2022-044 Denton Energy Center Dashboard UpdateDate: August 12, 2022 Report No. 2022-044
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2021-22 Denton Energy Center (DEC) YTD April 2022 and May 2022 Dashboard
BACKGROUND:
The FY 2021-22 DEC April 2022 Dashboard and FY 2021-22 DEC May 2022 Dashboard are
attached. The data below reflects the FY 2021-22 DEC YTD May 2022 Dashboard. The
dashboard is intended to give a snapshot of relevant DEC metrics. The dashboards highlight the
following:
• The Emission Charts (based on the calendar year) display the May engine runtime hours,
starts, stops, monthly and annual emissions totals, and limits.
• DEC MWh Generation and Gross Revenue for FY 2021-22 through May 2022
o The DEC ran 45,493 MWh more through May of FY 2021-22 compared to FY
2020-21. However, due to Winter Storm Uri in February 2021, revenues through
May 2022 were approximately $104.7 million less and fuel costs were $15.7
million less than for the same time period last fiscal year.
• A DEC financial summary showing May FY 2021-22 Actuals, FY 2021-22 Budget,
Actuals as of May 2022, and the FY 2021-22 end-of-year projections.
• The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
• The Key Trends section explains variances in revenues and expenses.
o The 2021-22 year-end estimate was updated to reflect a $36.1 million increase in
revenue and a $25.5 million increase in fuel cost.
o The year-end estimate has also been updated to include a $664,000 increase in
insurance and a $996,000 increase for outage insurance.
o These updates result in a $7.7 million increase in DEC net income when
compared to budget.
o The net income for the DEC through May equals ($2.15) million.
o The DEC Gross Margin as of May 31 was $13.6 million which is $11.6 million
higher than budgeted for October through May. (The Gross Margin = DEC
Revenue – Fuel cost –Variable Operating & Maintenance cost.) Gross Margin
represents the component of revenue available to pay fixed costs including debt.
ATTACHMENT(S):
Denton Energy Center (DEC) Dashboard – April 2022
Denton Energy Center (DEC) Dashboard – May 2022
STAFF CONTACTS:
Cassey Ogden
Chief Financial Officer
(940) 349-7195
cassandra.ogden@cityofdenton.com
Nick Vincent
Assistant Director of Finance
Date: August 12, 2022 Report No. 2022-044
(940) 349-8063
nicholas.vincent@cityofdenton.com
City of Denton, Texas FY 2021-22 Denton Energy Center YTD APRIL 2022 DashboardKey TrendsFor the first seven months of FY 2021‐22, the DEC produced 21,912 MWh more than the same time period of FY 2020‐21. However, due to Winter Storm Uri in February 2021, revenues through April 2022 are approximately $110.3 million less and fuel costs are $21.9 million more than for the same time period last fiscal year. As a result of higher gas prices, the FY 2021‐22 year‐end estimate was updated to reflect a $36.1 million increase in revenue, a $25.5 million increase in fuel costs, and a $664,000 increase in insurance. The year‐end estimate has now been updated to include a $996,000 increase for outage insurance. These updates result in an $7.7 million increase in DEC net income when compared to budget.The DEC Gross Margin as of April 30 was $9.5 million which is $7.8 million higher than budgeted for October through April. (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost).DescriptionEngine Runtime (hours)*Hot StartsWarm StartsCold Starts StopsDescriptionNitrogen 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) 1.78 1.79 1.55 1.20 1.20 0.02 0.27 10,107.00 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 5.96% 1.92% 3.22% 1.72% 1.72% 1.53% 0.45%Annual to Date Plant Emissions per DEC Permit Limit 23.10% 7.50% 11.70% 6.30% 6.30% 5.40% 1.60%* Over the past 12 months, the DEC engines ran 21% of the time. During the month of April, the DEC engines ran 21% of the time.