APPENDIX N. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET
TABLE OF CONTENTS N.1 USER INSTRUCTIONS ............................................... N-1 N.1.1 Startup ....................................................... N-1 N. 1.2 Description of Life-Cycle Cost Worksheets .......................... N-2 N.1.3 Basic Instructions for Operating the Life-Cycle Cost Spreadsheets ........ N-5
LIST OF TABLES Table N. 1 .1 List of LCC Spreadsheets ........................................ N-1 APPENDIX N. USER INSTRUCTIONS FORTHE LIFE-CYCLE COST ANALYSIS SPREADSHEET
TABLE OF CONTENTS N.I USER INSTRUCTIONS
............................................... N-I N.I.I Startup
....................................................... N-I N.1.2 Description ofLife-Cycle Cost Worksheets
.......................... N-2 N.I.3 Basic Instructions for Operating the Life-Cycle Cost Spreadsheets
.. . . . . .. N-5
LIST OF TABLES Table N.I.I List ofLCC Spreadsheets
........................................ N-I

N-iAPPENDIX N: USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET
N.1 USER INSTRUCTIONS The results obtained in this analysis can be examined and reproduced using the Microsoft Excel' spreadsheets accessible on the Internet from DOE's Furnace and Boiler Rulemaking page: http://www.eere.energy.gov/buildings/appliance standards/residential/furnaces_boilers.html. From that page, follow the links to the final rule and then to the Analytical Tools. N.1.1 Startup The Department named the spreadsheets"LCC XX.xls" where "XX" stands for the product class and subgroup analysis if applicable. The spreadsheets enable users to perform Life-Cycle Cost (LCC) analyses of residential furnace and boilers. A separate spreadsheet exists for each of theproduct classes and additional spreadsheets exist for subgroup analysis performed on nonweatherized gas furnaces. Table N. 1.1 lists all LCC spreadsheets used in this analysis. Table N.1.1 List of LCC Spreadsheets Filename Description Main Spreadsheets LCC GB.xls Generates LCC results for Gas Boilers. (Ch. 7 & 8). LCC MHF.xls Generates LCC results for Mobile Home Furnaces (Ch. 7 & 8 ). LCC NWGF.xls Generates LCC results for Non-Weatherized Gas Furnaces (Ch. 7 & 8 ). LCC OB.xls Generates LCC results for Oil Boilers. (Ch. 7 & 8). LCC OF.xls Generates LCC results for Oil Furnaces. (Ch. 7 & 8). LCC WGF.xls Generates LCC results for Weatherized Gas Furnaces. (Ch. 7 & 8). Low Income and Senior Only Subgroup Analysis for Non-weatherized Gas Furnaces LCC NWGF Lowlncome.xls Generates LCC low income subgroup results for NWGF (Ch. 11 ). LCC NWGF Senior.xls Generates LCC senior subgroup results for NWGF (Ch. 11 ). Regional Subgroup Analysis (5000 HDD & 6000 HDD) for Non-weatherized Gas Furnacesa LCC NWGF GT5000HDD.xls Generates LCC north regional subgroup results (HDD5000) (Ch. 11). LCC NWGF LT5000HDD.xls Generates LCC south regional subgroup results (HDD5000) (Ch. 11). LCC NWGF GT6000HDD.xls Generates LCC north regional subgroup results (HDD6000) (Ch. 11). LCC NWGF LT6000HDD.xls Generates LCC south regional subgroup results (HDD6000) (Ch. 11).

