10

- B

- i APPENDIX 10

- B. NATIONAL PRODUCT AND OPERATING COSTS

TABLE OF CO NTENTS

10

- B.1 INTRODUCTION

................................ ................................ ............................ 10

- B

- 1 10

- B.2 RESULTS

................................ ................................ ................................ ........ 10

- B

- 2

LIST OF TABLES

Table 10

- B.2.1 Front

- Loading Clothes Washers: Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044, 3

- Percent Discount Rate

................................ ................................ ........................ 10

- B

- 2 Table 10

- B.2.2 Top

- Loading Clothes Washers: Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044, 3

- Percent Discount Rate

................................ ................................ ........................ 10

- B

- 3 Table 10

- B.2.3 Front

- Loading Cloth es Washers: Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044, 7

- Percent Discount Rate

................................ ................................ ........................ 10

- B

- 3 Ta ble 10

- B.2.4 Top

- Loading Clothes Washers: Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044, 7

- Percent Discount Rate

................................ ................................ ........................ 10

- B

- 310

- B

- 1 APPENDIX 10

- B. NATIONAL PRODUCT AND OPERATING COSTS

10

- B.1 INTRODUCTION
In this appendix, the U.S. Department of Energy (DOE) presents the components of the calculation of the net present value (NPV) associated with base

- case and standards

- case efficiencies for resi dential clothes washers. C omponents include the present value of the product costs (or total install ed cost ) and the present value of the operating costs for each of the two product typ es of residential clothes washers ( front

- loading and top

- loading) . The present value of product costs is also termed the cumulative national product costs ; the present value of operating costs is also termed the cumulative national operating costs.

As presented in Chapter 10, National Impact Analysis, the NPV is described by the equation:

PVC PVS NPV

_ =

W here :

PVS = p rese nt value of savings in operating cost [ including energy ( electricity, gas, or oil) and water ]

, and PVC = p resent value of increased total installed costs (including product purchase price and installation cost ).

DOE uses the following expressions to determine th e PVS and PVC

. 

## ∑ × = y y DF OCS PVS


## ∑ × = y y DF TIC PVC

W here:

OCS = t otal annual operating cost savings each year summed over vintages of the product

s tock, TIC = t otal annual installed cost increases each year summed over vintages of the product stock, DF = d iscount factor in each year, and
y = y ear in the forecast ( 2015

– 2044 ).

PVS and PVC are determined for each year from the effective date of the standard to the
y ear that units purchased in 204 4 retire.10

- B

- 2 The present value of product costs (or total installed costs) and the present value of operating costs comprise the PV C and PV S , respectively . The PVC is determined by taking the difference between the present va lue of product costs for the base case and the present value of product costs for a standards case. The PVS is determined by taking the difference between the present value of operating costs for the base case and the present value of operating costs for a standards case.

10

- B.2 RESULTS

The following tables show the present value of product costs (also known as cumulative national product costs) and the present value of operating costs (also known as cumulative national operating costs) for the two product classes of residential clothes washer s. For each product type , two sets of results are presented: one based on a 3

- percent discount rate

, and another based on a 7

- percent discount rate.

The tables provide the national product and operati ng costs for each trial standard level analyzed. Differences in national product and operating costs between the base case and each standard case also are presented. The difference between the total national product and operating
costs for the base case an d each standards case represents the NPV for that standard

.

Tables 10

- B.2.1 and 10

- B.2.2 present the national PVC, PVS , and NPV for clothes washers at a real discount rate of 3 perce nt

. Tables 10

- B.2.3 and 10

- B.2.4 present the national PVC, PVS, and NPV for clothes washers at a real discount rate of 7 percent

.

Table 10

- B.2.1 Front

- Loading Clothes Washers : Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044 , 3

- Per cent Discount Rate

Trial Standard

Level In cremental Equipment Cost billion 2010 $ Operating Cost Savings billion 2010 $ Total billion 2010 $

1 1.35

- 1.56

- 2.92 2 2.52

- 1.28

- 3.79 3 4.56

- 0.39

- 4.96 4 13.84

- 1.86

- 15.71 5 16.56 6.49

- 10.0710

- B

- 3 Table 10

- B.2.2 Top

- Loading Clothes Washers : Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044 , 3

- Percent Discount Rate

Trial Standard

Level Incremental Equipment Cost billion 2010 $ Operating Cost Savings billion 2010 $ Total billion 2010 $

1

- 0.18 22.92 23.10 2

- 0.30 21.96 22.26 3

- 0.41 35.84 36.25 4

- 0.88 56.43 57.31 5

- 0.60 59.94 60.54

Table 10

- B.2.3 Front

- Loading Clothes Washers : Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044 , 7

- Percent Discount Rate

Trial Standard

Level Incremental Equipment Cost billion 2010 $ Operating Cost Savings billion 2010 $ Total billion 2010 $

1 0.80

- 0.68

- 1.48 2 1.48

- 0.59

- 2.07 3 2.52

- 0.04

- 2.56 4 8.11

- 0.79

- 8.89 5 9.69 2.94

- 6.76

Table 10

- B.2.4 Top

- Loading Clothes Washers : Cumulative National Product and Operating Costs with Net Present Value from 2015

– 2044 , 7

- Percent Discount Rate

Trial Standard

Level Incremental Equipment Cost billion 2010 $ Operating Cost Savings billion 2010 $ Total billion 2010 $

1

- 0.10 10.10 10.20 2

- 0.18 9.67 9.84 3

- 0.22 15.35 15.57 4

- 0.50 24.81 25.31 5

- 0.32 26.35 26.67