HomeMy WebLinkAbout2023-052 DEC DashboardAugust 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@cityofdenton.com
Aimee Kaslik
Interim Finance Director
(940) 349-7899
aimee.kaslik@cityofdenton.com
City of Denton, Texas
FY 2022-23 Denton Energy Center
YTD February 2023 Dashboard
Key Trends
For the first five months of FY 2022-23, the DEC produced 23,716 MWh more than the same time period
of FY 2021-22. This resulted in approximately $241,800 more revenue and $1.18 million more in total
expenditures than for the same time period last fiscal year. The increase in expenditures is a result of the
emergency replacement of two turbo chargers.
The DEC Gross Margin as of February 28 was $6.91 million which is $2.42 million higher than budgeted
(Gross 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.
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)1.51 1.56 1.21 0.91 0.91 0.02 0.20 8,689.00
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 5.08%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
Emissions
Febuary 2023
Engines (1-12)1,
Month Revenue MWh $/MWh
Oct-22 $2,959,594 30,531 $96.94
Nov-22 $2,430,599 30,729 $79.10
Dec-22 $4,822,176 29,708 $162.32
Jan-23 $1,316,478 17,864 $73.70
Feb-23 $1,057,014 18,872 $56.01
Total FY 2022-23 $12,585,860 127,703 $98.56
Generation & Gross Revenues
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE 12.34$ 52.55$ 12.59$ 52.55$
EXPENDITURE SUMMARY
Energy Expense - Fuel 5.02$ 37.05$ 5.56$ 37.05$
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
Insurance 1.08 2.24 0.49 2.24
Operations 0.14 0.36 0.16 0.36
Debt Service - Principal 3.40 8.68 3.58 8.68
Debt Service - Interest 3.80 8.62 3.63 8.62
Interfund Transfers 0.12 0.09 0.04 0.09
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 14.64$ 61.49$ 15.83$ 61.49$
DEC NET INCOME (2.30)$ (8.94)$ (3.24)$ (8.94)$
Note: All dollar figures presented in millions.
City of Denton, Texas
FY 2022-23 Denton Energy Center
YTD March 2023 Dashboard
Key Trends
For the first six months of FY 2022-23, the DEC produced 24,986 MWh more than the same time period of
FY 2021-22. This resulted in approximately $58,100 less revenue and $771.000 more in total expenditures
than for the same time period last fiscal year. The increase in expenditures is a result of the emergency
replacement of two turbo chargers.
The DEC Gross Margin as of March 31 was $7.83 million which is $2.72 million higher than budgeted
(Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost).
The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the latest
market forecasts. The Maintenance & Repair year-end projection has been updated to reflect the cost of
replacing the turbo chargers.
Month Revenue MWh $/MWh
Oct-22 $2,959,594 30,531 $96.94
Nov-22 $2,430,599 30,729 $79.10
Dec-22 $4,822,176 29,708 $162.32
Jan-23 $1,316,478 17,864 $73.70
Feb-23 $1,057,014 18,872 $56.01
Mar-23 $1,345,661 16,120 $83.48
Total FY 2022-23 $13,931,521 143,823 $96.87
Generation & Gross Revenues
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE 13.99$ 52.55$ 13.93$ 41.02$
EXPENDITURE SUMMARY
Energy Expense - Fuel 5.71$ 37.05$ 5.95$ 22.38$
Personnel Services 0.91 2.17 1.08 2.17
Materials & Supplies 0.31 1.70 0.51 1.70
Maintenance & Repair 0.16 0.56 1.10 1.48
Insurance 1.20 2.24 0.49 2.24
Operations 0.15 0.36 0.17 0.36
Debt Service - Principal 4.09 8.68 4.31 8.68
Debt Service - Interest 4.56 8.62 4.35 8.62
Interfund Transfers 0.14 0.09 0.04 0.09
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 17.23$ 61.49$ 18.00$ 47.74$
DEC NET INCOME (3.24)$ (8.94)$ (4.07)$ (6.72)$
Note: All dollar figures presented in millions.
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)1.95 1.92 1.45 1.17 1.17 0.02 0.26 8,120.00
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 6.54%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
Emissions
March 2023
Engines (1-12)1,
City of Denton, Texas
FY 2022-23 Denton Energy Center
YTD April 2023 Dashboard
Key Trends
For the first seven months of FY 2022-23, the DEC produced 11,462 MWh more than the same time period
of FY 2021-22. This resulted in approximately $2.1 million less revenue (due to lower market prices for
energy sold and lower cost of natural gas) and $469,200 less in total expenditures than for the same time
period last fiscal year. DEC fuel expenditures through April of this year were $786,000 less than in the
prior year which helped offset the cost incurred for the emergency replacement of two turbo chargers.