a LCC Main and Regional Spreadsheets are also used to generate inputs for the National Impact Analysis (Chapter 10). N-1 APPENDIX N: USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET
N.l USER INSTRUCTIONS The results obtained in this analysis can be examined and reproduced using the Microsoft Excel® spreadsheets accessible on the Internet from DOE's Furnace and Boiler Rulemaking page: http://www.eere.energy.gov/buildings/appliance _standards/residential/furnaces
_boilers.html. From that page, follow the links to the final rule and then to the Analytical Tools. N.1.1 Startup TheDepartmentnamedthe spreadsheets"LCC
_XX.xls" where "XX" stands for the product class andsubgroup analysisifapplicable. The spreadsheets enableusers to performLife-CycleCost (LCC) analyses ofresidential furnace and boilers. A separate spreadsheet exists for each ofthe product classes and additional spreadsheets exist for subgroup analysis performed on nonweatherized gas furnaces. Table N.l.l lists all LCC spreadsheets used in this analysis. T bi NIl L' t fLCC S

a e 

# .. IS 0 ;pread h t S ee S Filename Description 

### Main Spreadsheetsa LCC GB.xls Generates LCC results for Gas Boilers. (Ch. 7 & 8). LCC MHF.xls Generates LCC results for Mobile Home Furnaces (Ch. 7 & 8 ). LCC NWGF.xls Generates LCC results for Non-Weatherized Gas Furnaces (Ch. 7 & 8). LCC OB.xls Generates LCC results for Oil Boilers. (Ch. 7 & 8). LCC OF.xls Generates LCC results for Oil Furnaces. (Ch. 7 & 8). LCC WGF.xls Generates LCC results for Weatherized Gas Furnaces. (Ch. 7 & 8). 

### LowIncome andSenior Only SubgroupAnalysis for Non-weatherized Gas Furnaces LCC NWGF LowIncome.xls Generates LCC low income subgroup results for NWGF (Ch. 11 ).

- - LCC NWGF Senior.xis Generates LCC senior subgroup results for NWGF (Ch. 11 ).

- - 

### RegionalSubgroupAnalysis (5000 HDD & 

### 6000 HDD)for Non-weatherized Gas Furnacesa LCC NWGF GT5000HDD.xls Generates LCC north regional subgroup results (HDD5000) (Ch. 11).

- - LCC
_NWGF
_LT5000HDD.xls Generates LCC south regional subgroup results (HDD5000) (Ch. II). LCC_NWGF_GT6000HDD.xls Generates LCC north regional subgroup results (HDD6000) (Ch. 11). LCC NWGF LT6000HDD.xls Generates LCC south regional subgroup results (HDD6000) (Ch. 11).

a LCC Main andRegional Spreadsheets are also used to generate inputs for the National Impact Analysis (Chapter 10). N-lTo examine the spreadsheets, the Department assumes that the user has access to a personal

computer (PC) with a hardware configuration capable of running Windows NT/2000/XP. The furnace and boiler LCC spreadsheets require Microsoft Excel® 2000 or later installed under the Windows operating system. Because certain variables inside the spreadsheets are defined as distributions; the user's computer requires a copy of Crystal Ball® from Decisioneering-. 11.1.2 Description of Life-Cycle Cost Worksheets For each of the six product classes, the Department created one spreadsheet as an Excel® workbook containing a collection of worksheets (referred to as "sheets"). The Department modularized the calculations. Each sheet usually represents a conceptual component within the LCC calculation. To facilitate navigability and identify how the sheets are related, each sheet contains an area on the extreme left that shows the variables which are imported from other sheets and also the variables that are used by other sheets. The LCC spreadsheets consist of the following worksheets: Simulation Results The Simulation Results contains the LCC and Payback Period simulation

