PORT HURON, Mich., Dec. 7 /PRNewswire/ -- On December 6, 1999, SEMCO
ENERGY GAS COMPANY received an order from the Michigan Public Service
Commission (MPSC), which approved a refund to customers of gas costs above
previously estimated levels. The total amount is approximately $2.1 million.
MPSC-approved gas purchasing plans forecast the volumes and costs of gas SEMCO
ENERGY GAS COMPANY expects to purchase in a 12-month period. The routine
reconciliation recognizes the actual cost of gas versus the projected cost
reflected on the customer's bill statement during the year. The Gas Cost
Recovery Plan affected by the December 6 order was for the period April 1,
1998 through March 31, 1999 and was filed in December 1997.
SEMCO ENERGY GAS COMPANY had anticipated the refund order, which has no
effect on earnings.
"This is a routine event that balances actual gas costs with the revenue
collected from our customers," said Jon A. Kosht, President and Chief
Operating Officer of SEMCO ENERGY GAS COMPANY.
The refund will occur by the issuance of a credit in the January 2000
billing month to current customers and a refund check to past customers. The
average residential heating customer will receive a one-time credit of
approximately $9.00. Individual customer credits will vary, based on actual
natural gas use during that period. Commercial and industrial customers, who
bought gas from SEMCO ENERGY GAS COMPANY, also will see a credit on their
January bills, based on actual use.
SEMCO ENERGY GAS COMPANY and ENSTAR Natural Gas Company are subsidiaries
of SEMCO ENERGY, Inc. (Nasdaq: SMGS) and are regulated natural gas
distribution companies with a combined total of more than 350,000 customers in
Michigan and Alaska. SEMCO ENERGY VENTURES, an unregulated division, acquires
and operates businesses in gas engineering and quality assurance services,
pipeline construction services, propane distribution, intrastate pipelines and
natural gas storage in various regions of the United States.
SOURCE SEMCO ENERGY GAS COMPANY
CONTACT: Analysts: Edric R. Mason, Jr., 810-989-4104, or Fax, 810-989-4098, or Media: Francis R. Lieder, Jr., 810-987-2200, ext. 4186, or Fax, 810-989-4098, both of SEMCO ENERGY GAS COMPANY