From: Simmons, Chuck [mailto:C huck.Simmons@pgnmail.com]

Sent: Tuesday, November 29, 2011 8:13 AM

To: 'Corkran, Jerry L'; 'Richard Parker'; 'Alex Hofmann' ; 'Andrew Delaski'; Aris Marantan; 'Art Rosenfeld';

'Bob Saint'; 'Bob Smith'; Brian Coffey; Caitlin Johnson; 'Carlos Gaytan'; 'Caskey, John'; 'charlie drexler';

'Charlie Stevens'; 'Chris Bolduc'; 'Chris Brown'; 'Clark Silcox'; 'Creevy, Jim'; 'Dan Cohen'; 'Daniel Young';

'David Flaten'; 'Eric Peterson'; 'Freeman, Jeremiah'; 'Gary Fernstrom'; 'Greg Coulter'; 'Greg Rosenquist';

'Hirsch, Bruce R'; 'James Lass'; 'Jennifer Tiedeman'; 'Jerry Hodge'; 'Jerry Scho en'; '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';

'Phil Harter'; 'Phil Hopkinson'; 'Polinski, Raymond'; 'P uesh Kumar'; 'Rick Anderson'; 'Rob Greeson'; 'Robert

Berman'; 'Robert van Buskirk'; 'Robin Roy'; 'Ryan, Paul'; 'Scott Beck'; 'Steve Nadel'; 'Steve Rosenstock';

'Thomas Petrosino'; 'Tim Ballo'; 'Tom Eckman'; 'Wes Patterson'; Zhimei Luo; 'Trujillo, Antonio'; 'Meyers,

Aaron'; 'Marusinec, Richard M'; 'Phil Hopkinson'

Subject: RE: IEEE DOE material for Wednesday and Thursday MVLF meeting

Phil:

I agree with your assessment of the DOE’s analysis and, pending no different information being provided

at the meetings this week, feel that the committ ee needs to move forward with a recommendation that

maintains an “even playing field” for both grai n oriented electrical and amorphous core steels by

maintaining the current efficiency requirements or, at most, considering some incremental move between

EL0 and EL1 (as proposed previously by Steve Rosenstock) for only the Design Lines where there is

opportunity to do so without shutting the door complete ly on M3 grade core steel (or any other readily

available grain oriented electrical core steel).

Regards,

Chuck Simmons, P.E.

Distribution Standards

Progress Energy

Voice Net: 745-6033

Bell: 919-662-6033

From: Corkran, Jerry L [ mailto:Jerry.Corkran@CooperIndustries.com ]

Sent: Monday, November 28, 2011 5:56 PM

To: Richard Parker; Alex Hofmann; Andrew Delaski; Ar is Marantan; Art Rosenfeld; Bob Saint; Bob Smith;

Brian Coffey; Caitlin Johnson; Carlos Gaytan; Caskey, Jo hn; charlie drexler; Charlie Stevens; Chris Bolduc;

Chris Brown; Clark Silcox; Creevy, Jim; Dan Cohen; Daniel Young; David Flaten; Eric Peterson; Freeman,

Jeremiah; Gary Fernstrom; Greg Coulter; Greg Rosenquist; Hirsch, Bruce R; James Lass; Jennifer

Tiedeman; Jerry Hodge; Jerry Schoen; Jim Raba; Joan na Mauer; John Cymbalsky; John Rossetti; Katie

Coughlin; Ken Winder; Mahesh P. Sampat; Matthew Nardotti; Maxine Savitz; Meg Waltner; Meyers,

Aaron; Michael Hyland; Michael Rivest; Millure, Dave ; Phil Harter; Phil Hopkinson; Polinski, Raymond;

Puesh Kumar; Rick Anderson; Rob Greeson; Robert Be rman; Robert van Buskirk; Robin Roy; Ryan, Paul;

Scott Beck; Simmons, Chuck; Steve Nadel; Steve Rosenstock; Thomas Petrosino; Tim Ballo; Tom

Eckman; Wes Patterson; Zhimei Luo; Trujillo, Antonio; Meyers, Aaron; Marusinec, Richard M; Phil

Hopkinson

Subject: IEEE DOE material for Wednesday and Thursday MVLF meeting

Mr. Parker and the DOE working group: the memo listed below and the related attachments explain the

logic behind our analysis of the various proposed efficiency levels proposed by the DOE.

