2022-027 Denton Energy Center December 2021 DashboardDate: 05/13/2022 Report No. 2022-027
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2021-22 Denton Energy Center (DEC) YTD December 2021 Dashboard
BACKGROUND:
Attached is the 1st Quarter FY 2021-22 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 2021-22 through December 2022.
o The DEC ran 21,242 MWh more in the 1st Quarter of FY 2021-22 compared to
FY 2020-21. This resulted in $3 Million more in DEC Revenue.
• A DEC financial summary showing 1st Quarter FY 2020-21 Actuals, FY 2021-22 Budget,
1st Quarter Actuals as of December 2021 and the FY 2021-22 end of year projections.
o The FY 2021-22 year-end projections are equal to the FY 2021-22 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 Approximately $3.0 million more in revenues which was offset by $3.0 million in
higher fuel costs as compared to the prior fiscal year.
o The DEC Net Income was ($2.26 Million) which is expected for the 1st Quarter of
the fiscal year.
o The DEC Gross Margin was $3.6 Million which is $3.2 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:
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 2021-22 Denton Energy Center
YTD DECEMBER 2021 Dashboard
Key Trends
For the first three months of FY 2021-22, the DEC produced 21,242 MWh more than the same time
period of FY 2020-21. This resulted in approximately $3.0 million more in revenues which was offset
by $3.0 million in higher fuel costs as compared to the prior fiscal year.
The DEC Gross Margin as of December 31 was $3.6 million which is $3.2 million higher than budgeted.
(Gross Margin = DEC Revenue – Fuel Cost – Variable Operating & Maintenance Cost).
At this point in the fiscal year, the FY 2021-22 year-end projections are equal to the FY 2021-22
budget.
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) 1.44 1.47 1.21 0.91 0.91 0.02 0.19 12,789.00
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 4.85% 1.57% 2.51% 1.30% 1.30% 1.12% 0.31%
Annual to Date Plant Emissions per DEC Permit Limit 63.60% 19.90% 33.50% 19.60% 19.60% 16.60% 5.30%
* Over the past 12 months, the DEC engines ran 20% of the time. During the month of December, the DEC engines ran 14% of the time.
**Operations Annual Limit accounts for Balance of Plant standard emissions
Emissions
December 2021
Engines (1-12)1,218 2,351 1,238 1,292 4,881
Month Revenue MWh $/MWh
Oct-21 $3,283,392 36,361 $90.30
Nov-21 $2,900,790 26,776 $108.34
Dec-21 $1,073,883 11,028 $97.37
Total FY 2021-22 $7,258,064 74,165 $97.86
Generation & Gross Revenues
FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22
ACTUALS BUDGET YTD ESTIMATE
DEC REVENUE 4.23$ 21.29$ 7.26$ 21.29$
EXPENDITURE SUMMARY
Energy Expense - Fuel 0.59$ 12.75$ 3.59$ 12.75$
Personnel Services 0.46 1.80 0.45 1.80
Materials & Supplies 0.02 1.70 0.06 1.70
Maintenance & Repair 0.01 0.56 0.09 0.56
Insurance 0.01 1.81 0.84 1.81
Operations 0.08 0.33 0.09 0.33
Debt Service - Principal 1.92 8.26 2.01 8.26
Debt Service - Interest 2.40 9.04 2.31 9.04
Interfund Transfers 0.06 0.26 0.08 0.26
Transfer to Capital Projects - - - -
DEC EXPENDITURES 5.55$ 36.51$ 9.52$ 36.51$
DEC NET INCOME (1.32)$ (15.22)$ (2.26)$ (15.22)$
Note: All dollar figures presented in millions.