teca2012 ppt doe- 071312-rev2

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© ABB Inc. 6/7/22 | Slide 1 DOE - effects of new proposal on distribution transformers ABB Jefferson City, MO 2012 TECA Engineering and Operations Conference July 19, 2012

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Page 1: Teca2012 ppt   doe- 071312-rev2

© ABB Inc.April 10, 2023 | Slide 1

DOE - effects of new proposal on distribution transformersABB Jefferson City, MO

2012 TECA Engineering and Operations Conference July 19, 2012

Page 2: Teca2012 ppt   doe- 071312-rev2

© ABB Inc. April 10, 2023 | Slide 2

DOE distribution transformersABB Jefferson City

Speaker names: Pam Rost

Speaker title: Market Channel Manager

Company name: ABB Inc.

Location: Jefferson City, MO

Page 3: Teca2012 ppt   doe- 071312-rev2

© ABB Inc.April 10, 2023 | Slide 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 [email protected]

Page 4: Teca2012 ppt   doe- 071312-rev2

© ABB Group

April 10, 2023 | Slide 4

DOE distribution transformers

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

Outline

Page 5: Teca2012 ppt   doe- 071312-rev2

© ABB Group April 10, 2023 | Slide 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

Page 6: Teca2012 ppt   doe- 071312-rev2

© ABB Group April 10, 2023 | Slide 6

The 2010 National Efficiency Standards Lawsuit 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

Page 7: Teca2012 ppt   doe- 071312-rev2

© ABB Group

April 10, 2023 | Slide 7

Notice of Proposed Rule – February 2012

2011 2012 2013 2014 2015 2016

Compliance date January 1st 2016

Negotiated Rulemaking Subcommittee

NOPR February 2012

Final Rule October 1st 2012

Compliance Date January 1st 2016

NOPR comments period closed April 2012

Page 8: Teca2012 ppt   doe- 071312-rev2

© ABB Inc. April 10, 2023 | Slide 8

2010 2016

Notice of Proposed Rule – February 2012 Compliance date January 1st 2016

kVA Effi ciency (%) Effi ciency (%) Delta %10 98.62 98.7 0.0815 98.76 98.82 0.0625 98.91 98.95 0.04

37.5 99.01 99.05 0.0450 99.08 99.11 0.0375 99.17 99.19 0.02

100 99.23 99.25 0.02167 99.25 99.33 0.08250 99.32 99.39 0.07333 99.36 99.43 0.07500 99.42 99.49 0.07667 99.46 99.52 0.06833 99.49 99.55 0.06

Page 9: Teca2012 ppt   doe- 071312-rev2

10 15 25 37.5 50 75 100 167 250 333 500 667 83397.60

97.80

98.00

98.20

98.40

98.60

98.80

99.00

99.20

99.40

99.60

Min. TP-1DOE Proposed 2016

© ABB Inc. April 10, 2023 | Slide 9

Notice of Proposed Rule – February 2012 Single phase kVA - efficiency

Page 10: Teca2012 ppt   doe- 071312-rev2

© ABB Inc. April 10, 2023 | Slide 10

2010 2016

Notice of Proposed Rule – February 2012 Compliance date January 1st 2016

kVA Effi ciency (%) Effi ciency (%) Delta %15 98.36 98.65 0.2930 98.62 98.83 0.2145 98.76 98.92 0.1675 98.91 99.03 0.12

112.5 99.01 99.11 0.1150 99.08 99.16 0.08225 99.17 99.23 0.06300 99.23 99.27 0.04500 99.25 99.35 0.1750 99.32 99.40 0.081000 99.36 99.43 0.071500 99.42 99.48 0.062000 99.46 99.51 0.052500 99.49 99.53 0.04

Page 11: Teca2012 ppt   doe- 071312-rev2

15 30 45 7511

2.5

150

225

300

500

75010

0015

0020

0025

0097.6097.8098.0098.2098.4098.6098.8099.0099.2099.4099.60

Min. TP-1DOE Proposed 2016

© ABB Inc. April 10, 2023 | Slide 11

Notice of Proposed Rule – February 2012 Three phase kVA - efficiency

Page 12: Teca2012 ppt   doe- 071312-rev2

© ABB Group

April 10, 2023 | Slide 12

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

Notice of Proposed Rule – February 2012 Incremental savings

Page 13: Teca2012 ppt   doe- 071312-rev2

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%

Impact to manufacturersPercent of designs meeting proposed ruling

Page 14: Teca2012 ppt   doe- 071312-rev2

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

Impact to manufacturersVoiced concerns

Page 15: Teca2012 ppt   doe- 071312-rev2

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

Impact to manufacturer2016 proposed efficiency

Page 16: Teca2012 ppt   doe- 071312-rev2

Strong views by all

Against

Not enough

Acceptable

© ABB Inc.April 10, 2023 | Slide 16

Impact to customers and end users

Page 17: Teca2012 ppt   doe- 071312-rev2

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. April 10, 2023 | Slide 17

Impact to customers and end usersConcerns

Page 18: Teca2012 ppt   doe- 071312-rev2

Impact to customers and end usersPrice impact

M3 Electrical core steel can be used for complete range

1P (kVA) DOE DOE Proposed 201610-75 1.00 1.07

100-167 1.00 1.10250-333 1.00 1.10

3P (kVA) DOE DOE Proposed 201675-500 1.00 1.10

750-1500 1.00 1.122000-2500 1.00 1.20

Page 19: Teca2012 ppt   doe- 071312-rev2

© ABB Group April 10, 2023 | Slide 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

Page 20: Teca2012 ppt   doe- 071312-rev2

© ABB Inc. April 10, 2023 | Slide 20

kVA NL (w) LL (w) NL (w) LL (w)45 158 510 137 44175 173 1013 199 683

112.5 302 1083 241 1105150 279 1782 259 1611225 347 2519 404 1927300 451 3019 495 2567500 723 4886 704 3970750 915 6755 966 53981000 1189 8541 1138 72741500 1863 10495 1599 96672000 1835 15267 1866 128772500 2735 15290 2261 15309

Transformer ownership costA & B factors are still needed

Core loss or winding loss may not be lower

2010 2016

A & B factors still drive best design for individual customers

Page 21: Teca2012 ppt   doe- 071312-rev2

© ABB Group April 10, 2023 | Slide 21

© ABB Group April 10, 2023 | Slide 21

Transformer ownership costWeb tools (www.abb.com/transformers)

Page 22: Teca2012 ppt   doe- 071312-rev2

© ABB Group

April 10, 2023 | Slide 22

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

Summary

Page 23: Teca2012 ppt   doe- 071312-rev2

© ABB Group April 10, 2023 | Slide 23