Xcel Energy to sell Michigan gas, electric operations to SEMCO, UPPCO
Xcel Energy to sell Michigan gas, electric operations to SEMCO, UPPCO Oct 6 (Reuters) - Xcel Energy XEL.O said on Tuesday it has agreed to sell its Michigan natural gas operations to SEMCO ENERGY Gas Company and its electric operations to Upper Peninsula Power Company.
The transaction comes as utilities increasingly focus on core service territories and long-term infrastructure investments amid rising energy demand.
Here are more details:
Xcel's nearly 6,000 natural gas customers will be served by SEMCO, while about 9,000 electric customers will be served by UPPCO, subject to regulatory approvals
The customers are located in Gogebic and Ontonagon counties in Michigan's Upper Peninsula, Xcel said
The transaction is intended to place customers with utilities focused specifically on serving Michigan and the Upper Peninsula over the long term, Xcel added
The companies said there would be no immediate changes to billing, rates or customer service processes
SEMCO serves more than 325,000 natural gas customers across Michigan, while UPPCO is the Upper Peninsula's largest electric utility and serves about 52,000 customers
The companies expect the transaction to close in 2027
(Reporting by Varun Sahay in Bengaluru; Editing by Jonathan Ananda)
((Varun.Sahay@thomsonreuters.com;))