CHAPTER 8. LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSIS 

TABLE OF CONTENTS 

8.1 INTRODUCTION ........................................................................................................... 8-1 

8.1.1 General Approach for LCC and PBP Analysis................................................................ 8-1 

8.1.2 Overview of LCC and PBP Inputs................................................................................... 8-3 

8.2 LIFE-CYCLE COST INPUTS ...................................................................................... 8-10 

8.2.1 Total Installed Cost Inputs............................................................................................. 8-10 

8.2.1.1 Cooktops......................................................................................................8-12 

8.2.1.2 Ovens 8-18 

8.2.1.3 Microwave Ovens........................................................................................ 8-24 

8.2.2 Operating Cost Inputs .................................................................................................... 8-26 

8.2.2.1 Annual Energy Consumption.......................................................................8-27 

8.2.2.2 Energy Prices...............................................................................................8-30 

8.2.2.3 Energy Price Trends..................................................................................... 8-34 

8.2.2.4 Repair and Maintenance Costs..................................................................... 8-36 

8.2.3 Product Lifetime ............................................................................................................ 8-38 

8.2.3.1 Cooktops and Ovens.................................................................................... 8-38 

8.2.3.2 Microwave Ovens........................................................................................ 8-39 

8.2.4 Discount Rates ............................................................................................................... 8-40 

8.2.4.1 Discount Rate for New Housing Equipment ............................................... 8-40 

8.2.4.2 Discount Rate for Residential Replacement Equipment.............................. 8-41 

8.2.5 Effective Date of Standard............................................................................................. 8-44 

8.2.6 Equipment Assignment for the Base Case..................................................................... 8-45 

8.2.6.1 Cooktops...................................................................................................... 8-45 

8.2.6.2 Ovens 8-47 

8.2.6.3 Microwave Ovens........................................................................................ 8-50 

8.3 PAYBACK PERIOD INPUTS...................................................................................... 8-50 

8.4 LIFE-CYCLE COST AND PAYBACK PERIOD RESULTS...................................... 8-51 

8.4.1 Cooktops ........................................................................................................................ 8-52 

8.4.1.1 Base Case LCC Distributions ...................................................................... 8-52 

8.4.1.2 Standard-Level Distributions of LCC Impacts ............................................ 8-54 

8.4.1.3 Standard-Level PBP Distributions............................................................... 8-55 

8.4.1.4 LCC and PBP Results.................................................................................. 8-55 

8.4.2 Ovens ............................................................................................................................. 8-60 

8.4.2.1 Base Case LCC Distributions ...................................................................... 8-60 

8.4.2.2 Standard-Level Distributions of LCC Impacts ............................................ 8-61 

8.4.2.3 Standard-Level PBP Distributions............................................................... 8-62 

8.4.2.4 LCC and PBP Results.................................................................................. 8-63 

8.4.3 Microwave Ovens .......................................................................................................... 8-70 

8.4.3.1 Base Case LCC Distributions ...................................................................... 8-70 

8.4.3.2 Standard-Level Distributions of LCC Impacts ............................................ 8-70 

8.4.3.3 Standard-Level PBP Distributions............................................................... 8-71 

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EERE-2006-STD-0127 COMMENT 64.2
8.4.3.4 LCC and PBP Results.................................................................................. 8-72 

8.5 REBUTTABLE PAYBACK PERIOD.......................................................................... 8-73 

8.5.1 Metric............................................................................................................................. 8-73 

8.5.2 Inputs.............................................................................................................................. 8-74 

8.5.3 Results............................................................................................................................ 8-75 

8.5.3.1 Cooktops......................................................................................................8-75 

8.5.3.2 Ovens 8-75 

8.5.3.3 Microwave Ovens........................................................................................ 8-76 

LIST OF TABLES 

Table 8.1.1 Cooktops: LCC and PBP Input Summary ........................................................... 8-6 

Table 8.1.2 Ovens: LCC and PBP Input Summary................................................................. 8-7 

Table 8.1.3 Microwave Ovens: LCC and PBP Input Summary ............................................. 8-9 

Table 8.2.1 Inputs for Total Installed Cost ........................................................................... 8-11 

Table 8.2.2 Cooktops: Baseline Manufacturer Costs............................................................ 8-12 

Table 8.2.3 Cooking Products: Producer Price Indexes....................................................... 8-13 

Table 8.2.4 Electric Coil Cooktops: Standard-Level Manufacturer Cost Increases ............. 8-13 

Table 8.2.5 Electric Smooth Cooktops: Standard-Level Manufacturer Cost Increases........ 8-13 

Table 8.2.6 Gas Cooktops: Standard-Level Manufacturer Cost Increases ........................... 8-13 

Table 8.2.7 Cooktops: Overall Markups.............................................................................. 8-14 

Table 8.2.8 Cooking Range: Baseline Installation Costs...................................................... 8-14 

Table 8.2.9 Installation Cost for an Electrical Outlet ........................................................... 8-17 

Table 8.2.10 Electric Coil Cooktops: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs.................................................................................... 8-18 

Table 8.2.11 Electric Smooth Cooktops: Consumer Equipment Prices, Installation 

Costs, and Total Installed Costs......................................................................... 8-18 

Table 8.2.12 Gas Cooktops: Consumer Equipment Prices, Installation Costs, and Total 

Installed Costs.................................................................................................... 8-18 

Table 8.2.13 Ovens: Baseline Manufacturer Costs................................................................. 8-19 

Table 8.2.14 Electric Standard Ovens: Standard-Level Manufacturer Cost Increases........... 8-19 

Table 8.2.15 Electric Self-Cleaning Ovens: Standard-Level Manufacturer Cost 

Increases............................................................................................................. 8-19 

Table 8.2.16 Gas Standard Ovens: Standard-Level Manufacturer Cost Increases ................. 8-20 

Table 8.2.17 Gas Self-Cleaning Ovens: Standard-Level Manufacturer Cost Increases ......... 8-20 

Table 8.2.18 Ovens: Overall Markups................................................................................... 8-20 

Table 8.2.19 Electric Standard Ovens: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs.................................................................................... 8-22 

Table 8.2.20 Electric Self-Cleaning Ovens: Consumer Equipment Prices, Installation 

Costs, and Total Installed Costs......................................................................... 8-23 

Table 8.2.21 Gas Standard Ovens: Consumer Equipment Prices, Installation Costs, and 

Total Installed Costs .......................................................................................... 8-23 

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EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.22 Gas Self-Cleaning Ovens: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs.................................................................................... 8-23 

Table 8.2.23 Microwave Ovens: Baseline Manufacturer Costs.............................................. 8-24 

Table 8.2.24 Microwave Ovens: Standard-Level Manufacturer Cost Increases for 

Energy Factor Levels ......................................................................................... 8-24 

Table 8.2.25 Microwave Ovens: Overall Markups................................................................ 8-25 

Table 8.2.26 Microwave Ovens: Consumer Equipment Prices, Installation Costs, and 

Total Installed Costs for Energy Factor Levels ................................................. 8-25 

Table 8.2.27 Inputs for Operating Cost................................................................................... 8-26 

Table 8.2.28 Electric Coil Cooktops: Annual Energy Consumption by Efficiency Level ..... 8-28 

Table 8.2.29 Electric Smooth Cooktops: Annual Energy Consumption by Efficiency 

Level .................................................................................................................. 8-28 

Table 8.2.30 Gas Cooktops: Annual Energy Consumption by Efficiency Level .................. 8-28 

Table 8.2.31 Electric Standard Ovens: Annual Energy Consumption by Efficiency 

Level .................................................................................................................. 8-29 

Table 8.2.32 Electric Self-Cleaning Ovens: Annual Energy Consumption by Efficiency 

Level .................................................................................................................. 8-29 

Table 8.2.33 Gas Standard Ovens: Annual Energy Consumption by Efficiency Level ........ 8-29 

Table 8.2.34 Gas Self-Cleaning Ovens: Annual Energy Consumption by Efficiency 

Level .................................................................................................................. 8-30 

Table 8.2.35 Microwave Ovens: Annual Energy Consumption by Energy Factor Level ..... 8-30 

Table 8.2.36 Average Residential Electricity Prices in 2006 ................................................. 8-31 

Table 8.2.37 Average Residential Electricity Prices for Cooking Products in 2006.............. 8-32 

Table 8.2.38 Average Residential Natural Gas Prices in 2006............................................... 8-33 

Table 8.2.39 Average Residential Natural Gas Prices for Cooking Products in 2006 ........... 8-34 

Table 8.2.40 Repair/Maintenance Findings for Gas Cooking Product Ignition Systems....... 8-37 

Table 8.2.41 Repair/Maintenance Costs for Gas Cooking Product Ignition Systems ............ 8-38 

Table 8.2.42 Cooktops and Ovens: Product Lifetime Estimates and Sources........................ 8-38 

Table 8.2.43 Cooktops and Ovens: Average, Minimum, and Maximum Product 

Lifetimes............................................................................................................ 8-39 

Table 8.2.44 Microwave Ovens: Product Lifetime Estimates and Sources........................... 8-39 

Table 8.2.45 Microwave Ovens: Average, Minimum, and Maximum Product Lifetimes .... 8-40 

Table 8.2.46 Data Used to Calculate Real Effective Mortgage Rates .................................... 8-41 

Table 8.2.47 Average Shares of Considered Household Debt and Equity Types .................. 8-42 

Table 8.2.48 Average Nominal Interest Rates for Household Debt Classes (percent)........... 8-42 

Table 8.2.49 Average Real Effective Interest Rates for Household Debt Classes 

(percent)............................................................................................................. 8-43 

Table 8.2.50 Average Nominal and Real Interest Rates for Household Equity Types........... 8-43 

Table 8.2.51 Shares and Interest or Return Rates Used for Household Debt and Equity 

Types.................................................................................................................. 8-44 

Table 8.2.52 Gas Cooktops: Percent of Shipments with Pilots ............................................. 8-46 

Table 8.2.53 Cooktops: Base Case Market Shares ................................................................. 8-47 

Table 8.2.54 Gas Standard Ovens: Percent of Shipments with Pilots ................................... 8-48 

Table 8.2.55 Ovens: Base Case Market Shares ...................................................................... 8-50 

Table 8.2.56 Microwave Ovens: Base Case Market Shares by Energy Factor Level ............ 8-50 

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EERE-2006-STD-0127 COMMENT 64.2
Table 8.4.1 Electric Coil Cooktops: LCC and PBP Results ................................................. 8-56 

Table 8.4.2 Electric Smooth Cooktops: LCC and PBP Results............................................ 8-56 

Table 8.4.3 Gas Cooktops: LCC and PBP Results ............................................................... 8-56 

Table 8.4.4 Electric Standard Ovens: LCC and PBP Results ............................................... 8-64 

Table 8.4.5 Electric Self-Cleaning Ovens: LCC and PBP Results ....................................... 8-64 

Table 8.4.6 Gas Standard Ovens: LCC and PBP Results ..................................................... 8-64 

Table 8.4.7 Gas Self-Cleaning Ovens: LCC and PBP Results ............................................. 8-65 

Table 8.4.8 Microwave Ovens: LCC and PBP Results by Energy Factor Level.................. 8-72 

Table 8.5.1 Annual Useful Cooking Energy Output Values: Comparison of Values 

Used for the Determination of Rebuttable PBP and Distribution PBP.............. 8-74 

Table 8.5.2 Cooktops: Rebuttable Payback Periods ............................................................. 8-75 

Table 8.5.3 Ovens: Rebuttable Payback Periods .................................................................. 8-76 

Table 8.5.4 Microwave Ovens: Rebuttable Payback Periods for Energy Factor Levels...... 8-77 

LIST OF FIGURES 

Figure 8.1.1 Flow Diagram of Inputs for the Determination of LCC and PBP ....................... 8-5 

Figure 8.2.1 Electricity Price Trends...................................................................................... 8-35

Figure 8.2.2 Natural Gas Price Trends................................................................................... 8-35 

Figure 8.2.3 Gas Cooktops: Percent of Shipments with Pilots .............................................. 8-47 

Figure 8.2.4 Gas Standard Ovens: Percent of Shipments with Pilots .................................... 8-49 

Figure 8.4.1 Electric Coil Cooktops: Base Case LCC Distribution ....................................... 8-53 

Figure 8.4.2 Electric Smooth Cooktops: Base Case LCC Distribution.................................. 8-53 

Figure 8.4.3 Gas Cooktops: Base Case LCC Distribution ..................................................... 8-54 

Figure 8.4.4 Gas Cooktops: Distribution of LCC Impacts for CSL 2................................... 8-54 

Figure 8.4.5 Gas Cooktops: Distribution of PBPs for CSL 2................................................ 8-55 

Figure 8.4.6 Range of LCC Savings for Electric Coil Cooktops ........................................... 8-57 

Figure 8.4.7 Range of LCC Savings for Electric Smooth Cooktops...................................... 8-57 

Figure 8.4.8 Range of LCC Savings for Gas Cooktops ......................................................... 8-58 

Figure 8.4.9 Range of Payback Periods for Electric Coil Cooktops ...................................... 8-58 

Figure 8.4.10 Range of Payback Periods for Electric Smooth Cooktops................................. 8-59 

Figure 8.4.11 Range of Payback Periods for Gas Cooktops .................................................... 8-59 

Figure 8.4.12 Electric Standard Ovens: Base Case LCC Distribution..................................... 8-60 

Figure 8.4.13 Electric Self-Cleaning Ovens: Base Case LCC Distribution............................. 8-60 

Figure 8.4.14 Gas Standard Ovens: Base Case LCC Distribution ........................................... 8-61 

Figure 8.4.15 Gas Self-Cleaning Ovens: Base Case LCC Distribution ................................... 8-61 

Figure 8.4.16 Gas Standard Ovens: Distribution of LCC Impacts for CSL 6.......................... 8-62 

Figure 8.4.17 Gas Standard Ovens: Distribution of PBPs for CSL 6 ...................................... 8-63 

Figure 8.4.18 Range of LCC Savings for Electric Standard Ovens......................................... 8-66 

Figure 8.4.19 Range of LCC Savings for Electric Self-Cleaning Ovens................................. 8-66 

Figure 8.4.20 Range of LCC Savings for Gas Standard Ovens ............................................... 8-67 

Figure 8.4.21 Range of LCC Savings for Gas Self-Cleaning Ovens ....................................... 8-67 

Figure 8.4.22 Range of Payback Periods for Electric Standard Ovens.................................... 8-68 

Figure 8.4.23 Range of Payback Periods for Electric Self-Cleaning Ovens............................ 8-68 

Figure 8.4.24 Range of Payback Periods for Gas Standard Ovens .......................................... 8-69 

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EERE-2006-STD-0127 COMMENT 64.2
Figure 8.4.25 Range of Payback Periods for Gas Self-Cleaning Ovens .................................. 8-69 

Figure 8.4.26 Microwave Ovens: Base Case LCC Distribution .............................................. 8-70 

Figure 8.4.27 Microwave Ovens: Distribution of LCC Impacts for CSL 1............................. 8-71 

Figure 8.4.28 Microwave Ovens: Distribution of PBPs for CSL 1.......................................... 8-71 

Figure 8.4.29 Range of LCC Savings for Microwave Oven Energy Factor Levels................. 8-72 

Figure 8.4.30 Range of Payback Periods for Microwave Oven Energy Factor Levels ........... 8-73 

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EERE-2006-STD-0127 COMMENT 64.2
CHAPTER 8. LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSIS 

8.1 INTRODUCTION 

This chapter describes the Department of Energy (DOE)’s methodology for analyzing the 

economic impacts of possible energy efficiency standards on individual consumers. The effect 

of standards on individual consumers includes a change in operating expense (usually decreased) 

and a change in purchase price (usually increased). This chapter describes three metrics DOE 

used in the consumer analysis to determine the effect of standards on individual consumers: 

• Life-cycle cost (LCC) is the total consumer expense over the life of an appliance, 

including purchase expense and operating costs (including energy expenditures). DOE 

discounts future operating costs to the time of purchase, and sums them over the lifetime 

of the equipment. 

• Payback period (PBP) measures the amount of time it takes customers to recover the 

assumed higher purchase price of more energy-efficient equipment through lower 

operating costs. 

• Rebuttable payback period is a special case of the PBP. Where LCC and PBP are 

estimated over a range of inputs reflecting actual conditions, rebuttable payback period is 

based on laboratory conditions, specifically DOE test procedure inputs. 

Inputs to the LCC and PBP are discussed in sections 8.2 and 8.3, respectively, of this 

chapter. Results for the LCC and PBP are presented in section 8.4. The rebuttable PBP is 

discussed in section 8.5. Key variables and calculations are presented for each metric. DOE 

performed the calculations discussed here using a series of Microsoft Excel® spreadsheets which 

are accessible on the Internet (http://www.eere.energy.gov/buildings/appliance_standards/). 

Details and instructions for using the spreadsheets are discussed in Appendix 8A. 

The technical support document (TSD) for DOE’s notice of proposed rulemaking 

(NOPR) covered conventional cooking products (i.e., cooktops and ovens), microwave oven 

energy factor (EF), microwave oven standby power consumption, and commercial clothes 

washers (CCW).1

 This chapter presents information and results pertaining solely to conventional 

cooking products and microwave oven EF. The impact of more-efficient equipment on 

microwave oven standby power and CCWs will be addressed in subsequent TSDs. 

8.1.1 General Approach for LCC and PBP Analysis 

Recognizing that several inputs to the determination of consumer LCC and PBP are 

either variable or uncertain, DOE conducted the LCC and PBP analysis by modeling both the 

uncertainty and variability in the inputs using Monte Carlo simulation and probability 

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EERE-2006-STD-0127 COMMENT 64.2
distributions. A detailed explanation of Monte Carlo simulation and the use of probability 

distributions is contained in Appendix 8B. DOE developed LCC and PBP spreadsheet models 

incorporating both Monte Carlo simulation and probability distributions by using Microsoft 

Excel® spreadsheets combined with Crystal Ball® (a commercially available add-in program). 

In addition to characterizing several of the inputs to the analysis with probability 

distributions, DOE also developed a sample of individual households that use each of the 

appliances. The household sample sizes for the residential cooking products are: 2,896 for 

electric cooktops; 1,460 for electric standard ovens; 1,302 for electric self-cleaning ovens; 1,598 

for gas cooktops; 1,082 for gas standard ovens; 373 for gas self-cleaning ovens; and 4,150 for 

microwave ovens. By developing household samples, DOE was able to perform the LCC and 

PBP calculations for each household to account for the variability in energy consumption and/or 

energy price associated with each household. As described in Chapter 6, DOE used the DOE 

Energy Information Administration (EIA)’s 2001 Residential Energy Consumption Survey 

(RECS) to develop household samples for each of the above three sets of products.2 The 2001 

RECS is a national sample survey of housing units that collects statistical information on the 

consumption of and expenditures for energy in housing units along with data on energy-related 

characteristics of the housing units and occupants. The 2001 RECS consists of for 4,822 housing 

units and was constructed by EIA to be a national representation of the household population in 

the U.S. Of the household sub-samples used in the LCC and PBP analysis, only two (for 

dehumidifiers and gas self-cleaning ovens) have a size which is less than 20 percent of the total 

2001 RECS housing unit size. Even so, the potential errors associated with these smaller subsample sizes are not anticipated to be so large as to affect the validity of the results. Specifically, 

the standard error of a sample of size ‘n’ is the sample’s standard deviation divided by the square 

root of ‘n’. For the full 2001 RECS sample the associated standard error is the sample’s standard 

deviation multiplied by 1.5 percent. For the gas self-cleaning oven sub-sample, the associated 

standard error is the sub-sample’s standard deviation multiplied by 4.5 percent. Although the 

standard error of the sub-samples is three times the size of the entire 2001 RECS, it is still less 

than five percent. DOE believes a standard error of less than five percent is still small enough to 

yield meaningful results. Therefore, DOE believes the results generated from the household 

samples for cooking products are representative of U.S. households using these appliances. 

