SEMCO Energy Gas Company Rate Selection Guide
SEMCO Energy Gas Company is a regulated natural gas distribution utility serving about 302,000 customers across Michigan under Michigan Public Service Commission (MPSC) oversight. Billing and monthly therm consumption are accessible through the My Account portal, but SEMCO uses AMR (not interval-capable smart meters) and has not yet implemented Green Button, so granular interval data and developer APIs are unavailable. Michigan's Gas Customer Choice program lets commercial and industrial customers buy gas commodity from an alternative supplier while SEMCO delivers.
SEMCO Energy Gas Company Rate Schedule Comparison
| Schedule | Type | Rate | Best For |
|---|---|---|---|
| GS-1 | Commercial | $15.00/mo customer + $0.19556/therm distribution + MRP/IRIP + Cost of Gas | Small commercial accounts with modest annual therms |
| GS-2 | Commercial | $38.80/mo customer + $0.15226/therm distribution + MRP/IRIP + Cost of Gas | Mid-size commercial with steady year-round load |
| GS-3 | Industrial | $116.20/mo customer + $0.11966/therm distribution + MRP/IRIP + Cost of Gas | Large C&I accounts with high volumes; lowest per-therm distribution |
| Large Volume Transportation | Industrial | Customer + remote-meter charges + per-therm transportation (see tariff) | Largest industrials sourcing their own gas commodity |
Market Overview
SEMCO is a regulated gas distribution utility (MPSC No. 1 - Gas). Distribution is a regulated monopoly; the gas commodity is competitive under Michigan's Gas Customer Choice program. C&I customers can buy gas from a licensed Alternative Gas Supplier (AGS) while SEMCO delivers and bills all non-commodity charges. By law SEMCO earns no profit or markup on its gas commodity (Cost of Gas) charge.
Need to pull your actual usage data to compare rates? See the SEMCO Energy Gas Company Data Access Guide →
Community Choice Aggregation (CCA) Options
Licensed Alternative Gas Suppliers (e.g., IGS Energy, Just Energy, BP Energy Retail) serve the commodity portion while SEMCO delivers. Compare the SEMCO Cost of Gas line to a supplier's Energy Charge.
Current Rate Schedules
SEMCO gas bills combine a fixed monthly Customer Charge, a volumetric Distribution Charge (per therm, declining by class), an Energy Waste Reduction (EWR) charge, a Main Replacement Program (MRP) charge, an Infrastructure Reliability Improvement Program (IRIP) charge, and a Cost of Gas (commodity) charge that AGS customers replace with their supplier's Energy Charge. The figures below are SEMCO's published rates effective July 2024 (MPSC No. 1 - Gas). The Cost of Gas (GCR) and EWR factors are adjusted periodically; an EWR charge applies Feb 1-Dec 31, 2026 per MPSC order U-21681.
Effective: July 1, 2024 · Full Tariff Book →
| Schedule | Type | Applicability | Structure | Rate |
|---|---|---|---|---|
| General Service 1 (GS-1) | commercial | Smaller commercial accounts. Principal or subsidiary general-service account. | Customer Charge $15.00/month; Distribution Charge $0.19556/therm; Energy Waste Reduction $0.26350/therm (usage =90 therms); Main Replacement Program (MRP) $1.81/month; IRIP $1.99/month; plus Cost of Gas commodity charge (~$0.306/therm, July 2024) or AGS Supplier Energy Charge. | — |
| General Service 2 (GS-2) | commercial | Mid-size commercial accounts with higher monthly volumes. | Customer Charge $38.80/month; Distribution Charge $0.15226/therm; Energy Waste Reduction $0.26350/therm (=90 therms); MRP $9.43/month; IRIP $10.37/month; plus Cost of Gas commodity (~$0.306/therm) or AGS charge. | — |
| General Service 3 (GS-3) | industrial | Large commercial and industrial accounts with the highest volumes. | Customer Charge $116.20/month; Distribution Charge $0.11966/therm; Energy Waste Reduction $0.26350/therm (=90 therms); MRP $56.87/month; IRIP $62.55/month; plus Cost of Gas commodity (~$0.306/therm) or AGS charge. | — |
| Large Volume Transportation Service | industrial | Largest industrial customers transporting their own gas across SEMCO's system. | Per the MPSC No. 1 - Gas rate book: monthly Customer Charge and Remote Meter Charge per delivery-point meter, plus volumetric transportation charges applied to Monthly Consumed Quantities (seasonal April-October billing structure). Specific per-therm transportation rates are set in the tariff book; contact a SEMCO Key Account Executive for account-specific quotes. | — |
Rate Recommendations by Use Case
Small commercial (office, retail, restaurant)
GS-1 fits smaller commercial accounts. The fixed monthly cost is low ($15.00) but the per-therm distribution charge is the highest of the C&I classes.
