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2020-021 January 2020 DEC DashboardDate: 03/06/2020 Report No. 2020-021 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2019-20 Denton Energy Center (DEC) YTD January 2020 Dashboard BACKGROUND: Attached is the January 2020 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 (based on calendar year) displays the January engine runtime hours, starts, stops, monthly and annual emissions totals and limits.  DEC MWh Generation and Gross Revenue for FY 2019-20 through January 2020. o The DEC ran 19,455 MWh less through January of FY 2019-20 compared to FY 2018-19. This resulted in $1 Million less in DEC Revenue.  A DEC financial summary showing January FY 2018-19 Actuals, FY 2019-20 Budget, Actuals as of January 2020 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 fewer hours in the through January 2020, fuel cost was approximately $1 Million lower. o The DEC Net Income was ($3.91) which is expected for the 1st Quarter of the fiscal year. o The DEC Gross Margin was $2.6 Million which is $1.8 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 CONTACTS: Antonio Puente, Jr. CFO/DME General Manager (940) 349-8487 antonio.puente@cityofdenton.com Nick Vincent Assistant Director of Finance (940) 349-8063 nicholas.vincent@cityofdenton.com City of Denton, Texas FY 2019-20 Denton Energy Center YTD January 2020 Dashboard Key Trends For the first four months of FY 2019-20, the DEC produced 19,455 MWh less than the same period of FY 2018-19. This resulted in approximately $1 Million less in revenues and $2.8 Million more in total expenses for the same time period. This increase was due to the annual debt service payment increasing from $10 M to $18 M in FY 19-20. As of January 31, 2020, expenditures exceed revenues by $3.91 Million which is expected for this period of the fiscal year. Through January 2020 the DEC Gross Margin was $2.6 Million which is $1.8 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. Note: All dollar figures presented are in million of dollars. 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 Jan-20 $239,366 2,671 $89.62 Total FY 2019-20 $3,562,399 37,342 $95.40 Emissions (Calendar Year) January 2020 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) Engines (1-12)279 76 5 159 240 DEC Monthly Emissions Total (tons)1.19 1.19 0.69 0.34 0.34 0.01 0.04 1,361.00 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 4.01%1.28%1.43%0.48%0.48%0.53%0.07% Annual to Date Plant Emissions per DEC Permit Limit 4.00%1.30%1.40%0.50%0.50%0.60%0.10% *Operations Annual Limit accounts for Balance of Plant standard emissions 752 923 1,458 1,336 2,116 1,370 2,232 2,885 2,366 1,045 1,291 217 279 - 500 1,000 1,500 2,000 2,500 3,000 3,500 Run HoursOperating Month Plant Monthly Run Hour Comparison FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20 ACTUALS **BUDGET YTD PROJECTION DEC REVENUE* $ 4.56 $ 25.07 $ 3.56 $ 25.07 EXPENDITURE SUMMARY Energy Expense -Fuel $ 1.98 $ 12.48 $ 0.94 $ 12.48 Personal Services 0.52 2.22 0.58 2.22 Materials & Supplies 0.04 0.44 0.08 0.44 Maintenance & Repair 0.00 0.56 0.01 0.56 Insurance 0.00 0.50 0.01 0.50 Miscellaneous 0.00 --- Operations 0.07 0.48 0.07 0.48 Debt Service -Principal 1.19 7.47 2.45 7.47 Debt Service -Interest 0.84 9.80 3.31 9.80 Interfund Transfers -0.05 0.02 0.05 Transfer to Capital Projects -0.02 -0.02 DEC EXPENDITURES $ 4.64 $ 34.02 $ 7.47 $ 34.02 $ -$ -$ -$ - DEC NET INCOME $ (0.08)$ (8.95)$ (3.91)$ (8.95) *Preliminary, Unaudited Figures **Represents same period (4 months) as FY 2019-20 YTD for comparison purposes. Total Net Income for FY 2018-19 was $14.22 M.