Professional Documents
Culture Documents
1
Department of Civil, Architectural and Environmental Engineering, the
University of Texas at Austin, 1 University Station C1752, Austin, TX 78712-0276;
email: gcmigliaccio@mail.utexas.edu
2
GTech Engineers, BA-2C Ashok Vihar Ph:I, Delhi - 110052, India; email:
sgoel@alumni.utexas.net
3
Department of Civil, Architectural and Environmental Engineering, the
University of Texas at Austin, 1 University Station C1752, Austin, TX 78712-0276;
email: jtoconnor@mail.utexas.edu
Abstract
utility costs for the lodging industry between 2003 and 2004 (PKF 2004). Since
electricity costs represents 60% of the utility costs, these increases represent a
growing concern to the industry and have spurred efforts to reduce energy
consumption in new facilities. For instance, a well known economy lodging chain
has changed the layout of its prototype facility from an exterior-door to an interior-
corridor layout, basing its decision on life-cycle evaluations:
The traditional motel, with its exterior doors, … has drawbacks …
during entry and exit, the guestroom is ‘open to the world’ and heat
and cool escapes to the atmosphere … this consumes a lot of energy
… Clearly, an interior-corridor design is a more efficient user of
energy … does not expose every door to the weather, or place as much
emphasis on proper door sealing. Interior hallways do not have to be
cleared of snow, or their railings checked for security or constantly
repainted to hide rust (ACCOR 1997).
This example illustrates the industry’s desire to control operational expenses
over the long run. While this and similar efforts focus on changes to the building
layout based upon qualitative evaluations, little attention has been paid to the
selection of building components by evaluating their life-cycle economic
performance. Were they to shift their focus, lodging operators could gain useful
insight by performing life cycle cost analyses (LCCA) for selecting optimal building
components for their prototype facilities. LCCA is a procedure for evaluating the
economic worth of alternative buildings, building systems, or components by
discounting future costs over the life of the facility. Many researchers have explored
ways of combining life-cycle costing methods with energy simulations to aid in the
selection of efficient design components (Schaufelberger and Jacobson, 2000; Sekhar
and Cher Toon, 1998). However, few studies have considered the effect of
uncertainty in the decision process for selecting building components (Macdonald et
al. 1999). Because of the resulting lack of confidence on simulation-based
judgments, lodging owners often entrust the experience-based judgment of designers
or contractors. Such experience-based decisions can mislead the decision-makers
because of the uncertainty of several design parameters and environmental factors
(e.g. energy prices, technology offerings, etc.).
A common barrier to the adoption of LCCA is its time intensive nature
because most of the required data are not readily available. In addition, LCCA is
generally a costly procedure for a single facility and is rarely carried out except for
federal facilities for which U.S. federal guidelines require decisions to be made upon
life-cycle costing evaluations (Fuller and Petersen 1996). Nevertheless, the cost of
performing LCCA becomes more economically tolerable in the case of economy
$30–$44.99
Under $30 60%
No. of Facilities
40%
20%
0%
2000 2001 2002 2003 2004
Over $85 4,815 7,312 8,263 7,855 8,853
$60–$85 8,667 11,563 13,666 14,334 14,950
$45–$59.99 18,244 13,722 16,129 16,680 16,431
$30–$44.99 14,392 7,101 8,040 7,862 8,088
Under $30 7383 1,695 942 853 866
Year
Figure 1 - Lodging Facilities by Average Room Rate (derived from AHLA, 2001-2005)
No. of Properties
40%
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20%
0%
2000 2001 2002 2003 2004
Resort 3,371 2,425 2,309 2,149 4,055
Airport 4,120 3,401 3,305 3,239 1,914
Urban 5,457 4,453 5,502 5,408 4,648
Small Metro/Town 14,523
Highway 22,577 17,454 17,006 18,312 6,666
Suburban 17976 13,660 18918 18476 15792
Year
can integrate economic metrics (i.e., LCC) with other metrics (i.e., environmental
metrics) (Lippiatt 1999; Migliaccio et al. 2005).
