HomeMy WebLinkAbout2020-108 July, August, and September DEC DashboardDate: December 30, 2020 Report No. 2020-108
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2019-20 Denton Energy Center (DEC) YTD July, August, and September 2020 Dashboards.
BACKGROUND:
Attached are the July, August and September 2020 (Q4) Dashboards for the Denton Energy
Center. The dashboards are usually provided to City Council in a Friday Report at the end of
each month. The unseasonably cooler weather during the summer months resulted in lower usage
than previously forecast. Staff delayed providing the FY 2019-20 July, August, and September
dashboards due to year-end projections changing as a result of the summer weather and usage.
Staff is preparing to provide October, November, and December 2020 dashboards to Council in
January 2021.
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 July, August and September
engine runtime hours, starts, stops, monthly and annual emissions totals and limits.
DEC MWh Generation and Gross Revenue for FY 2019-20.
o The DEC ran 55,258 MWh less in FY 2019-20 compared to FY 2018-19. This
resulted in $24.7 Million less in DEC Revenue.
A DEC financial summary showing FY 2018-19 Actuals, FY 2019-20 Budget, the FY
2019-20 Estimate as of June 30, and the FY2019-20 Preliminary Actuals.
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 fewer hours in FY 2019-20, fuel cost was approximately $3.35
Million lower than in FY 2018-19.
o The DEC Net Income for FY 2019-20 was ($11.98) which is $26.2 Million less
than in FY 2018-19.
o The DEC Gross Margin for FY 2019-20 was $9.0 Million which is $21.3 Million
less than in FY 2018-19. This is a result of unseasonably cooler weather during
the summer months (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:
Antonio Puente, Jr.
Executive Manager of Utilities
(940) 349-8487
antonio.puente@cityofdenton.com
Date: December 30, 2020 Report No. 2020-108
Cassey Ogden
Director of Finance
(940) 349-7195
cassandra.ogden@cityofdenton.com
City of Denton, Texas
FY 2019-20 Denton Energy Center YTD July 2020 Dashboard
Key Trends
For the first 10 months of FY 2019-20, the DEC produced 50,530 MWh less than the same period of FY 2018-19.
This resulted in approximately $3.5 Million less in revenues and $2.7 Million more in total expenses for the same
time period. This increase was due to the annual debt service payment increasing from $10 Million to $18 Million
in FY 19-20. As of July 31, 2020, expenditures exceed revenues by $11.85 Million. The FY 2019-20 Estimate
includes a $1.5 Million reduction in fuel cost based on fewer estimated run hours, and a $420,000 reduction in
Personnel Services is anticipated as a result of vacancies. The FY 2019-20 Estimate for Insurance has increased by
$580,218 as a result of an increase in the cost of DEC property insurance and the acquisition of outage insurance.
Through July 2020 the DEC Gross Margin was $5.8 Million which is $277,300 higher than budgeted for the same
period (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). This is due to higher
revenue in each month this fiscal year except December, January, June and July than anticipated.
Updates in the DEC Revenue and Energy Expenses for FY 2019-20 year-end projections show a $(7.48) Million Net
Income compared to the $(8.95) Million Net Income shown in the FY 2019-20 budget.
Note: All dollar figures presented are in millions of dollars.
Month Revenue MWh $/MWh
Oct-19 $2,043,727 16,344 $125.04
Nov-19 $1,152,356 16,168 $71.27
Dec-19 $126,950 2,159 $58.80
Jan-20 $239,366 2,671 $89.62
Feb-20 $676,548 9,466 $71.47
Mar-20 $1,561,657 18,209 $85.76
Apr-20 $889,878 8,765 $101.52
May-20 $502,279 8,125 $61.82
Jun-20 $375,829 8,775 $42.83
Jul-20 $1,057,627 21,206 $49.87
Total FY 2019-20 $8,626,217 111,887 $77.10
Generation & Gross Revenues
Description
Engine
Runtime
(hours)*
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Matter<10
microns
(PM10)
Particulate
Matter<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxide
Equivalents
(CO2e)
DEC Monthly Emissions Total (tons)1.63 1.42 1.46 1.21 1.21 0.02 0.27 10,804.00
DEC Annual Permit Limit Operations (tons)**29.78 93.52 48.16 69.72 69.72 1.45 60.90
Monthly Plant Emissions per DEC Permit Limit 5.46%1.52%3.04%1.74%1.74%1.55%0.45%
Annual to Date Plant Emissions per DEC Permit Limit 34.80%10.60%15.80%7.40%7.40%7.20%1.60%
* Over the past 12 months, the DEC engines ran 15% of the time. During the month of June, the DEC engines ran 22% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
July 2020
Engines (1-12)1,969 163 233 52 448
FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20
YTD ACTUALS **BUDGET YTD PROJECTION
DEC REVENUE* 12.09$ 25.07$ 8.63$ 25.07$
EXPENDITURE SUMMARY
Energy Expense - Fuel 4.86$ 12.48$ 2.52$ 11.00$
Personnel Services 1.39 2.22 1.60 1.80
Materials & Supplies 0.14 0.44 0.30 0.39
Maintenance & Repair 0.10 0.56 0.13 0.56
Insurance 0.49 0.50 1.11 1.08
Operations 0.17 0.48 0.18 0.38
Debt Service - Principal 4.78 7.47 6.22 7.47
Debt Service - Interest 5.89 9.80 8.18 9.80
Interfund Transfers 0.00 0.05 0.06 0.05
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 17.82$ 34.02$ 20.30$ 32.55$
-$ -$ -$ -$
DEC NET INCOME (5.73)$ (8.95)$ (11.67)$ (7.48)$
*Preliminary, Unaudited Figures
** Represents same period (10 months) as FY 2019-20 YTD for comparison purposes. Total Net
Income for FY 2018-19 was $14.22 M.