Low fixed charge suits modest annual therms; shop the Cost of Gas line for additional savings.
- Export 12 months of therms from My Account to size annual usage
- Compare AGS offers on MI Gas Compare
- Apply for C&I efficiency rebates to cut volumetric charges
Mid-size commercial / light industrial
GS-2 lowers the per-therm distribution charge to $0.15226 in exchange for a higher fixed Customer Charge ($38.80) and MRP/IRIP, beneficial for steady year-round load.
Break-even with GS-1 occurs as monthly volumes rise; verify with 12 months of data.
- Model GS-1 vs GS-2 break-even using actual therms
- Shop commodity via Customer Choice
- Consider efficiency upgrades to reduce volumetric charges
Large industrial / high-volume facility
GS-3 offers the lowest per-therm distribution charge ($0.11966) for the highest-volume accounts; very large loads should also evaluate Large Volume Transportation Service.
High fixed charges ($116.20 + MRP $56.87 + IRIP $62.55) are outweighed by low per-therm distribution at scale.
- Engage a SEMCO Key Account Executive for transportation pricing
- Self-procure commodity to bypass the Cost of Gas line
- Combine with efficiency rebates and load management
Multi-site commercial portfolio
Manage multiple service addresses under one My Account login, export monthly therms per meter to CSV, and standardize commodity procurement across sites.
Portal multi-account management plus a single AGS commodity contract simplifies portfolio cost control.
- Add all addresses under one login
- Export CSV per meter for benchmarking
- Negotiate a portfolio commodity contract with a licensed AGS
Historical Rate Trends
SEMCO's Cost of Gas (commodity) charge adjusts monthly through the Gas Cost Recovery (GCR) mechanism and has fallen substantially from 2023 peaks. Distribution rates are reset in periodic MPSC general rate cases; surcharges such as Energy Waste Reduction are reset by MPSC order.
July 1, 2024
Cost of Gas commodity charge at ~$0.306/therm, down from 2023 highs; current distribution rate schedule effective.
-53% vs Jan 2023 commodityFebruary 1, 2026
Energy Waste Reduction (EWR) charge effective Feb 1 - Dec 31, 2026 per MPSC order U-21681.
n/aOverall trend: Cost of Gas commodity charges declined from ~$0.648/therm (Jan 2023) to ~$0.306/therm (mid-2024). Distribution and infrastructure recovery charges have risen modestly through MPSC rate cases.
Next expected change: Monthly GCR (Cost of Gas) updates continue; an Energy Waste Reduction charge applies Feb 1 - Dec 31, 2026 per MPSC order U-21681. Distribution rates change with the next general rate case.
Cost Optimization Strategies
Because SEMCO charges no markup on the gas commodity and the only competitive lever is the Cost of Gas line, C&I cost optimization focuses on commodity procurement via Customer Choice, right-sizing the rate class, and reducing therm consumption to lower volumetric distribution and EWR charges.
Shop the gas commodity via Customer Choice
For: All C&I classes (GS-1, GS-2, GS-3)
Compare SEMCO's Cost of Gas line item to a licensed Alternative Gas Supplier's Energy Charge using the MI Gas Compare tool; switch the commodity while SEMCO continues delivery.
