2019-143 May 2019 Denton Energy Center DashboardDate: July 5, 2019 Report No. 2019-143
INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2018-2019 Denton Energy Center (DEC) Dashboard – May 2019 BACKGROUND: Attached is the FY 2018-2019 Denton Energy Center Dashboard for May 2019. The dashboard is intended to give a snapshot of relevant DEC metrics. The dashboard highlights the following:
• The Emission Chart displays the May engine runtime hours, starts, stops, monthly and annual emissions totals and limits. o Cold Start – Emission system is below 115°. More emissions are produced from cold starts than warmer starts.
o Warm Start – Emission system is between 116° and 170°.
o Hot Start - Emission system is above 170°. o Stops – Emissions are produced each time the engine is stopped.
• DEC MWh Generation and Gross Revenue for FY 2018-2019 through May 2019.
• A DEC financial summary showing FY 2017-2018 Actuals, FY 2018-2019 Budget, YTD Revenues & Expenses and Fiscal Year End Projections by Expense Category.
• Notably, DEC debt service payments will exceed budget by $9.1M this year in adherence
to bond requirements. The variation doesn’t change the total amount of bond debt service
payments but increases the FY 2018-19 debt service expense.
o The first principal payment on the DEC revenue bond will be made on 12/1/19. In accordance with our normal procedures, we budgeted this payment in FY 2019-20.
o The bond language varies from other bonds and requires transfers to the debt
service fund on a monthly basis. Thus, increased expenditures over budget are realized in FY 2018-19. This has no change on the overall DEC debt service payments. o This transfer requirement was found from an internal staff review of bond
language.
• The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
• The Key Financial Trends section explains the footnotes in the financial section and will be used to explain variances in revenues and expenses.
Overall, the DEC had more run hours in May 2019 than previous months. As we continue to gain historical data of DEC operations we’ll be better able to identify trends in future months. ATTACHMENT(S): Denton Energy Center (DEC) Dashboard – May 2019
Date: July 5, 2019 Report No. 2019-143
STAFF CONTACT:
David Gaines, Director of Finance
(940) 349-8260David.Gaines@cityofdenton.com
REQUESTOR: Staff generated
PARTICIPATING DEPARTMENTS: DME, Finance
STAFF TIME TO COMPLETE REPORT: 8 hours
Note: All dollar figures presented are in millions of dollars.
City of Denton, Texas
FY 2018-19 Denton Energy Center YTD May 2019 Dashboard
Key Trends
(1)In August 2018, $443,454 was paid to COD self insurance fund for insurance on Denton Energy
Center -The policy period is 5/25/2018 to 5/25/2019.
(2)DEC Debt Service principal and interest payments will exceed budget by $9.1M this year in
adherence to bond requirements The variation does not change total debt service paid over the
life of the bond, but does increase the FY 2018-19 debt service payment
(3)Includes $157,000 for rolling stock equipment, and $140,000 for the purchase of
shelving/racks/equipment in FY2017-18.
(4)Capital Charge Back represents capitalized expenses during construction and startup. The charge
back was charged FY 2017-18 during construction and startup.
Emissions
May 2019
Description
Engine
Runtime
(hours)
Hot
Starts
Warm
Starts
Cold
Starts Stops Description NOx CO VCO PM10 PM2.5 SO2 NH3 CO2e
Engines (1-12)2,116 30 45 73 148
DEC Monthly Emissions Total (tons)1.10 1.07 0.70 1.02 1.02 0.02 0.31 7,140.00
DEC Annual Permit Limit Operations (tons)30.52 92.95 48.29 69.76 69.76 1.60 60.90
Monthly Plant Emissions per DEC Permit Limit 3.62%1.16%1.44%1.46%1.46%0.96%0.50%
Annual to Date Plant Emissions per DEC Permit Limit 21.20%6.90%10.30%4.90%4.90%4.10%1.00%
Generation & Gross Revenues
Month Revenue (In Millions)MWh $/MWh
Oct-18 $2.02 23,521 $85.77
Nov-18 $1.71 17,919 $95.16
Dec-18 $0.34 5,693 $59.61
Jan-19 $0.50 9,665 $51.80
Feb-19 $0.80 11,507 $69.79
Mar-19 $1.34 17,435 $76.77
Apr-19 $0.95 14,467 $65.97
May-19 $0.66 12,513 $52.41
Total FY 18-19 $8.31 112,719 $73.76
FY 2017-18 FY 2018-19 FY 2018-19 FY 2018-19
ACTUALS BUDGET YTD PROJECTION
DEC REVENUE* $ 11.88 $ 36.30 $ 8.31 $ 29.40
EXPENDITURE SUMMARY
Energy Expense -Fuel $ 2.17 $ 14.97 $ 3.63 $ 14.71
Personal Services 0.91 1.87 1.13 1.85
Materials & Supplies 0.36 0.14 0.12 0.13
Maintenance & Repair 0.03 0.26 0.09 0.28
Insurance (1)0.44 0.45 0.01 0.49
Miscellaneous ---0.01
Operations 0.14 0.82 0.14 0.81
Debt Service -Principal (2)--3.58 5.97
Debt Service -Interest(2)-4.45 4.21 7.58
Interfund Transfers ----
Transfer to Capital Projects (3) 0.30 0.01 -0.01
DEC EXPENDITURES $ 4.35 $ 22.97 $ 12.91 $ 31.84
CAPITAL CHARGE BACK(4)$ (0.92)$ -$ -$ -
DEC NET INCOME $ 8.45 $ 13.33 $ (4.60)$ (2.44)
*Preliminary, Unaudited Figures