10-B-i

APPENDIX 10-B. NATIONAL PRODUCT AND OPERATING COSTS

TABLE OF CONTENTS

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 Clothes Washers: Cumulative National Product and 

Operating Costs with Net Present Value from 2015–2044, 7-Percent 

Discount Rate........................................................................................10-B-3

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........................................................................................10-B-3
10-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 residential clothes washers. Components include the present value of the product

costs (or total installed cost) and the present value of the operating costs for each of the two 

product types 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:

NPV PVS PVC _ =

Where:

PVS = present value of savings in operating cost [including energy (electricity, gas, or 

oil) and water], and

PVC = present value of increased total installed costs (including product purchase price

and installation cost). 

DOE uses the following expressions to determine the PVS and PVC.

PVS = ∑OCSy × DFy

PVC = ∑TICy × DFy

Where:

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

stock,

TIC = total annual installed cost increases each year summed over vintages of the 

product stock,

DF = discount factor in each year, and

y = year in the forecast (2015–2044).

PVS and PVC are determined for each year from the effective date of the standard to the 

year that units purchased in 2044 retire.
10-B-2

The present value of product costs (or total installed costs) and the present value of 

operating costs comprise the PVC and PVS, respectively. The PVC is determined by taking the 

difference between the present value 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 washers. 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 operating 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 and 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 percent. 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-Percent 

Discount Rate 

Trial 

Standard 

Level

Incremental

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 -10.07
10-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