APPENDIX 11B. NATIONAL EQUIPMENT AND OPERATING COSTS 

TABLE OF CONTENTS 

11B.1 INTRODUCTION .................................................................................................11B-1 

11B.2 RESULTS ..............................................................................................................11B-2 

11B.2.1 Cooktops ................................................................................................................11B-2 

11B.2.2 Ovens .....................................................................................................................11B-4 

11B.2.3 Microwave Ovens ..................................................................................................11B-9 

LIST OF TABLES 

Table 11B.2.1 Electric Coil Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-3 

Table 11B.2.2 Electric Coil Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-3 

Table 11B.2.3 Electric Smooth Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-3 

Table 11B.2.4 Electric Smooth Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-3 

Table 11B.2.5 Gas Cooktops: Cumulative National Equipment and Operating Costs 

with NPV from 2012–2042, Seven-Percent Discount Rate (billion 

2006$) ........................................................................................................11B-4 

Table 11B.2.6 Gas Cooktops: Cumulative National Equipment and Operating Costs 

with NPV from 2012–2042, Three-Percent Discount Rate (billion 

2006$) ........................................................................................................11B-4 

Table 11B.2.7 Electric Standard Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-5 

Table 11B.2.8 Electric Standard Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-5 

Table 11B.2.9 Electric Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-6 

Table 11B.2.10 Electric Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-6 

11B-i 

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.11 Gas Standard Ovens: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) ...........................................................................................11B-7 

Table 11B.2.12 Gas Standard Ovens: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) ...........................................................................................11B-8 

Table 11B.2.13 Gas Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-9 

Table 11B.2.14 Gas Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) ...................................................................................11B-9 

Table 11B.2.15 Microwave Ovens by EF: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount 

Rate (billion 2006$) .................................................................................11B-10 

Table 11B.2.16 Microwave Ovens by EF: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount 

Rate (billion 2006$) .................................................................................11B-10 

11B-ii 

EERE-2006-STD-0127 COMMENT 64.2
APPENDIX 11B. NATIONAL EQUIPMENT AND OPERATING COSTS 

11B.1 INTRODUCTION 

In this appendix, the Department presents the components of the net present value (NPV), 

namely, the present value of the equipment (or total installed costs) and the present value of the 

operating costs for each of the four appliance products. The present value of equipment costs is 

also termed the cumulative national equipment costs while the present value of operating costs is 

also termed the cumulative national operating costs. 

As presented in Chapter 11, National Impact Analysis, the NPV is described by the 

equation: 

_ NPV = PVS PVC 

where: 

PVS = Present value of operating cost savings (including energy, water, repair, and 

maintenance costs) and 

PVC = Present value of increased total installed costs (including equipment and 

installation). 

The PVS and PVC are determined according to the following expressions: 

PVS = ∑OCSy × DFy 

PVC = ∑TICy × DFy 

where: 

OCS = Total annual operating cost savings each year summed over vintages of the 

product stock, 

TIC = Total annual installed cost increases each year summed over vintages of the 

product stock, 

DF = Discount factor in each year, and 

y = Year in the forecast (i.e., 2012 to 2042). 

PVS and PVC are determined for each year from the effective date of the standard to the year 

when units purchased in 2042 retire. 

The present value of operating costs and the present value of equipment costs (or total 

installed costs) are the components comprising the PVS and PVC, respectively. The PVS is 

11B-1

EERE-2006-STD-0127 COMMENT 64.2
determined by taking the difference between the present value of operating costs for the base 

case and the present value of operating costs for the standards case. The PVC is determined by 

taking the difference between the present value of equipment costs for the base case and the 

present value of equipment costs for the standards case. 

11B.2 RESULTS 

For following sections provide tables showing the present value of operating costs (also 

known as the cumulative national operating costs) and the present value of equipment costs (also 

known as the cumulative national equipment costs) each of the four appliance products. For 

each product, two sets of results are presented; one based on a seven-percent and another based 

on a three-percent discount rate. 

In the tables provided in the following sections, the national operating and equipment 

costs are presented for the base case (i.e., without standards) and each standard level analyzed. 

Differences between the base case and standards cases are also presented. The difference in the 

national equipment costs represents the PVC or present value of equipment cost increases while 

the difference in the national operating costs represents the PVS or present value of operating 

cost savings. The difference between the base case and standards case total national equipment 

and operating costs represents the NPV. 

