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SEMCO ENERGY's Southeastern Division Marks 50th Anniversary

PORT HURON, Mich., Jan. 31 /PRNewswire/ -- Fifty years ago tomorrow, founder Cecil A. Runyan consummated the acquisition of gas manufacturing and distribution property from Detroit Edison, and officially began operations as Southeastern Michigan Gas Company the following day. The following month, the company switched from distributing manufactured gas, produced by "baking" coal, to natural gas found in underground gas and oil deposits. That early history of excellence and innovation that Runyan began continues to this day as demonstrated by the Company's use of a fully automated meter reading system, which virtually eliminates estimated bills.

"Throughout years of growth, changes and challenges in our business and industry, our first priority has been to bring a safe, reliable and affordable source of energy to our customers," said Jon A. Kosht, President and Chief Executive Officer of SEMCO ENERGY GAS COMPANY. "But in addition to keeping homes warm and industries operating, we are dedicated to enhancing the quality of life in the communities we serve by supporting a variety of health, human services, cultural and educational programs. We look forward to continuing that philosophy for many more years to come. On behalf of all our employees, I thank our valued customers in the Blue Water and all other areas," he added.

The Company now serves approximately 145,000 customers in St. Clair and Sanilac counties and northern Macomb County.

The Albion Gas Light Company, now serving approximately 8,000 customers, was added through a merger in 1953. The Battle Creek Gas Company division, which serves approximately 36,000 customers, was added in 1985. The Michigan Gas Company division, which serves approximately 73,000 customers in the Holland area (45,000) and the Upper Peninsula (28,000), was acquired in 1987. All three companies were united under the brand name SEMCO ENERGY GAS COMPANY in 1997. ENSTAR Natural Gas Company, which serves 105,000 customers in Anchorage, Alaska, was acquired in 1999.

SEMCO ENERGY, Inc. (NYSE: SEN) is a diversified energy and infrastructure company that 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 interstate 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.
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CONTACT: Media: Francis R. Lieder, Jr. of SEMCO ENERGY, Inc., 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.

©2006 SEMCO ENERGY, Inc., All Rights Reserved.