8

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- i APPENDIX 8

- A. USER INSTRUCTIONS FO R THE LIFE

- CYCLE COST ANALYSIS

SPREADSHEET FOR BOILERS
TABLE OF CO NTENTS

8

- A.1 USER INSTRUCTIONS

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- 1 8

- A.2 STARTUP

................................ ................................ ................................ ................... 8

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- 1 8

- A.3 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET S

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- 1 8

- A.3.1 Main LCC workshee t

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- 1 8

- A.3.2 LCC input worksheet

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- 4 8

- A.4 BASIC INSTRUCTIONS F OR OPERATING THE LIF E

- CYCLE COST SPREADSHEETS

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- 5

LIST OF FIGURES

Figure 8

- A.3.1 LCC and Payback Calculation Process

................................ ...................... 8

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- 48

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- 1 APPENDIX 8

- A. USER INSTRUCTIONS FO R THE LIFE

- CYCLE COST ANALYSIS

SPREADSHEET FOR RESIDENTIAL BOILERS

8

- A.1 USER INSTRUCTIONS

The results obtained in this analysis can be examined and reproduced using the Microsoft Excel spreadsheets available on the Department of Energy’s (DOE's) boiler rulemaking website : http://www1.eere.energy.gov/buildin gs/appliance_standards/product.aspx/productid/72

. From that page, follow the links to the notice of data availability rulemaking phase and then to Analytical Tools.

8

- A.2 STARTUP

DOE’s spreadsheet s enables users to perform life

- cycle cost (LCC) and payback period (PBP) analyses for each product class. Two spreadsheet s exist for all six boiler product classe s: a spreadsheet labeled LCC and another labeled LCC input. The LCC input contains the raw dat a used for the analysis as well the formulas that led to the processed data that are used in the LCC. The LCC input serves the purpose of delivering the raw input used in the analysis as well as of informing the public on how the processed data in the main LCC is derived

, for complete transparency.

The two spreadsheets are independent. The main LCC spreadsheet can be downloaded and run separately. In order to change the input of the main LCC based on updated data from the LCC input, the user will need to manually copy/paste the data that was modified in the LCC input into the main LCC spreadsheet.

To examine the spreadsheets, DOE assumes that the user has access to a personal computer with a hardware configuration capable of running Windows XP or later

. All LCC spreadsheets require Microsoft Excel 2003 or later installed under the Windows operating system. Because certain variables inside the spreadsheets are defined as distributions, a copy of Crystal Ball a (a commercially available add

- on program) is r equired to view them.

8

- A.3 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET S

8

- A.3.1 Main LCC worksheet

For all of the boiler product classes, DOE created a single LCC spreadsheet containing a collection of worksheets. Each worksheet represents a conceptual component withi n the LCC calculation. To facilitate navigability and identify how worksheets are related, each worksheet contains an area on the extreme left showing variables imported to and exported from the current worksheet. The LCC spreadsheet contains the following worksheets:

a See http://www.oracle.com/us/products/applications/crystalball/overview/index.html8

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- 2 Statistics The Statistics worksheet contains the statistics of key parameters from the outcome of the Monte Carlo simulations for the sample of households
Summary The Summary worksheet contains a user interface to manipulate energy price trends and start year inputs, and to run the Crystal Ball simulation. LCC and PBP simulation results for each efficiency level are also displayed here.

LCC&PB Calcs The LCC&PB Calcs worksheet shows LCC calculation results for different efficiency levels for a single Residential Energy Consumption Survey (RECS) 2009 household 1 or Commercial Building Energy Consumption Survey (CBECS) 2003 building

. 2 During a Cry stal Ball simulation, the spreadsheet records the LCC and PBP values for every sampled household

. LCC&PB by Category The LCC&PB Calcs worksheet shows LCC calculation results from LCC& PB Calcs disaggregated by different markets (residential replacement, residential new construction, commercial replacement, and commercial new construction).

Rebuttable Payback The Rebuttable Payback worksheet contains the total and incremental manufactur er costs, retail prices, the installation costs, the repair and maintenance costs, energy use calculations, and the simple PBP calculations for each efficiency level. DOE’s residential furnace and boiler test procedure is used to calculate parameters used in energy use calculations.
Equip Price The Equip Price worksheet calculates retail price values used as inputs in the LCC calculations in the Summary worksheet.
Markups The Markups worksheet calculates markup values used as inputs in the Equip Price worksheet. DOE applied baseline and incremental markups to calculate final retail prices. DOE calculated the markups differently for replacement units and new units.
Learning Rate The Markups worksheet calculates learning rate values used as inputs in th e Equip Price worksheet.

Installation Cost The Installation Cost worksheet provides the weighted average installation cost for each design option. These results are used to calculate the total installed prices of the design options.

Maintenance and Repai r Cost The Maintenance and Repair Cost worksheet provides the maintenance and repair costs for each design option. These results are used to determine operating costs for the design options.

Labor Costs The Labor Cost worksheet provides the labor cost by region as used to determine the installation and repair/maintenance costs.
Building Sample The Building Sample worksheet contains the RECS 2009 and CBECS 2003 household data for each product class. During a Crystal Ball simulation, DOE uses these household characteristics to determine the analysis parameters.

Base Case AFUE The BaseCase AFUE worksheet includes the boiler efficiency distribution for 2020

.