DOE used RECS to establish the variability in annual energy use and energy pricing. By 

using RECS, DOE was able to assign a unique annual energy use and energy price to each 

household in the sample. Due to the large sample of households considered in the LCC and PBP 

analysis, the range of annual energy use and energy prices is quite large (the actual ranges of 

energy consumption were presented and discussed in Chapter 6). Thus, although the annual 

energy use and energy pricing are not uncertain for any particular household, their variability 

across all households contributes to the range of LCCs and PBPs calculated for any particular 

standard level. 

DOE displays the LCC and PBP results as distributions of impacts compared to the 

baseline conditions. Results are presented at the end of this chapter and are based on 10,000 

samples per Monte Carlo simulation run. To illustrate the implications of the analysis, DOE 

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EERE-2006-STD-0127 COMMENT 64.2
generated a frequency chart depicting the variation in LCC and PBP for each standard level 

considered. 

8.1.2 Overview of LCC and PBP Inputs 

The LCC is the total consumer expense over the life of the equipment, including purchase 

expense and operating expense (including energy expenditures). DOE discounts future operating 

expenses to the time of purchase and sums them over the lifetime of the equipment. The PBP is 

the change in purchase expense due to an increased efficiency standard divided by the change in 

annual operating expense that results from the standard. It represents the number of years it will 

take the customer to recover the increased purchase expense through decreased operating 

expenses. 

DOE categorizes inputs to the LCC and PBP analysis as follows: (1) inputs for 

establishing the purchase expense, otherwise known as the total installed cost, and (2) inputs for 

calculating the operating cost. 

The primary inputs for establishing the total installed cost are: 

• Baseline manufacturer cost: The costs incurred by the manufacturer to produce 

equipment meeting existing minimum efficiency standards. 

• Standard-level manufacturer cost increases: The change in manufacturer cost associated 

with producing equipment to meet a particular standard level. 

• Markups and sales tax: The markups and sales tax associated with converting the 

manufacturer cost to a consumer equipment price. The markups and sale tax are 

described in detail in Chapter 7, Markups for Equipment Price Determination. 

• Installation cost: The cost to the consumer of installing the equipment. The installation 

cost represents all costs required to install the equipment other than the marked-up 

consumer equipment price. The installation cost includes labor, overhead, and any 

miscellaneous materials and parts. Thus, the total installed cost equals the consumer 

equipment price plus the installation cost. 

The primary inputs for calculating the operating cost are: 

• Equipment energy consumption: The equipment energy consumption is the site energy 

use associated with operating the equipment. Chapter 6, Energy Use Determination, 

details how DOE determined the equipment energy consumption based on various data 

sources. 

• Equipment efficiency: The equipment efficiency dictates the equipment energy 

consumption associated with standard-level equipment (i.e., equipment with efficiencies 

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EERE-2006-STD-0127 COMMENT 64.2
greater than baseline equipment). Chapter 6, Energy Use Determination, details how 

energy consumption change with increasing equipment efficiency. 

• Energy prices: Energy prices are the prices paid by consumers for energy (i.e., 

electricity, gas, or oil). DOE determined current energy prices based on data from the 

DOE- EIA. 

• Energy price trends: DOE used the EIA Annual Energy Outlook 2009 (AEO2009) to 

forecast energy prices into the future. For the results presented in this chapter, DOE used 

the AEO2009 reference case to forecast future energy prices. 

• Repair and maintenance costs: Repair costs are associated with repairing or replacing 

components that have failed. Maintenance costs are associated with maintaining the 

operation of the equipment. 

• Lifetime: The age at which the equipment is retired from service. 

• Discount rate: The rate at which DOE discounted future expenditures to establish their 

present value. 

Figure 8.1.1 graphically depicts the relationships between the installed cost and operating 

cost inputs for the calculation of the LCC and PBP. In the figure below, the yellow boxes 

indicate the inputs, the green boxes indicate intermediate outputs, and the blue boxes indicate the 

final outputs (the LCC and PBP). 

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EERE-2006-STD-0127 COMMENT 64.2
Baseline 

Manufacturer 

Cost 

Std-Level 

Manufacturer 

Cost 

Manufacturer 

Markup 

Retailer or 

Distributor 

Markup 

Sales Tax 

Installation 

Cost 

Total Installed 

Cost 

Water Prices

 Energy 

Consumption 

Equipment 

Price 

Lifetime 

Operating 

Expense 

Annual Energy 

Expense 

Lifetime Repair and 

Maintenance 

Cost 

Discount Rate 

Energy Price 

Trends 

Annual 

Operating 

Expense 

Payback 

Period 

Life-Cycle 

Cost 

Energy Prices 

Figure 8.1.1 Flow Diagram of Inputs for the Determination of LCC and PBP 

Tables 8.1.1 through 8.1.3 summarize the input values that DOE used to calculate the 

LCC and PBP for cooktops, ovens, and microwave ovens. Each table summarizes the total 

installed cost inputs and the operating cost inputs including the lifetime, discount rate, and 

energy price trends. DOE characterized all of the total cost inputs with single-point values, but 

characterized several of the operating cost inputs with probability distributions that capture the 

input’s uncertainty and/or variability. For those inputs characterized with probability 

distributions, the values provided in the following tables are the average or typical values. Also 

listed in the following tables is the section of the technical support document (TSD) where more 

detailed information on the inputs can be found. 

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EERE-2006-STD-0127 COMMENT 64.2
Table 8.1.1 Cooktops: LCC and PBP Input Summary 

Input Product Class Average or Typical Value Characterization 

TSD Section 

Reference 

Total Installed Cost Inputs 

Baseline 

Manufacturer Cost 

Electric Coil 

Electric Smooth 

Gas 

0.737 EF = $64.72 

0.742 EF = $83.54 

0.156 EF = $83.70 

Single-Point Value 

Single-Point Value 

Single-Point Value 

8.2.1.1 

8.2.1.1 

8.2.1.1 

Standard-Level 

Manufacturer Cost 

Increase 

Electric Coil 

Electric Smooth 

Gas 

0.769 EF = $2.14 

0.753 EF = $155.71 

0.399 EF = $11.30 

0.420 EF = $30.12 

Single-Point Value 

Single-Point Value 

Single-Point Value 

5.5.3 

5.5.3 

5.5.3 

Manufacturer 

Markup All 1.26 Single-Point Value 7.2 

Retailer Markup All Baseline = 1.45 

Incremental = 1.15 Single-Point Value 7.3 

Sales Tax Electric 

Gas 

1.0677 

1.0713 

Single-Point Value 

Single-Point Value 

7.5 

7.5 

Installation Cost All 

Baseline = $146.06 

Gas with electronic ignition = 

$118 for those households 

needing to install an outlet 

Single-Point Value 8.2.1.1 

Operating Cost Inputs 

Usage 

Electric 

Gas 

1.22 meals/day 

1.29 meals/day 

Variability determined from 

household sample. Usage 

ranges from 0 to 4 meals/day 

6.2.1.4 

6.2.1.4 

Annual Energy Use Electric 

Gas 

Baseline use* = 128.2 kWh 

Baseline use* = 2.74 MMBtu 

Variability based on usage 

Variability based on usage 

6.2.1.3 

6.2.1.3 

Energy Prices All Elec = 10.5 – 11.7 ¢/kWh 

Gas = 14.99 $/MMBtu Variability based on region 8.2.2.2 

Repair and 

Maintenance Costs All 

Elec: No cost increase with 

efficiency 

Gas: Standing Pilot Ignition = 

$126 in 10th year; 

Electronic Ignition = $178 in 

10th year 

Single-Point Value 8.2.2.4 

Lifetime 

Electric 19.0 years 

Weibull distribution = 

10 to 28 years 8.2.3.1 

Gas 19.0 years 

Weibull distribution = 

12 to 26 years 8.2.3.1 

Discount Rate All 5.4% Custom distribution 8.2.4 

Energy Price Trend All AEO 2009 Early Release 

Reference Case 

Two sensitivities: 

AEO 2008 High & Low 

Growth Cases 

8.2.2.3 

* Annual use provided for baseline product only. Annual consumption decreases with increased product efficiency. 

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EERE-2006-STD-0127 COMMENT 64.2
Table 8.1.2 Ovens: LCC and PBP Input Summary 

Input Product Class Average or Typical Value Characterization 

TSD Section 

Reference 

Total Installed Cost Inputs 

Baseline 

Manufacturer Cost 

Elec Standard 

Elec Self-Clean 

Gas Standard 

Gas Self-Clean 

0.1066 EF = $137.12 

0.1099 EF = $173.69 

0.0298 EF = $145.43 

0.0540 EF = $206.93 

Single-Point Value 

Single-Point Value 

Single-Point Value 

Single-Point Value 

8.2.1.2 

8.2.1.2 

8.2.1.2 

8.2.1.2 

Standard-Level 

Manufacturer Cost 

Increase 

Elec Standard 

Elec Self-Clean 

Gas Standard 

Gas Self-Clean 

0.1113 EF = $1.53 

0.1163 EF = $4.54 

0.1181 EF = $8.01 

0.1206 EF = $45.16 

0.1209 EF = $48.49 

0.1102 EF = $4.10 

0.1123 EF = $41.26 

0.0536 EF = $11.33 

0.0566 EF = $14.69 

0.0572 EF = $15.71 

0.0593 EF = $36.51 

0.0596 EF = $38.03 

0.0600 EF = $41.44 

0.0583 EF = $14.09 

0.0625 EF = $10.34 

0.0627 EF = $14.45 

0.0632 EF = $15.60 

Single-Point Value 

Single-Point Value 

Single-Point Value 

Single-Point Value 

5.5.3 

5.5.3 

5.5.3 

5.5.3 

Manufacturer 

Markup All 1.26 Single-Point Value 7.2 

Retailer Markup All Baseline = 1.45 

Incremental = 1.15 Single-Point Value 7.3 

Sales Tax 

Elec Standard 

Elec Self-Clean 

Gas Standard 

Gas Self-Clean 

1.0681 

1.0671 

1.0714 

1.0706 

Single-Point Value 

Single-Point Value 

Single-Point Value 

Single-Point Value 

7.5 

7.5 

7.5 

7.5 

Installation Cost All 

Baseline = $146.06 

Gas with electronic or glo-bar 

ignition = $118 for those 

households needing to install 

an outlet 

Single-Point Value 8.2.1.2 

Operating Cost Inputs 

Usage 

Elec Standard 

Elec Self-Clean 

Gas Standard 

Gas Self-Clean 

0.52 meals/day 

0.57 meals/day 

0.49 meals/day 

0.56 meals/day 

Variability determined from 

household sample. Usage 

ranges from 0 to 2 meals/day 

6.2.1.4 

6.2.1.4 

6.2.1.4 

6.2.1.4 

Annual Energy Use Elec Standard 

Elec Self-Clean 

Gas Standard 

Baseline use* = 166.5 kWh 

Baseline use* = 171.0 kWh 

Baseline use* = 1.83 MMBtu 

Variability based on usage 

Variability based on usage 

Variability based on usage 

6.2.1.3 

6.2.1.3 

6.2.1.3 

8-7 

EERE-2006-STD-0127 COMMENT 64.2
Input Product Class Average or Typical Value Characterization 

TSD Section 

Reference 

Gas Self-Clean Baseline use* = 0.86 MMBtu 

= 53.3 kWh Variability based on usage 6.2.1.3 

Energy Prices All Elec = 10.4 – 11.7 ¢/kWh 

Gas = 15.00 – 15.03 $/MMBtu Variability based on region 8.2.2.2 

Repair and 

Maintenance Costs All 

Elec: No cost increase with 

efficiency 

Gas: Standing Pilot Ignition = 

$126 in 10th year; 

Electronic Ignition = $178 in 

10th year; 

Glo-bar Ignition = $147 every 

5th year 

No cost increase with 

efficiency 8.2.2.4 

Lifetime 

Electric 19.0 years 

Weibull distribution = 

10 to 28 years 8.2.3.1 

Gas 19.0 years 

Weibull distribution = 

12 to 26 years 8.2.3.1 

Discount Rate All 5.4% - 5.5% Custom distribution 8.2.4 

Energy Price Trend All AEO 2009 Early Release 

Reference Case 

Two sensitivities: 

AEO 2008 High & Low 

Growth Cases 

8.2.2.3 

* Annual use provided for baseline product only. Annual use decreases with increased product efficiency. 

8-8 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.1.3 Microwave Ovens: LCC and PBP Input Summary 

Input Average or Typical Value Characterization 

TSD Section 

Reference 

Total Installed Cost Inputs 

Baseline Manufacturer 

Cost 0.557 EF = $112.57 Single-Point Value 8.2.1.3 

Standard-Level 

Manufacturer Cost 

Increase 

0.586 EF = $8.14 

0.588 EF = $16.84 

0.597 EF = $30.52 

0.602 EF = $47.95 

Single-Point Value 5.5.3 

Manufacturer Markup 1.26 Single-Point Value 7.2 

Retailer Markup Baseline = 1.45 

Incremental = 1.15 Single-Point Value 7.3 

Sales Tax 1.0689 Single-Point Value 7.5 

Installation Cost $0 Single-Point Value 8.2.1.3 

Operating Cost Inputs 

Usage 0.40 meals/day 

Variability determined from 

household sample. Usage ranges 

from 0 to 4 meals/day 

6.2.2.4 

Annual Energy Use* Baseline use* = 165.8 kWh Variability based on usage 6.2.2.3 

Energy Prices 10.8 ¢/kWh Variability based on region 8.2.2.2 

Repair and Maintenance 

Costs No cost increase with efficiency No cost increase with efficiency 8.2.2.4 

Lifetime 9.0 years 

Weibull distribution = 

7 to 10 years 8.2.3.2 

Discount Rate 5.4% Custom distribution 8.2.4 

Energy Price Trend AEO 2009 Early Release 

Reference Case 

Two sensitivities: 

AEO 2008 High & Low Growth 

Cases 

8.2.2.3 

* Annual use provided for baseline product only. Annual use decreases with increased product efficiency. 

8-9 

EERE-2006-STD-0127 COMMENT 64.2
8.2 LIFE-CYCLE COST INPUTS 

Life-cycle cost is the total customer expense over the life of an appliance, including 

purchase expense and operating costs (including energy expenditures). DOE discounts future 

operating costs to the time of purchase, and sums them over the lifetime of the equipment. DOE 

defines LCC by the following equation: 

N OCt LCC = IC +∑ t (1+ r)

where: 

t=1 

LCC = Life-cycle cost in dollars, 

IC = Total installed cost in dollars, 

∑ = Sum over the lifetime, from year 1 to year N, 

N = Lifetime of appliance in years, 

OC = Operating cost in dollars, 

r = Discount rate, and 

t = Year for which operating cost is being determined. 

Because DOE gathered most of its data for the LCC and PBP analysis in 2006, DOE expresses 

dollar values in 2006$. 

The following sections discuss total installed cost, operating cost, lifetime, and discount 

rate. 

8.2.1 Total Installed Cost Inputs 

DOE defines the total installed cost using the following equation: 

IC = EQP + INST 

where: 

EQP = Equipment price (i.e., customer price for the equipment only), expressed in 

dollars, and 

INST = Installation cost or the customer price to install equipment (i.e., the cost for 

labor and materials), also in dollars. 

The equipment price is based on how the consumer purchases the equipment. As 

discussed in Chapter 7, Markups for Equipment Price Determination, DOE defined markups and 

sales taxes for converting manufacturing costs into consumer equipment prices. 

Table 8.2.1 summarizes the inputs for the determination of total installed cost. 

8-10 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.1 Inputs for Total Installed Cost 

Baseline Manufacturer Cost 

Standard-Level Manufacturer Cost 

Manufacturer Markup 

Retailer or Distributor Markup 

Sales Tax 

Installation Cost 

The baseline manufacturer cost is the cost incurred by the manufacturer to produce 

equipment meeting existing minimum efficiency standards. Standard-level manufacturer cost 

increases are the change in manufacturer cost associated with producing equipment at a standard 

level. Markups and sales tax convert the manufacturer cost to a consumer equipment price. The 

installation cost is the cost to the consumer of installing the equipment and represents all costs 

required to install the equipment other than the marked-up consumer equipment price. The 

installation cost includes labor, overhead, and any miscellaneous materials and parts. Thus, the 

total installed cost equals the consumer equipment price plus the installation cost. DOE 

calculated the total installed cost for baseline products based on the following equation: 

ICBASE = EQPBASE + INSTBASE 

= COSTMFG × MUOVERALL _ BASE + INSTBASE 

where: 

ICBASE = Baseline total installed cost, 

EQPBASE = Consumer equipment price for baseline models, 

INSTBASE = Baseline installation cost, 

COSTMFG = Manufacturer cost for baseline models, and 

MUOVERALL_BASE = Baseline overall markup (product of manufacturer markup, baseline 

retailer or distributor markup, and sales tax). 

DOE calculated the total installed cost for standard-level products based on the following 

equation: 

ICSTD = EQPSTD + INSTSTD 

= (EQP Δ + INST ) BASE + EQPSTD ) ( BASE + ΔINSTSTD 

= ( BASE + INSTBASE EQP )+ ( ΔEQPSTD + ΔINSTSTD ) 

= ICBASE + (ΔCOSTMFG × MUOVERALL _ INCR + ΔINSTSTD ) 

where: 

8-11 

EERE-2006-STD-0127 COMMENT 64.2
ICSTD = Standard-level total installed cost, 

EQPSTD = Consumer equipment price for standard-level models, 

INSTSTD = Standard-level installation cost, 

EQPBASE = Consumer equipment price for baseline models, 

ΔEQPSTD = Change in equipment price for standard-level models, 

INSTBASE = Baseline installation cost, 

ΔINSTSTD = Change in installation cost for standard-level models, 

ICBASE = Baseline total installed cost, 

ΔCOSTMFG = Change in manufacturer cost for standard-level models, and 

MUOVERALL_INCR = Incremental overall markup (product of manufacturer markup, 

incremental retailer or distributor markup, and sales tax). 

The remainder of this section provides information about each of the above input 

variables that DOE used to calculate the total installed cost for cooking products. 

8.2.1.1 Cooktops 

Baseline Manufacturer Cost 

DOE used its 1996 Technical Support Document for Residential Cooking Products to 

develop the baseline manufacturer costs for cooktops.3 As shown in Table 8.2.2, DOE 

developed baseline manufacturer costs for the three cooktop product classes: electric coil, 

electric smooth, and gas. Also included in Table 8.2.2 are the associated baseline energy factors 

and cooking efficiencies. 

