### 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 Equipm ent 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 PAYB ACK 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
8-i

### 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: LC C 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: Pr oducer Price Indexes

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

............. 8-13 Table 8.2.5 Electric Smooth Cooktops: Standard-Level Manufact urer 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 fo r 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: Cons umer 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: Standa rd-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: Consum er 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

8-ii

### Table 8.2.22 Gas Self-Cleaning Ovens: Consum er Equipment Prices, Installation Costs, and Total Installed Costs

.................................................................................... 8-23 Table 8.2.23 Microwave Ovens: Ba seline Manufacturer Costs

.............................................. 8-24 Table 8.2.24 Microwave Ovens: Standard-L evel 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 E quipment 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 Ener gy Consumption by Efficiency Level

..... 8-28 Table 8.2.29 Electric Smooth Cooktops: A nnual Energy Consumption by Efficiency Level

.................................................................................................................. 8-28 Table 8.2.30 Gas Cooktops: Annual Energy C onsumption 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 Ener gy 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 fo r Gas Cooking Product Ignition Systems

....... 8-37 Table 8.2.41 Repair/Maintenance Costs for Ga s 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: Aver age, Minimum, and Maximum Product Lifetim es
............................................................................................................ 8-39 Table 8.2.44 Microwave Ovens: Produc t Lifetime Estimates and Sources

........................... 8-39 Table 8.2.45 Microwave Ovens: Average, Mi nimum, and Maximum Product Lifetimes

.... 8-40 Table 8.2.46 Data Used to Calculate R eal 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 fo r Household Debt Classes (percent)

........... 8-42 Table 8.2.49 Average Real Effective Intere st 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: Per cent 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
8-iii

### 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 Oven s: 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 PB P Results by Energy Factor Level

.................. 8-72 Table 8.5.1 Annual Useful Cooking Energy Output Values: Comparison of Values Used for the Determ ination 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 Payb ack Periods for Energy Factor Levels

...... 8-77 LIST OF FIGURES Figure 8.1.1 Flow Diagram of Inputs for th e 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: Ba se 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: Distributi on 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 Period s 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: Distri bution 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 fo r 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 fo r 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 fo r Electric Self-Cleaning Ovens

............................ 8-68 Figure 8.4.24 Range of Payback Periods for Gas Standard Ovens

.......................................... 8-69
8-iv

### 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: Distri bution of PBPs for CSL 1

.......................................... 8-71 Figure 8.4.29 Range of LCC Savings for Micr owave Oven Energy Factor Levels

................. 8-72 Figure 8.4.30 Range of Payback Periods for Mi crowave Oven Energy Factor Levels

........... 8-73

8-v

### 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 st andards on individual c onsumers. The effect of standards on individual consum ers includes a change in operating expense (usually decreased) and a change in purchase price (usually increase d). This chapter describes three metrics DOE used in the consumer analysis to determine th e effect of standards on individual consumers:

• Life-cycle cost(LCC) is the total consumer expe nse 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 ac tual conditions, rebuttabl e payback period is based on laboratory conditions, specif ically DOE test procedure inputs. Inputs to the LCC and PBP are discussed insections 8.2 and 8.3, respectively, of this chapter. Results for the LCC and PBP are pr esented in section 8.4. The rebuttable PBP is discussed in section 8.5. Key va riables and calculations are pr esented 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 spr eadsheets 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. Th e impact of more-efficient equipment on microwave oven standby power and CCWs w ill be addressed in subsequent TSDs.
8.1.1 General Approach for LCC and PBP Analysis Recognizing that several i nputs to the determination of consumer LCC and PBP are either variable or uncertain, DOE conducted th e LCC and PBP analysis by modeling both the uncertainty and variability in the inputs using Monte Carlo simulation and probability

8-1

### distributions. A detailed explanation of Mont e 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 pr obability distributions by using Microsoft Excel ® 

### spreadsheets combined with Crystal Ball ® 

### (a commercially available add-in program). In addition to characterizi ng several of the inputs to th e analysis with probability distributions, DOE also developed a sample of individual households that use each of the appliances. The household sample sizes for th e residential cooking pr oducts are: 2,896 for electric cooktops; 1,460 for electric standard ov ens; 1,302 for electric self-cleaning ovens; 1,598 for gas cooktops; 1,082 for gas standard ovens; 3 73 for gas self-cleaning ovens; and 4,150 for microwave ovens. By developing household samp les, 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 200 1 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 un its 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 nationa l 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 potentia l 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 asso ciated 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 percen t is still small enough to yield meaningful results. Therefore, DOE be lieves 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 variabilityin 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 discus sed 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

8-2

### generated a frequency chart depicting the vari ation 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 standar d. It represents the nu mber of years it will take the customer to recove r the increased purchase expe nse through decreased operating expenses. DOE categorizes inputs to the LCC and PB P analysis as follows: (1) inputs for establishing the purchase expense, otherwise known as the total in stalled cost, and (2) inputs for calculating the operating cost. The primary inputs for establishi ng the total insta lled cost are:

• Baseline manufacturer cost : The costs incurred by the manufacturer to produce equipm ent 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 a ssociated with converting the m anufacturer cost to a consumer equipmen t price. The markups and sale tax are described in detail in Chapter 7, Mark ups for Equipment Price Determination.

• Installation cost : The cost to the consumer of inst alling the equipment. The installation cost represents all costs required to inst all the equipment othe r than the marked-up consumer equipment price. The installation cost includes labor, overhead, and any miscellaneous materials and parts. Thus, th e total installed cost equals the consumer equipment price plus the installation cost. The primary inputs for calcul ating 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

8-3

### greater than baseline equipment). Chap ter 6, Energy Use Determination, details how energy consumption change with increasing equipment efficiency.

