APPENDIX 5C. AVERAGE 2006 MATERIAL PRICING ANALYSIS 

TABLE OF CONTENTS 

5C.1 MATERIAL PRICING TABLES ......................................... 5-1


5C.2 2006 MATERIAL PRICE ENGINEERING ANALYSIS RESULTS .............. 5-3


5C.2.1 Design Line 1 Engineering Analysis Results ..................... 5-4


5C.2.2 Design Line 2 Engineering Analysis Results ..................... 5-6


5C.2.3 Design Line 3 Engineering Analysis Results ..................... 5-8


5C.2.4 Design Line 4 Engineering Analysis Results .................... 5-10


5C.2.5 Design Line 5 Engineering Analysis Results .................... 5-12


5C.2.6 Design Line 9 Engineering Analysis Results .................... 5-14


5C.2.7 Design Line 10 Engineering Analysis Results ................... 5-16


5C.2.8 Design Line 11 Engineering Analysis Results ................... 5-18


5C.2.9 Design Line 12 Engineering Analysis Results ................... 5-20


5C.2.10 Design Line 13 Engineering Analysis Results ................... 5-22


LIST OF TABLES 

Table 5C.1.1 Liquid-Immersed Material Prices Used in the Engineering Analyses ........ 5-2


Table 5C.1.2 Dry-Type Material Prices Used in the Engineering Analyses .............. 5-3


5C-i 

 EE-RM/STD-00-550 COMMENT 196
LIST OF FIGURES


Figure 5C.2.1 Price and Efficiency for 2006 Material Sensitivity, Design Line 1 .......... 5-4


Figure 5C.2.2 Material Price Scenario Comparison Plot, Design Line 1 ................. 5-5


Figure 5C.2.3 Price and Efficiency for 2006 Material Sensitivity, Design Line 2 .......... 5-6


Figure 5C.2.4 Material Price Scenario Comparison Plot, Design Line 2 ................. 5-7


Figure 5C.2.5 Price and Efficiency for 2006 Material Sensitivity, Design Line 3 .......... 5-8


Figure 5C.2.6 Material Price Scenario Comparison Plot, Design Line 3 ................. 5-9


Figure 5C.2.7 Price and Efficiency for 2006 Material Sensitivity, Design Line 4 ......... 5-10


Figure 5C.2.8 Material Price Scenario Comparison Plot, Design Line 4 ................ 5-11


Figure 5C.2.9 Price and Efficiency for 2006 Material Sensitivity, Design Line 5 ......... 5-12


Figure 5C.2.10 Material Price Scenario Comparison Plot, Design Line 5 ............... 5-13


Figure 5C.2.11 Price and Efficiency for 2006 Material Sensitivity, Design Line 9 ........ 5-14


Figure 5C.2.12 Material Price Scenario Comparison Plot, Design Line 9 ............... 5-15


Figure 5C.2.13 Price and Efficiency for 2006 Material Sensitivity, Design Line 10 ....... 5-16


Figure 5C.2.14 Material Price Scenario Comparison Plot, Design Line 10 .............. 5-17


Figure 5C.2.15 Price and Efficiency for 2006 Material Sensitivity, Design Line 11 ....... 5-18


Figure 5C.2.16 Material Price Scenario Comparison Plot, Design Line 11 .............. 5-19


Figure 5C.2.17 Price and Efficiency for 2006 Material Price Sensitivity, Design Line 12 ... 5-20


Figure 5C.2.18 Material Price Scenario Comparison Plot, Design Line 12 .............. 5-21


Figure 5C.2.19 Price and Efficiency for 2006 Material Sensitivity, Design Line 13 ....... 5-22


Figure 5C.2.20 Material Price Scenario Comparison Plot, Design Line 13 .............. 5-23


5C -ii 

 EE-RM/STD-00-550 COMMENT 196
APPENDIX 5C. AVERAGE 2006 MATERIAL PRICING ANALYSIS 

Core steel is one of the major cost drivers of a distribution transformer and is 

fundamentally linked to the efficiency of the finished transformer. When looking at energy 

conservation standards for distribution transformers, it is important to understand core steel 

pricing and influences on that pricing. The Department received several comments at the 

advance notice of proposed rulemaking (ANOPR) and the notice of proposed rulemaking 

