AnInformational Booklet

ForResidential Customers

This booklet is provided to residential

customers in accordance with the rules of

the Michigan Public Service Commission.

SEMCOENERGYG A S C O M P A N Y

SEMCOENERGYG A S C O M P A N Y

Natural Gas Works for Michigan

Congratulations on choosing natural gas for your energy needs

Below are some quick facts about Natural Gas and its uses

Natural gas is up to 60% less expensive than pro-pane and 85% less than electricity for household use.*84% of the natural gas consumed in the United States is produced in the United States.*On a national average, natural gas delivered to the home is about 90% energy efficient and electricity is only about 30% energy efficient.*A majority of electricity in the United States is pro-duced from coal.Natural gas can reduce your carbon footprint by almost half as compared to using electricity.So, not only has natural gas historically been the least expensive energy, it is also the most efficient and environmentally friendly when the entire supply is considered.Don’t be confused by the energy labels when buy-ing an appliance. These typically only show the appliance efficiency and do not include the wasted energy used to deliver energy to your home.Increased use of natural gas can help address several environmental concerns simultaneously, including smog, acid rain and greenhouse gas emissions.

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* Michigan Public Service Commission; Department of Labor and Economic Growth; Michigan Heating Oil and Propane Price Survey; 2009-2010 Heating Season.

CONTENTSIntroduction Page 1If You Smell Gas or Suspect a Gas Leak Page 2Reading Your Meter and Mailing Your Bill Page 2Your Gas Bill Page 3How We Compute Your Bill Page 5Verifying the Accuracy of Your Gas Bill Page 6Reading Your Gas Meter Page 7Paying Your Gas Bill Page 8Online Services Page 9Home Protection Plan Page 10Security Deposits and Guarantee Requirements Page 10Discontinuance of Gas Service Page 11Winter Protection Program Page 14Third Party Notification Page 15Inquiry, Service and Complaint Procedures Page 15Your Rights and Responsibilities When You Cannot Pay Your Bill or You Have a Dispute Page 16Settlement Agreements Page 16Some Important Information About Natural Gas and About Gas Safety Page 18Natural Gas Safety Facts Page 19Gas Leak Hazards Page 20Gas Theft: Dangerous and Illegal Page 21Rules For Safety Page 23Call 811 Before You Dig Page 23Line Safety and Maintenance Page 24Pipeline Markers Page 25Other Pipelines in Your Area Page 25How to Recognize a Gas Leak Page 26How to Report a Gas Leak Page 26

CONTENTS CONTINUED...

SEMCO ENERGY is Ready to Serve You Page 26How to Contact Us Page 27

INTRODUCTION . . . SEMCO ENERGY GAS COMPANY (SEMCO) serves more than 287,000 customers by provid-ing safe, dependable and economical natural gas to their homes in 26 Michigan counties.

SEMCO rates are regulated by the Michi-gan Public Service Commission (MPSC).

We're pleased to have you as one of ourresidential customers and we've prepared thisbooklet to tell you some things you should know about our:

• Billing procedures;

• Payment standards and how they are met;

• Security deposit and guarantee requirements;

• Gas shut-off procedures and requirements to get gas turned back on;

• Service, inquiry and complaint procedures;

• Your rights and responsibilities when you have a dispute about your gas bill or about any other service we provide;

• Natural gas safety.

We hope you will find this information useful andthat you will keep this booklet handy for future reference.

Also, we'd like to remind you that we are available to help you with any problems or questionsyou might have about our services or about your gas bill. Just contact us by telephone, on-line or write us. Our Customer Service Representatives are qualified to serve you.

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SOME THINGS YOU SHOULD KNOW ABOUT ...

IF YOU SMELL GAS OR SUSPECT A GAS LEAK . . . 1. Leave the area immediately. 2. If inside a building, get everyone out of the building and then call 1-888-427-1427 to report the leak to SEMCO.

Reading Your Meter When extreme weather conditions, emergencies,or other circumstances prevent actual meter reading, your bill will be estimated. The estimated bill is based on our records of how much gas was used in the past and is adjusted for weather conditions that existed during the billing period. Any slight variation between your actual gas usage and our estimate is corrected when we read yourmeter.

Most meters are read using Automated Meter Reading equipment. The wireless meter reading system transmits monthly usage data from the customer's meter to a unit mounted in a vehicle that drives by. In rare cases, it may not be possible to read your meter using this equipment. If this occurs, your bill will be estimated or a meter reader will visit your home to read your meter. A bill based on an estimated reading will be clearly identified as such. If SEMCO issues an estimated bill for two or more consecutive months, then, when an actual read is obtained, the customer will be given the opportunity to pay the bill over the same number of months as the bill was estimated, if requested. This does not apply if SEMCO cannot gain access to the meter and the customer fails to supply a meter reading, if requested.

Customers who choose to voluntarily discontinue their natural gas service must notify SEMCO 10

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Copies of our Schedule of Rules, Regulations and Rates; Rules on Consumer Standards and Billing Practices; and Schedules of our Service Charges are available upon request.

