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2012 TECA Engineering and Operations Conference July 19, 2012    DOE - effects of new proposal on    distribution transfor...
DOE distribution transformersABB Jefferson City                             Speaker names:   Pam Rost                    ...
Contact information                          If you have further questions , please contact me at:                        ...
DOE distribution transformersOutline                                2010 National Efficiency Standards                   ...
The 2010 National Efficiency StandardsHistorical timeline                             2007 Final Rule Distribution Txfmrs...
The 2010 National Efficiency StandardsLawsuit settlement                             Petitioners - Sierra Club, Natural R...
Notice of Proposed Rule – February 2012Compliance date January 1st 2016                             2011   2012   2013   2...
Notice of Proposed Rule – February 2012Compliance date January 1st 2016                          kVA    Efficiency (%)   E...
Notice of Proposed Rule – February 2012Single phase kVA - efficiency                          99.60                       ...
Notice of Proposed Rule – February 2012Compliance date January 1st 2016                           kVA     Efficiency (%)  ...
Notice of Proposed Rule – February 2012Three phase kVA - efficiency                           99.60                       ...
Notice of Proposed Rule – February 2012Incremental savings                                 Energy Savings                ...
Impact to manufacturersPercent of designs meeting proposed ruling          Percentage of 2007 designs that met 2010      ...
Impact to manufacturersVoiced concerns          Core steel availability of high performance           steel to meet the d...
Impact to manufacturer2016 proposed efficiency          Increase in conductor cross section          Weights and dimensi...
Impact to customers and end users                              Strong views by all                                    Agai...
Impact to customers and end usersConcerns                              Substituting amorphous steel for RGO              ...
Impact to customers and end usersPrice impact           1P (kVA)            DOE         DOE Proposed 2016            10-75...
Transformer ownership costCost capitalization formula                              TOC or Capitalized Cost = Price + Cost...
Transformer ownership costA & B factors are still needed                            kVA          NL (w)    LL (w)         ...
Transformer ownership costWeb tools (www.abb.com/transformers)© ABB Group© ABB GroupJuly 26, 2012 Slide 21July26, 2012 |...
Summary                                 Publication of final rule - October 2012                                 Increas...
© ABB GroupJuly 26, 2012 | Slide 23
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Teca2012 ppt doe- 071312-rev2

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Teca2012 ppt doe- 071312-rev2

