September 20, 2005

The Michigan Public Service Commission (MPSC) today approved a settlement agreement that rolls $646,295 of Peninsular Gas Company’s under-recovery from 2004 into SEMCO Energy Gas Company’s current 2005 gas cost recovery (GCR) costs.  SEMCO purchased Peninsular Gas on June 1.

Peninsular Gas under-recovered the above amount from its GCR revenues and expenses for the 12-month period ended Dec. 31, 2004.  The amount includes the under-recovered amount from the prior GCR reconciliation in Case No. U-13551-R, interest, and supplier refunds during its 2004 GCR plan year.

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-13901-R