(NOPR), stating that material prices, and particularly core steel, were experiencing a rapid 

increase. Therefore, in addition to its analysis on a five-year average material price (2002 

through 2006), the Department conducted a current year material price sensitivity analysis, using 

the 2006 average material prices. The results of the five-year average are presented in Chapter 5 

of the technical support document (TSD). The results of the 2006 material price sensitivity 

analysis are presented in this appendix. 

The life-cycle cost (LCC) results for the 2006 material price scenario can be found in 

TSD Appendix 8E, which presents the Department’s sensitivity analyses conducted on various 

LCC inputs, including material prices. In Chapter 8, the 2006 material price is referred to as the 

“high” price scenario and the 2002-2006 average price scenario is called the “medium” price 

scenario. The Department also created a “low” price scenario to establish a lower bound for the 

LCC sensitivity analysis. It based the low price scenario on material prices in 2002 (the calender 

year with the lowest $/pound for M6 core steel) and reduced all the material prices in that year by 

15 percent. These material prices can be found in the material price tables in Chapter 5, and the 

low-price scenario manufacturer selling prices can be found in the LCC spreadsheets. 

5C.1 MATERIAL PRICING TABLES 

The Department completed a supplementary engineering analysis using 2006 material 

prices. The following table presents the five-year average and the 2006 material prices used for 

liquid-immersed units. 

5C -1 

 EE-RM/STD-00-550 COMMENT 196
Table 5C.1.1 Liquid-Immersed Material Prices Used in the Engineering Analyses 

Material 2006 

$/lb. 

5-yr Avg. 

2006$/lb. 

M2 core steel $1.66 $1.16 

M3 core steel $1.62 $1.06 

M4 core steel $1.59 $1.02 

M6 core steel $1.40 $0.92 

ZDMH (mechanically-scribed core steel) $1.75 $1.63 

SA1 (amorphous) - finished core, volume production $2.20 $2.14 

Copper wire, formvar, round #10-20 $4.99 $2.58 

Copper wire, enameled, round #7-10 flattened $5.28 $2.62 

Copper wire, enameled, rectangular sizes $4.45 $2.80 

Aluminum wire, formvar, round #9-17 $1.68 $1.53 

Aluminum wire, formvar, round #7-10 $1.71 $1.55 

Copper strip, thickness range 0.020-0.045 $3.15 $2.69 

Copper strip, thickness range 0.030-0.060 $3.05 $2.61 

Aluminum strip, thickness range 0.020-0.045 $2.01 $1.70 

Aluminum strip, thickness range 0.045-0.080 $2.12 $1.67 

Kraft insulating paper with diamond adhesive $1.66 $1.65 

Mineral oil $1.82 $1.83 

Tank steel $0.50 $0.44 

Likewise, the Department used material prices from the 2006 sensitivity price analysis to 

conduct an additional engineering analysis for dry-type units. The following table presents the 

five-year average and 2006 material prices used in both engineering analyses for dry-type units. 

5C -2 

 EE-RM/STD-00-550 COMMENT 196
Table 5C.1.2 Dry-Type Material Prices Used in the Engineering Analyses 

Material 2006 

$/lb. 

5-yr Avg. 

2006$/lb. 

