From: Bob Smith [mailto:bsmith@federalpacific.com]

Sent: Thursday, October 06, 2011 5:24 PM

To: 'Richard Parker'; Brian Coffey; John Caskey

Cc: 'Meyers, Aaron'; thomas.patzner@schneider -electric.com; adelaski@standardsasap.org;

ahofmann@publicpower.org; 'Trujillo, Antonio'; Berm anEconomics@gmail.com; bruce.r.hirsch@bge.com;

cabolduc@lbl.gov; Caitlin Johnson; carlosgsiqueiros@eaton.com; carlos.gaytan@ge.com;

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dave.millure@metglas.com; eduardorobles@eaton. com; Eric.Petersen@aksteel.com; gbf1@pge.com;

gjrosenquist@lbl.gov; greg.coulter405@gmail.com; ' Moore, Jack C'; 'Schneider, Jeffrey A'; 'Smith,

Jennifer'; 'Robert Greeson'; 'Corkran, Jerry L' ; jerry.schoen@aksteel.com; 'Jerry Hodge';

Jim.creevy@nema.org; jmauer@standardsasap.org; john.caskey@nema.org;

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mark.stoering@xcelenergy.com; mhyland@appanet. org; 'Loomans, Michael T'; Michael Rivest;

mwaltner@nrdc.org; Paul.Ryan@hitmet.com; 'Phil Hopkinson'; pkumar@publicpower.org;

Raymond.Polinski@atimetals.com; 'Poole, Raymond L' ; rgreeson@federalpacific.com; 'Marusinec, Richard

M'; rick.anderson@faypwc.com; robert.saint@nre ca.coop; rroy@nrdc.org; ScottB@lvmetals.com;

snadel@aceee.org; srosenstock@eei.org; tballo@earthjustice.org; Teckman@nwcouncil.org;

thomas.patzner@schneider-electric. com; wes.patterson@us.abb.com

Subject: RE: Distribution Transformers Committee

Dear Richard, Brian, John, and Good Afternoon to All:

Rob Greeson has informed me that we are making good progress with reconciliation of the MV Dry

designs among all parties. Feeling that shortly we’ll have most of the data discrepancies behind us, I am

attaching a short article that I hope will help us move toward a posit i on that can be supported by all

interests.

In my article I have tried to show how the tremendous complexity associated with the “A” and “B”

factors should be considered, as we propose higher transformer efficiencies. I have tried to emphasize

that the TOC approach to the ICI custo m er is segment is not appropriate; and that we should be careful

when proposing higher transformer efficiencies, so that we do not cause ICI customers to use evaluation

principles with which they are not familiar or can easily develop.

As all of you have experienced, even some of the util ity customers, using TOC for transformer

evaluations, will opt to buy a “lower first cost” transformer for sound economic reasons.

I have been very impressed with many of the efforts to bring us together in our thought processes; but I

feel we still have a long way to go for th e right answer beyond our present very efficient transformer

products that we all offer. Every company in our industry can provide and does provide transformers on

a selected basis that far exceed the present MEPS.

I hope as we look at the efficiencies that go beyond our present MEPS, we can go in that dire ction with a

balanced approach tha t is solid economically and beneficial environmentally.

Bob Smith, PE

Product Manager

Federal Pacific

601 Old Airport Road

Bristol, VA 24201TEL: (276) 645-8836

FAX: (276) 645-8212

CELL: (276) 591-6143

Email: bsmith@federalpacific.com

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