Edgar Filing: PUGET ENERGY INC /WA

Earnings Release Data

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

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): November 1, 2005

	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

___________

Check the appropriate box below if the Form 8−K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a−12 under the Exchange Act (17 CFR 240.14a−12)
o	Pre−commencement communications pursuant to Rule 14d−2(b) under the Exchange Act (17 CFR 240.14d−2(b))
o	Pre−commencement communications pursuant to Rule 13e−4(c) under the Exchange Act (17 CFR 240.13e−4(c))

Item 2.02 Results of Operations and Financial Condition

On November 1, 2005 the Company issued the following press release.

Puget Energy reports third-quarter 2005 earnings

Washington regulators approve all-party regulatory settlement for power cost rate case

Bellevue, Wash. (November 1, 2005) — Puget Energy (NYSE: PSD) today reported third quarter 2005 net income from continuing operations of $5.9 million, or 6 cents per diluted share, compared to net income of $9.4 million, or 9 cents per share, in the third quarter of 2004.

Puget Energy’s electric and natural gas utility, Puget Sound Energy (PSE), reported third quarter 2005 net income of $6.2 million compared to third quarter 2004 net income of $9.6 million. Higher utility operations and maintenance costs and plant depreciation expense during the third quarter 2005 offset the impact of an increase in margins from higher energy sales to electric and natural gas customers.

On October 26, 2005, Puget Energy sold 15 million shares of common stock. The $310 million in net proceeds from this issuance will be invested in PSE to repay short-term debt incurred primarily to fund the utility’s construction program.

“We’re investing in necessary energy infrastructure to provide safe, reliable service to our growing region,” said Puget Energy Chairman, President and CEO Stephen P. Reynolds. “We are also highlighting our energy efficiency programs to help our customers manage through this period of high energy prices,” added Reynolds.

“As part of our long-term resource plan, the 150 megawatt Hopkins Ridge wind power project received regulatory approval and is on track to begin serving customers by year-end. We have also begun construction on our second, larger wind power project and will begin our review of a new series of electric generating resources.” said Reynolds.

Puget Energy reaffirmed previously announced 2005 earnings guidance from continuing operations of $1.30 to $1.40 per diluted share, assuming normal weather patterns in the fourth quarter of 2005.

Third Quarter 2005 Summary for Puget Sound Energy (PSE)

·	PSE reported income for common stock of $6.2 million for the third quarter of 2005, or 6 cents per diluted share, compared with income for common stock of $9.6 million, or 10 cents per share for the same period in 2004.

PSE’s electric sales volumes to retail customers increased by 1.5 percent in the third quarter of 2005 compared to the same period in 2004. Over the last twelve months the number of PSE’s electric customers increased by 1.8 percent. PSE’s electric margin increased by $0.4 million pre-tax in the third quarter of 2005 compared to the same period in 2004.

PSE’s natural gas sales volumes to retail customers increased by 1.3 percent in the third quarter of 2005 compared to the same period a year ago. Over the last twelve months the number of PSE’s natural gas customers increased by 2.9 percent. Gas margin for the third quarter of 2005 grew by $4.4 million pre-tax compared to the same period in 2004 reflecting higher sales volumes and a March 2005 general tariff rate increase.

PSE’s utility operations and maintenance expenses increased by $14.5 million pre-tax in the third quarter of 2005 compared to the same period in 2004. The increase in 2005 was largely driven by higher planned maintenance costs at company-owned energy production and delivery facilities and employee pension and benefit expense.

·	PSE’s depreciation and amortization expenses increased by $3.0 million pre-tax in the third quarter of 2005 compared to the third quarter of 2004 reflecting the addition of new utility infrastructure.

InfrastruX Group (InfrastruX)

Puget Energy reports the financial results of InfrastruX in 2005 as discontinued operations, following the accounting guidance of FAS-144 “Accounting for the Impairment or Disposal of Long-Lived Assets”. For additional information regarding InfrastruX’s financial performance during the third quarter 2005 please refer to Puget Energy’s Form 10-Q for the period ended September 30, 2005.

Puget Energy Third Quarter 2005 vs. Third Quarter 2004 EPS Reconciliation
	Cents per diluted share
Puget Energy Q3 2004 Reported Earnings from Continuing Operations	$	0.09
Increase in utility energy margins in 2005		0.03
Increase in utility O&M expense in 2005		(0.08	)
Increase in utility depreciation expense in 2005		(0.02	)
Decrease in property and income taxes		0.02
All other variances, net		0.02
Puget Energy Q3 2005 Earnings from Continuing Operations	$	0.06

Form 10-Q Quarterly Report for the Third Quarter of 2005

Puget Energy provided additional information on its third quarter 2005 financial results in a Form 10-Q, filed with the Securities and Exchange Commission on November 1, 2005. A copy of the Form 10-Q is available through the SEC’s web site at www.sec.gov or at the Company’s web site at www.pugetenergy.com. Investors are encouraged to read the financial statements and disclosures contained in the Form 10-Q filing.

