Page 80 - McWane Poles Sales Manual 2024

80
McWane Poles, A Division of McWane Inc.
Life-Cycle Cost Analysis
This is the basic life-cycle cost analysis for a DI pole compared to a wood pole. If a DI
pole lasts only twice as long as this wood pole (60 years in this case), using a DI pole
would still save the utility money in this application.
•
Many applications are going to cost much more than $2,000 to change out, and in
many applications wood poles are not going to last 30 years.
•
What are your highest cost applications to change out? Does it make sense to install a
ductile iron poles there?
•
Relative to the slide above, cooperatives will have a lower discount rate (borrowing
rate), making DI look better. IOUs will have a higher discount rate, making DI look less
advantageous.
Instructions
Utility Type IOU Pick utility type from drop down
Wood Pole Cost 1,600 Enter wood pole cost
Ductile Iron Cost 2,400 Enter DI pole cost
Copper/Labor Savings for DI 100 Estimate material and labor savings for DI
Expected Life of Wood Pole 30 Estimate expected wood pole life
Cost to Change out Wood Pole 4,000 Estimate today’s labor and equipment cost
to replace pole
Inflation 0.02
Discount Rate 0.08
Installation Savings for DI 100
Initial Pole Cost Ductile Iron (2,400)
Initial Pole Cost Wood 1,600
Present Value of Wood 975
Pole Change Out
Savings/Cost for Ductile Iron 275
DUCTILE IRON POLES