National Impact SummaryNationalImpactSummaryNational Impact SummaryNationalImpactSummaryEquipment Class 3:•2 of 62 or 3 2% kVA Shipments2of62or3.2%kVAShipments• Net Present Value Peak @ EL2 or EL1• 0.10 of 7.10 or 1.4% (3% at EL1)• 0.12 of 7.63 or 1.6% (3% at EL2)Suggest Equipment Class 3 is left at base case, the benefits do not justify anIncrease in efficiency.By not changing Manufacturers will only have to focus on conversion of 97% of theMarket and Equipment Class 4National Impact SummaryNationalImpactSummaryEquipment Class 4:•60 of 62 or 96 8% kVA Shipments60of62or96.8%kVAShipments• Net Present Value Peak EL4 with a smaller Peak at EL2• 3% Differences 7.51 to 8.00 6.5% Increase for EL4• 7% Differences 1.88 to 1.85 1.6% Decrease for EL4Suggest Equipment Class 4 is set at the EL2 LevelComments on Summary DataCommentsonSummaryData•Computer ModelsComputerModels– Assumes manufacturers will be at lowest costat year of implementationatyearofimplementation.• Since product is purchased on First Cost no earlyadapters 5-10%• Must support building Base Efficiency Levelsthrough conversion dateL t C t d i bt i bl h–LowestCostdesigns are obtainable,howeverwill take 3 to 5 years after law is implementedto achieve sell price from analysistoachievesellpricefromanalysisLast Conversion on ManufacturingLastConversiononManufacturing•January 1, 2007 conversionJanuary1,2007conversion– 25-30% of the market already mandated so processalready existed – lessen impact during lastconversion– After conversion the price jumped as manufacturesfinalized what the long term designs would befinalizedwhatthelongtermdesignswouldbe• Capacity• Materials• Tolerances due to operations– Sell Price is just starting to be reduced to consumers2011/2012 (4 to 5 years after implementation)2011/2012(4to5yearsafterimplementation)Lessen Impact on ManufacturersLessenImpactonManufacturers•Equipment Class 3 will not receive anyEquipmentClass3willnotreceiveanyresources for conversion – will end up ashow Equipment Class 4 are implemented.p p– Lowest cost from computer model will only beachieved if it matches material and process ofE i t Cl 4EquipmentClass4R tM f t tb d•RequestManufacturers are notburdenwith converting 3% of the business for only1 5% of the total NPV1.5%ofthetotalNPV.Equipment Class 4EquipmentClass4•DL7–75kVA•DL8–300kVA• 15, 30, 45, 75, 112.5,150kVADL8300kVA• 225, 300, 500, 750,1000kVA• Issues with scaling atthe 15kVA• Issues with scaling atthe 750 and 1000kVA– Request changed to0.60 instead of 0.75– Request change to0.69 and 0.68Giving us the following TableGivingusthefollowingTablekVAEL0 EL1 EL2 EL3 EL4 EL5 EL6 EL715 97.00% 96.68% 97.13% 97.37% 97.74% 97.98% 98.30% 98.94%30 97.50% 97.78% 98.08% 98.24% 98.49% 98.66% 98.87% 99.30%45 97.70% 97.99% 98.26% 98.41% 98.64% 98.79% 98.98% 99.36%75 98.00% 98.23% 98.47% 98.60% 98.80% 98.93% 99.10% 99.44%112.5 98.20% 98.40% 98.61% 98.73% 98.91% 99.03% 99.19% 99.49%15098 30%98 51%98 71%98 82%98 99%99 10%99 24%99 53%........225 98.50% 98.71% 98.95% 99.08% 99.19% 99.27% 99.40% 99.55%300 98.60% 98.80% 99.02% 99.14% 99.25% 99.32% 99.44% 99.58%500 98.70% 98.94% 99.14% 99.24% 99.34% 99.40% 99.51% 99.63%75098.80%99.09%99.26%99.35%99.43%99.49%99.58%99.68%1000 98.90% 99.18% 99.33% 99.41% 99.49% 99.54% 99.62% 99.71%Suggest Levels to be EL2 with scaling atthe outer limits modified from the 0 75theouterlimitsmodifiedfromthe0.75.Manufacturing ImpactManufacturingImpact• EL2 compared to EL4(twopeaks)(p )– Out of pocket expenses will be 100% more to convertto EL4 than EL2 ($16.4 to $8.3 M)–Quads for from 1.09 to 1.24 only 14% increaseQuadsforfrom1.09to1.24only14%increase• Small Manufacturers– Butt Lap Designs can still be incorporatedM t i l dC P•MaterialandCoreProcess– M6 Butt Lap and Miter–M4 Miter– M3 Miter– Allows for other process and materials to be exploredby manufactures as they obtain lowest cost solutionsbymanufacturesastheyobtainlowestcostsolutions