# #23.4

Dishwasher Efficiency and its Impact on Cleaning Performance (Issue #7) n DOE was not able to identify sources of data showing whether the amount of pre-washing is impacted by dishwasher efficiency. n DOE believes that, to date, hand-washing or pre-washing habits have not been affected by product efficiency. Because increased dishwasher energy efficiency may require future designs to utilize less water, DOE recognizes the possibility that more efficient dishwashers may degrade wash performance. DOE seeksfeedback on whether more efficient dishwasher designs will affect cleaning performance, leading to increased hand-washing or pre-washing and, ifso, what increase in energy and water use can be expected.
74

# #23.4
Dehumidifiers: Annual Energy Use n Annual energy use = ( Capacity _ EF) x Hours x (0.473 _ 24) n Several estimates for operational hours of use
Annual Energy Use (kWh/year) AHAM Product Class Average Size EF L M Energy LBNL - pints/day pints/day liters/day liters/kWh ow (875 hrs) id

(1095 hrs) High

(1315 hrs) ADL

(1620 hrs) Star

(2851 hrs) High

(4320 hrs) < 25.00 20.0 9.5 1.0 345 432 519 639 1124 17C:; 25.01-35.00 30.0 14.2 1.2 431 540 648 798 1405 212,-% 35.01-45.00 40.0 18.9 1.3 531 664 798 983 1730 262 45.01-54.00 50.0 23.7 1.3 664 830 997 1228 2162 3276 54.01-74.99 64.5 30.5 1.5 742 928 1115 1373 2417 3662 > 75.00 85.0 40.2 2.25 652 816 979 1207 2123 3218



### 75

# #23.4

Dehumidifier Use (Issue #8)

n DOE gave more weight to data that AHAM provided because they were developed based on the experience of manufacturers n AHAM 's average estimate of 1,095 operating hours per year chosen as the most representative of actual use
DOE requests feedback on whether 1,095 hours per yearbest represents the use ofdehumidifiers.

76

# #23.4
Conventional Cooking Products : Historical Annual Energy Use n Conventional cooking product annual energy consumption has been in decline since 1970s n Latest data from 2004 California Residential Appliance Saturation Survey and the Florida Solar Energy Center used to estimate annual energy use • Variability in the annual energy based on data from the 2001 RECS Electric Ranges 2200 2000 1800 1504 1400 CO 1200 1000 V UU 600 400 200 a a =

- • Met_red

q CDA

q 9 13

1975 1980 1935 1990 1996 2000 2005 Year 

## Gas Ranges

n n CDA-01 t a CGA-no pilot . CC A-01A unknown n * Meterec-pilaf o[Metew- il t

no p o
•
40 20 r 01915 1960 1305 950 fear 1995 200" 1 2000



### 77

# #23.4

Microwave Ovens: Historical Annual Energy Use n Annual energy consumption has held `relatively' steady since the late 1980's n Latest data from 2004 California Residential Appliance Saturation Survey used to estimate annual energy use • Variability in the annual energy based on data from the 2001 RECS

300 

## El oCDA M L U
. 

### c e« 1 Aetsr d1'COA
k

A 11

•

1986 19b8 1992 1994 1996 Year 2000 2002 28 0



### 78

# #23.4

Me" 

# Cooktop, Oven , and Microwave Oven: Annual Energy Use n DOE relied on latest energy use estimates to establish baseline annual energy consumption n Electric Cooktops (0.737 EF) • Cooking = 128 kWh/year n Electric Standard Ovens (0.107 EF) • Cooking = 132 kWh/year • Clock = 34.2 kWh/year 

## n Electric Self-Clean Ovens (0.096 EF) • Cooking = 117 kWh/year • Clock = 33 kWh/year • Self-Clean = 21 kWh/year 

## n Microwave Ovens (0.557 EF) • Cooking = 131 kWh/year n Gas Cooktops (0.156 EF) • Cooking = 0.7 MMBtu/year • Standing Pilots = 2.0 MMBtu/year n Gas Standard Ovens (0.030 EF) • Cooking = 0.8 MMBtu/year • Standing Pilot = 1.0 MMBtu/year • Units with Hot Surface Ignition = 21 kWh/year 

## n Gas Self-Clean Ovens (0.054 EF) • Cooking = 0.7 MMBtu/year • Self-Clean = 0.2 MMBtu/year; 0.7 kWh/year • Hot Surface Ignition = 21 kWh/year • Clock = 32 kWh/year

79

# #23.4

Commercial Clothes Washers: Annual Energy and Water Use n Annual Energy & Water Use = Per-Cycle Use x Cycles per year n Per-cycle energy use components • Water-heating • Drying • Machine n Drying energy use (RMC) and machine energy use are a function of MEF • Based on residential clothes washer data 

