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2022-018 Denton Energy Center September 2021 YTD DashboardDate: March 25, 2022 Report No. 2022-018 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: FY 2020-21 Denton Energy Center (DEC) YTD September 2021 Dashboard BACKGROUND: Attached is the September 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 September engine runtime hours, starts, stops, monthly and annual emissions totals and limits. • DEC MWh Generation and Gross Revenue for FY 2020-21 through September 2021. o The DEC ran 90,329 MWh more through August of FY 2020-21 compared to FY 2019-20. This resulted in approximately $126.1 million more in DEC Revenue. • A DEC financial summary showing September FY 2019-20 Actuals, FY 2020-21 Budget and Actuals as of September 2021. • 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 September, the fuel cost was $26 million higher. o The net income for the DEC through September equals $87.3 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 September was $109.0 million which is $96.2 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 Chief Financial Officer (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 SEPTEMBER 2021 DashboardKey TrendsIn FY 2020‐21, the DEC produced 90,329 MWh more than in FY 2019‐20.  This resulted in approximately $126.1 million more in revenues and $26.8 million more in total expenses than in the prior fiscal year.  These increases are a result of the Winter Storm Uri event in mid‐February 2021.  The DEC Gross Margin as of September 30 was $109.0 million which is $96.2 million higher than budgeted.  (Gross Margin = DEC Revenue – Fuel Cost – Variable Operating & Maintenance Cost).MonthRevenue MWh $/MWhOct‐20 $2,739,241 31,581 $86.74Nov‐20 $1,037,719 14,117 $73.51Dec‐20 $457,097 7,225 $63.27Jan‐21 $565,793 8,622 $65.62Feb‐21 $118,076,297 32,026 $3,686.89Mar‐21 $545,993 5,143 $106.17Apr‐21 $3,441,543 18,842 $182.66May‐21 $921,026 8,653 $106.44Jun‐21 $2,904,459 24,204 $120.00Jul‐21 $3,192,506 30,246 $105.55Aug‐21 $2,220,479 27,134 $81.83Sep‐21 $2,783,814 36,429 $76.42Total FY 2020‐21 $138,885,965 244,222 $568.69Generation & Gross RevenuesDescriptionEngine Runtime (hours)*Hot StartsWarm StartsCold Starts StopsDescriptionNitrogen Oxides (NOx)Carbon Monoxide (CO)Volatile Organic Compound (VOC)Particulate Matter<10 microns (PM10)Particulate Matter<2.5 microns (PM2.5)Sulphur Dioxide (SO2)Ammonia (NH3)Carbon Dioxide Equivalents (CO2e)DEC Monthly Emissions Total (tons) 1.72             1.56             1.70             1.62             1.62             0.03             0.42             17,977.00   DEC Annual Permit Limit Operations (tons)** 29.78           93.52           48.16           69.72           69.72           1.45             60.90          Monthly Plant Emissions per DEC Permit Limit 5.77% 1.67% 3.54% 2.32% 2.32% 1.90% 0.68%Annual to Date Plant Emissions per DEC Permit Limit 47.00% 14.60%24.40% 14.10% 14.10% 12.10% 3.80%* Over the past 12 months, the DEC engines ran 19% of the time.  During the month of September, the DEC engines ran 32% of the time.**Operations Annual Limit accounts for Balance of Plant standard emissionsEmissionsSeptember 2021Engines (1‐12)2,735       215       252       27         494      FY 2020‐21FY 2019‐20 FY 2020‐21 YEAR END PRELIMINARYACTUALSBUDGET PROJECTION ACTUALSDEC REVENUE 12.76$         24.55$         137.16$        138.89$          EXPENDITURE SUMMARYEnergy Expense ‐ Fuel 3.60$            10.35$          39.16$           29.68$            Personnel Services 1.94              1.79              1.79               1.82                 Materials & Supplies 0.32              1.72              1.72               0.27                 Maintenance & Repair 0.21              0.56              0.56               0.38                 Insurance 1.11              1.11              1.11               1.22                 Operations  0.22              0.33              0.66               0.67                 Debt Service ‐ Principal 7.47              7.85              7.85               7.85                 Debt Service ‐ Interest 9.80              9.43              9.43               9.43                 Interfund Transfers 0.07              0.24              0.24               0.24                 Transfer to Capital Projects ‐                     0.02              0.02               ‐                       DEC EXPENDITURES 24.74$         33.40$         62.54$          51.56$            DEC NET INCOME (11.98)$        (8.85)$          74.62$          87.33$            Note:  All dollar figures presented in millions.