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2021-018 December 2020 DEC DashboardDate: March 26, 2021 Report No. 2021-018       INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2020-21 Denton Energy Center (DEC) YTD December 2020 Dashboard BACKGROUND: Attached is the 1st Quarter FY 2020-21 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 2020-21 through December 2020. o The DEC ran 18,252 MWh more in the 1st Quarter of FY 2020-21 compared to FY 2019-20. This resulted in $911,000 more in DEC Revenue.  A DEC financial summary showing 1st Quarter FY 2019-20 Actuals, FY 2020-21 Budget, 1st Quarter Actuals as of December 2020 and the FY 2020-21 end of year projections. o The FY 2020-21 year-end projections are equal to the FY 2020-21 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 Although running more hours in the 1st Quarter, fuel cost was $199,200 lower. o The DEC Net Income was ($1.32) which is expected for the 1st Quarter of the fiscal year. o The DEC Gross Margin was $3.6 Million which is $3.4 Million higher than budgeted due to higher DEC Revenue in October through December. (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 Executive Manager of Utilities (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 2020-21 Denton Energy Center YTD December 2020 Dashboard Key Trends For the first 3 months of FY 2020-21, the DEC produced 18,252 MWh more than the same period of FY 2019-20. This resulted in approximately $911,000 more in revenues and $199,200 less in total expenses than the same time in the previous fiscal year. The DEC Gross Margin as of December 31 was $3.6 Million which is $3.4 Million higher than budgeted. (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). At this point in the fiscal year, FY 2020-21 year-end projections are equal to the FY 2020-21 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)1.70 1.63 1.07 0.61 0.61 0.01 0.10 3,597.00 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 5.70%1.75%2.22%0.88%0.88%0.90%0.16% Annual to Date Plant Emissions per DEC Permit Limit 63.90%19.40%30.10%14.90%14.90%13.90%3.40% * Over the past 12 months, the DEC engines ran 14% of the time. During the month of December, the DEC engines ran 8% of the time. **Operations Annual Limit accounts for Balance of Plant standard emissions Emissions December 2020 Engines (1-12)670 104 65 191 360 Month Revenue MWh $/MWh Oct-20 $2,739,241 31,581 $86.74 Nov-20 $1,037,719 14,117 $73.51 Dec-20 $457,097 7,225 $63.27 Total FY 2020-21 $4,234,057 52,923 $80.00 Generation & Gross Revenues FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21 ACTUALS*BUDGET YTD PROJECTION DEC REVENUE* 3.32$ 24.55$ 4.23$ 24.55$ EXPENDITURE SUMMARY Energy Expense - Fuel 0.87$ 10.35$ 0.59$ 10.35$ Personnel Services 0.44 1.79 0.46 1.79 Materials & Supplies 0.05 1.72 0.02 1.72 Maintenance & Repair 0.00 0.56 0.01 0.56 Insurance 0.00 1.11 0.01 1.11 Operations 0.06 0.33 0.08 0.33 Debt Service - Principal 1.82 7.85 1.92 7.85 Debt Service - Interest 2.50 9.43 2.40 9.43 Interfund Transfers 0.01 0.24 0.06 0.24 Transfer to Capital Projects - 0.02 - 0.02 DEC EXPENDITURES 5.75$ 33.40$ 5.55$ 33.40$ -$ DEC NET INCOME (2.43)$ (8.85)$ (1.32)$ (8.85)$ *Preliminary, Unaudited Figures