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SEMCO ENERGY GAS COMPANY Prepared for Y2K Transition

PORT HURON, Mich., Dec. 29 /PRNewswire/ -- While the countdown moves closer toward the Year 2000, SEMCO ENERGY GAS COMPANY assures its customers that it has updated all systems used in the delivery of natural gas to their homes and businesses. Independent auditors have reviewed SEMCO ENERGY GAS COMPANY's plans for Y2K compliance.

The company's systems that help assure a safe supply of natural gas are ready for the new year. Electronic equipment used to line up gas supply and govern delivery has been reviewed and, where necessary, remediated or replaced and has manual operation capability as well. In addition, the company spent hundreds of hours on its contingency plan.

As an extra precaution, all company employees are on standby status beginning at 8 p.m. Dec. 31 until 8 a.m. Jan. 3 with key personnel on-site.

"We expect a quiet night but we will be there on New Year's Eve to respond to any unexpected occurrences," said Jon Kosht, President and Chief Operating Officer of SEMCO ENERGY GAS COMPANY. "Our objective is to make Jan. 1 just another day for employees and customers. Although we cannot make guarantees, our customers can be assured of the same quality service over the New Year's holiday that they expect every other day of the year."

SEMCO ENERGY GAS COMPANY and ENSTAR Natural Gas Company are divisions of SEMCO ENERGY, Inc., (Nasdaq: SMGS) a diversified energy and infrastructure company that distributes natural gas to more than 350,000 customers combined in Michigan and Alaska. SEMCO ENERGY VENTURES, its subsidiary, acquires and operates business 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: Francis R. Lieder, Jr. of SEMCO ENERGY GAS COMPANY, 810-987-2200, ext. 4186, or fax, 810-989-4098

"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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