11B.2.1 Cooktops 

Tables 11B.2.1–11B.2.6 present the national equipment and operating costs, PVC, PVS, 

and NPV for cooktops. In the case of electric and gas cooktops, because the housing market is 

fully saturated (i.e., all households have cooktops either in the form of ranges or stand-alone 

units), DOE assumed that standards would neither impact shipments nor cause shifts in electric 

and gas cooktop market shares. Therefore, DOE’s standards case shipments for electric and gas 

cooktops were identical to its base case shipments. Typically, DOE would use the standards case 

shipments projection and, in turn, the standards case equipment stock, to determine the NPV to 

avoid the inclusion of savings due to displaced shipments. But because DOE assumed no drop in 

shipments due to standards, DOE maintained the use of the base case shipments to determine the 

annual energy consumption in the base case. Thus, the base case values shown in Tables 

11B.2.1–11B.2.6 do not vary with the standards case. 

Tables 11B.2.1 and 11B.2.2 show the costs, PVC, PVS, and NPV for electric coil 

cooktops at real discount rates of seven- and three-percent respectively. Both the candidate 

standard level (CSL) and trial standard level (TSL) are identified in the following tables. 

11B-2

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.1 Electric Coil Cooktops: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Seven-Percent Discount Rate (billion 

2006$) 

Standard Level* Equipment Operating Total 

Base Case 5.29 6.40 11.70 

CSL 1 / TSL 2, 3, 4 5.38 6.23 11.61 

Difference** -0.09 0.17 0.09 

* TSL 1 equals the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.2 Electric Coil Cooktops: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Three-Percent Discount Rate (billion 

2006$) 

Standard Level* Equipment Operating Total 

Base Case 10.16 14.32 24.48 

CSL 1 / TSL 2, 3, 4 10.33 13.86 24.19 

Difference** -0.16 0.46 0.30 

* TSL 1 equals the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Tables 11B.2.3 and 11B.2.4 show the costs, PVC, PVS, and NPV for electric smooth 

cooktops at real discount rates of seven- and three-percent respectively. 

Table 11B.2.3 Electric Smooth Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 7.53 7.46 14.98 

CSL 1 / TSL 4 14.90 7.38 22.28 

Difference** -7.37 0.07 -7.30 

* TSLs 1, 2, 3 equal the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.4 Electric Smooth Cooktops: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 14.44 16.77 31.21 

CSL 1 / TSL 4 28.59 16.58 45.16 

Difference** -14.14 0.19 -13.95 

* TSLs 1, 2, 3 equal the baseline level.

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B-3

EERE-2006-STD-0127 COMMENT 64.2
Tables 11B.2.5 and 11B.2.6 show the costs, PVC, PVS, and NPV for gas cooktops at real 

discount rates of seven- and three-percent respectively. 

Table 11B.2.5 Gas Cooktops: Cumulative National Equipment and Operating Costs 

with NPV from 2012–2042, Seven-Percent Discount Rate (billion 2006$) 

Standard Level Equipment Operating Total 

Base Case 10.09 12.57 22.66 

CSL 1 / TSL 1, 2, 3 10.19 12.25 22.44 

Difference* -0.10 0.32 0.22 

Base Case 10.09 12.57 22.66 

CSL 2 / TSL 4 11.30 12.04 23.34 

Difference* -1.21 0.52 -0.69 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.6 Gas Cooktops: Cumulative National Equipment and Operating Costs 

with NPV from 2012–2042, Three-Percent Discount Rate (billion 2006$) 

Standard Level Equipment Operating Total 

Base Case 19.19 27.33 46.52 

CSL 1 / TSL 1, 2, 3 19.36 26.60 45.96 

Difference* -0.17 0.73 0.56 

Base Case 19.19 27.33 46.52 

CSL 2 / TSL 4 21.47 26.06 47.53 

Difference* -2.28 1.27 -1.01 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B.2.2 Ovens 

Tables 11B.2.7–11B.2.14 present the national equipment and operating costs, PVC, PVS, 

and NPV for ovens. In the case of electric and gas ovens, because the housing market is fully 

saturated (i.e., all households have ovens either in the form of ranges or stand-alone units), DOE 

assumed that standards would neither impact shipments nor cause shifts in electric and gas oven 

market shares. Therefore, DOE’s standards case shipments for electric and gas ovens were 

identical to its base case shipments. Typically, DOE would use the standards case shipments 

projection and, in turn, the standards case equipment stock, to determine the NPV to avoid the 

inclusion of savings due to displaced shipments. But because DOE assumed no drop in 

shipments due to standards, DOE maintained the use of the base case shipments to determine the 

annual energy consumption in the base case. Thus, the base case values shown in Tables 

11B.2.7–11B.2.14 do not vary with the standards case. 

Tables 11B.2.7 and 11B.2.8 show the costs, PVC, PVS, and NPV for electric standard 

ovens at real discount rates of seven- and three-percent respectively. 