Table 8.2.2 Cooktops: Baseline Manufacturer Costs 

Product Class 

Baseline 

Energy Factor 

Baseline 

Cooking Efficiency

Baseline Manufacturer Cost 

 (1990$)* (2006$) 

Electric, Coil 0.737 73.7% $69.06 $64.72 

Electric, Smooth 0.742 74.2% $89.14 $83.54 

Gas 0.156 39.9% $89.09 $83.70 

* Source: U.S. DOE, Technical Support Document for Residential Cooking Products, 1996. 

The manufacturer cost data reported in DOE’s 1996 Technical Support Document for 

Residential Cooking Products are in 1990$. Because DOE conducted the LCC and PBP analysis 

in 2006$, it needs to convert all cost data into 2006$. The last column in Table 8.2.2 shows the 

baseline manufacturer costs in 2006$. To perform the necessary monetary conversion for 

cooking products, DOE used producer price indexes (PPIs) for household cooking appliance 

manufacturers.4

 The PPI is a family of indexes that measure changes in price for inputs into 

production processes, such as labor, raw materials, and purchased parts. Because the PPI 

measures the price change from the perspective of the manufacturer, DOE used the PPI to 

convert the manufacturer price (the manufacturer costs multiplied by the manufacturer markup) 

from 1990$ into 2006$. Specifically, DOE determined the ratio of the 2006 PPI to the 1990 PPI 

8-12 

EERE-2006-STD-0127 COMMENT 64.2
and used it as a multiplicative factor to convert the manufacturer price into 2006$. Table 8.2.3 

shows the 1990 and 2006 PPIs for electric and gas cooking appliance manufacturers. Included in 

the table is the ratio of the two PPI values. 

Table 8.2.3 Cooking Products: Producer Price Indexes 

Industry: Household cooking appliance manufacturers 

Year 

Product: Electric and microwave 

household cooking units and parts 

Series Id: PCU3352213352211 

Product: Gas household units and 

related parts and accessories 

Series Id: PCU3352213352213 

1990 101.8 119.0 

2006 95.5 111.8 

Ratio 0.938 0.939 

Source: U.S. Department of Labor, Bureau of Labor Statistics, Household Cooking Appliance Manufacturers, 

2006. 

Standard-Level Manufacturer Cost Increases 

DOE used its 1996 Technical Support Document for Residential Cooking Products to 

develop manufacturer cost increases associated with increases in product standard levels. Refer 

to Chapter 5, Engineering Analysis, for details. Tables 8.2.4, 8.2,5, and 8.2.6 summarize the 

standard-level manufacturer cost increases for electric coil, electric smooth, and gas cooktops, 

respectively. Also included in each of the tables are the associated baseline energy factors and 

cooking efficiencies. 

Table 8.2.4 Electric Coil Cooktops: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.737 73.7% -

1 0.769 76.9% $2.14 

Table 8.2.5 Electric Smooth Cooktops: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.742 74.2% -

1 0.753 75.3% $155.71 

Table 8.2.6 Gas Cooktops: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.156 39.9% -

1 0.399 39.9% $11.33 

2 0.420 42.0% $30.12 

8-13

EERE-2006-STD-0127 COMMENT 64.2
Overall Markup 

The overall markup is the value determined by multiplying the manufacturer and retailer 

markups and the sales tax together to arrive at a single markup value. In turn, DOE multiplied 

the overall markup by the baseline or standard-level manufacturer cost to arrive at the price paid 

by the consumer for the product. DOE divided the overall markup into a baseline markup (i.e., a 

markup used to convert the baseline manufacturer cost into a consumer price) and an incremental 

markup (i.e., a markup used to convert an incremental manufacturer cost due to a standard level 

into an incremental consumer price). Table 8.2.7 shows the overall markups for electric and gas 

cooktops. Refer to Chapter 7, Markups for Equipment Price Determination, for details. 

Table 8.2.7 Cooktops: Overall Markups 

Electric Coil and Smooth Cooktops Gas Cooktops 

Markup Baseline Incremental Baseline Incremental 

Manufacturer 1.26 1.26 

Retailer 1.45 1.15 1.45 1.15 

Sales Tax 1.0677 1.0713 

Overall 1.95 1.55 1.96 1.55 

Installation Cost 

DOE derived baseline installation costs for cooktops from data in the RS Means 

Mechanical Cost Data, 2005.

5

 This reference provides estimates on the labor required to install 

residential cooking range equipment. Table 8.2.8 summarizes the nationally representative costs 

associated with the installation of a 30-inch, free-standing cooking range as presented in RS 

Means Mechanical Cost Data. DOE decided that the costs of installing a range are 

representative of the costs of installing a cooktop. Table 8.2.21 provides both bare costs (i.e., 

costs before overhead and profit (O&P)) and installation costs including O&P. RS Means 

provides minimum and maximum costs. DOE used the average of the minimum and maximum 

labor costs as its estimate of installation costs for cooktops. DOE used the Consumer Price 

Index (CPI) to convert the costs from 2008$ to 2006$.6 

Table 8.2.8 Cooking Range: Baseline Installation Costs 

Bare Costs (2008$) Including Overhead & Profit (2008$) 

Installation Type Material Labor Total Total Material* Labor** 

Minimum $270 $48.50 $318.50 $375 $240.50 $78.00 

Maximum $1775 $121 $1896 $2175 $1673.50 $222.50 

Average (2008$) $150.25 

Average (2006$)*** $146.06 

* Material costs including O&P equal bare costs plus 10% profit.

** DOE derived labor costs including O&P by subtracting material with O&P from total with O&P. 

*** Converted to 2006$ by multiplying costs in 2008$ by the ratio of 2006 CPI (201.6) to 2007 CPI (207.3). Used

the 2007 CPI due to the unavailability of an annual 2008 CPI value. 

Source: RS Means, Mechanical Cost Data, 2008.

8-14 

EERE-2006-STD-0127 COMMENT 64.2
Based on a supplemental analysis to the 1996 Technical Support Document on 

Residential Cooking Products. DOE determined that only gas cooktops with electronic ignition 

devices would incur added installation costs. DOE conducted an assessment of the National 

Electric Code (NEC) to determine the percent of households with gas cooktops that would 

require an electrical outlet.7 

Starting in 1933, the NEC recommended, but did not require, an outlet installation every 

15 linear feet. The 1935 NEC required that one outlet be installed in each room. Subsequent 

versions of the NEC became more stringent in its outlet installation requirements. The 1940 

NEC required that each room have an outlet installed every 20 linear feet (as measured 

horizontally along the wall at the floor line). The 1956 NEC tightened this requirement to 12 

linear feet. Finally, the 1959 NEC required that the outlets installed in a room result in no point 

in any wall space be more than six feet from a receptacle outlet. To determine how to apply the 

information from the NEC, DOE reviewed the gas cooktop household sample that was developed 

for the LCC and PBP analysis to establish which households may require an outlet installation. 

As reported earlier in section 8.1.1, DOE’s household sample was derived from the 2001 RECS 

and consisted of 1,598 records for gas cooktops. Because RECS specifies the household’s 

vintage or year made, DOE was able to determine the composition of the household sample by 

particular vintage groupings. For gas cooktops, DOE determined that almost 26 percent of the 

sample consisted of households that were built before 1940, almost 28 percent fell in the 1940­

1959 age group, and the remaining 46 percent were built in 1960 or later. DOE also determined 

that every household in each sample had an electric refrigerator. Therefore, DOE concluded that 

every household had at least one electrical outlet in the kitchen. But because prior to 1959 the 

NEC did not require outlets to be spaced every six feet, DOE assumed that households prior to 

1960, representing 54 percent of the gas cooktop sample, may need an additional outlet installed 

in the kitchen to accommodate a gas cooking product that would need electricity to operate. 

To determine the percentage of households that may actually require an outlet 

installation, DOE utilized the base case efficiency distribution for gas cooktops. As will be 

discussed in greater detail in section 8.2.6, the base case efficiency distribution identifies the 

percentage of shipments at certain efficiency levels. For gas cooktops, DOE estimated that 6.8 

percent of shipments in 2005 were equipped with standing pilot ignition systems. Obviously, 

only those households that purchase gas cooking products with standing pilots would possibly be 

forced into installing an electrical outlet to accommodate products that require electricity to 

operate. DOE was not able to identify any information to specify the reasons why consumers 

purchase gas cooktops with standing pilots. For example, it is unknown if consumers only 

purchase gas cooking products with standing pilots because an electrical outlet is not nearby. 

Therefore, for purposes of conducting the LCC and PBP analysis, DOE allocated shipments of 

gas cooking products with standing pilots to all households irrespective of the possible need to 

install an electrical outlet. DOE allocated these shipments assuming that the percentage of the 

housing stock purchasing gas cooktops with pilots is equal to the percentage of products still 

being shipped with standing pilots. Because 54 percent of the gas cooktop household sample is 

comprised of households built prior to 1960, these households are slightly more likely to be 

allocated a product with a standing pilot. Because DOE could not conclusively determine 

8-15 

EERE-2006-STD-0127 COMMENT 64.2
whether pre-1960 households would absolutely require the installation of an outlet, DOE 

assumed that an outlet would need to be installed to accommodate a gas cooking product that 

would require electricity to operate. Based on the above percentages of shipments with standing 

pilots and households built prior to 1960, DOE calculated that 3.7 percent of the overall gas 

cooktop household sample (54 percent of households multiplied by 6.8 percent of shipments) 

would need to install an electrical outlet to accommodate a gas cooktop that requires electricity 

to operate. 

DOE based the type of electrical outlet and the cost of installing it on the requirements of 

the NEC. As noted above, DOE estimated that only pre-1960 households would need to install 

an electrical outlet to accommodate a gas cooking product that needs electricity to operate. 

Based on the NEC, not until 1962 were branch electrical circuits required to include a grounding 

conductor or ground path to which the grounding contacts of the receptacle could be connected. 

Therefore, because a ground-fault circuit-interrupter (GFCI) outlet may need to be installed, 

DOE based its installation costs solely on the installation of a GFCI outlet in a finished space. 

DOE derived its estimates based on the grounding of the outlet to a water pipe in the kitchen 

rather than back to a fuse box or circuit breaker panel. DOE estimated the costs based on the 

installation of the following components: (1) a 15-amp GFCI receptacle with 20 feet of electrical 

metallic tubing; (2) 25 feet of copper wire for grounding; and (3) a bronze clamp for a half-inch 

diameter water price for grounding. DOE relied on data from the RS Means Mechanical Cost 

Data to estimate the installation cost. Table 8.2.9 provides both the bare costs and the total costs 

including O&P for the installation of a 15-amp GFCI receptacle. Also included in Table 8.2.9 

are the costs associated with installing the clamp and wire necessary for grounding, which were 

based on the 2003 version of the RS Means Mechanical Cost Data.

8 DOE used the CPI to 

convert the costs from 2008$ and 2003$ to 2006$. Because the RS Means Mechanical Cost 

Data covers large projects totaling at least $10,000, DOE added an electrician’s trip charge of 

$21 to the installation cost.9

 The resulting installation cost determined by DOE to install an 

electrical outlet is $235. 

8-16 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.9 Installation Cost for an Electrical Outlet 

Indiv. 

Line # Description Crew 

Daily 

Output 

PersonHours Unit Mat. Labor Equip. Total 

Total 

incl. 

O&P 

2008 Mechanical Cost Data: 2008 Base Costs 

4380 

GFI, 15 amp 

recpt., EMT & 

wire 

1 

Elect 4.71 1.699 Ea. $60.50 $77.50 $0 $138 $182 

Average (2006$)* $182 

2003 Mechanical Cost Data: 2003 Bare Costs 

4020 

Clamp, bronze, 1⁄2” 

diameter 1 Elect 32 0.25 Ea. $3.81 $9.40 $0 $13.21 $18.25 

Average (2006$)** $21.75 

4030 

Bare copper wire, 

#14 solid 1 Elect 14 0.571 C.L.F. $2.75 $21.50 $0 $24.25 $35.00 

Average (2006$)** $10.52 

Residential Electrician Trip Charge (2006$) $20.84 

Total Installation Cost (2006$) $235.12 

* Cost in 2008$ assumed to be representative of 2006$. 

** Converted to 2006$ by multiplying costs in 2003$ by the ratio of 2006 CPI (201.6) to 2003 CPI (184.0). Bare 

copper wire costs reduced by 75% to account for installation of 25 feet of wire. 

Sources: Bare Costs: RS Means, Mechanical Cost Data, 2008 and 2003. Trip Charge: PAS Publications, 2008. 

As will be discussed later in section 8.2.6, the only gas cooktops that are still shipped 

with standing pilots are those in gas ranges (comprised of a cooktop and standard oven). 

Therefore, the cost of any outlet installation is effectively shared between the cooktop and the 

oven. Thus, the resulting cost for a gas cooktop consumer needing to install an electrical outlet 

is 1⁄2 of $235 or $118. 

As discussed above, DOE estimated that 54 percent value of all households with gas 

cooktops need to install an electrical outlet to accommodate a gas cooktop that needs electricity 

to operate. As a result, the average installation cost for households still purchasing gas cooktops 

with standing pilots is 54 percent of $118 or $63. 

Total Installed Cost 

The total installed cost is the sum of the consumer equipment price and the installation 

cost. Refer back to section 8.2.1 to see the equations DOE used to calculate the total installed 

cost for baseline and standard-level products. 

Tables 8.2.10, 8.2.11, and 8.2.12 present the consumer equipment prices, installation 

costs, and total installed costs for the electric coil, electric smooth, and gas cooktop product 

classes, respectively. Prices and costs are presented at the baseline level and each standard level. 

8-17 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.10 Electric Coil Cooktops: Consumer Equipment Prices, Installation Costs, and 

Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.737 $126.37 $146.06 $272.43 

1 0.769 $129.68 $146.06 $275.74 

Table 8.2.11 Electric Smooth Cooktops: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.742 $163.12 $146.06 $309.18 

1 0.753 $404.01 $146.06 $550.07 

Table 8.2.12 Gas Cooktops: Consumer Equipment Prices, Installation Costs, and Total 

Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.156 $163.82 $146.06 $309.88 

1 0.399 $181.41 $209.15* $390.56 

2 0.420 $210.57 $209.15* $419.72 

* Added installation cost of $63 is the average cost to gas cooktop consumers that still purchase products with 

standing pilots. 

8.2.1.2 Ovens 

Baseline Manufacturer Cost 

DOE used its 1996 Technical Support Document for Residential Cooking Products to 

develop the baseline manufacturer costs for ovens.3 As shown in Table 8.2.13, DOE developed 

baseline manufacturer costs for the four oven product classes: electric standard (non-selfcleaning), electric self-cleaning, gas standard, and gas self-cleaning. Also included in Table 

8.2.13 are the associated baseline energy factors and cooking efficiencies. 

8-18 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.13 Ovens: Baseline Manufacturer Costs 

Product Class 

Baseline 

Energy Factor 

Baseline 

Cooking Efficiency

Baseline Manufacturer Cost 

 (1990$)* (2006$) 

Electric, Standard 0.1066 12.2% $146.17 $137.12 

Electric, Self-Cleaning 0.1099 13.8% $185.15 $173.69 

Gas, Standard 0.0298 5.9% $154.80 $145.43 

Gas, Self-Cleaning 0.0540 7.1% $220.26 $206.93 

*Source: U.S. DOE, Technical Support Document for Residential Cooking Products, 1996. 

The manufacturer cost data reported in DOE’s 1996 Technical Support Document for 

Residential Cooking Products are in 1990$. Because DOE conducted the LCC and PBP analysis 

in 2006$, it needs to convert all cost data into 2006$. The last column in Table 8.2.13 shows the 

baseline manufacturer costs in 2006$. To perform the necessary monetary conversion for 

cooking products, DOE used PPIs for household cooking appliance manufacturers.4 Refer back 

to Table 8.2.3 to review the PPIs that DOE used to perform the conversions. 

Standard-Level Manufacturer Cost Increases 

DOE developed manufacturer cost increases associated with increases in product 

standard levels through the use of its 1996 Technical Support Document for Residential Cooking 

Products. Refer to Chapter 5, Engineering Analysis, for details. Tables 8.2.14 through 8.2.17 

summarize the standard-level manufacturer cost increases for electric standard, electric selfcleaning, gas standard, and gas self-cleaning ovens, respectively. Also included in each of the 

tables are the associated baseline energy factors and cooking efficiencies. 

Table 8.2.14 Electric Standard Ovens: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.1066 12.2% -

1 0.1113 12.8% $1.53 

2 0.1163 13.4% $4.54 

3 0.1181 13.7% $8.00 

4 0.1206 14.0% $45.16 

5 0.1209 14.1% $48.49 

Table 8.2.15 Electric Self-Cleaning Ovens: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.1099 13.8% -

1 0.1102 13.8% $4.10 

2 0.1123 14.2% $41.26 

8-19 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.16 Gas Standard Ovens: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.0298 5.9% -

1* 0.0536 5.8% $11.33 

2 0.0566 6.1% $14.69 

3 0.0572 6.2% $15.71 

4 0.0593 6.5% $36.51 

5 0.0596 6.5% $38.03 

6 0.0600 6.6% $41.44 

1a* 0.0583 5.8% $14.09 

* Levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate the need for a standing 

pilot—but the technologies for each design are different. Level 1 is a hot surface ignition device while level 1a 

is a spark ignition device. 

Table 8.2.17 Gas Self-Cleaning Ovens: Standard-Level Manufacturer Cost Increases 

Standard Level 

Energy 

Factor 

Cooking 

Efficiency 

Standard-Level 

Manufacturer Cost Increase (2006$) 

Baseline 0.0540 7.1% -

1 0.0625 8.8% $10.34 

2 0.0627 8.8% $14.45 

3 0.0632 8.9% $15.60 

Overall Markup 

As described earlier for cooktops, the overall markup is the value determined by 

multiplying the manufacturer and retailer markups and the sales tax together to arrive at a single 

markup value. Table 8.2.18 shows the overall baseline and incremental markups for electric and 

gas ovens. Refer to Chapter 7, Markups for Equipment Price Determination, for details. 

Table 8.2.18 Ovens: Overall Markups 

Electric Ovens Gas Ovens 

Standard Self-Clean Standard Self-Clean 

Markup Baseline Incr. Baseline Incr. Baseline Incr. Baseline Incr. 

Manufacturer 1.26 1.26 1.26 1.26 

Retailer 1.45 1.15 1.45 1.15 1.45 1.15 1.45 1.15 

Sales Tax 1.0681 1.0671 1.0714 1.0706 

Overall 1.95 1.55 1.95 1.55 1.96 1.55 1.96 1.55 

Installation Cost 

Using the same methodology and data as described earlier for cooktops, DOE derived 

baseline installation costs for ovens based on data in the RS Means Mechanical Cost Data, 2008. 

8-20 

EERE-2006-STD-0127 COMMENT 64.2
Refer back to Table 8.2.8 to review the installation costs DOE used for cooking ranges. DOE 

used the cooking range installation cost data to estimate its installation costs for ovens. 

As it did for cooktops, DOE based its installation costs for oven standard levels on a 

supplemental analysis to the 1996 Technical Support Document on Residential Cooking 

Products. In the supplemental analysis, DOE determined that only gas standard ovens with 

electric or electronic ignition devices would incur added installation costs. DOE used the same 

methodology and data as described earlier for gas cooktops to estimate the increased installation 

costs for gas standard ovens. 

