Denton Municipal Electric explores acquisition of 300MW power generation facility

The Denton City Council convened on June 17, 2025, to discuss critical energy generation strategies and the potential acquisition of a dispatchable generation facility. The meeting focused on exploring options for enhancing the city's energy reliability and addressing future demand.

The presentation began with a request for direction from the council regarding the exploration of acquiring an existing or proposed dispatchable generation facility. It was emphasized that this discussion was not about approving a purchase but rather about assessing potential candidates for future energy needs. The speaker highlighted recent changes in regulations from the Environmental Protection Agency (EPA) and the Department of Energy that could impact the feasibility of such acquisitions.

A significant portion of the discussion revolved around the Denton Municipal Electric (DME) commitment to customer service and reliability. The speaker recounted efforts made during extreme weather conditions, such as Winter Storm Uri, where proactive measures were taken to ensure that vulnerable customers, including those needing critical medical treatments, received uninterrupted power. The council was informed that DME had successfully managed to avoid any fatalities during the storm, attributing this success to effective power management strategies.

The presentation also detailed the current energy landscape, including the city's peak load demands and the existing shortfall in dispatchable power. With a peak load of 408 megawatts and only 225 megawatts of dispatchable power available, the city faces a projected shortfall of 183 megawatts, which could increase significantly in the coming years due to anticipated growth in energy demand.

The speaker outlined the challenges and costs associated with various energy sources, including natural gas, coal, and renewable energy. The discussion included the potential for battery storage solutions, which have been explored over the past six years but have not yet proven economically viable for DME. The council was informed that while battery technology is advancing, the costs associated with establishing a battery storage facility could be prohibitive compared to traditional generation facilities.

The council was presented with three options for moving forward: to explore opportunities for acquiring approximately 300 megawatts of generation, to consider a larger acquisition of 600 megawatts, or to wait for the completion of an integrated resource plan. The integrated resource plan aims to provide a comprehensive strategy for meeting the city's energy needs while balancing reliability and affordability.

As the meeting concluded, council members expressed their support for investigating the acquisition of additional generation capacity, emphasizing the importance of ensuring reliable energy for the community. The council's direction will guide DME in its efforts to secure the necessary resources to meet future energy demands while maintaining a commitment to customer service and environmental responsibility.