2021-085 DEC Dashboard August 2021Date: October 8, 2021 Report No. 2021-085
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2020-21 Denton Energy Center (DEC) YTD August 2021 Dashboard
BACKGROUND:
Attached is the August FY 2020-21 Dashboard for the Denton Energy Center. The dashboard is
intended to give a snapshot of relevant DEC metrics. The dashboards highlight the following:
The Emission Charts (based on calendar year) display the August engine runtime hours,
starts, stops, monthly and annual emissions totals and limits.
DEC MWh Generation and Gross Revenue for FY 2020-21 through August 2021.
o The DEC ran 62,470 MWh more through August of FY 2020-21 compared to FY
2019-20. This resulted in approximately $124.1 million more in DEC Revenue.
A DEC financial summary showing August FY 2019-20 Actuals, FY 2020-21 Budget,
Actuals as of August 2021 and the FY 2020-21 end of year projections.
o As a result of Winter Storm Uri, the FY 2020-21 year-end projections have been
updated to show a $28.8 million increase 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 more hours through August, the fuel cost was $24.6 million
higher.
o The net income for the DEC through August equals $88.0 million, which is a
direct result of Winter Storm Uri in February and higher run times than forecasted
during the months of October 2020, April 2021 and June 2021.
o The DEC Gross Margin through August was $108.0 million which is $95.2
million higher than budgeted also mainly due to Winter Storm Uri. (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:
Cassey 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 AUGUST 2021 Dashboard
Key Trends
For the first 11 months of FY 2020-21, the DEC produced 62,470 MWh more than the same period of
FY 2019-20. This resulted in approximately $124.1 million more in revenues and $25.3 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 August 31 was $108.0 million which is $95.2 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.
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)1.56 1.44 1.18 1.17 1.17 0.02 0.31 13,400.00
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 5.25%1.54%2.46%1.68%1.68%1.33%0.51%
Annual to Date Plant Emissions per DEC Permit Limit 41.20%13.00%20.90%11.80%11.80%10.10%3.10%
* Over the past 12 months, the DEC engines ran 18% of the time. During the month of August, the DEC engines ran 23% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
August 2021
Engines (1-12)2,021 92 160 85 337
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
Mar-21 $545,993 5,143 $106.17
Apr-21 $3,441,543 18,842 $182.66
May-21 $921,026 8,653 $106.44
Jun-21 $2,904,459 24,204 $120.00
Jul-21 $3,192,506 30,246 $105.55
Aug-21 $2,220,479 27,134 $81.83
Total FY 2020-21 $136,102,152 207,792 $654.99
Generation & Gross Revenues
FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21
ACTUALS*BUDGET YTD PROJECTION
DEC REVENUE 11.99$ 24.55$ 136.10$ 137.16$
EXPENDITURE SUMMARY
Energy Expense - Fuel 3.34$ 10.35$ 27.96$ 39.16$
Personnel Services 1.75 1.79 1.65 1.79
Materials & Supplies 0.31 1.72 0.19 1.72
Maintenance & Repair 0.14 0.56 0.35 0.56
Insurance 1.11 1.11 1.20 1.11
Operations 0.19 0.33 0.64 0.66
Debt Service - Principal 6.85 7.85 7.19 7.85
Debt Service - Interest 8.99 9.43 8.65 9.43
Interfund Transfers 0.07 0.24 0.22 0.24
Transfer to Capital Projects - 0.02 - 0.02
DEC EXPENDITURES 22.75$ 33.40$ 48.05$ 62.54$
DEC NET INCOME (10.76)$ (8.85)$ 88.05$ 74.62$
Note: All dollar figures presented in millions.
*Represents same period (11 months) as FY 2020-21 YTD for comparison purposes. Total Net
Income for FY 2019-20 was ($11.98 million).