Economic Base Year
This sets the reference year for all the financial input data for the study. The base year governs the economic values which includes:
- Inflation and real escalation treatment
- Present value discounting and levelization calculations
- Real reporting treatment
- Real vs. Nominal inputs
Base Year should only be changed after all input data is adjusted to correspond to the updated year as the first year of data. This setting is how you tell Aurora what year your financial input values are calculated in. For example, if we wanted to change all of our values to 2018, simply changing the Base Year to 2018 would not change all dollars to 2018 dollars. If you wanted to change them to 2018, you would first need to adjust all of your input dollars to 2018 dollars, and then change the Base Year to 2018 so that Aurora knows the reference year. Refer to the Knowledge Base article Changing the Base Year for more information.
NOTE: A Base Year does not give any indication of when a database was last updated. It solely indicates the starting point, or relative year, for currency and demand inputs.
Economic Base Year