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Michigan OKs 9% natural gas rate hike for SEMCO customers

The utility says it will use the nearly $20 million rate increase to replace gas mains and initiate an infrastructure reliability improvement program.
Natural gas burning on the kitchen gas stove, file photo.

LANSING, Mich. — Michigan regulators have approved a 9.2% natural gas rate increase for 300,000 customers of SEMCO Energy Gas.

The utility says it will use the nearly $20 million rate increase to replace gas mains and initiate an infrastructure reliability improvement program. SEMCO had sought a rate hike exceeding $38 million.

The Port Huron company delivers natural gas to customers in the southern half of the Lower Peninsula and in parts of the Upper Peninsula.

The Michigan Public Service Commission said a residential customer using an average amount of natural gas will pay $6.10 more per month. SEMCO will add a financial assistance program for low-income customers and will not seek another general rate increase before 2023.

Regulators say SEMCO last received a rate increase in 2011.

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