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PUB adopts 2025 DME Energy Risk Management Policy update ahead of CORE load additions
Summary
The board unanimously adopted amendments to the Denton Municipal Electric Energy Risk Management Policy to raise trader transaction limits and add definitions for tolling and structured transactions as the utility prepares for additional retail load (CORE) coming online.
The Public Utility Board unanimously adopted an updated DME energy risk management policy that raises transaction limits and clarifies transaction definitions as the utility prepares for additional retail load from CORE later this year.
Chris Lutrick, executive manager of operations with DME, presented the annual update and said the changes were driven by CORE’s expected load additions. “Our load is getting much larger; we needed to propose some new transaction limits for our traders all the way up through the general manager and the city manager,” Lutrick said. The update also removed an obsolete assistant general manager title and added definitions for tolling and structured transactions.
Lutrick described a tolling transaction as “basically a physical call option on a power plant that you do not own,” an arrangement DME does not currently use but may consider in the future. He said a structured transaction is “anything that’s out of the ordinary” relative to standard block transactions used by DME’s trading desk.
After brief discussion, a motion to adopt the 2025 Denton Municipal Electric Energy Risk Management Policy passed unanimously. The board received no additional direction beyond adoption; staff will implement the new transaction limits and include the housekeeping changes in the policy document.
