#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 seeks feedback on whether more efficient dishwasher designs

will affect cleaning performance, leading to increased hand-washing

or pre-washing and, if so, what increase in energy and water use

can be expected.

74

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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 year best

represents the use of dehumidifiers.

76

EE-2006-STD-0127 COMMENT 23.4
#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 -no pilot

•

40

20

r

0

1915 1960 1305 950

fear

1995 200"1 2000

77

EE-2006-STD-0127 COMMENT 23.4
#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

. McLe«U

1 Aetsr d1'COA

k

•

A 11

1986 19b8 1992 1994 1996

Year

2000 2002 28

0

78

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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 these per-cycle energy use

characteristics for residential clothes washers are also

representative of CCW energy use.

81

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4
#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

EE-2006-STD-0127 COMMENT 23.4