FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 18, 2004
| Exact name of registrant as specified | I.R.S. | |
| in its charter, state of incorporation, | Employer | |
| Commission | address of principal executive offices, | Identification |
| File Number | Telephone | Number |
| 1-16305 | PUGET ENERGY, INC. | 91-1969407 |
| A Washington Corporation. | ||
| 10885 - N.E. 4th Street, Suite 1200 | ||
| Bellevue, Washington 98004-5591 | ||
| (425) 454-6363 |
| 1-4393 | PUGET SOUND ENERGY, INC. | 91-0374630 |
| A Washington Corporation | ||
| 10885 - N.E. 4th Street, Suite 1200 | ||
| Bellevue, Washington 98004-5591 | ||
| (425) 454-6363 |
On October 24, 2003, Puget Sound Energy, Inc. (PSE) filed a request with the Washington Utilities and Transportation Commission (WUTC) to increase its electric rates by $64.4 million to recover higher projected power supply costs. The proposed rate increase included, among other things, the recovery of the projected costs associated with PSE’s proposed acquisition of a 49.85% share of Frederickson Power LP’s Frederickson 1 generation facility (250 MW) located near Tacoma, Washington.
On April 7, 2004, the WUTC issued an order approving PSE’s acquisition of the 49.85% share of Frederickson Power LP’s Frederickson 1 generation facility in the power cost only rate case. In the order, the WUTC determined that the Frederickson 1 acquisition was prudently made at a reasonable cost. The costs associated with the acquisition, including projected baseline gas costs for the rate period were approved for recovery through rates.
On May 13, 2004, the WUTC issued a second order in PSE’s power cost only rate case. In the order, the WUTC determined that PSE did not prudently manage gas costs for the Tenaska electric generation plant, ordered that PSE adjust its Power Cost Adjustment (PCA) deferral account to reflect a one-time pre-tax disallowance of $25.6 million, and established guidelines for future recovery of Tenaska costs. The order also reflects the WUTC’s final approval of other adjustments to the power costs that result in an increase of cost recovery in rates of $44.1 million, which includes the costs of the Frederickson 1 generation plant acquisition approved last month. The WUTC order is attached as Exhibit 99.1.
PSE is disappointed in the WUTC’s findings regarding Tenaska’s fuel management and the disallowance. Based upon review of the order, PSE is currently unable to determine the accounting ramifications of the WUTC’s actions and how specifically the PCA accounts will be impacted. Consequently, PSE will seek clarification and reconsideration of parts of the WUTC’s ruling at a post order conference and by written motion that must be filed with the WUTC no later than May 24, 2004. PSE will request that the WUTC rule on the motion expeditiously. Generally, the WUTC rules on such motions within 20 days.
| Exhibit | 99.1 | Washington Commission order dated May 13, 2004 approving power cost only rate increase and disallowing portion of Tenaska generating costs. |
Statement Regarding Forward-Looking
Statements
The Company is including the
following cautionary statement in this Current Report on Form 8-K to take advantage of the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any
forward-looking statements made by or on behalf of the Company. Words such as
“anticipate,” “believe,” “expect,” “future,” and
“intend” and similar expressions are used to identify forward-looking
statements. However, these words are not the exclusive means of identifying such
statements. In addition, any statements that refer to expectations, projections, or other
characterizations of future events or circumstances are forward-looking statements.
Forward-looking statements involve risks and uncertainties which could cause actual
results or outcomes to differ materially from those expressed. More information regarding
factors that potentially could affect the Company’s financial results is included in
the Company’s most recent quarterly report on Form 10-Q and annual report on Form
10-K filed with the Securities and Exchange Commission. Any forward-looking statement
speaks only as of the date on which such statement is made, and, except as required by
law, the Company undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such statement is made or to
reflect the occurrence of unanticipated events.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| PUGET ENERGY, INC. |
| PUGET SOUND ENERGY, INC. |
| /s/ James W. Eldredge |
| James W. Eldredge |
| Corporate Secretary and Chief Accounting Officer |
| Date: May 18, 2004 |