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days prior to the service termination date. Notice can be made by telephone, in writing or by e-mail. (SEMCO ENERGY Gas Company contact information is listed in the back of this booklet.) Some of our customers find it convenient to mail us their meter readings each month. If this would be a convenience to you, just contact SEMCO ENERGY Customer Service at 1-800-624-2019 for a supply of meter reading postcards.

1. Total Amount Due… The total amount to be paid by the due date. 2. Due Date of Current Charges… The date the current bill is due. Any past due charges are subject to the original due date. (see information) 3. If Paid After… The amount due, including penalties, if paid after the due date. 4. Account Number… This number identifies your account on our records. 5. Meter Number… Number assigned to the meter at your location.

Your Gas Bill . . .Monthly Statement

Previous Activity Previous Balance Penalties Balance Forward

Current Charges Customer Charge18 Distribution Charge Total SEMCO Charges:

19 Balance and Demand Charges Supplier Energy Charges Total Supply Charges:

20 Energy Optimization Charge Sales Tax Total State Charges:

21 HomeServe - Unregulated Service Dealer Financing - Unregulated Service Total Current Charges Unregulated Charges

Total Account Balance

Account Type: 14

Account Name: 15Service Address: 16

Amount required for the Home Heating Credit Claims: 17

Beginning ReadingMeterNumber

DaysBilled

UnitsUsed(THM)

UnitsUsed LastYr.(THM)

MeterFactor

Therm FactorDate Type Read Date Type Read

Ending Reading

5 6 7a 8a 9a 7b 8b 9b 10 11 12 13

Please see back for additional information

Total Amount Due: 1Due Date: 2

If Paid After: 3

Account Number

Usage and Account Information

4SEMCOENERGYG A S C O M P A N Y

Important bill message and informationImportant bill message and information

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6. Days Billed… Number of days between read dates. 7. Service Date… Dates indicate the Beginning (7a) and Ending (7b) period of service covered by this bill. 8. Type of Reading… The Beginning (8a) and Ending (8b) method used to read your meter. Actual = read by meter reader or by van using mobile Automated Meter Reading device. Customer = postcard or telephone call read. Estimated = Estimated read by Company. 9. Meter Reading… As measured in Ccf (100 cubic ft.) The Beginning (9a) and Ending (9b) meter readings upon which your bill is based.10. Units Used in THERMS… The volume of gas used in Therms. 11. Units Used Last Year… The volume of gas in Ccf orTherms used last year.12. Meter Factor… A factor used to calculate the volume of gas for large commercial and industrial customers. For residential customers this factor is normally a 1.13. Therm Factor… A factor used to convert the volume of gas consumed (in Ccf) to Therms. One Therm is equivalent to 100,000 BTU’s and represents the thermal energy content of the gas consumed. 14. Account Type… The customer sales class your account has been assigned. The customer sale classes are listed on the back of the bill.15. Account Name…The name in which the service is billed. 16. Service Address… The address at which the service is used. 17. Amount Required for Home Heating Credit Claims…The amount necessary to fill out your Home Heating Credit claim. 18. SEMCO Charges - Includes the Monthly Customer Charge and Distribution Charge.

These fixed and volumetric monthly charges a r e f o r m a i n t a i n i n g y o u r m e t e r , pressure regulator, service pipe; costs for preparing and transmitting your bill; and costs to maintain the distribution system. 19. Supply Charges - Includes the Balancing Demand Charge and the Supplier Energy Charge. These Items are sometimes referred to as Gas Cost Recovery (GCR) charges. a.Balance Demand Charges - Cost of balancing customer consumpt ion w i t h ac tua l gas de l i ve r i es and cost associated with pipeline capacity. b. Supplier Energy Charge - These are the costs of gas purchased from natural gas suppliers or costs of the natural gas supplied by an alternative gas supplier.20. Sta te Charges - I nc ludes Ene rgy Optimization Charge and Sales Tax. a. Energy Optimization Charge - Support Energy Optimization programs required under Public Act 295. This act, passed in October, 2008, required all utilities i n M ich igan to p rov ide Ene rgy Optimization programs for customers. SEMCO ENERGY Gas customers can access Energy Opt imizat ion programs through Efficiency United at w w w . e f f i c i e n c y u n i t e d . c o m or by calling 877.367.3191. 21. Un-Regulated Charges - Included charges such as appliance protection. Failure to pay for Un-Regulated services may result in termination of the service, but not in the termination of natural gas service. Partial payments are c r e d i t e d f i r s t t o a n y o u t s t a n d i n g natural gas balance.

How We Compute Your Bill . . . Charges billed for gas service are based on a number of factors, including: The amount of gas used during the billing period,registered in units of one hundred cubic feet (Ccf) on themeter constant (or the amount we estimate used,

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based on previous usage).

SEMCO CHARGES: • Customer Charge, Distribution Charge: Fixed and volumetric monthly charges for maintaining your meter, pressure regulator, service pipe, costs of preparing and transmitting your bill, and costs to maintain the distribution system.

