6-i 

### CHAPTER 6 EQUIPMENT PRICE DETERMINATION

TABLE OF CONTENTS

6.1 INTRODUCTION ........................................................................................................... 6 -1

6.2 METHODOLOGY .......................................................................................................... 6 -1

6.3 RESULTS ........................................................................................................................ 6 -2

LIST OF TABLES

Table 6.3.1 End-User Lamp Prices .............................................................................................. 6-26-1 

### CHAPTER 6 EQUIPMENT PRICE DETERMINATION

6.1 INTRODUCTION

This chapter describes the methodology the U.S. Department of Energy (DOE) followed

in developing end-user prices for the high-intensity discharge (HID) lamps considered in this

rule making. In energy conservation standards rulemakings, DOE often develops cost-efficiency

relationships in the engineering analysis (chapter 5 of the interim TSD). Then, DOE applies

mar kups to derive end-user prices. For this rulemaking, DOE derived candidate standard levels

(CSLs) in the engineering analysis (chapter 5 of the interim TSD) and prices in the equipment

pr ice determination (this chapter 6 of the interim TSD). The equipment price determination

de velops end-user prices directly for lamps because reverse-engineering a lamp is impractical.

The lamps are not easily disassembled, and fill gas composition and partial pressures are difficult

to assess. By combining the results of the engineering analysis and the equipment price

determination, DOE derived typical inputs for use in the life-cycle cost (LCC; chapter 9 of the

interim TSD) analysis and the national impact analysis (NIA; chapter 11 of the interim TSD).

Because DOE recognizes that customers may be required to purchase a new ballast and

fixture to accommodate higher efficacy HID lamps, DOE also developed prices for HID ballasts

and fixtures. Appendix 6A of the interim TSD describes the methodology used to derive the

manufacturer selling prices (MSPs) for the representative HID ballasts and fixtures that are

c onsidered in the engineering analysis.

6.2 METHODOLOGY

In its review of publicly-available prices, DOE observed a range of end-user prices paid

for a lamp, depending on the distribution channel through which the lamp is purchased. In line

with its observation of public pricing, DOE developed three different end-user prices to

characterize the range of prices available in the three main distribution channels: state

pr ocurement, large electrical distributors, and Internet retailers. DOE first collect ed manufacturer

suggested price lists (hereafter referred to as “blue-books ”) . Starting with a consistent set of

aggregated blue-book prices, DOE calculated an average discount ratio for each end-user. State

procurement contracts typically offered the greatest discounts off of blue-book prices,

approximately 89 percent off of the blue-book. These contracts represent large purchases and

therefore reflect steep discounts. Customer prices were generally higher at electrical supply

distributors (with a discount of approximately 62 percent), which represent typical prices for

commercial institutions. Prices were the highest at Internet retailers (with a discount of

approximately 58 percent) because customers typically purchase from Internet retailers in small

volumes. DOE applied these discounts to the aggregated blue-book prices of lamps at each

candidate standard level. a 

### DOE found that the discount did not vary with wattage or lamp

technology, and therefore applied a single discount for all lamps to estimate end-user prices.

After generating end-user prices, DOE added sales tax and installation costs, where appropriate,

to derive the total, installed end-user cost for the LCC analysis (chapter 9 of the interim TSD ).

a DOE did not observe any trends between the discount factors and lamp efficacy, wattage, or technology.6-2



### For the representative lamps for which blue-book prices were unavailable, DOE

extrapolated pricing from lamps whose blue-book prices were available. This was done by using

the blue-book prices of similar lamps from an alternative manufacturer or by interpolating

be tween blue-book prices of lamps with different wattages within the same lamp family.

Because the lamps used to represent CSL 1 for the representative equipment class defined

by correlated color temperature (C CT ) ≥1900 Kelvin (K) and ≤2800 K we re not commercially

a vailable, DOE used an alternative method to calculate end-user prices. To calculate the price for

these lamps, DOE gathered data associated with the incremental cost of replacing an arc tube

made of ceramic material with an arc tube constructed of a higher-efficacy material. b 

### DOE

estimated that the higher efficacy arc tube would cost five times more than a standard arc tube,

leading to the lamp cost being triple that of the baseline lamp (based on the assumption that an

a rc tube represents 50 percent of a lamp’s total cost). This incremental cost ratio was applied to

each of the baseline end-user prices to derive the CSL 1 end-user prices for this representative

equipment class

. See chapter 5 of the interim TSD for further detail on these modeled lamps.