• Energy prices : Energy prices are the prices pa id 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 AEO2009reference 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 equipmen t is retired from service.

• Discount rate : The rate at which DOE discounted fu ture 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).

8-4Baseline 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 microwav e ovens. Each table summarizes the total installed cost inputs and the ope rating cost inputs including th e lifetime, discount rate, and energy price trends. DOE characterized all of th e total cost inputs with single-point values, but characterized several of the operating cost inputs with probabilitydistributions that capture the input’s uncertainty and/or variability. Fo r those inputs characte rized with probability distributions, the values provided inthe 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.

8-5

### 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 10 thyear; Electronic Ignition = $178 in 10 thyear 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 c onsumption decreases with in creased product efficiency.

8-6

### 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

8-7Input 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 10 thyear; Electronic Ignition = $178 in 10 thyear; Glo-bar Ignition = $147 every 5 thyear 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. Annua l use decreases with incr eased product efficiency.

8-8

### 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 efficiency8.2.2.4
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. Annua l use decreases with incr eased product efficiency.

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### 8.2 LIFE-CYCLE COST INPUTS Life-cycle cost is the total customer expe nse over the life of an appliance, including purchase expense and operating costs (includingenergy 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 

### OC t 

### 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 d ata for the LCC and PBP analysis in 2006, DOE expresses dollar values in 2006$. The following sections discuss total installe d cost, operating cost, lifetime, and discount rate.
8.2.1 Total Installed Cost Inputs DOE defines the total installed co st using the following equation: 

### IC = EQP + INST where: EQP

### = Equipment price (i.e., customer pric e for the equipment only), expressed in dollars, and INST 

### = Installation cost or the customer pric e 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.
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### 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 associ ated with producing equi pment 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 instal ling the equipment and represents all costs required to install the equipmen t other than the marked-up cons umer 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 baseli ne products based on the following equation:
IC BASE 

### = EQP BASE 

### + INST BASE 

### = COST MFG 

### × MU OVERALL _ BASE 

### + INST BASE 

### where:
IC BASE 

### = Baseline total installed cost, EQPBASE 

### = Consumer equipment price for baseline models, INST BASE 

### = Baseline installation cost, COST MFG 

### = Manufacturer cost for baseline models, and MU OVERALL_BASE 

### = Baseline overall markup (product of manufacturer markup, baseline retailer or distributor markup, and sales tax). DOE calculated the total installed cost for st andard-level products based on the following equation:
IC STD 

### = EQP STD 

### + INST STD 

### Δ 

### + INST 

# )
= 

# ( EQP BASE 

### + EQP STD 

# ) ( BASE 

### + Δ INST STD



### = 

# ( BASE 

### + INST BASE 

# ) ( EQP STD 

### + Δ INST STD 

### EQP 

### + Δ 

# )

= IC BASE 

### + 

# ( Δ COST MFG 

### × MU OVERALL _ INCR 

### + Δ INST STD 

# )

where:

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### IC STD 

### = Standard-level total installed cost, EQP STD 

### = Consumer equipment price for standard-level models, INST STD 

### = Standard-level installation cost, EQPBASE 

### = Consumer equipment price for baseline models, Δ EQP STD 

### = Change in equipment price for standard-level models, INST BASE 

### = Baseline installation cost, Δ INST STD 

### = Change in installation co st for standard-level models, IC BASE 

### = Baseline total installed cost, Δ COST MFG 

### = Change in manufacturer costfor standard-level models, and MU OVERALL_INCR 

### = Incremental overall markup (p roduct of manufacturer markup, incremental retailer or distri butor 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 fo r Residential Cooking Products 

### to develop the baseline manufact urer costs for cooktops. 3 

### As shown in Table 8.2.2, DOE developed baseline manufacturer costs for the three cooktop product clas ses: electric coil, electric smooth, and gas. Also included in Tabl e 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 co st data into 2006$. The last column in Table 8.2.2 shows the baseline manufacturer costs in 2006$. To pe rform the necessary monetary conversion for cooking products, DOE used producer price in dexes (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 materi als, and purchased parts. Because the PPI measures the price change from the perspectiv e of the manufacturer, DOE used the PPI to convert the manufacturer price (the manufacturer costs multip lied by the manufacturer markup) from 1990$ into 2006$. Specifically, DOE determined the ratio of the 2006 PPI to the 1990 PPI

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### 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 c ooking 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 costincreases for electric coil, el ectric smooth, and gas cooktops, respectively. Also included in each of the tabl es 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-L evel 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

### Overall Markup 

### The overall markup is the value determined by multiplying the manufacturer and retailer markups and the sales tax together to arrive ata 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 th e overall markup into a baseline markup (i.e., a markup used to convert the baselin e manufacturer cost into a cons umer price) and an incremental markup (i.e., a markup used to convert an incremen tal 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 co sts 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 nationallyrepresentative 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 us ed the average of the minimum and maximum labor costs as its estimate of installation cost s 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 Labo r Total Total Material* Labor** Minimum $270 $48.50 $318.50 $375 $240.50 $78.00 Maximum $1775 $121 $1896 $2175 $1673.50 $222.50 Average (2008$) $150.25 Average (2006$)*** $146.06
* Material costs including O&P equal bare costs plus 10% profit.
** DOE derived labor costs including O&P by subtr acting material with O&P from total with O&P.
* ** Converted to 2006$ by multiplying costs in 2008$ by the ratio of 2006 CPI (201.6) to 2007 CPI (207.3). Used th e 2007 CPI due to the unavailability of an annual 2008 CPI value. Source : RS Means, Mechanical Cost Data, 2008.

