STEM help / Calculation framework

10.3.33.3 Exponential Growth

The Constant is replaced by a Base value, and an additional Multiplier parameter, representing an annual growth (or decay), commonly used to specify tariffs.

Base

The value of the time series in a certain year, usually year zero, as specified by the Base Period below.

Multiplier

An amount which multiplies the previous year’s value in each year. A value of 1.05 represents 5% annual growth, while a value of 0.95 represents a 5% decline. The Multiplier parameter must be positive, and no greater than 2.

Base Period

Specifies a particular period when the Base value should apply. This can be a year, a quarter, a month, or even a fully-qualified date.

The value in year n, Tn, is calculated as:

Tn = b · mn–c

where

b = Base input

m = Multiplier input

c = Base Period or zero.

 

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