WHAT’S LOVE GOTTO DO WITH IT?

More reasons than ever tolove the HVAC/R business.

RefrigerationUtility Rebates

DOERegulations

Update

KARACelebrates19th AnnualNightball

R-22 Solutions:What’s next?

ABCOAward Night

TaxCredits

Are Back

We’re passionate about the HVAC/R business. That’s why ABCO’s here to remind you that there’s a lot to be excited about in 2013 – and we’re here to help you get the most out of the opportunities available right now. We’ve got the ultimate solutions for the R-22 phaseout, as well as new information on the return of 25c Federal Tax Credits, and the latest on local utility rebates and the Department of Energy Regional Efficiency Standards. What’s not to love? CONTINUE ON PAGE 4

FEBRUARY 2013

Historical

Mill

ion

Poun

ds

2013

120

100

80

60

40

20

0

2010

2011

2012

Down71 Million

Pounds

39 MillionPounds

In the absence of a nal rule allocating HCFC allowances for 2012-2014, on January 7, 2013, the EPA issued a “No Action Assurance” letter establishing the virgin R-22 production and import allowances for 2013. R-22 production and imports will be reduced an additional 16 million pounds compared to 2012. As a result of this accelerated phaseout, over 71 million pounds of virgin R-22 production/imports have been eliminated from the marketplace since 2010.

It is clear that the R-22 phaseout will continue at an accelerated pace. As a result, supply demand dynamics will likely continue to impact price volatility.

MO99™ allows for an easy conversion with no oil change required for most systems and the closest pressure enthalpy match to R-22 of any replacement product. Over the past 5

systems and applications.

For more information, talk to your ABCO team, or visit isceon.com today.

GET OUT IN FRONT OF R-22 SUPPLYREDUCTIONS WITH DUPONT™ ISCEON® MO99™

R-22 PHASEOUT CONTINUES AT AN ACCELERATED PACE.VIRGIN R-22 SUPPLY REDUCED BY 16 MILLION POUNDS IN 2013.

THE TIME TO RETROFIT TO ISCEON® MO99™ IS NOW.

Compact, efficient and dry-charged for R-22 installations.Luxaire’s Guardian Series GCGD and GHGD models are the practical replacement solution.

Need proof that good things really do come in small packages?

Luxaire Guardian GCGD-2 Model

• Unique MicroChannel Coil construction creates a superior heat exchange surface that allows a smaller unit to provide higher performance in less space

• Permanently lubricated fan motor reduces maintenance costs

• High-pressure relief valve and solid core filter-drier extend life of compressor

• Slim, attractive design will impress you and your neighbors

• Compressor is protected from high pressure and temperature for durability

*Register online within 90 days of installation. This warranty does not apply to 3-phase models or internet sales. See the Limited Warranty certificate in the User’s Information Manual for details.

Features:- 1.5-5 Ton Capacity- 13 SEER

- Small footprint, perfect for any application

- Top discharge allows compact location on multi-unit applications

Warranty Information - 5-Years Limited Compressor* - 5-Years Limited Parts*

Talk to your ABCO Branch Team or Sales Account Manager about all the R-22 replacement options available to you and your customers.

Advanced Comfort and EfficiencyThe advanced Luxaire Guardian series gives yousuperior comfort and cost-saving, energy-efficientperformance – all in a compact, innovative design thatbrings fresh style to family comfort.

Luxaire’s advanced MicroChannel Coil usesall-aluminum construction developed in the automotiveindustry. The coil allows a smaller unit to providehigher performance in less space due to the advancedheat exchange surface.

With its durable finish, low install cost, and protectedinternal components, the Luxaire Guardian GCGD andGHGD split system model is the ultimate R-22replacement solution.

Luxaire Guardian™ Series GCGD-2 models arereplacement components for the outdoor part ofexisting R-22 air conditioning system installations.These models are shipped from the factory with anitrogen holding charge, and R-22 refrigerant must becharged in the field from a field-sourced supply.