SUPPLY CHARGES: • Supplier Energy Charge :Cost of gas purchased from our natural gas suppliers or supplied by alternative suppliers. Such charges are a direct pass through. SEMCO ENERGY Gas Company does not profit on the sale of natural gas. • Balancing Demand Charge: Total charges billed to SEMCO for pipeline and storage capacity.

STATE CHARGES: • Energy Optimization Charge: State mandated surcharge that is used to support energy efficiency projects in Michigan.

• The Michigan Sales Tax and local taxes.

To compute the bill in Therms. The difference between begining read and ending read reflects the number of CCF units consumed during the billing period. Convert the number of units consumed to Therms by multiplying the monthly consumption in CCF by the monthly Therm factor. This result is the units used in Therms. Then multiply the units used in Therms by the following rates: Distribution Charge, Balance Demand Charge, Supplier Energy Charge, and Energy Optimization Charge. Then, add to that figure the Customer Charge, state sales tax, and any other applicable local taxes to arrive at the Total Energy Charge.

Verifying The Accuracy of Your Gas Bill . . . We make every effort to see that gas bills areaccurate, whether we've billed an actual meterreading or if we've estimated a bill, by including several steps in our computerized billing procedures that check to make sure the bill is reasonable.

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Face the meter and read the dials from left to right. Read the numbers as indicated by the handson the dials. If a hand is between two numbers, read the smaller number; except when the hand is between 0 and 9 as in "A" above, in which case you record the number 9. In the illustration, dial A reads 9; dial B reads 0;dial C reads 8; and dial D reads 5. The correct

There are also several things that you can do to check to see that your bill is correct: • You can compare your current bill to the bill you received for the same period last year to see if the amount of gas used and the charges are about the same. BUT, IF YOU DO THIS, YOU MUST REMEMBER TO ALLOW FOR ANY CHANGES YOU MIGHT HAVE MADE IN THE WAY YOU USE GAS, ANY CHANGES IN OUR RATES, AND FOR DIFFERENCES IN THE WEATHER CONDITIONS. • You can check to see that the meter reading we used to prepare the bill is correct. The meter reading we used and the date of the reading are shown on the bill. IF YOU READ YOUR METER ON THE DAY YOU RECEIVE YOUR BILL, YOU SHOULD FIND THE READING YOU OBTAIN IS SOMEWHAT HIGHER THAN THE ONE WE USED FOR BILLING. • Yo u c a n c o n t a c t S E M C O a n d a Customer Service Representative will be happy to assist you in verifying the accuracy of your bill.

Reading Your Gas Meter . . . The dials on the gas meter register the amountof gas used in units of 100 cubic feet. Reading a meter is similar to reading a clock. Here's what to do:

1 MILLION 100 THOUSAND 10 THOUSAND 1 THOUSAND

A B C D

012

34

5

98

76

098

76

5

12

34

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98

76

098

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500

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HU

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N, M

I 480

61-5

004

48061

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reading for this meter is 9085. Some meters do not have dials as illustrated. Instead, it will look like a mileage indicator on an automobile. In this case, a meter reading would appear as indicated.

Paying Your Gas Bill . . . Customers have a full 21 days from the day the bill is mailed to make payment. Custom-ers can pay by mail, at any SEMCO drop box, or you may also pay on-line, by phone, or at various payment agencies where fees may ap-ply. In the event that only a portion of the bill is paid, the payment will be applied against any balance outstanding for gas or utility service. • Direct Payment Plan - Have your payment automatically deducted from your checking or savings account. SEMCO will send you a billing statement each month showing your billed amount and how much will be deducted on the due date of the bill. • Residential Budget Payment Plan - This program allows you to know your monthly gas payment in advance by setting an amount based on consumption history. Enrollment is FREE and open to eligible customers during May, June and July of each year. The Budget Payment amount is determined byusing the previous 12 months usage adjustedfor weather. We calculate the cost of that usagebased upon current rates and anticipated changesin the cost of gas. For more information, call SEMCO Customer Service at 1-800-624-2019 to enroll. If you mail us a payment, please return theenclosed envelope and include the lower portion of the bill along with your personal check or money order. Note your account number on your check or money order. For your own protection, never send cash through the mail. If you mail a payment, please consider the due date and allow at least 5 days for it to reach us. If you use an Authorized Payment Agent, be aware that it can take up to two (2) business days for your payment to be credited to your account (fees apply.)

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Please use only authorized payment centers. If the gas charge is paid after the due date on the monthly statement, a late charge of 2% of the unpaid portion of the gas charge may be added to the bill.

Online Services...E-Bill Looking for a way to help the environment? Receive your bill electronically. Once you are en-rolled in E-Bill, you will receive an e-mail notification when your statement is available for viewing. The e-mail will be sent in place of your regular paper billing statement.

Enrollment: To enroll simply register online, www.semcoenergygas.com, or detach and mail the attached form in this booklet. When enrolling by mail, you will receive a confirma-tion e-mail verifying your request has been processed. Please note: you will continue to receive a printed billing statement until a con-firmation e-mail is received.