City of Denton, Texas
FY 2019-20 Denton Energy Center YTD August 2020 Dashboard
Key Trends
For the first 11 months of FY 2019-20, the DEC produced 63,828 MWh less than the same period of FY 2018-19.
This resulted in approximately $19.8 Million less in revenues and $2.2 Million more in total expenses for the same
time period. This increase was due to the annual debt service payment increasing from $10 Million to $18 Million
in FY 19-20. As of August 31, 2020, expenditures exceed revenues by $8.95 Million. The FY 2019-20 Estimate
includes a $1.5 Million reduction in fuel cost based on fewer estimated run hours, and a $420,000 reduction in
Personnel Services is anticipated as a result of vacancies. The FY 2019-20 Estimate for Insurance has increased by
$580,218 as a result of an increase in the cost of DEC property insurance and the acquisition of outage insurance.
Through August 2020 the DEC Gross Margin was $8.50 Million which is $3.5 Million less than budgeted for the
same period (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). This is due to
unseasonably cooler weather in July and August. Updates in the DEC Revenue and Energy Expenses for FY 2019-
20 year-end projections show a $(7.48) Million Net Income compared to the $(8.95) Million Net Income shown in
the FY 2019-20 budget.
Note: All dollar figures presented are in millions of dollars.
Month Revenue MWh $/MWh
Oct-19 $2,043,727 16,344 $125.04
Nov-19 $1,152,356 16,168 $71.27
Dec-19 $126,950 2,159 $58.80
Jan-20 $239,366 2,671 $89.62
Feb-20 $676,548 9,466 $71.47
Mar-20 $1,561,657 18,209 $85.76
Apr-20 $889,878 8,765 $101.52
May-20 $502,279 8,125 $61.82
Jun-20 $375,829 8,775 $42.83
Jul-20 $1,057,627 21,206 $49.87
Aug-20 $3,364,955 33,435 $100.64
Total FY 2019-20 $11,991,172 145,322 $82.51
Generation & Gross Revenues
Description
Engine
Runtime
(hours)*
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Matter<10
microns
(PM10)
Particulate
Matter<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxide
Equivalents
(CO2e)
DEC Monthly Emissions Total (tons)1.97 1.74 1.79 1.56 1.56 0.03 0.36 16,522.00
DEC Annual Permit Limit Operations (tons)**29.78 93.52 48.16 69.72 69.72 1.45 60.90
Monthly Plant Emissions per DEC Permit Limit 6.61%1.87%3.71%2.23%2.23%1.92%0.60%
Annual to Date Plant Emissions per DEC Permit Limit 41.40%12.50%19.50%9.70%9.70%9.10%2.20%
* Over the past 12 months, the DEC engines ran 14% of the time. During the month of August, the DEC engines ran 29% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
August 2020
Engines (1-12)2,558 220 268 60 548
FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20
YTD ACTUALS **BUDGET YTD PROJECTION
DEC REVENUE* 31.80$ 25.07$ 11.99$ 25.07$
EXPENDITURE SUMMARY
Energy Expense - Fuel 6.00$ 12.48$ 3.34$ 11.00$
Personnel Services 1.52 2.22 1.75 1.80
Materials & Supplies 0.14 0.44 0.31 0.39
Maintenance & Repair 0.10 0.56 0.14 0.56
Insurance 0.49 0.50 1.11 1.08
Operations 0.19 0.48 0.19 0.38
Debt Service - Principal 5.38 7.47 6.85 7.47
Debt Service - Interest 6.74 9.80 8.99 9.80
Interfund Transfers 0.00 0.05 0.07 0.05
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 20.56$ 34.02$ 22.75$ 32.55$
-$
DEC NET INCOME 11.24$ (8.95)$ (10.76)$ (7.48)$
*Preliminary, Unaudited Figures
** Represents same period (11 months) as FY 2019-20 YTD for comparison purposes. Total Net
Income for FY 2018-19 was $14.22 M.