R-22 Phaseout:What comes next?

On January 7, 2013, the EPA announced an acceleration of theR-22 Phaseout, with a 29% reductionof the allowed supply of virgin R-22. The EPA’s new proposal confirms their determination to aggressively reduce usage and dependence on R-22.This is a significant change from the original EPA 2009 ruling that stated the R-22 phaseout would be accomplished through a 10% annual reduction. Naturally, this new change is likely to create a continuous increase in the price of R-22. Rest assured ABCO will have sufficient inventory for all your day-to-day needs. We will be working closely with DuPont to monitor the situation and keep you, our valued customer, fully informed. Especially since this proposal is also likely to have a significant impact on availability of R-22 product. Keep in mind that all manufacturers are currently evaluating inventory levels and have already announced a substantial price increase on R-22 product. Fortunately, we have cost-effective R-22 replacement options that are perfect for the requirements of youand your customers. ABCO is committed to providing a deep inventory and wide range of R-22 replacement options such as the versatile MO99™ and other DuPont ISCEON® products. They’re the wave of the future and greener, too.

You can contact any member of your ABCO team if you have any questions or would like to discuss R-22 replacement solutions.

They’re back: 25C Federal Tax Credits ReturnOn Thursday, January 3, 2013,

President Obama signed the Fiscal Cliff deal into law, which included a resurrection of the 25C Tax Credit for

high efficiency HVAC and heating equipment. The credit was also extended both retroactively for 2012 and 2013. However, the lifetime limit for the credit is $500. If a homeowner claimed the credit before the end of 2011 they are now ineligible. This revived 25C Tax Credit is a great selling opportunity for high efficiency products including: Luxaire, Mitsubishi, NTI, Dunkirk, Comfort-Aire and Aspen. It’s also a great chance to build customer loyalty and potential referrals, as you can simply notify your customers of the tax credit opportunity on any equipment installed and purchased during 2012. Homeowners are eligible to claim up to 10% of the cost of installing high efficiency equipment with the total dollar amount capped depending on the product installed. Total caps range from $50 on advanced main circulating fans up to $150, on qualified furnaces and hot water boilers, and $300 for qualified air conditioners, heat pumps and hot water heaters.

Qualifying Efficiency Levels and theircorresponding

maximum Tax Creditvalues are as follows:• Central A/C (Split-System): 16 SEER & 13 EER or higher $300• Central A/C (Package System): 14 SEER & 12 EER or higher $300 • Heat Pump (Split-System): 15 SEER/ 12.5 EER/ 8.5 HSPF or higher $300 • Heat Pump (Package System): 14 SEER/12 EER/ 8.0 HSPF or higher $300 • Boilers (Natural Gas/ Oil/Propane): 95% AFUE $150 • Furnaces (Natural Gas/ Oil/ Propane): 95% AFUE $150 • Advanced Main Circulating Fan: If the fan uses less than 2% of the furnaces (Natural Gas/ Oil/ Propane) total energy $50

Department of Energy Regional Energy Efficiency

Standards Update: Lawsuit Settlement Reached After months of negotiations,the Department of Energy has reached a tentative settlement agreement regarding the Regional Energy Efficiency Standards, which were to take effect May 1, 2013 and require all furnaces in the Northeast region to operate at a minimum efficiency rate of 90% AFUE. The agreement, if accepted, will still require approval by the courts before it can be finalized. According to reports, the pending agreement would vacate the current non-weatherized gas furnace and mobile gas furnace standards, and begin the process for developing a new standard within a year of the settlement’s finalization. What does the mean for you?It means that the new regulations requiring 90% AFUE furnace installations, as well as the ban on running furnace exhaust through an existing chimney, are no longer valid. This is great news for homeowners who want to replace their current furnace, but are conscious about the costs. This settlement agreement doesnot impact the Regional Efficiency Standards for Central A/C, nor does it rule out a similar furnace regulation’s implementation in any subsequent rulemaking. We here at ABCO promise to keep all our customers informed about any further developments regarding the settlement and any new regulations that may result.

