APPENDIX 8-A. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS SPREADSHEET

TABLE OF CONTENTS

8-A.1 USER INSTRUCTIONS .......................................................................................8-A-1 8-A.2 STARTUP..............................................................................................................8-A- 1 8-A.3 DESCRIPTION OF LIFE-CYCLE COST WORKSHEETS ................................8-A-1 8-A.4 BASIC INSTRUCTIONS FOR OPERATING THE LIFE-CYCLE COST SPREADSHEETS..................................................................................................8-A-3

LIST OF TABLES

Table 8-A.2.1 List of LCC Spreadsheets ..........................................................................8-A-1

8-A-iAPPENDIX 8-A. USER INSTRUCTIONS FOR THE LIFE-CYCLE COST ANALYSIS
SPREADSHEET

8-A.1 USER INSTRUCTIONS

The results obtained in this analysis can be examined and reproduced using the Microsoft Excel spreadsheets available on DOE's Home Appliances Rulemaking website: http://www.eere.energy.gov/buildings/appliance_standa rds /. From that page, follow the links to the NOPR phase and then to Analytical Tools.

8-A.2 STARTUP

DOE’s spreadsheets enable users to perform Life-Cycle Cost (LCC) and Payback Period (PBP) analyses for each product class. A separa te spreadsheet exists for each product class. Table 8-A.2.1 lists the LCC spreadsheets used in this rulemaking.

Table 8-A.2.1 List of LCC Spreadsheets Filename Product Class LCC_RoomAir.xls Room Air Conditioners LCC_ClothesDryer.xls Clothes Dryers

To examine the spreadsheets, DOE assumes that the user has access to a personal computer with a hardware configuration cap able of running Windows NT/2000/XP. All LCC spreadsheets require Microsoft Excel 2000 or later installed unde r the Windows operating system. Because certain variables inside the spreadsheets are defined as distributions, the user’s computer requires a copy of Crystal Ball (a commercially available add-on program).

8-A.3 DESCRIPTION OF LIFE-CYCLE COST WORKSHEETS

For both of the products, DOE created one spreadsheet containing a collection of worksheets. Each worksheet repr esents a conceptual component within the LCC calculation. To facilitate navigability and identify how worksheets are related, each worksh eet contains an area on the extreme left showing variables imported to and exported from the current worksheet. Each LCC spreadsheet contains the following worksheets:

Summary The Summary worksheet contains LCC and PBP simulation results for each design option and product class.

Statistics The Statistics worksheet contains statistic s for each design option and product class.

LCC & PB Calcs The LCC&PB Calcs contains the user interface used to manipulate energy price trend and start year inputs, and to run the Crystal Ball simulation. This worksheet also shows LCC calculation results for different efficiency levels for sing le Residential Energy Consumption

8-A-1Rebuttable Payback

Equipment (and Installation) Cost

RECS Households

CBECS Households

Base Case Eff Dist

(Per Cycle) Energy Use

Energy Prices

Energy Price Trends Survey (RECS) households and Commercial Buildings Energy Consumption Survey (CBECS) buildings, if applicable. 1, 2 During a Crystal Ball simulation, the spreadsheet records the LCC and PBP values for every sampled household and building.

The Rebuttable Payback worksheet contains the total and incremental manufacturer costs, retail prices, the installation costs, the repair and maintenance costs, energy use calculations, and the simple payback period calculations for each efficien cy level. DOE clothes dryer and room air conditioner test procedures were used to calculate parameters used in energy use calculations.

These worksheets calculates retail pr ice values used as inputs in the LCC calculations in the Summary worksheet. DOE applied baseline and incremental markups to calculate final retail prices. DOE calculated the markups differently for replacement units and new units. In the Clothes Dryers LCC spreadsheet, installation costs were included in this worksheet.

The RECS Households worksheet contains the RECS 2005 household data for each residential product class. During a Crystal Ball simulation, DOE uses these household characteri stics to determine a number of variables used in the analysis.

The CBECS Households worksheet contains the CBECS 2003 building data for each commercial product class. During a Crystal Ball simulation, DOE uses these building characteristics to determine a number of variables used in the anal ysis. This worksheet is found only in the Room Air Conditioners LCC spreadsheet.

The Base Case EF worksheet determines the efficiency of the base case unit.

The (Per Cycle) Energy Use worksheet calculates annual energy use by fuel type, depending on product class. The annual energy use calculations for each design option are inputs to the LCC&PB Calcs worksheet to calculate the annual operating cost of the LCC.

The Energy Prices worksheet calculates energy prices, depending on a number of variables.

The Energy Price Trends worksheet shows the future price trends of the different heating fuels. DOE used energy price data and forecasts from the EIA's Annual Energy Outlook 2009 for the period until 2030, and extrapolated beyond 2030. 3

8-A-2Discount Rate The Discount Rate worksheet contains the dist ributions of discount rates for replacement and new units.

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

NIA Inputs The NIA Inputs worksheet contains intermediate inputs used for other DOE analyses.

8-A.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 has been downloaded, open the file using Excel. Click “Enable Macro” when prompted a nd then click on the tab for the LCC & PB Calcs 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 parame ters listed under USER OPTIONS on the LCC & PB Calcs worksheet. There are three drop-down boxes and one command button. The default parameters are:

a. Energy Price Trend: Defaults to “AEO 2009 - Reference Case.” To change the input, use the drop-down menu and select th e desired trend (Reference, Low, or High).

b. Start Year: Defaults to “2014.” To change the value, use the drop-down menu and select the desired year.

c. # of Trials: Defaults to “10,000.” To ch ange 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).

4. To run the Crystal Ball simulation, click the “run” button (you must re-run after changing any parameters). The spreadsheet will then be minimized. You can monitor the progress of the simulation by watching the count of iterations in the left bottom corner of the screen. When the simulation is finished, the spreadsheet will re-open.

5. Additional information can be found in the Statistics and Summary worksheets.

8-A-3REFERENCES

1. U.S. Department of Energy - Energy Information Administration, Residential Energy Consumption Survey: 2005 Public Use Data Files, 2005.

< http://www.eia.doe.gov/emeu/recs/recspubuse05/pubuse05.html >

2. U.S. Department of Energy - Energy Information Administration, Commercial Buildings Energy Consumption Survey, 2003. < http://www.eia.doe.gov/emeu/cbecs / >

3. Energy Information Administration, Updated Annual Energy Outlook 2009 Reference Case Service Report , 2009. Washington, DC. Report No. DOE/EIA-0383(2009).

< http://www.eia.doe.gov/oiaf/aeo / >

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