8-14

### 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 determin e the percent of households w ith 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 inits 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 th e floor line). The 1956 NEC tight ened this requirement to 12 linear feet. Finally, the 1959 NEC re quired that the outlets installe d in a room result in no point in any wall space be more than six feet from a r eceptacle outlet. To determine how to apply the information from the NEC, DOE reviewed the ga s 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 dete rmine 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 builtbefore 1940, almost 28 percent fell in the 1940­ 1959 age group, and the remaining 46 percent were bui lt in 1960 or later. DOE also determined that every household in each sample had an electr ic refrigerator. Therefore, DOE concluded that every household had at least one el ectrical outlet in th e kitchen. But beca use 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 add itional outlet installed in the kitchen to accommodate a gas cooking produc t that would need electricity to operate. To determine the percentage of househol ds that may actually require an outlet installation, DOE utilized the base case effici ency distribution for gas cooktops. As will be discussed in greater detail in section 8.2.6, the base case effi ciency distribution identifies the percentage of shipments at cert ain 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 purch ase gas cooking products with standing pilots would possibly be forced into installing an electr ical outlet to accomm odate products that require electricity to operate. DOE was not able to identify any in formation 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 p ilots to all households irresp ective 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 percen tage 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. B ecause DOE could not conclusively determine

8-15

### whether pre-1960 households would absolutely re quire the installation of an outlet, DOE assumed that an outlet would need to be inst alled to accommodate a gas cooking product that would require electricity to operate. Based on the above perc entages of shipments with standing pilots and households built prior to 1960, DOE cal culated 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 electr ical outlet to accomm odate a gas cooktop that requires electricity to operate. DOE based the type of electrical outlet and th e 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 cooki ng product that needs el ectricity to operate. Based on the NEC, not until 1962 were branch elect rical circuits required to include a grounding conductor or ground path to which the grounding cont acts of the receptacle could be connected. Therefore, because a ground-fault circuit-interru pter (GFCI) outlet may need to be installed, DOE based its installation costs solely on the inst allation 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 break er panel. DOE estimated the costs based on the installation of the following compon ents: (1) a 15-amp GFCI receptacl e 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 pr ovides both the bare co sts and the total costs including O&P for the installation of a 15-amp GF CI receptacle. Also included in Table 8.2.9 are the costs associated with installing the clamp and wire n ecessary 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 outle t is $235.

8-16

### 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 $35.00 Average (2006$)** $10.52 Residential Electrician Tr ip Charge (2006$) $20.84 Total Installation Cost (2006$) $235.12 * Cost in 2008$ 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 outle t installation is effectively sh ared between the cooktop and the oven. Thus, the resulting cost for a gas cooktop consumer needing to install an el ectrical 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 elec trical outlet to accommodate a ga s 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 eq uations 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 cost s 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

### Table 8.2.10 Electric Coil Cooktops: Consumer Equipm ent 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 Equi pment 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 Pri ces, 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 fo r Residential Cooking Products 

### to develop the baseline manuf acturer costs for ovens. 3 

### As shown in Table 8.2.13, DOE developed baseline manufacturer costs for the four oven pr oduct 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 en ergy factors and c ooking efficiencies.

8-18

### 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$. The last co lumn in Table 8.2.13 shows the baseline manufacturer costs in 2006$. To pe rform the necessary monetary conversion for cooking products, DOE used PPIs for hous ehold 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 increas es 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 in creases for electric standard, electric selfcleaning, gas standard, and gas se lf-cleaning ovens, respectively. Also included in each of the tables are the associated baseline energy factors and c ooking 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: Standa rd-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

### Table 8.2.16 Gas Standard Ovens: Standard-L evel 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 reta iler markups and the sales tax together to arrive at a single markup value. Table 8.2.18 shows the overall base line and incremental markups for electric and gas ovens. Refer to Chapter 7, Markups for E quipment 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 de scribed earlier for cooktops, DOE derived baseline installation costs for ovens based on data in the RS Means Mechanical Cost Data, 2008



### .

8-20

### Refer back to Table 8.2.8 to review the inst allation 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 insta llation costs for oven st andard levels on a supplemental analysis to the 1996 Technical Support Document on Residential Cooking Products 

### . In the supplemental analysis, DOE determ ined 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 esti mate 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 ho useholds 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 PB P analysis to establis h which households may require an outlet installation. As reported earl ier 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 ye ar 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 pr ior to 1960, representing 57 percent of the gas cooktop sample, may need an additional outlet in stalled in the kitchen to accommodate a gas cooking product that would need electricity to operate. To determine the percentage of househol ds that may actually require an outlet installation, DOE utilized the base case efficiencydistribution for gas standard ovens. As will be discussed in greater detail in section 8.2.6, the base case effi ciency distribution identifies the percentage of shipments at certain efficiency le vels. 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 electrica l 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 stan ding pilots. For exampl e, it is unknown if consumers only purchase gas cooking products with standing pilots because an electrical outlet is not nearby. Therefore, for purposes of conduc ting 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 st andard 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 likel y to be allocated a product with a standing pilot. Because DOE could not conclusively determine whether pre- 1960 households would ab solutely require the

8-21

### installation of an outlet, DOE assumed that an ou tlet would need to be in stalled to accommodate a gas cooking product that would require electricity to operate. Based on the above percentages of shipments with standing pilots and househol ds built prior to 1960, DOE calculated that 10 percent of the overall gas standard oven househol d sample (57 percent of households multiplied by 17.6 percent of shipments) woul d need to install an electrical outlet to accommodate a gas standard oven that require s 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 st andard oven consumer n eeding 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 elec trical outlet to accommodate a ga s 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 th e 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 cons umer equipment price, installation costs, and total installed costs for the electric standard, electric self-cleaning, ga s standard, and gas selfcleaning oven product classes. Prices and cost s are presented at the baseline level and each standard level. Table 8.2.19 Electric Standard Ovens: Consumer Equi pment 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

