APPENDIX 8A. USER INSTRUCTION S FOR L IFE

- CYCLE COST ANALYSIS
SPREADSHEET

TABLE OF CO NTENTS

8A.1 INTRODUCTION

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8A.2 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET

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8A.3 BASIC INSTRUC TIONS

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- iAPPENDIX 8A. USER INSTRUCTION S FOR L IFE

- CYCLE COST ANALYSIS

SPREADSHEET

8A.1 INTRODUCTION

It is possible to examine and reproduce the detailed results of the life

- cycle cost ( LCC ) and payback period ( PBP ) analyses using a Mic rosoft Excel spreadsheet available on the U.S. Department of Energy’s rulemaking website for miscellaneous refrigerat ion products

. 1 To fully execute the spreadsheet s requires both Microsoft Excel and Crysta l Ball 2 software. Both applications are comme rci ally available. The spreadsheet post ed on the DOE website represent s the latest version and has b een tested with Microsoft Excel 2010

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8A.2 DESCRIPTION OF LIFE

- CYCLE COST WORKSHEET

For all of the product classes, DOE created a single LCC workbook file contain ing a collection of worksheets. Each worksheet represents a conceptual component within 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 workbook contains the following worksheets:

Summary The Summary worksheet contains a user interface to man ipulate energy price trends, start year , and number of trials in the Crystal Ball simulation. It also
includes a button to run the Crystal Ball simulation. LCC and PBP simulation
results for each efficiency level are displayed on this sheet

. LCC & Payback The LCC & Payback worksheet shows LCC calculation results for different efficiency levels for a single sampled household

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

Household Sample The Household Sample worksheet contains the household data for each product class. During a Crystal Ball simulation, DOE uses these household characteristics to determine the analysis parameters.

Equip ment Price The Equip ment Price worksheet calculates retail price values used as inputs in
the LCC calculations in the LCC & Payback worksheet.

Energy Us e The Energy Use worksheet calculates annual energy use for each product class. The annual energy use calculations for each design option are inputs to
the LCC & Payback worksheet to calculate the annual operating cost of the
LCC.

Base Case
Distribution T he BaseCase Distribution worksheet includes the product efficiency
distribution for the effective year of the standard

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- 1Electricity
Prices The Electricity Prices worksheet shows the estimated electricity price for each

state

. Electricity Price
Trend The Electricity Price Trend worksheet shows the future price trend for electricity. DOE used energy price data and forecasts from the Energy Information Administration’s (EIA's) Annual Energy Outlook 2013 3 for the period until 20 40 and extrapolated beyond 2040

. Discount Rate The Discount Rate worksheet contains the distributions of discount rates.

Lifetime The Lifetime worksheet contains the distribution of lifetimes for equipment of that product class.

LCC Box Plots The LCC Box Plots worksheet can display b ox plots of the LCC savings for all efficiency levels and product classes. Box plots for a single product are visible at any given time. The user can select the product to show on the sheet.

PBP Box Plots The PBP Box Plots worksheet can display box plo ts of the PBP for all efficiency levels and product classes. Box plots for a single product are visible at any given time. The user can select the product to show on the sheet.

Frequency
Charts The Frequency Charts worksheet contains example histograms of LCC , LCC savings , and PBP. These are the values calculated in the Monte Carlo
simulations of 25 ,000 households

. DOE can create frequency charts for any product and efficiency level.

8A.3 BASIC INSTRUCTIONS

Basic instructions for operating the LCC spread sheet are as follows:

1. Once the LCC spreadsheet has been downloaded, open the file using Excel. Click
“Enable Content ” 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 th e size of the display to fit your monitor.

3. The user can change the parameters listed under "User Input: " on the Summary
worksheet. There are three drop

- down boxes. The default parameters are:

a. Energy Price Trend: Defaults to “AEO 201 3 Reference Case.” T o change the input, use the drop

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

b. Start Year: Defaults to “ 2021 .” To change the value, use the drop

- down menu and select the desired year.

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- 2c. # of Trials: Defaults to “25 ,000.” To change the v alue, use the drop

- down menu and select the desired number of trials ( 100, 1,000, 2,000, 5,000, 10,000 , or 25 ,000 ).

4. To run the Cryst al Ball simulation, click the “R un” button (you must re

- run after changing any parameters). The spreadsheet will then be mi nimized. 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 reappear with the
results. The results for all product class es will re flect the results of the new simulation

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- 3REFERENCES

1 htt p://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/71

. Accessed June 26, 2014 . This material is available in Docket # EERE

- 2011

- BT

- STD

- 0043 at regulations.gov.

2 Crystal Ball is available at http://www.oracle.com/us/products/applications/crystalball/overview/index.html

. Accessed November 15, 2013. This material is available in Docket # EERE

- 2011

- BT

- STD

- 0043 at regulations.gov

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3 E nergy Information Administration, Annual Energy Outlook 2013 with Projections to 2040

, 2013. Washington, DC.

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