Regards,

Jerry CorkranFrom: Phil Hopkinson [ mailto:phopkinson@hvolt.com ]

Sent: Monday, November 28, 2011 4:29 PM

To: Corkran, Jerry L; Meyers, Aaron; Trujillo, Antonio; Rob Greeson ( rgreeson@electro-mechanical.com );

Robert Smith ( bob.smith@electro-mechanical.com ); Raymond Polinski

( Raymond.Polinski@ATImetals.com ); Jerry Schoen ( jerry.schoen@aksteel.com );

Eric.Petersen@aksteel.com ; Brian Coffey; Rosenstock, Steven

Cc: Gaytan Cavazos, Carlos (G E Infra, Energy, Non-GE); greg.coulter405@gmail.com ; Caskey, John;

sco_choinski@nema.org ; Patterson, Wesley

Subject: FW: IEEE DOE material for Tuesday afternoon meeting

Good afternoon all:

This material from Carlos and Greg is particularly useful in telling the story that needs to be told. We

could take any one of the design lines to tell the story. It is my understanding that Carlos and Greg have

used the OPS data to plot the curves. Th at is fine since we are talking slope of the curve.

Suppose we were to take the Design Line 1 plot on page 4. Here the various core material options are

separated so that we can see how far anyone of them can go. If we keep the efficiency to EL1 or below

then M3 can compe te. However if we go to EL2 then M3 is out of the picture and we get a 100%

conversion to amorphous. Hence, the only way to determine an economical base for M3 is to find the

efficiency where the transformer selling price with M3 is at or belo w that for amorphous. For this

example it would seem that this point occurs at EL1. At that point, both amorphous and M3 would

seem to be equally attractive and the market share for each type of material would potentially be evenly

divided.

This same story could be told for anyone of th e design line option in their presentation.

I have also attached my report, wherein I calculate the $/watt cost to move from one level of efficiency

to the next. If we are to find a level of efficiency in which M3 can compete then it must satisfy two

relationships:

1. The transformer selling price of the M3 design can not be higher than the amorphous selling

price at that same efficiency.

2. The S/watt cost to the end user of the transformer cannot exceed the value per watt saved.

In my report, I show:

1. The Value of a watt saved as $6.71 for the US Util ities.

2. The cost to the end user to go from EL0 to EL1 as $20/watt saved.

I have also attached a report written by Jerry Corkran and I where we show efficiency vs. loading for M3

vs. amorphous when both are design ed to meet the same efficiency at 50% load.

The combined findings from my report, that from Carlos and Greg, and the M3 vs amorphous report is

the following:

1. There is no economic justification to go from EL0 to EL1 because the cost or $20/watt exceeds

the value of $ 6.71/watt.2. M3 actually crosses the $6.71 / watt value point at a around efficiency level 0.2, well below EL1.

3. Amorphous transformers have a flatter cost curve than M3 but the efficiency must exceed that

for EL1 in order to get to that plateau.

4. The efficiency where amorphous and M3 have abo ut the same cost to the end customer is EL1,

where at 50% load they have the same efficiency and the same cost.

5. Unless there are other economic factors to consider we have to conclude that the DOE did a

very excellent job in setting the current mandatory standard and there is not an ything apparent

that calls for changes.

This is the story that I believe we need to tell. I could send this to the entire DOE team or make up a

couple of power point slides to emphasize depending on how we get to submit it.

By copy to all, your thou ghts?

Phil

Philip J Hopkinson, PE

President & CEO HVOLT Inc.

3704 High Ridge Rd.

Charlotte, NC 28270

phopkinson@hvolt.com

Ph 704-846-3290

Fx 704-845-2520

Cell 704-236-3320

www.hvolt.com

From: Gaytan Cavazos, Carlos (GE Energy, Non-GE) [ mailto:Carlos.Gaytan@ge.com ]

Sent: Tuesday, November 01, 2011 3:48 PM

To: Phil Hopkinson

Subject: RE: IEEE DOE material for Tuesday afternoon meeting

Phil,

I just noted that the file I sent you has one small formatting issue on the scatter plot with all the DOE

design points, and I just fixed it on this revised file, in case you are planning to post this on the website.

The issue was related with the box show ing all the material combinations, which did not show

amorphous unintendedly.

Thanks

Carlos

From: Phil Hopkinson [mailto:phopkinson@hvolt.com]

Sent: Friday, October 28, 2011 10:59 AM

To: Gaytan Cavazos, Carlos (GE En ergy, Non-GE); Greg Coulter; invitations@linkedin.com ;

sjmcnelly@ieee.org ; brian.coffey@navigant.com ; Caskey, John; Jerry.Corkran@CooperIndustries.com ;

Meyers, Aaron; Creevy, Jim; jim.raba@ee.doe.gov ; Eric.Petersen@aksteel.com ;

jerry.schoen@aksteel.com ; Raymond.Polinski@ATImetals.com ; Chuckj@ieee.org

Cc: sco_choinski@nema.org

Subject: RE: IEEE DOE material for Tuesday afternoon meetingMany thanks Carlos:

I will do it. Have a good trip to Boston.

