SPC Early Retirement Guidelines

Guidelines

  1. For qualifying equipment, the energy savings are calculated using the minimum energy efficiency standards of the time when it was installed, not the current standards.
  2. The energy savings will be based on number of years of useful life remaining on the equipment. If a motor has 7 years of useful life, the incentive would be based on seven times the annual savings, up to 50 percent of the cost of the motor and installation. The useful life is determined from published life for equipment that is normally replaced. For equipment that usually undergoes significant maintenance to extend the normal life, the useful life will be based on how many years the equipment is to be operated before if is rebuilt.
  3. Overhaul/Rebuild Requirements

    To qualify as overhauled, a significant amount of work must have been performed (major overhaul). All of the components must be brought back to their original condition. The life of the existing equipment must have been significantly extended from this effort. For example, a major overhaul would include the replacement or rebuilding of all of the compressors and motors of the packaged unit as well as restoring the evaporator and condenser coil to their original condition. As part of the inspection, the equipment will be examined to determine if the calculated remaining life is reasonable. Should the equipment not meet the expected useful life, the measure will be rejected. The utility administer has the final decision on whether a piece of equipment qualifies as refurbished. To establish the overhaul and its date, supporting invoices are required.
  4. Impact of Upstream Program

    For equipment included in the Upstream Incentive Program (motors with horse power rating up to 200 HP and package units and heat pumps with capacities up to 760,000 Btu/hr or 63.3 tons) the energy savings will be based on the original efficiency and the current minimum standard. The energy savings resulting from the current minimum to the proposed efficiency will be assumed to be claimed by the upstream program. The following figure shows the division of the savings and incentives between the Upstream and SPC programs.
  5. Eligibility Dates

    Below is a summary of the dates that qualify for Early Retirement.
EquipmentUseful LifeYear Built or Later**Overhauled Useful LifeOverhauled Since
Motor181991131996
Packaged Units*151994111998
Chillers-reciprocating201989151994
Chillers-centrifugal231986171992
Wet Cleaning131996n/an/a

*Useful life from ASHRAE
**For equipment not overhauled or rewound

Motors

Larger motors can be rewound and rebuilt numerous times, which extends the useful life. The useful life of a motor is considered to be 18 years (ASHRAE). The life of a rewound motor is typically considered to be 75 percent of a new motor, or 13 years. The following questions will be used to determine the remaining useful life of a motor:

  1. What year was this motor manufactured? ______
  2. Has this motor been rewound? _____, if yes, what year was it last rewound? _____

The remaining useful life is calculated from the answers to the above questions using the following equations:

Age of equipment = 2004 Year Manufactured (Question 1)

Useful Life Remaining (1) = 18 Age of Equipment, if less that 0, then equals 0

If Question 2 equals No, the Useful Life Remaining = Useful Life Remaining (1)

If Question 2 equals yes, then Useful Life Remaining = 13 [2004 Year Last Rewound], if less that 0, then equals 0

If Useful life is > or = to 5 years, then the unit qualifies for Early Retirement

If Useful life is < 5 years, then the unit does not qualify for Early Retirement

The baseline efficiencies are based on NEMA standards for two time periods. The first are the standards that were in use during the early 1980s. These efficiencies will be used as the baseline for motors manufactured before 1985. The second set of efficiencies will be used for motors manufactured from 1985 through 2000. See Table 1.

Table 1 — Motor Efficiencies

Horsepower RangeEfficiency Before 1985Efficiency Percent 1985-2000Efficiency Percent 2004 Min Standard
176.076.682.5
1.578.078.584.0
280.080.984.0
381.081.986.5
584.084.187.5
7.584.085.388.5
1085.086.589.5
1585.588.091.0
2086.089.091.0
2587.089.891.7
3088.090.392.4
4088.090.793.0
5089.091.493.0
6089.091.893.6
7590.092.394.1
10091.092.694.1
12591.092.894.5
15092.093.095.0
20092.093.695.0
30093.094.595.4
>30094.095.095.8