results for each design option of the product class. Simulation Stat The Simulation Stat contains the retail price, installation cost, total installed price, annual gas use, annual electricity use, burner operating hours (steady state for single-stage or high-fire for two-stage and step-modulation), burning operating hours (low-fire for two-stage and step-modulation), household characteristics, annual maintenance cost, annual repair cost, and annual fuel cost results for each design option of the product class. Summary The Summary contains a user interface to manipulate the Energy Price Trend and the Start Year and to run a Crystal Ball® simulation. The Department shows results of LCC calculations for different efficiency levels for a single Residential Energy Consumption Survey (RECS) household only. During a Crystal Ball® simulation, the spreadsheet records the LCC and payback periods for every sampled household. Equipment Price The Equipment Price calculates retail price values used as inputs in the LCC calculations in the Summary sheet. The Department derived the inputs for the Equipment Price sheet from the baseline and incremental manufacturer costs from the Engineering Spreadsheet. DOE applied baseline and incremental markups inputs derived in the Markups sheet to calculate the final retail prices. The Department based the prices on a baseline unit and adjusted for the size of the equipment (and the size of the air handler for furnaces installed in each sampled household.) Markups The Markups sheet contains distributions of (i) manufacturer markup, (ii)

wholesaler markup, (iii) contractor markup, (iv) builder markup for new
N-2 To examine the spreadsheets, the Department assumes that the user has access to apersonal computer (PC) with a hardware configuration capable of running Windows 

### NT/2000/XP. The furnace and boiler LCC spreadsheets require Microsoft Excel® 2000 or later installed under the Windows operating system. Because certain variables inside the spreadsheets are defined as distributions; the user's computer requires a copy ofCrystal Ball® from Decisioneering". N.1.2 Description ofLife-Cycle Cost Worksheets For each ofthe six product classes, the Department created one spreadsheet as an Excel® workbook containing a collection of worksheets (referred to as "sheets"). The Department modularizedthecalculations. Each sheetusuallyrepresents aconceptual componentwithinthe LCC calculation. To facilitate navigability and identify how the sheets are related, each sheet contains an area on the extreme left that shows the variables which are imported from other sheets and also the variables that are used by other sheets. The LCC spreadsheets consist of the following worksheets: Simulation Results The Simulation Results contains the LCC and Payback Period simulation results for each design option ofthe product class. Simulation Stat

Summary

EquipmentPrice

Markups The Simulation Stat contains the retail price, installation cost, total installed price, annual gas use, annual electricity use, burner operating hours (steady statefor single-stage orhigh-fire fortwo-stage and step-modulation),burning operating hours (low-fire for two-stage and step-modulation), household characteristics, annual maintenance cost, annual repair cost, and annual fuel cost results for each design option ofthe product class. The Summary contains auserinterfaceto manipulatetheEnergyPrice Trend and the Start Year and to run a Crystal Ball® simulation. The Department shows results ofLCC calculations for different efficiency levels for a single Residential Energy Consumption Survey (RECS) household only. During a Crystal Ball® simulation, the spreadsheet records the LCC and payback periods for every sampled household. The Equipment Price calculatesretail price values used as inputs in the LCC calculations in the Summary sheet. The Department derived the inputs for the Equipment Price sheet from the baseline and incremental manufacturer costs from the Engineering Spreadsheet. DOE applied baseline and incremental markups inputs derived in the Markups sheet to calculate the final retail prices. The Department based the prices on a baseline unit and adjusted for the size ofthe equipment (and the size ofthe air handler for furnaces installed in each sampled household.) The Markups sheet contains distributions of (i) manufacturer markup, (ii) wholesaler markup, (iii) contractor markup, (iv) builder markup for new
N-2homes, and (v) sales tax. The Department use these distributions of markups to calculate the total baseline markup and total incremental markup for every design option. DOE calculated the markups differently for replacement units and new units.Energy Use The Energy Use calculates burner operating hours for single-stage and twostage equipment and the annual gas or oil and electricity use. The annual energy use calculations for each design option are inputs to the Summary sheet to calculate the annual operating cost of the LCC. Electricity The Electricity Use calculates the electricity use of the air handler. For the Use electricity use of both permanent split capacitor (PSC) and electronically

commutated motor (ECM) air handle motors, the Department calculated separately for both single-stage, two-stage, and step-modulation equipment and for non-condensing and condensing furnaces. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers. Fan Curves The Fan Curves contains the coefficients of the equations for the fan curves

