Business Services Industry

NewEnergy Associates, A Siemens Company, Continues To Grow Client Base; SEMCO Energy Gas Company Selects NewEnergy Gas Supply Planning Software to Optimize Its Asset Portfolio

Business Wire, Jan 6, 2003

Business Editors

ATLANTA--(BUSINESS WIRE)--Jan. 6, 2003

NewEnergy Associates, a subsidiary of Siemens Westinghouse Power Corporation, announced today that SEMCO Energy Gas Company (SEMCO) has selected its gas supply planning software, NewEnergy SENDOUT(R).

SEMCO has selected NewEnergy's comprehensive strategic planning tool to design optimal levels of gas supply assets to meet projected load requirements. "When we began a more economic and analytical analysis of our resources," explained Walter E. Fitzgerald, Director of Gas Supply, SEMCO Energy Gas Company, "NewEnergy demonstrated how we would be able to utilize SENDOUT to reduce our gas supply costs and optimize our storage operations." Fitzgerald added, "SENDOUT has helped us to better leverage our gas supply portfolio, while providing a prudent dispatch plan considering both long-term and short-term objectives."

NewEnergy SENDOUT is a comprehensive gas supply optimization model designed for strategic planning in the increasingly competitive natural gas marketplace. It incorporates all economic and operational constraints of a complex gas supply portfolio, including supply, transportation, and storage assets. SENDOUT generates optimal gas supply plans, assuring reliable service at the lowest possible cost, including the highest possible margin for revenue opportunities. To help evaluate important asset decisions, SENDOUT provides complete economic, operational, and competitive market-based functionality. SENDOUT produces best-cost dispatch and procurement plans, and evaluates and sizes the potential resources required to meet demand requirements under various market conditions. SENDOUT is flexible and user friendly, easily interfacing with existing systems and applications, such as Lotus 1,2,3, Microsoft Excel, Microsoft Access, and Microsoft Visio, thereby simplifying data management, network visualization, and reporting requirements.

About NewEnergy Associates - a Siemens Company

NewEnergy Associates, a wholly owned subsidiary of Siemens Westinghouse Power Corporation and a division of Siemens Power Generation (PG), has established itself as the leading global provider of true end-to-end IT solutions in the energy market. NewEnergy has been specializing in the development and support of integrated business applications in excess of 25 years, with clients worldwide in electric and natural gas utilities, energy trading and retailing, power generation and project development, transmission, as well as state and national governments.

In fiscal 2002, which ended September 30, 2002, Siemens PG posted sales amounting to EUR9.4 billion and received new orders totaling EUR10.6 billion. Earnings before interest, taxes and amortization (EBITA) amounted to EUR1.582 billion. On September 30, 2002, Siemens PG had a work force of approximately 26,000 around the world.

About SEMCO Energy Gas Company

SEMCO Energy Gas Company, a division of SEMCO Energy, Inc. (NYSE: SEN), distributes natural gas to more than 269,000 residential, commercial and industrial customers in Michigan. The Alaska division, ENSTAR Natural Gas Company, distributes natural gas to more than 108,000 customers in Anchorage and surrounding areas. The Company also owns and operates businesses involved in natural gas engineering and quality assurance services, pipeline construction services, propane distribution, intrastate pipeline, and natural gas storage in various regions of the United States. In addition, it provides information technology and outsourcing services, specializing in the mid-range computer market.

News from NewEnergy Associates, a Siemens Company, is located at http://www.newenergyassoc.com/pressreleases.>