Midwestern winters are always challenging, but when a winter storm blew through Ameren Illinois’ service area in January 2024, those challenges brought the potential for real danger. For four days, temperatures averaged negative 9 degrees, and drifting snow in the utility’s northern service territory contributed to hazardous field operations.
However, according to officials, the utility not only experienced no safety incidents during the storm, but it continued to provide customers uninterrupted service despite the cold and increased demand.
“Our entire organization worked in sync to prevent any significant service interruptions,” said Ameren Illinois President Lenny Singh. “There were no major issues that impacted our system, even as temperatures plunged into negative digits.”
Delivering that kind of reliability when customers need it most is a result of a diversified natural gas portfolio, gas storage capabilities and a strategy of purchasing gas during the summer months when it is less expensive. The company reports the strategy saved customers approximately $22 million because the utility was able to limit the purchase of natural gas on the open market when prices spiked during the cold spell. Additionally, reservoir engineers tightly managed the withdrawal strategy to ensure adequate inventories to meet peak day loads throughout the utility’s geographically diverse 44,000 square miles of service territory.
To prepare for such an event, various teams conduct prewinter meetings and drills to confirm they’re ready for all possibilities, from supply cuts by producers to reduced delivery from interstate pipelines to restrictions in their own system.
Experience also plays a role in their preparedness. After a massive winter storm in 2021, the utility increased the amount of gas it secures at a known price for the winter from about 75% of the normal winter demand to about 90%, using a combination of storage gas and financial hedges. It also invested in the natural gas infrastructure to support customer usage.
“Having this type of always-available, dispatchable energy takes on even greater significance in winter conditions like these and as we build toward a low-carbon future,” Singh said. “Using our extensive natural gas system to deliver new forms of energy such as hydrogen and renewable natural gas is a critical component of our ability to reach ambitious greenhouse gas reduction goals.”