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2020-012 DEC December 2019 DashboardDate: 02/07/2020 Report No. 2020-012 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2019-20 Denton Energy Center (DEC) YTD December 2019 Dashboard BACKGROUND: Attached is the 1st Quarter FY 2019-20 Dashboard for the Denton Energy Center. The dashboard is intended to give a snapshot of relevant DEC metrics. The dashboard highlights the following:  The Emission Chart displays the December engine runtime hours, starts, stops, monthly and annual emissions totals and limits.  DEC MWh Generation and Gross Revenue for FY 2019-20 through December 2019. o The DEC ran 12,462 MWh less in the 1st Quarter of FY 2019-20 compared to FY 2018-19. This resulted in $739,000 less in DEC Revenue.  A DEC financial summary showing 1st Quarter FY 2018-19 Actuals, FY 2019-20 Budget, 1st Quarter Actuals as of December 2019 and the FY2019-20 end of year projections. o The FY 2019-20 year-end projections are equal to the FY 2019-20 budget  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 less hours in the 1st Quarter, fuel cost was $805,000 lower. o The DEC Net Income was ($2.43) which is expected for the 1st Quarter of the fiscal year.. o The DEC Gross Margin was $2.4 Million which is $2.0 Million higher than budgeted due to higher DEC Revenue in October and November. (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 CONTACT: Nick Vincent Assistant Director of Finance (940) 349-8063 nicholas.vincent@cityofdenton.com Note: All dollar figures presented are in millions of dollars. City of Denton, Texas FY 2019-20 Denton Energy Center YTD December 2019 Dashboard Key Trends In the 1st Quarter of FY 2019-20 the DEC ran 12,462 MWh less than the 1st Quarter of FY 2018-19. This resulted in approximately $739,000 less in revenues and $805,000 less in fuel expenses. The DEC Net Income through December 31stis ($2.43) Million which is expected for the 1stQuarter of the fiscal year. The 1st Quarter DEC Gross Margin was $2.4 Million which is $2.0 Million higher than budgeted for the same period (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). This is due to higher revenue in October and November than anticipated. At this point in the fiscal year, FY 2019-20 year-end projections are equal to the FY 2019-20 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)1.23 1.19 0.75 0.33 0.33 0.01 0.03 1,103.00 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 4.14%1.27%1.55%0.48%0.48%0.55%0.05% Annual to Date Plant Emissions per DEC Permit Limit 64.80%19.90%32.20%17.30%17.30%15.40%4.30% *Operations Annual Limit accounts for Balance of Plant standard emissions Emissions December 2019 Engines (1-12)217 76 41 150 267 Generation & Gross Revenues 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 Total FY 2019-20 $3,323,034 34,671 $95.84 FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20 1ST QTR ACTUALS BUDGET 1ST QTR ACTUALS PROJECTION DEC REVENUE* $ 4.06 $ 25.07 $ 3.32 $ 25.07 EXPENDITURE SUMMARY Energy Expense -Fuel $ 1.68 $ 12.48 $ 0.87 $ 12.48 Personal Services 0.39 2.22 0.44 2.22 Materials & Supplies 0.01 0.44 0.05 0.44 Maintenance & Repair -0.56 -0.56 Insurance -0.50 -0.50 Miscellaneous ---- Operations 0.06 0.48 0.06 0.48 Debt Service -Principal 0.60 7.47 1.82 7.47 Debt Service -Interest -9.80 2.50 9.80 Interfund Transfers 0.03 0.05 0.01 0.05 Transfer to Capital Projects -0.02 -0.02 DEC EXPENDITURES $ 2.77 $ 34.02 $ 5.75 $ 34.02 DEC NET INCOME $ 1.29 $ (8.95)$ (2.43)$ (8.95) *Preliminary, Unaudited Figures 1,633 1,433 466 752 923 1,458 1,336 2,116 1,370 2,232 2,885 2,366 1,045 1,291 217 - 500 1,000 1,500 2,000 2,500 3,000 3,500 Run HoursOperating Month Plant Monthly Run Hour Comparison