During the process, there is the opportunity to select both uncertain design
parameters (e.g., building location) and uncertain environmental factors (e.g., energy
price) that can affect the decision-making problem. The former parameters can be
selected for performing a sensitivity analysis on the problem outcome, whereas the
effect of changes in the latter factors is investigated through a contingency analysis.
Underlying Assumptions
The proposed methodology relies on the underlying assumption that non-
energy related building performances will not be negatively affected by the selected
building component. Considering only the energy-related dimension simplifies the
design/retrofit decision but does not consider consequences of the decision in terms of
material durability and occupant health. For instance, even though economically
optimal, the selection of a window system with lower air leakage can produce many
undesired results, such as lack of indoor environment ventilation and mold growth.
Therefore, in addition to energy savings considerations, expected effects on these
building performance dimensions should be carefully evaluated in pre-selecting from
the available options.
Case Study
Decision-making Problem:
The case study analyzes the decision-making problem of selecting a window
system from among a set of available products. For the purposes of this paper, the
selection is based on the minimal LCC. The study is based on a project service life
cycle of 20 years. The LCC value includes window system procurement costs,
energy-related operational costs, and window system replacement costs (in case a
system does not provide the expected period of service). The study did not consider
the effect of other costs (other operational costs, installation costs, maintenance costs)
on the resulting LCC. The authors believe that installation and maintenance costs can
be equal throughout the alternative systems, so their values would not affect the
ranking. In addition, the specific building layout (exterior doors) suggests minimally
varying maintenance costs because of the accessibility of the window independent of
the adopted frame (fixed versus operable). Finally, the energy consumption for each
window system is estimated based on factors affecting the consumption for
heating/cooling but not for lighting the built environment. Therefore, the problem
considers energy loads by conduction and convection (through the U-value) and by
Tools
A survey of available tools was conducted. As a result, the authors selected
the components of the model in order to facilitate the flexibility of the application and
to minimize problems in data interoperability. RESFEN, a software program
developed by Lawrence Berkeley, was selected as the energy simulation processor for
estimating the amount of energy consumption due to the window system. Although
the software is designed for residential buildings, the estimation process computes the
energy consumption due to the window system as relative to a standard insulated
windowless wall. It also breaks down energy consumption by directional orientation
and by season (LBNL 1999).
The determination of the LCC needs to refer to widely recognized standards.
Therefore, the authors initially selected the Building Life-Cycle Cost (BLCC)
Program that adheres to the National Institute of Standards and Technology (NIST)
LCC procedures (Fuller and Petersen 1995). However, this software package allows
limited data interoperability, making the entire process subject to repetitive manual
operations. Therefore, a spreadsheet version of BLCC procedures was selected
(Addison 1999). Using a spreadsheet allowed for the integration of part of the
uncertainty analyses in the LCC by the use of a Microsoft Excel add-in developed by
researchers of the Dartmouth College for NIST (Baker et al. 2003). Unfortunately,
the used energy simulation software did not allow parametric analyses, so the
the average electricity price (DOE 2005). Under a retrofit scenario, the baseline
window system should be substituted by a more efficient window system. The LCC
for the six window systems with lowest values are included in Figure 5. According to
the results, window system # 3 is the one that offers the lowest LCC in every location.
This outcome is not surprising, considering the optimal mix of price and performance
offered by this system. However, the ranking of alternatives changes under the
evolving scenarios considered in the contingency analyses for every location (Figures
6, 7, 8, 9, and 10). In every geographic location, system # 3 keeps its attractiveness at
the lowest levels of energy price, but the ranking of alternatives changes as the energy
price goes up. Obviously, better performing but more expensive systems take the
lead in high-energy costs situations.
Two patterns are clearly represented by the results. Window system # 4
presents the lowest LCC for locations with a predominance of the cooling season (i.e.,
TX and AZ) under high-price scenarios thanks to its lower SHGC value. On the other
hand, window system # 18 offers the best value in locations with a predominance of
the heating season (i.e., NY, IL and TN) under the same high-energy price scenarios
thanks to its lower U-value.