11B-4

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.7 Electric Standard Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 5.16 4.88 10.04 

CSL 1 5.20 4.76 9.96 

Difference** -0.04 0.12 0.09 

Base Case 5.16 4.88 10.04 

CSL 2 / TSL 2, 3 5.27 4.64 9.91 

Difference** -0.10 0.24 0.13 

Base Case 5.16 4.88 10.04 

CSL 3 5.35 4.60 9.95 

Difference** -0.19 0.28 0.09 

Base Case 5.16 4.88 10.04 

CSL 4 6.21 4.55 10.76 

Difference** -1.04 0.33 -0.71 

Base Case 5.16 4.88 10.04 

CSL 5 / TSL 4 6.28 4.54 10.83 

Difference** -1.12 0.34 -0.78 

* TSL 1 equals the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.8 Electric Standard Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) 

Standard Level Equipment Operating Total 

Base Case 9.91 10.84 20.74 

CSL 1 9.97 10.52 20.49 

Difference** -0.07 0.32 0.25 

Base Case 9.91 10.84 20.74 

CSL 2 / TSL 2, 3 10.11 10.21 20.31 

Difference** -0.20 0.63 0.43 

Base Case 9.91 10.84 20.74 

CSL 3 10.26 10.10 20.36 

Difference** -0.36 0.74 0.38 

Base Case 9.91 10.84 20.74 

CSL 4 11.91 9.96 21.87 

Difference** -2.00 0.87 -1.13 

Base Case 9.91 10.84 20.74 

CSL 5 / TSL 4 12.06 9.94 22.00 

Difference** -2.15 0.89 -1.26 

* TSL 1 equals the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B-5 

EERE-2006-STD-0127 COMMENT 64.2
Tables 11B.2.9 and 11B.2.10 show the costs, PVC, PVS, and NPV for electric selfcleaning ovens at real discount rates of seven- and three-percent respectively. 

Table 11B.2.9 Electric Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 19.74 14.95 34.69 

CSL 1 20.03 14.92 34.96 

Difference** -0.29 0.02 -0.27 

Base Case 19.74 14.95 34.69 

CSL 2 / TSL 4 22.69 14.77 37.46 

Difference** -2.95 0.18 -2.77 

* TSLs 1, 2, 3 equal the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.10 Electric Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 37.88 33.69 71.58 

CSL 1 38.45 33.63 72.08 

Difference** -0.56 0.07 -0.50 

Base Case 37.88 33.69 71.58 

CSL 2 / TSL 4 43.55 33.21 76.76 

Difference** -5.66 0.48 -5.18 

* TSLs 1, 2, 3 equal the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Tables 11B.2.11 and 11B.2.12 show the costs, PVC, PVS, and NPV for gas standard 

ovens at real discount rates of seven- and three-percent respectively. 

11B-6

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.11 Gas Standard Ovens: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Seven-Percent Discount Rate (billion 

2006$) 

Standard Level Equipment Operating Total 

Base Case 5.56 8.77 14.33 

CSL 1 5.67 8.84 14.50 

Difference* -0.10 -0.06 -0.17 

Base Case 5.56 8.77 14.33 

CSL 2 5.74 8.96 14.70 

Difference* -0.18 -0.19 -0.36 

Base Case 5.56 8.77 14.33 

CSL 3 5.76 8.94 14.70 

Difference* -0.20 -0.17 -0.37 

Base Case 5.56 8.77 14.33 

CSL 4 6.24 8.90 15.14 

Difference* -0.68 -0.12 -0.80 

Base Case 5.56 8.77 14.33 

CSL 5 6.27 8.89 15.16 

Difference* -0.71 -0.12 -0.83 

Base Case 5.56 8.77 14.33 

CSL 6 / TSL 4 6.35 8.88 15.23 

Difference* -0.79 -0.10 -0.89 

Base Case 5.56 8.77 14.33 

CSL 1a / TSL 1, 2, 3 5.67 8.63 14.30 

Difference* -0.11 0.14 0.03 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B-7

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.12 Gas Standard Ovens: Cumulative National Equipment and Operating 

Costs with NPV from 2012–2042, Three-Percent Discount Rate (billion 

2006$) 

