Xcel Energy has agreed to sell its natural gas operations in Michigan to SEMCO ENERGY Gas Company and its electric operations to Upper Peninsula Power Company (UPPCO), subject to state and federal regulatory approvals.

The transaction will transfer approximately 6,000 natural gas customers to SEMCO and 9,000 electricity customers to UPPCO across Gogebic and Ontonagon counties in Michigan’s Upper Peninsula. 

The companies expect the deal to close in 2027.

The sale is intended to place customers with utilities focused on serving Michigan and the Upper Peninsula, leveraging their regional experience and local infrastructure investments.

Customer service is expected to continue without interruption during the transition. 

There will be no immediate changes to billing, rates or customer service processes, and customers will receive advance notice of any future changes.

The companies will work with regulators, employees and community stakeholders to coordinate the transition.