An Overview Of Life-Cycle Cost Analysis Page 12
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21Price escalations
• Energy, water and sewer prices can fluctuate much
differently than general inflation
– Energy:
1) utility forecast
2) annually-revised rates from NIST/EIA for Federal projects
– Water/sewer: much more difficult to come by
1) utility forecast
2) historical data for utility (forthcoming PNNL report)
3) water/sewerage CPI component from BLS (4.71%/yr, 1996-2016)
4) CPI (2.15%/year, 1996-2016, likely to be conservative)
• Equipment
– For mature technologies, prices often assumed to move in
sync with general inflation (e.g. no real price escalation)
12
Energy Exchange: Connect • Collaborate • Conserve
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