Corporate Information
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SEMCO ENERGY GAS COMPANY Natural Gas Incident in Battle Creek Caused Some Property Damage and Only Two Cases of Smoke Inhalation

PORT HURON, Mich., June 16 /PRNewswire/ -- At about 2:30 p.m. on Tuesday, June 15, SEMCO ENERGY GAS COMPANY experienced a problem in part of its Battle Creek system.

The problem caused some residential pilot lights to increase. We believe that, as a result, 39 fires were reported to Battle Creek emergency personnel. Reportedly, two people were treated for smoke inhalation at the scene of the fires, and required no further medical assistance. No other personal injuries were reported.

So far, company officials have investigated 25 of the 39 fire claims. The 25 investigations have revealed that 14 homes had no damage; six homes had damage to their furnaces only; three homes had damage to their furnaces and water heaters and two homes were destroyed.

Customers have been advised to contact their insurance company to work with SEMCO ENERGY's claims representatives on damage repairs.

As a precaution, gas company personnel turned off gas supply to approximately 1,000 homes. Gas company crews are now restoring service to customers. Expectations are that all customers will have service restored within three days.

Our preliminary investigation has determined that the problem was caused by a combination of human error and an error in the map of a distribution line. The investigation, in cooperation with state fire marshals and the Michigan Public Service Commission, is continuing.

SEMCO ENERGY GAS COMPANY distributes regulated natural gas to more than 250,000 customers in Michigan. It is one of two subsidiaries of SEMCO ENERGY, Inc. (Nasdaq: SMGS). The diversified energy services and infrastructure company also owns SEMCO ENERGY VENTURES, which acquires and operates companies involved in gas engineering and quality assurance services, pipeline construction services, propane distribution, intrastate pipelines and natural gas storage.
CONTACT: David Allen of SEMCO ENERGY, 616-966-0404, ext. 204, or fax, 616-966-0419

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SEMCO Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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