2020-032 DEC February 2020 DashboardDate: April 19, 2020 Report No. 2020-032
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2019-20 Denton Energy Center (DEC) YTD February 2020 Dashboard
BACKGROUND:
Attached is the February 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 February engine runtime hours,
starts, stops, monthly and annual emissions totals and limits.
DEC MWh Generation and Gross Revenue for FY 2019-20 through February 2020.
o The DEC ran 21,499 MWh less through February of FY 2019-20 compared to FY
2018-19. This resulted in $1.1 Million less in DEC Revenue.
A DEC financial summary showing February FY 2018-19 Actuals, FY 2019-20 Budget,
Actuals as of February 2020 and the FY2019-20 end of year projections.
o The FY 2019-20 year-end projections have been updated to show a 13% increase
in MWh generation and $/MWh, resulting in a $7 Million increase in DEC
Revenue. Projected fuel cost are $510,000 lower than budgeted.
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 through February, fuel cost was approximately $1.2
Million lower.
o The DEC Net Income was ($5.08) which is expected for the first five months of
the fiscal year.
o The DEC Gross Margin was $3 Million which is $2.1 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 February 2020 Dashboard
Key Trends
For the first five months of FY 2019-20, the DEC produced 21,499 MWh less than the same period of FY 2018-19. This
resulted in approximately $1.1 Million less in revenues and $2.6 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 February 29,
2020, expenditures exceed revenues by $5.1 Million which is expected for this period of the fiscal year.
Through February 2020 the DEC Gross Margin was $3 Million which is $2.1 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.
Updates in the DEC Revenue and Energy Expenses improved the FY 2019-20 year-end projections to show a $(1.4) Million
Net Income compared to the $(8.95) Million Net Income shown in the FY 2019-20 budget..
Note: All dollar figures presented are in million of dollars.
Description
Engine
Runtime
(hours)
Hot
Starts
Warm
Starts
Cold
Starts Stops Description
Nitrogen
Oxides
(NOx)
Carbon
Monoxide
(CO)
Volatile
Organic
Compound
(VOC)
Particulate
Matter<10
microns
(PM10)
Particulate
Matter<2.5
microns
(PM2.5)
Sulphur
Dioxide
(SO2)
Ammonia
(NH3)
Carbon
Dioxide
Equivalents
(CO2e)
DEC Monthly Emissions Total (tons)1.83 1.81 1.36 0.79 0.79 0.02 0.13 4,696.00
DEC Annual Permit Limit Operations (tons)*29.78 93.52 48.16 69.72 69.72 1.45 60.90
Monthly Plant Emissions per DEC Permit Limit 6.15%1.94%2.83%1.14%1.14%1.15%0.21%
Annual to Date Plant Emissions per DEC Permit Limit 10.20%3.20%4.30%1.60%1.60%1.70%0.30%
*Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
February 2020
Engines (1-12)877 211 61 192 464
FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20
YTD ACTUALS **BUDGET YTD PROJECTION
DEC REVENUE* 5.36$ 25.07$ 4.24$ 32.09$
EXPENDITURE SUMMARY
Energy Expense - Fuel 2.32$ 12.48$ 1.14$ 11.97$
Personal Services 0.63 2.22 0.72 2.22
Materials & Supplies 0.10 0.44 0.13 0.44
Maintenance & Repair 0.04 0.56 0.01 0.56
Insurance 0.01 0.50 0.01 0.50
Miscellaneous ----
Operations 0.09 0.48 0.09 0.48
Debt Service - Principal 1.79 7.47 3.08 7.47
Debt Service - Interest 1.68 9.80 4.12 9.80
Interfund Transfers - 0.05 0.02 0.05
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 6.66$ 34.02$ 9.32$ 33.51$
-$ -$ -$ -$
DEC NET INCOME (1.30)$ (8.95)$ (5.08)$ (1.42)$
*Preliminary, Unaudited Figures
** Represents same period (5 months) as FY 2019-20 YTD for comparison purposes.
Total Net Income for FY 2018-19 was $14.22 M.
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
Total FY 2019-20 $4,238,947 46,808 $90.56
Generation & Gross Revenues