May 7, 1999

Mr. TimothyJ. Shellenberger Vice President, ProductEngineering American WaterHeater Company 1100 E. Fairview Ave., P.O. Box 1378 Johnson City, TN 37602-1378

DearMr. Shellenberger:
TheDepartment ofEnergy (DOE) has determined that it needs additional information from manufacturers in order todetermine the appropriate energy conservation standard for electric water heaters. At the November 1998 workshop, several stakeholders asked why theDOE calculated energy factor for electric water heaters with 2.5" ofinsulation and heattraps did not meet or exceed the 0.93 energy factor ofsimilar models listed inthe GAMA directory. Using the WATSIM model, DOE's highest energy factor is 0.91 for an electric water heater with 2.5" insulation with heat traps and insulated tank bottom. It is important that DOE staffresolve whether this difference is systemic sothat we can determine the correct energy factors fortrial standards levels. This iscritical information for setting the standard.
Based upon ourcurrent analysis we believe the WATISM results are correct. With further data from manufacturers, we will be able to either verify our results or determine that another result is required.

In order to assist DOE, we request thatyou provide the test data you used to certify the energy factors for high efficiency electric water heaters to DOE. For each ofthe electric water heater modelslisted in Attachment A, please provide the following: (1)date ofthe measurements, (2) the model number, (3)tank identification, (4) theenergy factor for each tank measured, (5) the average energy factor for each model, and (6) the current GAMA directory listing for each model tested.

DOE is committed to setting the new water heater standards based on achievable results. We request your cooperation so wecan meet this objective. Section 326(d) ofthe Energy Policy and Conservation Act (EPCA), 42 U.S.C. 6296(d), as amended, givesDOE the authority to request information orreports with respect to energy efficiency and energy use from manufacturers ofa covered product that it determinesisnecessary for establishing energy conservation standards. Section 329(a) ofEPCA,
as amended, 42 U.S.C. 6299(a), givesthe Secretary subpoena authority forthe production ofrelevant books, records, papers and other documents. We prefer to work cooperatively withyou instead ofusing our subpoena authority.

Thank youfor your prompt attention tothis matter. Please send this data within 30 days ofreceipt ofthis letter. Ifyou have any questions, please call Terry Logee at (202) 586-1689. Sincerely,

Mark Ginsberg Deputy Assistant Secretary Building Technology, State and Community Programs Energy Efficiency and Renewable Energy

AttachmentDuplicate Letters Sent to:

Mr. Eric M. Lannes Vice president, Engineering Bradford White Corporation 200Lafayette Street Middleville, MI 49333-0247

Mr. William T. Harrigill Vice President, Product Development and Research Engineering Rheem Manufacturing Company 101 Bell Road Montgomery, AL 36117

Mr. Otto Z. Vago Chief, Product Engineer State Industries, Inc. 500 By Pass Road Ashland City, TN 37015-1299

Mr. Wilbur L. Haag, Jr. Manager, Certification & Standards A.O.SmithCorporation U.S. Highway I North, P.O. Box 600 McBee, SC 29101