  1. 1. 2012 TECA Engineering and Operations Conference July 19, 2012 DOE - effects of new proposal on distribution transformers ABB Jefferson City, MO© ABB Inc.July 26, 2012 | Slide 1
  2. 2. DOE distribution transformersABB Jefferson City  Speaker names: Pam Rost  Speaker title: Market Channel Manager  Company name: ABB Inc.  Location: Jefferson City, MO© ABB Inc.July 26, 2012 | Slide 2
  3. 3. Contact information If you have further questions , please contact me at: PRESENTERS Pam Rost COMPANY ABB Inc. CONTACT PHONE (573) 659-6302 CONTACT E-MAIL pamela.j.rost@us.abb.com© ABB Inc.July 26, 2012 | Slide 3
  4. 4. DOE distribution transformersOutline  2010 National Efficiency Standards  DOE 2012 Notice of Proposed Rule making February 1st  Impact to manufacturers, customers and end users  Total cost of ownership  Summary© ABB GroupJuly 26, 2012 | Slide 4
  5. 5. The 2010 National Efficiency StandardsHistorical timeline  2007 Final Rule Distribution Txfmrs (72 CFR 58190)  Domestic and Imported production of Liquid & Dry Distribution Transformers  Manufactured in or imported into the United States and its territories on or after Jan 1, 2010  60 Hz, < 34.5 kV Input & < 600 V Output  Ratings 1Φ - 10 to 833 & 3Φ - 15 to 2500 kVA  Re-builders exempt unless found circumventing standard  Inventories manufactured before start date exempt© ABB GroupJuly 26, 2012 | Slide 5
  6. 6. The 2010 National Efficiency StandardsLawsuit settlement  Petitioners - Sierra Club, Natural Resource Defense Council, Earthjustice & various states  Petition to consider certain factors when considering economic justification:  Employment impact  Value of reduced carbon dioxide emissions  Impacts on the price of energy  Settlement to dismiss petition contingent on… 1. Expedited timeline to determine whether to amend standards for Distribution Transformers 2. If amendment justified, DOE shall publish no later than Oct 1, 2012 a final rule. 3. Industry compliance no later than Jan 1, 2016© ABB GroupJuly 26, 2012 | Slide 6
  7. 7. Notice of Proposed Rule – February 2012Compliance date January 1st 2016 2011 2012 2013 2014 2015 2016© ABB GroupJuly 26, 2012 | Slide 7
  8. 8. Notice of Proposed Rule – February 2012Compliance date January 1st 2016 kVA Efficiency (%) Efficiency (%) Delta % 10 98.62 98.7 0.08 15 98.76 98.82 0.06 25 98.91 98.95 0.04 37.5 99.01 99.05 0.04 50 99.08 99.11 0.03 75 99.17 99.19 0.02 100 99.23 99.25 0.02 167 99.25 99.33 0.08 250 99.32 99.39 0.07 333 99.36 99.43 0.07 500 99.42 99.49 0.07 667 99.46 99.52 0.06 833 99.49 99.55 0.06© ABB Inc.July 26, 2012 | Slide 8
  9. 9. Notice of Proposed Rule – February 2012Single phase kVA - efficiency 99.60 99.40 99.20 99.00 98.80 98.60 98.40 98.20 98.00 97.80 97.60 Min. TP-1 DOE Proposed 2016© ABB Inc.July 26, 2012 | Slide 9
  10. 10. Notice of Proposed Rule – February 2012Compliance date January 1st 2016 kVA Efficiency (%) Efficiency (%) Delta % 15 98.36 98.65 0.29 30 98.62 98.83 0.21 45 98.76 98.92 0.16 75 98.91 99.03 0.12 112.5 99.01 99.11 0.1 150 99.08 99.16 0.08 225 99.17 99.23 0.06 300 99.23 99.27 0.04 500 99.25 99.35 0.1 750 99.32 99.40 0.08 1000 99.36 99.43 0.07 1500 99.42 99.48 0.06 2000 99.46 99.51 0.05 2500 99.49 99.53 0.04© ABB Inc.July 26, 2012 | Slide 10
  11. 11. Notice of Proposed Rule – February 2012Three phase kVA - efficiency 99.60 99.40 99.20 99.00 98.80 98.60 98.40 98.20 98.00 97.80 97.60 150 225 300 500 750 112.5 15 30 45 75 1000 1500 2000 2500 Min. TP-1 DOE Proposed 2016© ABB Inc.July 26, 2012 | Slide 11
  12. 12. Notice of Proposed Rule – February 2012Incremental savings  Energy Savings  1.58 quads over 30 years (2016-2045)  Eliminate the need for 2.4 GW of generating capacity by 2045  Cost Savings  Cumulative Net Present Value ranges from 2.9 billion (7% discount rate) to 12.1 billion (3% discount rate)  Environment Benefits:  CO2 emission reduction 122.1 mt  NOx emission reduction of 98.7 kt  Hg emission reduction of .819 ton© ABB GroupJuly 26, 2012 | Slide 12
  13. 13. Impact to manufacturersPercent of designs meeting proposed ruling  Percentage of 2007 designs that met 2010  1Φ - 47%  S3Φ < 750 kVA - 53%  L3Φ > 750 kVA – 59%  Percentage of 2011 designs that met the proposed 2016  1Φ - 44%  S3Φ < 750 kVA - 27%  L3Φ > 750 kVA – 7%
  14. 14. Impact to manufacturersVoiced concerns  Core steel availability of high performance steel to meet the demand  Potential capital and R&D investment if amorphous metal is required  May be forced to sole-source their core steel should amorphous metal be required  May be required to strand assets if new manufacturing processes are required  Refurbished transformers may be more attractive
  15. 15. Impact to manufacturer2016 proposed efficiency  Increase in conductor cross section  Weights and dimensions increase  Transportation cost increase as less units per truck load  Average oil volume per unit increases due to wider & deeper tanks not being offset by reduction in tank height
  16. 16. Impact to customers and end users Strong views by all Against Not Acceptable enough© ABB Inc.July 26, 2012 | Slide 16
  17. 17. Impact to customers and end usersConcerns  Substituting amorphous steel for RGO  Higher costs  Only one supplier  Size and weight increases  Polemounts  Vault and networks  Cost and payback  Understated cost  Overstated savings  Driving away from successful A & B method© ABB Inc.July 26, 2012 | Slide 17
  18. 18. Impact to customers and end usersPrice impact 1P (kVA) DOE DOE Proposed 2016 10-75 1.00 1.07 100-167 1.00 1.10 250-333 1.00 1.10 3P (kVA) DOE DOE Proposed 2016 75-500 1.00 1.10 750-1500 1.00 1.12 2000-2500 1.00 1.20 M3 Electrical core steel can be used for complete range
  19. 19. Transformer ownership costCost capitalization formula  TOC or Capitalized Cost = Price + Cost of Losses  Price ($) = purchase price  Cost of Losses = (A x NLL) + (B x LL)  A ($/W) = Capitalized Cost of No-Load Losses  B ($/W) = Capitalized Cost of Load Losses  NLL (W) = No Load Losses  LL (W) = Load Losses  A & B Factors are unique to each purchaser of transformer even to their respective industry© ABB GroupJuly 26, 2012 | Slide 19
  20. 20. Transformer ownership costA & B factors are still needed kVA NL (w) LL (w) NL (w) LL (w) 45 158 510 137 441 75 173 1013 199 683 112.5 302 1083 241 1105 150 279 1782 259 1611 225 347 2519 404 1927 300 451 3019 495 2567 500 723 4886 704 3970 750 915 6755 966 5398 1000 1189 8541 1138 7274 1500 1863 10495 1599 9667 2000 1835 15267 1866 12877 2500 2735 15290 2261 15309 Core loss or winding loss may not be lower A & B factors still drive best design for individual customers© ABB Inc.July 26, 2012 | Slide 20
  21. 21. Transformer ownership costWeb tools (www.abb.com/transformers)© ABB Group© ABB GroupJuly 26, 2012 Slide 21July26, 2012 | |Slide 21
  22. 22. Summary  Publication of final rule - October 2012  Increases in efficiency expected for effective date of 2016  Ask questions specific to your transformers, changes in costs, weights, dimensions  Review your A & B factors for the real cost of operating transformers  ABB website tools at www.abb.com/transformers© ABB GroupJuly 26, 2012 | Slide 22
  23. 23. © ABB GroupJuly 26, 2012 | Slide 23

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