8A

- i APPENDIX 8A. USER INSTRUCTION S FOR L IFE

- CYCLE COST ANALYSIS
SPREADSHEET

TABLE OF CO NTENTS

8A.1 INTRODUCTION

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- 1
8A.2 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET

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8A.3 BASIC INSTRUC TIONS

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- 28A

- 1 APPENDIX 8A. USER INSTRUCTION S FOR L IFE

- CYCLE COST ANALYSIS

SPREADSHEET

8A.1 INTRODUCTION

It is possible to examine and reproduce the detailed results of the life

- cycle cost ( LCC ) and payback period ( PBP ) analys i s using a Mic rosoft Excel spreadsheet available on the U.S. Department of Energy’s (DOE’s) rulemaking website for refrigerated beverage vending
machines (BVMs)

. 1 To fully execute the spreadsheet s requires both Microsoft Excel and Crysta l
Ball 2 software. Both applicati ons are comme rcially available. The spreadsheet post ed on the DOE website represent s the latest version and has b een tested with Microsoft Excel 2010

.

8A.2 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET

For all of the equipment classes, DOE created a single LCC wor kbook file containing a collection of worksheets. Each worksheet represents a conceptual component within the LCC calculation. To facilitate navigability and identify how worksheets are related, each worksheet contains an area on the extreme left showing v ariables imported to and exported from the current
worksheet. The LCC workbook contains the following worksheets:

Summary The Summary worksheet contains a user interface to man ipulate energy price trends, start year , and number of trials in the Crystal Ba ll simulation. It also
includes a button to run the Crystal Ball simulation. LCC and PBP simulation
results for each efficiency level are displayed on this sheet

. LCC & Payback The LCC & Payback worksheet shows LCC calculation results for different
effic iency levels for a single sampled customer

. During a Crystal Ball simulation, the spreadsheet records the LCC and PBP values for every sampled customer

. Sample The Sample worksheet contains the customer data for each equipment class. During a Crystal Bal l simulation, DOE uses these customer characteristics to determine the analysis parameters.

Cost Efficiency
Data The Cost Eff iciency Data worksheet provides estimated retail prices as a function of efficiency levels

, and this set of data is used as inputs in to the
LCC calculations in the LCC & Payback worksheet.

Energy Use The Energy Use worksheet calculates annual energy use for each equipment class. The annual energy use calculations for each design option are inputs to
the LCC & Payback worksheet to c alculate the annual operating cost of the
LCC.

Base Case
Distribution The BaseCase Distribution worksheet includes the equipment efficiency
distribution for the effective year of the standard

.8A

- 2 Electricity
Prices The Electricity Prices worksheet shows the estimated electricity price for each

state

. Electricity
Prices Ratios
CBECS This is an adjustment for electricity prices based on the type of business t hat BVM equipment is located in. DOE used the 2003 Commercial Building Energy Consumption Survey (CBEC S) data 3 set to identify the average prices paid by the four kinds of commercial businesses in this analysis compared with the average prices paid by all commercial customers (manufacturing and federal facilities are assumed to pay the average
industrial price). The ratio of prices paid by the f our types of commercial buildings v ersus the national average rate was used to increase or decrease the average electricity prices paid by business type.

Electricity Price
Trend The Electricity Price Trend workshe et shows the future price trend for electricity. DOE used energy price data and forecasts from the Energy Information Administration’s (EIA's ) Annual Energy Outlook 2013 4 for the period until 20 40 and extrapolated beyond 2040.

Discount Rate The Discount R ate worksheet contains the distributions of discount rates.

Lifetime The Lifetime worksheet contains the distribution of lifetimes.

LCC Box Plots The LCC Box Plots worksheet can display box plots of the LCC savings for all efficiency levels and equipment classes. Box plots for a single equipment
class are visible at any given time. The user can select the equipment class to show on the sheet.

PBP Box Plots The PBP Box Plots worksheet can display box plots of the PBP for all efficiency levels and equip ment classes. Box plots for a single equipment class are visible at any given time. The user can select the equipment class to
show on the sheet.

8A.3 BASIC INSTRUCTIONS

Basic instructions for operating the LCC spreadsheet are as follows:

1. Once the LC C spreadsheet has been downloaded, open the file using Excel. Click
“Enable Content ” when prompted and then click on the tab for the Summary worksheet.

2. Use Excel's View/Zoom commands at the top menu bar to change the size of the display to fit your mon itor.

3. The user can change the parameters listed under "User Input: " on the Summary worksheet. There are three drop

- down boxes. The default parameters are:8A

- 3 a. Energy Price Trend: Defaults to “AEO 201 4 Reference Case.” To change the input, use the drop

- down menu and select the desired trend (Reference, Low, or High).

b. Start Year: Defaults to “ 201 9 .” To change the value, use the drop

- down menu and select the desired year.

c. # of Trials: Defaults to “10 ,000.” To change the value, use the drop

- down menu
and sele ct the desired number of trials ( 100, 1,000, 2,000, 5,000, 10,000 , or 25 ,000 ).

d. Subgroup: Defaults to “Full Sample.” To change the value, use the drop

- down menu and select the desired customer subgroup. Customer subgroups will be
included at the notice of proposed rulemaking ( NOPR ) stage.

4. To run the Cryst al Ball simulation, click the “R un” button (you must re

- run after changing any parameters). The spreadsheet will then be minimized. You can monitor the progress of the simulation by watching the count of iterations at the left bottom corner. When the simulation is finished, the worksheet named Summary will reappear with the
results. The results for all equipment class es will reflect the results of the new
simulation

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- 4 REFERENCES

1 http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/73

. Accessed April 24, 2014 . This material is available in Docket # EERE

- 2013

- BT

- STD

- 0022 at regulati ons.gov.

2 Crystal Ball is available at http://www.oracle.com/us/products/applications/crystalball/overview/index.html

. Accessed May
9 , 201 4 . This material is available in Docket # EERE

- 2013

- BT

- STD

- 0022 at regulations.gov

.

3 U.S. Department of Energy

– Energy Information Administration. 2003. Commercial Building Energy Consumption Survey (CBECS), Public Use Data, Micro

- data files. (Last accessed August 12

, 2014 ) < http://www.eia.gov/consumption/commercial/data/2003/ >

4 Energy Information Administration, Annual Energy Outlook 2014 with Projections to 2040

, 2014 . Washington, DC.