2022-073 DEC August 2022 YTD DashboardNovember 18, 2022 Report No. 2022-073
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
FY 2021-22 Denton Energy Center (DEC) YTD August 2022 Dashboard
BACKGROUND:
Attached is the August FY 2021-22 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 2021-22 through August 2022.
• A DEC financial summary showing August FY 2021-22 Actuals, FY 2021-22 Budget,
Actuals as of August 2022 and the FY 2021-22 end of year projections.
o As a result of higher gas prices and high temperatures, the FY 2021-22 year-end
projections have been updated to show a $11.8 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 The DEC ran 170,254 MWh more through August of FY 2021-22 compared to
FY 2020-21. However, due to Winter Storm Uri in February 2021, revenues
through August 2022 were approximately $80.0 million less and fuel costs were
$4.28 million less than for the same time period last fiscal year.
o The net income for the DEC through August equals $9.61 million.
o The DEC Gross Margin through August was $32.4 million which is $24.8 million
higher than budgeted for October through August. (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 - August 2022
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 August 2022 DashboardKey TrendsFor the first eleven months of FY 2021‐22, the DEC produced 170,254 MWh more than the same time period of FY 2020‐21. However, due to Winter Storm Uri in February 2021, revenues through August 2022 were approximately $80.0 million less and fuel costs were $4.28 million less than for the same time period last fiscal year. As a result of higher gas prices and high temperatures, the FY 2021‐22 year‐end estimate was updated. The current year‐end estimate compared to the original budget reflects a $39.9 million increase in revenue, an $11.8 million increase in fuel costs, and a $1.7 million increase in insurance. These updates result in a $25.3 million increase in DEC net income when compared to budget.The DEC Gross Margin as of August 31 was $32.4 million which is $24.8 million higher than budgeted for October through August. (Gross Margin = DEC Revenue – Fuel Cost – Variable Operating & Maintenance Cost).MonthRevenue MWh $/MWhOct‐21 $3,283,392 36,361 $90.30Nov‐21 $2,900,790 26,776 $108.34Dec‐21 $1,073,883 11,028 $97.37Jan‐22 $1,183,268 14,651 $80.77Feb‐22 $3,902,695 15,172 $257.23Mar‐22 $1,645,577 14,850 $110.81Apr‐22 $2,565,586 20,630 $124.36May‐22 $6,511,999 32,234 $202.02Jun‐22 $5,399,858 57,964 $93.16Jul‐22 $18,419,548 71,998 $255.84Aug‐22 $9,366,541 76,384 $122.62Total FY 2021‐22 $56,253,135 378,047 $148.80Generation & Gross RevenuesFY 2020‐21 FY 2021‐22 FY 2021‐22 FY 2021‐22ACTUALSBUDGET YTD ESTIMATEDEC REVENUE 136.10$ 21.29$ 56.25$ 61.20$ EXPENDITURE SUMMARYEnergy Expense ‐ Fuel 27.96$ 12.75$ 23.68$ 24.50$ Personnel Services 1.65 1.80 1.78 1.81 Materials & Supplies 0.19 1.70 0.81 2.89 Maintenance & Repair 0.35 0.56 0.62 0.56 Insurance 1.20 1.81 3.35 3.47 Operations 0.63 0.33 0.31 0.33 Debt Service ‐ Principal 7.19 8.26 7.56 8.26 Debt Service ‐ Interest 8.65 9.04 8.29 9.04 Interfund Transfers 0.22 0.26 0.24 0.27 Transfer to Capital Projects ‐ ‐ ‐ ‐ DEC EXPENDITURES 48.04$ 36.51$ 46.64$ 51.13$ DEC NET INCOME 88.06$ (15.22)$ 9.61$ 10.07$ Note: All dollar figures presented in millions.DescriptionEngine 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) 1.73 1.93 2.10 2.73 2.73 0.04 0.81 38,597.00 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 5.80% 2.07% 4.37% 3.92% 3.92% 2.96% 1.34%Annual to Date Plant Emissions per DEC Permit Limit 46.10% 15.40%27.60% 18.50% 18.50% 15.00% 5.50%* Over the past 12 months, the DEC engines ran 29% of the time. During the month of August, the DEC engines ran 61% of the time.**Operations Annual Limit accounts for Balance of Plant standard emissionsEmissionsAugust 2022Engines (1‐12)5,452 468 50 1 519