October 9, 2007

The Michigan Public Service Commission (MPSC) today approved settlement agreements authorizing Michigan Gas Utilities Corporation and SEMCO Energy Gas Company to implement their 2007-2008 gas cost recovery (GCR) factors.

In Case No. U-15040, the MPSC approved a settlement agreement authorizing Michigan Gas Utilities Corporation to implement a GCR factor of $9.0385 per thousand cubic feet (Mcf) for the period of April 2007 through March 2008. This is a decrease of 6 percent compared to last year's GCR factor.

The utility filed an application with the MPSC seeking approval of its 2007-2008 GCR plan and factors on December 28, 2006. Participants in the settlement were the utility, the MPSC staff, the Attorney General, and the Residential Ratepayer Consortium.

In Case No. U-15043, the MPSC approved a settlement agreement authorizing SEMCO Energy Gas Company to implement a GCR factor of $8.9170 per Mcf for its MPSC Division. This is a decrease of 6 percent compared to last year's GCR factor.

The utility filed an application with the MPSC seeking approval of its 2007-2008 GCR plan and factors on December 27, 2006. Participants in the settlement were the utility, the MPSC staff, the Attorney General and the Residential Ratepayer Consortium.

The GCR factor is the maximum amount utilities may charge customers. They may charge less than the maximum, and are expected to, if natural gas prices warrant.

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

Case Nos. U-15040 and U-15043