Michigan regulators approve $33 million SEMCO Energy Gas rate increase settlement

HOUGHTON, Mich., Oct 15 — The Michigan Public Service Commission (MPSC) on Thursday approved a settlement agreement that grants SEMCO Energy Gas Co. a $33 million rate increase to keep updating aging pipelines and to fund other infrastructure investments, the commission said.

The approved amount is more than 46% below the $61,251,191 that SEMCO first sought, according to the commission. The utility serves about 300,000 customers in the Upper Peninsula and the southern Lower Peninsula. The commission said the rates will fund SEMCO's gas main replacement program from 2027 through 2031, which aims to replace 37 miles per year of at-risk vintage plastic and steel pipe.

The commission said a typical residential customer using 10 dekatherms of natural gas per month will see a monthly bill increase of $2.80, or 3.16%, from Jan 1, 2027, plus 19 cents from an infrastructure reliability surcharge. The settlement sets a 9.85% return on common equity, against the 10.75% the utility sought. All parties to the case signed it, including the Michigan Department of the Attorney General and MPSC staff.