2023-052 DEC Dashboard August 11, 2023 Report No. 2023-052
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2022-23 Denton Energy Center(DEC) YTD Financials
BACKGROUND:
The FY 2022-23 DEC February, March, April, and May 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.
• The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.
• The Key Trends section explains variances in revenues and expenses.
ATTACHMENT(S):
Denton Energy Center(DEC) Dashboard—February 2023
Denton Energy Center(DEC) Dashboard—March 2023
Denton Energy Center(DEC) Dashboard—April 2023
Denton Energy Center(DEC) Dashboard—May 2023
STAFF CONTACTS:
Cassey Ogden
Chief Financial Officer
(940) 349-7195
cassandra.ogden(cb,cityofdenton.com
Aimee Kaslik
Interim Finance Director
(940) 349-7899
aimee.kaslik(a,cityofdenton.com
City of Denton, Texas
FY 2022-23 Denton Energy Center
DENTON YTD February 2023 Dashboard
Emissions
Febuary 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) I (VOC) (PMlo) (PM2.5) (S02) (NH3) (CO2e)
DEC Monthly Emissions Total(tons) 1.51 1.56 1.21 0.91 0.91 0.02 0.20 8,689.00
Engines(1-12) 1, 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 5.08% 1.67% 2.51% 1.30% 1.30% 1.17% 0.32%
Annual to Date Plant Emissions per DEC Permit Limit 11.80% 3.80% 5.50% 2.70% 2.70% 2.50% 0.70%
*Over the past 12 months,the DEC engines ran 30%of the time. During the month of February,the DEC engines ran 16%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 5O0°
Nov-22 $2,430,599 30,729 $79.10 3,904 3,972
a.000 -
0
Dec-22 $4,822,176 29,708 $162.32 3oao 2,808
Q 2,517 2,509 2,211 2,410
Jan-23 $1,316,478 17,864 $73.70 1,773
Feb-23 $1,057,014 18,872 $56.01 1,538 1,347 1,349 1,311
1,000
Total FY 2022-23 $12,585,860 127,703 $98.56
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE $ 12.34 $ 52.55 $ 12.59 $ 52.55 Operating Month
EXPENDITURE SUMMARY
Energy Expense-Fuel $ 5.02 $ 37.05 $ 5.56 $ 37.05 Key Trends
Personnel Services 0.76 2.17 0.84 2.17
Materials&Supplies 0.20 1.70 0.47 1.70
Maintenance&Repair 0.12 0.56 1.06 0.56 For the first five months of FY 2022 23,the DEC produced 23,716 MWh more than the same time period
Insurance 1.08 2.24 0.49 2.24 of FY 2021-22. This resulted in approximately$241,800 more revenue and$1.18 million more in total
Operations 0.14 0.36 0.16 0.36 expenditures than for the same time period last fiscal year.The increase in expenditures is a result of the
Debt Service-Principal 3.40 8.68 3.58 8.68 emergency replacement of two turbo chargers.
Debt Service-Interest 3.80 8.62 3.63 8.62
Interfund Transfers 0.12 0.09 0.04 0.09 The DEC Gross Margin as of February 28 was$6.91 million which is$2.42 million higher than budgeted
Transferto Capital Projects - 0.02 - 0.02 (Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
DEC EXPENDITURES $ 14.64 $ 61.49 $ 15.83 $ 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 $ (2.30) $ (8.94) $ (3.24) $ (8.94)
Note:All dollarfigures presented in millions.
City of Denton, Texas
FY 2022-23 Denton Energy Center
DENTON YTD March 2023 Dashboard
Emissions
March 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) I (VOC) (PM10) (PM2.5) (SO2) (NH3) (COZe)
DEC Monthly Emissions Total(tons) 1.95 1.92 1.45 1.17 1.17 0.02 0.26 8,120.00
Engines(1-12) 1, 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 6.54% 2.06% 3.02% 1.67% 1.67% 1.46% 0.43%
Annual to Date Plant Emissions per DEC Permit Limit 18.30% 5.90% 8.50% 4.40% 4.40% 3.90% 1.10%
*Over the past 12 months,the DEC engines ran 30%of the time. During the month of March,the DEC engines ran 20%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
Revenue 60�
Month MWh $/MWh 5,452
Oct-22 $2,959,594 30,531 $96.94 5O°°
Nov-22 $2,430,599 30,729 $79.10 i2 4.000 3,904 3,972
0
Dec-22 $4,822,176 29,708 $162.32 s.000 2,808
K 2,517 2,509 2,211 2,410
Jan-23 $1,316,478 17,864 $73.70 1,773
z.00c 1,781.