### Table 8.2.20 Electric Self-Cleaning Ovens: Consum er 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 Equipmen t 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. ** A dded 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

### 8.2.1.3 Microwave Ovens Baseline Manufacturer Cost 

### DOE used its 1996 Technical Support Document fo r Residential Cooking Products 

### to develop the baseline manufactur er 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$. The last co lumn in Table 8.2.23 shows the baseline manufacturer costs in 2006$. To pe rform the necessary monetary conversion for cooking products, DOE used PPIs for hous ehold 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 increas es 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 reta iler markups and the sales tax together to arrive at a single

8-24

### markup value. Table 8.2.25 shows the overall ba seline and incremental markups for microwave ovens. Refer to Chapter 7, Markups for Equi pment 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 manu facturer 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 need s to covert all cost data into 2006$. To perform the necessary monetary conversion fo r cooking products, DOE used PPIs that are applicable to household cooking app liance manufacturers. Refer b ack to Table 8.2.3 to review the 1990 and 2006 PPIs for electric cooking appliance manufacturers that DOE used to convert manufacturer microwave ove n prices from 1990$ 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 equi pment prices, installation costs, and total installed costs for microwave ovens. Prices and co sts 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

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### 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 mainta ining equipment operation. Table 8.2.27 shows the inputs for determini ng 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 varywith the product efficiency. That is, the energy consumption associated with standard-level equipment (i.e., equipment with efficiencies greater than baseline equipment) are less thanthe consumptions asso ciated with baseline equipment. Energy prices 

### are the prices paid by consumers fo r energy (i.e., electricity, gas, or oil). Multiplying the annual en ergy consumption by the energy pr ice yields the annual energy cost. Repair costs 

### are associated with repairing or re placing 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 fu ture 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:

8-26__ 

### OC BASE 

### = Baseline operating cost, EC BASE 

### = Energy expenditure associated withoperating the baseline equipment, RC BASE 

### = Repair cost associated with component failure for the baseline equipment, MC BASE 

### = Service cost for maintain ing baseline equipment operation, AEC BASE 

### = Annual energy consumption for baseline equipment, and PRICE ENERGY 

### = 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 

### Δ AEC STD 

# ) × PRICE ENERGY 

### + 

## ( RC BASE 

### + Δ RC STD 

## ) + 

## ( MC BASE 

### + Δ MC STD 

## ) where:
OC STD 

### = Standard-level operating cost, EC STD 

### = Energy expenditure associated withoperating standard-level equipment, RC STD 

### = Repair cost associated with component failure for standard-level equipment, MC STD 

### = Service cost for maintaining standard-level equipment operation, AEC STD 

### = Annual energy consumption fo r standard-level equipment, PRICE ENERGY 

### = Energy price, Δ

AEC STD 

### = Change in annual energy consumption caused by standard-level equipment, Δ RC STD 

### = Change in repair cost caused by standard-level equipment, and ΔMC STD 

### = 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 th e 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 st andard-level products. As described in Chapter 6 and the beginning of th is 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 c onsumption 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.

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### The tables presented below are based on the energy use determination analysis described in Chapter 6. Keep in mind that the annual en ergy consumption values inthe tables below are averages. DOE captured the variability in en ergy 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 Cons umption 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.

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### Table 8.2.31 Electric Standard Ovens: Annual Ener gy 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: Annua l 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 k Wh/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 te st 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

### Table 8.2.34 Gas Self-Cleaning Ovens: Annual Ener gy 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 c onsumption due to hot surface i gnition 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 th at 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 re gional variability in en ergy prices associated with each household. The methodology that DOE used for deriving the energy prices is presented below. Included are tables that summarize the re gional energy prices for each product.

8-30

### 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 va lues leaving out data for the large State—for example, the Pacific region average does not incl ude California, and the West South Central does not include Texas. Residential Electricity Prices 

### DOE estimated electricity prices for re sidential 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 kilowa tt hours (kWh), revenues from el ectricity sales, and number of consumers, for the residential, commercial, and i ndustrial sectors, for every utility serving final consumers. The calculation of an average reside ntial electricity price proceeds in two steps:
1. For each utility, estimate an average residentia l 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 reside ntial 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

8-31

### used saturation data from the 2001 RECS to de termine how the nationa l saturation of each cooking appliance was distributed over the 13 ge ographic areas. Because DOE conducted the LCC and PBP analysis in 2006$, all el ectricity prices are in 2006$. Table 8.2.37 Average Residential Electricity Prices for Cooking Products in 2006

Geographic Area Avera g e 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 us ing 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 ca lculate 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 cubi c feet ($/tcf).

