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

 EE-RM/STD-01-350 COMMENT 164

APPENDIX N. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS 

SPREADSHEET 

TABLE OF CONTENTS 

N.I USER INSTRUCTIONS ............................................... N-I 

N.I.I Startup ....................................................... N-I 

N.1.2 Description of Life-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-i 
APPENDIX 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 the

product 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

 EE-RM/STD-01-350 COMMENT 164

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 

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 the 

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 a e bi NIl .. L' IS t 0 fLCC S ;prea d h S ee t 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). 

Low Income and Senior Only Subgroup Analysis 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 ). - -

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. II). 

LCC_NWGF_GT6000HDD.xls Generates LCC north regional subgroup results (HDD6000) (Ch. 11). 

LCC NWGF L T6000HDD.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-l 
To 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

 EE-RM/STD-01-350 COMMENT 164

To 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". 

N.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 

Summary 

Equipment Price 

Markups 

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. 

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 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 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.) 

The Markups sheet contains distributions of (i) manufacturer markup, (ii) 

wholesaler markup, (iii) contractor markup, (iv) builder markup for new 

N-2 
homes, 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

 EE-RM/STD-01-350 COMMENT 164

Energy Use 

Electricity 

Use 

Fan Curves 

AFUEexisting 

Lookup 

InputCapacity 

Lookup 

AirFlow Lookup 

homes, 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. 

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 LCe. 

The Electricity Use calculates the electricity use of the air handler. For the 

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. 

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. 

The AFUEexisting Lookup determines the efficiency of the existing 

equipment in the household at the time of Residential Energy Consumption 

Survey (RECS) 2001 survey.l DOE located the AFUE from tables of the age 

ofthe heating equipment and the Heating-Degree-Day (HDD) ofthe weather 

for the house. The Department assumed the AFUE of the 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 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. 

The AirFlow Lookup determines the size of the air handler (or maximum air 

flow) ofthe 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 
Generic 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.

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 EE-RM/STD-01-350 COMMENT 164

Generic Model 

Lookup 

HDD Dist 

by Division 

RECS HHData 

AFUE Baseline 

Lookup 

Installation Cost 

Maintenance Cost 

Energy Price 

Trends 

Discount Rate 

Lifetime 

Labels 

The Generic Model Lookup maps the input capacity and air handler size to 

one of the predefined set of generic models. 

The HDD Dist by Division looks up the rank of the HDD of the climate of 

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. 

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. 

The AFUE Baseline Lookup determines the AFUE of the baseline unit which 

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. 

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. 

The Labels contains labels and variables that are used for the user interface 

in the Summary sheet. 

N-4 
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 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.

 EE-RM/STD-01-350 COMMENT 164

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 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 comer. When the 

simulation is finished, a sheet named Simulation Results will appear with the results. 

N-5 
REFERENCES

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>

 EE-RM/STD-01-350 COMMENT 164

REFERENCES 

1. 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/recs2001/publicuse2001.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> 

N-6