Phil

Philip J Hopkinson, PE

President & CEO HVOLT Inc.

3704 High Ridge Rd.

Charlotte, NC 28270

phopkinson@hvolt.com

Ph 704-846-3290

Fx 704-845-2520

Cell 704-236-3320

www.hvolt.com

From: Gaytan Cavazos, Carl os (GE Energy, Non-GE) [mailto:Carlos.Gaytan@ge.com]

Sent: Friday, October 28, 2011 11:43 AM

To: Phil Hopkinson; Greg Coulter; invitations@linkedin.com ; sjmcnelly@ieee.org ;

brian.coffey@navigant.com ; Caskey, John; Jerry.Corkran@CooperIndustries.com ; Meyers, Aaron; Creevy,

Jim; jim.raba@ee.doe.gov ; Eric.Petersen@aksteel.com ; jerry.schoen@aksteel.com ;

Raymond.Polinski@ATImetals.com ; Chuckj@ieee.org

Cc: sco_choinski@nema.org

Subject: RE: IEEE DOE material for Tuesday afternoon meeting

Phil,

We are in agreement with posting our report on the website.

As you indicated on your message, I would also like to have the opportunity on this meeting to present a

few slides containing an extract of our report, that provides an explanation of why we believe this

simplified cost/efficiency charts approach is rec ommended. I believe this will be beneficial for the

people in attendance for a clear understanding of the points we intended to make in our report.

I am planning to bring the charts with me so that you can have them in your computer for this meeting.

Thanks

Carlos

From: Phil Hopkinson [mailto:phopkinson@hvolt.com]

Sent: Thursday, October 27, 2011 2:56 PM

To: Gaytan Cavazos, Carlos (GE Ener gy, Non-GE); Greg Coulter; Gaytan Cavazos, Carlos (GE Energy,

Non-GE); Steve Shull (LinkedIn Invitations) ( invitations@linkedin.com ); Sue Mcnelly

( sjmcnelly@ieee.org ); Brian Coffey ( brian.coffey@navigant.com ); Caskey, John;

Jerry.Corkran@CooperIndustries.com ; Meyers, Aaron; Creevy, Jim; Jim Raba ( jim.raba@ee.doe.gov );

Eric.Petersen@aksteel.com ; Jerry Schoen ( jerry.schoen@aksteel.com ); Raymond Polinski

( Raymond.Polinski@ATImetals.com ); Chuck Johnson ( Chuckj@ieee.org )

Cc: sco_choinski@nema.org

Subject: IEEE DOE material for Tuesday afternoon meetingGood afternoon all:

Attached, you will find the material that I plan to present at my Tuesday afternoon meeting on DOE

Energy Efficiency. Brian Coffey will be at this meeting and I would like people to meet him and allow

him the opportunity to stand up and talk about the negotiating process. Her e are my requests:

1. By copy to Sue McNelly, please post at my site within the Distribution Transformers

Subcommittee website under the DOE Energy Efficiency taskforce.

2. By copy to Brian Coffey, you are certainly welcome to present any materials that you may wish

to discuss or ju st be there to be introduced and to take questions from the floor. Matt Hartley

did that at the last meeting and the group enjoyed meeting him and asking him questions.

3. By copy to Carlos Gaytan and Greg Coulter, you have a good report that shows transformer cost

as a function of steel grad es. I have a copy and believe that it is quite good and if you are willing

I would have Sue post it. Please let me know.

4. By copy to Wes Patterson, you have several good reports that show transformer selling prices

versus efficiency levels. You also addre ss BIL levels. You had not finished breaking out M3

designs when we were at the last meeting but I suspect it is now available. Please let me know

of anything that you would be comfortable to post and I will send it in.

5. By copy to Eric Petersen and Jerry Schoe n, you had a very good treatment of the Global

magnetic steel market that is a great education tool for the industry if you are comfortable to

have it displayed. Please let me know if you wish to have it posted.

I anticipate that the bulk of this meeti ng will be spent discussing the negotiation process and there will

not be too much time for presentations but a few key slides may be useful if any of you want to use

them.

For those who are attending the meeting, I look forward to seeing you in Boston.

Safe travels.

Phil

Philip J Hopkinson, PE

President & CEO HVOLT Inc.

3704 High Ridge Rd.

Charlotte, NC 28270

phopkinson@hvolt.com

Ph 704-846-3290

Fx 704-845-2520

Cell 704-236-3320

www.hvolt.com