PORT HURON, Mich., Oct. 25 /PRNewswire/ -- SEMCO ENERGY, Inc.
(Nasdaq: SMGS) today announced that it has received an order from the
Regulatory Commission of Alaska (RCA) approving the joint application of SEMCO
ENERGY, Inc. (SEMCO ENERGY) and Ocean Energy, Inc. (Ocean) for the transfer of
the Certificate of Public Convenience and Necessity held by ENSTAR Natural Gas
Company (ENSTAR), and for a transfer of controlling interest in Alaska
Pipeline Company (APC). In each case the requested transfers were from Ocean
to SEMCO ENERGY.
William L. Johnson, Chairman and Chief Executive Officer said, "This is
wonderful news. Having obtained the final required approval from regulatory
authorities, we can now proceed with the closing of the acquisition of
ENSTAR/APC. The closing is anticipated to occur by November 1, 1999,
substantially ahead of schedule. The timing is important because it allows
SEMCO ENERGY to take ownership of the Anchorage-based company in the beginning
of the high revenue heating season."
SEMCO ENERGY signed a purchase agreement on July 15, 1999 with Ocean to
acquire ENSTAR/APC for approximately $290 million including $60 million in
debt. Ocean is an international oil exploration and development company based
in Houston, Texas.
Two regulatory approvals were required to complete the acquisition. The
consent from the RCA and a review by federal anti-trust authorities pursuant
to the Hart-Scott-Rodino Anti-Trust Improvement Act of 1996, which was
obtained September 2, 1999.
The order includes a number of customary conditions. SEMCO is directed to
adopt ENSTAR's existing rates on an interim basis and to file cost of service
information by July 1, 2000. Acquisition adjustment will not be allowed for
the purpose of setting rates unless the RCA determines a showing has been made
that would be in the public interest.
SEMCO ENERGY, a diversified energy services and infrastructure company,
owns SEMCO ENERGY GAS COMPANY and SEMCO ENERGY VENTURES. SEMCO ENERGY GAS
COMPANY distributes natural gas to over 250,000 customers in Michigan. SEMCO
ENERGY VENTURES acquires and operates businesses involved in gas engineering
and quality assurance services, pipeline construction services, propane
distribution, intrastate pipelines and natural gas storage businesses in
various regions of the United States.
SOURCE SEMCO ENERGY, Inc.
CONTACT: Analysts Contact, Edric R. Mason, Jr., 810-989-4104, or fax, 810-989-4098, or Media Contact, Francis R. Lieder, Jr., 810-987-2200 ext. 4186, or fax, 810-989-4098, both of SEMCO ENERGY