By Savannah Kerstiens | Guest Commentary

When Winter Storm Fern swept across the country, it did more than bring snow and freezing temperatures. It put America’s electricity grid to the test, including here in Indiana, and highlighted the ongoing importance of fossil fuels, particularly coal.

When storms like Fern hit, grid operators have one overriding job: keep the power on. Heat, lighting, and basic safety depend on it.

During the week of the storm, coal-fired electricity generation rose 31% across 48 states, while natural gas generation increased 14% over the previous week. At the same time, electricity from solar, wind, and hydropower declined, according to the U.S. Energy Information Administration.

This is where coal proves its value. With fuel stored on site, coal plants can increase output when demand surges and other energy sources are constrained, including wind, solar, hydropower, and even natural gas. This pattern is not unique to Winter Storm Fern. It occurred during major cold snaps in February 2021 and again in January 2025.

Reliability, however, comes at a cost. Keeping the lights on during extreme weather often means higher electricity bills. As a result of Winter Storm Fern, Americans, including Hoosiers, should expect higher bills in the months ahead.

Those costs reflect how energy markets respond to extreme cold. When temperatures plunge, natural gas demand spikes because it is used to heat homes and generate electricity. Pipeline constraints, competition for heating fuel, and freeze-offs can restrict supply, pushing prices higher. Meanwhile, weather-dependent resources often cannot generate during winter storms. The resulting scarcity tightens capacity and drives up electricity prices.

Because natural gas often sets the market price, higher fuel costs quickly translate into higher wholesale power prices, even when power plants remain online. Utilities pay more, and those costs ultimately reach consumers.

Natural gas is essential to the modern grid. It provides flexible, generally low-cost power and plays a central role under normal conditions. But recent winter storms, beginning with Winter Storm Uri in 2021, have shown a critical truth: natural gas alone cannot carry the grid during extreme weather. When supplies are disrupted or prices spike, the grid relies on coal for reliable, around-the-clock electricity.

When coal dominated U.S. power generation, extreme winter price spikes were far less common. The grid relied less on weather-dependent fuels, reducing exposure to sudden shortages and volatility. Coal’s ability to operate continuously during peak demand also limits utilities’ need to purchase expensive spot-market power, helping protect consumers.

Winter Storm Fern made this clear. As renewable output declined and natural gas markets tightened, coal plants ramped up to meet demand. While this reliability did not eliminate higher prices entirely, it prevented even more severe spikes and helped keep the grid stable.

Natural gas will continue to play a key role in America’s energy future, but it needs coal to act as a stabilizer during periods of fuel scarcity. Nuclear generation, the only other dispatchable baseload resource capable of providing reliable electricity with onsite fuel and predictable costs, remains years away from making up a significant share of U.S. generation. Until then, existing coal generation will remain essential to maintaining reliability and affordability during extreme demand.

A recent long-term reliability assessment from the North American Electric Reliability Corporation, released just days after Fern, reinforces this concern. The report found that 13 of 23 regions face resource adequacy challenges over the next decade. Both of Indiana’s grid operators, MISO and PJM, were placed in the highest risk categories. NERC also warned that retiring fossil fuel plants, particularly those with fuel stored on site, weaken the grid’s ability to respond to demand spikes and increase the risk of winter power shortages.

That warning could not be more timely. Winter Storm Fern underscores a simple reality: a balanced energy mix, including coal, remains essential to ensure reliability and protect consumers from the worst impacts of extreme weather.

 

 

 Savannah Kerstiens is president of Reliable Energy, a trade association that advocates for energy policies.