More reasons than ever to love the HVAC/R business.

CONTINUED FROM FRONT COVER

THE 2012 MITSUBISHI AWARDS Mitsubishi is a vital part of ABCO’s success. In appreciation of Mitsubishi,our Sales Account Managers and all of our customers who rely on us for Mr. Slim,ABCO created the first annual “Million Dollar M&P Series” Awards for team members who’ve sold $1 million or more of M&P. Congratulations to all the winners and thank you to all our customers.

These guys look like a million bucks.(L to R) From Mitsubishi: Regional Sales Managers Tom McSorley, David Hazel, John Hanley.From ABCO: Sales Account Managers Joe Cosentino (Connecticut), Tony Russo (Bronx/Westchester), Andy Kahan (New York City), Dominick Drab (Hauppauge), Mike Crowley (Queens/Brooklyn),Justin Renna (Hicksville), Peter Donati (Boston), V.P. Sales Management Scott Groleau.

LEFT: Triple Crown Winner Justin Renna, Sales Account Manager in Hicksville.

BROOKLYN

Bobby Siegel

Ben Cruz

Tim Jones, Noelle Nardello, Louis Mirabal

Brian Nickerson

Cesar Zevallos

CENTER CITY

WHITE PLAINSWHITE PLAINS

BOSTON

MANHATTAN

THE 2012 EMERGENCIES& EXCELLENCE AWARDS To recognize hard work and success in servicing our customers, ABCO honored branches and individuals for their outstanding performances in 2012. Awards were

accepted by Branch Managers and winners included:

• Branch Sales Excellence AwardBrooklyn (3rd year in a row), Center City,White Plains

• Inventory Excellence AwardBoston, Manhattan, White Plains

• Performance EvaluationJudy Scharfman

Also honored were the unsung heroeswho open up our branches on weekends and in the middle of the night to help our customers save the day. For the third year in a row,The 2012 Emergency Openings Award went to Dwayne Dedovitch from Totowa who topped everyone with a superhuman 42 trips to the branch, followed closely by John Canetti &John Moran from Kenilworth and many others.

ABCO recognizes how important it is to be there for our customers. Whether it’s an obscure refrigeration part at 3 a.m. to keep thousands of dollars of food from spoiling, or a compressor on a Saturday night in July to keep hundreds of restaurant customers cool, know this: ABCO is here for you 24/7. Just call our Emergency Hotline at 877-937-ABCO (2226).

AND THE WINNER IS…

Korean Air Conditioning & Refrigeration Association of New York Celebrates 19th Year. On Friday, January 25th, KARA held their 19th Annual Celebration at the enchanting Kum Gang San Manor in Flushing, NY. Over 200 members and friends from the close-knit community of KARA attended the event, including more than 50 people from ABCO. As always, everyone enjoyed the delicious traditional Korean foods, generous drinks, singing, dancing and legendary raffle.

Pedro Morales, Assistant Branch Manager of ABCO Manhattan, was honored with the Awardof Appreciation to recognize his strong support and contributions. Fina Vicari, Elsy Taylor andAnna Kahan took over the dance floor Gangnam style, while Shela and Guy Damis took over the stage Karaoke style and Bob Cesiro took home a 47” color TV First Prize style.

KARA is a group of Korean-American HVAC/R contractors that work together to promote knowledge and industry expertise. This association also creates a valuable business network for its members. Since its conception in 1994, ABCO has been KARA’s main supplier of HVAC/R equipment, and a primary resource for KARA members for technological information. Current President H.Y. Kim ofK.H.Y. Refrigeration expressed KARA’s appreciation for ABCO’s continuous support by thanking ABCO President Jon Gottlieb.

The feeling is mutual. Congratulations to our partners at KARA. We look forward to many years of continued friendship and success.

