11

- i CHAPTER 11

. CONSUMER SUBGROUP ANALYSIS

TABLE OF CONTENTS

11.1 INTRODUCTION

................................ ................................ ................................ ...... 11

- 1 11.2 SUBGROUPS DEFINITION

................................ ................................ ...................... 11

- 1 11.2.1 Senior

- Only Households

................................ ................................ ............................. 11

- 1 11.2.2 Low

- Income Households

................................ ................................ ............................ 11

- 1 11.3 INPUTS TO CONSUMER S UBGROUP ANALYSIS

................................ ................ 11

- 2 11.4 RESULTS

................................ ................................ ................................ .................. 11

- 3 11.4.1 Senior

- Only Households

................................ ................................ ............................. 11

- 4 11.4.2 Low

- Income Households

................................ ................................ ............................ 11

- 5

LIST OF TABLES

Table 11.2.1 RECS 2005 Definitions of Low

- Income Households by Yearly Income

.......... 11

- 2 Table 11.3.1 Household Population

................................ ................................ ..................... 11

- 2 Table 11.3.2 Weighted

- Average Annual Electricity Use for Standard

- Sized Dishwashers

................................ ................................ ................................ .... 11

- 3 Table 11.3.3 Weighted

- Average Annual Electricity Use for Compact Dishwashers

............. 11

- 3 Table 11.4.1 Standard

- Sized Dishwashers: LCC and PBP Results for Senior

- Only Households

................................ ................................ ................................ ..... 11

- 4 Table 11.4.2 Compact Dishwashers: LCC and PBP Results for Senior

- Only Households

.... 11

- 4 Table 11.4.3 Standard

- Sized Dishwashers: LCC and PBP Results for Low

- Income Households

................................ ................................ ................................ ..... 11

- 5 Table 11.4.4 Compact Dishwashers: LCC and PBP Results for Low

- Income Households

................................ ................................ ................................ ..... 11

- 511

- 1 CHAPTER 11. CONSUMER SUBGROUP ANALYSIS

11.1 INTRODUCTION
Chapter 8 describes the life

- cycle c ost (LCC) and payback p eriod (PBP) analyses that examine impacts of energy conservation standards on the U.S. population. In ana lyzing the potential impact of new or amended standards on residential consumers, DOE further evaluates the impact on identifiable groups of consumers (i.e., subgroups) that may be disproportionately affected by a national standard level. The consumer subg roup analysis evaluates impacts by analyzing the LCC and PBPs for subgroups of residential consumers.

For both standard and compact dishwashers , DOE identified two consumer subgroups that warranted further study: (a) households composed of people 65 years of age or older (senior

- only) ; and (b) households at or below the poverty line (low

- income)

. DOE determined the impact on consumer subgroups for standard and compact dishwashers using the LCC spreadsheet model , which allows for the examination of particul ar consumer subgroups. DOE has the ability to use the LCC spreadsheet Model to analyze the LCC for any subgroup by sampling only the data that apply to that subgroup ( Chapter 8 explains in detail the inputs to the model u sed in determining LCC and PBPs)

. A s described in section 11.3

, the energy use and energy price characteristics of the two subgroups (senior

- only and low

income) differ from those for the general population.

This chapter describes the subgroup identification in further detail and gives the results of the LCC and PBP analyses for the considered subgroup s

.

11.2 SUB G ROUPS DEFINITION

11.2.1 Senior

- Only Households

Senior

- only households have occupants who are all at least 65 years of age. Based on the DOE Energy Information Administration (EIA)’s Residential Energy Consumption Survey of 200 5 (RECS), senior

- only households comprise 17 percent of the country’s households

. 1

11.2.2 Low

- Income Households

As defined in the RECS survey, low

- income households are considered to be those at or below the “poverty line.” The “poverty line” varies with household size, head of household age, and family income. Table 11.2.1 summarizes the income level baselines for selecting low

income households from the RECS sample. The RECS survey classifies 15 percent of the country’s households as low

- income.11

- 2 Table 11.2.1 RECS 200 5 Definitions of Low

- Income Households by Yearly In come Average Income $ Household Size 48 Contiguous States and D.C. Alaska Hawaii

1 9

, 570 11

, 950 11

, 010 2 12

, 830 16

, 030 14

, 760 3 16

, 090 20

, 100 18

, 510 4 19

, 350 24

, 190 22

, 260 5 22

, 610 28

, 270 26

, 010 6 25

, 870 32

, 350 29

, 760 7 29

, 130 36

, 430 33

, 510 8 32

, 390 40

, 510 37

, 260 9 35

, 650 44

, 590 41

, 010 10 38

, 910 48

, 670 44

, 760 11 42

, 170 52

, 750 48

, 510 12 45

, 430 56

, 830 52

, 260 13 48

, 690 60

, 910 56

, 010 14 51

, 950 64

, 990 59

, 760 15 55

, 210 69

, 070 63

, 510

11.3 INPUTS TO CONSUMER SUB G ROUP ANALYSIS

DOE performed the consumer subgroup analysis by analyzing the LCC and PBP of senior

- only and low

- income households with the spreadsheet models used for the LCC and PBP analysis.