My Access Online In addition to our Payment Plans, you can also manage your account online. This convenient ser-vice is free and provides you with instant access to your account at anytime from anywhere you have an internet connection.

To register, you will need your SEMCO ac-count number and the 5 digit zip code where your bill is mailed. Register today at www.semcoenergygas.com, and start enjoying these services:

Enroll in the E-Bill program and re-ceive your bill electronically.Enroll in the Direct Payment Program to have your payments automatically deducted from your checking or sav-ings account each month.Make or schedule a payment online using your credit card or checking/savings account (fees apply).Review Account and Payment His-

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tory.Turn off or Transfer service.Change your mailing address.And much more.

Home Protection PlanSEMCO has contracted with HomeServe

USA (Home Service) to offer its customer home protection plans. Home service offers a variety of plans to provide furnace, air conditioner, water heater and inside gas piping repair. The plans cover parts and labor costs necessary to repair your products for problems due to normal wear and tear and inherent defects in material. For more information call Home Service: 1-888-300-5039 (Home Serve USA is an independent company from SEMCO. This service is optional and you may find other companies offer similar services.)

Security Deposits and GuaranteeRequirements . . . We do not require a security deposit or otherguarantee from any residential customer on thebasis of commercial credit standards, income, homeownership, residential location, creed, sex, age, national origin, race, color, marital status, familial status, disability and any other criteria not authorized by MPSC rules. We do require security deposits from new customers under the following situations: • The customer has an unpaid, undisputed bill owing to any utility. • The customer interfered (tampered) with the gas service system in an unauthorized manner. • The customer misrepresented his or her identity or credit standing. • The customer requested service at a residence in which he or she does not reside. • The utility has had two or more checks within the past two years for insufficient funds or no account. • The customer requested service at a household in which a service account was incurred by another household member who still resides at the household, and the account remains

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unpaid and not in dispute. • The customer is unable to provide favorable prior utility service history information with any Michigan utility during the last six years. • Gas service has been shut off because bills have not been paid. • As allowed by Federal Bankruptcy Law. The amount of the security deposit shall not be more than twice the average monthly bill for the premises or twice the utility's system average monthly bill for residential service if consumption history for the premises is not available. If unauthorized usage is detected, the amount of the security deposit shall not be more than four times the average monthly bill for the premise. Security deposits earn interest at a rate authorized and approved by the Michigan Public Service Commission, and interest earned is credited to the customer's account semi-annually. Deposits and interest will be refunded in the first period following 12 consecutive months in which all bills have been paid by the due date and no notice of discontinuance of service was sent. Deposits required as a result of the unauthorized use of natural gas may be held for up to 36 consecutive months. Should the customer move and no longer use gas with us, the deposit and interest will be applied to the final gas bill and any amount remaining is refunded by check.

Discontinuance of Gas Service . . . We are dedicated to providing the affordable gas service you desire and to respondingpromptly to your needs. Gas service is shut off only for one of the following reasons. The customer: • Has not paid a delinquent account that has accrued within the past 6 years; • Has failed to provide a deposit or guarantee; • Has engaged in unauthorized use of utility service; • Has failed to comply with terms and conditions of a Settlement Agreement; • Has refused to arrange access at reasonable times for the purpose of inspection, meter

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reading, maintenance or replacement of equipment or for removal of a meter; • Misrepresented his or her identity for the purpose of obtaining service or put service in another person's name without permission of the other person; • Of record is deceased and the gas service account is not transferred into the name of a responsible person; • Violated any rules or regulations approved by the MPSC, which adversely affect the safety of customers, other persons or the integrity of SEMCO's gas delivery system. Service may be discontinued if a person living in the customer's residence is both of the following: • Delinquent on an account for service with SEMCO wi th in the past three years that remains unpaid and is not in dispute,and • The customer lived in the person's home when all or part of the debt was incurred. SEMCO may t rans fer a p rora ted amount o f the debt to the customer's account, based on the length of time that the customer resided at the person's residence. This provision does not apply if the customer was a minor while living in the person's residence. SEMCO will postpone shut off of residential service for any of the preceding reasons when a certified medical emergency exists at the premises where the gas service is rendered. The shut off will be postponed for not more than 21 days if the customer or a member of the customer's household is a critical care customer or has a certified medical emergency. The certificate shall identify the medical condition, any medical or life supporting equipment being used, and the specific time period during which the shut off of service will aggrevate the medical emergency. SEMCO will extend the postponement in periods of not more than 21 days, not to exceed a total of 63 days, only if thecustomer provides additional certificates. If theshut off has occurred without any postponement being obtained, SEMCO shall unconditionally r e s t o r e s e r v i c e f o r n o t m o r e t h a n