8-32

### 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

### Table 8.2.39 Average Residential Natural Gas Pri ces 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 fore cast 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 Progr am (FEMP) by EIA and used the average rate of change during 2020–2030. The Department calculated LCC and PBP usi ng three separate projections: Reference, Low Economic Growth, and High Economic Growth. These three cases reflect the uncertainty of economic growth in the forecast period. Th e high and low growth cases show the projected effects of alternative growth assumptions on ener gy markets. Figures 8.2.1 and 8.2.2 show the residential electricity and natural gas price tren ds, respectively, based on the three projections. The AEO 2009 Early Release 

### provides only forecasts for the reference case. Therefore, DOE scaled the AEO 2008 13 

### high growth case and low-grow th forecasts by the ratio of AEO 2009 Early Release 

### and AEO 2008

### reference case forecasts to esti mate high-growth and low-growth

8-34

### price trends. For the LCC results presented insection 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 YearPrice 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 YearPrice Trend (2006 = 1) High Growth Reference Low-Growth



### Figure 8.2.2 Natural Gas Price Trends

8-35

### 8.2.2.4 Repair and Maintenance Costs 

### Typically, small incremental ch anges in product efficiency incur no, or only very small, changes in repair and maintenance costs over baseline products. However, equipment with efficiencies that are significantl y higher than the baseline are mo re 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 maintenan ce costs for products more effi cient than baseline products. For gas cooking products, DOE did determ ine the repair and maintenance costs associated with different types of ignition system s. DOE contacted six contractors, one each in Arizona, California, Colorado, Massachusetts, Minnesota, and Texas, to estimate whether repair and maintenance costs differ between standing pi lot and non-standing pilot ignition systems. Table 8.2.40 summarizes the findings from th e discussions with the six contractors.

8-36

### 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-ba r/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, DO E determined that repair and maintenance are needed once every 10 years to clean valves. For el ectric glo-bar/hot surfa ce ignition systems, the glo-bar requires replacement appr oximately every five years. Inthe 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 ga s cooking product ignition systems (see Table 8.2.41).

8-37

### Table 8.2.41 Repair/Maintenance Costs for Gas C ooking Product Ignition Systems Ignition System Repair/Maintenance Cost Occurrence Standing Pilot* $126 Once—In the 10 th year of Cooking Product’s Life Glo-bar/hot surface** $147 Every 5 th year of Cooking Product’s Life Electronic spark*** $178 Once—In the 10 th 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 fo r cooking products are presented below.
8.2.3.1 Cooktops and Ovens 

### For cooktops and ovens, DOE considered the so urces listed in Table 8.2.42 to estimate product lifetimes. Table 8.2.42 Cooktops and Ovens: Product Li fetime 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-owne r 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 us ers. 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 mini mum product lifetime. To establish the maximum product lifetime, DOE took the di fference between the minimum and average values (nine years for electric products and seven years for gas pr oducts) and added them to the average product lifetime. The minimum, average, and maximum lifetime estimates are shown in Table 8.2.43.

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### Table 8.2.43 Cooktops and Ovens: Average, Minimu m, 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 produc t lifetimes with Wei bull distributions. Appendix 8C presents the Weibu ll 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 undere stimate the act ual lifetime of the products in those cases wh ere 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.

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### 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 Weibu ll distributions of microwave ove ns that DOE used in the LCC and PBP analysis.
8.2.4 Discount Rates 

### DOE derived the discount rates for the L CC and PBP analysis from estimates of the finance cost of purchasing the c onsidered products. Following fi nancial theory, the finance cost of raising funds to purchase appliances can be interprete d as: (1) the financia l cost of any debt incurred to purchase equipment, or (2) the oppor tunity cost of any equity used to purchase equipment. For the residential products, th e 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 cons truction 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-inflati on) 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 hous ehold at the 25-percent marginal tax rate. When adjusted for inflation of two percent, the eff ective 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 mort gage 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 be low 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 hous eholds 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

aFisher formula is given by: Real Interest Rate = [(1 + Nominal Interest Rate) / (1 + Inflation Rate)] – 1.
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### 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 Rate 17 (%) Marginal Tax Rate applicable to Mortgage Interest 18 (%)* 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 househol ds, DOE sampled a rate for each household from a distribution of rates. DOE developed a pr obability 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 fi nancing vehicles used to purchase replacement equipment. The shares of different financing ve hicles in total replacement equipment purchases are unknown, however. DOE’s approach involves identifying all possibl e 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 mo rtgages and equity of assets considered non-liquid (such as retirement accounts), since th ese 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 e quity and debt portfolios using SCF 

### data for 1989, 1992, 1995, 1998, 2001, and 2004. Table 8.2.47 shows the averag e shares of each considered class. DOE used the mean share of each class across the si x 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.
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### 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 associ ated 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 us ed 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 e ffective real rates in each year and the mean rate across the years. Si nce the interest rates fo r each debt carried by households in these years were established ov er 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.

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### 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 househol ds, 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 nomin al and real interest ra tes 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 representati ve 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 househol ds, 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

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### deviation from the distribution. Appendix 8D pres ents the probability di stribution of interest rates for each asset type that DOE used in the LCC and PBP analysis. Table 8.2.51 summarizes the mean real effec tive 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 pr ovides 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. Th e 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 Us ed 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 whena new standard become s 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, whic h is March 2012. The Department calculated the LCC for all consumers as if they each would pur chase a new piece of equipment in the year the standard takes effect.

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### 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. Howe ver, some consumers already purcha se products with efficiencies greater than the baseline levels. Thus, to accurately estimate the percentage of consumers that would be affected by a particular standard le vel, DOE took into account the distribution of product efficiencies currently in the marketplace. In other word s, rather than analyzing the impacts of a particular standard level assumi ng 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 c onsumers purchase under the base case (i.e., the case without new energy efficiency standards). As noted in section 8.1.1, DOE’s appr oach for conducting the LCC analysis for residential cooking products relied on developi ng samples of households that use each of the products. DOE used a Monte Carlo simulation t echnique to perform the LCC calculations on the households in the sample. Using the current di stribution of product effi ciencies, DOE assigned each household in the sample a unique product efficiency. Because it performed the LCC calculations on a household-by-house hold 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 e fficiency of the standard level under consideration, the LCC calculation would reve al 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 cookt op efficiency with an energy efficiency descriptor, very little is known regarding the di stribution of product effici encies that consumers in the United States currently purchase. As discussed in Section 3.14.3 of Chap ter 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 bei ng sold rather than the percent of shipments being sold. Thus, because it is unknown how re presentative 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 cu rrently purchase products at th e 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 cookt ops that are shipped with standing pilots. Based on shipments data submitted by AHAM for the years 2003–2005, ga s standard (i.e., non- self-cleaning) ranges

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### are the only product type that are s till 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 hi storical percentages fr om 1988 to 1996 are based on data from DOE’s supplemental anal ysis 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 Ta ble 8.2.52 to graphicallydepict 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.