KARA 19! A/C Contractors have enjoyed utility rebates for years. Now Refrigeration Contractors may be eligible for rebates on retrofits with the Copeland Scroll XJ Outdoor Condensing Unit for Cooler and Freezer applications.No one will work harder than ABCO to hunt down theserebates for you—and it’s worth it.

On top of 20% higher energy efficiency with the Copeland Scroll XJ, your customers may be able tosave even more with utility rebates. You must be pre-approved and not all states qualify, but it’s easyto find out if you qualify:

Step 1. Tell your ABCO Team or Sales Account Manager which Copeland Scroll XJ you want to purchase.

Step 2. We’ll do all the initial paperwork and submit your rebate form to Emerson.

Step 3. Within 48 hours or so, we’ll let you know if your XJ condensing unit qualifies for a utility rebate and, if so, how much. We’ll also tell you what’s next.

Take advantage of rebates the utilitycompanies need to offer, plus all thebenefits of the Copeland XJ:

• Delivers unmatched energy savings• Highest energy efficiency levels• Diagnostic protection• Reduced sound levels• Slim profile, lighter weight and wall mount capability for flexible mounting options

They’re harder to find than Bigfoot, but refrigeration utility rebatesreally do exist. ABCO will help you get them on the Copeland Scroll® XJ.

See how much you can save your customers with the Copeland Scroll XJ. Contact your ABCO Branch Team, Sales Account Manager or visit EmersonClimate.com/XJrebate

“In addition to the$2,500 rebate mycustomer received fromCon Edison, I estimatethe energy savings fromthe new Copeland ScrollXJ condensing unitswill be approximately$3,400 annually.”Charles Sternberg, President,S&S Refrigeration Co.

Myth or reality?REFRIGERATION

UTILITYREBATES

Contact us for all your HVAC/R needs, or visit our website at ABCOhvacr.com

49-70 31st StreetLong Island City, NY 11101-3193RETURN SERVICE REQUESTED

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Branch Manager Location Phone Number

Wayne Turner Bronx 718-401-1001 Craig Bakelaar Bronx 718-401-1001Robert Siegel Brooklyn 718-257-5700Anthony Sciarrillo Long Island City 718-937-9000Guy Damis Long Island City 718-937-9000Vincent Riker Long Island City 718-937-9000Cesar Zevallos Manhattan 212-929-8400Harold Kaplan Staten Island 718-273-0200SallyAnn Whalen Staten Island 718-273-0200Patti Henderson Hauppauge 631-234-5500John Cassetta Hicksville 516-938-8400Charley Gardella Suffern 845-357-3322Louis Mirabal White Plains 914-946-2020Tim Jones White Plains 914-946-2020John Canetti Kenilworth 908-931-0700A.C. Williams Totowa 973-812-6500Ben Cruz Philadelphia (Center City) 215-922-0200Mark Shinn Philadelphia (NE) 215-673-2300Brian Nickerson Boston 617-625-5500Frank Justo Stamford 203-325-9000Jim Smithson Wilmington/New Castle 302-328-0400John Sawczuk Baltimore/Washington DC 410-724-8900

Sales Account Manager Territory Phone Number

Al Stella Suffern/Totowa 973-460-3625Andrew Kahan New York City 347-672-3137Dominick Drab Hauppauge 917-335-3952Greg White Wilmington/New Castle 302-218-1692Tim O’Donnell Baltimore/Washington DC 301-356-2104John Launay Kenilworth /Totowa 201-376-6161Joseph Cosentino Connecticut 646-523-6541Justin Renna Hicksville 917-681-2796Michael Motyczka Philadelphia 215-409-5630Mike Crowley Queens/Brooklyn 347-538-7047Peter Donati Boston 617-592-7039Tony Russo Bronx/Westchester 347-723-0062Pat Drumm New Jersey/Pennsylvania 973-897-7525Michael Joyce Philadelphia 347-486-0352

More reasons than ever to love the

HVAC/R business.

WHAT’SLOVE GOT

TO DOWITH IT?