Calendar Year 2006 Earnings Guidance

Puget Energy today reaffirmed its previously announced earnings guidance for calendar year 2006 of $1.40 to $1.55 per diluted share from continuing operations, assuming normal weather conditions.

Third Quarter 2005 Earnings Presentation Webcast

A management discussion of the third quarter results is scheduled for 10 a.m. ET (7 a.m. PT) on Wednesday, November 2, 2005. A live webcast of the presentation can be accessed through the "Shareholders and Analysts" section at www.pugetenergy.com. The webcast will be archived and available for replay following the live broadcast through midnight (ET) on Wednesday, November 16, 2005. A recorded replay of the conference call also will be available two hours after completion on November 2 through midnight (ET) November 16, 2005. To access the recording, dial 1-888-286-8010, and enter the conference I.D. number 39996436.

Puget Energy is an energy services holding company that conducts all of its operations through its subsidiaries, PSE and InfrastruX Group. PSE is a regulated utility company that generates, purchases and sells electricity; and purchases, transports and sells natural gas. The service territory of PSE covers approximately 6,000 square miles, principally in the Puget Sound region of Washington State. InfrastruX specializes in contracting services to other gas and electric utilities primarily in the Midwest, Texas, and the south-central and eastern United States regions.

CAUTIONARY STATEMENT: Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, among which include Puget Energy's anticipated 2005 and 2006 financial results, including its earnings guidance. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect actual results include, among others, governmental policies and regulatory actions, including those of the WUTC, and weather conditions. More information about these and other factors that potentially could affect the company’s financial results is included in Puget Energy's and PSE's most recent annual report on Form 10-K, quarterly report on Form 10-Q and in their other public filings filed with the Securities and Exchange Commission. Except as required by law, Puget Energy and PSE undertake no obligation to update any forward-looking statements.

PUGET ENERGY -- SUMMARY INCOME STATEMENT
(In thousands, except per-share amounts)
	Unaudited						Unaudited
	Three months ended 9/30¹						Nine months ended 9/30
	2005			2004			2005			2004

Operating revenues
Electric	$	375,035		$	322,669		$	1,140,545		$	1,018,256
Gas		111,042			89,432			594,737			484,603
Other		4,306			2,925			6,866			4,005
Total operating revenues		490,383			415,026			1,742,148			1,506,864
Operating expenses
Purchased electricity		200,861			147,589			587,983			517,803
Electric generation fuel		21,058			25,130			54,400			60,132
Residential exchange		(34,525	)		(34,014	)		(126,676	)		(123,799	)
Purchased gas		59,151			44,574			359,037			270,683
Unrealized net (gain) loss on derivative instruments		477			1,894			395			(1,042	)
Utility operations & maintenance		81,645			67,093			240,299			214,149
Other operations & maintenance		745			529			2,045			1,513
Depreciation & amortization		60,550			57,598			178,284			170,036
Conservation amortization		5,633			4,747			16,746			17,746
Taxes other than income taxes		44,784			42,710			165,005			149,486
Income taxes		2,476			6,958			54,649			40,621
Total operating expenses		442,855			364,808			1,532,167			1,317,328
Operating income		47,528			50,218			209,981			189,536
Other income (deductions):
Other income		1,422			356			4,184			1,994
Interest Charges:
AFUDC		2,680			1,650			6,183			3,807
Interest expense		(45,695	)		(42,754	)		(130,307	)		(128,796	)
Mandatorily redeemable securities interest expense		(23	)		(23	)		(68	)		(68	)
Income from continuing operations		5,912			9,447			89,973			66,473
Income (loss) from discontinued operations, net of tax		(1	)		1,677			908			4,237
Net Income	$	5,911		$	11,124		$	90,881		$	70,710

Common shares outstanding		100,371			99,580			100,160			99,373
Diluted shares outstanding		100,964			100,043			100,754			99,836
Basic earnings per common share from
continuing operations	$	0.06		$	0.09		$	0.90		$	0.67
Basic earnings from discontinued operations		--			0.02			0.01			0.04
Basic earnings per common share	$	0.06		$	0.11		$	0.91		$	0.71

Diluted earnings per common share from
continuing operations	$	0.06		$	0.09		$	0.89		$	0.67
Diluted earnings from discontinued operations		--			0.02			0.01			0.04
Diluted earnings per common share²	$	0.06		$	0.11		$	0.90		$	0.71

¹ Partial-year results may not accurately predict full-year performance, as earnings are significantly affected by weather.