Table 11.3.1 summarize s the household population s , while Table 11.3.2 and Table 11.3.3 summarize the weighted

- average annual energy use for the households analyzed in the cons umer subgroup analyses

. These values are compared against the weighted

- average values for the national sample

.

Table 11.3.1 Household Population

National Count Sum 2,480 64,729,484 Senior

- Only 194 4,156,036 Senior

- Only % 7.8 6.4 Low

- Income 350 9,723,536 Low

- Income % 14.1 15.011

- 3 Table 11.3.2 Weighted

- Average Annual E lectricity Use for Standard

- Sized Dishwashers

All Households Senior

Only Low

Income Efficiency Level

Baseline kWh/year

211 169 202 EL1 195 161 190 EL2 196 160 185 EL3 201 164 185 EL4 150 123 142 EL5 145 118 127

Table 11.3.3 Weighted

- Average Annual E lectricity Use for Compact Dishwashers All Households Senior

Only Low

Income Efficiency Level

Baseline kWh/year

160 128 151 EL1 144 120 137 EL2 107 89 100

11.4 RESULTS

Table 11.4.1 through Table 11.4.4 summarize the subgroup results for standard and compact dishwashers . The LCC results provide the average installed price ; average lifetime operating cost (discounted) ; average life

- cycle cost ; average life

- cycle cost savings ; the percentage of consumers that are burdened with net costs, realize net savings, or are no t imp act ed ; and the median payback period.11

- 4 11.4.1 Senior

- Only Households

Table 11.4.1 Standard

- Sized Dishwashers : LCC and PBP Results for Senior

- Only Households

Level Life

- Cycle Cost Life

- Cycle Cost Savings 2010$ Payback Period Median Average Installed

Price years Average Operating Cost Average LCC Average Savings % Households with

2010$ Net Cost No Impact* Net Benefit
Baseline 630 397 1,027 NA 0 100 0 NA
1 656 366 1,022 0 2 96 1 7.2
2 674 342 1,016 2 16 71 13 13.3
3 726 324 1,050

- 19 54 38 8 42.3
4 734 261 996 24 36 20 44 8.5
5 745 191 936 78 29 9 62 5.7 * “No impact” means that the base case product assigned to the household has greater efficiency than the level indicated, so the household is not affected.

Table 11.4.2 Compact Dishwasher s : LCC and PBP Results for Senior

- Only Households

Level Life

- Cycle Cost Life

- Cycle Cost Savings 2010$ Payback Period Median Average Installed

Price years Average Operating Cost Average LCC Average Savings % Households with

2010$ Net Cost No Impact* Net Benefit
Baseline 621 288 910 NA 0 100 0 NA
1 623 249 871 9 8 76 16 0.4
2 638 170 808 41 7 50 43 2.7 * “No impact” means that the base case product assigned to the household has greater efficiency than the level indicated, so the household is not affected.11

- 5 11.4.2 Low

- Income Households

Table 11.4.3 Standard

- Sized Dishwashers : LCC and PBP Results for Low

- Income Households

Level Life

- Cycle Cost Life

- Cycle Cost Savings 2010$ Payback Period Median Average Installed

Price years Average Operating Cost Average LCC Average Savings % Households with

2010$ Net Cost No Impact* Net Benefit
Baseline 630 402 1,032 NA 0 100 0 NA
1 655 370 1,025 0 2 96 1 5.6
2 674 344 1,018 3 16 71 13 13.6
3 725 325 1,050

- 17 53 38 9 41.4
4 734 263 997 26 39 20 41 9.1
5 744 189 933 84 32 9 59 6.0

* “No impact” means that the base case product assigned to the household has greater efficiency than the level indicated, so the household is not affected.

Table 11.4.4 Compact Dishwashers : LCC and PBP Results for Low

- Income Households

Level Life

- Cycle Cost Life

- C ycle Cost Savings 2010$ Payback Period Median Average Installed

Price years Average Operating Cost Average LCC Average Savings

2010$ %
Net Cost Households with
No Impact* Net Benefit
Baseline 621 292 913 NA 0 100 0 NA
1 622 250 872 10 9 76 15 0.3
2 637 170 807 43 8 50 42 3.3 * “No impact” means that the base case product assigned to the household has greater efficiency than the level indicated, so the household is not affected.11-6 REFERENCES

1. U.S. Department of Energy

– En ergy Information Administration. Residential Energy Consumption Survey: 2005 Public Use Data Files. Washington, DC. (Last accessed July 10, 2012.) < http://www.eia.gov/emeu/recs/recspubuse05/p ubuse05.html >