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21 days, not to exceed a total of 63 days in any12-month period per household member. Annually,SEMCO shal l not be requi red to grantshut off extensions totaling more than 126 days perhousehold. SEMCO will not shut off service to an eligible senior citizen during the space heating season November 1st through March 31st. An eligible senior is a customer age 65 years and older who informs SEMCO of his or her eligibility. SEMCO will restore service to an eligible senior citizen, at the customer's request, during the space heating season without payment of the amount due, deposits, reconnection fees or other charges. At the conclusion of the space heating season, SEMCO will reconcile the accounts of eligible senior citizen customers andallow them to pay amounts owing in equal monthly installments between April 1 and October 31. Please contact SEMCO to ensure your account is properly identified. SEMCO will not shut off service to eligible military customers for a period of 90 days. The Gas Company will continue shut off protection for an additional 90-day period as long as the customer continues to meet all criteria for being an eligible military customer and requests that SEMCO do so. At the close of the shut off protection period, SEMCO will require the customer to pay any past due amounts in equal monthly payments over a period of up to 12 months. An eligible military customer must be a customer who is on full-time active duty or the spouse of a customer on full-time active duty. In addition, the eligible military member must be either deployed overseas as a result of declared war or undeclared hostilities or deployed in the United States in response to a declared state or national emergency resulting in a reduction in household income. The customer must inform SEMCO of his or her eligibility and provide proof of eligibility, if required. Further, we will not shut off residential service because of the customer's failure to pay formerchandise, appliances or services not approved

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as an integral part of the Company's service. We will not shut off service at one residential location because of the customer's failure to pay bills at another location. However, if service is shut off at one location and the customer is using gas at another, we will transfer the amount of the unpaidbills to the other residential account of the customerfor payment. A notice will be sent at least 10 days prior to scheduling the shut off of gas service for any ofthe above reasons. Our notice may be included with your bill and includes instructions for the proper steps the customer should take toprevent the shut off. The notice also givesinformation about the customer's right to enter into a reasonable payment arrangement for paymentof the overdue bills, to file a complaint if the amount of the bill is in dispute and to request a Hearing before a Utility Hearing Officer. Shut off due to non-payment will only occur between the hours of 8 a.m. and 4 p.m. on normal business days. To avoid gas shut off, we urge customers to contact us as soon as possible if they are having difficulty in paying bills or if they are withholding payment for any reason. Prompt action in letting usknow about payment problems will help us take steps to assist before bills become overdue. Werecognize the hardship that shut off of gas can cause, and we want to avoid this action whenever possible. If the gas shut off does occur, instructions to get the gas service turned back on are provided.

Winter Protection Program...Gas service to an eligible low-income customer

shall not be discontinued during the space heating season if the customer enrolls in the Winter Protection Plan and agrees to pay SEMCO a monthly amount of not less than 7% of the estimated annual bill plus a portion of any arrearages. A customer is eligible for this protection if: • Receiving Food Stamps or Medicaid;

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• R e c e i v i n g S u p p l e m e n t a l S e c u r i t y Income or Aid to Families with Dependent Children; • Household Income does not exceed the

Federal Poverty Level requirements for this protection;

• They pay the required enrollment amount at the time he or she requests protection. The customer must make up the difference of their actual November through March bills and their Winter Protection Plan payments through increased monthly payments during the remainder of the year; or

• Documentation is provided within 14 days proving that the customer has applied for state and/or federal assistance.

Third-Party Notification... SEMCO will send a copy of a customer's service billing notices to a consenting person or agency through our Third-Party Notification Program. This program is designed for customers such as senior citizens or those confined to their home due to illness. Both the customer and the consenting individual or agency must sign a form before participation is enacted. On this program, the third party receiving any notices will be able to remind the customer of an overdue gas bill, but is not obligated to pay the overdue gas bill.

Inquiry, Service and Complaint Procedures . . . Please contact us if you have a problem with your gas bill or require service. Contact us by telephone or by letter (please include your gas account number on the correspondence). If you have a question concerning the accuracy of a gas bill, please contact us promptly after you receive it. All of our Customer Service Representatives are trained to serve you. Call 1-800-624-2019 or email customer.service@semcoenergy.com

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Your Rights and ResponsibilitiesWhen You Cannot Pay Your Bill orYou Have a Dispute . . . In accordance with the Michigan Public Service Commission Consumer Standards and BillingPractices, as a customer of SEMCO, you have the following options when you cannot pay your bill or you have a dispute.

Settlement Agreements . . .If you are unable to pay your past due amount by

the due date, promptly contact Customer Service at 1-800-624-2019. We may be able to establish a payment arrangement to avoid shut off of your natural gas service.

If the customer is not able to pay the outstanding bill in full, the customer will be offered the opportunity to enter into a Settlement Agreement. The amount of the installments will be determined by: • The size of the delinquent account; • The customer's ability to pay; • The time that the debt has been outstanding; • The reasons that the customer has not paid the bill; • The customer's payment history; • Any other relevant factors concerning the circumstances of the customer. If a customer fails to comply with the terms of aSettlement Agreement, the Company will notify the customer that the Agreement is in default and then pursue normal collection action. The Company is not required to enter into another Settlement Agreement until the terms of the previous Agreement have been met. SEMCO is not required to enter into a subsequent Settlement Agreement with a customer who defaults on the terms and conditions of an agreement within the last 12 months.