8-460% 10% 20% 30% 40% 50%

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 YearPercent 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 pilotl ess 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 sh ares represent the equi pment that households would have purchased in the year 20 12 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

### As discussed in Section 3.14.3 of Chap ter 3, Market and Technology Assessment, NRCanada does publish the efficiency of electri c 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 el ectric oven efficiency distributi on is of actual shipments sold in the U.S., DOE did not use NRCanada’s data fo r this analysis. Inst ead, 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 ove ns that are shipped withstanding pilots. Based on shipments data that AHAM submitted for the years 2003–2005, gas st andard (i.e., non-selfcleaning) ranges are the only pr oduct 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 pe rcentages 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 de creasing percentage in ga s 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.

8-480% 10% 20% 30% 40% 50%

1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 YearPercent 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 consumer s 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 withcontractors to establish the re pair 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 th e remaining ten percent utilize spark ignition systems. All gas self-cleaning ovens already have pilotless igniti on systems (i.e., the baseline efficiency level uses pilotless ignition). Because virtually nothing is known about the distribution of gas self-cleani ng 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.

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### Table 8.2.55 Ovens: Base Case Market Shares Electric Standard Electric Self-Cle an 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 te chnologies for each design are differen t. 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 Chap ter 3, Market and Technology Assessment, AHAM did provide limited data on microwave oven efficiency. Ov en 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 e quipment as a result of lower operating costs.

8-50

### 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 operati ng 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:
Δ IC PBP = Δ OC 

### where: Δ IC 

### = Difference in the total installed cost between the more efficient standard level and the baseline design, and Δ OC 

### = 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 installe d 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 in stalled cost are the equipment price and the installation cost. The inputs to the operating costs are the annual energy co st, 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. Di scount 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 result s 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 househol ds 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. Th ese standard levels are also referred to as candidate standard levels (CSL).

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### DOE calculated LCC savings and PBPs relati ve to the base case equipment that it assigned to the households. As discussed in se ction 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 betw een the LCC of a specific and the LCC of the baseline equipment. In the subsections below, DOE presents figur es showing the distribut ion of LCCs in the base case for each product class. Also presente d below for a specific are figures showing the distribution of LCC impact s 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. EachLCC 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 probabil ity 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 ne t 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 e fficiency than the CSL. To illustrate the range of LCC and PBP impacts among the sample househol ds, 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 fr equency charts for the base case LCC for the three cooktop product classes. The figures be low show the mean LCC of the base case distribution, as well as the full range of LCCs.

8-52Frequency 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

8-53Frequency 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 freque ncy chart showing the distribution of LCC differences for the case of CSL 2 fo r 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 +Infin ity,” 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

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### 8.4.1.3 Standard-Level PBP Distributions 

### Figure 8.4.5 is an example of a frequenc y chart showing the di stribution of payback periods for CSL 2 for gas cooktops. The large ‘s pike’ 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 fo r 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 ign ition 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 aver age 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 hous eholds is $15. With regard to the PBPs shown below, DOE determined the median and average values by excluding the percenta ge of households not impacted by the standard. For example, in th e case of CSL 1 for gas cooktops, over 93 percent of the households did not fact or into the calculation of the median and average PBP.

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### 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 Operatin g 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 Operatin g 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 Operatin g 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, respectiv ely. For each CSL, the top and the bottom of the box indicate the 75 th 

### and 25 th

### 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 th e top of the box indicate the 5 th 

### and 95 th

### 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 fi gures, 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 savi ngs or its increase in repair and maintenance costs is greater than its lifetime energy cost savi ngs. Undefined PBPs occur for 1.1 percent of households at CSL 1 for electric coil cooktops, 1.1 percent of hous eholds at CSL 1 for electric

8-56

### smooth cooktops, and 0.8 percent of households atCSL 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 LevelLife-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 LevelLife-cycle Cost Savings ($)

Median Mean



### Figure 8.4.7 Range of LCC Savings for Electric Smooth Cooktops

8-57-50 -25

0 25 50 75 100 125 150

CSL 1 CSL 2 Candidate Standard LevelLife-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 LevelPayback Period (years) Median Mean

\



### Figure 8.4.9 Range of Payback Periods for Electric Coil Cooktops

8-580 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

CSL 1 Candidate Standard LevelPayback 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 LevelPayback Period (years) Median Mean



### Figure 8.4.11 Range of Payback Periods for Gas Cooktops

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### 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 s how the frequency charts for the base case LCC for the four oven product classes. The figur es 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

8-60Frequency 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 freque ncy chart showing the distribution of LCC differences for the case of CSL 6 for gas standa rd ovens. In the figure, a text box next to a vertical line at that va lue on the x axis shows the mean change in LCC (a cost of $81 in the example here). The note, “Certainty is 6.83% fr om $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

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### 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: Distributio n of LCC Impacts for CSL 6
8.4.2.3 Standard-Level PBP Distributions 

### Figure 8.4.17 is an example of a frequenc y chart showing the di stribution 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.

