2023-005 FY 21-22 Denton Energy Center (DEC) September 2022 Dashboard Date: 1/13/2023 Report No. 2023-005
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2021-22 Denton Energy Center(DEC)YTD September 2022 Dashboard
BACKGROUND:
Attached is the September FY 2021-22 Dashboard for the Denton Energy Center. 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 September engine runtime
hours, starts, stops, monthly and annual emissions totals and limits.
• A DEC financial summary showing September FY 2021-22 Actuals, FY 2021-22
Budget, Actuals as of September 2022 and the FY 2021-22 end of year projections.
o As a result of Winter Storm Uri and the hot summer months of 2022, the FY
2021-22 year-end projections have been updated to show a $3.4 million decrease
in DEC fuel cost.
• The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
• The Key Trends section explains variances in revenues and expenses.
o Due to running more hours through September, the fuel cost was $3.4 million
lower.
o The net income for the DEC through September equals $8.94 million,which is a
direct result of higher run times than budgeted.
o The DEC Gross Margin through September was $33.41 million which is $25.10
million higher than budgeted also mainly due to Winter Storm Uri. (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
STAFF CONTACTS:
Cassey Ogden
Interim-Assistant City Manager
(940) 349-7195
cassandra.ogdenkcityofdenton.com
Nick Vincent
Interim-Finance Director
(940) 349-8063
nicholas.vincentkcityofdenton.com
City of Denton, Texas
FY 2021-22 Denton Energy Center
DENTON YTD September 2022 Dashboard
Emissions
September 2022
Volatile Particulate Particulate Carbon
Engine Nitrogen Carbon Organic Matter<10 Matter<2.5 Sulphur Dioxide
Runtime Hot Warm Cold Oxides Monoxide Compound microns microns Dioxide Ammonia Equivalents
Description (hours)* Starts Starts Starts Stops Description (NOx) (CO) I (VOC) (PM10) (PM2.5) (SOZ) (NHA (COZe)
DEC Monthly Emissions Total(tons) 1.67 1.58 1.77 1.66 1.66 0.03 0.44 19,451.00
Engines(1-12) 2, 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 5.61% 1.69% 3.689/c 2.38% 2.38% 1.97% 0.72%
Annual to Date Plant Emissions per DEC Permit Limit 51.80% 17.10% 31.30% 20.90% 20.90% 17.00%
*Overthe past 12 months,the DEC engines ran 30%of the time. During the month of September,the DEC engines ran 33%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues
Month Revenue Mwh $/MWh Plant Month IV Run Hour Comparison
6,000
Oct-21 $3,283,392 36,361 $90.30 5,452
Nov-21 $2,900,790 26,776 $108.34 5,000
Dec-21 $1,073,883 11,028 $97.37 3,904 3,972
Jan-22 $1,183,268 14,651 $80.77 "' 4,000 -
0
Feb-22 $3,902,695 15,172 $257.23 x z,eo3
Mar-22 $1,645,577 14,850 $110.81 3,000 2735 2,589
� 2,517
2,221
Apr-22 $2,565,586 20,630 $124.36 1,773
2,000 1,675 1,538
May-22 $6,511,999 32,234 $202.02 1,347
1,218
Jun-22 $5,399,858 57,964 $93.16 1,000
Jul-22 $18,419,548 71,998 $255.84
Aug-22 $9,366,541 76,384 2122.62
Sep $3,691,782 40,345 o
Total FY 2021-22 $59,944,927 1 419,392 $143.27 Operating Month
FY 2021-22
FY 2020-21 FY 2021-22 PRELIMINARY
ACTUALS BUDGET ACTUALS Key Trends
DEC REVENUE $ 138.89 $ 21.29 $ 59.94
EXPENDITURE SUMMARY In 2021-22,the DEC produced 174,170 MWh more than the same time period of FY 2020-21.However,
Energy Expense-Fuel $ 29.68 $ 12.75 $ 26.28 due to Winter Storm Uri in February 2021 and the hot summer months of 2022,FY 2021-22 revenues
Personnel Services 1.82 1.80 1.97 were approximately$78.9 million less and fuel costs were$3.4 million less last fiscal year.
Materials&Supplies 0.27 1.70 1.01
Maintenance&Repair 0.38 0.56 0.91 The DEC Gross Margin as of September 30 was$33.41 million which is$25.10 million higher than
Insurance 1.22 1.81 2.93 budgeted(Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
Operations 0.66 0.33 0.35
Debt Service-Principal 7.85 8.26 8.26
Debt Service-Interest 9.43 9.04 9.04
Interfund Transfers 0.24 0.26 0.25
Transfer to Capital Projects - - -
DEC EXPENDITURES $ 51.55 $ 36.51 $ 51.00
DEC NET INCOME $ 87.34 $ (15.22) $ 8.94
Note: All dollar figures presented in millions.