Disputing a Bill:Customers should make any inquiry or complaint

about the bill before the due date. Call customer assistance or mail inquires and complaints directly to SEMCO.

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• If you think the amount of your bill is incorrect, you have the right to file a complaint disputing the amount to be paid. You can file a complaint by contacting SEMCO (please include y o u r g a s a c c o u n t n u m b e r o n t h e correspondence). If you do have a question or complaint about your bill, we suggest that you contact us as soon as possible after you receive the bill. • If you and representatives of SEMCO are unable to resolve your complaint in a mutually satisfactory manner, you will be offered and have the right to receive an Informal Hearing before a Utility Hearing Officer. To receive a Hearing, your request must be made within five (5) days after a Hearing is offered. Within ten (10) days after the date that you request a Hearing, you must pay the Company the portion of the bill which is not in dispute.If this amount cannot be determined, you must pay one-half (1/2) of the total bill or $100, whichever is less. Failure to make the required payment may result in shut off of service. • A Hearing on your complaint will be scheduled promptly and will be held during normal business hours. You will be sent a notice giving the time, date and place of the scheduled Hearing. Failure to attend a scheduled Hearing results in forfeiture of the Hearing. You have the r ight to represent yourself or be represented by a lawyer or any other person of your choice during the complaint process. You also have the right to examine any documents, records or files that will be used in the Hearing. All witnesses will testify under oath, and you have the right to question witnesses. Formal rules of evidence will not apply at the Hearing and the burden of proof will rest with the Company. At the Hearing, the Utility Hearing Officer (an impartial individual whose function is to arbitrate and resolve disputes between customers and the Company and whose performance is subject to review by the Michigan Public Service Commission)

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will listen to facts presented by you (or your representative) and by someone represent-ing SEMCO. The officer will then make adecision based on the facts presented, which will be binding on you and on SEMCO, to resolve the dispute. The officer will also provide youwith a written copy of the decision and will advise you and SEMCO on what must be done to abide by the decision. If the dispute is resolved in favor of the customer, any excess amount of money that had been paidby the customer will be promptly refunded withinterest at a rate authorized and approved annually by the Michigan Public Service Commission. Both you and SEMCO have the right to appeal to the Consumer Services Division of the Michigan Public Service Commission if not satisfied with the decision of the Utility Hearing Officer. The appeal must be made within five (5) days and be made by telephone, mail or in person. The Company will neither terminate gas servicenor issue a notice of discontinuance of service relative to the matter in dispute during the Hearing and Appeal process. However, all bills not in dispute must continue to be paid. The address and telephone number of theConsumer Services Division is:

Michigan Public Service CommissionConsumer Services Division

6545 Mercantile WayLansing, Michigan 48910

Telephone: Toll Free 800-292-9555or 517-373-8590

SOME IMPORTANT INFORMATIONABOUT NATURAL GAS ANDGAS SAFETY . . . Natural gas is your most dependable fuel. It is transported by pipeline from Texas, the Gulf of Mexico and Canada. It's piped to you underground through a reliable system of pipeline conduits.

Natural gas is the most economical fuel you can use. Costs of using natural gas are substantiallyless than the cost of electricity, fuel oil or coal. SEMCO utilizes an extensive network of underground pipelines to deliver natural gas to its customers. The purpose of these pipelines is to transport the natural gas from pipeline supply points to residential, commercial and industrial customer meters. SEMCO is committed to ensuring these pipelines are operated safely and reliably. According to National Transportation Safety Board statistics, pipelines are the safest method for transporting these products (natural gas, petroleum, LPG and other materials.) As part of SEMCO's continuing effort to maintain the reliability and integrity of its pipelines, prevent incidents from occurring and (should an incident occur) to respond to emergencies, SEMCO has developed and maintained good communication networks with state and local emergency officials in the State of Michigan. SEMCO meets with emergency officials in your area on a regular basis to discuss emergency preparedness and response plans to prepare for various emergency issues. SEMCO provides natural gas emergency training and specialized equipment to a majority of emergency responder organizations and, when necessary, participates in joint response planning with local, state and federal emergency responders.

NATURAL GAS SAFETY FACTS . . . As part of our ongoing customer education efforts,SEMCO offers these facts about natural gas safety: • In its natural state, natural gas is colorless, odorless and tasteless. To help you recognize the presence of natural gas, an odor similar to rotten eggs is added. • Natural gas is lighter than air, rises quickly and disperses harmlessly in open areas. However, in an enclosed area, natural gas displaces air at ceiling level and fills the room from the ceiling down, displacing air and suffocation may occur.

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• Natural gas is not Liquefied Petroleum Gas (LPG). Liquefied petroleum gases, such as propane, are heavier than air and, unlike natural gas, will collect in low places. • Natural gas is not toxic or poisonous. • Natural gas cannot burn without oxygen. For natural gas to burn, it must be mixed with air and must have an ignition source, such as a pilot light or electric arc from a light switch, electric motor, doorbell or telephone.

