AMI) technologies provides the utility load forecasters with high resolution, layered information to improve the load forecasting process. In this paper, we propose a modern approach that takes advantage of hourly information to create more accurate and defensible forecasts. The proposed approach has been deployed across many U.S. utilities, including a recent implementation at North Carolina Electric Membership Corporation (NCEMC), which is used as the case study in this paper. Three key elements of long term load forecasting are being modernized: predictive modeling, scenario analysis, and weather normalization. We first show the superior accuracy of the predictive models attained from hourly data, over the classical methods of forecasting using monthly or annual peak data. We then develop probabilistic forecasts through cross scenario analysis. Finally, we illustrate the concept of load normalization and normalize the load using the proposed hourly models.