A mostly rate-regulated gas distribution business. Relatively small size. Higher-risk unregulated gas storage operations that contribute less than 5% of EBITDA Average management of regulatory risk. Use of the medial volatility table based on the low-risk regulated business strategy. Core financial measures that are consistent with the "significant" financial risk profile category. Assumed flat sales and minimal customer growth. The stable rating outlook on SEMCO Energy Inc. reflects Standard&Poor's Ratings Services' baseline forecast that parent AltaGas Ltd.'s consolidated financial measures will continue to improve in 2015 and 2016 as the last of the northwest hydroelectric facility (NW) projects, McLymont Creek, comes online. The outlook reflects expectations that AltaGas Ltd.'s business mix continues to diversify, and commodity exposure declines
