2022-043 DEC March 2022 DashboardDate: 7/08/2022 Report No. 2022-043
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2021-22 Denton Energy Center (DEC) YTD March 2022 Dashboard
BACKGROUND:
The FY 2021-22 DEC January 2022 Dashboard, FY 2021-22 DEC February 2022 Dashboard, and
FY 2021-22 DEC March 2022 Dashboard are attached. The data below reflects the FY 2021-22
DEC YTD March 2022 Dashboard. The dashboard is intended to give a snapshot of relevant DEC
metrics. The dashboards highlight the following:
The Emission Charts (based on calendar year) display the March engine runtime hours,
starts, stops, monthly and annual emissions totals and limits.
DEC MWh Generation and Gross Revenue for FY 2021-22 through March 2022.
o The DEC ran 20,124 MWh more through March of FY 2021-22 compared to FY
2020-21. However, due to Winter Storm Uri in February 2021, revenues through
March 2022 are approximately $109.4 million less and fuel costs are $18.5
million less than for the same time period last fiscal year.
A DEC financial summary showing March FY 2020-21 Actuals, FY 2021-22 Budget and
Actuals as of March 2022.
The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
The Key Trends section explains variances in revenues and expenses.
o As a result of higher gas prices, the FY 2021-22 year-end estimate has been
updated to reflect a $36.1 million increase in revenue and a $25.5 million increase
in fuel costs.
o The year-end estimate has also been updated to include a $664,000 increase in
insurance.
o These updates result in an $8.7 million increase in DEC net income when
compared to budget.
o The DEC Gross Margin through March was $8.2 million which is $6.5 million
higher than budgeted for October through March. (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.
ATTACHMENT(S):
Denton Energy Center (DEC) Dashboard – January 2022
Denton Energy Center (DEC) Dashboard – February 2022
Denton Energy Center (DEC) Dashboard – March 2022
STAFF CONTACTS:
Cassey Ogden
Chief Financial Officer
(940) 349-7195
cassandra.ogden@cityofdenton.com
Date: 7/08/2022 Report No. 2022-043
Nick Vincent
Assistant Director of Finance
(940) 349-8063
nicholas.vincent@cityofdenton.com
City of Denton, Texas
FY 2021-22 Denton Energy Center
YTD MARCH 2022 Dashboard
Key Trends
For the first six months of FY 2021-22, the DEC produced 20,124 MWh more than the same time period
of FY 2020-21. However, due to Winter Storm Uri in February 2021, revenues through March 2022 are
approximately $109.4 million less and fuel costs are $18.5 million less than for the same time period last
fiscal year.
As a result of higher gas prices, the FY 2021-22 year-end estimate has been updated to reflect a $36.1
million increase in revenue and a $25.5 million increase in fuel costs. The year-end estimate has also
been updated to include a $664,000 increase in insurance. These updates result in an $8.7 million
increase in DEC net income when compared to budget.
The DEC Gross Margin as of March 31 was $8.2 million which is $6.5 million higher than budgeted for
October through March. (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance
Cost).
Month Revenue MWh $/MWh
Oct-21 $3,283,392 36,361 $90.30
Nov-21 $2,900,790 26,776 $108.34
Dec-21 $1,073,883 11,028 $97.37
Jan-22 $1,183,268 14,651 $80.77
Feb-22 $3,902,695 15,172 $257.23
Mar-22 $1,645,577 14,850 $110.81
Total FY 2021-22 $13,989,604 118,837 $117.72
Generation & Gross Revenues
FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22
ACTUALS BUDGET YTD ESTIMATE
DEC REVENUE 123.42$ 21.29$ 13.99$ 57.35$
EXPENDITURE SUMMARY
Energy Expense - Fuel 24.26$ 12.75$ 5.71$ 38.22$
Personnel Services 0.87 1.80 0.91 1.80
Materials & Supplies 0.05 1.70 0.31 2.89
Maintenance & Repair 0.10 0.56 0.16 0.56
Insurance 0.01 1.81 1.20 2.48
Operations 0.45 0.33 0.16 0.33
Debt Service - Principal 3.90 8.26 4.09 8.26
Debt Service - Interest 4.75 9.04 4.55 9.04
Interfund Transfers 0.12 0.26 0.14 0.27
Transfer to Capital Projects - - - -
DEC EXPENDITURES 34.51$ 36.51$ 17.23$ 63.85$
DEC NET INCOME 88.91$ (15.22)$ (3.24)$ (6.50)$
Note: All dollar figures presented in millions.
Description
Engine
Runtime
(hours)*
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Matter<10
microns
(PM10)
Particulate
Matter<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxide
Equivalents
(CO2e)
DEC Monthly Emissions Total (tons)1.81 1.81 1.44 1.00 1.00 0.02 0.20 7,509.00
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 6.08%1.93%2.98%1.43%1.43%1.33%0.33%
Annual to Date Plant Emissions per DEC Permit Limit 17.10%5.60%8.50%4.60%4.60%3.90%1.10%
* Over the past 12 months, the DEC engines ran 21% of the time. During the month of March, the DEC engines ran 15% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
March 2022
Engines (1-12)1,347 224 76 166 466