## n Number of cycles per day • Multi-Family: Average = 3
.4; Range = 1 to 10.9 • Laundromats : Average = 6; Range = 3 to 8 

## n Annual energy and water use of baseline clothes washer (1.26 MEF, 9.50 WF) • Multi-Family - Energy use = 2769 kWh/year(1020 kWh WH; 1583 kWh drying; 166 kWh machine) - Water use = 33 1000-gallons/year 

## • Laundromats - Energy use = 4866 kWh/year(1793 kWh WH; 2782 kWh drying; 291 kWh machine) - Water use = 58 1000-gallons/year 80

# #23.4

Commercial Clothes Washer Per-Cycle Energy

Consumption (Issue #9) n DOE determined the per-cycle clothes drying energy use and the per-cycle machine energy use for CCWs from data in its 2000 TSD for residential clothes washers.

DOE requests feedback on whether theseper-cycle energy use characteristics for residential clothes washers are also representative of CCW energy use.

81

# #23.4

Purpose, Inputs , and Output n Purpose ' To determine consumer prices under a standards scenario based on manufacturer costs • Characterize equipment distribution channels and market segments • Describe retailer and distributor company direct costs, expenses, and profits 

# n Inputs • Manufacturer Markups: Security Exchange Commission 10-K Reports • Retailer and Distributor Markups: Firm balance sheets - Retailers: U.S. Census Bureau Financial Data for Household Appliance Stores - Distributors: U.S. Census Bureau Financial Data for Merchant Wholesalers, Machinery, Equipment, and Supplies 

# n Output • Baseline and incremental markups

82

# #23.4

Distribution Channels n Residential Products (Dishwashers , Dehumidifiers, and Cooking Products) Manufacturer Retailer Consumer 

## ' Based on AHAM Fact Book; Over 93 percent of sales through retail outlets • Markups estimated assuming all products purchased from retail outlets 

## n Commercial Clothes Washers
Manufacturer Distributor Route Operator Laundromat Multi-Family Housing 

## • Based on data from CEE, overwhelming majority of products sold through distributors or route operators - Laundromats generally purchase product through distributors - Multi-family housing and large institutions generally lease equipment through route operators 

## • Based markup calculations only on the distribution channel involving distributors - Assumed resulting equipment prices would be representative of prices paid by consumers acquiring equipment from route operators 

### 83

# #23.4

Commercial Clothes Washer Consumer Prices

(Issue #10) n For purposes of developing the markups and consumer equipment prices, DOE based its calculations solely on a distribution channel that involves distributors. n DOE believed that the markups and the resulting consumer equipment prices determined for this distribution channel also would be representative of the prices paid by consumers acquiring their equipment from route operators. DOE requests feedback on its views regarding its development of consumer prices for CCWs.

84

# #23.4
Markupps 

# Baseline and Incremental Markups n Markups relate customer price to cost of goods sold (CGS) n Baseline markups relate price to cost prior to a change in efficiency • Baseline markups indicate a customer price that covers all of a retailer's or distributor's expenses plus profit • Direct labor costs (salaries, payroll, rental and occupancy) are included 

# n Incremental markups relate the incremental change in customer price to the incremental change in CGS • Some costs remain constant with CGS increases • Incremental markups cover only expenses that vary with CGS - in this case, expenses that increase due to an increase in equipment efficiency - For example, direct labor costs (salaries, payroll, rental and occupancy) do not vary with efficiency-induced changes in CGS 

## • DOE assumes other operating costs and profit will scale proportionally with CGS

85

# #23.4
Resulting Markups

Dishwashers Dehumidifiers Cooking Products Commercial Clothes Washers Markup Baseline Incr. Baseline Incr. Baseline Incr. Baseline Inc r. Manufacturer 1.26 1.26 1.26 1.26 Retailer 1.45 1.15 1.45 1.15 1.45 1.15 - - Distributor - - - - - - 1.43 1.18 Sales Tax 1.0683 1.0653 1.069* 1.0684 Overall 1.95 1.55 1.95 1.54 1.95 1.55 1.93 1.59 * Represents average of all seven product classes of cooking products.



### 86

# #23.4

Purpose of the Life-Cycle Cost and Payback Period Analyses n Purpose • To develop the customer life-cycle cost (LCC) savings and payback period (PBP) for higher efficiency equipment compared to the baseline equipment.

