2023-031 FY 2022-23 Denton Energy Center (DEC) YTD Financials April 7, 2023 Report No. 2023-031
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2022-23 Denton Energy Center(DEC) YTD Financials
BACKGROUND:
The FY 2022-23 DEC October 2022, November 2022, December 2022, and January 2023
Dashboards are attached. The dashboards are intended to give a snapshot of relevant DEC metrics.
The dashboards highlight the following:
• The Emission Charts (based on calendar year) display the engine runtime hours, starts,
stops, monthly and annual emissions totals and limits.
• DEC MWh Generation and Gross Revenue for FY 2022-23 YTD.
• A DEC financial summary showing FY 2021-22 Actuals, FY 2022-23 Budget, FY 2022-
23 Budget actuals and the FY 2022-23 end of year projections.
o At this point the FY 2022-23 year-end projections are equal to the FY 2022-23
budget
• The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
• The Key Trends section explains variances in revenues and expenses.
ATTACHMENTS:
Denton Energy Center(DEC) Dashboard—October 2022
Denton Energy Center(DEC) Dashboard—November 2022
Denton Energy Center(DEC) Dashboard—December 2022
Denton Energy Center(DEC) Dashboard—January 2023
STAFF CONTACTS:
Cassey Ogden
Assistant City Manager
(940) 349-7195
cassandra.ogdengcityofdenton.com
Nick Vincent
Interim Finance Director
(940) 349-8063
nicholas.vincentgcityofdenton.com
City of Denton, Texas
FY 2022-23 Denton Energy Center
DENTON YTD October 2022 Dashboard
Emissions
Octber 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) (VOC) (PM10) (PM2.5) (S02) (NH3) (COze)
DEC Monthly Emissions Total(tons) 2.19 2.16 1.91 1.58 1.58 0.03 0.38 15,671.00
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 7.34% 2.31% 3.97% 2.27% 2.27% 1.98% 0.62%
Annual to Date Plant Emissions per DEC Permit Limit 59.10% 19.40% 35.20% 23.20% 23.20% 19.00% 6.90%
*Over the past 12 months,the DEC engines ran 29910 of the time. During the month of October,the DEC engines ran 28%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
Month Revenue MWh $/MWh 6,000 5,452
Oct-22 $2,959,594 30,531 $96.94 5,000
Total FY 2022-23 $2,959,594 30,531 $96.94 4,000 3,904 3,972
0
0
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23 :1= 3,000 2,80a
2,569 2,517 2,51)
YTD BUDGET YTD ESTIMATE oc 2,221
DEC REVENUE $ 3.28 $ 52.55 $ 2.96 $ 52.55 2,000 1,773
1,347
EXPENDITURE SUMMARY 1,z1s
Energy Expense-Fuel $ 1.89 $ 37.05 $ 1.55 $ 37.05 1,000
Personnel Services 0.14 2.17 0.15 2.17
Materials&Supplies - 1.70 0.05 1.70
Maintenance&Repair 0.01 0.56 0.01 0.56 41s
Insurance - 2.24 0.01 2.24 Operating Month
Operations 0.03 0.36 0.03 0.36
Debt Service-Principal 0.66 8.68 0.69 8.68 Key Trends
Debt Service-Interest 0.78 8.62 0.75 8.62
I nterfund Transfers 0.03 0.09 0.01 0.09 For the first month of FY 2022-23,the DEC produced 5,829 MWh less than the same time period of FY
Transferto Capital Projects - 0.02 - 0.02 2021-22. This resulted in approximately$324,000less revenue and$303,000less in total expenditures
DEC EXPENDITURES $ 3.54 $ 61.49 $ 3.25 $ 61.49 than for the same time period last fiscal year.
DEC NET INCOME $ (0.26) $ (8.94) $ (0.29) $ (8.94) The DEC Gross Margin as of October 31 was$1.39 million which is$220,000 higher than budgeted(Gross
Note:All dollarfigures presented in millions. Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
At this point in the fiscal year,the FY 2022-23 year-end projections are equal to the FY 2022-23 budget.
