SEMCO Does Not Profit from Natural Gas Sales
SEMCO ENERGY Gas Company, like all natural gas utilities in Michigan, is regulated by the Michigan Public Service Commission (MPSC) and is prohibited from marking up or making any profit on the sale of natural gas.
- Each year, SEMCO submits a detailed plan outlining how it will purchase gas for customers.
- The MPSC reviews and approves this plan and sets a specific price for gas that SEMCO cannot exceed.
- At year-end, SEMCO files a reconciliation report to ensure gas purchases were reasonable and that customer charges align with actual costs.
Why Natural Gas Prices Change
Natural gas is a commodity, and its price fluctuates based on supply and demand. Factors that influence pricing include:
- Weather conditions
- Economic activity, including industrial demand
- Power generation needs across the U.S.
Despite these fluctuations, natural gas remains the most affordable residential energy source according to the U.S. Department of Energy:
- About ⅓ the cost of electricity
- About ½ the cost of heating oil or propane
How SEMCO Secures Supply
SEMCO works with multiple suppliers across the U.S. to:
- Purchase natural gas at the lowest available cost
- Ensure reliable supply during peak usage periods
Our distribution system is interconnected with interstate pipelines and other utilities, and all supply comes from the U.S. and Canada. We do not anticipate supply shortages or disruptions.
Global Events and Pricing
The war in Ukraine may affect global energy prices over time, but it has not impacted SEMCO customer pricing to date. Future impacts remain uncertain.
Need Help with Your Bill?
If you or someone you know is struggling to pay a natural gas bill, assistance programs are available. Our Customer Service team can help you find the right program.
SEMCO also offers tools to reduce energy costs through our Energy Waste Reduction (EWR) Program, including:
- Rebates on high-efficiency appliances, insulation, and programmable thermostats
- Energy audit opportunities
Learn more at https://www.semcoenergygas.com/residential-savings/.