As discussed previous in section 8.2.1.2 for gas cooktops, DOE used the information 

from the NEC to determine which gas cooktop households may require the installation of an 

electrical outlet. DOE applied this same NEC information to the gas standard oven household 

sample that was developed for the LCC and PBP analysis to establish which households may 

require an outlet installation. As reported earlier in section 8.1.1, DOE’s household sample was 

derived from the 2001 RECS and consisted of 1,082 records for gas standard ovens. Because 

RECS specifies the household’s vintage or year made, DOE was able to determine the 

composition of the household sample by particular vintage groupings. For gas standard ovens, 

DOE determined that almost 28 percent of the sample consisted of households that were built 

before 1940, almost 29 percent fell in the 1940-1959 age group, and the remaining 43 percent 

were built in 1960 or later. DOE also determined that every household in each sample had an 

electric refrigerator. Therefore, DOE concluded that every household had at least one electrical 

outlet in the kitchen. But because prior to 1959 the NEC did not require outlets to be spaced 

every six feet, DOE assumed that households prior to 1960, representing 57 percent of the gas 

cooktop sample, may need an additional outlet installed in the kitchen to accommodate a gas 

cooking product that would need electricity to operate. 

To determine the percentage of households that may actually require an outlet 

installation, DOE utilized the base case efficiency distribution for gas standard ovens. As will be 

discussed in greater detail in section 8.2.6, the base case efficiency distribution identifies the 

percentage of shipments at certain efficiency levels. For gas standard ovens, DOE estimated that 

17.6 percent of shipments in 2005 were equipped with standing pilot ignition systems. 

Obviously, only those households that purchase gas cooking products with standing pilots would 

possibly be forced into installing an electrical outlet to accommodate products that require 

electricity to operate. DOE was not able to identify any information to specify the reasons why 

consumers purchase gas standard ovens with standing pilots. For example, it is unknown if 

consumers only purchase gas cooking products with standing pilots because an electrical outlet is 

not nearby. Therefore, for purposes of conducting the LCC and PBP analysis, DOE allocated 

shipments of gas cooking products with standing pilots to all households irrespective of the 

possible need to install an electrical outlet. DOE allocated these shipments assuming that the 

percentage of the housing stock purchasing gas standard ovens with pilots is equal to the 

percentage of products still being shipped with standing pilots. Because 57 percent of the gas 

standard oven household sample is comprised of households built prior to 1960, these 

households are slightly more likely to be allocated a product with a standing pilot. Because DOE 

could not conclusively determine whether pre-1960 households would absolutely require the 

8-21 

EERE-2006-STD-0127 COMMENT 64.2
installation of an outlet, DOE assumed that an outlet would need to be installed to accommodate 

a gas cooking product that would require electricity to operate. Based on the above percentages 

of shipments with standing pilots and households built prior to 1960, DOE calculated that 10 

percent of the overall gas standard oven household sample (57 percent of households multiplied 

by 17.6 percent of shipments) would need to install an electrical outlet to accommodate a gas 

standard oven that requires electricity to operate. 

As shown previously in Table 8.2.9, the installation cost of adding an electrical outlet is 

$235. As will be discussed later in section 8.2.6, the only gas standard ovens that are still 

shipped with standing pilots are those in gas ranges (comprised of a cooktop and standard oven). 

Therefore, the cost of any outlet installation is effectively shared between the oven and the 

cooktop. Thus, the resulting cost for a gas standard oven consumer needing to install an 

electrical outlet is 1⁄2 of $235 or $118. 

As discussed above, DOE estimated that 57 percent value of all households with gas 

cooktops need to install an electrical outlet to accommodate a gas cooktop that needs electricity 

to operate. As a result, the average installation cost for households still purchasing gas standard 

ovens with standing pilots is 57 percent of $118 or $67. 

Total Installed Cost 

The total installed cost is the sum of the consumer equipment price and the installation 

cost. Refer back to section 8.2.1 to review the equations that DOE used to calculate the total 

installed cost for baseline and standard-level products. 

Tables 8.2.19 through 8.2.22 present the consumer equipment price, installation costs, 

and total installed costs for the electric standard, electric self-cleaning, gas standard, and gas selfcleaning oven product classes. Prices and costs are presented at the baseline level and each 

standard level. 

Table 8.2.19 Electric Standard Ovens: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.1066 $267.58 $146.06 $413.64 

1 0.1113 $269.94 $146.06 $416.00 

2 0.1163 $274.60 $146.06 $420.66 

3 0.1181 $279.96 $146.06 $426.02 

4 0.1206 $337.47 $146.06 $483.53 

5 0.1209 $342.62 $146.06 $488.68 

8-22 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.20 Electric Self-Cleaning Ovens: Consumer Equipment Prices, Installation 

Costs, and Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.1099 $338.63 $146.06 $484.69 

1 0.1102 $344.97 $146.06 $491.03 

2 0.1123 $402.43 $146.06 $548.49 

Table 8.2.21 Gas Standard Ovens: Consumer Equipment Prices, Installation Costs, and 

Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.0298 $284.26 $146.06 $430.32 

1* 0.0536 $301.85 $212.92** $514.77 

2 0.0566 $307.07 $212.92** $519.99 

3 0.0572 $308.65 $212.92** $521.57 

4 0.0593 $340.94 $212.92** $553.86 

5 0.0596 $343.30 $212.92** $556.22 

6 0.0600 $348.60 $212.92** $561.52 

1a* 0.0583 $306.14 $212.92** $519.06 

* Levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate the need for a 

standing pilot—but the technologies for each design are different. Level 1 is a hot surface ignition device 

while level 1a is a spark ignition device. 

** Added installation cost of $67 is the average cost to gas standard oven consumers that still purchase products 

with standing pilots. 

Table 8.2.22 Gas Self-Cleaning Ovens: Consumer Equipment Prices, Installation Costs, 

and Total Installed Costs 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.0540 $404.17 $146.06 $550.23 

1 0.0625 $420.22 $146.06 $566.28 

2 0.0627 $426.59 $146.06 $572.65 

3 0.0632 $428.36 $146.06 $574.43 

8-23 

EERE-2006-STD-0127 COMMENT 64.2
8.2.1.3 Microwave Ovens 

Baseline Manufacturer Cost 

DOE used its 1996 Technical Support Document for Residential Cooking Products to 

develop the baseline manufacturer costs for microwave ovens.3 Table 8.2.23 provides this 

baseline manufacturer cost for microwave ovens. Also included in Table 8.2.23 is the associated 

baseline energy factor and cooking efficiency. 

Table 8.2.23 Microwave Ovens: Baseline Manufacturer Costs 

Product Class 

Baseline 

Energy Factor 

Baseline 

Cooking Efficiency

Baseline Manufacturer Cost 

 (1990$)* (2006$) 

Microwave Ovens 0.557 55.7% $120.00 $112.57 

* Source: U.S. DOE, Technical Support Document for Residential Cooking Products, 1996. Table 1.17. 

The manufacturer cost data reported in DOE’s 1996 Technical Support Document for 

Residential Cooking Products are in 1990$. Because DOE conducted the LCC and PBP analysis 

in 2006$, it needs to convert all cost data into 2006$. The last column in Table 8.2.23 shows the 

baseline manufacturer costs in 2006$. To perform the necessary monetary conversion for 

cooking products, DOE used PPIs for household cooking appliance manufacturers.4 Refer back 

to Table 8.2.3 to review the PPIs that DOE used to perform the conversions. 

Standard-Level Manufacturer Cost Increases 

DOE developed manufacturer cost increases associated with increases in product 

standard levels through the use of its 1996 Technical Support Document for Residential Cooking 

Products. Refer to Chapter 5, Engineering Analysis, for details. Table 8.2.24 summarizes the 

standard-level manufacturer cost increases for microwave ovens. 

Table 8.2.24 Microwave Ovens: Standard-Level Manufacturer Cost Increases for Energy 

Factor Levels 

Standard Level 

Energy 

Factor Cooking Efficiency 

Standard-Level 

Manufacturer Cost Increase 

(2006$) 

Baseline 0.557 55.7% -

1 0.586 58.6% $8.14 

2 0.588 58.8% $16.84 

3 0.597 59.7% $30.52 

4 0.602 60.2% $47.95 

Overall Markup 

As described earlier for cooktops, the overall markup is the value determined by 

multiplying the manufacturer and retailer markups and the sales tax together to arrive at a single 

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EERE-2006-STD-0127 COMMENT 64.2
markup value. Table 8.2.25 shows the overall baseline and incremental markups for microwave 

ovens. Refer to Chapter 7, Markups for Equipment Price Determination, for details. 

Table 8.2.25 Microwave Ovens: Overall Markups 

Markup Baseline Incremental 

Manufacturer 1.26 

Retailer 1.45 1.15 

Sales Tax 1.0689 

Overall 1.95 1.55 

As described earlier for cooktops, the manufacturer cost data reported in DOE’s 1996 

Technical Support Document for Residential Cooking Products are in 1990$. Because DOE 

conducted the LCC and PBP analysis in 2006$, it needs to covert all cost data into 2006$. To 

perform the necessary monetary conversion for cooking products, DOE used PPIs that are 

applicable to household cooking appliance manufacturers. Refer back to Table 8.2.3 to review 

the 1990 and 2006 PPIs for electric cooking appliance manufacturers that DOE used to convert 

manufacturer microwave oven prices from 1990$ to 2006$. 

Installation Cost 

Based on its 1996 Technical Support Document on Residential Cooking Products, DOE 

did not allocate any installation costs for baseline and standard-level microwave ovens. 

Total Installed Cost 

The total installed cost is the sum of the consumer equipment price and the installation 

cost. Refer back to section 8.2.1 to see the equations that DOE used to calculate the total 

installed cost for baseline and standard-level products. 

Table 8.2.26 presents the consumer equipment prices, installation costs, and total 

installed costs for microwave ovens. Prices and costs are presented at the baseline level and each 

standard level. 

Table 8.2.26 Microwave Ovens: Consumer Equipment Prices, Installation Costs, and 

Total Installed Costs for Energy Factor Levels 

Standard 

Level 

Energy 

Factor 

Equipment Price 

(2006$) 

Installation Cost 

(2006$) 

Total Installed 

Cost 

(2006$) 

Baseline 0.557 $219.85 $0.00 $219.85 

1 0.586 $232.46 $0.00 $232.46 

2 0.588 $245.93 $0.00 $245.93 

3 0.597 $267.12 $0.00 $267.12 

4 0.602 $294.11 $0.00 $294.11 

8-25 

EERE-2006-STD-0127 COMMENT 64.2
8.2.2 Operating Cost Inputs 

DOE defines the operating cost by the following equation: 

OC = EC + RC + MC 

where: 

EC = Energy expenditure associated with operating the equipment, 

RC = Repair cost associated with component failure, and 

MC = Service cost for maintaining equipment operation. 

Table 8.2.27 shows the inputs for determining the operating costs. The inputs listed in 

Table 8.2.27 are also necessary for determining lifetime operating expenses, which include the 

energy price trends, product lifetime, discount rate, and effective date of the standard. 

Table 8.2.27 Inputs for Operating Cost 

Annual Energy Consumption 

Energy Prices 

Repair and Maintenance Costs 

Energy Price Trends 

Product Lifetime 

Discount Rate 

Effective Date of Standard 

The annual energy consumption is the site energy use associated with operating the 

equipment. The annual energy consumption vary with the product efficiency. That is, the 

energy consumption associated with standard-level equipment (i.e., equipment with efficiencies 

greater than baseline equipment) are less than the consumptions associated with baseline 

equipment. Energy prices are the prices paid by consumers for energy (i.e., electricity, gas, or 

oil). Multiplying the annual energy consumption by the energy price yields the annual energy 

cost. Repair costs are associated with repairing or replacing components that have failed. 

Maintenance costs are associated with maintaining the operation of the equipment. DOE used 

energy price trends to forecast energy prices into the future and, along with the product lifetime 

and discount rate, to establish the lifetime energy costs. The product lifetime is the age at which 

the equipment is retired from service. The discount rate is the rate at which DOE discounted 

future expenditures to establish their present value. DOE calculated the operating cost for 

baseline products based on the following equation: 

OC BASE = EC BASE + RC BASE + MC BASE = AEC BASE × PRICE ENERGY + RC BASE + MC BASE 

where: 

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EERE-2006-STD-0127 COMMENT 64.2
__ 

OCBASE = Baseline operating cost, 

ECBASE = Energy expenditure associated with operating the baseline equipment, 

RCBASE = Repair cost associated with component failure for the baseline 

equipment, 

MCBASE = Service cost for maintaining baseline equipment operation, 

AECBASE = Annual energy consumption for baseline equipment, and 

PRICEENERGY = Energy price. 

DOE calculated the operating cost for standard-level products based on the following equation: 

OC STD = EC STD + RC STD + MC STD = AEC STD × PRICE ENERGY + RC STD + MC STD 

= (AEC BASE ΔAEC STD )× PRICE ENERGY + (RC BASE + ΔRC STD ) + (MC BASE + ΔMC STD )

where: 

OCSTD = Standard-level operating cost, 

ECSTD = Energy expenditure associated with operating standard-level equipment, 

RCSTD = Repair cost associated with component failure for standard-level 

equipment, 

MCSTD = Service cost for maintaining standard-level equipment operation, 

AECSTD = Annual energy consumption for standard-level equipment, 

PRICEENERGY = Energy price, 

ΔAECSTD = Change in annual energy consumption caused by standard-level 

equipment, 

ΔRCSTD = Change in repair cost caused by standard-level equipment, and 

ΔMCSTD = Change in maintenance cost caused by standard-level equipment. 

The remainder of this section provides information about each of the above input 

variables that DOE used to calculate the operating costs for cooking products. 

8.2.2.1 Annual Energy Consumption 

Chapter 6, Energy Use Determination, details how DOE determined the annual energy 

consumption for baseline and standard-level products. 

As described in Chapter 6 and the beginning of this chapter in section 8.1.1, in the case of 

cooking products, DOE developed a sample of individual households that use each of the 

appliances. By developing household samples, DOE was able to perform the LCC and PBP 

calculations for each household to account for the variability in both energy use and energy price 

associated with each household. DOE used EIA’s 2001 RECS to develop the household samples 

and, in turn, to establish the variability in both annual energy consumption and energy pricing. 

Refer back to Chapter 6, sections 6.2.1.4 and 6.2.2.4 to review the variability of annual energy 

consumption for cooktops and ovens and microwave ovens, respectively. 

8-27 

EERE-2006-STD-0127 COMMENT 64.2
The tables presented below are based on the energy use determination analysis described 

in Chapter 6. Keep in mind that the annual energy consumption values in the tables below are 

averages. DOE captured the variability in energy consumption when it conducted its LCC and 

PBP analysis. 

Cooktops 

Tables 8.2.28, 8.2.29, and 8.2.30 provide the average annual energy consumption by 

efficiency level for electric coil, electric smooth, and gas cooktops. Refer back to section 6.2.1.3 

from Chapter 6 for more details on how DOE determined the annual energy consumption for 

cooktops. 

Table 8.2.28 Electric Coil Cooktops: Annual Energy Consumption by Efficiency Level 

Standard Level Energy Factor 

Annual Energy Consumption 

kWh/year 

Baseline 0.737 128.2 

1 0.769 122.9 

Table 8.2.29 Electric Smooth Cooktops: Annual Energy Consumption by Efficiency Level 

Standard Level Energy Factor 

Annual Energy Consumption 

kWh/year 

Baseline 0.742 128.2 

1 0.753 126.3 

Table 8.2.30 Gas Cooktops: Annual Energy Consumption by Efficiency Level 

Standard 

Level 

Energy 

Factor 

Cooking 

Efficiency 

Cooking Pilot* Total 

MMBtu/year MMBtu/year MMBtu/year 

Baseline 0.156 39.9% 0.72 2.01 2.74 

1 0.399 39.9% 0.72 - 0.72 

2 0.420 42.0% 0.69 - 0.69 

* Pilot light consumption based on the use of two pilot lights that each use 115 Btu/hr. 

Ovens 

Tables 8.2.31, 8.2.32, 8.2.33, and 8.2.34 provide the average annual energy consumption 

by efficiency level for electric standard, electric self-cleaning, gas standard, and gas self-cleaning 

ovens. Refer back to section 6.2.1.3 from Chapter 6 for more details on how DOE determined 

the annual energy consumption for ovens. 

8-28 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.31 Electric Standard Ovens: Annual Energy Consumption by Efficiency Level 

Standard Energy Cooking Cooking Clock†

 Total 

Level Factor Efficiency kWh/year kWh/year kWh/year 

Baseline 0.1066 12.2% 132.4 34.2 166.5 

1 0.1113 12.8% 125.9 34.2 160.1 

2 0.1163 13.4% 119.7 34.2 153.9 

3 0.1181 13.7% 117.6 34.2 151.8 

4 0.1206 14.0% 70.7 34.2 149.0 

5 0.1209 14.1% 70.6 34.2 148.6 

†

 Clock energy consumption based on clock power of 3.9 Watts. 

Table 8.2.32 Electric Self-Cleaning Ovens: Annual Energy Consumption by Efficiency 

Level 

Standard 

Level 

Energy 

Factor 

Cooking 

Efficiency 

Cooking Self-Clean* Clock†

 Total 

kWh/year kWh/year kWh/year kWh/year 

Baseline 0.1099 13.8% 116.6 21.1 33.3 171.0 

1 0.1102 13.8% 116.2 21.1 33.3 170.6 

2 0.1123 14.2% 113.5 21.1 33.3 167.9 

* Self-cleaning energy consumption based on 5.286 kWh/cycle and 4 self-cleaning cycles per year. 

† Clock energy consumption based on clock power of 3.8 Watts. 

Table 8.2.33 Gas Standard Ovens: Annual Energy Consumption by Efficiency Level 

Standard 

Level 

Energy 

Factor 

Cooking 

Efficiency 

Cooking* Ignition** Total 

MMBtu/yr kWh/yr MMBtu/yr kWh/yr MMBtu/yr kWh/yr 

Baseline 0.0298 5.9% 0.82 - 1.01 - 1.83 0.0 

1*** 0.0536 5.8% 0.84 - - 21.1 0.84 21.1 

2 0.0566 6.1% 0.80 - - 21.1 0.80 21.1 

3 0.0572 6.2% 0.79 - - 21.1 0.79 21.1 

4 0.0593 6.5% 0.75 1.8 - 21.1 0.75 22.9 

5 0.0596 6.5% 0.75 1.8 - 21.1 0.75 22.9 

6 0.0600 6.6% 0.74 1.8 - 21.1 0.74 22.9 

1a*** 0.0583 5.8% 0.84 - - - 0.84 0.0 

* Electrical energy consumption for cooking due to forced convection fan. Measured test energy use of 15 W-hr. 

** Gas energy consumption for ignition based on use of one pilot light that uses 115 Btu/hr. 

 Electrical energy consumption due to hot surface ignition device. Measured test energy use of 176 W-hr. 

*** Levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate the need for a standing 

pilot—but the technologies for each design are different. Level 1 is a hot surface ignition device while level 1a 

is a spark ignition device. 

