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SEMCO ENERGY GAS COMPANY Customers Will Not See Increases In Natural Gas Prices in 2000

PORT HURON, Mich., Aug. 28 /PRNewswire/ -- SEMCO ENERGY GAS COMPANY today reminded customers that the gas company's 3-year freeze on natural gas prices shields them from projected increases in heating costs this year.

SEMCO ENERGY GAS COMPANY reduced gas prices by 6 percent in April 1999 and froze that price for three years, through March 31, 2002. As a result, SEMCO ENERGY customers will continue to pay $3.24 per thousand cubic feet for natural gas, one of the lowest rates in the state, regardless of price fluctuations in other markets. Customers should see increases in their heating bills only if they increase their natural gas consumption or through governmental action beyond the control of SEMCO ENERGY. SEMCO ENERGY GAS COMPANY also has an ample supply of natural gas to ensure continuous service throughout the heating season.

For suggestions on ways to make homes or natural gas furnaces more energy efficient, customers may visit the gas company web site at www.semcoenergygas.com , or call 800-624-2019.

SEMCO ENERGY (NYSE: SEN) distributes natural gas to more than 350,000 customers in Michigan and Alaska. It also owns and operates businesses involved in natural gas engineering and quality assurance services, pipeline construction services, propane distribution, intrastate pipelines and natural gas storage in various regions of the United States. In addition, it provides information technology and outsourcing services, specializing in the mid-range computer market.
SOURCE SEMCO ENERGY GAS COMPANY
Web site: http: //www.semcoenergy.com
CONTACT: Francis Lieder, Manager of Corporate Communications & Media Relations of SEMCO ENERGY GAS COMPANY, 810-987-2200, ext. 4186, fax, 810-989-4098, francis.lieder@semcoenergy.com

"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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