AFUE (Existing) The Existing AFUE (existing) worksheet includes the boiler efficiency for all years during the period 19 78

- 200 9

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- 3 Energy Use The Energy Use worksheet calculates annual energy use by fuel type, depending on product class. The annual energy use calculations for each design option are i nputs to the LCC&PB Calcs worksheet to calculate the annual operating cost of the LCC.
Energy Price The Energy Price worksheet shows the estimated monthly natural gas, electricity, and oil prices.
Energy Price Trends The Energy Price Trends worksheet shows the future price trends of the different heating fuels. DOE used energy price data and forecasts from the Energy Information Administration’s (EIA's) Annual Energy Outlook 2013 for the period until 40 and extrapolated beyond 2040. 3

Equipment Specs The Equipment Specs worksheet contains parameters data used in the analysis.

Discount Rate The Discount Rate worksheet contains the distributions of discount rates for replacement and new units.

Lifetime The Lifetime worksheet contains the distribution of lifetimes for equipment of that product class.
Energy Use Adjustment Factors The Energy Use Adjustment Factors worksheet contains adjustment factors for normal heating degree days and cooling degree days, as well as building shell efficiency index.

Weather Data The Weather Data worksheet contains heating degree days, cooli ng degree days, heating and cooling outdoor design temperature, and annual mean temperature by weather station.

Forecast Cells The Forecast Cells worksheet contains the outcome of the Monte Carlo simulations for the sample of 10,000 households for many parameters used in the analysis and the documentation.

Labels The Labels worksheet contains labels used in graphical user interface

. LCC Outputs The LCC Outputs worksheet contains intermediate inputs used for DOE’s National Impact Analysis. These inputs include fuel and electricity use, total installed price, operating cost, and base case distributions for each product class and efficiency level. The inputs are p resented for the South and North regions, and for replacement and new construction housing markets. The NIA Inputs worksheet also includes energy price and shipment information, as well as household sample fractions by Census division.

LCC TSD Tables The LCC TSD Tables worksheet contains the tables generated for use in the chapter documentation describing the LCC Analysis.

Appendix Tables The Appendix Tables worksheet contains the tables generated for use in the appendix documentation describing the L CC Analysis.

TSD Ch.8 (Figures) The TSD Ch.8 (Figures) worksheet contains the Figures generated for use in the documentation describing the LCC Analysis results in Ch.8.

Figure 8

- A.3.1 depicts how these various inputs are used in order to generate the LCC and PBP outputs.8

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- 4 Figure 8

- A.3.1 LCC and Payback Calculation Process

8

- A.3.2 LCC input worksheet

The LCC input spreadsheet contains the following worksheets:

• Markup Input

• Learning Rate

• Labor Cost Dat

• RECS Sample

• CBECS Sample

• Sample Stats

• RECS Codebook

• Res Energy Price Input

• Res Energy Price Data

• Res Energy Price Trends

• Com Energy Price Input

• Com Energy Price Data

• Com Energy Price Trends

• Equip Spec

• AFUE (Existing)8

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- 5 • Base Case Eff

• Equip Spec Charts

• Models Directory

• Energy Price Trends

• Energy Use Adj Input

• Energy Use Adj Factors

• LCC Outputs

• Census Pop. Data

• Shipments

• Weather Data

• Definitions

• Discount Rate

• Lifetime Calcs

• Lifetime (Ref)

• Warranty (Ref)

Each of those worksheets is designed to calculate the input that will be used in the corresponding worksheet in the main LCC.

8

- A.4 BASIC INSTRUCTIONS F OR OPERATING THE LIF E

- CYCLE COST SPREADSHEETS

Basic instructions for operating the LCC spreadsheet are as follows:

1. Once the LCC sp readsheet has been downloaded, open the file using Excel. Click “Enable Macro” when prompted and then click on the tab for the Summary worksheet.

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 worksheet. There are three drop

- down boxes and one command button. The default parameters are:

a. Energy Price Trend: Defaults to “AEO 201 3

- Reference Case.” To change the input, use the drop

- down menu and select the desired trend (Reference, Low, or High).

b. Start Year: Defaults to “ 2020 .” To change the value, use the drop

- down menu and select the desired year.

c. # of Trials: Defaults to “10,000.” To change the value, use the drop

- down menu and select the desired number of trials (1,000, 2,000, 3,000, 5,000, or 10,000).8

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- 6 d. Learning Curve : Defaults to “No Learning.” To change the value, use the drop

down menu

.

4. To run the Crystal Ball simulation, click the “run” button (you must re

- ru n after changing any 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 worksheet named Summary will reappe ar with the results.8

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- 7 REFERENCES

1. U.S. Department of Energy: Energy Information Administration, Residential Energy Consumption Survey: 2009 RECS Survey Data, 2013. (Last accessed March, 2013.)

< http://www.eia.gov/consumption/residential/data/2009/ >

2. U.S. Department of Energy: Energy Information Administration, Commercial Buildings Energy Consumption Survey, 2003. (Last accesse d September, 2013.)

< http://www.eia.doe.gov/emeu/cbecs/ >

3. Energy Information Administration, Annual Energy Outlook 2013 with Projections to 2040 , 2013. Washington, DC. < http://www.eia.gov/forecasts/aeo/pdf/0383(2013).pdf >