HomeMy WebLinkAbout2023-005 FY 21-22 Denton Energy Center (DEC) September 2022 DashboardDate: 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.ogden@cityofdenton.com
Nick Vincent
Interim-Finance Director
(940) 349-8063
nicholas.vincent@cityofdenton.com
City of Denton, Texas
FY 2021-22 Denton Energy Center
YTD September 2022 Dashboard
Key Trends
In 2021-22, the DEC produced 174,170 MWh more than the same time period of FY 2020-21. However,
due to Winter Storm Uri in February 2021 and the hot summer months of 2022, FY 2021-22 revenues
were approximately $78.9 million less and fuel costs were $3.4 million less last fiscal year.
The DEC Gross Margin as of September 30 was $33.41 million which is $25.10 million higher than
budgeted (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)1.67 1.58 1.77 1.66 1.66 0.03 0.44 19,451.00
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 5.61%1.69%3.68%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%6.20%
* Over the 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
Emissions
September 2022
Engines (1-12)2,
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
Jun-22 $5,399,858 57,964 $93.16
Jul-22 $18,419,548 71,998 $255.84
Aug-22 $9,366,541 76,384 $122.62
Sep-22 $3,691,782 40,345 $91.50
Total FY 2021-22 $59,944,917 418,392 $143.27
Generation & Gross Revenues
FY 2021-22
FY 2020-21 FY 2021-22 PRELIMINARY
ACTUALS BUDGET ACTUALS
DEC REVENUE 138.89$ 21.29$ 59.94$
EXPENDITURE SUMMARY
Energy Expense - Fuel 29.68$ 12.75$ 26.28$
Personnel Services 1.82 1.80 1.97
Materials & Supplies 0.27 1.70 1.01
Maintenance & Repair 0.38 0.56 0.91
Insurance 1.22 1.81 2.93
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.