and watt/CFM curves for PSC and ECM air handler motors in noncondensing, condensing, high-fire and low-fire models. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers. AFUEexisting The AFUEexisting Lookup determines the efficiency of the existing Lookup equipment in the household at the time of Residential Energy Consumption Survey (RECS) 2001 survey.' DOE located the AFUE from tables of the age of the heating equipment and the Heating-Degree-Day (HDD) of the weather for the house. The Department assumed the AFUE of the existing equipment in the household to correlate by rank with HDD. InputCapacity The InputCapacity Lookup determines the input capacity of the existing Lookup heating equipment in the house and located the capacity on a table based on

the age of the heating equipment and the square-footage of the household. The Department assumes the input capacity correlate by rank with the size of the house. AirFlow Lookup The AirFlow Lookup determines the size of the air handler (or maximum air

flow) of the heating equipment. If the house has central air conditioning then the size of the air handler, the Department rank ordered the size of the household with size of the units within air conditioner shipments of that vintage. If the house does not have central air conditioning then the Department assumed the size of the air handler to be sized for 800 CFM at 0.5 in.w.g. static pressure. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers.
N-3 Energy Use

Electricity Use

Fan Curves

AFUEexisting Lookup

InputCapacity Lookup

AirFlowLookup homes, and (v) sales tax. The Departmentuse these distributions ofmarkups to calculatethe total baseline markup andtotal incrementalmarkup for every design option. DOEcalculatedthe markups differently forreplacementunits and new units. The Energy Use calculates burner operating hours for single-stage and twostage equipment and the annual gas or oil and electricity use. The annual energy use calculations for each design option are inputs to the Summary sheet to calculate the annual operating cost ofthe LCe. The Electricity Use calculates the electricity use ofthe air handler. For the electricity use ofboth permanent split capacitor (PSC) and electronically commutated motor (ECM) air handle motors, the Department calculated separately for both single-stage, two-stage, and step-modulation equipment and for non-condensing and condensing furnaces. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers. The Fan Curves contains the coefficients ofthe equations for the fan curves and 

### watt/CFM curves for PSC and ECM air handler motors in noncondensing, condensing, high-fire and low-fire models. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers. The AFUEexisting Lookup determines the efficiency of the existing equipment in the household at the time ofResidential Energy Consumption Survey (RECS) 2001 survey.l DOE locatedthe AFUE from tables ofthe age oftheheating equipmentandthe Heating-Degree-Day (HDD) oftheweather for the house. The Department assumedthe AFUE ofthe existing equipment in the household to correlate by rank with HDD. The InputCapacity Lookup determines the input capacity of the existing heating equipment in the house and located the capacity on a table based on the age ofthe heating equipment and the square-footage ofthe household. The Department assumes the input capacity correlate by rank with the size ofthe house. The AirFlow Lookup determines the size ofthe airhandler (or maximum air flow) oftheheating equipment. Ifthe househas central airconditioningthen the size of the air handler, the Department rank ordered the size of the household with size of the units within air conditioner shipments of that vintage. If the house does not have central air conditioning then the Department assumed the size ofthe air handler to be sized for 800 CFM at 0.5 in.w.g. static pressure. The boiler spreadsheets do not contain this sheet because boilers do not have air handlers.
N-3Generic Model The Generic Model Lookup maps the input capacity and air handler size to

Lookup one of the predefined set of generic models. HDD Dist The HDD Dist by Division looks up the rank of the HDD of the climate of by Division the house within the HDD of all houses. For non-weatherized gas furnaces,

the Department rank ordered the HDD within the household's census division. RECS HH Data The RECS HH Data contains the RECS 2001 household data for each product class. It includes: average and marginal energy prices, annual gas or oil use, size of the house, age of the house, and the age of the existing heating equipment. AFUE Baseline The AFUE Baseline Lookup determines the AFUE of the baseline unit which Lookup represents the equipment that the household would have purchased in 2015

in the absence of standards. DOE rank order correlated the AFUE with the HDD of the house. For non-weatherized gas furnaces, DOE performed this rank correlation within the division to which the house belongs. For all other product classes, the Department rank correlated all houses within the sample. Installation Cost