The DEC Gross Margin as of April 30 was $8.14 million which is $1.94 million higher than budgeted (Gross
Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost) despite lower revenue than
prior year.
The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the latest
market forecasts. The Maintenance & Repair year-end projection has been updated to reflect the cost of
replacing the turbo chargers.
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE 13.99$ 52.55$ 13.93$ 41.02$
EXPENDITURE SUMMARY
Energy Expense - Fuel 5.71$ 37.05$ 5.95$ 22.38$
Personnel Services 0.91 2.17 1.08 2.17
Materials & Supplies 0.31 1.70 0.51 1.70
Maintenance & Repair 0.16 0.56 1.10 1.48
Insurance 1.20 2.24 0.49 2.24
Operations 0.15 0.36 0.17 0.36
Debt Service - Principal 4.09 8.68 4.31 8.68
Debt Service - Interest 4.56 8.62 4.35 8.62
Interfund Transfers 0.14 0.09 0.04 0.09
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 17.23$ 61.49$ 18.00$ 47.74$
DEC NET INCOME (3.24)$ (8.94)$ (4.07)$ (6.72)$
Note: All dollar figures presented in millions.
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)1.50 1.49 1.12 0.68 0.68 0.01 0.11 4,131.00
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 5.05%1.59%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
Emissions
April 2023
Engines (1-12)
Month Revenue MWh $/MWh
Oct-22 $2,959,594 30,531 $96.94
Nov-22 $2,430,599 30,729 $79.10
Dec-22 $4,822,176 29,708 $162.32
Jan-23 $1,316,478 17,864 $73.70
Feb-23 $1,057,014 18,872 $56.01
Mar-23 $1,345,661 16,120 $83.48
Apr-23 $524,689 7,107 $73.83
Total FY 2022-23 $14,456,210 150,930 $95.78
Generation & Gross Revenues
City of Denton, Texas
FY 2022-23 Denton Energy Center
YTD May 2023 Dashboard
Key Trends
For the first eight months of FY 2022-23, the DEC produced 9,731 MWh more than the same time period of
FY 2021-22. This resulted in approximately $6.47 million less revenue (due to lower market prices for
energy sold and lower cost of natural gas) and $2.04 million less in total expenditures than for the same
time period last fiscal year. DEC fuel expenditures through May of this year were $2.50 million less than in
the prior year which helped offset the cost incurred for the emergency replacement of two turbo chargers.
The DEC Gross Margin as of May 31 was $9.57 million which is $2.87 million higher than budgeted (Gross
Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost) despite lower revenue than
prior year.
The FY 2022-23 year-end projection for DEC revenue and fuel costs have been updated based on the April
2024 market forecasts. The Maintenance & Repair year-end projection has been updated to reflect the
cost of replacing the turbo chargers.
Month Revenue MWh $/MWh
Oct-22 $2,959,594 30,531 $96.94
Nov-22 $2,430,599 30,729 $79.10
Dec-22 $4,822,176 29,708 $162.32
Jan-23 $1,316,478 17,864 $73.70
Feb-23 $1,057,014 18,872 $56.01
Mar-23 $1,345,661 16,120 $83.48
Apr-23 $524,689 7,107 $73.83
May-23 $2,144,247 30,502 $70.30
Total FY 2022-23 16,600,456.79$ 181,432 $91.50
Generation & Gross Revenues
FY 2021-22 FY 2022-23 FY 2022-23 FY 2022-23
YTD BUDGET YTD ESTIMATE
DEC REVENUE 23.07$ 52.55$ 16.60$ 41.02$
EXPENDITURE SUMMARY
Energy Expense - Fuel 9.34$ 37.05$ 6.84$ 22.38$
Personnel Services 1.29 2.17 1.41 2.17
Materials & Supplies 0.43 1.70 0.71 1.70
Maintenance & Repair 0.24 0.56 1.26 1.48
Insurance 1.99 2.24 1.13 2.24
Operations 0.22 0.36 0.23 0.36
Debt Service - Principal 5.48 8.68 5.77 8.68
Debt Service - Interest 6.05 8.62 5.77 8.62
Interfund Transfers 0.18 0.09 0.06 0.09
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 25.22$ 61.49$ 23.18$ 47.74$
DEC NET INCOME (2.15)$ (8.94)$ (6.58)$ (6.72)$
Note: All dollar figures presented in millions.
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)2.13 2.19 2.13 1.67 1.67 0.03 0.38 15,115.00
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 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
Emissions
May 2023
Engines (1-12)2,