Confirm optimal rate class
For: Commercial / industrial
Higher-volume accounts pay a lower per-therm distribution charge (GS-3 $0.11966 vs GS-1 $0.19556). Verify the account is on the lowest-cost eligible class given annual therms.
Reduce therm consumption / efficiency rebates
For: Commercial / industrial
Use SEMCO's Commercial & Industrial energy efficiency program (administered via CLEAResult, 855-298-5387) for rebates on high-efficiency equipment; lower therms cut volumetric distribution and EWR charges.
Evaluate Large Volume Transportation
For: Largest industrial loads
Very large industrials may transport their own gas under Large Volume Transportation Service, paying delivery/transportation charges only and procuring commodity directly.
To implement these strategies, you need your 15-minute interval data. Learn how to download SEMCO Energy Gas Company interval data →
Deregulated Market Shopping
Michigan's Gas Customer Choice program lets SEMCO C&I customers buy the gas commodity from a licensed Alternative Gas Supplier (AGS) while SEMCO continues to deliver gas and bill all non-commodity charges. Only the Cost of Gas line item is replaced by the supplier's Energy Charge; distribution, MRP, IRIP and customer charges are unchanged.
How to Compare SEMCO Energy Gas Company Suppliers
- 01Export your annual therms from My Account
- 02Compare the SEMCO Cost of Gas line item to AGS Energy Charges on MI Gas Compare
- 03Confirm the supplier is licensed for SEMCO territory on the MPSC list
- 04Enroll directly with the chosen AGS; SEMCO continues delivery and billing
Contract Terms for SEMCO Energy Gas Company Supply Agreements
- Fixed or variable commodity pricing depending on supplier
- Term lengths vary (month-to-month to multi-year)
- Early termination fees may apply on fixed contracts
Common Pitfalls When Shopping SEMCO Energy Gas Company Rates
- Only the commodity (Cost of Gas) is competitive; delivery charges never change
- Variable-rate offers can spike with the market
- Verify the supplier is MPSC-licensed for SEMCO's territory before enrolling
Frequently Asked Questions
Can my facility get 15-minute or hourly interval gas data from SEMCO?▾
No. SEMCO uses AMR (Automated Meter Reading) metering, which produces monthly reads only. Interval data (15-minute, 30-minute, hourly) is not available to any customer class. The most granular data is monthly therm consumption, exportable as CSV from My Account.
Does SEMCO support Green Button or a data API for our energy software?▾
Not currently. SEMCO has not implemented Green Button Download My Data or Connect My Data, and there is no public developer API. Aggregators can only obtain data through manual export with written customer authorization. Monitor MPSC Case U-20959 for future Green Button implementation.
How does an energy consultant get our SEMCO usage data?▾
Provide written authorization naming the consultant and company, then have them contact SEMCO at 1-800-624-2019 or customer.service@semcoenergy.com with your account number and service address. SEMCO verifies the authorization and emails 12-24 months of billing/consumption, typically within 3-5 business days.
Can our business buy gas from a different supplier and still use SEMCO?▾
Yes. Under Michigan's Gas Customer Choice program, C&I customers can buy the gas commodity from a licensed Alternative Gas Supplier while SEMCO delivers it. Only the Cost of Gas line item is replaced by the supplier's Energy Charge; all delivery and infrastructure charges remain. Compare offers at MI Gas Compare.
Which rate class should our commercial account be on?▾
GS-1, GS-2 and GS-3 trade a higher fixed Customer Charge for a lower per-therm distribution charge as volume rises (GS-3 distribution is $0.11966/therm vs GS-1's $0.19556). Export 12 months of therms from My Account and model the break-even, or ask a SEMCO Key Account Executive.
How can we reduce our SEMCO gas bill?▾
Three levers: shop the Cost of Gas commodity via Customer Choice (the only competitive component), confirm the lowest-cost eligible rate class, and reduce therms through the C&I energy efficiency rebate program (855-298-5387). Largest industrials can also evaluate Large Volume Transportation Service.
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