Standard Level Equipment Operating Total 

Base Case 10.58 19.03 29.61 

CSL 1 10.75 19.17 29.92 

Difference* -0.18 -0.14 -0.31 

Base Case 10.58 19.03 29.61 

CSL 2 10.89 19.49 30.38 

Difference* -0.31 -0.47 -0.78 

Base Case 10.58 19.03 29.61 

CSL 3 10.93 19.45 30.38 

Difference* -0.36 -0.42 -0.77 

Base Case 10.58 19.03 29.61 

CSL 4 11.84 19.33 31.16 

Difference* -1.26 -0.30 -1.56 

Base Case 10.58 19.03 29.61 

CSL 5 11.91 19.30 31.21 

Difference* -1.33 -0.27 -1.60 

Base Case 10.58 19.03 29.61 

CSL 6 / TSL 4 12.05 19.27 31.33 

Difference* -1.48 -0.24 -1.72 

Base Case 10.58 19.03 29.61 

CSL 1a / TSL 1, 2, 3 10.76 18.70 29.46 

Difference* -0.18 0.33 0.14 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Tables 11B.2.13 and 11B.2.14 show the costs, PVC, PVS, and NPV for gas self-cleaning 

ovens at real discount rates of seven- and three-percent respectively. 

11B-8

EERE-2006-STD-0127 COMMENT 64.2
Table 11B.2.13 Gas Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 8.70 5.21 13.91 

CSL 1 / TSL 3 8.99 4.91 13.90 

Difference** -0.29 0.30 0.01 

Base Case 8.70 5.21 13.91 

CSL 2 9.11 4.90 14.01 

Difference** -0.41 0.31 -0.10 

Base Case 8.70 5.21 13.91 

CSL 3 / TSL 4 9.14 4.89 14.02 

Difference** -0.44 0.33 -0.11 

* TSLs 1, 2 equal the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.14 Gas Self-Cleaning Ovens: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) 

Standard Level* Equipment Operating Total 

Base Case 16.54 11.75 28.29 

CSL 1 / TSL 3 17.09 10.94 28.03 

Difference** -0.56 0.81 0.25 

Base Case 16.54 11.75 28.29 

CSL 2 17.31 10.92 28.23 

Difference** -0.78 0.83 0.05 

Base Case 16.54 11.75 28.29 

CSL 3 / TSL 4 17.37 10.88 28.26 

Difference** -0.84 0.87 0.03 

* TSLs 1, 2 equal the baseline level. 

** Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B.2.3 Microwave Ovens 

Tables 11B.2.15–11B.2.18 present the national equipment and operating costs, PVC, 

PVS, and NPV for microwave ovens at real discount rates of seven- and three-percent 

respectively. 

All base case values were determined with shipments projections established under the 

standards case. As detailed in Chapter 11, shipments projections under the standards cases were 

determined to be lower than those in the base case projection due to the higher installed cost of 

the more efficient equipment. As a result, the standards case shipments projection and, in turn, 

the standards case equipment stock, were used to determine the NPV to avoid the inclusion of 

11B-9

EERE-2006-STD-0127 COMMENT 64.2
savings due to displaced shipments. Thus, the base case values shown in Tables 11B.2.15 to 

11B.2.18 vary with the standards case. Both the CSL and TSL are identified in the following 

tables. 

Table 11B.2.15 Microwave Ovens by EF: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Seven-Percent Discount Rate 

(billion 2006$) 

Standard Level Equipment Operating Total 

Base Case 36.14 25.05 61.20 

CSL 1 / TSL 1 38.22 24.21 62.43 

Difference* -2.07 0.84 -1.23 

Base Case 35.49 24.68 60.18 

CSL 2 / TSL 2 39.70 23.80 63.51 

Difference* -4.21 0.88 -3.33 

Base Case 34.48 24.11 58.59 

CSL 3 / TSL 3 41.90 23.02 64.92 

Difference* -7.41 1.09 -6.32 

Base Case 33.22 23.39 56.61 

CSL 4 / TSL 4 44.44 22.22 66.66 

Difference* -11.22 1.17 -10.05 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

Table 11B.2.16 Microwave Ovens by EF: Cumulative National Equipment and 

Operating Costs with NPV from 2012–2042, Three-Percent Discount Rate 

(billion 2006$) 

Standard Level Equipment Operating Total 

Base Case 69.14 51.99 121.13 

CSL 1 / TSL 1 73.11 50.09 123.19 

Difference* -3.97 1.90 -2.06 

Base Case 67.79 51.08 118.87 

CSL 2 / TSL 2 75.84 49.09 124.93 

Difference* -8.04 1.99 -6.05 

Base Case 65.71 49.68 115.38 

CSL 3 / TSL 3 79.83 47.23 127.06 

Difference* -14.13 2.45 -11.68 

Base Case 63.11 47.93 111.04 

CSL 4 / TSL 4 84.43 45.31 129.74 

Difference* -21.32 2.62 -18.70 

* Equipment Cost Difference represents the PVC; Operating Cost Difference represents the PVC; NPV is 

represented by the bold and italicized values. 

11B-10 

EERE-2006-STD-0127 COMMENT 64.2