APPENDIX 8-H. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET TABLE OF CONTENTS 8-H.1 USER INSTRUCTIONS .......................................................................................8-H-1 8-H.2 STARTUP..............................................................................................................8-H-1 8-H.3 DESCRIPTION OF LIFE-CYCLE COST WORKSHEETS ................................8-H-1 8-H.4 BASIC INSTRUCTIONS FOR OPERATING THE LIFE-CYCLE COST SPREADSHEETS..................................................................................................8-H-3 LIST OF TABLES Table 8-H.2.1 List of LCC Spreadsheets ..........................................................................8-H-1

8-H-iAPPENDIX 8-H. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET 8-H.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 Heating Products Rulemaking page: http://www.eere.energy.gov/buildings/appliance_standards/. From that page, follow the links to the ANOPR phase and then to the Analytical Tools. 8-H.2 STARTUP DOE named the spreadsheets for the product class and subgroup analysis if applicable. The spreadsheets enable users to perform Life-Cycle Cost (LCC) analyses of each product class. A separate spreadsheet exists for each of the product classes. Table 8-H.2.1 lists all LCC spreadsheets used in this analysis. Table 8-H.2.1 List of LCC Spreadsheets Filename Description LCC_WH_Gas(Storage).xls Gas-fired Storage Water Heater LCC_WH_Elec.xls Electric Water Heater LCC_WH_Oil.xls Oil-fired Water Heater LCC_WH_Gas(Tankless).xls Gas Instantaneous Water Heater LCC_PH.xls Pool Heater LCC_DHE_GWF.xls Gas Wall Fan DHE LCC_DHE_GWG.xls Gas Wall Gravity DHE LCC_DHE_GF.xls Gas Floor DHE LCC_DHE_GR.xls Gas Room DHE To examine the spreadsheets, DOE assumes that the user has access to a personal computer (PC) with a hardware configuration capable of running Windows NT/2000/XP. The heating products LCC spreadsheets require Microsoft Excel 2000 or later installed under the Windows operating system. Because certain variables inside the spreadsheets are defined asdistributions; the user’s computer requires a copy of Crystal Ball (a commercially available addin program). 8-H.3 DESCRIPTION OF LIFE-CYCLE COST WORKSHEETS For each of the nine product classes, DOE 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:

8-H-1Summary The Summary sheet contains a user interface to manipulate the Energy Price Trend and the Start Year and to run a Crystal Ball simulation. It also contains the LCC and Payback Period simulation results for each design option of the product class. Statistics The Statistics sheet contains the retail price, installation cost, total installed price, annual gas use, annual electricity use, burner operatinghours (steady state for single-stage or high-fire for two-stage and stepmodulation), burning operating hours (low-fire for two-stage and stepmodulation), household characteristics, annual maintenance cost, annual repair cost, and annual fuel cost results for each design option of the product class. LCC&PB Calcs The LCC&PB Calcs sheet shows results of LCC calculations for different efficiency levels for a single Residential Energy Consumption Survey (RECS) household only.1 During a Crystal Ball simulation, the spreadsheet records the LCC and payback periods for every sampled household. Equip Price The Equip Price sheet calculates retail price values used as inputs in the LCC calculations in the Summary sheet. DOE 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 to calculate the final retail prices. DOE calculated the markups differently for replacement units and new units. Energy Use The Energy Use sheet calculates annual energy use by fuel type – electricity, gas or oil depending on the product class. The annual energy use calculations for each design option are inputs to the LCC&PB Calcs sheet to calculate the annual operating cost of the LCC. RECS HH Data TheRECS HH Data sheet contains the RECS 2001 household data for each product class. It includes information of the characteristics of each household in the RECS database. During a Crystal Ball simulation, DOE uses these household characteristics to determine the location of the water heater, the operating temperatures, house heating load, annual gas or oil use, size of the house, age of the house, and the age of the existing heating products. Base Case EF The Base Case EF sheet determines the efficiency of the base case unit. Installation Cost The Installation Cost sheet 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. Maintenance and TheMaintenance and Repair Cost sheet provides the maintenance and 8-H-2Repair Cost repair cost for each design option. It is an input to the Summary sheet to be part of the operating costs of the design options. Energy Price The Energy Price Trends sheet provides the price trends of the different Trends heating fuels; these trends represent the growth rate of energy prices relative to the energy prices in 2001. DOE took energy price data and 2 forecasts from the EIA's Annual Energy Outlook 2008 for the period until 2030; and then extrapolated beyond 2030. Discount Rate The Discount Rate sheet contains the distributions of discount rates for replacement and new units. Lifetime The Lifetime sheet contains the distribution of lifetimes for equipment of that product class.
Labels The Labels sheet contains labels and variables that are used for the user interface in the Summary sheet. 8-H.4	 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 on the Summary sheet. There are three drop-down boxes and one command button. The default parameters are: a. Energy Price Trend: Set to “AEO 2008 - 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). 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, the sheet named Summary will reappear with the results. 8-H-3REFERENCES 1. U.S. Department of Energy - Energy Information Administration, Residential Energy Consumption Survey: 2001 Public Use Data Files, 2001. <http://www.eia.doe.gov/emeu/recs/recs2001/publicuse2001.html> 2. U.S. Department of Energy - Energy Information Administration,Annual Energy Outlook 2008 (Revised Early Release) with Projections to 2030, 2008. Washington, DC. Report No. DOE/EIA-0383(2008).

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