From: Jerry Hodge [mailto:jhodge@howard-ind.com]

Sent: Wednesday, December 14, 2011 10:20 AM

To: Richard Parker; Alex Hofmann; Andrew Delaski; Ar is Marantan; Art Rosenfeld; Bob Saint; Bob Smith; Brenda Edwards; Brian Coffey; Caitlin Johnson; Carl os Gaytan; Caskey, John; Charlie Drexler; Charlie
Stevens; Chris Bolduc; Chris Brown; Clark Silcox; Cr eevy, Jim; Dan Cohen; Daniel Young; David Flaten; Emily Marchetti; Eric Peterson; Freeman, Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist;
Hirsch, Bruce R; James Lass; Jennifer Tiedeman; Jerr y Corkran; Jerry Schoen; Jim Raba; Joanna Mauer; John Cymbalsky; John Rossetti; Ka tie Coughlin; Ken Winder; Mahesh P. Sampat; Matthew Nardotti; Maxine Savitz; Meg Waltner; Meyers, Aaron; Michae l Hyland; Michael Rivest; Millure, Dave; Pamela Costello; Phil Harter; Phil Hopkinson; Polinski, Ra ymond; Puesh Kumar; Rick Anderson; Rob Greeson; Robert Berman; Robert van Buskirk; Robin Roy; Ry an, Paul; Scott Beck; Simmons, Chuck; Steve Nadel;
Steve Rosenstock; Ted Johnstone; Thomas Petrosino; Tim Ballo; Tom Eckman; Wes Patterson; Zhimei

Luo Subject: RE: Today's Conference Call on Medium-Voltage Transformers

Richard and All:

With regard to the liquid immersed transform ers, it is my hope that we can keep the committee alive and try to reach some realisti c compromise that we can all live with. We should work hard at keeping all of the core iron producers in the game; they are critical to maintaining stabilit y in this important market.

On January one of 2010, just two years ago, we started a major program to increase the liquid-immersed distribution transformer efficien cy substantially. I think this go around, should just be a tweaking of those original effi ciency values. I think EL-1 should be the point we should start with and compromise somewhere between that and EL-1.5. We should have a level for 95 KV BIL & below, another level for 125 KV BIL and leave the 150 & 200 KV BIL as they exist now.

These are my suggestions.

Jerry

Jerry Hodge Consulting Engineer, E.E., M.S., P.E.
Retired V.P. & G.M. of Pole Type Transformer & Regulator Div.

Howard Industries Inc.
P.O.Box 1588 Laurel, Ms, 39440

601 422-1539 Bus.
484 226-6190 Cell

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From: Richard Parker [ mailto:richardparkerdc@gmail.com ]

Sent: Wednesday, December 14, 2011 7:06 AM

To: Alex Hofmann; Andrew Delaski; Aris Marantan; Art Rosenfeld; Bob Saint; Bob Smith; Brenda Edwards; Brian Coffey; Caitlin Johnson; Carlos Gayt an; Caskey, John; Charlie Drexler; Charlie Stevens; Chris Bolduc; Chris Brown; Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; David Flaten; Emily Marchetti; Eric Peterson; Freeman, Jeremiah; Gary Fe rnstrom; Greg Coulter; Greg Rosenquist; Hirsch, Bruce R; James Lass; Jennifer Tiedeman; Jerry Cork ran; Jerry Hodge; Jerry Schoen; Jim Raba; Joanna Mauer; John Cymbalsky; John Rossetti; Katie Coug hlin; Ken Winder; Mahesh P. Sampat; Matthew Nardotti; Maxine Savitz; Meg Waltner; Meyers, Aaron; Michael Hyland; Michael Rivest; Millure, Dave; Pam Costello; Phil Harter; Phil Hopkinson; Polinski, Ra ymond; Puesh Kumar; Richard W. Parker; Rick
Anderson; Rob Greeson; Robert Berman; Robert va n Buskirk; Robin Roy; Ryan, Paul; Scott Beck;
Simmons, Chuck; Steve Nadel; Steve Rosenstock; Ted Johnstone; Thomas Petrosino; Tim Ballo; Tom
Eckman; Wes Patterson; Zhimei Luo Subject: Today's Conference Call on Medium-Voltage Transformers

Dear Colleagues,

As you know, today's conference call is the last scheduled event of our negotiated rulemaking process on medium-voltage transformers. It is scheduled to run from 11 am to 1 pm, though we

will end sooner if we finish our business sooner.

I propose that we use th e time to do two things:

1) See if we can get to yes on an EL to recommend for DL 12, th ereby creating a clear foundation an agreement on MVDT.

I propose to focus on DL 12 because DLs 9, 10, and 11 are very small in sales (about 5 % of the market combined). E.g., 135 DL 11 units shi pped in in 2009, whereas 1936 DL 12 units were

sold.

Also, these other DLs should scale off of DL 12 , except for the low kVA portion (< 300 KvA) of

DL 11 which is even smaller. DL 13 is a high-BIL version of DL 12 (and the upper end of DL11) and also can be treated as variant of DL12. Adjustment factors for DLs 9, 10, 11 and 13 have been proposed by NEMA, but I would suggest that these can be treated separately as part of a technical exercise, that we can discuss if we can get to yes on the big issue, which is DL 12

2) Discuss next steps, if any, for th is group on liquid-filled transformers.

Attached for your review is a chart containi ng the key LCC information for DL 12, with 2010 price results and 2011 price results displayed side-by-side for ease of reference. Also attached are the full LBL and Engineeri ng Analysis results for both 2 010 prices and 2011 prices. 2011 prices are what were are focusi ng on, but 2010 prices offers a useful reference (sensitivity if you will).

I look forward to talking with you at 11. This wi ll be a time for bottom lines. We know the

arguments.Best,

Richard Parker

Facilitator