8-29 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.34 Gas Self-Cleaning Ovens: Annual Energy Consumption by Efficiency Level 

Std 

Level 

Energy 

Factor 

Cooking 

Effcy 

Cooking* Self-Clean** Ignition*** Clock†

 Total 

MMBtu/yr kWh/yr MMBtu/yr kWh/yr kWh/yr kWh/yr MMBtu/yr kWh/yr 

Baseline 0.0540 7.1% 0.68 - 0.17 0.7 21.1 31.5 0.86 53.3 

1 0.0625 8.8% 0.56 1.8 0.17 0.7 21.1 31.5 0.73 55.1 

2 0.0627 8.8% 0.55 1.8 0.17 0.7 21.1 31.5 0.73 55.1 

3 0.0632 8.9% 0.55 1.8 0.17 0.7 21.1 31.5 0.72 55.1 

* Electrical energy consumption for cooking due to forced convection fan. Measured test energy use of 15 W-hr. 

** Self-cleaning energy consumption based on gas use of 43,158 Btu/cycle, electrical use of 0.171 kWh/cycle, 

 and 4 self-cleaning cycles per year. 

*** Electrical energy consumption due to hot surface ignition device. Measured test energy use of 176 W-hr. 

† Clock energy consumption based on clock power of 3.6 Watts. 

Microwave Ovens 

Table 8.2.35 provides the average annual energy consumption by efficiency level for 

microwave ovens. Refer back to section 6.2.2.3 from Chapter 6 for more details on how DOE 

determined the annual energy consumption for microwave ovens. 

Table 8.2.35 Microwave Ovens: Annual Energy Consumption by Energy Factor Level 

Standard 

Level 

Energy 

Factor 

Cooking Consumption Standby Power Consumption Total Energy 

Consumption 

Efficiency 

Energy Use Standby Power Energy Use* 

kWh/year W kWh/year kWh/year 

Baseline 0.557 55.7% 131.0 2.83 24.6 155.6 

1 0.586 58.6% 124.5 2.83 24.6 149.1 

2 0.588 58.8% 124.1 2.83 24.6 148.7 

3 0.597 59.7% 122.2 2.83 24.6 146.8 

4 0.602 60.2% 121.2 2.83 24.6 145.8 

* Annual standby power energy consumption based on 8689 standby hours per year. 

8.2.2.2 Energy Prices 

DOE derived energy prices for 13 geographic areas in the U.S. Using these data, DOE 

analyzed the variability of energy prices at the regional level for cooking products. 

DOE used RECS to develop a sample of individual households that use each of the 

appliances. By developing household samples, DOE was able to perform the LCC and PBP 

calculations for each household to account for the regional variability in energy prices associated 

with each household. 

The methodology that DOE used for deriving the energy prices is presented below. 

Included are tables that summarize the regional energy prices for each product. 

8-30 

EERE-2006-STD-0127 COMMENT 64.2
Energy Prices 

DOE derived average energy prices from data from EIA. DOE calculated prices for each 

of 13 geographic areas: the nine U.S. Census divisions, with four large States (New York, 

Florida, Texas, and California) treated separately. For Census divisions containing one of these 

large States, DOE calculated the regional average values leaving out data for the large State—for 

example, the Pacific region average does not include California, and the West South Central does 

not include Texas. 

Residential Electricity Prices 

DOE estimated electricity prices for residential consumers in each of the above 

geographic areas using EIA Form 861 data.10 These data are published annually and include 

annual electricity sales in kilowatt hours (kWh), revenues from electricity sales, and number of 

consumers, for the residential, commercial, and industrial sectors, for every utility serving final 

consumers. The calculation of an average residential electricity price proceeds in two steps: 

1. For each utility, estimate an average residential price by dividing the residential revenues 

by residential sales. 

2. Calculate a regional average price, weighting each utility with customers in a region by 

the number of residential consumers served in that region. 

Table 8.2.36 shows the results for each geographic region. 

Table 8.2.36 Average Residential Electricity Prices in 2006 

Geographic Area Average Price (2006$/kWh) 

New England $0.152 

Middle Atlantic (excludes NY) $0.119 

East North Central $0.096 

West North Central $0.082 

South Atlantic (excludes FL) $0.092 

East South Central $0.081 

West South Central (excludes TX) $0.087 

Mountain $0.091 

Pacific (excludes CA) $0.093 

New York $0.167 

Florida $0.109 

Texas $0.120 

California $0.141 

Source: EIA Form 861. 

Table 8.2.37 shows the national average residential electricity prices for cooking products 

based on the relative residential consumer weight of each geographic area. DOE determined the 

weighting of each geographic area based on the saturation of each appliance in the U.S. DOE 

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EERE-2006-STD-0127 COMMENT 64.2
used saturation data from the 2001 RECS to determine how the national saturation of each 

cooking appliance was distributed over the 13 geographic areas. Because DOE conducted the 

LCC and PBP analysis in 2006$, all electricity prices are in 2006$. 

Table 8.2.37 Average Residential Electricity Prices for Cooking Products in 2006 

Geographic Area 

Average Price 

(2006$/kWh) 

Saturations* 

Elec 

Cooktops 

Gas 

Cooktops 

Elec Std 

Ovens 

Elec SC 

Ovens 

Gas Std 

Ovens 

Gas SC 

Ovens 

MW 

Ovens 

New England $0.152 5.2% 4.2% 3.4% 6.7% 4.4% 4.2% 4.3% 

Middle Atlantic 

(excludes NY) $0.119 6.5% 9.0% 6.1% 7.3% 7.9% 11.9% 6.6% 

East North Central $0.096 14.4% 19.2% 13.3% 16.4% 18.1% 23.1% 16.7% 

West North Central $0.082 7.3% 5.6% 6.8% 7.5% 5.7% 6.9% 7.5% 

South Atlantic 

(excludes FL) $0.092 14.7% 10.4% 16.7% 13.4% 10.9% 9.1% 13.6% 

East South Central $0.081 8.1% 3.0% 9.5% 6.7% 3.0% 2.3% 6.7% 

West South Central 

(excludes TX) $0.087 3.5% 4.5% 3.7% 2.6% 5.5% 2.9% 4.3% 

Mountain $0.091 7.5% 4.4% 6.6% 8.2% 5.0% 3.3% 6.7% 

Pacific (excludes CA) $0.093 5.9% 0.6% 7.5% 4.9% 0.3% 0.5% 4.1% 

New York $0.167 3.8% 11.1% 3.0% 4.3% 10.7% 13.0% 5.6% 

Florida $0.109 8.7% 1.2% 6.3% 10.3% 1.4% 1.4% 5.9% 

Texas $0.120 7.3% 7.6% 9.0% 5.4% 7.8% 3.5% 7.2% 

California $0.141 7.0% 19.2% 8.3% 6.3% 19.2% 18.0% 10.9% 

National Average 

Price (2006$/kWh) - $0.105 $0.117 $0.104 $0.107 $0.116 $0.117 $0.108 

* Saturations based on 2001 RECS. 

Residential Natural Gas Prices 

DOE obtained the data for the natural gas price calculation from the EIA publication 

Natural Gas Monthly.

11 This publication includes a compilation of monthly natural gas delivery 

volumes and average consumer prices by State, for residential, commercial, and industrial 

customers. The Department used the complete annual data for 2006 to calculate an average 

annul price for each area. The calculation of average prices proceeds in two steps: 

1. Calculate the annul price for each State using a simple average over the appropriate 

months. 

2. Calculate a regional price, weighting each State in a region by its population. 

This method differs from the method used to calculate electricity prices because EIA does not 

provide consumer- or utility-level data on gas consumption and prices. The residential price 

units in Table 8.2.38 are in dollars per thousand cubic feet ($/tcf). 

8-32 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.38 Average Residential Natural Gas Prices in 2006 

Geographic Area Average Price (2006$/tcf) 

New England $18.42 

Middle Atlantic (excludes NY) $16.86 

East North Central $13.73 

West North Central $14.88 

South Atlantic (excludes FL) $19.69 

East South Central $16.73 

West South Central (excludes TX) $15.82 

Mountain $14.45 

Pacific (excludes CA) $17.43 

New York $17.52 

Florida $22.40 

Texas $14.64 

California $12.33 

Source: EIA Natural Gas Monthly. 

Table 8.2.39 shows the national average residential natural gas prices for gas cooking 

products based on the relative residential consumer weight of each geographic area. As it did for 

residential electricity prices, DOE determined the weighting of each geographic area based on 

the saturation of each appliance in the U.S. using data from 2001 RECS. Because DOE 

conducted the LCC and PBP analysis in 2006$, all natural gas prices are in 2006$. 

8-33 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.39 Average Residential Natural Gas Prices for Cooking Products in 2006 

Geographic Area 

Average Price 

(2006$/MMBtu)** 

Saturations* 

Gas 

Cooktops Gas Std Ovens Gas SC Ovens 

New England $17.86 4.2% 4.4% 4.2% 

Middle Atlantic (excludes 

NY) $16.35 9.0% 7.9% 11.9% 

East North Central $13.32 19.2% 18.1% 23.1% 

West North Central $14.43 5.6% 5.7% 6.9% 

South Atlantic (excludes 

FL) $19.09 10.4% 10.9% 9.1% 

East South Central $16.23 3.0% 3.0% 2.3% 

West South Central 

(excludes TX) $15.34 4.5% 5.5% 2.9% 

Mountain $14.02 4.4% 5.0% 3.3% 

Pacific (excludes CA) $16.91 0.6% 0.3% 0.5% 

New York $16.99 11.1% 10.7% 13.0% 

Florida $21.73 1.2% 1.4% 1.4% 

Texas $14.20 7.6% 7.8% 3.5% 

California $11.96 19.2% 19.2% 18.0% 

National Average Price 

(2006$/MMBtu) - $14.99 $15.00 $15.03 

* Saturations based on 2001 RECS. 

** 1 tcf gas = 1.03 MMBtu. 

8.2.2.3 Energy Price Trends 

DOE used price forecasts by the EIA to estimate the trends in natural gas, oil, and 

electricity prices. To arrive at prices in future years, it multiplied the average prices described in 

the preceding section (section 8.2.2.2) by the forecast of annual average price changes in EIA’s 

AEO 2009 Early Release.

12 To estimate the trend after 2030, DOE followed past guidelines 

provided to the Federal Energy Management Program (FEMP) by EIA and used the average rate 

of change during 2020–2030. 

The Department calculated LCC and PBP using three separate projections: Reference, 

Low Economic Growth, and High Economic Growth. These three cases reflect the uncertainty 

of economic growth in the forecast period. The high and low growth cases show the projected 

effects of alternative growth assumptions on energy markets. Figures 8.2.1 and 8.2.2 show the 

residential electricity and natural gas price trends, respectively, based on the three projections. 

The AEO 2009 Early Release provides only forecasts for the reference case. Therefore, DOE 

scaled the AEO 200813 high growth case and low-growth forecasts by the ratio of AEO 2009 

Early Release and AEO 2008 reference case forecasts to estimate high-growth and low-growth 

8-34 

EERE-2006-STD-0127 COMMENT 64.2
price trends. For the LCC results presented in section 8.4, DOE used only the energy price 

forecasts from the AEO 2009 Early Release reference case. 

0.95 

1.00 

1.05 

1.10 

1.15 

1.20 

1.25 

1.30 

1.35 

1.40 

2005 2010 2015 2020 2025 2030 2035 2040 

Year 

Price Trend (2006 = 1) 

High Growth 

Reference 

Low-Growth 

Figure 8.2.1 Electricity Price Trends 

0.80 

0.85 

0.90 

0.95 

1.00 

1.05 

1.10 

1.15 

1.20 

1.25 

1.30 

2005 2010 2015 2020 2025 2030 2035 2040 

Year 

Price Trend (2006 = 1) 

High Growth 

Reference 

Low-Growth 

Figure 8.2.2 Natural Gas Price Trends 

8-35 

EERE-2006-STD-0127 COMMENT 64.2
8.2.2.4 Repair and Maintenance Costs 

Typically, small incremental changes in product efficiency incur no, or only very small, 

changes in repair and maintenance costs over baseline products. However, equipment with 

efficiencies that are significantly higher than the baseline are more likely to incur higher repair 

and maintenance costs because its higher complexity and higher part count typically increases 

the cumulative probability of failure. 

Cooking Products 

For all electric cooking products, including microwave ovens, DOE did not include any 

changes in repair and maintenance costs for products more efficient than baseline products. 

For gas cooking products, DOE did determine the repair and maintenance costs 

associated with different types of ignition systems. DOE contacted six contractors, one each in 

Arizona, California, Colorado, Massachusetts, Minnesota, and Texas, to estimate whether repair 

and maintenance costs differ between standing pilot and non-standing pilot ignition systems. 

Table 8.2.40 summarizes the findings from the discussions with the six contractors. 

8-36 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.40 Repair/Maintenance Findings for Gas Cooking Product Ignition Systems 

Ignition System Findings 

Standing Pilot 

• Rare but found in some apartments, rentals, lowbudget kitchens. 

• Very reliable; repair frequency ranges from 10 

years to rare. 

• Cleaning is most common issue; valves get dirty 

from grease and impurities in gas. 

• Estimated costs for cleaning: $85-120 for labor. 

• Estimated costs for valve replacement: $150. 

• Average repair/maintenance cost = $126. 

Glo-bar/hot surface 

• Found in approx. 90% of gas ovens (the remaining 

fraction use standing pilots or more-efficient spark 

ignitions). 

• Fragile, typically last only 5 years. 

• Reasons for failure include burn out, cleaning 

sprays, jostling, oxidation. 

• Estimated repair costs range from $125 to $180. 

• Average repair cost = $147. 

Electronic spark 

• Found in almost all gas cooktops. 

• Definitely longer-lasting than Glo-bar igniters, but 

harder to gauge performance statistically. 

Modules can break after 5 years, while some last 

the lifetime of the appliance. Average 10 years. 

Electrodes rarely have problems. 

• Reasons for failure of spark module include power 

outage, pinched wire, humidity issues. 

• Reasons for failure of spark electrode include 

physical abuse from pots and pans 

• Estimated repair costs range from $160 to $195. 

• Average repair cost = $178. 

Based on the contractors’ input, DOE determined that standing pilots are less costly to 

repair and maintain than either electric glo-bar/hot surface ignition systems (used in most gas 

ovens) or electronic spark ignition systems (used in gas cooktops and a small percentage of gas 

ovens). For standing pilot ignition systems, DOE determined that repair and maintenance are 

needed once every 10 years to clean valves. For electric glo-bar/hot surface ignition systems, the 

glo-bar requires replacement approximately every five years. In the case of electronic ignition 

systems, control modules tend to last 10 years. The electrodes/igniters can fail due to hard 

contact from pots or pans, although failures are rare. Based on the above findings, DOE 

included repair and maintenance costs for gas cooking product ignition systems (see Table 

8.2.41). 

8-37 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.41 Repair/Maintenance Costs for Gas Cooking Product Ignition Systems 

Ignition System Repair/Maintenance Cost Occurrence 

Standing Pilot* $126 Once—In the 10th year of Cooking Product’s Life 

Glo-bar/hot surface** $147 Every 5th year of Cooking Product’s Life 

Electronic spark*** $178 Once—In the 10th year of Cooking Product’s Life 

* Applicable to baseline level equipment for gas cooktops and gas standard ovens. 

** Applicable to standard level 1 for gas standard ovens and the baseline level for gas self-clean ovens. 

*** Applicable to standard level 1 for gas cooktops and standard level 1a for gas standard ovens. 

8.2.3 Product Lifetime 

DOE used only primary sources of data to estimate product lifetimes. The sources DOE 

used to estimate product lifetimes for cooking products are presented below. 

8.2.3.1 Cooktops and Ovens 

For cooktops and ovens, DOE considered the sources listed in Table 8.2.42 to estimate 

product lifetimes. 

Table 8.2.42 Cooktops and Ovens: Product Lifetime Estimates and Sources 

Lifetime (years) Source 

Gas Ranges*: Mean = 15; Low = 12; High = 18 

Electric Ranges*: Mean = 13; Low = 10; High = 16 Appliance Magazine (2005) 14 

Gas & Electric Cooking Products: 19 DOE TSD (1996) 3 

Gas Ranges: 20** CALMAC (2000) 15 

* Estimates are first-ownership length, not full product lifetime. 

** Based on engineering judgment. 

The estimates from Appliance Magazine are “based on first-owner use of the product and 

does not necessarily mean the appliance is worn out.” In other words, Appliance Magazine’s 

lifetime estimates underestimate the actual lifetime of the products in those cases where the 

product is used by two or more users. As a result, DOE used the 19-year estimate from its 1996 

Technical Support Document (TSD) for Cooking Products to estimate the average product 

lifetime for both electric and gas cooktops and ovens. DOE used the low estimates from 

Appliance Magazine to establish the minimum product lifetime. To establish the maximum 

product lifetime, DOE took the difference between the minimum and average values (nine years 

for electric products and seven years for gas products) and added them to the average product 

lifetime. The minimum, average, and maximum lifetime estimates are shown in Table 8.2.43. 

8-38 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.43 Cooktops and Ovens: Average, Minimum, and Maximum Product Lifetimes 

Product 

Minimum 

years 

Average 

years 

Maximum 

years 

Cooktops 

Electric 

Gas 

10.0 

12.0 

19.0 

19.0 

28.0 

26.0 

Ovens 

Electric 

Gas 

10.0 

12.0 

19.0 

19.0 

28.0 

26.0 

DOE characterized the cooktop and oven product lifetimes with Weibull distributions. 

Appendix 8C presents the Weibull distributions of electric and gas cooktops and ovens that DOE 

used in the LCC and PBP analysis. 

8.2.3.2 Microwave Ovens 

For microwave ovens, DOE considered the sources listed in Table 8.2.44 to estimate 

product lifetime. 

Table 8.2.44 Microwave Ovens: Product Lifetime Estimates and Sources 

Lifetime (years) Source 

Mean* = 9; Low* = 7; High* = 10 Appliance Magazine (2005) 14 

10 DOE TSD (1996) 3 

* Estimates are first-ownership length, not full product lifetime. 

As discussed above for ovens and cooktops, the estimates from Appliance Magazine are 

“based on first-owner use of the product and does not necessarily mean the appliance is worn 

out.” In other words, Appliance Magazine’s lifetime estimates underestimate the actual lifetime 

of the products in those cases where the product is used by two or more users. As a result, DOE 

considered using the 10-year estimate from its 1996 TSD for Cooking Products to estimate the 

average product lifetime. However, because the 10-year lifetime estimate from DOE’s 1996 

TSD is the same as the high estimate from Appliance Magazine, DOE decided to use only the 

estimates from Appliance Magazine to establish the distribution of product lifetimes. DOE used 

the low, average, and high estimates from Appliance Magazine to establish the minimum, 

average, and maximum product lifetimes as shown in Table 8.2.45. 

8-39 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.45 Microwave Ovens: Average, Minimum, and Maximum Product Lifetimes 

Product 

Minimum 

years 

Average 

years 

Maximum 

years 

Microwave Ovens 7.0 9.0 10.0 

DOE characterized microwave oven product lifetimes with Weibull distributions. 

Appendix 8C presents the Weibull distributions of microwave ovens that DOE used in the LCC 

and PBP analysis. 

