New regulation governing energy efficiency in distribution transformers, why the Department of Energy adopted this new regulation, which SolaHD products are affected by this regulation and how these changes affect SolaHD customers.

1. New Energy Conservation Standards for Transformers
Mark Dziedzic, Product Marketing Manager, Emerson – SolaHD:
• How SolaHD is meeting U.S. Department of Energy requirements for 2016
• What the changes mean for our customers

2. PRESENTATION OVERVIEW
1. What is the new regulation governing energy efficiency in
distribution transformers?
2. Why did the Department of Energy adopt this new regulation?
3. Which SolaHD products are affected?
4. What changes have we made to our LVGP transformers to
comply with the new regulation?
5. How do these changes affect our SolaHD customers?
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3. WHAT IS THE NEW REGULATION?
The U.S. Department of Energy is mandating higher efficiency standards for
distribution transformers manufactured in or imported into the U.S. beginning
in 2016.
• EPACT 2005: National Electrical Manufacturer’s
Association (NEMA) TP 1 standard starting in
2007
• DOE 2016: TSL-2, requiring 30% lower power
losses compared to NEMA TP 1 (DOE2007)
The new standard reflects extensive industry input, achieving significant
energy savings while minimizing disruption and cost.
Legislation covers other types of transformers which we will not be discussing
at this time.
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4. WHAT IS THE NEW REGULATION?
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Transformer TP-1 (2007) to DOE2016 Energy Efficiency Level Changes Comparison — DOE2016
Enforced by January 1, 2016 — Note: Efficiency testing is done at 35% loading.
Single-Phase Three-Phase
kVA
01/01/2007 and
01/01/2016 Eff %
DOE2016 and
01/01/2016 Eff %
kVA
01/01/2007
Eff %
DOE2016 and
01/01/2016 Eff %
15 97.7 97.7 15 97.0 97.89
25 98.0 98.0 30 97.5 98.23
37.5 98.2 98.2 45 97.7 98.4
50 98.3 98.3 75 98.0 98.6
75 98.5 98.5 112.5 98.2 98.74
100 98.6 98.6 150 98.3 98.83
167 98.7 98.7 225 98.5 98.94
No Change in 2016 300 98.6 99.02
500 98.7 99.14
Three-Phase Affected
TP1 : 75000 ∗ 35% ∗ (1 − 98%) = 525 𝑊𝑎𝑡𝑡𝑠 𝑙𝑜𝑠𝑡
DOE2016 : 75000 ∗ 35% ∗ (1 − 98.6%) = 367.5 𝑊𝑎𝑡𝑡𝑠 𝑙𝑜𝑠𝑡

5. EFFICIENCY AND COST SAVINGS
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Low Voltage TP-1 vs. DOE 2016 Efficiency and Cost Savings Comparison
kVA
TP-1/DOE 2007 DOE2016
DOE2016
Savings per
Year Over
TP-1/DOE 2007
Product
Efficiency %
Operation Cost
per Year
Efficiency %
Operation Cost
per Year
15 97.0 $166 97.89 $116 $50
30 97.5 $276 98.23 $195 $81
45 97.7 $381 98.4 $265 $116
75 98.0 $552 98.6 $386 $166
112.5 98.2 $745 98.74 $522 $223
150 98.3 $938 98.83 $646 $292
225 98.5 $1242 98.94 $877 $365
300 98.6 $1545 99.02 $1082 $463
500 98.7 $2391 99.14 $1582 $809

6. WHAT DOES THIS NEW REGULATION MEAN?
Understanding the savings of an energy-efficient transformer is more difficult than
other products for many reasons.
Transformers are already highly efficient:
• 97.0%-99.5% efficiency.
• Improvements reduce power losses by approximately 30%
A transformer will last for 25–30 years with minimal maintenance.
• An improvement in efficiency will pay dividends for decades.
A transformer is always energized.
• Any improvements will result in savings when measured 24/7/365.
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7. WHY DID THE DEPARTMENT OF ENERGY
ADOPT THIS NEW REGULATION?
The goal of this new regulation is to reduce
energy consumption and greenhouse gas
emissions for a healthier environment.
• The new efficiency standard will reduce electrical losses
by an average of 30% compared to the current for
standard transformers
• The Department of Energy predicts energy savings up
3.63 quadrillion BTUs over a
30 year period and an economic return of
$12.9 billion
• The new standard will reduce CO2 emissions
by 265 million metric tons
Every company must comply with this legislative
change.
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8. WHICH SolaHD PRODUCTS ARE AFFECTED?
We are updating these products:
• Low-voltage general purpose (LVGP)
distribution transformers
• Three-phase models only
• Enclosure sizes are unchanged
Other transformer products are unaffected.
The new regulation goes into effect
January 1, 2016.
• After that date, existing inventory may be
sold, but noncompliant transformers may
no longer be built or imported.
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9. WHAT TYPES OF TRANSFORMERS ARE NOT
AFFECTED?
Special purpose transformers are excluded from the definition of “distribution
transformers” and are not required to meet new energy efficiency standards at this
time:
• Autotransformers
• Drive (isolation) transformers
• Grounding transformers
• Machine-tool (control) transformers
• Non-ventilated transformers
• Rectifier transformers
• Regulating transformers
• Sealed transformers
• Special-impedance transformers
• Testing transformers
• Transformers with a tap range of 20 percent or more
• Uninterruptible power supply transformers
• Welding transformers
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10. WHAT CHANGES HAVE WE MADE TO LVGP TRANSFORMERS TO
COMPLY WITH THE NEW REGULATION?
Increased efficiency is achieved by increasing
the quality and quantity of materials used for the
core and windings. SolaHD will be using:
• Higher-grade electrical core steels
• Larger core cross-sections
• Higher-quality aluminum or copper windings
• Increased winding material
Transformers will essentially look and feel the
same, but they are new product versions with
new SKUs.
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11. HOW DO THESE CHANGES AFFECT OUR CUSTOMERS?
The new government regulation will result in an increase in
price for customers on the affected transformers.
Despite the higher initial cost, customers can benefit by
choosing our new models:
• Help to significantly reduce greenhouse gas emissions and
reduce the need for new power infrastructure
– Reduced carbon dioxide emissions
– Decreased number of power plants
– Less heat generated, often resulting in lower costs
to cool the facility
• May qualify for incentives or rebate structures that become
available
• Return on investment due to increased energy efficiency
• SolaHD transformers are made in the U.S. and are
available in custom configurations
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12. IMPACT OF DOE2016 ON SolaHD TRANSFORMERS
• Part numbers are changing
• General Distribution and Low Rise: ET Series will
become E Series
– i.e. ET2H45S becomes E2H45S
• K-Factor: 3HXXT Series will become KXXE Series
– i.e. 3H4T2H15S becomes K4E2H15S
• Hevi-Duty™ Enclosure sizes are
not changing from TP1 sizes for
a smooth transition for our
customers
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13. Visit SolaHD.com for more information all our products,
including our new, more efficient distribution transformers.
www.solahd.com
The complete DOE rule can be found at:
https://federalregister.gov/a/2013-08712
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