2019-187 DEC September 2019 DashboardDate:1RYHPEHU Report No.
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2018-2019 Denton Energy Center (DEC) Dashboard – September 2019
(Preliminary Year-End Actuals)
BACKGROUND:
Attached is the FY 2018-2019 Denton Energy Center Dashboard for September 2019. The
dashboard is intended to give a snapshot of relevant DEC metrics. The dashboard highlights the
following:
The Emission Chart displays the September 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 September 2019.
A DEC financial summary showing FY 2017-2018 Actuals, FY 2018-2019 Budget,
Fiscal Year End Projections and the FY 2018-2019 Preliminary Actuals by Expense
Category.
o The FY 2018-2019 Preliminary Actuals show that the DEC Net Income was
$14.22 Million which is higher than the estimated $(2.44) Net Loss. This was due
to higher DEC revenues in August & September, as well as lower fuel and
operating cost.
o 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.
The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
The Key Trends section explains the footnotes in the financial section and will be used to
explain variances in revenues and expenses.
o The DEC Gross Margin was $30.3 Million which is $8.9 Million higher than
budgeted. (The Gross Margin = DEC Revenue – Fuel cost –Variable Operating
& Maintenance cost.) Gross Margin represents the component of revenue
available to pay fixed cost including debt.
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 – September 2019
STAFF CONTACT:
David Gaines, Director of Finance
(940) 349-8260
David.Gaines@cityofdenton.com
Date:1RYHPEHU Report No.
Note: All dollar figures presented are in millions of dollars.
City of Denton, Texas
FY 2018-19 Denton Energy Center YTD September 2019 Dashboard
Key Trends
(1)The fiscal year end DEC Gross Margin was $30.3 Million which is $8.9 Million higher than budgeted.
(Gross Margin = DEC Revenue –Fuel cost –Variable Operating & Maintenance cost)
(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 FY 2017-18.
(4)Capital Charge Back represents capitalized expenses during construction and startup. The charge
back was charged FY 2017-18 during construction and startup.
Emissions
September 2019
Description
Engine
Runtime
(hours)
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Mater<10
microns
(PM10)
Particulate
Mater<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxde
Equivalents
(CO2e)
Engines (1-12)2,366 219 243 71 533
DEC Monthly Emissions Total (tons)1.91 1.74 1.75 1.48 1.48 0.03 0.36 18,024.00
DEC Annual Permit Limit Operations (tons)*29.78 93.52 48.16 69.72 69.72 1.45 60.90
Monthly Plant Emissions per DEC Permit Limit 6.40%1.86%3.64%2.13%2.13%1.83%0.59%
Annual to Date Plant Emissions per DEC Permit Limit 48.50%14.70%23.80%13.90%13.90%11.90%3.70%
*Operations Annual Limit accounts for Balance of Plant standard emissions
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
Jun-19 $1.35 18,327 $73.81
Jul-19 $2.42 31,372 $77.29
Aug-19 $19.71 46,733 $421.77
Sep-19 $5.68 37,181 $152.77
Total FY 18-19 $37.48 246,333 $152.16
FY 2017-18 FY 2018-19 FY 2018-19
ACTUALS BUDGET
PRELIMINARY
ACTUALS
DEC REVENUE* 11.88$ 36.30$ 29.40$ 37.48$
EXPENDITURE SUMMARY
Energy Expense - Fuel 2.17$ 14.97$ 14.71$ 6.95$
Personal Services 0.91 1.87 1.85 1.67
Materials & Supplies 0.36 0.14 0.13 0.16
Maintenance & Repair 0.03 0.26 0.28 0.11
Insurance 0.44 0.45 0.49 0.49
Miscellaneous - - 0.01 -
Operations 0.14 0.82 0.81 0.21
Debt Service - Principal (2)- - 5.97 5.97
Debt Service - Interest (2)- 4.45 7.58 7.58
Interfund Transfers - - - 0.12
Transfer to Capital Projects (3)0.30 0.01 0.01 -
DEC EXPENDITURES 4.35$ 22.97$ 31.84$ 23.26$
CAPITAL CHARGE BACK (4)(0.92)$ -$ -$ -$
DEC NET INCOME 8.45$ 13.33$ (2.44)$ 14.22$
*Preliminary, Unaudited Figures
Year end
Estimate
@
6/30/2019