Feb-23 $1,057,014 18,872 $56.01 1,347 1,349 1,3u
Mar-23 $1,345,661 16,120 $83.48 1"00C
Total FY 2022-23 $13,931,521 143,823 $96.87
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FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23 �� °gP `J °� oL` �o�
YTD BUDGET YTD ESTIMATE Operating Month
DEC REVENUE $ 13.99 $ 52.55 $ 13.93 $ 41.02
EXPENDITURE SUMMARY Key Trends
Energy Expense-Fuel $ 5.71 $ 37.05 $ 5.95 $ 22.38
Personnel Services 0.91 2.17 1.08 2.17 For the first six months of FY 2022-23,the DEC produced 24,986 MWh more than the same time period of
Materials&Supplies 0.31 1.70 0.51 1.70 FY 2021-22. This resulted in approximately$58,100less revenue and$771.000 more in total expenditures
Maintenance&Repair 0.16 0.56 1.10 1.48 than for the same time period last fiscal year.The increase in expenditures is a result of the emergency
Insurance 1.20 2.24 0.49 2.24
replacement of two turbo chargers.
Operations 0.15 0.36 0.17 0.36
Debt Service-Principal 4.09 8.68 4.31 8.68 The DEC Gross Margin as of March 31 was$7.83 million which is$2.72 million higher than budgeted
Debt Service-Interest 4.56 8.62 4.35 8.62 (Gross Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost).
Interfund Transfers 0.14 0.09 0.04 0.09
Transferto Capital Projects - 0.02 - 0.02 The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the latest
DEC EXPENDITURES $ 17.23 $ 61.49 $ 18.00 $ 47.74 market forecasts.The Maintenance&Repair year-end projection has been updated to reflect the cost of
DEC NET INCOME $ (3.24) $ (8.94) $ (4.07) $ (6.72) replacing the turbo chargers.
Note:All dollarfigures presented in millions.
City of Denton, Texas
`aF FY 2022-23 Denton Energy Center
DEN'TON YTD April 2023 Dashboard
Emissions
April 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) (PMlo) (PMZ.$) (SO2) (NH3) (COZe)
DEC Monthly Emissions Total(tons) 1.50 1.49 1.12 0.68 0.68 0.01 0.11 4,131.00
Engines(1-12) 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 5.05% 1.599/, 2.32% 0.98% 0.98% 0.96% 0.19%
Annual to Date Plant Emissions per DEC Permit Limit 23.40% 7.50% 10.80% 5.40% 5.40% 4.90% 1.30%
*Over the past 12 months,the DEC engines ran 30%of the time. During the month of April,the DEC engines ran 9%of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Generation&Gross Revenues Plant Monthly Run Hour Comparison
Revenue e'er
Month MWh $/MWh 5,452
Oct-22 $2,959,594 30,531 $96.94 s'000
3,904 3,972
Nov-22 $2,430,599 30,729 $79.10 a.000
0
Dec-22 $4,822,176 29,708 $162.32 s.000 BOB
2,517 2.509 2,211 2,410
Jan-23 $1,316,478 17,864 $73.70 1,773 1781
z.000
Feb-23 $1,057,014 18,872 $56.01 1.349 1,311
Mar-23 $1,345,661 16,120 $83.48 A
Apr-23 $524,689 7,107 $73.83
Total FY 2022-23 $14,456,210 150,930 $95.78 P P 5 0 o F
Operating Month
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE $ 13.99 $ 52.55 $ 13.93 $ 41.02 Key Trends
EXPENDITURE SUMMARY
Energy Expense-Fuel $ 5.71 $ 37.05 $ 5.95 $ 22.38 For the first seven months of FY 2022-23,the DEC produced 11,462 MWh more than the same time period
Personnel Services 0.91 2.17 1.08 2.17 of FY 2021-22. This resulted in approximately$2.1 million less revenue(due to lower market prices for
Materials&Supplies 0.31 1.70 0.51 1.70 energy sold and lower cost of natural gas)and$469,200less in total expenditures than for the same time
Maintenance&Repair 0.16 0.56 1.10 1.48 period last fiscal year.DEC fuel expenditures through April of this year were$786,000less than in the
Ins ura nce 1.20 2.24 0.49 2.24 prior year which helped offset the cost incurred for the emergency replacement of two turbo chargers.
