AMEREN SAYS GAS STORAGE HELPED HOLD DOWN WINTER PRICES

HILLSBORO — Ameren Illinois says its natural gas storage strategy helped limit price spikes for customers during one of the coldest stretches of the winter, even as demand surged and wholesale gas prices soared.

Ameren officials say natural gas prices were driven sharply higher during late January and early February as extreme cold increased demand across the region. Brad Kloeppel, senior director of natural gas operations and technical services for Ameren Illinois, said the utility was able to hold customer costs down largely because of gas purchased and stored months earlier at significantly lower prices.

Kloeppel pointed to the Hillsboro Storage Field, which can serve roughly 46,000 meters and withdraw up to 125 million cubic feet of natural gas per day. He said Ameren was able to buy gas during the summer months when prices ranged between $3 and $4 per thermal unit, compared to spot market prices that climbed as high as $70 per thermal unit during the height of the winter storms.

According to Ameren, price volatility gripped the energy sector from January 23 through February 2. During a six-day period within that stretch, nearly 2.5 billion cubic feet of natural gas was withdrawn from storage, accounting for more than 10 percent of the utility’s total gas inventory for the winter season. Ameren officials say the use of stored gas helped reduce the impact of extreme market fluctuations on customer bills.