MPSC Approves Settlement Agreement on Proposed Transaction for Semco Holding Corporation Acquisition by AltaGas Ltd.

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

May 24, 2012 - The Michigan Public Service Commission (MPSC) today approved a settlement agreement dealing with a proposed transaction for the acquisition of SEMCO Holding Corporation by AltaGas Ltd.

Under the terms of the settlement, control of SEMCO Energy Gas Company, SEMCO Pipeline Company and SEMCO Gas Storage Company are to be transferred from Continental Energy Systems LLC to AltaGas Ltd. and AltaGas Utility Holdings LLC, subject to the conditions agreed to in the settlement.

The Commission found the settlement reasonable and in the public interest, provided the proposed transaction: will not have an adverse effect on the rates of the customers affected by the acquisition; will not have an adverse effect on the provision of safe, reliable, and adequate energy service in this state; will not result in the subsidization of a non-regulated activity through the rates paid by the customers of the affected jurisdictional regulated utilities; and will not significantly impair the resulting jurisdictional regulated utilities' ability to raise necessary capital or to maintain a reasonable capital structure, and provided that the applicants abide by the conditions recommended by the Staff.

Continental Energy Systems LLC, Semco Holding Corporation, SEMCO Energy, Inc., SEMCO Pipeline Company, SEMCO Gas Storage Company, AltaGas Ltd., AltaGas Utility Holdings LLC and the MPSC staff participated in the settlement.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

Case No. U-16969

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