Xcel Energy announced Tuesday the sale of its Michigan operations to two utilities. This would impact customers in Gogebic and Ontonagon Counties in the Western Upper Peninsula.
Xcel Energy’s Michigan natural gas operations are being sold to SEMCO ENERGY Gas Company and electric operations to Upper Peninsula Power Company (UPPCO).
The sale still needs to be approved by regulators.
In a press release announcing the sale, Xcel says it has 6,000 natural gas customers and 9,000 electric customers that would transition to the new companies. Both companies already operate in the U.P.
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,” Karl Hoesly, president of Xcel Energy–Wisconsin and Michigan, said in a statement. “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.”
Xcel says service will continue without interruption during the transition for customers. 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 taking place.
SEMCO ENERGY Gas Company is a natural gas utility serving over 325,000 customers across Michigan.
“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.”
Upper Peninsula Power Company is the Upper Peninsula’s largest electric utility, serving approximately 52,000 customers across 4,460 square miles.
“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 companies expect the transition to close in 2027. Xcel says customers do not need to take any action at this time.