8-62Frequency 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 (pilo tless 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 savi ngs 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 numb er 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 stan dard. For example, in the case of CSL 1a for gas standard ovens, 82 percent of the households did not factor into the calculat ion of the median and average PBP.

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### 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 Operatin g 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 Operatin g 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 Operatin g 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 en d of the table because levels 2 through 6 are derived from level 1.

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### 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 Operatin g 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 s how 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 75 th 

### and 25 th 

### 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 th e bottom and the top of the box indicate the 5 th 

### and 95 th

### 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 showthe 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., wher e 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.

8-65-100 -75 -50 -25

0 25 50 75

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 Candidate Standard LevelLife-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 LevelLife-cycle Cost Savings ($) Median Mean

\



### Figure 8.4.19 Range of LCC Savings for Electric Self-Cleaning Ovens

8-66-400 -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 LevelLife-cycle Cost Savings ($)

Median Mean \



### Figure 8.4.20 Range of LCC Savings for Gas Standard Ovens

50Life-cycle Cost Savings ($) 25

0

-25

-50 Median \

Mean
CS L1 CS L 2 CS L3 Candidate Standard Level 

### Figure 8.4.21 Range of LCC Savings for Gas Self-Cleaning Ovens

8-670 500 1000 1500 2000 2500

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 Candidate Standard LevelPayback 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 LevelPayback Period (years) Median Mean

\



### Figure 8.4.23 Range of Payback Periods for Electric Self-Cleaning Ovens

8-680 100 200 300 400 500 600 700 800 900 1000 1100

CSL 1 CSL 2 CSL 3 CSL 4 CSL 5 CSL 5 CSL 1a Candidate Standard LevelPayback Period (years) Median Mean

\



### Figure 8.4.24 Range of Payback Periods for Gas Standard Ovens

500Payback 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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### 8.4.3 Microwave Ovens
8.4.3.1 Base Case LCC Distributions 

### Figure 8.4.26 shows the frequency chart fo r 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 freque ncy chart showing the distribution of LCC differences for the case of CSL 1. In the figure, a text box next to a vertic al 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 ove ns 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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### 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 frequenc y chart showing the di stribution of payback periods of CSL 1. DOE can generate a freque ncy chart like the one s hown 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

8-71

### 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 Re sults by Energy Factor Level

CSL EF Life-Cycle Cost Life-Cycle Cost Savings Payback Period (years) Average Installed

Price Average Operatin g 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 75 th 

### and 25 th

### percentiles, respectively. The bar at the middle of the box indicates the me dian; 50 percent of the households have LCC savings above this value. The ‘whiskers’ at the bottom and the top of the box indicate the 5 th 

### and 95 th

### percentiles. The small box shows the averag e 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

8-72800

600

400

200

0 CLS 1 CSL 2 CSL 3 CSL 4 Candidate Standard LevelPayback 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 th e legally established rebuttable presumption that an energy efficiency standard is economi cally justified if the additional product costs attributed to the standard are le ss 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 insections 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 disc rete single-point values. For example, while DOE uses a probability distribution of regional en ergy 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 valu es, 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

### determine a product’s annual energy consumption. For the products being considered under this standards rulemaking, the following sections iden tify the differences, if any, between the annual energy consumption determined for the di stribution PBP and the rebuttable PBP. For the rebuttable PBP, DOE determined the annual energy consumption of cooking products based on the annual useful cooking ener gy output values in the DOE test procedure. 27 

### On average, the annual useful cooking energy out put 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 ar e 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 th e 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 PB P and distribution PBP. Table 8.5.1 Annual Useful Cooking Energy Output Va lues: Comparison of Values Used for the Determination of Rebu ttable 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 di ffer from the distribution PBP in that the calculation uses discrete values, rath er than distributions, for inputs. Note that for th e calculation of distribution PBP, because inputs for the determination of to tal installed cost were based on single-point values, only the variability and/or uncertaintyin the inputs for dete rmining operating cost contributed to variability in the distribution PBPs. The following summarizes the single-point values that DOE used in the determ ination 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 va riability 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 fro m 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.
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### • Manufacturing costs, markups, sales taxes, and installation costs we re all based on the single-point values used in the distributional LCC and PBP analysis.

• As described in section 8.5.1, annual en ergy consumption is based on the DOE test procedure.

• Energy prices are based on national average va lues for the year that new standards are assumed to take effect.

• An average discount rate or lifetime is notrequired 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 CS L 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 with out new standards). The following sections present the results for th e sets of products being analyzed for this standards rulemaking.
8.5.3.1 Cooktops 

### Table 8.5.2 presents the rebuttable PB Ps 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.

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### Table 8.5.3 Ovens: Rebuttable Payback Periods Electric Standard Electric Self-Cle an 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 rebuttabl e PBPs for microwave ovens.

