Michigan AG Reached Settlement Requiring Utility to Return Federal Tax Savings to Ratepayers

MAY 2, 2019

Michigan Attorney General Dana Nessel announced a settlement with SEMCO Energy Gas Company requiring the utility to return an additional $3.5 million in federal tax savings resulting from the 2017 Tax Cuts and Jobs Act to ratepayers, as required under Michigan law. SEMCO, which serves approximately 300,000 customers, initially estimated total savings of $48.4 million from the reduced federal tax rate. Attorney General Nessel’s office intervened, and with assistance from an independent expert determined that SEMCO’s federal tax savings totaled $51.9 million, which will be returned to customers through rate reductions.