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
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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SOURCE SEMCO ENERGY, Inc.