8.2.4 Discount Rates 

DOE derived the discount rates for the LCC and PBP analysis from estimates of the 

finance cost of purchasing the considered products. Following financial theory, the finance cost 

of raising funds to purchase appliances can be interpreted as: (1) the financial cost of any debt 

incurred to purchase equipment, or (2) the opportunity cost of any equity used to purchase 

equipment. For the residential products, the purchase of equipment for new homes entails 

different finance costs for consumers than the purchase of replacement equipment. Thus, DOE 

used different discount rates for new construction and replacement installations. 

8.2.4.1 Discount Rate for New Housing Equipment 

New-housing equipment is purchased as part of the home, which is almost always 

financed with a mortgage loan. The Department estimated discount rates for new-housing 

equipment using the effective real (after-inflation) mortgage rate for homebuyers. This rate 

corresponds to the interest rate after deduction of mortgage interest for income tax purposes and 

after adjusting for inflation (using the Fisher formula).a

 For example, a six-percent nominal 

mortgage rate has an effective nominal rate of 4.5 percent for a household at the 25-percent 

marginal tax rate. When adjusted for inflation of two percent, the effective real rate becomes 

2.45 percent. 

The data source DOE used for mortgage interest rates is the Federal Reserve Board’s 

Survey of Consumer Finances (SCF) in 1989, 1992, 1995, 1998, 2001, and 2004.16 Using the 

appropriate SCF data for each year, DOE adjusted the mortgage interest rate for each relevant 

household in the SCF for mortgage tax deduction and inflation (see Table 8.2.46). In cases 

where the effective interest rate is equal to or below the inflation rate (resulting in a negative real 

interest rate), DOE set the real effective interest rate to zero. 

The average nominal mortgage rate carried by homeowners in these six years was 8.1 

percent. Since the mortgage rates carried by households in these years were established over a 

range of time, DOE believes they are representative of rates that may be in effect in 2012 (the 

assumed effective date of new efficiency standards – see Section 8.2.5). After adjusting for 

a

 Fisher formula is given by: Real Interest Rate = [(1 + Nominal Interest Rate) / (1 + Inflation Rate)] – 1. 

8-40 

EERE-2006-STD-0127 COMMENT 64.2
inflation and interest tax deduction, effective real interest rates on mortgages across the six 

surveys averaged 3.2 percent. 

Table 8.2.46 Data Used to Calculate Real Effective Mortgage Rates 

Year 

Average 

Nominal Interest 

Rate (%) 

Inflation Rate17 

(%) 

Marginal Tax Rate 

applicable to Mortgage 

Interest18 (%)* 

Average Real 

Effective Interest 

Rate (%) 

1989 9.7 4.82 23.7 2.5 

1992 9.1 3.01 22.9 3.9 

1995 8.2 2.83 23.8 3.4 

1998 7.9 1.56 23.7 4.4 

2001 7.6 2.85 22.6 3.0 

2004 6.2 2.66 19.6 2.3 

Average 8.1 3.2 

* The values given are the inverse of the marginal tax rate on mortgage interest. 

To account for variation among new households, DOE sampled a rate for each household 

from a distribution of rates. DOE developed a probability distribution of interest rates based on 

the SCF data. Appendix 8D presents the probability distribution of interest rates that DOE used 

in the LCC and PBP analysis. 

8.2.4.2 Discount Rate for Residential Replacement Equipment 

Households use a variety of methods to finance replacement equipment. In principle, one 

could estimate the interest rates on the actual financing vehicles used to purchase replacement 

equipment. The shares of different financing vehicles in total replacement equipment purchases 

are unknown, however. 

DOE’s approach involves identifying all possible debt or asset classes that might be used 

to purchase replacement equipment, including household assets that might be affected 

indirectly.b

 DOE did not include debt from primary mortgages and equity of assets considered 

non-liquid (such as retirement accounts), since these would likely not be affected by replacement 

equipment purchases. DOE estimated the average shares of the various debt and equity classes 

in the average U.S. household equity and debt portfolios using SCF data for 1989, 1992, 1995, 

1998, 2001, and 2004. Table 8.2.47 shows the average shares of each considered class. DOE 

used the mean share of each class across the six years as a basis for estimating the effective 

financing of replacement equipment. 

b An indirect effect would arise if a household sold some assets in order to pay off a loan or credit card debt that 

might have been used to finance the actual appliance purchase. 

8-41 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.47 Average Shares of Considered Household Debt and Equity Types 

Type 

1989 

SCF 

1992 

SCF 

1995 

SCF 

1998 

SCF 

2001 

SCF 

2004 

SCF 

Mean 

(%) 

Home equity loans 4.3 4.5 2.7 2.8 2.8 4.4 3.6 

Credit cards 1.6 2.1 2.6 2.2 1.7 2.0 2.0 

Other installment loans 2.8 1.7 1.4 1.7 1.1 1.3 1.7 

Other residential loans 4.4 6.9 5.2 4.3 3.1 5.8 4.9 

Other line of credit 1.1 0.6 0.4 0.2 0.3 0.5 0.5 

Checking accounts 5.8 4.7 4.9 3.9 3.6 4.2 4.5 

Savings & money market 19.2 18.8 14.0 12.8 14.2 15.1 15.7 

Certificate of deposit (CD) 14.5 11.7 9.4 7.0 5.4 5.9 9.0 

Savings bond 2.2 1.7 2.2 1.1 1.2 0.9 1.5 

Bonds 13.8 12.3 10.5 7.0 7.9 8.4 10.0 

Stocks 22.4 24.0 25.9 36.9 37.5 28.0 29.1 

Mutual funds 8.0 11.1 20.9 20.1 21.3 23.4 17.5 

Total 100 100 100 100 100 100 100 

DOE estimated interest or return rates associated with each type of equity and debt. The 

data source for the interest rates for loans, credit cards, and lines of credit is the Federal Reserve 

Board’s SCF in 1989, 1992, 1995, 1998, 2001, and 2004. Table 8.2.48 shows the average 

nominal rates in each year, and the inflation rates used to calculate real rates. For home equity 

loans, DOE calculated effective interest rates in a similar manner as for mortgage rates, since 

interest on such loans is tax deductible. Table 8.2.49 shows the average effective real rates in 

each year and the mean rate across the years. Since the interest rates for each debt carried by 

households in these years were established over a range of time, DOE believes they are 

representative of rates that may be in effect in 2012. 

Table 8.2.48 Average Nominal Interest Rates for Household Debt Classes (percent) 

Type 

1989 

SCF 

1992 

SCF 

1995 

SCF 

1998 

SCF 

2001 

SCF 

2004 

SCF 

Mean 

(%) 

Home equity loans 11.5 9.6 9.6 9.8 8.7 5.7 9.2 

Credit cards* - - 14.2 14.5 14.2 11.7 13.6 

Other installment loans 9.0 7.8 9.3 7.8 8.7 7.4 8.3 

Other residential loans 8.8 7.6 7.7 7.7 7.5 6.0 7.5 

Other line of credit 14.8 12.7 12.4 11.9 14.7 8.8 12.5 

Inflation rate 4.82 3.01 2.83 1.56 2.85 2.66 

* No interest rate data available for credit cards in 1989 or 1992. 

8-42 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.49 Average Real Effective Interest Rates for Household Debt Classes (percent) 

Type 

1989 

SCF 

1992 

SCF 

1995 

SCF 

1998 

SCF 

2001 

SCF 

2004 

SCF 

Mean 

(%) 

Home equity loans 3.8 4.3 4.4 5.8 3.8 1.9 4.0 

Credit cards* - - 11.0 12.7 11.1 9.1 11.0 

Other installment loans 4.9 5.8 7.0 6.6 6.1 5.4 6.0 

Other residential loans 4.0 4.7 4.8 6.0 4.6 3.3 4.6 

Other line of credit 9.6 9.4 9.3 10.2 7.3 6.0 8.7 

* No interest rate data available for credit cards in 1989 or 1992. 

To account for variation among new households, DOE sampled a rate for each household 

from a distribution of rates for each of the above debt classes. DOE developed a probability 

distribution of interest rates for each debt class based on the SCF data. Appendix 8D presents 

the probability distribution of interest rates for each debt class that DOE used in the LCC and 

PBP analysis. 

Similar rate data are not available from the SCF for the asset classes, so the Department 

derived data for these classes from national-level historical data. The interest rates associated 

with certificates of deposit (CDs), 19 savings bonds,20 and bonds (AAA corporate bonds) 21 are 

from Federal Reserve Board time-series data covering 1977–2007. DOE assumed rates on 

checking accounts to be zero. Rates on savings and money market accounts are from Cost of 

Savings Index data covering 1984–2007.22 The rates for stocks are the annual returns on the 

Standard and Poor’s (S&P) 500 in the 1977–2007 period.23 The mutual fund rates are a 

weighted average of the stock rates (two-thirds weight) and the bond rates (one-third weight) in 

each year of the 1977–2007 period. DOE adjusted the nominal rates to real rates using the 

annual inflation rate in each year. Average nominal and real interest rates for the classes of 

assets are shown in Table 8.2.50. Since the interest and return rates for each asset type cover a 

range of time, DOE believes they are representative of rates that may be in effect in 2012. 

Table 8.2.50 Average Nominal and Real Interest Rates for Household Equity Types 

Type Average Nominal Rate (%) Average Real Rate (%) 

Checking accounts - 0.0 

Savings and money market 5.4 2.3 

CDs 6.8 2.4 

Savings bonds 7.8 3.4 

Bonds 8.6 4.1 

Stocks 13.2 8.6 

Mutual funds 11.4 6.8 

To account for variation among new households, DOE sampled a rate for each household 

from a distribution of rates for each of the above asset types. DOE developed a normal 

probability distribution of interest rates for each asset type by using the mean value and standard 

8-43 

EERE-2006-STD-0127 COMMENT 64.2
deviation from the distribution. Appendix 8D presents the probability distribution of interest 

rates for each asset type that DOE used in the LCC and PBP analysis. 

Table 8.2.51 summarizes the mean real effective rates of each type of equity or debt. 

DOE determined the average share of each debt and asset using SCF data for 1989, 1992, 1995, 

1998, 2001, and 2004. Each year of SCF data provides the debt and asset shares for U.S. 

households. DOE averaged the debt and asset shares over the six years of survey data to arrive 

at the shares shown in Table 8.2.51 below. The average rate across all types of household debt 

and equity, weighted by the shares of each class, is 5.5 percent. 

Table 8.2.51 Shares and Interest or Return Rates Used for Household Debt and Equity 

Types 

Type 

Average Share of Household 

Debt plus Equity (%)* 

Mean Effective Real Rate 

(%)** 

Home equity loans 3.6 4.0 

Credit cards 2.0 11.0 

Other installment loans 1.7 6.0 

Other residential loans 4.9 4.6 

Other line of credit 0.5 8.7 

Checking accounts 4.5 0.0 

Savings and money market accounts 15.7 2.3 

CDs 9.0 2.4 

Savings bonds 1.5 3.4 

Bonds 10.0 4.1 

Stocks 29.1 8.6 

Mutual funds 17.5 6.8 

Total/Weighted-average discount rate 100 5.5 

* Not including primary mortgage or retirement accounts.

** Adjusted for inflation and, for home equity loans, loan interest tax deduction.

8.2.5 Effective Date of Standard 

The effective date is the future date when a new standard becomes operative. Based on 

DOE’s implementation report for energy conservation standards activities submitted pursuant to 

Section 141 of the Energy Policy Act of 2005, a final rule for the home appliances being 

considered for this standards rulemaking is scheduled for completion in March 2009.24 

Therefore, the effective date of any new energy efficiency standards for these products will be 

three years after the final rule is published, which is March 2012. The Department calculated the 

LCC for all consumers as if they each would purchase a new piece of equipment in the year the 

standard takes effect. 

8-44 

EERE-2006-STD-0127 COMMENT 64.2
8.2.6 Equipment Assignment for the Base Case 

For purposes of conducting the LCC analysis, DOE analyzed standard levels relative to a 

baseline efficiency level. However, some consumers already purchase products with efficiencies 

greater than the baseline levels. Thus, to accurately estimate the percentage of consumers that 

would be affected by a particular standard level, DOE took into account the distribution of 

product efficiencies currently in the marketplace. In other words, rather than analyzing the 

impacts of a particular standard level assuming that all consumers are currently purchasing 

products at the baseline level, DOE conducted the analysis by taking into account the full breadth 

of product efficiencies that consumers purchase under the base case (i.e., the case without new 

energy efficiency standards). 

As noted in section 8.1.1, DOE’s approach for conducting the LCC analysis for 

residential cooking products relied on developing samples of households that use each of the 

products. DOE used a Monte Carlo simulation technique to perform the LCC calculations on the 

households in the sample. Using the current distribution of product efficiencies, DOE assigned 

each household in the sample a unique product efficiency. Because it performed the LCC 

calculations on a household-by-household basis, DOE based the LCC for a particular standardlevel on the efficiency of the product in the given household. For example, if a household was 

assigned a product efficiency that is greater than or equal to the efficiency of the standard level 

under consideration, the LCC calculation would reveal that this household is not impacted by an 

increase in product efficiency that is equal to the standard level. 

The product efficiency distributions that DOE used for cooking products in the LCC 

analysis are discussed in detail below. 

8.2.6.1 Cooktops 

Because DOE currently does not regulate cooktop efficiency with an energy efficiency 

descriptor, very little is known regarding the distribution of product efficiencies that consumers 

in the United States currently purchase. 

As discussed in Section 3.14.3 of Chapter 3, Market and Technology Assessment, 

Natural Resources Canada (NRCanada) does publish the efficiency of electric cooking products 

sold in Canada. Although the range in electric cooktop efficiency is relatively wide, the 

distribution is based on the number of models being sold rather than the percent of shipments 

being sold. Thus, because it is unknown how representative NRCanada’s electric cooktop 

efficiency distribution is of actual shipments sold in the U.S., DOE did not use NRCanada’s data 

for the LCC analysis. Instead, DOE conducted the LCC analysis for electric cooktops assuming 

that 100 percent of consumers currently purchase products at the baseline efficiency level. 

For gas cooktops, even less is known about model efficiency, since neither NRCanada 

nor AHAM publish any data on gas cooktop efficiencies. However, data are available that 

establish the percent of gas cooktops that are shipped with standing pilots. Based on shipments 

data submitted by AHAM for the years 2003–2005, gas standard (i.e., non-self-cleaning) ranges 

8-45 

EERE-2006-STD-0127 COMMENT 64.2
are the only product type that are still shipped with standing pilots.25 In other words, all 

shipments of built-in gas cooktops, built-in ovens, and gas self-cleaning ranges use pilotless 

ignition systems. Table 8.2.52 shows the historical percentage of gas standard range and gas 

built-in cooktop shipments with pilots. The historical percentages from 1988 to 1996 are based 

on data from DOE’s supplemental analysis to its 1996 TSD on Cooking Products.3

 Data for the 

years 1997, 2000, and 2004 are based on information from the Appliance Recycling Information 

Center (ARIC).26 The ARIC states that approximately 690,000, 620,000, and 250,000 gas ranges 

were shipped with standing pilot ignition systems for the years 1997, 2000, and 2004, 

respectively. Figure 8.2.3 plots the data in Table 8.2.52 to graphically depict the decreasing 

percentage in gas cooktops with pilots. 

Table 8.2.52 Gas Cooktops: Percent of Shipments with Pilots 

Year 

Percent Shipments with Gas Pilots* 

Built-In 

Cooktops 

Standard 

Ranges 

All Cooktops 

(Built-In and Ranges) 

1988 16.5% 48.1% 32.4% 

1989 15.4% 44.1% 30.8% 

1990 9.7% 38.2% 26.4% 

1991 8.1% 36.5% 24.5% 

1992 10.4% 37.6% 25.1% 

1993 8.3% 34.3% 21.7% 

1994 12.6% 39.9% 26.4% 

1995 3.3% 38.5% 23.2% 

1996 NA 36.4% NA 

1997 0.0% 47.0% 25.8% 

2000 0.0% 42.8% 20.0% 

2004 0.0% 18.2% 6.8% 

* Source: 1988-1996: U.S. Department of Energy, Supplemental Analysis for Ranges and Ovens, Supplemental 

Chapter 4, 1998. 1997, 2000, 2004, Standard Ranges: Appliance Recycling Information Center, 2005. 2004, 

Cooktops: AHAM data submittal, 2006. 

8-46 

EERE-2006-STD-0127 COMMENT 64.2
0% 

10% 

20% 

30% 

40% 

50% 

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 

Year 

Percent Shipments with Pilots 

Gas Standard Ranges 

All Gas Cooktops 

Gas Built-In Cooktops 

Figure 8.2.3 Gas Cooktops: Percent of Shipments with Pilots 

Based on the data presented in Table 8.2.52, DOE conducted the LCC analysis for gas 

cooktops assuming that only 6.8 percent of consumers currently purchase products at the 

baseline efficiency level. DOE assumed that the remaining 93.2 percent of consumers purchased 

gas cooktops with pilotless ignition systems. 

Table 8.2.53 presents the market shares of the efficiency levels in the base case for each 

of the cooktop product classes. The market shares represent the equipment that households 

would have purchased in the year 2012 in the absence of new standards. 

Table 8.2.53 Cooktops: Base Case Market Shares 

Electric Coil Electric Smooth Gas 

Standard 

Level EF 

Market 

Share 

Standard 

Level EF 

Market 

Share 

Standard 

Level EF 

Market 

Share 

Baseline 0.737 100% Baseline 0.742 100% Baseline 0.156 6.8% 

1 0.769 0% 1 0.753 0% 1 0.399 93.2%

 2 0.420 0% 

8.2.6.2 Ovens 

Like cooktops, because DOE does not currently regulate oven efficiency with an energy 

efficiency descriptor, very little is known regarding the distribution of product efficiencies that 

consumers currently purchase. 

8-47 

EERE-2006-STD-0127 COMMENT 64.2
As discussed in Section 3.14.3 of Chapter 3, Market and Technology Assessment, 

NRCanada does publish the efficiency of electric oven products sold in Canada. Although the 

range in electric oven efficiency is relatively wide, the distribution is based on the number of 

models being sold rather than the percent of shipments being sold. Thus, because it is unknown 

how representative NRCanada’s electric oven efficiency distribution is of actual shipments sold 

in the U.S., DOE did not use NRCanada’s data for this analysis. Instead, DOE conducted the 

LCC analysis for electric ovens assuming that 100 percent of consumers currently purchase 

products at the baseline efficiency level. 

As discussed above for gas cooktops, little is known about gas oven model efficiency, 

since neither NRCanada nor AHAM publish any data on gas oven efficiencies. However, data 

are available that establish the percent of gas ovens that are shipped with standing pilots. Based 

on shipments data that AHAM submitted for the years 2003–2005, gas standard (i.e., non-selfcleaning) ranges are the only product type that are still shipped with standing pilots.25 Table 

8.2.54 shows the historical percentage of gas standard range and gas built-in oven shipments 

with pilots. DOE based the historical percentages from 1988 to 1996 on data from DOE’s 

supplemental analysis to its 1996 TSD on Cooking Products.3 Data for the years 1997, 2000, 

and 2004 are based on information from ARIC.26 Figure 8.2.4 plots the data in Table 8.2.54 to 

graphically depict the decreasing percentage in gas ovens with pilots. 

