Denton Municipal Electric since Tuesday has spent $207 million to buy electricity, and officials now have to borrow the same amount to make the company whole in a crisis they didn’t create.
“This is a situation that no one could have predicted, obviously,” said David Gaines, an assistant city manager and Denton’s chief financial officer, in a virtual Denton City Council meeting Friday morning. “Our power expenses on a single day exceeded the expenses for the entirety of last year.”
DME is the city’s electricity provider.
“The immediate concern we have is what this means to our fund,” Gaines said after the meeting.
The DME budget is about $231.4 million.
“The $207 million we spent is for buying power off the grid,” he told the Denton Record-Chronicle later. “The immediate concern is that depleted our reserves. We had $100 million fund balance in the electric fund, but…
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