City of Denton, Texas
FY 2019-20 Denton Energy Center YTD September 2020 Dashboard
Key Trends
In FY 2019-20, the DEC produced 55,258 MWh less than in FY 2018-19. This resulted in approximately $24.7
Million less in revenues and $1.5 Million more in total expenses as compared to FY 2018-19. The decreased
revenue was due to the unseasonably warm weather in the summer months. As of September 30, 2020,
expenditures exceeded revenues by $12.0 Million. The FY 2019-20 Preliminary Actuals for fuel cost were
$3.4 Million less than in FY 2018-19 as a result of fewer run hours. The FY 2019-20 Preliminary Actuals for
Insurance were $625,000 higher than in FY 2018-19 as a result of an increase in the cost of DEC property
insurance and the acquisition of outage insurance. The debt service in FY 2019-20 was $3.7 Million more
than in FY 2018-19.
The DEC Gross Margin for FY 2019-20 was $9.0 Million which is $21.3 Million less than in FY 2018-19 (Gross
Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). Again, this is due to
unseasonably cooler weather in July and August. FY 2019-20 year-end preliminary actuals show $(11.98)
Million in Net Income compared to $14.22 Million in Net Income for FY 2018-19.
Note: All dollar figures presented are in millions of dollars.
Month Revenue MWh $/MWh
Oct-19 $2,043,727 16,344 $125.04
Nov-19 $1,152,356 16,168 $71.27
Dec-19 $126,950 2,159 $58.80
Jan-20 $239,366 2,671 $89.62
Feb-20 $676,548 9,466 $71.47
Mar-20 $1,561,657 18,209 $85.76
Apr-20 $889,878 8,765 $101.52
May-20 $502,279 8,125 $61.82
Jun-20 $375,829 8,775 $42.83
Jul-20 $1,057,627 21,206 $49.87
Aug-20 $3,364,955 33,435 $100.64
Sep-20 $771,456 8,570 $90.02
Total FY 2019-20 $12,762,627 153,892 $82.93
Generation & Gross Revenues
Description
Engine
Runtime
(hours)*
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Matter<10
microns
(PM10)
Particulate
Matter<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxide
Equivalents
(CO2e)
DEC Monthly Emissions Total (tons)1.36 1.26 1.08 0.75 0.75 0.02 0.14 4,613.00
DEC Annual Permit Limit Operations (tons)**29.78 93.52 48.16 69.72 69.72 1.45 60.90
Monthly Plant Emissions per DEC Permit Limit 4.56%1.34%2.23%1.07%1.07%1.04%0.23%
Annual to Date Plant Emissions per DEC Permit Limit 46.00%13.80%21.80%10.70%10.70%10.10%2.40%
* Over the past 12 months, the DEC engines ran 13% of the time. During the month of September, the DEC engines ran 13% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
September 2020
Engines (1-12)1,090 141 115 97 353
YEAR END FY 2019-20
FY 2018-19 FY 2019-20 ESTIMATE PRELIMINARY
ACTUALS BUDGET @ 6/30/20 ACTUALS
DEC REVENUE* 37.48$ 25.07$ 25.07$ 12.76$
EXPENDITURE SUMMARY
Energy Expense - Fuel 6.95$ 12.48$ 11.00$ 3.60$
Personnel Services 1.67 2.22 1.80 1.94
Materials & Supplies 0.16 0.44 0.39 0.32
Maintenance & Repair 0.11 0.56 0.56 0.21
Insurance 0.49 0.50 1.08 1.11
Operations 0.21 0.48 0.38 0.22
Debt Service - Principal 5.97 7.47 7.47 7.47
Debt Service - Interest 7.58 9.80 9.80 9.80
Interfund Transfers 0.12 0.05 0.05 0.07
Transfer to Capital Projects - 0.02 0.02 -
DEC EXPENDITURES 23.26$ 34.02$ 32.55$ 24.74$
-$
DEC NET INCOME 14.22$ (8.95)$ (7.48)$ (11.98)$
*Preliminary, Unaudited Figures