² Diluted earnings per common share include the dilutive effect of securities related to employee compensation plans.

PUGET SOUND ENERGY -- UTILITY OPERATING DATA
	Three months ended 9/30				Nine months ended 9/30
	2005		2004		2005			2004
*Energy sales revenues* ($ in thousands; unaudited)
Electricity
Residential	$	131,719	$	122,397	$	496,517		$	459,058
Commercial		153,138		143,711		461,073			428,877
Industrial		23,667		22,165		68,902			65,318
Other retail sales, including change in unbilled		6,810		5,379		(7,584	)		(11,199	)
Subtotal, retail sales		315,334		293,652		1,018,908			942,054
Transportation, including change in unbilled		1,654		2,728		6,741			7,342
Sales to other utilities & marketers		40,626		16,558		73,818			38,793
Other ¹		17,421		9,731		41,078			30,067
Total electricity sales		375,035		322,669		1,140,545			1,018,256
Gas
Residential		57,260		47,100		360,660			295,381
Commercial		37,252		29,047		178,878			144,155
Industrial		9,221		6,864		32,247			25,436
Subtotal, retail sales		103,733		83,011		571,785			464,972
Transportation		3,332		3,133		9,944			9,679
Other		3,977		3,288		13,008			9,952
Total gas sales		111,042		89,432		594,737			484,603
Total energy sales revenues	$	486,077	$	412,101	$	1,735,282		$	1,502,859
*Energy sales volumes* (Unaudited)
Electricity (in mWh)
Residential		1,957,275		1,930,772		7,515,907			7,367,917
Commercial		2,168,625		2,146,246		6,432,239			6,314,739
Industrial		352,808		351,834		1,014,948			1,009,456
Other, including change in unbilled		51,992		33,569		(229,003	)		(269,805	)
Subtotal, retail sales		4,530,700		4,462,421		14,734,091			14,422,307
Transportation, including change in unbilled		516,588		530,204		1,516,519			1,473,619
Sales to other utilities & marketers		705,593		379,280		1,498,527			930,570
Total mWh		5,752,881		5,371,905		17,749,137			16,826,496
Gas (in 000's of therms)
Residential		43,750		43,403		322,792			315,128
Commercial		36,551		35,067		183,011			182,748
Industrial		10,052		9,206		34,897			34,143
Transportation		44,306		45,238		145,870			148,834
Total gas volumes		134,659		132,914		686,570			680,853
*Margins* ²($ in thousands; unaudited)
Electric	$	149,627	$	149,271	$	503,605		$	451,997
Gas		38,793		34,349		171,971			163,035
Customers served ³(Unaudited)
Electricity
Residential		894,929		879,742		891,508			875,579
Commercial		112,428		109,781		111,628			108,939
Industrial		3,903		3,957		3,914			3,993
Other		2,462		2,221		2,406			2,170
Transportation		17		17		17			17
Total electricity customers		1,013,739		995,718		1,009,473			990,698
Gas
Residential		629,963		611,534		627,123			607,654
Commercial		50,637		49,591		50,564			49,458
Industrial		2,674		2,708		2,691			2,727
Transportation		130		129		130			129
Total gas customers		683,404		663,962		680,508			659,968
*Weather* (Unaudited)
Actual heating degree days		212		219		2,811			2,779
Normal heating degree days ⁴		238		238		3,068			3,068

¹ Includes sales of non-core gas supplies.

² Electric margin is electric sales to retail and transportation customers less the cost of generating and purchasing electric energy sold to customers, including transmission costs, to bring electric energy to PSE's service territory. Gas margin is gas sales to retail and transportation customers less the cost of gas purchased, including gas transportation costs, to bring gas to PSE's service territory.

³ Customers represents aerage served during the period.

⁴ Seattle-Tacoma Airport statistics reported by NOAA which are based on a 30-year average, 1971-2000. Heating degree days meaure how far the daily average temperature falls below 65 degrees. Heating degree days in 2004 are adjusted for leap year by adding the February 28th heating degree day amount.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, 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.

	By: /s/ James W. Eldredge
Dated: November 1, 2005	James W. Eldredge Vice President, Corporate Secretary and Chief Accounting Officer