Table 2 - RESFEN 3.1 New Construction Insulation Values (Council of American Building
Officials, 1993)
State City MEC Zone Pkg # Glz % Ceiling U- Wall Floor R- Basement Slab Crawler
Value R-Value Value R-Value R-Value R-Value
AZ Phoenix 3 3 15 30 11 11 - 0 -
IL Chicago 14 3 15 38 19 30 14 - -
NY Buffalo 14 3 15 38 19 30 14 - -
TN Nashville 8 3 15 38 19 19 - 2 -
TX San Antonio 4 2 15 26 11 11 - 0 -
10
TX
TN
18
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17
Locations
13
NY
4
3
IL 1
AZ
AZ-Phoenix
$4,500
$4,300
$4,100
$3,900
1
Life-Cycle Cost
$3,700 2
3
$3,500
4
$3,300 13
18
$3,100
$2,900
$2,700
$2,500
6 9 12 15 18 21 24 27 30
[cents/kWh]
Figure 6 – Phoenix, AZ: Contingency Analysis of Window Systems with Lowest LCC
11
$6,000
$5,500
$5,000
1
Life-Cycle Cost
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3
[$/4 units]
$4,500
4
13
$4,000
18
29
$3,500
$3,000
$2,500
6 9 12 15 18 21 24 27 30
[cents/kWh]
Figure 7 - Chicago, IL: Contingency Analysis of Window Systems with Lowest LCC
NY-Buffalo
$6,500
$6,000
$5,500
1
Life-Cycle Cost
$5,000
3
[$/4 units]
13
$4,500
17
18
$4,000
29
$3,500
$3,000
$2,500
6 9 12 15 18 21 24 27 30
[cents/kWh]
Figure 8 - Buffalo, NY: Contingency Analysis of Window Systems with Lowest LCC
12
$5,500
$5,000
$4,500
1
Life-Cycle Cost
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3
[$/4 units]
4
$4,000
13
17
$3,500 18
$3,000
$2,500
6 9 12 15 18 21 24 27 30
[cents/kWh]
Figure 9 - Nashville, TN: Contingency Analysis of Window Systems with Lowest LCC
TX-San Antonio
$4,300
$4,100
$3,900
$3,700
1
Life-Cycle Cost
2
[$/4 units]
$3,500
3
4
$3,300
13
$3,100 18
$2,900
$2,700
$2,500
6 9 12 15 18 21 24 27 30
[cents/kWh]
Figure 10 - San Antonio, TX: Contingency Analysis of Window Systems with Lowest LCC
13
References
ACCOR (1997). “The new Motel 6 Prototype,” ACCOR North America,
<http://www.accor-na.com/franchising_info/prototype.asp> (Oct 28, 2005).
Addison M. S. (1999). “User-friendly Life-Cycle Costing: The BLCC Procedure in
an Easy-to-Use Spreadsheet,” <http://www.doe2.com/Download/LCC/LCC-
Summary-Rev2004.pdf> (Oct 28, 2005).
American Hotel & Lodging Association [AHLA] (2005). 2005 Lodging Industry
Profile, <http://www.ahla.com/pdf/Lodging-Ind-Profile-2005.pdf> (Oct 20, 2005).
American Hotel & Lodging Association [AHLA] (2004). 2004 Lodging Industry
Profile, <http://www.ahla.com/pdf/Lodging-Ind-Profile-2004.pdf> (Oct 20, 2005).
American Hotel & Lodging Association [AHLA] (2003). 2003 Lodging Industry
Profile, <http://www.ahla.com/pdf/Lodging-Ind-Profile-2003.pdf> (Oct 20, 2005).
American Hotel & Lodging Association [AHLA] (2002). 2002 Lodging Industry
Profile, <http://www.ahla.com/products_info_center_lip_2002.asp> (Oct 20, 2005).
American Hotel & Lodging Association [AHLA] (2001). 2001 Lodging Industry
Profile, <http://www.ahla.com/pdf/2001.pdf> (Oct 20, 2005).
Baker, K.R., Powell, S. G. and Burnham B. (2003). “The Sensitivity Toolkit,” Tuck
School of Business at Dartmouth College, http://mba.tuck.dartmouth.edu/toolkit/
(Oct 20, 2005).
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