Xcel Energy sells Michigan gas and electric operations to two buyers

Xcel Energy (NASDAQ: XEL) has agreed to sell its Michigan natural gas operations to SEMCO Energy Gas Company and its electric operations to Upper Peninsula Power Company (UPPCO), according to a press release from the companies.

The transaction, pending state and federal regulatory approvals, would transfer approximately 6,000 natural gas customers to SEMCO and 9,000 electric customers to UPPCO. The affected customers are located in Gogebic and Ontonagon counties in Michigan's Upper Peninsula.

The companies expect the transaction to close in 2027. Until approvals are received, customers will continue to be served by Xcel Energy with no immediate changes to billing, rates, or customer service processes.

Karl Hoesly, president of Xcel Energy–Wisconsin and Michigan, said the deal is intended to place customers with utilities focused on serving Michigan over the long term. "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," he said.

SEMCO currently serves more than 325,000 natural gas customers across Michigan. UPPCO is the Upper Peninsula's largest electric utility, serving approximately 52,000 customers across 4,460 square miles.

The three companies said they are working with regulators, community stakeholders, and employees on a transition plan. Customers will be notified in advance of any future changes.

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