1. Issue 7: Continued Sales of Mercury Thermostats Based upon notification data submitted to IMERC, PSI estimates between 3.0-3.5 million mercury thermostats manufactured in the United States in 2001 (last reporting year) The three largest thermostat manufacturers (Honeywell, GE, White-Rodgers) reported using 28,441 pounds of mercury, corresponding to about 3.23 million thermostats Honeywell is market leader, with reported half of mechanical thermostat sales market share – recent court case indicates company sells between 1.5-2.5 million T 87 thermostats annually

2. Issue 7 (cont.) Other mercury thermostat manufacturers include: –Invensys reported use of 15,726 grams of mercury in 2001, corresponding to over 57,000 thermostats at 0.275 grams/unit –PGI Controls reported use of 210,300 grams of mercury in 2001, corresponding to about 52,575 thermostats –TPI Corporation reported use of 26,800 grams of mercury in 2001, corresponding to about 6,700 thermostats

3. Issue 7 (Cont.) Wide variety of non-mercury alternatives on the market Five states have enacted restrictions on new mercury thermostat sales EU will be considering this issue when Commission makes recommendation due February 2005

4. Issue 7 (cont.) Differing views on wisdom of continuing mercury thermostat sales Some manufacturers believe mercury thermostats continue to offer advantages over other products (i.e., energy use, familiarity, retrofit applications, visually impaired) PSI interviews with these manufacturers indicate preference for market resolution of new sales issue

5. Issue 7: Ideal World Mercury thermostat sales are phased-out soon because: –The market has declined to the point where manufacturers no longer have an interest in the product line; –New and existing non-mercury products minimize the role for mercury thermostats in the market; and/or –Government policies in the US and elsewhere restrict future sales

6. Issue 7 - Strategies Voluntary phase-out of new sales by manufacturers Voluntary termination of sales by retailers State/local legislation and/or building code revisions (new construction accounts for 50% of mechanical thermostat sales) Consumer education Model government procurement policy favoring non- mercury thermostats