WATER HEATERS SINCE 1920

THE ELECTRIC HEATER COMPANY45 SEYMOUR STREET / P.O. BOX 288

STRATFORD, CT 06615-0288 TEL: (203) 378-2659 FAX: (203) 378-3593

Hhttp://www.hubbellheaters.comH Commodity Classifications Standards Board (CCSB) April 29, 2011 1001 North Fairfax Street Suite 600 Alexandria, VA 22314-1798 ATTN: Joel L. Ringer, Chairman SUBJ: Reclassification of Water Heaters;

Current NMFC item 26520 Docket 2011-2, Subject 2

Dear Mr. Ringer, Please accept the following information for inclusion in the public docket file for CCSB Docket 2011-2 to amend the NMFC for reclassification of water heaters. The information contained herein is provided on behalf of Hubbell Electric Heater Co. and its wholly owned subsidiary Vaughn Thermal Corp. (formally known as Vaughn Manufacturing). Please see the contact information below for addition to the Party of Record List. Hubbell Electric Heater Co. ATTN: Transportation Manager PO Box 288 Stratford, CT 06615-0288 Vaughn Thermal Corp. ATTN: Transportation Manager PO Box 5431 Salisbury, MA 01952-5431 In review of CCSB Docket 2011-2 Subject 2, it is our contention that the Notice of Proposed Amendments to the National Motor Freight Classification (NMFC) resulting from Research Project 1108 contains analysis that does not accurately reflect the facts for product category, NMFC item 26520. The analysis in the docket results in a significant misrepresentation of the general product and leads to invalid conclusions and a proposed freight reclassification that is unfair and harmful to the water heater industry. It is respectfully requested that the CCSB address these issues in order to make a fair and accurate assessment of the freight class for this product category.

April 28, 2011 Mr. Joel L. Ringer Chairman Commodity Classification Standards Board 1001 North Fairfax St. Suite 600 Alexandria, VA 22314 Re: Reclassification of Water Heaters, current NMFC Item 26520–Docket 2011-2, Subject 2 Dear Mr. Ringer The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) is a national trade association representing manufacturers of air-conditioning, heating and commercial refrigeration equipment, associated controls and accessories. One of our product sections is the Water Heater Section which includes all the major manufacturers of residential and commercial gas, oil and electric water heaters, both tank and tankless types, in the U. S market. We have reviewed your March 17, 2011 letter regarding the reclassification of Water Heaters noted above. Based on discussions with our water heater manufacturers members who essentially comprise the entire residential storage water heater industry in the U.S. and also are major manufacturers of all types of water heaters sold in the U.S. we believe that the proposed classification changes in Docket 2001-2, Subject 2 are not appropriate and are based on limited data insufficient to validate these proposed changes. Two key parameters that are discussed in the docket are the density and the claims ratio. We note that information was received from only 4 respondents. While we recognize that the CCSB can only work with the information that is available to it, in this case the information is inadequate to properly characterize the current state of LTL water heater shipments. We have gathered the following data for 2010 LTL shipments from our major water heater manufacturer members. We agree generally with the range of densities shown in the docket. Our information indicates that there are no shipments below 2 pcf but, given the small number of observations, the percentages of .64% or .32% shown in the docket are close to insignificant. More significantly, based on shipments of over 200,000 tank-type units, the overall average density is about 9 pcf. This indicates that the interval shown as the second largest in the docket document is actually the largest. This density value is associated with a class 100. In the case of tankless models, our information shows an overall average density of about 12.6 pcf which is associated with a class 85.

The docket explains the adjustment of the classifications due to a range of claims ratios from 1.73% to almost 30%. The information we have obtained from our members indicates that all of them had a claims ratio in 2010 under 10%. Although this is more than the 1% considered normal for general commodities, the small amount of data that was analyzed for this docket does not support a conclusion that any increase in classification, let alone a 2 step jump, is warranted for water heaters. Additionally, the information we have obtained from our members specific to plastic tank and tankless water heaters indicates that their claims ratios are below the “normal” 1% noted above. For those types of water heaters, this data suggests that any classification adjustment because of handling, stowing or liability characteristics should be a lowering of the classification. We respectfully recommend that the Board not approve these proposed classification changes and retain the current classifications. Sincerely,

Frank A. Stanonik Chief Technical Advisor

From: William Mascaro Sent: Friday, April 29, 2011 8:42 AM To: 'Stanonik, Frank'; Joel Ringer Subject: RE: NMFC Item 26520 Docket 2011 2 Subject 2

Mr. Stanonik,

Thank you for the statement. We have added it to the Public Record for Subject 2 of Docket 2011-2 involving Water Heaters and made you a Party of Record to the proposal.

In your statement, you refer to over 200,000 shipments of tank-type units as the basis for your information, however no underlying data has been submitted. In order for the CCSB to have as accurate a basis as possible when considering this matter, would it be possible to provide me with the underlying data on which the figures in your statement are based. As is our policy, any information you provide will only be identified as “shipper.”

Regards,

William Mascaro Member Commodity Classification Standards Board 1001 North Fairfax Street, Suite 600 Alexandria, Virginia 22314 703-838-1834