City of Denton, Texas
`<�FY FY 2022-23 Denton Energy Center
DEN'TON YTD November 2022 Dashboard
Emissions
November 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) (VOC) (PMlo) (PM2.5) (SO2) (NH3) (COze)
DEC Monthly Emissions Total(tons) 2.12 2.19 2.10 1.54 1.54 0.03 0.34 15,413.00
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 7.12% 2.34% 4.36% 2.21% 2.21% 2.03% 55.90%
Annual to Date Plant Emissions per DEC Permit Limit 66.20% 21.70% 39.60% 25.40% 25.40% 21.00%
*Over the past 12 months,the DEC engines ran 29%of the time. During the month of November,the DEC engines ran 26%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
Month Revenue MWh $/MWh 6,000 5,452
Oct-22 $2,959,594 30,531 $96.94 s.000
Nov-22 $2,430,599 30,729 $79.10 i2 4,000 3,904 3,972
0
Total FY 2022-23 $5,390,193 61,260 $87.99 = 2,808
C 3,000 - 2,509
K 2,517
2,221 2,211
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23 000 - 1,773
1,675 1,536 1,347
YTD BUDGET YTD ESTIMATE 1,21a
DEC REVENUE $ 6.18 $ 52.55 $ 5.39 $ 52.55 1,000 -
EXPENDITURE SUMMARY
Energy Expense-Fuel $ 3.14 $ 37.05 $ 3.02 $ 37.05 ti ti ti ti ti ti ti ti , ti
Personnel Services 0.30 2.17 0.35 2.17 IZP
Materials &Supplies 0.01 1.70 0.18 1.70 Operating Month
Maintenance &Repair 0.01 0.56 0.32 0.56
Insurance 0.24 2.24 0.01 2.24
Operations 0.07 0.36 0.08 0.36 Key Trends
Debt Service-Principal 1.32 8.68 1.38 8.68
Debt Service-Interest 1.56 8.62 1.50 8.62 For the first two months of FY 2022-23,the DEC produced 1,876 MWh less than the same time period of
Interfund Transfers 0.06 0.09 0.01 0.09 FY 2021-22. This resulted in approximately$794,000less revenue and$142,000 more in total
Transfer to Capital Projects - 0.02 - 0.02 expenditures than for the same time period last fiscal year.
DEC EXPENDITURES $ 6.71 $ 61.49 $ 6.85 $ 61.49
The DEC Gross Margin as of November 30 was$2.33 million which is$674,000 higher than budgeted
DEC NET INCOME $ (0.53) $ (8.94) $ (1.46) $ (8.94) (Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
Note:All dollarfigures presented in millions.
At this point in the fiscal year,the FY 2022-23 year-end projections are equal to the FY 2022-23 budget.
City of Denton, Texas
FY 2022-23 Denton Energy Center
DENTON YTD December 2022 Dashboard
Emissions
December 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) (NH3) (CO2e)
DEC Monthly Emissions Total(tons) 1.83 1.88 1.54 1.42 1.42 0.02 0.36 14,422.00
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 6.16% 2.01% 3.20% 2.04% 2.04% 1.70% 0.60%
Annual to Date Plant Emissions per DEC Permit Limit 72.40% 23.70% 42.80% 27.40% 27.40% 22.70% 8.00%
*Overthe past 12 months,the DEC engines ran 30%of the time. Duringthe month of December,the DEC engines ran 24%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
6,000
Month Revenue MWh $/MWh 5,452
Oct-22 $2,959,594 30,531 $96.94 5,000
Nov-22 $2,430,599 30,729 $79.10
4,000 3,904 3,972
0
Dec-22 $4,822,176 29,708 $162.32 3,000 2,808
K 2,517 2,509 2,211 2,410
Total FY2022-23 $10,212,369 90,968 $112.26 1,773
2,000 -1,675
1,533 1,347
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23 1,z1e
YTD BUDGET YTD ESTIMATE 1,000
DEC REVENUE $ 7.26 $ 52.55 $ 10.21 $ 52.55
EXPENDITURE SUMMARY �+ titi titi vv .� titi titi titi titi titi titi titi vY
aFc-
Energy Expense-Fuel $ 3.59 $ 37.05 $ 4.51 $ 37.05
Personnel Services 0.45 2.17 0.52 2.17 Operating Month
Materials&Supplies 0.06 1.70 0.23 1.70
Maintenance&Repair 0.09 0.56 0.45 0.56 k Key Trends
Insurance 0.84 2.24 0.01 2.24
Operations 0.09 0.36 0.11 0.36 For the first three months of FY 2022-23,the DEC produced 16,803 MWh more than the same time period
DebtService-Principal 2.01 8.68 2.12 8.68
Debt Service-Interest 2.31 8.62 2.21 8.62 of FY 2021 22. This resulted in approximately$3 million more revenue and$668,000 more in total
Interfund Transfers 0.08 0.09 0.02 0.09 expenditures than for the same time period last fiscal year.
