PORT HURON, Mich., Jan. 4 /PRNewswire-FirstCall/ -- SEMCO ENERGY, Inc.
(NYSE: SEN) today announced that a proposed settlement of its SEMCO ENERGY GAS
COMPANY division base rate case was filed with the Michigan Public Service
Commission (MPSC) on December 29, 2006. All parties to the case agreed to the
proposed settlement. The proposed settlement is expected to be considered by
the MPSC on January 9, 2007.
Under the proposed settlement, revised base rates, which are intended to
recover the Company's non-gas costs of providing service, are estimated to
produce total annual revenues of approximately $90.5 million. This total
annual revenue figure includes an estimated increase in annual base rate
revenues of approximately $12.65 million based on adjusted 2005 test year
data. However, the Company expects that, based on the Company's current
projections for 2007 residential use per customer, the revised rates (if
approved and implemented) would result in an increase of approximately $10.55
million in annualized base rate revenue for the Company. The Company had
requested an $18.90 million base rate increase.
The Company's proposals to change the method for collecting certain
expenses and to fund customer conservation programs are not part of the
proposed settlement. The settlement does address, however, a continuing
decline in residential per customer consumption, by changing a key billing
element in the rates charged residential customers. As part of the proposed
settlement, the Company also has agreed not to file for Commission approval of
further base rate changes for MPSC Division customers until after January 1,
More detailed information on specific rate changes (if approved) will be
available after the MPSC acts on the proposed settlement.
SEMCO ENERGY, Inc. distributes natural gas to more than 400,000 customers
combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR
Natural Gas Company. It also owns and operates businesses involved in propane
distribution, intrastate pipelines and natural gas storage in various regions
of the United States.
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, success in defending claims against the
Company, and other risks detailed from time to time in the Company's
Securities and Exchange Commission filings.
SOURCE SEMCO ENERGY, Inc.
CONTACT: Analysts: Thomas Connelly, Assistant Treasurer & Director of
Investor Relations, +1-248-458-6163, or Media: Timothy Lubbers, Director of
Marketing & Corporate Communications, +1-810-887-4208, both of SEMCO ENERGY,
2905 01/04/2007 16:05 EST http://www.prnewswire.com