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SEMCO ENERGY Michigan Division Files Rate Case

PORT HURON, Mich., Nov. 21 /PRNewswire-FirstCall/ -- SEMCO ENERGY GAS COMPANY, a division of SEMCO ENERGY, Inc. (NYSE: SEN), has filed a rate case with the Michigan Public Service Commission (MPSC).

The filing seeks a rate increase of approximately $10.9 million. The typical customer would see an increase of $27.21 a year or less than $3 a month, not including gas charges.

The filing includes greater recovery of fixed costs in the monthly customer charge and declining block rates for sales customers. This is intended to provide more stability in customer bills by moving costs from the peak heating season to summer and off-peak heating months.

The filing also includes a change to the emerging industry norm of billing based on the heat content of natural gas, or Therms, rather than the current volumetric measure, cubic feet. Changes resulting from this rate case would likely be made in 2003.

"Our need for this increase has been created by expense increases in pensions, health care costs and the investment of approximately $120 million in new plant since the last rate case was filed," said Eugene Dubay, Senior Vice President and Chief Operating Officer of SEMCO ENERGY GAS COMPANY.

SEMCO ENERGY is a diversified energy and infrastructure company that distributes natural gas to more than 377,000 customers in Michigan and Alaska. It also owns and operates businesses involved in 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. Statements that are not historic facts, including statements about the Company's outlook, beliefs, plans, goals and expectations, are forward-looking statements. Factors that may impact forward-looking statements include, but are not limited to, the effects of weather, the economic climate, competition, commodity prices, changing conditions in the capital markets, regulatory approval processes, success in obtaining new business and other risks detailed from time to time in the company's Securities and Exchange Commission filings.

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"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.