6.3 RESULTS

Table 6.3

. 1 below summarizes the low, medium, and high end-user prices for HID lamps.

Prices for the representative HID ballasts and fixtures are presented in Appendix 6A.

T able 6.3. 1 End-User Lamp Prices

Lamp Characteristics Lamp End

- User Prices (2011$)

CCT CSL Lamp Type Wattage Low Medium High

≥1900 K and

≤2800 K Baseline HPS 70 $ 9.29 $ 32.08 $ 35.82

CSL 1 Modeled HPS 67 $ 27.86 $ 96.25 $ 107.47

Baseline HPS 100 $ 13.19 $ 45.56 $ 50.87

CSL 1 Modeled HPS 96 $ 39.56 $ 136.67 $ 152.61

Baseline HPS 250 $ 13.11 $ 45.28 $ 50.56

CSL 1 Modeled HPS 240 $ 39.32 $ 135.83 $ 151.67

Baseline HPS 400 $ 13.47 $ 46.52 $ 51.95

CSL 1 Modeled HPS 383 $ 40.40 $ 139.57 $ 155.84

Baseline HPS 1000 $ 32.72 $ 113.03 $ 126.21

CSL 1 Modeled HPS 958 $ 98.16 $ 339.08 $ 378.62

>2800 K and

≤4500 K Baseline MV 100 $ 8.32 $ 28.73 $ 32.08

CSL 1 N/A

-- -- -- --

Baseline MH/CSL 2 Pulse MH 70 $ 9.20 $ 31.80 $ 35.50

CSL 3 CMH 50 $ 9.96 $ 34.41 $ 38.43

Baseline MV 175 $ 5.21 $ 18.00 $ 20.10

CSL 1 N/A

-- -- -- --

Baseline MH/CSL 2 Pulse MH 100 $ 10.80 $ 37.31 $ 41.66

CSL 3 CMH 70 $ 23.34 $ 80.62 $ 90.02

Baseline MV 250 $ 9.32 $ 32.21 $ 35.96

Baseline MH/ CSL 1 Probe MH 175 $ 9.83 $ 33.97 $ 37.93

b As discussed in chapter 5 of the interim TSD, DOE used commercially available HPS lamps to represent the

baselines in the ≥1900 K and ≤2800 K, ≥50 W and ≤1000 W, clear, enclosed-rated representative equipment class.

DOE modeled the potential efficacy gains of an HPS lamp that uses a sapphire arc tube material rather than the

standard polycrystalline alumina (PCA) material.6-3 Lamp Characteristics Lamp End

- User Prices (2011$)

CCT CSL Lamp Type Wattage Low Medium High

CSL 2 Pulse MH 150 $ 11.95 $ 41.28 $ 46.09

CSL 3 CMH 100 $ 20.09 $ 69.40 $ 77.49

Baseline MV 400 $ 8.81 $ 30.43 $ 33.98

Baseline MH/ CSL 1 Probe MH 250 $ 10.03 $ 34.64 $ 38.68

CSL 2 Pulse MH 200 $ 15.97 $ 55.18 $ 61.61

CSL 3 CMH 150 $ 22.16 $ 76.54 $ 85.47

Baseline N/A

-- -- -- --

Baseline/CSL 1 Probe MH 400 $ 13.48 $ 46.55 $ 51.98

CSL 2 Pulse MH 320 $ 17.65 $ 60.98 $ 68.09

CSL 3 CMH 250 $ 27.30 $ 94.32 $ 105.32

Baseline MV 1000 $ 19.98 $ 69.02 $ 77.07

CSL1 N/A

-- -- -- --

CSL2 Pulse MH 750 $ 31.68 $ 109.42 $ 122.19

Baseline N/A

-- -- -- --

Baseline/CSL 1 Probe MH 1000 $ 27.07 $ 93.52 $ 104.43

CSL 2 Pulse MH 875 $ 36.68 $ 126.69 $ 141.47

Baseline Probe MH 2000 $ 42.52 $ 146.88 $ 164.01

CSL 1 Probe MH 1500 $ 32.26 $ 111.45 $ 124.45