The natural gas infrastructure is scheduled for some upgrades, such as replacing aging gas mains, but this means that SEMCO Energy Gas consumers will be paying for it with a $19.9 million rate increase. Customers will see an increase of about 9.2%. The monthly customer charge will increase from $11.50 to $12.25 but some customers will get that fee credited if they qualify for a low-income assistance credit program. There will also be reductions in reconnection fees for customers who have had their gas shut off.
The rate increase and the associated concessions are all part of a negotiation with the Michigan Public Service Commission. SEMCO had requested a rate increase exceeding $38 million. The settlement is related to corporate tax cuts from the 2017 federal Tax Cuts and Jobs Act. As part of the agreement, SEMCO agreed not to seek another rate increase until 2023. Customers can expect to see a raise in their rates in the new year, but also a more reliable and upgraded natural gas infrastructure.
Reporting for WGRT, Kelsie Kaczperski.