Table 8.2.54 Gas Standard Ovens: Percent of Shipments with Pilots 

Year 

Percent Shipments with Gas Pilots* 

Built-In Standard 

Ovens 

Standard 

Ranges 

All Standard Ovens 

(Built-In and Ranges) 

1988 1.7% 48.1% 44.6% 

1989 3.1% 44.1% 41.6% 

1990 5.6% 38.2% 36.5% 

1991 0.0% 36.5% 34.8% 

1992 0.0% 37.6% 35.9% 

1993 0.0% 34.3% 32.9% 

1994 0.0% 39.9% 38.4% 

1995 0.0% 38.5% 37.0% 

1996 NA 36.4% 34.9% 

1997 0.0% 47.0% 45.4% 

2000 0.0% 42.8% 41.3% 

2004 0.0% 18.2% 17.6% 

* Source: 1988-1996: U.S. Department of Energy, Supplemental Analysis for Ranges and Ovens, Supplemental 

Chapter 4, 1998. 1997, 2000, 2004, Standard Ranges: Appliance Recycling Information Center, 2005. 2004, 

Ovens: AHAM data submittal, 2006. 

8-48 

EERE-2006-STD-0127 COMMENT 64.2
0% 

10% 

20% 

30% 

40% 

50% 

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 

Year 

Percent Shipments with Pilots 

Gas Standard Ranges 

All Gas Ovens 

Gas Built-In Ovens 

Figure 8.2.4 Gas Standard Ovens: Percent of Shipments with Pilots 

Based on the data presented in Table 8.2.54, DOE conducted the LCC analysis for gas 

ovens assuming that only 17.6 percent of consumers currently purchase products at the baseline 

efficiency level. DOE assumed that the remaining 82.4 percent of consumers purchase gas ovens 

with pilotless ignition systems (i.e., products at efficiency level 1—glo-bar ignition systems or 

efficiency level 1a—electronic spark ignition systems). Based on information collected during 

the course of DOE’s contacts with contractors to establish the repair and maintenance costs of 

gas cooking product ignition systems (see section 8.2.2.4), DOE estimates 90 percent of pilotless 

ignition systems utilize glo-bar igntion while the remaining ten percent utilize spark ignition 

systems. 

All gas self-cleaning ovens already have pilotless ignition systems (i.e., the baseline 

efficiency level uses pilotless ignition). Because virtually nothing is known about the 

distribution of gas self-cleaning oven product efficiencies, DOE conducted the LCC analysis for 

gas self-cleaning ovens assuming that 100 percent of consumers currently purchase products at 

the baseline efficiency level. 

Table 8.2.55 presents the market shares of the efficiency levels in the base case for each 

of the oven product classes. The market shares represent the equipment that households would 

have purchased in the year 2012 in the absence of new standards. 

8-49 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.2.55 Ovens: Base Case Market Shares 

Electric Standard Electric Self-Clean Gas Standard Gas Self-Clean 

Std 

Level EF 

Market 

Share 

Std 

Level EF 

Market 

Share 

Std 

Level EF 

Market 

Share 

Std 

Level EF 

Market 

Share 

Baseline 0.1066 100% Baseline 0.1099 100% Baseline 0.0298 17.6% Baseline 0.0540 100% 

1 0.1113 0% 1 0.1102 0% 1* 0.0536 74.2% 1 0.0625 0% 

2 0.1163 0% 2 0.1123 0% 2 0.0566 0% 2 0.0627 0% 

3 0.1181 0% 3 0.0572 0% 3 0.0632 0% 

4 0.1206 0% 4 0.0593 0% 

5 0.1209 0% 5 0.0596 0%

 6 0.0600 0%

 1a* 0.0583 8.2% 

* For gas standard ovens, levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate 

the need for a standing pilot—but the technologies for each design are different. Level 1 is a hot surface ignition 

device while level 1a is a spark ignition device. 

8.2.6.3 Microwave Ovens 

Because DOE does not currently regulate microwave oven efficiency with an energy 

efficiency descriptor, very little is known regarding the distribution of product efficiencies that 

consumers currently purchase. 

As discussed in Section 3.14.3 of Chapter 3, Market and Technology Assessment, 

AHAM did provide limited data on microwave oven efficiency. Oven efficiencies (i.e., energy 

factor) that AHAM provided ranged from 55 percent to 62 percent. It is unknown how 

representative this range of microwave oven efficiencies is of products currently being sold. 

Therefore, DOE assumed that 100 percent of the market is at the baseline level. 

Table 8.2.56 Microwave Ovens: Base Case Market Shares by Energy Factor Level 

Standard Level EF Annual Energy Use (kWh/yr) Market Share 

Baseline 0.557 165.8 100% 

1 0.586 159.3 0% 

2 0.588 158.8 0% 

3 0.597 157.0 0% 

4 0.602 156.0 0% 

8.3 PAYBACK PERIOD INPUTS 

The payback period is the amount of time it takes the consumer to recover the assumed 

higher purchase expense of more energy-efficient equipment as a result of lower operating costs. 

8-50 

EERE-2006-STD-0127 COMMENT 64.2
Numerically, the PBP is the ratio of the increase in purchase expense (i.e., from a less efficient 

design to a more efficient design) to the decrease in annual operating expenditures. This type of 

calculation is known as a “simple” payback period, because it does not take into account changes 

in operating expense over time or the time value of money; i.e., the calculation is done at an 

effective discount rate of zero percent. 

The equation for PBP is: 

ΔIC

PBP = 

ΔOC 

where: 

ΔIC = Difference in the total installed cost between the more efficient standard level 

and the baseline design, and 

ΔOC = difference in annual operating expenses. 

Payback periods are expressed in years. Payback periods greater than the life of the 

product mean that the increased total installed cost is not recovered in reduced operating 

expenses. 

The data inputs to PBP are the total installed cost of the equipment to the consumer for 

each efficiency level and the annual (first year) operating expenditures for each standard level. 

The inputs to the total installed cost are the equipment price and the installation cost. The inputs 

to the operating costs are the annual energy cost, the annual repair cost, and the annual 

maintenance cost. The PBP uses the same inputs as the LCC analysis as described in section 8.2, 

except that energy price trends and discount rates are not required. Since the PBP is a “simple” 

payback, the required energy price is only for the year in which a new standard is to take 

effect—in this case, the year 2012. The energy price DOE used in the PBP calculation was the 

price projected for that year. Discount rates are also not required for the simple PBP calculation. 

8.4 LIFE-CYCLE COST AND PAYBACK PERIOD RESULTS 

This section presents the LCC and PBP results for cooking products. With regard to the 

cooking products, as discussed in section 8.1.1, DOE’s approach for conducting the LCC 

analysis relied on developing samples of households that use each of the products. DOE also 

characterized the uncertainty of many of the inputs to the analysis with probability distributions. 

DOE used a Monte Carlo simulation technique to perform the LCC calculations on the 

households in the sample. For each set of sample households using the equipment in each 

product class, DOE calculated the average LCC and LCC savings and the median and average 

PBP for each of the candidate standard levels. These standard levels are also referred to as 

candidate standard levels (CSL). 

8-51 

EERE-2006-STD-0127 COMMENT 64.2
DOE calculated LCC savings and PBPs relative to the base case equipment that it 

assigned to the households. As discussed in section 8.2.6, for some households, DOE assigned 

base case equipment that is more efficient than some of the CSLs. For that reason, the average 

LCC impacts are not equal to the difference between the LCC of a specific and the LCC of the 

baseline equipment. 

In the subsections below, DOE presents figures showing the distribution of LCCs in the 

base case for each product class. Also presented below for a specific are figures showing the 

distribution of LCC impacts and the distribution of PBPs. The figures are presented as frequency 

charts that show the distribution of LCCs, LCC impacts, and PBPs with their corresponding 

probability of occurrence. DOE generated the figures for the distributions from a Monte Carlo 

simulation run based on 10,000 samples. 

LCC and PBP calculations were performed 10,000 times on the sample of households 

established for each residential product. Each LCC and PBP calculation was performed on a 

single household that was selected from the sample. The selection of a household was based on 

its weight (i.e., how representative a particular household is of other households in the 

distribution). Each LCC and PBP calculation also sampled from the probability distributions that 

DOE developed to characterize many of the inputs to the analysis. 

Based on the Monte Carlo simulations that DOE performed, for each standard-level, 

DOE calculated the share of households with a net LCC benefit, with a net LCC cost, and with 

no impact. DOE considered a household to receive no impact at a given if DOE assigned it base 

case equipment that is the same as or has higher efficiency than the CSL. To illustrate the range 

of LCC and PBP impacts among the sample households, the sections below present figures that 

provide such information for each product class. 

8.4.1 Cooktops 

8.4.1.1 Base Case LCC Distributions 

Figures 8.4.1, 8.4.2, and 8.4.3 show the frequency charts for the base case LCC for the 

three cooktop product classes. The figures below show the mean LCC of the base case 

distribution, as well as the full range of LCCs. 

8-52 

EERE-2006-STD-0127 COMMENT 64.2
Frequency Chart 

Mean = $455 

.000 

.005 

.010 

.015 

.021 

0 

51.25 

102.5 

153.7 

205 

$274 $425 $577 $728 $880 

10,000 Trials 9,633 Displayed 

Forecast: E Coil: LCC Base 

Figure 8.4.1 Electric Coil Cooktops: Base Case LCC Distribution 

Frequency Chart 

Mean = $492 

.000 

.005 

.010 

.016 

.021 

0 

52 

104 

156 

208 

$310 $462 $613 $765 $916 

10,000 Trials 9,633 Displayed 

Forecast: E Smth: LCC Base 

Figure 8.4.2 Electric Smooth Cooktops: Base Case LCC Distribution 

8-53 

EERE-2006-STD-0127 COMMENT 64.2
Frequency Chart 

Mean = $871 

.000 

.004 

.008 

.012 

.016 

0 

39.25 

78.5 

117.7 

157 

$422 $684 $946 $1,209 $1,471 

10,000 Trials 9,845 Displayed 

Forecast: Gas: LCC Base 

Figure 8.4.3 Gas Cooktops: Base Case LCC Distribution 

8.4.1.2 Standard-Level Distributions of LCC Impacts 

Figure 8.4.4 is an example of a frequency chart showing the distribution of LCC 

differences for the case of CSL 2 for gas cooktops. In the figure, a text box next to a vertical line 

at that value on the x-axis shows the mean change in LCC (a cost of $8 in the example here). 

The note, “Certainty is 6.48% from $0 to +Infinity,” means that 6.48 percent of households with 

gas cooktops will either not be impacted or have LCC savings due to the CSL compared to the 

base case. DOE can generate a frequency chart like the one shown in Figure 8.4.4 for every CSL 

within each product class. 

Frequency Chart 

Certainty is 6.48% from $0 to +Infinity 

Mean = ($8) 

.000 

.042 

.083 

.125 

.167 

0 

416.5 

833 

1666 

($46) $8 $63 $117 $172 

10,000 Trials 9,644 Displayed 

Forecast: GC: LCC SaveLev 2 

Figure 8.4.4 Gas Cooktops: Distribution of LCC Impacts for CSL 2 

8-54

EERE-2006-STD-0127 COMMENT 64.2
8.4.1.3 Standard-Level PBP Distributions 

Figure 8.4.5 is an example of a frequency chart showing the distribution of payback 

periods for CSL 2 for gas cooktops. The large ‘spike’ at the PBP value of -1.00 indicates the 

percentage of households with gas cooktops that do not realize any energy cost savings due to 

the CSL, i.e., households that rarely or never use their cooktop. DOE can generate a frequency 

chart like the one shown in Figure 8.4.5 for every CSL within each product class. 

Frequency Chart 

.000 

.020 

.040 

.060 

.080 

0 

198.7 

397.5 

596.2 

795 

-1.0 249.3 499.5 749.8 1,000.0 

10,000 Trials 9,831 Displayed 

Forecast: GC: PBP Lev2 

Figure 8.4.5 Gas Cooktops: Distribution of PBPs for CSL 2 

8.4.1.4 LCC and PBP Results 

Tables 8.4.1, 8.4.2, and 8.4.3 show the LCC and PBP results for cooktops. For example, 

in the case of gas cooktops, CSL 1 (pilotless ignition with an efficiency of 0.399 EF) shows an 

average LCC savings of $15. Note that for CSL 1, over 93 percent of the housing units in 2012 

are assumed to have already purchased a gas cooktop with pilotless ignition in the base case and 

thus have zero savings due to the standard. If one compares the LCC of the baseline at 0.156 EF 

to the standards case at 0.399 EF, then the average LCC savings are $299. But since the base 

case includes a significant number of households that are not impacted by the standard, the 

average savings over all of the households is $15. With regard to the PBPs shown below, DOE 

determined the median and average values by excluding the percentage of households not 

impacted by the standard. For example, in the case of CSL 1 for gas cooktops, over 93 percent 

of the households did not factor into the calculation of the median and average PBP. 

8-55 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.4.1 Electric Coil Cooktops: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.737 $272 $183 $455 - - - - - -

1 0.769 $276 $175 $451 $4.3 27.1% 0.0% 72.9% 7.2 18.0 

Table 8.4.2 Electric Smooth Cooktops: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.742 $309 $183 $492 - - - - - -

1 0.753 $550 $180 $730 -$238.2 100.0% 0.0% 0.0% 1,498.3 3,735.7 

Table 8.4.3 Gas Cooktops: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.156 $310 $561 $871 - - - - - -

1 0.399 $332 $240 $572 $15.0 0.1% 93.5% 6.4% 4.3 3.3 

2 0.420 $361 $234 $595 -$7.9 93.5% 0.0% 6.5% 73.0 258.3 

Figures 8.4.6, 8.4.7, and 8.4.8 show the range of LCC savings for the CSLs for electric 

coil, electric smooth, and gas cooktops, respectively. For each CSL, the top and the bottom of 

the box indicate the 75th and 25th percentiles, respectively. The bar at the middle of the box 

indicates the median; 50 percent of the households have LCC savings above this value. The 

‘whiskers’ at the bottom and the top of the box indicate the 5th and 95th percentiles. The small 

box shows the average LCC savings for each CSL. 

Figures 8.4.9, 8.4.10, and 8.4.11 show the range of PBPs for electric coil, electric smooth, 

and gas cooktops, respectively. In these figures, households which are not impacted by an 

increase in the standard are not included (this situation applies only for CSL 1 for gas cooktops). 

In addition, there are a few households where the PBP is an undefined value (i.e., where the 

lifetime operating expenses of a CSL are greater than the baseline product). This situation 

occurs when the CSL either has no energy costs savings or its increase in repair and maintenance 

costs is greater than its lifetime energy cost savings. Undefined PBPs occur for 1.1 percent of 

households at CSL 1 for electric coil cooktops, 1.1 percent of households at CSL 1 for electric 

8-56 

EERE-2006-STD-0127 COMMENT 64.2
smooth cooktops, and 0.8 percent of households at CSL 2 for gas cooktops. The few households 

where the PBP is undefined are not included in Figures 8.4.9, 8.4.10, and 8.4.11. 

-5 

0 

5 

10 

15 

20 

CSL 1 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

Figure 8.4.6 Range of LCC Savings for 

Electric Coil Cooktops 

-250 

-245 

-240 

-235 

-230 

CSL 1 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

Figure 8.4.7 Range of LCC Savings for 

Electric Smooth Cooktops 

8-57 

EERE-2006-STD-0127 COMMENT 64.2
-50 

-25 

0 

25 

50 

75 

100 

125 

150 

CSL 1 CSL 2 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

\ 

Figure 8.4.8 Range of LCC Savings for Gas 

Cooktops 

0 

10 

20 

30 

40 

50 

CSL 1 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

\ 

Figure 8.4.9 Range of Payback Periods 

for Electric Coil Cooktops 

8-58 

EERE-2006-STD-0127 COMMENT 64.2
0 

1000 

2000 

3000 

4000 

5000 

6000 

7000 

8000 

9000 

10000 

CSL 1 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

Figure 8.4.10 Range of Payback Periods 

for Electric Smooth 

Cooktops 

0 

150 

300 

450 

600 

CSL 1 CSL 2 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

Figure 8.4.11 Range of Payback Periods for 

Gas Cooktops 

8-59 

EERE-2006-STD-0127 COMMENT 64.2
8.4.2 Ovens 

8.4.2.1 Base Case LCC Distributions 

Figures 8.4.12, 8.4.13, 8.4.14, and 8.4.15 show the frequency charts for the base case 

LCC for the four oven product classes. The figures below show the mean LCC of the base case 

distribution as well as the full range of LCCs. 

Frequency Chart 

Mean = $645 

.000 

.007 

.014 

.021 

.028 

0 

70.25 

140.5 

210.7 

281 

$429 $616 $802 $989 $1,175 

10,000 Trials 9,728 Displayed 

Forecast: E Std: LCC Base 

Figure 8.4.12 Electric Standard Ovens: Base Case LCC Distribution 

Frequency Chart 

Mean = $728 

.000 

.005 

.011 

.016 

.021 

0 

53.25 

106.5 

159.7 

213 

$495 $669 $843 $1,016 $1,190 

10,000 Trials 9,734 Displayed 

Forecast: E SC: LCC Base 

Figure 8.4.13 Electric Self-Cleaning Ovens: Base Case LCC Distribution 

8-60 

EERE-2006-STD-0127 COMMENT 64.2
Frequency Chart 

Mean = $837 

.000 

.004 

.008 

.012 

.016 

0 

41 

82 

123 

164 

$532 $749 $966 $1,183 $1,400 

10,000 Trials 9,723 Displayed 

Forecast: G Std: LCC Base 

Figure 8.4.14 Gas Standard Ovens: Base Case LCC Distribution 

Frequency Chart 

Mean = $1,164 

.000 

.004 

.008 

.011 

.015 

0 

38 

76 

114 

152 

$605 $906 $1,207 $1,507 $1,808 

10,000 Trials 9,837 Displayed 

Forecast: G SC: LCC Base 

Figure 8.4.15 Gas Self-Cleaning Ovens: Base Case LCC Distribution 

8.4.2.2 Standard-Level Distributions of LCC Impacts 

Figure 8.4.16 is an example of a frequency chart showing the distribution of LCC 

differences for the case of CSL 6 for gas standard ovens. In the figure, a text box next to a 

vertical line at that value on the x axis shows the mean change in LCC (a cost of $81 in the 

example here). The note, “Certainty is 6.83% from $0 to +Infinity,” means that 6.83 percent of 

households with gas standard ovens will have LCC savings due to the CSL compared to the base 

8-61 

EERE-2006-STD-0127 COMMENT 64.2
case. DOE can generate a frequency chart like the one shown in Figure 8.4.16 for every CSL in 

each of the four oven product classes. 

Forecast:Gas Std: LCC Save Lev 7 

10,000 Trials Frequency Chart 9,723 Displayed 

.181 

Mean = ($81) 

1809 

.136 

.090 904.5 

.045 452.2 

.000 0 

($331) ($212) ($92) $27 $146 

Certainty is 6.83% from $0 to +Infinity 

Figure 8.4.16 Gas Standard Ovens: Distribution of LCC Impacts for CSL 6 

8.4.2.3 Standard-Level PBP Distributions 

Figure 8.4.17 is an example of a frequency chart showing the distribution of payback 

periods of CSL 6 for gas standard ovens. DOE can generate a frequency chart like the one 

shown in Figure 8.4.17 for every CSL in each of the four oven product classes. 

