Denton Utility Management Proposes Updates to Renewable Resource Plan

The Denton Public Utilities Board convened on May 19, 2025, to discuss critical updates regarding the city's renewable energy initiatives and financial strategies. The meeting began with a motion to publish a notice of intent for $46.5 million in Certificates of Obligation (COs), which passed unanimously. This funding is aimed at supporting various necessary projects within the city's utilities framework.

Following the financial discussions, the board received management reports from Stephen Gade, the general manager of water utilities and street operations. He highlighted the ongoing legislative session and its potential impact on local utility operations, particularly concerning renewable energy resources.

A significant portion of the meeting was dedicated to a presentation by Tony Puente, the general manager of Denton Municipal Electric (DME), regarding updates to the Denton Renewable Resource Plan. Puente emphasized the importance of maintaining the city's renewable energy goals amidst evolving state and federal regulations. He noted that the current plan, adopted in 2018, requires clarification on how renewable energy credits (RECs) are accounted for, particularly as the city aims to preserve its renewable energy percentage goal.

Puente outlined the challenges faced in acquiring renewable resources, including the complexities of power purchase agreements and the need for a diversified energy portfolio. He reported that DME is currently evaluating proposals for up to 300 megawatts of solar, wind, and battery resources, which are crucial for meeting the city's energy demands.

The board discussed the implications of large energy loads on the utility's financial health, with Puente recommending a cautious approach to entering long-term contracts with large consumers. This strategy aims to mitigate risks associated with potential market fluctuations and the financial stability of large energy users.

In conclusion, the meeting underscored the board's commitment to advancing Denton's renewable energy goals while navigating the complexities of energy procurement and regulatory changes. The board plans to present its recommendations to the city council on June 3, 2025, ensuring that community feedback is incorporated into future energy strategies.