Transferto Capital Projects - 0.02 - 0.02
The DEC Gross Margin as of December 31 was$5.63 million which is$3.79 million higher than budgeted
DEC EXPENDITURES $ 9.52 $ 61.49 $ 10.18 $ 61.49 (Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
DEC NET INCOME $ (2.26) $ (8.94) $ 0.03 $ (8.94) At this point in the fiscal year,the FY 2022-23 year-end projections are equal to the FY 2022-23 budget.
Note:All dollarfigures presented in millions.
City of Denton, Texas
FY 2022-23 Denton Energy Center
DENTON YTD January 2023 Dashboard
Emissions
January 2023
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) (VOC) (PM10) (PM2.5) (SOZ) (NH3) (COZe)
DEC Monthly Emissions Total(tons) 3,983.54 4,007.50 2,876.83 1,999.39 1,999.39 38.45 416.18 9,370.00
Engines(1-12) 1, DEC Annual Permit Limit Operations(tons)** 1.99 2.00 1.44 1.00 1.00 0.02 0.21
Monthly Plant Emissions per DEC Permit Limit 6.69% 2.14% 2.99% 1.43% 1.43% 1.33% 0.34%
Annual to Date Plant Emissions per DEC Permit Limit 6.70% 2.10% 3.00% 1.40% 1.40% 1.30%
*Over the past 12 months,the DEC engines ran 30%of the time. During the month of January,the DEC engines ran 13%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
Month Revenue MWh $/MWh a"
5,452
Oct-22 $2,959,594 30,531 $96.94 5'OOD
Nov-22 $2,430,599 30,729 $79.10 3,904 3,972
0
Dec 22 $4,822,176 29,708 $162.32 = s� z,sos
3 2,517 2,509 2,410
Jan-23 $1,316,478 17,864 $73.70 oc z,z11
2 000 1,675 1,773
1,538 1,Total FY 2022-23 $11,528,847 108,831 $105.93 347 1,349
1,00c
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
,y'l. .�'4 .y'Y '11' 'Y7" 'V1" ,1~' .y'L ;Y'4 .1'L �'l .y'Y .L•'a
DEC REVENUE $ 8.44 $ 52.55 $ 11.53 $ 52.55
EXPENDITURE SUMMARY Operating Month
Energy Expense-Fuel $ 4.22 $ 37.05 $ 5.07 $ 37.05
Personnel Services 0.61 2.17 0.68 2.17
Materials&Supplies 0.19 1.70 0.28 1.70 F Key Trends
Maintenance&Repair 0.10 0.56 0.49 0.56
Insurance 0.96 2.24 0.49 2.24 For the first four months of FY 2022-23,the DEC produced 34,667 MWh more than the same time period
Operations 0.10 0.36 0.13 0.36 of FY 2021-22. This resulted in approximately$3.1 million more revenue and$885,000 more in total
Debt Service-Principal 2.71 8.68 2.85 8.68 expenditures than for the same time period last fiscal year.
DebtService-Interest 3.06 8.62 2.92 8.62
Interfund Transfers 0.10 0.09 0.03 0.09 The DEC Gross Margin as of January 31 was$6.36 million which is$3.33 million higher than budgeted
Transferto Capital Projects - 0.02 - 0.02 (Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
DEC EXPENDITURES $ 12.05 $ 61.49 $ 12.94 $ 61.49
At this point in the fiscal year,the FY 2022-23 year-end projections are equal to the FY 2022-23 budget.
DEC NET INCOME $ (3.61) $ (8.94) $ (1.41) $ (8.94)
Note:All dollarfigures presented in millions.