8-62 

EERE-2006-STD-0127 COMMENT 64.2
Frequency Chart 

.000 

.061 

.123 

.184 

.246 

0 

614.2 

2457 

10,000 Trials 9,577 Displayed 

Forecast: Gas Std: PBPLev 7 

-1.0 249.3 499.5 749.8 1,000.0 

Figure 8.4.17 Gas Standard Ovens: Distribution of PBPs for CSL 6 

8.4.2.4 LCC and PBP Results 

Tables 8.4.4, 8.4.5, 8.4.6, and 8.4.7 show the LCC and PBP results for ovens. For 

example, in the case of gas ovens, CSL 1a (pilotless ignition with an efficiency of 0.0583 EF) 

shows an average LCC savings of $6. Note that for CSL 1a, 82 percent of the housing units in 

2012 are assumed to have already purchased a gas standard oven with pilotless ignition in the 

base case and thus have zero savings due to the standard. If one compares the LCC of the base 

case at 0.0298 EF to the standards case at 0.0583 EF, then the average LCC savings are $107. 

But since the base case includes a significant number of households that are not impacted by the 

standard, the average savings over all of the households is $9. With regard to the PBPs shown 

below, DOE determined the median and average values by excluding the percentage of 

households not impacted by the standard. For example, in the case of CSL 1a for gas standard 

ovens, 82 percent of the households did not factor into the calculation of the median and average 

PBP. 

8-63 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.4.4 Electric Standard Ovens: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.1066 $414 $231 $645 - - - - - -

1 0.1113 $416 $222 $638 $6.5 33.8% 0.0% 66.2% 5.3 204.6 

2 0.1163 $421 $213 $634 $10.5 42.7% 0.0% 57.3% 8.0 308.6 

3 0.1181 $426 $211 $637 $8.1 50.1% 0.0% 49.9% 12.2 466.4 

4 0.1206 $484 $207 $690 -$45.6 93.5% 0.0% 6.5% 57.8 2,215.9 

5 0.1209 $489 $206 $695 -$50.2 94.4% 0.0% 5.6% 60.7 2,325.1 

Table 8.4.5 Electric Self-Cleaning Ovens: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.1099 $485 $243 $728 - - - - - -

1 0.1102 $491 $243 $734 ($89.0) 72.0% 0.0% 28.0% 174.0 926.5 

2 0.1123 $548 $239 $787 ($142.6) 78.5% 0.0% 21.5% 235.9 1,256.2 

Table 8.4.6 Gas Standard Ovens: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.0298 $430 $406 $837 - - - - - -

1* 0.0536 $460 $500 $960 -$31.9 17.7% 82.3% 0.0% 10.9 8.4 

2 0.0566 $465 $491 $956 -$46.4 65.2% 0.0% 34.8% 11.8 78.8 

3 0.0572 $467 $490 $956 -$46.6 66.4% 0.0% 33.6% 12.2 88.0 

4 0.0593 $499 $486 $985 -$75.1 92.0% 0.0% 8.0% 23.2 358.1 

5 0.0596 $501 $485 $987 -$76.8 92.2% 0.0% 7.8% 23.8 575.1 

6 0.0600 $507 $484 $991 -$81.0 93.2% 0.0% 6.8% 25.3 368.4 

1a* 0.0583 $464 $266 $730 $9.4 5.1% 82.3% 12.6% 9.0 7.0 

* Levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate the need for a standing 

pilot—but the technologies for each design are different. Level 1 is a hot surface ignition device while level 1a is 

a spark ignition device. Level 1a is presented at the end of the table because levels 2 through 6 are derived from 

level 1. 

8-64 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.4.7 Gas Self-Cleaning Ovens: LCC and PBP Results 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.0540 $550 $614 $1,164 - - - - - -

1 0.0625 $566 $595 $1,161 $2.9 56.1% 0.0% 43.9% 11.0 390.6 

2 0.0627 $573 $594 $1,167 -$2.9 64.0% 0.0% 36.0% 15.0 201.5 

3 0.0632 $574 $593 $1,168 -$3.8 65.0% 0.0% 35.0% 15.6 461.5 

Figures 8.4.18, 8.4.19, 8.4.20, and 8.4.21 show the range of LCC savings for the CSLs 

for electric standard, electric self-cleaning, gas standard, and gas self-cleaning ovens, 

respectively. For each CSL, the top and the bottom of the box indicate the 75th and 25th 

percentiles, respectively. The bar at the middle of the box indicates the median; 50 percent of 

the households have LCC savings above this value. The ‘whiskers’ at the bottom and the top of 

the box indicate the 5th and 95th percentiles. The small box shows the average LCC savings for 

each CSL. 

Figures 8.4.22, 8.4.23, 8.4.24, and 8.4.25 show the range of PBPs for electric standard, 

electric self-cleaning, gas standard, and gas self-cleaning ovens, respectively. In these figures, 

households which are not impacted by an increase in the standard are not included (this situation 

applies only for CSLs 1 and 1a for gas standard ovens). In addition, there are a few households 

where the PBP is an undefined value (i.e., where the lifetime operating expenses of a CSL are 

greater than the baseline product). This situation occurs when the CSL either has no energy 

costs savings or its increase in repair and maintenance costs is greater than its lifetime energy 

cost savings. For gas standard ovens, undefined PBPs occur for 8.1 percent of households at 

CSL 2, 7.9 percent of households at CSL 3, 24.7 percent of households for CSL 4, 23.7 percent 

of households for CSL 5, and 22.4 percent of households for CSL 6. For gas self-cleaning 

ovens, undefined PBPs occur for 16.7 percent of households at CSL 1,16.2 percent of households 

at CSL 2, and 15.4 percent of households for CSL 3. The households where the PBP is 

undefined are not included in Figures 8.4.24 and 8.4.25. 

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EERE-2006-STD-0127 COMMENT 64.2
-100 

-75 

-50 

-25 

0 

25 

50 

75 

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

\ 

Figure 8.4.18 Range of LCC Savings for Electric Standard Ovens 

-600 

-500 

-400 

-300 

-200 

-100 

0 

100 

200 

300 

400 

CSL 1 CSL 2 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

\ 

Figure 8.4.19 Range of LCC Savings for 

Electric Self-Cleaning Ovens 

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EERE-2006-STD-0127 COMMENT 64.2
-400 

-350 

-300 

-250 

-200 

-150 

-100 

-50 

0 

50 

100 

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 6 CSL 1a 

Candidate Standard Level 

Life-cycle Cost Savings ($) 

Median Mean 

\ 

Figure 8.4.20 Range of LCC Savings for Gas Standard Ovens 

50 

Life-cycle Cost Savings ($) 

25 

0 

-25 

-50 

Median 

\ 

Mean 

CSL 1 CSL 2 CSL 3 

Candidate Standard Level 

Figure 8.4.21 Range of LCC Savings for Gas Self-Cleaning Ovens 

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EERE-2006-STD-0127 COMMENT 64.2
0 

500 

1000 

1500 

2000 

2500 

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

\ 

Figure 8.4.22 Range of Payback Periods for Electric Standard Ovens 

0 

500 

1000 

1500 

2000 

2500 

3000 

CSL 1 CSL 2 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

\ 

Figure 8.4.23 Range of Payback Periods for 

Electric Self-Cleaning Ovens 

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EERE-2006-STD-0127 COMMENT 64.2
0 

100 

200 

300 

400 

500 

600 

700 

800 

900 

1000 

1100 

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 5 CSL 1a 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

\ 

Figure 8.4.24 Range of Payback Periods for Gas Standard Ovens 

500 

Payback Period (years) 

400 

300 

200 

100 

0 

Median Mean 

\ 

CSL 1 CSL 2 CSL 3 

Candidate Standard Level 

Figure 8.4.25 Range of Payback Periods for Gas Self-Cleaning 

Ovens 

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EERE-2006-STD-0127 COMMENT 64.2
8.4.3 Microwave Ovens 

8.4.3.1 Base Case LCC Distributions 

Figure 8.4.26 shows the frequency chart for the base case LCC for microwave ovens. 

The figure shows the mean LCC of the base case distribution as well as the full range of LCCs. 

Forecast: LCC Base 

10,000 Trials Frequency Chart 9,698 Displayed 

.030 

Mean = $344 

304 

.023 228 

.015 152 

.008 76 

.000 0 

$229 $345 $461 $576 $692 

Figure 8.4.26 Microwave Ovens: Base Case LCC Distribution 

8.4.3.2 Standard-Level Distributions of LCC Impacts 

Figure 8.4.27 is an example of a frequency chart showing the distribution of LCC 

differences for the case of CSL 1. In the figure, a text box next to a vertical line at that value on 

the x axis shows the mean change in LCC (an increase of $7 in the example here). Note that 

9.47 percent of households with microwave ovens will have LCC savings due to the CSL 

compared to the base case. DOE can generate a frequency chart like the one shown in Figure 

8.4.27 for every CSL. 

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EERE-2006-STD-0127 COMMENT 64.2
Figure 8.4.27 Microwave Ovens: Distribution of LCC Impacts for CSL 1 

8.4.3.3 Standard-Level PBP Distributions 

Figure 8.4.28 is an example of a frequency chart showing the distribution of payback 

periods of CSL 1. DOE can generate a frequency chart like the one shown in Figure 8.4.28 for 

every CSL. 

Frequency Chart 

Certainty is 9.47% from $0 to +Infinity 

Mean = ($7) 

.000 

.008 

.016 

.023 

.031 

0 

78 

156 

234 

312 

($13) ($7) ($2) $4 $9 

10,000 Trials 9,694 Displayed 

Forecast: LCC Save 1 

Frequency Chart 

.000 

.033 

.065 

.098 

.131 

0 

326.2 

652.5 

978.7 

1305 

-1.0 239.1 479.1 719.2 959.2 

10,000 Trials 9,922 Displayed 

Forecast: PBPLev 1 

Figure 8.4.28 Microwave Ovens: Distribution of PBPs for CSL 1 

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EERE-2006-STD-0127 COMMENT 64.2
8.4.3.4 LCC and PBP Results 

Table 8.4.8 shows the LCC and PBP results for microwave ovens. For example, CSL 1 

shows an average LCC increase of $7 and a median PBP of 30 years. 

Table 8.4.8 Microwave Ovens: LCC and PBP Results by Energy Factor Level 

CSL EF 

Life-Cycle Cost Life-Cycle Cost Savings Payback Period 

(years) 

Average 

Installed 

Price 

Average 

Operating 

Cost 

Average 

LCC 

Average 

Savings 

Households with 

Median Average 

Net 

Cost 

No 

Impact 

Net 

Benefit 

Baseline 0.557 $220 $124 $344 - - - - - -

1 0.586 $232 $119 $351 -$7.4 90.6% 0.0% 9.4% 29.9 76.0 

2 0.588 $246 $119 $364 -$20.6 97.6% 0.0% 2.4% 58.1 147.5 

3 0.597 $267 $117 $384 -$40.3 99.2% 0.0% 0.8% 82.8 210.3 

4 0.602 $294 $116 $410 -$66.4 99.8% 0.0% 0.2% 116.6 296.1 

Figure 8.4.29 shows the range of LCC savings for the CSLs for microwave ovens. For 

each CSL, the top and the bottom of the box indicate the 75th and 25th percentiles, respectively. 

The bar at the middle of the box indicates the median; 50 percent of the households have LCC 

savings above this value. The ‘whiskers’ at the bottom and the top of the box indicate the 5th 

and 95th percentiles. The small box shows the average LCC savings for each CSL. Figure 8.4.30 

shows the range of PBPs for microwave ovens. Life-cycle Cost Savings ($) 

25 

0 

-25 

-50 

-75 

-100 

CSL 1a CSL 2a CSL 3a CSL 4a 

Candidate Standard Level 

Median Mean 

\ 

Figure 8.4.29 Range of LCC Savings for Microwave Oven Energy 

Factor Levels 

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EERE-2006-STD-0127 COMMENT 64.2
800 

600 

400 

200 

0 

CLS 1 CSL 2 CSL 3 CSL 4 

Candidate Standard Level 

Payback Period (years) 

Median Mean 

\ 

Figure 8.4.30 Range of Payback Periods for Microwave Oven 

Energy Factor Levels 

8.5 REBUTTABLE PAYBACK PERIOD 

DOE presents rebuttable PBPs to provide the legally established rebuttable presumption 

that an energy efficiency standard is economically justified if the additional product costs 

attributed to the standard are less than three times the value of the first-year energy cost savings. 

(42 U.S.C. §6295 (o)(2)(B)(iii)) 

8.5.1 Metric 

The basic equation for rebuttable PBP is the same as that shown in section 8.3, Payback 

Period Inputs. Unlike the analyses described in sections 8.2 and 8.3, however, the rebuttable 

PBP is not based on the use of household samples and probability distributions. Rather than 

distributions, the rebuttable PBP is based on discrete single-point values. For example, while 

DOE uses a probability distribution of regional energy prices in the distributional payback period 

analysis, it uses only the national average energy price from the probability distribution to 

determine the rebuttable PBP. 

Other than the use of single-point values, the most notable difference between the 

distribution PBP and the rebuttable PBP is the latter’s reliance on the DOE test procedure to 

8-73 

EERE-2006-STD-0127 COMMENT 64.2
determine a product’s annual energy consumption. For the products being considered under this 

standards rulemaking, the following sections identify the differences, if any, between the annual 

energy consumption determined for the distribution PBP and the rebuttable PBP. 

For the rebuttable PBP, DOE determined the annual energy consumption of cooking 

products based on the annual useful cooking energy output values in the DOE test procedure.27 

On average, the annual useful cooking energy output values that DOE used to determine the 

distribution PBPs are lower than the values in the DOE test procedure. Because the annual 

energy consumption is determined by dividing the annual useful energy cooking output value by 

the cooking product’s energy factor, the annual energy consumption values that DOE calculated 

for the determination of distribution PBP are on average lower than the annual energy 

consumption values DOE used to determine the rebuttable PBP.c

 The higher the annual energy 

consumption value, the greater the potential of energy efficiency improvements to save energy. 

Thus, the rebuttable PBPs for cooking products will be shorter than the distribution PBPs. Table 

8.5.1 shows the difference in the annual useful cooking energy output values that DOE used to 

calculate the rebuttable PBP and distribution PBP. 

Table 8.5.1 Annual Useful Cooking Energy Output Values: Comparison of Values Used 

for the Determination of Rebuttable PBP and Distribution PBP 

 Rebuttable PBP* Distribution PBP** 

 Electric Gas Electric Gas 

Product Type kWh/yr MMBtu/yr kWh/yr MMBtu/yr 

Cooktops 173.1 527.6 94.8 289.1 

Ovens 29.3 88.8 16.1 48.7 

Microwave Ovens 79.8 73.0 

* Based on DOE test procedure. 

** Based on more recent field energy consumption data (see Chapter 6, section 6.2). 

8.5.2 Inputs 

Inputs for the rebuttable PBP differ from the distribution PBP in that the calculation uses 

discrete values, rather than distributions, for inputs. Note that for the calculation of distribution 

PBP, because inputs for the determination of total installed cost were based on single-point 

values, only the variability and/or uncertainty in the inputs for determining operating cost 

contributed to variability in the distribution PBPs. The following summarizes the single-point 

values that DOE used in the determination of the rebuttable PBP. 

c

 As described in section 6.2 of Chapter 6, Energy Use Determination, DOE actually used a range of annual energy 

use values in its LCC and PBP analysis. The range or variability of annual energy use values is inherent to the 

household sample that DOE used to conduct the analysis. Although some households in the sample have an annual 

energy use value that is higher than what is calculated from the DOE test procedure, on average, the annual energy 

consumption determined from the household sample was lower than the annual energy consumption determined 

from the DOE test procedure. 

8-74 

EERE-2006-STD-0127 COMMENT 64.2
• Manufacturing costs, markups, sales taxes, and installation costs were all based on the 

single-point values used in the distributional LCC and PBP analysis. 

• As described in section 8.5.1, annual energy consumption is based on the DOE test 

procedure. 

• Energy prices are based on national average values for the year that new standards are 

assumed to take effect. 

• An average discount rate or lifetime is not required in the rebuttable PBP calculation. 

• The effective date of the standard is assumed to be 2012. 

8.5.3 Results 

DOE calculated rebuttable PBPs for each CSL relative to the distribution of product 

efficiencies assumed for the base case (refer back to section 8.2.6 for more details on the base 

case efficiency distributions for each product). In other words, DOE did not determine the 

rebuttable PBP relative to the baseline efficiency level, but relative to the current distribution of 

product efficiencies DOE determined for the base case (i.e., the case without new standards). 

The following sections present the results for the sets of products being analyzed for this 

standards rulemaking. 

8.5.3.1 Cooktops 

Table 8.5.2 presents the rebuttable PBPs for all three classes of cooktops. 

Table 8.5.2 Cooktops: Rebuttable Payback Periods 

Electric Coil Electric Smooth Gas 

CSL EF 

PBP 

years CSL EF 

PBP 

years CSL EF 

PBP 

years 

Baseline 0.737 - Baseline 0.742 - Baseline 0.156 -

1 0.769 3.2 1 0.753 664 1 0.399 3.1 

2 0.420 13.0 

8.5.3.2 Ovens 

Table 8.5.3 presents the rebuttable PBPs for all four classes of ovens. 

8-75 

EERE-2006-STD-0127 COMMENT 64.2
Table 8.5.3 Ovens: Rebuttable Payback Periods 

Electric Standard Electric Self-Clean Gas Standard Gas Self-Clean 

CSL EF 

PBP 

years CSL EF 

PBP 

years CSL EF 

PBP 

years CSL EF 

PBP 

years 

Baseline 0.1066 - Baseline 0.1099 - Baseline 0.0298 - Baseline 0.0540 -

1 0.1113 1.9 1 0.1102 77.0 1* 0.0536 10.3 1 0.0625 6.1 

2 0.1163 2.9 2 0.1123 104.3 2 0.0566 8.9 2 0.0627 8.2 

3 0.1181 4.4 3 0.0572 8.8 3 0.0632 8.5 

4 0.1206 20.8 4 0.0593 18.5 

5 0.1209 21.9 5 0.0596 18.8 

6 0.0600 19.6 

1a* 0.0583 6.9 

* Levels 1 and 1a correspond to designs that are utilized for the same purpose—eliminate the need for a standing 

pilot—but the technologies for each design are different. Level 1 is a hot surface ignition device while level 1a is 

a spark ignition device. 

8.5.3.3 Microwave Ovens 

Table 8.5.4 present the rebuttable PBPs for microwave ovens. 

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EERE-2006-STD-0127 COMMENT 64.2
Table 8.5.4 Microwave Ovens: Rebuttable Payback Periods for Energy Factor Levels 

CSL EF 

PBP 

years 

Baseline 0.557 -

1 0.586 16.4 

2 0.588 31.9 

3 0.597 45.4 

4 0.602 64.0 

8-77 

EERE-2006-STD-0127 COMMENT 64.2
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EERE-2006-STD-0127 COMMENT 64.2
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Method for Measuring the Energy Consumption of Conventional Ranges, Conventional 

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DC. 

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