Ameren Illinois overhauls natural gas infrastructure

CHATHAM — A $400 million, decade-long upgrade of the Ameren Illinois natural gas distribution system rolls out this summer with replacement of 14,400 feet of aging steel gas line and 300 residential service lines on the east side of Chatham.

When completed, up to 350 miles of steel pipe in central and southern Illinois will be replaced with polyethylene pipe less prone to leaks. The 10-year plan also includes upgrades of 70 stations that regulate gas from interstate pipelines and installation of 468,000 “smart meters” that allow two-way communication between customers and Ameren.

In the process, according to the company, up to 80 full-time jobs will be added on the natural gas side to the overall workforce of 3,000 in central and southern Illinois.

“Some of that pipe is 40 to 50 years old,” said Ameren Illinois president and CEO Richard Mark. “These are just some of the first steps we’re taking.”

The company just completed replacement of 7,500 feet of pipe in two sections of Springfield.

“As we look to the future and the increase in demand for natural gas,” Mark said, “we want to make sure we have a strong robust system that meets the needs.”

Labor and business

The systemwide upgrade began with the Natural Gas Consumer, Safety and Reliability Act of 2013 in the Illinois General Assembly. A coalition of the state’s largest business and labor groups backed the legislation as a way to create jobs and improve energy efficiency.

Automation will allow for better detection and repair of leaks, Mark said, including remote-controlled valves that can be shut down quickly in the event of a problem.

“It’s really just bringing in the latest technology,” Mark said.

The flexible polyethylene pipe like that being installed in Chatham is at the core of the upgrades, he said.

“It comes in rolls that are several hundred feet long,” Mark said. “There are fewer connections, so that lessens the possibility of leaks.”

The high-impact plastic also is less prone to shifting as a result of freezing and thawing.

Paying the cost

As part of the 2013 legislation, Ameren Illinois is allowed to add the cost of upgrades to delivery charges for 807,000 natural gas customers. Similar provisions were included for updates to the electric grid. While Ameren Illinois and other utilities are allowed to pass along the cost of modernization on customer bills, the companies must file annual reports with the Illinois Commerce Commission justifying expenses, said Jim Chilsen of the Citizens Utility Board, a Chicago-based consumer advocacy group.

“They will need to show it is a prudent recovery of their costs,” Chilsen said.

As the Ameren Illinois upgrades have only just begun, the first report has not yet been filed, Chilsen said. He said neither has the company given an indication yet of how much consumers’ costs might increase the first year.

The company has estimated the upgrades would add only pennies a year to the typical customer bill, and Chilsen said the Citizens Utility Board would continue to monitor the charges.

Cast iron and leaks

At 40 to 50 years old, Ameren Illinois’ steel pipe is relatively new compared with pipe in other areas of the state, said Darin Burk, manager of pipeline safety for the ICC, which regulates utilities in the state.

Most of the cast iron is in Chicago. Ameren Illinois already replaced cast-iron pipe in the company service area.

“We have cast-iron pipe from the 1800s,” Burk said. “It was good pipe. It’s just reached its life expectancy.”

Peoples Gas in Chicago has begun replacing about 100 miles of cast iron, he said. The other major gas utilities — Nicor Gas in northern Illinois and MidAmerican Energy in the Quad Cities — also have begun pipeline upgrades.

Gas leaks are classified on a scale of 1 to 3, Burk said. A rating of 1 requires immediate repair. A rating of 2 is not hazardous but should be monitored, and a 3 is classified as a nonhazardous leak. Utilities also are required to file annual reports on leaks with the federal energy regulators.

The ICC reported 356 probable violations of natural gas safety procedures for all utilities in 2013, ranging from maintenance to reporting issues. Burk said nearly all are corrected short of fines. Civil penalties totaling $200,000 were levied in two cases last year.

“We notify them what needs to be corrected and to make sure it never happens again,” Burk said. He said fines typically are levied only in cases of damage or injuries resulting from leaks or explosions.

Ameren Illinois agreed to a $35,000 fine in March for failure to comply with federal leak-classification guidelines.

Burk said many of the violations in recent years have resulted from utility company failure to follow consumer-education rules on detecting and reporting gas leaks.

Fraction of the network

Ameren Illinois operates 1,250 miles of natural gas transmission lines and nearly 17,000 miles of distribution lines in a 43,700-square-mile territory.

Mark said the 300 to 350 miles of replacement pipe will be installed based on condition of the existing pipe and demand for service.

“We do a complete evaluation of our natural gas infrastructure,” he said. “We base it on whether there were leaks in the area in the past. Density and population also are factors if an area is growing faster.”

Mark said employment should continue to increase as the pace of improvement picks up for natural gas and electric networks.

“We’re adding three new classes for gas apprentices,” he said. “We are training them, and they will become full-time Ameren employees.

“This new technology is more efficient, and it’s better for the environment,” Mark said. “It’s really about updating an aging infrastructure.”

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Natural gas upgrade

Ameren Illinois plans to spend $400 million to upgrade the natural gas transmission system in central and southern Illinois over the next 10 years. Here are project highlights, including recent work in Chatham and Springfield:

* Replace 300 to 350 miles of coupled steel pipes with polyethylene pipe.

* Upgrade 70 stations that regulate flow of gas from interstate transmission lines.

* Replace 50 miles of steel pipe with upgraded steel.

* Replace 468,000 manual billing meters with “smart meters” that allow two-way communications between the customer and the company.

Chatham

* Replace 14,100 feet of gas line and 300 service lines on the east side of the community.

Springfield

* Recently replaced 1,500 feet of pipe and 55 service lines in the 1000 to 1200 blocks of Interlacken Drive and the 2400 block of Lynnhaven Drive. Upgraded 7,500 feet of steel line and 151 service lines between Chatham Road and Haverton Road.

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Excavation a major cause of serious gas leaks

Digging is a primary cause of serious natural gas leaks, and it doesn’t take a backhoe.

Nearly 40 percent of leaks that result in damage or injury are as a result of commercial and residential excavations, according to the Illinois Commerce Commission. A gas leak Monday that forced temporary evacuation of a two-block area in downtown Canton was thought to have resulted when a construct crew hit a line.

Gas lines on residential property are typically 12 to 18 inches deep, said Darin Burk, manager of the pipeline safety program for the ICC. Larger main lines are usually 18 inches to 2 feet deep.

“Even with a shovel, you could damage the coating,” Burk said. “You can get into gas lines when grinding stumps or planting a tree.”

Illinois is among states and federal jurisdictions in the 811 program, which allows homeowners and commercial excavators to check utility line placement before digging. State law requires calls at least 48 hours before the start of excavation. Work must begin within 14 days, and the notification is good for 28 days.

As of the middle of August, the ICC had levied $46,178 in fines for 129 violations of the notification requirement.

In addition to calling 811, utility line location requests can be submitted at illinois1call.com.