Operations 0.15 0.36 0.17 0.36
Debt Service-Principal 4.09 8.68 4.31 8.68 The DEC Gross Margin as of April 30 was$8.14 million which is$1.94 million higher than budgeted (Gross
Debt Service-Interest 4.56 8.62 4.35 8.62 Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost)despite lower revenue than
Interfund Transfers 0.14 0.09 0.04 0.09 prior year.
Tra nsfer to Ca pita I Projects - 0.02 - 0.02
DEC EXPENDITURES $ 17.23 $ 61.49 $ 18.00 $ 47.74 The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the latest
DEC NET INCOME $ (3.24) $ (8.94) $ (4.07) $ (6,72) market forecasts.The Maintenance&Repair year-end projection has been updated to reflect the cost of
Note:All dollarfigures presented in millions. replacing the turbo chargers.
City of Denton, Texas
FY 2022-23 Denton Energy Center
DEN'TON YTD May 2023 Dashboard
Emissions
May 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) (PMlo) (PMZ.$) (S02) (NH3) (CO2e)
DEC Monthly Emissions Total(tons) 2.13 2.19 2.13 1.67 1.67 0.03 0.38 15,115.00
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 7.15% 2.34% 4.43% 2.39% 2.39% 2.13% 0.62%
Annual to Date Plant Emissions per DEC Permit Limit 30.50% 9.80% 15.30% 7.80% 7.80% 7.00% 1.90%
*Over the past 12 months,the DEC engines ran 29%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
Generation&Gross Revenues
Plant Monthly Run Hour Comparison
Month Revenue MWh $/MWh 6-
5,452
Oct-22 $2,959,594 30,531 $96.94 sago
Nov-22 $2,430,599 30,729 $79.10 3,904 3,972
a.cx
Dec-22 $4,822,176 29,708 $162.32 0
= 2.sos
Jan-23 $1,316,478 17,864 $73.70 '" x z v 2so9 2,410 2,500
oc 2,z11
Feb-23 $1,057,014 18,872 $56.01 Z.000 17s1
1.349 1,311
Mar-23 $1,345,661 16,120 $83.48
1,000
Apr-23 $524,689 7,107 $73.83
May-23 $2,144,247 30,502 $70.30
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Total FY 2022-23 $ 16,600,456.79 181,432 $91.50
Operating Month
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE $ 23.07 $ 52.55 $ 16.60 $ 41.02Trends
EXPENDITURE SUMMARY
Energy Expense-Fuel $ 9.34 $ 37.05 $ 6.84 $ 22.38 For the first eight months of FY 2022-23,the DEC produced 9,731 MWh more than the same time period of
Personnel Services 1.29 2.17 1.41 2.17 FY 2021-22. This resulted in approximately$6.47 million less revenue(due to lower market prices for
Materials&Supplies 0.43 1.70 0.71 1.70 energy sold and lower cost of natural gas)and$2.04 million less in total expenditures than for the same
Maintenance&Repair 0.24 0.56 1.26 1.48 time period last fiscal year.DEC fuel expenditures through May of this year were$2.50 million less than in
Insurance 1.99 2.24 1.13 2.24 the prior year which helped offset the cost incurred for the emergency replacement of two turbo chargers.
Operations 0.22 0.36 0.23 0.36
Debt Service-Principal 5.48 8.68 5.77 8.68 The DEC Gross Margin as of May 31 was$9.57 million which is$2.87 million higher than budgeted (Gross
Debt Service-Interest 6.05 8.62 5.77 8.62 Margin=DEC Revenue-Fuel Cost-Variable Operating&Maintenance Cost)despite lower revenue than
Interfund Transfers 0.18 0.09 0.06 0.09
Transferto Capital Projects - 0.02 - 0.02 prior year.
DEC EXPENDITURES $ 25.22 $ 61.49 $ 23.18 $ 47.74 The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the April
DEC NET INCOME $ (2.15) $ (8.94) $ (6.58) $ (6.72) 2024 market forecasts.The Maintenance&Repair year-end projection has been updated to reflect the
Note:All dollarfigures presented in millions. Cost of replacing the turbo chargers.