87

# #23.4

n Method • LCC equals consumer price plus the sum of operating costs discounted to a particular base year • Economic evaluation from the consumer perspective • Analysis implemented in an Excel® spreadsheet combined with Crystal Ball® • Analysis models the uncertainty and variability of inputs using Monte Carlo simulation and probability distributions - For the residential products, household samples created from 2001 Residential Energy Consumption Survey to characterize the variability in energy use and/or energy price 

## • Results are expressed as LCC savings (baseline minus candidate standard level) • Simple Payback Period (PBP, years) is also calculated and reported in this analysis 

## First Cost (Consumer Price + Installation Cost) 

# Operating Expenses Convert to Present Value 

# Combine Changes in Costs 

# 1 LCC Results 

# 88

# LCC Calculation Flowchart From Engineering Analysis (Cost is a Function of Efficiency)

From Markups to Determine Equipment Price

From Energy Use and Water Use Characterization (Energy & Water Use are a Function of Efficiency) Baseline Manufacturer Cost Std-Level Manufacturer Cost

Manufacturer Markup Retailer or Distributor Markup
Sales Tax

Energy (and Water) Consumption Energy (and Water) Prices Consumer Price

Installation Cost Total Installed Cost

Payback

Period

T1 Annual Energ

(and Water) Cost Annual Operating Expense Lifetime Operating Expense Repair Cost Lifetime
Discount Rate Maintenance Cost Energy (and Water) Price Trend 

# #23.4

Life-Cycle Cost C\



### 89

# #23.4

Total Installed Costs n Total Installed Costs = Retail Price + Installation Cost n Equipment Retail Price = Manufacturing Costs x Markups • Manufacturing cost vs. efficiency relationships developed in the Engineering Analysis • Markups and Sales Taxes developed in the Markups to Determine Equipment Price analysis 

# n Installation costs represent the labor and materials necessary to install the appliance • Installation costs developed from RS Means cost data - No installation costs for dehumidifiers and microwave ovens • Installation costs do not vary with efficiency - Exception-gas cooktops and standards ovens: Added cost due to adding an electrical outlet

90

# Total Installed Costs Example: Dishwashers, Standard-Sized $1,000 $950 $900 $850 $800 $750 i

$700 ? • 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 Energy Factor 

## n Installation Cost • Average installation cost for a four-or-more-cycle dishwasher = $253 • Does not vary with EF 

# #23.4

91

# #23.4
Energy and Water Prices n Electricity Prices ' Based on EIA Form 861 Data 

# ' Developed for 13 Regions: 9 Census Divisions and 4 Large States n Natural Gas Prices • Based on data from EIA's Natural Gas Monthly 

# • Developed for 13 Regions: 9 Census Divisions and 4 Large States n Oil • Based on data from EIA's Petroleum Navigator • Developed for only 10 Regions due to data limitations • Needed for Dishwashers only because some households use oil water heaters 

# n Water • Based on data from Raftelis Consultants and AWWA • Developed for 4 Census Regions due to data limitations 92

# #23.4 Energy and Water Prices Geographic Area Resid Electricity 2006$/kWh Comm Electricity

2006$/kWh Resid Gas

2006$/MMBtu Comm Gas

2006$/MMBtu Resid Oil

2006$/MMBtu New England $0.124 $0.100 $16.48 $13.65 $12.13 Middle Atlantic (excludes NY) $0.109 $0.088 $14.72 $13.07 $12.27 East North Central $0.089 $0.074 $13.06 $11.25 $12.20 West North Central $0.084 $0.071 $13.63 $11.25 $11.61 South Atlantic (excludes FL) $0.087 $0.073 $17.43 $13.17 $12.07 East South Central $0.077 $0.076 $15.37 $12.41 $12.08 West South Central (excludes TX) $0.085 $0.076 $14.74 $11.40 $12.08 Mountain $0.090 $0.079 $12.46 $9.55 $12.09 Pacific (excludes CA) $0.088 $0.085 $14.30 $11.73 $12.82 New York $0.163 $0.102 $16.49 $13.30 $12.62 Florida $0.098 $0.083 $22.05 $13.60 $12.07 Texas $0.105 $0.099 $14.81 $10.77 $12.08 California $0.111 $0.101 $12.12 $10.69 $12.82 Weighted-Average Prices Dishwashers $0.099 $14.98 $12.22 Dehumidifiers $0.099 Cooking Products $0.095-$.105 $14.38 - $14.43 Commercial CW $0.084 

# -A M $11.89 Dishwashers Commercial Clothes Washers Region Residential Water 2006$/tg Residential Wastewater 2006$/tg Commercial Water 2006$/tg Commercial Wastewater 2006$/tg Northeast $3.16 $2.84 $2.73 $2.61 Midwest $1.77 $1.65 $1.55 $1.33 South $2.19 $2.16 $2.37 $2.39 West $2.08 $1.83 $2.24 $2.01 National $2.23 $2.09 $2.22 $2.11