• SEMCO, as well as all natural gas utilities in Michigan, is prevented from making money on the sale of natural gas.
  • SEMCO ENERGY Gas Company is regulated by the Michigan Public Service Commission and is specifically prevented from marking up or making any profit on the sale of natural gas. 
  • SEMCO files a plan every year that details how it intends to buy gas for customers and that plan is reviewed and approved by the MPSC, which sets a specific price for gas billed to customers that SEMCO is not allowed to exceed.
  • At the end of every year, SEMCO is required to file another plan reconciling how it bought gas for the previous year and what it collected from customers to ensure that SEMCO’s gas purchases were reasonable and prudent.
• Natural Gas prices can vary from month to month.
  • Natural gas is a commodity, and the price of natural gas goes up and down depending on supply and demand.
  • Several specific factors in the United States and abroad can affect natural gas prices including:
    • The weather  
    • Economic factors including industrial demand for natural gas
    • The use of natural gas for power production across the US
  • It is important to note that natural gas continues to be the most affordable residential energy source according to the Department of Energy.  Natural gas is approximately 1/3 as expensive for customers compared to electricity and approximately 1/2 as expensive compared to heating oil and propane.
• SEMCO buys gas from a variety of suppliers
  • SEMCO does work with a variety of natural gas suppliers across the United States to procure natural gas at the lowest cost available and to ensure that SEMCO’s customers have gas available during peak use periods.
• Supply Reliability
  • SEMCO does not expect any supply shortages or disruptions throughout its Michigan distribution system.  SEMCO’s distribution system is interconnected with a variety of interstate pipelines as well as other natural gas distribution companies.
  • SEMCO sources all its supply from the United States and Canada.  We do not anticipate that the events in the Ukraine and Russia will impact supply availability for our customers.

• The war in Ukraine
  • The war in Ukraine may affect energy prices in the long term but has not impacted prices for SEMCO customers yet.  The potential impact is not known at this time.
• Assistance
  • If you or someone you know may have difficulty with their natural gas bill this year, there are assistance programs available, and our Customer Service Team can help you determine which program may be most helpful for you.
  • SEMCO does offer customers a variety of tools to lower their energy costs through its Energy Waste Reduction (EWR) program.  SEMCO customers have access to rebates on high efficiency appliances, insulation, and programmable thermostats and SEMCO provides access to energy audit opportunities.  Please visit www.semcoewr.com for more information on resources available to you.