Individual Household Energy Consumption  &  Cost For Financial Firms


Jackson Associates provides energy consumption and cost estimates for individual households for use in financial firm risk management.

This data product was developed in 2022 for financial institutions to assess mortgage financial risks associated with increased energy costs. Price increases in electricity and especially natural gas, propane and fuel oil, along with weather extremes, can put significant financial strain on some mortgage holders.

This data product applies information provided by a financial institution for each mortgagor to provide an estimate of energy costs and energy cost risks associated with increasing energy prices and weather variations. Data on mortgagor address, income, household members, number of dependents, and other data typically collected for mortgage underwriting (see Freddie Mac’s Form 65 for example) is combined with tax assessor information including floor space, age of dwelling unit and other items along with data provided by MAISY Residential ZIP code energy use databases and energy use models to provide the most accurate energy consumption and cost available for individual customers.

Energy sources include electricity, natural gas, propane and fuel oil; energy costs are based on local utilities associated with the ZIP code.

Energy cost risk scenarios are provided with historical distributions of weather data and energy cost forecast scenario models that provide forecasts of future electricity, natural gas, propane and fuel oil price recognizing the interdependency of fossil fuel price forecast and electricity price forecasts (e.g., natural gas price increases generate electricity price increases for the portion of a utility’s generation that is fired by natural gas).

Click here for more information on MAISY weather risk analysis.

The resulting database includes data items for each mortgagor record along summary characteristics across various customer segments. Data items include data inputs provided by the financial institution, tax assessor data and MAISY ZIP code data along with energy use and cost estimates for alternative risk scenarios that are selected in consultation with the financial institution.

For mortgagor records with incomplete data, a statistical process is used to impute the missing data based on similarity of mortgagor characteristics.

The following items are provided for each mortgagor record:
  • Address
  • Household information (income, demographics, etc.)
  • Dwelling unit information (floor space, construction year, etc)
  • Energy use and costs for alternative weather and energy price scenarios (specified in consultation with the client)
    • Weather assumptions
    • Energy price assumptions
    • Annual electricity use (kwh)
    • Annual natural gas use (kBtu)
    • Annual propane use (kBtu)
    • Annual fuel oil use (kBtu)
    • Annual electricity cost ($)
    • Annual natural gas cost ($)
    • Annual propane cost ($)
    • Annual fuel oil cost ($)
Jackson Associates can also include risk metrics developed in consultation with the client.