Maintenance Cost

Energy Price Trends

Discount Rate

Lifetime The Installation Cost provides the weighted average installation cost for each

design option. It is an input to the Summary sheet to calculate the total installed prices of the design options. The Maintenance Cost provides the maintenance cost for each design option. It is an input to the Summary sheet to be part of the operating costs of the design options. The Energy Price Trends provides the price trends of the different heating fuels; these trends represent the growth rate of energy prices relative to the energy prices in 2001. DOE took energy price data and forecasts from the EIA's Annual Energy Outlook 20072 for the period until 2030; and then extrapolated beyond 2030. The Discount Rate contains the distributions of discount rates for replacement and new units. The Lifetime contains the distribution of lifetimes for equipment of that product class. Labels The Labels contains labels and variables that are used for the user interface

in the Summary sheet.

N-4 Generic Model Lookup HDD Dist by Division

RECS HHData

AFUEBaseline Lookup

InstallationCost

MaintenanceCost
Energy Price Trends

Discount Rate
Lifetime
Labels The Generic Model Lookup maps the input capacity and air handler size to one ofthe predefined set ofgeneric models. The HDD Dist by Division looks up the rank ofthe HDD ofthe climate of the house within the HDD ofall houses. Fornon-weatherized gas furnaces, the Department rank ordered the HDD within the household's census division. The RECS HH Data contains the RECS 2001 household data for each productclass. Itincludes: average andmarginal energyprices, annual gas or oil use, size ofthe house, age ofthe house, andthe age ofthe existingheating equipment. TheAFUE BaselineLookup determines the AFUE ofthebaselineunit which represents the equipment that the household would have purchased in 2015 inthe absence ofstandards. DOE rank order correlated the AFUE with the HDD ofthe house. Fornon-weatherized gas furnaces, DOE performed this rankcorrelationwithinthe divisionto whichthe housebelongs. For all other productclasses, theDepartmentrankcorrelatedallhouses withinthe sample. TheInstallationCostprovidestheweightedaverage installationcostfor each design option. It is an input to the Summary sheet to calculate the total installed prices ofthe design options. TheMaintenance Costprovides themaintenance costfor each design option. It is an input to the Summary sheet to be part ofthe operating costs ofthe design options. The Energy Price Trends provides the price trends ofthe different heating fuels; these trends represent the growth rate ofenergy prices relative to the energy prices in 2001. DOE took energy price data and forecasts from the EIA's Annual Energy Outlook 20072 for the period until 2030; and then extrapolated beyond 2030. The Discount Rate contains the distributions of discount rates for replacement and new units. The Lifetime contains the distribution of lifetimes for equipment of that product class. The Labels contains labels and variables that are used for the user interface in the Summary sheet.