• Burning natural gas will not explode. In many cases, it is better to let the natural gas burn than to extinguish the fire. If the fire is extinguished prior to stopping the flow of gas, the gas has the potential to build-up to an explosive level.

MSDS Link:SEMCO’s Material Safety Data Sheet is available

online at http://semcoenergygas.com/Safety/pdf/NG_Odorized_MSDS_SRM_071310.pdf

GAS LEAK HAZARDS . . . A natural gas leak may present these hazards: • Fire; • Explosion; • Asphyxiation (Natural gas displaces oxygen in confined spaces). These hazards can be caused by: • Rupturing, nicking or puncturing a pipline; • Uncontrolled escaping gas or fuel; • Extreme natural events such as floods, tornadoes and earthquakes; • Heavy ice on outside meters or other gas pipelines; • Fire or explosion near or directly involving a pipeline facility; • Collapsed buildings that break or damage pipeines; • Civil disturbances such as riots; • Water main breaks that weaken roadways and pavement damaging pipelines; • Under-pressure or over-pressure in the pipeline

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system; • Equipment failure; • Human error.

GAS THEFT: Dangerous and Illegal . . . SEMCO reminds customers that gas theft attempts can be dangerous, resulting in potential leaks, fires and, in extreme cases, death.

Also, it is SEMCO’s policy to prosecute all gas thefts detected on its distribution system. Attempts to steal natural gas can be dangerous, to the thief and to those living in the immediate area. Natural gas service is a safe and efficient energy source when connected and maintained by trained professionals, such as SEMCO Service Technicians and certified private contractors. However, when inadequate equipment and/or training is involved in making a connection, natural gas can leak, creating potentially dangerous situations, including injury and death. Natural gas thefts can be detected in a number of ways – including routine leak surveys, emergency leak calls, routine equipment maintenance and tips from callers. SEMCO investigates all suspected gas thefts. When a theft is confirmed, the local police are contacted and criminal charges are sought against the responsible party. These usually involve felony charges, which can lead to a jail sentence and criminal record. If you suspect a natural gas theft, please contact SEMCO immediate ly by ca l l ing Customer Service at 1-800-624-2019 orby calling our Gas Leak/Emergency line at 1-888-GAS-1-GAS (1-888-427-1427). All anonymous tips are accepted and investigated.

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AN IMPORTANT SAFETY REMINDER: All equipment, up to and including your gas meter, is considered SEMCO property and should be serviced and maintained only by SEMCO Service Technicians. Customer-owned gas lines and connections between the meter and home should be serviced by a certified private contractor.

SEMCO reminds its customers not to attempt to service any natural gas equipment between the natural gas main and the meter, no matter how simple the procedure may seem. If you need to have the gas to your home temporarily turned off for any reason, please contact SEMCO at 1-800-624-2019 to schedule an appointment for a SEMCO Service Technician to turn off the gas. A Service Technician also will restore gas service to your home. Turning the valve leading to the gas meter on or off, or operating any SEMCO equipment yourself, could result in a serious safety hazard. Adjusting any SEMCO equipment also can result in legal action by SEMCO. Remember, natural gas is a safe, efficient and economical fuel when connected and maintained by trained professionals, such as SEMCO Service Technicians.

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RULES FOR SAFETY . . . Like many other products found in your home, natural gas can present hazards if misused. SEMCO urges you to follow these simple rules of safety: 1. Follow the manufacturer's instructions in the care and operation of appliances. 2. Repair and installation are jobs for experts. Have qualified personnel handle such work. 3. Always make sure that no gas has accumulated around the pilot or burner before you relight a pilot light. 4. Keep all combustibles away from the flame of your gas appliance. Keep burners and surrounding surfaces clean. 5. Make sure the flues of any automatically controlled appliances are kept clean and correctly ventilated. 6. Teach children never to turn on or light appliances. 7. Natural gas appliances, such as furnaces and water heaters, should always be installed, repaired and maintained by trained professionals (SEMCO does not provide installation and repair services.) CALL 811 BEFORE YOU DIG . . . It’s now easier than ever to contact MISS DIG. Michigan residents, whether do-it-yourselfers or professional excavators can now just call 811 to have all utility lines located free of charge before beginning any digging or excavation project. 811 is the toll-free nationwide “Call Before You Dig” number. Just dial 811 and your call will be routed to the local “Call Before You Dig” system. That’s MISS DIG in Michigan. A call to 811 in MIchigan will quickly begin the process of getting underground utility lines marked. MISS DIG System, Inc. will notify affected member utility companies to send crews to mark underground lines for free. The existing MISS DIG number for Michigan –1-800-482-7171 – still can be used to contact thestate program. 811 is an additional, easy-to-

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remember access number for MISS DIG. The 811 number can be called from any phone land line, cell or cable phone. Michigan law requires property owners to contact MISS DIG three (3) business days before beginning any project involving digging. This helps avoid possible injuries or damage to natural gas and oil lines, electric, telephone, TV cable and water and sewer facilities. Failure to call MISS DIG could leave you facing costly repair bills for damaged utility-owned lines. Also be aware that if you have buried “customer-owned” lines in a project area, you are responsible for locating and marking those lines. Customer-owned lines are lines between the meter and your appliance. These include lines to yard lights, pool and spa heaters, garages,workshops and similar areas. To learn more about the MISS DIG Program and 811, visit www.missdig.org or www.call811.com.

