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SEMCO ENERGY, Inc. Selects New Independent Auditor

FARMINGTON HILLS, Mich., May 31 /PRNewswire-FirstCall/ -- SEMCO ENERGY, Inc. (NYSE: SEN) today announced the selection of PricewaterhouseCoopers, LLP as the Company's independent auditor, replacing Arthur Andersen, LLP.

John E. Schneider, Chief Financial Officer of SEMCO ENERGY, said the decision to change auditing firms was based on concerns over Andersen's long-term viability.

"SEMCO ENERGY has been pleased with the services provided to the Company by the representatives of Arthur Andersen. However, because of the concerns with Andersen's future, the Company has selected PricewaterhouseCoopers as its independent auditor from among a number of qualified firms," he said.

Schneider said PricewaterhouseCoopers is one of the leading firms with expertise in auditing natural gas utilities, and has the highest standards of excellence and integrity.

SEMCO ENERGY, Inc. distributes natural gas to more than 367,000 customers combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR Natural Gas Company. It owns and operates businesses involved in natural gas 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.

Web site: http: //
CONTACT: Analysts Contact: Thomas Connelly, Director of Investor Relations, +1-248-702-6240, Fax: +1-248-702-6303, E-mail: , or Media Contact: Francis R. Lieder, Jr., Manager of Corporate Communications & Media Affairs, +1-810-987-2200, Ext. 4186, Fax: +1-810-989-4098, E-mail: , both of SEMCO ENERGY, Inc.

"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.