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SEMCO ENERGY Announces Five Top-Level Organizational Changes

PORT HURON, Mich., Sept. 7 /PRNewswire/ -- SEMCO ENERGY, Inc. (Nasdaq: SMGS) today announced organizational changes designed to increase focus on corporate development activities, produce higher revenue growth from the diversified businesses and improve operational efficiencies from expanding businesses. Accelerated earnings growth is the ultimate goal.

"We have made an investment in experienced, skilled and talented people to help guide and grow the company more effectively," said William L. Johnson, Chairman and Chief Executive Officer. "By recognizing the strengths of our senior management team and deploying them to the best advantage, these appointments will be instrumental in achieving our ambitious goals. In addition, these appointments recognize the significant accomplishments of these individuals."

Carl W. Porter, becomes President & Chief Operating Officer of SEMCO ENERGY, Inc., the holding company. His responsibilities cover SEMCO ENERGY GAS COMPANY, the Michigan natural gas distribution business, and SEMCO ENERGY VENTURES. VENTURES is involved in energy infrastructure construction, energy engineering, quality assurance services, propane distribution and intrastate pipelines and natural gas storage, that operate in several states. Mr. Porter also will be responsible for ENSTAR Natural Gas Company and the Alaska Pipeline Company, both located in the Anchorage, Alaska region, once the announced acquisition of the two businesses is completed. Mr. Porter reports to William L. Johnson.

John E. Schneider, who has been serving as Senior Vice President of SEMCO ENERGY VENTURES, becomes Senior Vice President of the Corporate Development group. Schneider will be responsible for corporate acquisitions in both the natural gas distribution and diversified energy businesses. Mr. Schneider reports to William L. Johnson.

Jon A. Kosht, who has been serving as Vice President of Gas Supply, Rates and Regulatory Affairs of SEMCO ENERGY GAS COMPANY becomes President of that natural gas distribution business. Mr. Kosht reports to Mr. Porter.

Robert A. Stone, who was serving as Vice President of Marketing and Customer Service of SEMCO ENERGY GAS COMPANY, becomes President of SEMCO ENERGY VENTURES, and reports to Mr. Porter.

Ebrahim (Abby) Moradian, who has been serving as Director of Field Administration, becomes Vice President of Marketing of the natural gas distribution unit, SEMCO ENERGY GAS COMPANY. Mr. Moradian reports to Mr. Kosht.

SEMCO ENERGY, Inc., a diversified energy services and infrastructure company owns SEMCO ENERGY GAS COMPANY, which distributes natural gas to more than 250,000 residential, commercial and industrial customers in Michigan's Upper and Lower Peninsulas.

Diversified Businesses are owned and operated under 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 businesses in Iowa, Kansas, Louisiana, Nebraska, New Jersey, Tennessee, Texas and Wisconsin.
CONTACT: Media, Francis R. Lieder, 810-987-2200, ext. 4186, or fax, 810-989-4098, or Analysts, Edric R. Mason, Jr., 810-989-4104, or fax, 810-989-4098, both of SEMCO ENERGY

"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.

©2006 SEMCO ENERGY, Inc., All Rights Reserved.