PORT HURON, Mich., Nov. 29 /PRNewswire/ -- SEMCO ENERGY (NYSE: SEN)
reported today that The Regulatory Commission of Alaska has issued an order
finding that the studies filed in April of this year by SEMCO's ENSTAR Natural
Gas Division and its Alaska Pipeline Company affiliate generally complied with
applicable statutory and legal requirements. SEMCO acquired ENSTAR in
November 1999, and had been required to file revenue requirement and cost of
service studies by the Commission in its order approving the acquisition.
Noting that ENSTAR's rates had not been reviewed since 1986, the
Commission also determined that further examination of ENSTAR's revenue
requirements and cost of service studies is required to ensure that ENSTAR's
rates are just and reasonable. In its order the Commission stated that, if
changes in ENSTAR's existing rates are determined to be appropriate, such
changes would be applied on a prospective basis.
William L. Johnson, Chairman, President and Chief Executive Officer of
SEMCO ENERGY, Inc., stated, "We welcome the opportunity to work with the
Commission, respond to its questions and demonstrate that ENSTAR's rates are
fair to its customers and the Company's shareholders. In fact, ENSTAR's rates
currently are among the lowest in the country."
A pre-hearing conference to establish a procedural schedule and to address
disposition of the issues has been set for February 8, 2001.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to more than 350,000 customers combined in Michigan
and Alaska. It owns and operates businesses involved 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. In addition, it provides information technology and
outsourcing services, specializing in the mid-range computer market.
The following is a "Safe-harbor" statement under the Private Securities
Litigation Reform Act of 1995. This release contains forward-looking
statements that involve risks and uncertainties including, but not limited to,
statements involving the Company's expectations regarding operating revenues
and expenses, operating income, returns on invested assets, regulatory
approval processes, success in obtaining new business, success in integrating
acquired businesses, and other risks detailed from time to time in the
Company's Securities and Exchange Commission filings.
SOURCE SEMCO ENERGY, Inc.
Web site: http: //www.semcoenergy.com
CONTACT: Analysts: Sebastian Coppola, Senior Vice President & Chief Financial Officer, 810-989-4101, or Media: Francis R. Lieder, Manager of Corporate Communications & Media Relations, 810-987-2200, ext. 4186, or fax: 810-989-4098, both of SEMCO ENERGY, Inc.