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July 18, 2007 at 16:30 PM EDT
SEMCO ENERGY, Inc. Declares Quarterly Dividend on Preferred Stock

PORT HURON, Mich., JULY 18 /PRNewswire-FirstCall/ -- SEMCO ENERGY, Inc. (NYSE:SEN) today announced that the Company's Board of Directors has declared a regular quarterly dividend payable on the Company's 5% Series B Convertible Cumulative Preferred Stock. The dividend is payable on August 15, 2007, at a rate of $2.50 per share, to holders of the preferred stock of record on August 1, 2007.

SEMCO ENERGY, Inc. distributes natural gas to more than 400,000 customers combined in Michigan, as SEMCO ENERGY GAS COMPANY, and in Alaska, as ENSTAR Natural Gas Company. It also owns and operates businesses involved in propane distribution, intrastate pipelines and natural gas storage in various regions of the United States.

The following is a "Safe-Harbor" statement under the Private Securities Litigation Reform Act of 1995. This release contains forward-looking statements that involve risks and uncertainties. Statements that are not historic facts, including statements about the Company's outlook, beliefs, plans, goals and expectations, are forward-looking statements. Factors that may impact forward-looking statements include, but are not limited to, the effects of weather, the economic climate, competition, commodity prices, changing conditions in the capital markets, regulatory approval processes, success in obtaining new business, success in defending claims against the Company, inability to complete the acquisition of the Company by Cap Rock Holding Corporation and other risks detailed from time to time in the Company's Securities and Exchange Commission filings.

Source: SEMCO ENERGY, Inc.

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