H-O DR core steel (domain-refined) $1.76 $1.27 

M3 core steel $1.62 $1.07 

M4 core steel $1.59 $1.02 

M5 core steel $1.55 $0.97 

M6 core steel $1.50 $0.95 

M19 core steel (26 gauge) $0.73 $0.61 

M36 core steel (29 gauge) $0.65 $0.56 

M36 core steel (26 gauge) $0.60 $0.51 

M43 core steel (26 gauge) $0.57 $0.48 

Rectangular copper wire 0.1 x 0.2, Nomex $5.20 $2.87 

Rectangular aluminum wire 0.1 x 0.2, Nomex $1.91 $2.06 

Copper strip, thickness range 0.020-0.045 $4.74 $2.99 

Aluminum strip, thickness range 0.020-0.045 $2.01 $1.70 

Nomex insulation (per pound) $17.07 $18.14 

Cequin insulation (per pound) $8.50 $11.07 

Impregnation (per gallon) $21.35 $18.57 

Winding combs (per pound) $7.56 $9.47 

Enclosure Steel (per pound) $0.50 $0.44 

The Department used the same markup percentages for both engineering analyses, 

including markups of 2.5 percent for the scrap factor, 4 percent for additional scrap due to the 

core steel mitering process, 12.5 percent for factory overhead, and 25 percent for non-production 

costs. 

5C.2 2006 MATERIAL PRICE ENGINEERING ANALYSIS RESULTS 

This section provides a visual representation of the results of the 2006 material pricing 

analysis. The scatter plots in this section show the relationship between the manufacturer's 

selling price and efficiency relationships for each of the 10 design lines. Each dot on the plots 

represents one unique design created by the software at a given manufacturer's selling price and 

efficiency level. The placement of each dot (and the uniqueness of each design) is dictated by the 

design option combinations (core steel and windings), core shape, and combination of A and B 

factors (the capitalized cost per watt of no-load and load losses). 

Additional scatter plots within each subsection illustrate the manufacturer selling price 

delta between transformer designs using 2002–2006 average material prices and 2006 material 

5C -3 

 EE-RM/STD-00-550 COMMENT 196
prices. Each scatter plot also visually presents the candidate standard levels chosen for 

consideration by the Department, for that particular design line. 

5C.2.1 Design Line 1 Engineering Analysis Results 

Figure 5C.2.1 presents a plot of the 2006 manufacturer selling prices and efficiency levels 

for the full database of designs for the representative unit from design line 1. The efficiency 

levels shown in this plot represent transformers at 50 percent of nameplate load and are corrected 

for temperature. 

Figure 5C.2.1 Price and Efficiency for 2006 Material Sensitivity, Design Line 1 

5C -4 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.2 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 1 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.2 Material Price Scenario Comparison Plot, Design Line 1 

5C -5 

 EE-RM/STD-00-550 COMMENT 196
5C.2.2 Design Line 2 Engineering Analysis Results 

Figure 5C.2.3 presents a plot of the 2006 manufacturer selling prices and efficiency levels 

for the full database of designs for the representative unit from design line 2. The efficiency 

levels shown in this plot represent transformers at 50 percent of nameplate load and are corrected 

for temperature. 

Figure 5C.2.3 Price and Efficiency for 2006 Material Sensitivity, Design Line 2 

5C -6 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.4 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 2 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.4 Material Price Scenario Comparison Plot, Design Line 2 

5C -7 

 EE-RM/STD-00-550 COMMENT 196
5C.2.3 Design Line 3 Engineering Analysis Results 

Figure 5C.2.5 presents a plot of the 2006 manufacturer selling prices and efficiency levels 

for the full database of designs for the representative unit from design line 3. The efficiency 

levels shown in this plot represent transformers at 50 percent of nameplate load and are corrected 

for temperature. 

Figure 5C.2.5 Price and Efficiency for 2006 Material Sensitivity, Design Line 3 

5C -8 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.6 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 3 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.6 Material Price Scenario Comparison Plot, Design Line 3 

5C -9 

 EE-RM/STD-00-550 COMMENT 196
5C.2.4 Design Line 4 Engineering Analysis Results 

Figure 5C.2.7 presents a plot of the 2006 manufacturer selling prices and efficiency levels 

for the full database of designs for the representative unit from design line 4. The efficiency 

levels shown in this plot represent transformers at 50 percent of nameplate load and are corrected 

for temperature. 