**Operations Annual Limit accounts for Balance of Plant standard emissionsEmissionsApril 2022Engines (1‐12)1,723 269 81 139 489 MonthRevenue MWh $/MWhOct‐21 $3,283,392 36,361 $90.30Nov‐21 $2,900,790 26,776 $108.34Dec‐21 $1,073,883 11,028 $97.37Jan‐22 $1,183,268 14,651 $80.77Feb‐22 $3,902,695 15,172 $257.23Mar‐22 $1,645,577 14,850 $110.81Apr‐22 $2,565,586 20,630 $124.36Total FY 2021‐22 $16,555,190 139,468 $118.70Generation & Gross RevenuesFY 2020‐21 FY 2021‐22 FY 2021‐22 FY 2021‐22ACTUALSBUDGET YTD ESTIMATEDEC REVENUE 126.86$ 21.29$ 16.56$ 57.35$ EXPENDITURE SUMMARYEnergy Expense ‐ Fuel 24.80$ 12.75$ 6.93$ 38.22$ Personnel Services 1.08 1.80 1.14 1.81 Materials & Supplies 0.05 1.70 0.40 2.89 Maintenance & Repair 0.11 0.56 0.24 0.56 Insurance 0.02 1.81 1.32 3.47 Operations 0.47 0.33 0.19 0.33 Debt Service ‐ Principal 4.56 8.26 4.79 8.26 Debt Service ‐ Interest 5.53 9.04 5.30 9.04 Interfund Transfers 0.14 0.26 0.16 0.27 Transfer to Capital Projects‐ ‐ ‐ ‐ DEC EXPENDITURES 36.76$ 36.51$ 20.47$ 64.85$ DEC NET INCOME 90.10$ (15.22)$ (3.91)$ (7.50)$ Note: All dollar figures presented in millions.
City of Denton, Texas
FY 2021-22 Denton Energy Center
YTD May 2022 Dashboard
Key Trends
For the first eight months of FY 2021-22, the DEC produced 45,493 MWh more than the same time
period of FY 2020-21. However, due to Winter Storm Uri in February 2021, revenues through May 2022
were approximately $104.7 million less and fuel costs were $15.7 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 was updated to reflect a $36.1 million
increase in revenue, a $25.5 million increase in fuel costs, and a $664,000 increase in insurance. The
year-end estimate has now been updated to include a $996,000 increase for outage insurance. These
updates result in an $7.7 million increase in DEC net income when compared to budget.
The DEC Gross Margin as of May 31 was $13.6 million which is $11.6 million higher than budgeted for
October through May. (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance
Cost).
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)1.93 1.92 1.68 1.53 1.53 0.03 0.38 16,373.00
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 6.49%2.05%3.50%2.19%2.19%1.82%0.62%
Annual to Date Plant Emissions per DEC Permit Limit 29.60%9.60%15.20%8.50%8.50%7.20%2.20%
* Over the past 12 months, the DEC engines ran 23% of the time. During the month of May, the DEC engines ran 28% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
May 2022
Engines (1-12)2,517 247 127 120 494
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
Apr-22 $2,565,586 20,630 $124.36
May-22 $6,511,999 32,234 $202.02
Total FY 2021-22 $23,067,189 171,701 $134.34
Generation & Gross Revenues
FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22
ACTUALS BUDGET YTD ESTIMATE
DEC REVENUE 127.78$ 21.29$ 23.07$ 57.35$
EXPENDITURE SUMMARY
Energy Expense - Fuel 25.06$ 12.75$ 9.34$ 38.22$
Personnel Services 1.24 1.80 1.29 1.81
Materials & Supplies 0.06 1.70 0.43 2.89
Maintenance & Repair 0.12 0.56 0.24 0.56
Insurance 0.70 1.81 1.99 3.47
Operations 0.49 0.33 0.22 0.33
Debt Service - Principal 5.22 8.26 5.48 8.26
Debt Service - Interest 6.31 9.04 6.05 9.04
Interfund Transfers 0.16 0.26 0.18 0.27
Transfer to Capital Projects - - - -
DEC EXPENDITURES 39.36$ 36.51$ 25.22$ 64.85$
DEC NET INCOME 88.42$ (15.22)$ (2.15)$ (7.50)$
Note: All dollar figures presented in millions.