N-4N.1.3 Basic Instructions for Operating the Life-Cycle Cost Spreadsheets

Basic instructions for operating the LCC spreadsheet are as follows: 1. Once the LCC spreadsheet file has been downloaded from the Web, open the file using Excel®. Click "Enable Macro" when prompted and then click on the tab for the worksheet Summary. 2. Use Excel's® View/Zoom commands at the top menu bar to change the size of the display to fit your monitor.3. The user can change the parameters listed under USER OPTIONS. There are three dropdown boxes and one command button. The default parameters are: a. Energy Price Trend: Set to "AEO 2007 - Reference Case". To change values use the drop-down arrow and select the desired energy price trend (Reference, Low or High). b. Start Year: Set to 2015. To change the value use the drop-down arrow and select the desired year (2015, 2011, 2012, 2013 or 2014). c. # of Trials: Set to 10,000. To change this value use the drop-down arrow and select the desired number of trials (10,000, 1,000, 2,000, 3,000 or 5,000). d. Material Price Scenarios: Set to "Average". To change this value use the drop-down arrow and select the desired scenario (Average, High, or Low). e. Rebound Effect: Set to "none". To change this value use the drop-down arrow and select the desired value (none or 15%). f. Weatherized Gas Furnace Stainless Steel Heat Exchanger Cost Option: Set to "Low". To change this value use the drop-down arrow and select the desired cost option (Low or High).
g. Gas Boiler Draft Inducer Cost Option: Set to "Low". To change this value use the drop-down arrow and select the desired cost option (Low or High). 4. To run the Crystal Ball simulation, click the "run" button (you must re-run after changing the parameters). The spreadsheet will then be minimized. You can monitor the progress of the simulation by watching the count of iterations at the left bottom corner. When the simulation is finished, a sheet named Simulation Results will appear with the results. N.1.3 Basic Instructions for Operating the Life-Cycle Cost Spreadsheets Basic instructions for operating the LCC spreadsheet are as follows: 1. Once the LCC spreadsheet file has been downloaded from the Web, open the file using Excel®. Click "Enable Macro" when prompted and then click on the tab for the worksheet Summary. 2. Use Excel's® View/Zoom commands at the top menubarto changethe size ofthe display to fit your monitor. 3. The user can change the parameters listed under USER OPTIONS. There are three dropdown boxes and one command button. The default parameters are: a. Energy Price Trend: Set to "AEO 2007

- Reference Case". To change values use the drop-down arrow and select the desired energy price trend (Reference, Low or High). b. StartYear: Setto 2015. To change the valueuse the drop-down arrow and selectthe desired year (2015,2011,2012,2013 or 2014).
c. # ofTrials: Setto 10,000. To change this value use the drop-down arrow and select the desired number oftrials (10,000, 1,000,2,000,3,000 or 5,000). d. MaterialPrice Scenarios: Set to "Average". To changethis value use the drop-down arrow and select the desired scenario (Average, High, or Low).
e. Rebound Effect: Set to "none". To change this value use the drop-down arrow and select the desired value (none or 15%). f. WeatherizedGas Furnace Stainless SteelHeatExchangerCostOption: Setto "Low". To change this value use the drop-down arrow and select the desired cost option (Low or High). g. Gas Boiler Draft Inducer Cost Option: Set to "Low". To change this value use the drop-down arrow and select the desired cost option (Low or High). 4. To run the Crystal Ball simulation, click the "run" button (you must re-run after changing the parameters). The spreadsheet will thenbe minimized. You can monitor the progress of the simulation by watching the count of iterations at the left bottom comer. When the simulation is finished, a sheet named Simulation Results will appear with the results.

N-5REFERENCES U.S. Department of Energy - Energy Information Administration, Residential Energy Consumption Survey (RECS): Household Energy Consumption and Expenditures 2001, 2001. (Last accessed May 18, 2005.) <http://www.eia.doe.gov/emeu/recs/rees2001/publicuse200I.html> 2. U.S. Department of Energy - Energy Information Administration, Annual Energy Outlook 2007: With Projections Through 2030, February, 2007. Washington, DC. Report No. DOE/EIA-0383(2007). <http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2007).pdf> 

### REFERENCES 1. U.S. Department ofEnergy

- Energy Information Administration, ResidentialEnergy Consumption Survey (RECS): HouseholdEnergy Consumption andExpenditures 2001, 2001. (Last accessed May 18, 2005.) <http://www.eia.doe.gov/emeu/recs/recs2001/publicuse2001.html> 2. U.S. Department ofEnergy

- Energy Information Administration,AnnualEnergy Outlook 2007: With Projections Through 2030, February, 2007. Washington, DC. Report No. DOE/EIA-0383(2007). <http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2007).pdf>

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