10/06/2026

GOGEBIC & ONTONAGON COUNTIES - Xcel Energy, SEMCO ENERGY Gas Company (SEMCO) and Upper Peninsula Power Company (UPPCO) today announced the sale of Xcel Energy’s Michigan natural gas operations to SEMCO and electric operations to UPPCO. 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. Together, these customers in Gogebic and Ontonagon counties will transition to providers with deep local roots in the Upper Peninsula. According to the press release all three companies are working closely with regulators, community stakeholders and employees to ensure customers are handled with care during the transition. Xcel Energy says "The goal is simple: keep service reliable, make the transition smooth, and continue investing in the infrastructure that serves Upper Peninsula communities." For customers, service will continue without interruption during the transition. 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. The transition will happen gradually over time and only after required state and federal regulatory approvals are received. Customers do not need to take any action now and the companies will share updates as the regulatory process moves forward. The companies expect the transaction to close in 2027. Until then, customers should continue working with their current energy provider as they do today.

FULL PRESS RELEASE:

Xcel Energy (NASDAQ: XEL), SEMCO ENERGY Gas Company (SEMCO) and Upper Peninsula Power Company (UPPCO) today announced the sale of Xcel Energy’s Michigan natural gas operations to SEMCO and electric operations to UPPCO.

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. Together, these customers in Gogebic and Ontonagon counties will transition to providers with deep local roots in the Upper Peninsula.

All three companies are working closely with regulators, community stakeholders and employees to ensure customers are handled with care during the transition. The goal is simple: keep service reliable, make the transition smooth, and continue investing in the infrastructure that serves Upper Peninsula communities.

For customers, service will continue without interruption during the transition. 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, UPPCO and Xcel Energy will work together on a detailed transition plan designed to make the change as seamless and transparent as possible. Communication will be timely and clear.

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.”

“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.”

UPPCO said its long history in the region positions the company well to serve customers in the western Upper Peninsula. “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. Customers do not need to take any action now and the companies will share updates as the regulatory process moves forward. The companies expect the transaction to close in 2027.

Until then, customers should continue working with their current energy provider as they do today. Additional updates will be shared throughout the process.