Figure 5C.2.7 Price and Efficiency for 2006 Material Sensitivity, Design Line 4 

5C-10 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.8 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 4 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.8 Material Price Scenario Comparison Plot, Design Line 4 

5C-11 

 EE-RM/STD-00-550 COMMENT 196
5C.2.5 Design Line 5 Engineering Analysis Results 

Figure 5C.2.9 presents a plot of the 2006 manufacturer selling prices and efficiency levels 

for the full database of designs for the representative unit from design line 5. The efficiency 

levels shown in this plot represent transformers at 50 percent of nameplate load and are corrected 

for temperature. 

Figure 5C.2.9 Price and Efficiency for 2006 Material Sensitivity, Design Line 5 

5C-12 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.10 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 5 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.10 Material Price Scenario Comparison Plot, Design Line 5 

5C-13 

 EE-RM/STD-00-550 COMMENT 196
5C.2.6 Design Line 9 Engineering Analysis Results 

Figure 5C.2.11 presents a plot of the 2006 manufacturer selling prices and efficiency 

levels for the full database of designs for the representative unit from design line 9. The 

efficiency levels shown in this plot represent transformers at 50 percent of nameplate load and 

are corrected for temperature. 

Figure 5C.2.11 Price and Efficiency for 2006 Material Sensitivity, Design Line 9 

5C-14 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.12 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 9 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.12 Material Price Scenario Comparison Plot, Design Line 9 

5C-15 

 EE-RM/STD-00-550 COMMENT 196
5C.2.7 Design Line 10 Engineering Analysis Results 

Figure 5C.2.13 presents a plot of the 2006 manufacturer selling prices and efficiency 

levels for the full database of designs for the representative unit from design line 10. The 

efficiency levels shown in this plot represent transformers at 50 percent of nameplate load and 

are corrected for temperature. 

Figure 5C.2.13 Price and Efficiency for 2006 Material Sensitivity, Design Line 10 

5C-16 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.14 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 10 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.14 Material Price Scenario Comparison Plot, Design Line 10 

5C-17 

 EE-RM/STD-00-550 COMMENT 196
5C.2.8 Design Line 11 Engineering Analysis Results 

Figure 5C.2.15 presents a plot of the 2006 manufacturer selling prices and efficiency 

levels for the full database of designs for the representative unit from design line 11. The 

efficiency levels shown in this plot represent transformers at 50 percent of nameplate load and 

are corrected for temperature. 

Figure 5C.2.15 Price and Efficiency for 2006 Material Sensitivity, Design Line 11 

5C-18 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.16 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 11 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.16 Material Price Scenario Comparison Plot, Design Line 11 

5C-19 

 EE-RM/STD-00-550 COMMENT 196
5C.2.9 Design Line 12 Engineering Analysis Results 

Figure 5C.2.17 presents a plot of the 2006 manufacturer selling prices and efficiency 

levels for the full database of designs for the representative unit from design line 12. The 

efficiency levels shown in this plot represent transformers at 50 percent of nameplate load and 

are corrected for temperature. 

Figure 5C.2.17 Price and Efficiency for 2006 Material Price Sensitivity, Design Line 12 

5C-20 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.18 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 12 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.18 Material Price Scenario Comparison Plot, Design Line 12 

5C-21 

 EE-RM/STD-00-550 COMMENT 196
5C.2.10 Design Line 13 Engineering Analysis Results 

Figure 5C.2.19 presents a plot of the 2006 manufacturer selling prices and efficiency 

levels for the full database of designs for the representative unit from design line 13. The 

efficiency levels shown in this plot represent transformers at 50 percent of nameplate load and 

are corrected for temperature. 

Figure 5C.2.19 Price and Efficiency for 2006 Material Sensitivity, Design Line 13 

5C-22 

 EE-RM/STD-00-550 COMMENT 196
Figure 5C.2.20 presents a plot of the manufacturer selling prices and efficiency levels for 

the full database of designs for the representative unit from design line 13 using both 2002–2006 

average material prices and 2006 material prices. The efficiency levels shown in this plot 

represent transformers at 50 percent of nameplate load and are corrected for temperature. 

Figure 5C.2.20 Material Price Scenario Comparison Plot, Design Line 13 

5C-23 

 EE-RM/STD-00-550 COMMENT 196