Air Conditioners &#8212 Small to Medium Packaged Units

Small to Medium packaged or split air conditioner and heat pumps are estimated to have an average life of 15 years. At the end of their life these types of units are generally replaced, as it has been found normally uneconomical to repair or overhaul. For those that qualify, an overhauled unit has a useful life of 11 years. The following questions will be used to determine the useful life:

  1. What year was this unit manufactured? ______
  2. Has this unit ever been overhauled or rebuilt? _____, if yes, what year was it last overhauled or rebuilt? _____

The remaining useful life is calculated from the answer to the above question using the following equations:

Age of equipment = 2004 Year Manufactured (Question 1)

Useful Life Remaining (1) = Std Useful Life Age of Equipment, if less that 0, then equals 0

If Question 2 equals No, the Useful Life Remaining = Useful Life Remaining (1)

If Question 2 equals yes, then Useful Life Remaining = Overhaul Useful Life [2004 Year Last Rebuilt], if less that 0, then equals 0

If Useful life is > or = to 5 years, then the unit qualifies for Early Retirement

If Useful life is < 5 years, then the unit does not qualify for Early Retirement

The baseline efficiencies are based on earlier versions of Title 24 Standards. These include 1977, 1986, 1988, 1992, 1995, 1999 and 2001. The baseline efficiency will be the minimum Title 24 value at the time the equipment was manufactured.

Air Conditioners &#8212 Chillers

Chillers can be overhauled or rebuilt, which extends the useful life. For reciprocating chillers, this is 20 years and for centrifugal chillers it is 23 years (ASHRAE). The software assumes that a rebuilt chiller or packaged unit will have a life of 75 percent of a new unit.

Type of UnitSTD Useful LifeOverhauled Useful Life
Reciprocating Chiller20 years15 years
Centrifugal Chiller23 years17 years

The following questions will be used to determine the useful life:

  1. What year was this equipment manufactured? ______
  2. Has this unit ever been overhauled or rebuilt? _____, if yes, what year was it last overhauled or rebuilt? _____

The remaining useful will be determined useful life is calculated for the answers to the above questions using the following equations:

Age of equipment = 2004 Year Manufactured (Question 1)

Useful Life Remaining (1) = Std Useful Life Age of Equipment, if less that 0, then equals 0

If Question 2 equals No, the Useful Life Remaining = Useful Life Remaining (1)

If Question 2 equals yes, then Useful Life Remaining = Overhaul Useful Life [2004 Year Last Rebuilt], if less that 0, then equals 0

If Useful life is > or = to 5 years, then the unit qualifies for Early Retirement

If Useful life is < 5 years, then the unit does not qualify for Early Retirement

The baseline efficiencies are based on earlier versions of Title 24 Standards. These include 1977, 1986, 1988, 1992, 1995, 1999 and 2001. The baseline efficiency will be the minimum Title 24 value at the time the equipment was manufactured.

Professional Wet Cleaners

This estimation tool is based on information provided by a SCE applications engineer who is conducting an evaluation of Professional Wet Cleaning applications. These units are generally replaced after their useful life. The estimated life for dry cleaning units ranges between 10 and 15 years. A value of 13 years will be used in this model. The following question will be used to determine the remaining useful life:

  1. What year was this equipment manufactured? ______

The remaining useful life is calculated from the answer to the above question using the following equations:

Age of equipment = 2004 Year Manufactured (Question 1)

Useful Life Remaining (1) = 13 Age of Equipment, if less that 0, then equals 0

If Useful life is > or = to 5 years, then the unit qualifies for Early Retirement

If Useful life is < 5 years, then the unit does not qualify for Early Retirement

The baseline efficiencies are based on measured data collected by Southern California Edison and the South Coast Air Management District. This measure involves replacing the old dry cleaning equipment with a different type of equipment, Professional Wet Cleaning equipment. The new equipment is more energy efficient. The efficiency of the new equipment is based on data provided by Southern California Edison and the South Coast Air Management District.

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