Loading...
2021-026 DEC February 2021 DashboardDate: May 7, 2021 Report No. 2021-026 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2020-21 Denton Energy Center (DEC) YTD February 2021 Dashboard BACKGROUND: Attached is the February 2021 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 February engine runtime hours, starts, stops, monthly and annual emissions totals and limits.  DEC MWh Generation and Gross Revenue for FY 2020-21 through February 2021 o As a result of the winter storm Uri in February 2021, the DEC produced 46,763 MWh more through February 2021 compared to February 2020. This resulted in $118.6 million more in DEC Revenue.  A DEC financial summary showing February 2020-21 Actuals, FY 2020-21 Budget, Actuals as of February 2021 and the FY 2020-21 revised end-of-year projections. o The FY 2020-21 year-end projection has been increased by $29.1 million compared to the adopted budget; $28.8 million of the increase is for fuel.  The Plant Monthly Run Hour Comparison Graph illustrates the monthly plant run times.  The Key Trends section explains variances in revenues and expenses. o The DEC Net Income was $90.24 million through the end of February, which is, once again, a result of the ice storm. o The DEC Gross Margin was $98.7 Million which is $98.3 Million higher than budgeted due to the ice storm. (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: Cassandra Ogden Director of Finance (940) 349-7195 cassandra.ogden@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 February 2021 Dashboard Key Trends For the first 5 months of FY 2020-21, the DEC produced 46,763 MWh more than the same period of FY 2019-20. This resulted in approximately $118.6 million more in revenues and $23.3 million more in total expenses than the same time in the previous fiscal year. These increases are a result of the Winter storm Uri event in mid-February 2021. The DEC Gross Margin as of February 28 was $98.7 million which is $98.3 million higher than budgeted. (Gross Margin = DEC Revenue –Fuel Cost –Variable Operating & Maintenance Cost). As a result of the February storm, the DEC projected expenditures have been increased by $29.1 million. Fuel expenses account for $28.8 million of this increase. 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)1.55 1.61 1.37 1.41 1.41 0.02 0.37 15,388.00 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 5.22%1.72%2.85%2.02%2.02%1.61%0.60% Annual to Date Plant Emissions per DEC Permit Limit 10.60%3.40%5.50%3.20%3.20%2.70%0.80% * Over the past 12 months, the DEC engines ran 16% of the time. During the month of February, the DEC engines ran 31% of the time. **Operations Annual Limit accounts for Balance of Plant standard emissions Emissions February 2021 Engines (1-12)2,477 225 60 97 382 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 Jan-21 $565,793 8,622 $65.62 Feb-21 $118,076,297 32,026 $3,686.89 Total FY 2020-21 $122,876,146 93,571 $1,313.19 Generation & Gross Revenues FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21 ACTUALS*BUDGET YTD PROJECTION DEC REVENUE 4.24$ 24.55$ 122.88$ 137.16$ EXPENDITURE SUMMARY Energy Expense - Fuel 1.14$ 10.35$ 24.10$ 39.16$ Personnel Services 0.73 1.79 0.74 1.79 Materials & Supplies 0.13 1.72 0.03 1.72 Maintenance & Repair 0.01 0.56 0.03 0.56 Insurance 0.01 1.11 0.01 1.11 Operations 0.09 0.33 0.43 0.66 Debt Service - Principal 3.08 7.85 3.24 7.85 Debt Service - Interest 4.12 9.43 3.96 9.43 Interfund Transfers 0.02 0.24 0.10 0.24 Transfer to Capital Projects - 0.02 - 0.02 DEC EXPENDITURES 9.33$ 33.40$ 32.64$ 62.54$ DEC NET INCOME (5.09)$ (8.85)$ 90.24$ 74.62$ *Represents same period (5 months) as FY 2020-21 YTD for comparison purposes. Total Net Income for FY 2019-20 was ($11.98 million).