CHAPTER 11. LIFE­CYCLE COST SUB­GROUP ANALYSIS

TABLE OF CONTENTS

11.1 INTRODUCTION................................................................................................................11­1

11.2 GENERAL APPROACH TO THE LIFE­CYCLE COST SUB­GROUP ANALYSIS.......11­1

11­iCHAPTER 11. LIFE­CYCLE COST SUB­GROUP ANALYSIS

11.1 INTRODUCTION

The life­cycle cost (LCC) subgroup analysis evaluates impacts of standards on

identifiable groups of customers, such as different population groups of consumers or different

business types, which may be disproportionately affected by any national energy conservation

standard level. In the NOPR phase of this rulemaking, DOE will analyze the LCCs and PBPs for

consumers that fall into such groups. The analysis will determine whether any particular group

of consumers would be adversely affected by any of the trial standard levels.

DOE plans to examine variations in energy prices and energy use that might affect the

NPV of a standard for customer sub­populations. DOE can perform additional analysis to

consider how differences in energy use will affect subgroups of customers. DOE will determine

the effect on customer subgroups using the LCC spreadsheet model. As described in Chapter 8,

the ANOPR LCC analysis includes various customer types that use the two categories of lamps.

This analysis includes consumers purchasing lamps in different sectors, purchasing lamps for

different building types, replacing different baseline lamps or lamp/ballast systems, and

undergoing different purchasing events.

11.2 GENERAL APPROACH TO THE LIFE­CYCLE COST SUB­GROUP ANALYSIS

For IRL, DOE can estimate LCC savings and payback periods for consumers in the

residential, commercial, and industrial sectors. For GSFL, DOE can perform an LCC analysis

for consumers in the commercial and industrial sectors. A subgroup analysis for consumers of

GSFL in the residential sector could also be preformed if DOE assumes GSFL residential lamps

have the same operating hour profile as IRL residential lamps. DOE requests comment on this

assumption.

DOE can also analyze the LCC impacts on consumers living in different buildings in the

commercial and residential sector. For example, DOE can analyze the impact of standards for

people running educational facilities and for those who live in a mobile home. DOE also has the

ability to analyze the impacts of consumers living in different regions of the country.

For GSFL and IRL, DOE has the ability to evaluate the LCC impacts on consumers who

purchase different baseline lamps or lamp/ballast systems. For example, the economic impacts

of a standard will be different for a consumer who owns a typical 4­foot T8 lamp/ballast system

than for a consumer who owns a typical 4­foot T12 lamp/ballast system. DOE can also evaluate

the economic impacts on consumers who purchase lamps with low, mid­range, or high prices.

Consumers who purchase less expensive lamps may experience greater life cycle cost savings

than those consumers who purchase expensive lamps.

For GSFL, DOE also has the ability to analyze the LCC impact of a standard on

consumers faced with a variety of different lamp purchasing events. The LCC impacts on a

11­1consumer who must replace a lamp for their existing system are very different than those impacts

on a consumer who must purchase a lamp because they are constructing a new building.

In the LCC subgroup analysis, DOE will examine a variety of consumer sub­populations.

This analysis will determine whether any particular group of consumers would be adversely

affected by any of the trial standard levels.

11­2