1

Proposed Deemed Savings Values for Residential Refrigerator Recycling

Programs

June 7, 2005

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Program Summary

• Program Energy Goal – Early retirement of existing inefficient refrigerators

• Secondary “Non-Energy” goals– Removal of “second” refrigerators from stock– Recycling of refrigerants, metals and other materials

(PCBs)

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There’s Lot’s of PotentialSales Weighted Average Residential Refrigerator Energy Use

0200400600800

100012001400160018002000

1970 1975 1980 1985 1990 1995 2000 2005

Year Manufactured

An

nu

al U

se (

kW

h)

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Energy Savings Issues

• Removal of units that were already going to be “decommissioned”

• Removal of non-functioning units• Removal of units that were only used “part-

time”• Replacement of “decommissioned” units with

other “used” units• Interaction with space conditioning

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Prior Program Experience:Net Savings and Remaining Life

• Net savings after adjustments for “free-ridership,” replacements, partial use, etc => – California

• 2002 Evaluation- 53% - 57% • 2003 Evaluation- 35%

– Colorado• 61%

– Snoh PUD Pilot • 62% of gross savings

• Remaining Equipment Life – 6 to 8 yrs

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Prior Program Experience – Gross Savings

• California– 1996 = 2130 kWh/yr– 2002 = 1915 kWh/yr– 2003 = 2128 kWh/yr

• Snoh PUD – 1324 kWh/yr

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Proposed Inputs to Deemed Savings Analysis

• Average Unit Age = 24 yrs (base year = 2001)

• Average Unit Consumption = 1453 kWh/yr

• Remaining Unit Life = 6 years

• Average Cost for Recycling = $140

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Net-to-Gross Adjustment

• Net-to-Gross Adjustments• Unit would have been kept but not used - 6%• Unit would have been retired w/o program – 7%• Unit was only used Part-Time – 10%• Unit will be replaced w/another used unit – 11%• Space Conditioning Interaction

– Inside conditioned space – 14%– Outside conditioned space – 0%

• Overall Adjustment – Units not replace – 70% (40% of units)– Units replaced New Energy Star – 68% (60% of units)

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Proposed Deemed Value Input Assumptions

• Gross Savings – 1453 kWh/yr• Net-to-Gross – 69% • Net Site Savings (All units) – 829 kWh/yr• Remaining Measure Life – 6 years• Average Unit Cost (Including utility administrative

cost) - $140/unit• Units Replaced – 60% • Units not Replaced – 40%

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Levelized Cost for Replacements by Vintage

0

20

40

60

80

100

120

140

Lev

eliz

ed C

ost

of R

ecyc

ling

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Refrigerator Age

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Levelized Cost for Replacements by Vintage

0.00.20.40.60.81.01.21.41.61.8

TR

C B

/C R

atio

of

Rec

yclin

g

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Refrigerator Age

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Proposed Deemed Values

• Net Site Savings (All units) – 829 kWh/yr• Levelized Cost – 3.1 cents/kWh• B/C ratio (TRC) – 1.3• C&RD credit - $110.81*

*80% of bulk system value, PV to Utility System is $278 of which $140 is local distribution system value