October 12, 2006

The Michigan Public Service Commission (MPSC) today approved a settlement agreement that authorizes SEMCO Energy Gas Company to implement a gas cost recovery (GCR) plan and factors for the 12-month period of April 2006 through March 2007.

The Commission authorized the company to implement a base GCR factor of $9.50 per thousand cubic feet. SEMCO had originally filed for a base factor of $12.0545. The factor approved reflects the decline in U.S. natural gas prices.

In approving the GCR factor, the MPSC noted that if natural gas prices continue to fall, it expects the company to further reduce its GCR factor.

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

Case No. U-14718