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A Tuesday press release by Minneapolis-based Xcel Energy announced that SEMCO Energy and UPPCO would be purchasing Xcel's natural gas and electric operations in Gogebic and Ontonagon counties.
If approved by regulators, Xcel Energy's 6,000 natural gas customers will be served by SEMCO, and 9,000 electric customers will be served by UPPCO.
Xcel Energy said the transaction is intended to place customers with utilities that are focused specifically on serving Michigan and the Upper Peninsula over the long term.
"We are committed to ensuring a smooth transition for our customers and employees," said Karl Hoesly, president of Xcel Energy-Wisconsin and Michigan. "Xcel Energy continues to invest heavily in Wisconsin and across its other territories, so this transaction will ensure the customers of the Upper Peninsula will also benefit from focused investments by SEMCO and UPPCO, as both bring deep regional experience providing safe and reliable service and are well equipped to meet customers' long‑term energy needs."
For customers, service will continue without interruption during the service, and Xcel said that there will be no immediate changes to billing, rates or customer service processes, and customers will be notified "well in advance" of any future changes.
"SEMCO, UPPCO and Xcel Energy will work together on a detailed transition plan designed to make the change as seamless and transparent as possible," said Xcel. "Communication will be timely and clear."
"This transaction represents a meaningful opportunity to strengthen energy service for communities across the Upper Peninsula," said Marc Simone, president of SEMCO ENERGY Gas Company. "By welcoming new natural gas customers into the SEMCO system, we are reinforcing our commitment to safe, reliable and affordable service, while continuing to invest in the long‑term resilience of Michigan's energy infrastructure."
"As a neighboring utility with deep roots in the Upper Peninsula, UPPCO is proud to expand our service to Xcel Energy's electric customers in Gogebic and Ontonagon counties," said Gradon Haehnel, president and CEO of Upper Peninsula Power Company. "We understand this region, and we are committed to delivering safe, dependable service backed by local experience."
The transition will happen gradually over time and only after required state and federal regulatory approvals are received. The companies expect the transaction to close in 2027.
Until then, Xcel says that customers should continue working with their current energy provider as they do today. Additional updates will be shared throughout the process.
Annie Lippert can be reached at 906-228-2500, ext. 550. Her email address is alippert@miningjournal.net.