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### 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

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### REFERENCES

1 

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### , September, 2008. Washington, DC. < http://www1.eere.energy.gov/buildings/appliance_ standards/residential/home_appl_tsd.html >
2 

### U.S. Department of Energy-En ergy Information Administration. Residential Energy Consumption Survey, 2001 Public Use Data Files 

### , 2001. Washington, DC. < http://www.eia.doe.gov/emeu/recs/recs2001/publicuse2001.html >

3 

### U.S. Department of Energy-O ffice of Codes and Standards. Technical Support Document for Residential Cooking Products, Volume 2: Pote ntial Impact of Altern ative Efficiency Levels for Residential Cooking Products 

### , April, 1996. Prepared for the U.S. DOE by Lawrence Berkeley National Laboratory, Berkeley, CA. < http://www.eere.energy.gov/buildings/appliance_standards/resi dential/cooking_pro ducts_0998_r.html >
4 

### U.S. Department of Labor-B ureau of Labor Statistics. Producer Price Indexes, Industry Data, 335221 Household Cooking Appliance Manufacturers, 

### 2006. Washington, DC. < http://www.bls.gov/ppi/home.htm >

5 

### RS Means. Mechanical Cost Data, 31 st 

### Annual Edition 

### , 2008. Kingston, MA.

6 

### U.S. Department of Labor-B ureau of Labor Statistics. Consumer Price Indexes, Industry Data, Consumer Price Index-All Urban Consumers (Current Series), U.S. All items, Series Id: CUUR0000SA0 

### , 2006. Washington, DC. < http://www.bls.gov/cpi/home.htm >

7 

### D.A. Dini, Some History of Residential Wiring Practices 

### , 2006. Underwriters Laboratories, Inc. < http://www.nfpa.org/assets/files //PDF/Proceedings/Dini_paper_­ _History_Residential_Wiring.pdf >

8 

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### Annual Edition 

### , 2003. Kingston, MA.

9 

### PAS Publications. PAS Billing Rates Survey: Billing Rates For Electrician — All Regions



### . <http://www.pas1.com/pdf/srate.pdf> (Last Accessed: April 25, 2008)

10 

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### 2006. Washington, DC. < http://www.eia.doe.gov/cneaf/e lectricity/page/eia861.html >

11 

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### , 2006. Washington, DC. < http://www.eia.doe.gov/oil_gas/natural_gas/data_publications/natural_gas_monthly/ngm.htm >

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### U.S. Department of Energy-En ergy Information Administration. Annual Energy Outlook 2009 Early Release 

### , December, 2008. Washington, DC. < http://www.eia.doe.gov/oiaf/aeo/ >

13 

### U.S. Department of Energy-En ergy Information Administration. Annual Energy Outlook 2008 with Projections to 2030 

### , June, 2008. Washington, DC. DOE/EIA-0383(2008)

14 

### The Life Expectancy/Replacement Picture. Appliance Magazine, 

### September, 2005. Vol. 62, No. 9.

15 

### California Measurement Advisory Committee. CALMAC Protocols, Appendix F, Effective Useful Live Values for Majo r Energy Efficiency Measures 

### , September, 2000. < http://www.calmac.org/events/APX_F.pdf >

16 

### The Federal Reserve Board. 1989, 1992, 1995, 1998, 2001, 2004 Survey of Consumer Finances 

### , 1989, 1992, 1995, 1998, 2001, 2004. < http://www.federalreserve.gov/pubs/oss/oss2/scfindex.html >

17 

### U.S. Department of Labor-B ureau of Labor Statistics. Bureau of Labor Statistics Data, Prices & Living Conditions 

### , 2006. Washington, DC. < http://data.bls.gov/ >

18 

### National Bureau of Economic Research. U.S. Federal and State Average Marginal Income Tax Rates 

### , 2006. < http://www.nber.org/~taxsim/marg inal-tax-rates/plusstate.html > (Last accessed, October 10, 2006).

19 

### The Federal Reserve Board. Federal Reserve Statistical Release, Selected Interest Rates, Historical Data, Instrument: CDs (secondary market), Maturity: 6-month, Frequency: Annual, Description: Average rate on 6-month negotiable certificates of deposit (secondary market), quoted on an investment basis 

### , 2006. Washington, DC. < http://www.federalreserve. gov/releases/H15/data.htm >

20 

### The Federal Reserve Board. Federal Reserve Statistical Release, Selected Interest Rates, Historical Data, Instrument: State and local bonds, Maturity: 20-year, Frequency: Monthly, Description: Bond buyer go 20-bond municipal bond index 

### , 2006. Washington, DC. < http://www.federalreserve. gov/releases/H15/data.htm >

21 

### The Federal Reserve Board. Federal Reserve Statistical Release, Selected Interest Rates, Historical Data, Instrument: Corporate bonds/Moody’s Seasoned AAA, Frequency: Annual, Description: Moody’s yield on seasoned corporate bonds – all industries, AAA 

### , 2006. Washington, DC. < http://www.federalreserve .gov/releases/H15/data.htm >

22 

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### , 2006. < http://mortgage-x.com/general/indexes/default.asp > (Last accessed, October 10, 2006).

8-7923 

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### , 2006. < http://pages.stern.nyu.edu/~adamodar/>

24 

### U.S. Department of Energy. Implementation Report: Energy Conservation Standards Activities. Submitted Pursuant to Secti on 141 of the Energy Policy Act of 2005 

### , August 2006. Washington, DC. < http://www.eere.energy.gov/buildings/appliance_ standards/pdfs/implem entation_report_0806.pdf >

25 

### Association of Home Appliance Manufacturers. AHAM Data on Cooking Products for Efficiency Standards Rulemaking 

### , August 23, 2006. Letter to Building Technologies Program, U.S. Department of Energy.

26 

### Appliance Recycling Information Center. INFOBulletin #8, Applications in Appliances 

### , March 2005. Washington, DC. < http://www.aham.org/industry/ht/a ction/GetDocumentAction/id/5370 >

27 

### U.S. Office of the Federal Register. Code of Federal Regulations, Title 10, Part 430 - Energy Conservation Program for Consumer Products, Subpart B, Appendix I: Uniform Test Method for Measuring the Energy Consump tion of Conventional Ranges, Conventional Cooking Tops, Conventional Ovens, and Microwave Ovens 

### , January 1, 2007. Washington, DC.

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