7 Major Changes Denton Municipal Electric (DME) Is Making Right Now (2025 Update)
Denton Municipal Electric (DME), the public power utility serving Denton, Texas, is currently undergoing a significant transformation driven by rapid city growth, ambitious sustainability goals, and critical infrastructure needs. As of December 19, 2025, residents and businesses need to be aware of several major changes impacting their electric bills, the city's energy grid, and its long-term commitment to renewable power. These updates—ranging from a massive 100-megawatt (MW) battery storage deal to a proposed utility rate hike—are foundational to securing Denton's energy future.
The utility's proactive steps are a direct response to Denton's status as one of the fastest-growing cities in Texas, necessitating substantial investment in both physical infrastructure and advanced energy technology. Whether you are a long-time resident, a new homeowner, or a local business owner, understanding DME's current projects and financial adjustments is crucial for managing your utility costs and appreciating the city's path toward 100% renewable energy.
The Green Revolution: DME’s Massive Renewable Energy & Storage Push
Denton Municipal Electric has long been a leader among Texas public power utilities, particularly in its commitment to renewable energy. The city’s 2018 plan outlined an aggressive goal to source 100% of its customer power from renewable resources, a target the utility continues to drive toward through major new contracts and incentive programs.
1. 100 Megawatts of Battery Energy Storage Secured
Perhaps the most significant recent development is the announcement of a new Power Purchase Agreement (PPA) with Jupiter Power, LLC. This landmark deal secures 100 MW of battery energy storage for DME's system, a critical step in stabilizing the grid and managing intermittent renewable sources like wind and solar.
- Project Name: The agreement is tied to the Jupiter Power II project, located in central Texas.
- Go-Live Date: The PPA is expected to be fully operational by October 2025.
- Impact: Battery storage allows DME to bank excess power generated during peak solar or wind production and discharge it during high-demand periods or when renewables are offline. This is essential for maintaining the reliability of a grid heavily reliant on green energy.
This investment underscores DME's focus on grid modernization and ensures that the utility can meet the city's sustainability goals while maintaining the high level of reliability expected by Denton customers. The partnership with Jupiter Power is a major entity in the energy storage sector, lending significant weight to DME's renewable efforts.
2. New Solar Buyback Rate for Residential Customers
In a move to further encourage residential solar adoption, DME announced a new Solar Buyback Rate that took effect in July 2025. This change is designed to provide a more competitive and transparent compensation structure for homeowners who generate excess electricity and feed it back into the DME grid.
The new rate is part of a broader package of sustainability initiatives and electric vehicle incentives supported by the Sustainability Framework Fund. This fund, established by the Denton City Council in 2021, directly supports projects that align with the city's environmental commitments, including EV charging infrastructure and energy efficiency programs.
Infrastructure Expansion and Financial Adjustments (What It Means for Your Bill)
The rapid and sustained population growth in Denton, TX, requires substantial capital investment in the physical infrastructure that delivers electricity. To fund these necessary upgrades and secure the city’s electric future, DME is pursuing both a major campus expansion and a corresponding adjustment to utility rates.
3. Proposed Electric Rate Increase for 2025
Due to the need for major capital projects and the continued growth of the service area, Denton Municipal Electric is seeking to raise rates in 2025. This proposed adjustment is intended to cover the costs associated with expanding the utility’s operational capacity and funding new infrastructure.
While specific final rates are subject to City Council approval, the need for a rate adjustment is tied directly to the city's rapid growth projection. Customers should closely monitor official communications from the City of Denton for details on the final approved utility rates for Fiscal Year (FY) 2025 and beyond.
4. Major Campus Expansion on Spencer Road
To accommodate its growing workforce and operational needs, DME is moving forward with a significant campus expansion. The Denton City Council has already taken steps to facilitate this by purchasing 9.2 acres of land for the expansion project.
The expansion is planned for the utility’s existing location on Spencer Road. This new facility will provide the necessary space for equipment, vehicle storage, and administrative offices, ensuring that DME can efficiently manage the electric needs of a much larger population in the coming decades. This investment is a key indicator of DME's long-term infrastructure planning.
5. Changes to Energy Cost Adjustment (ECA) Calculations
In an effort to stabilize monthly billing for customers, the Denton utility board has backed a proposal to change how the Energy Cost Adjustment (ECA) is calculated. The proposal aims to use a rolling 12-month forecast for energy costs, rather than shorter, more volatile periods.
This change is designed to "smooth out the variability" in the cost of purchased power, which often fluctuates wildly due to factors like natural gas prices, weather events, and market conditions on the ERCOT grid. By using a longer forecast period, DME hopes to reduce the sharp spikes and dips in the ECA portion of customer bills, leading to more predictable utility expenses throughout the year.
Key Entities and Strategic Partnerships Driving DME's Future
DME’s success in achieving its ambitious goals relies heavily on strategic partnerships and collaboration with various entities, both public and private. These relationships are essential for funding, technical expertise, and regulatory compliance.
6. The Role of the Texas Electric Cooperatives (TEC)
Denton Municipal Electric is an active member and participant in organizations like the Texas Electric Cooperatives (TEC). Involvement with TEC provides DME with access to shared industry knowledge, legislative advocacy, and collaborative resources, ensuring the utility remains current with state-wide best practices and regulatory changes.
The utility's leadership is often involved in these organizations, such as the mention of new members joining the TEC Board. This collaborative environment helps DME navigate the complexities of the Texas power grid and the unique challenges faced by public power providers.
7. Commitment to 100% Renewable Energy Target
While the goal was set in 2018, the current projects—especially the 100 MW battery storage PPA and the new Solar Buyback Rate—are direct, tangible steps toward achieving the 100% renewable target for DME's customers.
This aggressive target places Denton at the forefront of sustainable energy efforts in Texas. The utility’s strategy involves a mix of wind and solar PPAs, along with the newly acquired battery storage to manage the intermittency of those resources. The city’s commitment is also supported by the Denton Water Utilities and the Sustainability Framework Fund, demonstrating a coordinated municipal effort toward environmental stewardship.
List of Relevant Entities / Keywords (Topical Authority):
- Denton Municipal Electric (DME)
- Jupiter Power, LLC
- Power Purchase Agreement (PPA)
- 100 Megawatts (MW) Battery Storage
- Spencer Road Campus Expansion
- Solar Buyback Rate
- Energy Cost Adjustment (ECA)
- Denton City Council
- Texas Electric Cooperatives (TEC)
- Sustainability Framework Fund
- Electric Vehicle (EV) Incentives
- Rapid Growth Projection
- Grid Modernization
- 100% Renewable Target
- Utility Rates FY 2025
- Jupiter Power II project
- ERCOT (Electric Reliability Council of Texas)
- Denton Water Utilities
- Residential Solar Adoption
- Rolling 12-Month Forecast
- Public Power Utility
- Tony Fuente (General Manager, DME)
- Energy Efficiency Programs
- Utility Board
- Capital Projects
- Denton, TX
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