2020-063 May 2020 DEC DashboardDate: July 17, 2020 Report No. 2020-063
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2019-20 Denton Energy Center (DEC) YTD May 2020 Dashboard
BACKGROUND:
Attached is the May 2020 Dashboard for the Denton Energy Center. 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 May engine runtime hours,
starts, stops, monthly and annual emissions totals and limits.
DEC MWh Generation and Gross Revenue for FY 2019-20 through May 2020.
o The DEC ran 30,812 MWh less through May of FY 2019-20 compared to FY
2018-19. This resulted in $1.1 Million less in DEC Revenue.
A DEC financial summary showing May FY 2018-19 Actuals, FY 2019-20 Budget,
Actuals as of May 2020 and the FY2019-20 end of year projections.
o The FY 2019-20 year-end projections have been updated to show a $1.5 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 fewer hours through May, fuel cost was approximately $1.77
Million lower.
o The DEC Net Income through May was ($8.43) which is expected for the first
eight months of the fiscal year.
o The DEC Gross Margin through May was $5.2 Million which is $3.5 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 May 2020 Dashboard
Key Trends
For the first 8 months of FY 2019-20, the DEC produced 30,812 MWh less than the same period of FY 2018-19. This
resulted in approximately $1.1 Million less in revenues and $4.8 Million more in total expenses for the same time period.
This increase was due to the annual debt service payment increasing from $10 Million to $18 Million in FY 19-20. As of
May 31, 2020, expenditures exceed revenues by $8.43 Million which is expected for this period of the fiscal year. The FY
2019-20 Estimate includes a $1.5 Million reduction in fuel cost based on fewer estimated run hours, and a $420,000
reduction in Personnel Services is anticipated as a result of vacancies. The FY 2019-20 Estimate for Insurance has
increased by $580,218 as a result of an increase in the cost of DEC property insurance and the acquisition of outage
insurance.
Through May 2020 the DEC Gross Margin was $5.2 Million which is $3.5 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 each
month this fiscal year except December and January than anticipated.
Updates in the DEC Revenue and Energy Expenses for FY 2019-20 year-end projections show a $(7.48) 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 millions 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)1.33 1.27 0.86 0.57 0.57 0.01 0.11 4,167.00
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 4.48%1.35%1.79%0.82%0.82%0.78%0.18%
Annual to Date Plant Emissions per DEC Permit Limit 24.70%7.70%10.30%4.60%4.60%4.50%1.00%
* Over the past 12 months, the DEC engines ran 16% of the time. During the month of May, the DEC engines ran 9% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
May 2020
Engines (1-12)759 82 68 134 284
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
Mar-20 $1,561,657 18,209 $85.76
Apr-20 $889,878 8,765 $101.52
May-20 $502,279 8,125 $61.82
Total FY 2019-20 $7,192,761 81,907 $87.82
Generation & Gross Revenues
FY 2018-19 FY 2019-20 FY 2019-20 FY 2019-20
YTD ACTUALS **BUDGET YTD PROJECTION
DEC REVENUE* 8.31$ 25.07$ 7.19$ 25.07$
EXPENDITURE SUMMARY
Energy Expense - Fuel 3.25$ 12.48$ 1.87$ 11.00$
Personnel Services 0.91 2.22 1.25 1.80
Materials & Supplies 0.11 0.44 0.24 0.39
Maintenance & Repair 0.09 0.56 0.06 0.56
Insurance 0.01 0.50 0.51 1.08
Operations 0.12 0.48 0.14 0.38
Debt Service - Principal 2.99 7.47 4.96 7.47
Debt Service - Interest 3.37 9.80 6.56 9.80
Interfund Transfers 0.00 0.05 0.03 0.05
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 10.85$ 34.02$ 15.62$ 32.55$
-$ -$ -$ -$
DEC NET INCOME (2.54)$ (8.95)$ (8.43)$ (7.48)$
*Preliminary, Unaudited Figures** Represents same period (8 months) as FY 2019-20 YTD for comparison purposes. Total Net
Income for FY 2018-19 was $14.22 M.