LINE SAFETY AND MAINTENANCE . . . SEMCO maintains all gas and service lines that connect the gas distribution system to the meter. You are responsible for “customer-owned lines,” or the lines between the meter and your appliance. This includes underground lines on your property to yard lights, pool and spa heaters, garages, workshops and similar areas. Please make it a routine to check all gas lines for leaks or corrosion. Here are some signs to look for when you suspect a leak: • Blowing or hissing sounds; • Brown patches of vegetation on or near a right-of-way; • Bubbling water at a pond, creek or river; • Gas odor; or • Dry spot in moist earth. In some rare cases, natural gas may not be detected by smell. If you suspect a hazard, leave the area and call SEMCO immediately at 1-888-

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GAS-1-GAS (1-888-427-1427). A trained technician will check the line and shut off your gas supply, if a safety hazard exists. After you have a qualified heating or plumbing contractor make the necessary repairs to your customer-owned lines, a SEMCO Service Technician will restore your gas service. SEMCO does not perform repair service on customer-owned lines.PIPELINE MARKERS ... In certain situations or conditions, SEMCO is re-quired to identify where its pipelines are located by using pipeline markers. The pipeline markers current-ly used by SEMCO typically look like the following:

In addition to the MISS DIG telephone number 811, the SEMCO 24-hour emergency telephone number, 1-888-427-1427, is also listed. SEMCO’s 24-hour line is for customers to use to contact SEMCO in the event of an emergency. Anyone who plans to dig near a utility's facility is required to call MISS DIG 72 hours prior to digging. For free locat-ing and staking of SEMCO's facilities, call MISS DIGat 811.

OTHER PIPELINES IN YOUR AREA . . . For a listing of pipelines in your area, please visit the Pipeline and Hazardous Materials Safety Administration’s National Pipeline Mapping System(NPMS) website at https://www.npms.phmsa.dot.gov. This website enables the user to view the National Pipeline Mapping System (NPMS) data one county at a time. NPMS data is for reference purposes only. It should never be used as a substitute for contacting a one-call center prior to excavation

activities. Please call 811 before any digging occurs.Data cannot be downloaded from the Public Viewer.

HOW TO RECOGNIZE A GAS LEAK . . . Natural gas is colorless, odorless and tasteless. In some rare cases, natural gas may not be detected by smell. To help you recognize the presence of natural gas, an odor similar to rot-ten eggs is added to the natural gas. Other signs of a natural gas leak may include: • Brown patches in vegetation or near a gas pipeline; • Dry spots in moist earth; • Blowing (gas) noise, blowing dirt or bubbling mud or water; and • Fire coming from the ground or burning above the ground.

HOW TO REPORT A GAS LEAK . . . If you suspect a natural gas leak, leave the building or area immediately and call SEMCO from another location. Report natural gas leaks and related emergencies to the SEMCO Leak/Emergency l ine: 1-888-GAS-1-GAS (1-888-427-1427), 24-hours a day, sevendays a week. SEMCO’s 24-hour line is for contacting the company only in the event of an emergency. SEMCO Service Technicians are trained to respond quickly to any natural gas emergency.DO NOT: 1. Turn electrical switches on or off. 2. Use any electrical device, including ap- pliances, door bells and garage door openers. 3. Light matches, light candles or smoke. 4. Use any phones, including cellular phones. 5. Re-enter the building or return to the area until proper authorities tells you it’s safe to do so.

SEMCO IS READY TO SERVE YOU . . . Please contact us for information about some of our available services, such as:

• E-Billing

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Rev. 3/11

• Budget Payment Plan • Direct Payment Plan • My AccessOnline • Payment Assistance Programs • Home Protection Plan

HOW TO CONTACT US . . . To request a copy of "An Informational Bookletfor Residential Customers," contact:

SEMCO ENERGY GAS COMPANYPO Box 5004

Port Huron, MI 48061-50041-800-624-2019

Customer Service / Inquiries:Toll Free: 1-800-624-2019

E-mail: customer.service@semcoenergy.comWeb site: www.semcoenergygas.com

Gas Leaks/Emergencies:1-888-GAS-1-GAS (1-888-427-1427)

Payment Drop Box Locations:(check or money order only)

Holland - 739 Paw Paw DriveNegaunee - 34 E. US Hwy 41

Niles - 1000 Bell Road

Mail Payments To: SEMCO ENERGY GAS COMPANY PO Box 740812 Cincinnati OH 45274-0812

Pay By Phone1-800-624-2019

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