October 23, 2001 Octber 23, 2001
Washington 91-1969407
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
ITEM 5. Other Events
On October 23, 2001 the Company issued the folwing press release.
Bellevue, Wash. (October 23, 2001) - Puget Energy (NYSE: PSD) today reported 2001 third-quarter income for common stock of $4.7 million, or 5 cents per diluted share compared to income for common stock for the third quarter of 2000 of $16.8 million, or 20 cents per diluted share.
Income for common stock for the twelve months ended September 30, 2001 was $159.3 million, or $1.84 per diluted share, compared to income of $175.3 million, or $2.05 per diluted share for the same period one year ago.
“Operationally, we are succeeding in our goal of becoming the best distribution company in terms of delivering high-quality service at the lowest possible cost” said William S. Weaver, chairman, president and CEO of Puget Energy. “Financially, results reflect the adverse effects of under-recovery of the costs of power required to serve our customers,” added Weaver. “Efforts with the state to allow recovery of those costs are ongoing and critical to providing reliable service to customers in the most innovative and cost-effective manner.”
Operating revenues for the third quarter were $619.7 million, down from $979.0 million for the same period in 2000. The decrease in revenue resulted primarily from declining levels of sales of electricity at market-based prices to utilities and others. At the residential level, revenue increases resulting from an increase in the number of customers served were offset by reductions in load resulting from implementation of the company’s Personal Energy Management™ program, conservation incentives and other factors.
Utility operations and maintenance expenses of $64.2 million, compared to $55.9 million in 2000, increased primarily due to costs related to the Personal Energy Management™ energy-efficiency program and budgeted increases in non-production operations and maintenance costs.
Results for the third quarter of 2001 include approximately 8 cents of earnings related to ConneXt®, the company’s software subsidiary: a 9-cent per-share gain from the previously-announced sale of the assets ConneXt to Alliance Data Systems Corp., net of ConneXt’s operating loss of approximately 1 cent per share through the date of the sale.
Also, in the third quarter, the company’s utilities-services subsidiary, InfrastruX Group, completed its seventh acquisition, expanding its electric overhead distribution service capabilities in the South Central region of the country. With this acquisition, InfrastruX’s annualized revenues increased to approximately $225 million.
Operating revenues for the 12-month period were $4.0 billion, up from $2.8 billion for the same period in 2000. Twelve-month revenues increased primarily as a result of increased wholesale and market-based electric sales, compared to the same period one year ago.
Twelve-month utility operations and maintenance expenses for 2001 were affected by the same factors as the quarter.
A conference call for analysts to discuss with management the third-quarter results and the outlook for future performance is scheduled at 7:00 a.m. PDT, (10 a.m. EDT) Tuesday, October 23, 2001. The call will be broadcast live through a Web cast at www.pse.com in the Investors Web page. The Web cast will be archived and available for replay following the live call.
(In thousands, except per-share amounts)
3 months ended 9/301 12 months ended 9/30
--------------------------------- --------------------------------
2001 2000 2001 2000
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Operating revenues
Electric $ 474,319 $ 886,696 $ 2,968,172 $ 2,237,589
Gas 91,778 72,798 795,087 539,051
Other 53,573 19,487 188,361 33,468
--------------- --------------- ---------------- -------------
Total operating revenues 619,670 978,981 3,951,620 2,810,108
--------------- --------------- ---------------- -------------
Operating expenses
Purchased electricity 261,148 660,249 1,858,708 1,334,631
Purchased gas 50,976 35,885 514,423 271,019
Electric generation fuel 67,949 55,381 310,411 132,887
Residential exchange (19,270) (7,983) (58,060) (40,385)
Utility operations & maintenance 64,213 55,947 261,709 230,281
Other operations & maintenance 47,881 19,393 152,901 31,803
Depreciation & amortization 54,195 49,677 211,893 191,876
Conservation amortization 1,440 1,188 6,288 7,559
FAS-133 unrealized (gain)/loss 567 --- (14,494) ---
Other taxes 38,671 42,556 212,302 196,048
Federal income taxes 6,144 9,090 125,911 113,749
--------------- --------------- ---------------- -------------
Total operating expenses 573,914 921,383 3,581,992 2,469,468
--------------- --------------- ---------------- -------------
Operating income 45,756 57,598 369,628 340,640
Other income 7,892 5,273 (69) 13,528
--------------- --------------- ---------------- -------------
Income before interest charges 53,648 62,871 369,559 354,168
Interest charges 46,839 43,876 186,963 169,778
--------------- --------------- ---------------- -------------
Net income before cumulative effect of
accounting change 6,809 18,995 182,596 184,390
FAS-133 transition adjustment loss (net of tax) --- --- 14,749 ---
--------------- --------------- ---------------- -------------
Net Income 6,809 18,995 167,847 184,390
Less preferred stock dividend accruals 2,085 2,229 8,558 9,137
--------------- --------------- ---------------- -------------
Income for common stock $ 4,724 $ 16,766 $ 159,289 $ 175,253
=============== =============== ================ =============
Common shares outstanding 86,571 85,502 86,170 85,145
--------------- --------------- ---------------- -------------
Basic earnings per common share before
cumulative effect of accounting change $ 0.06 $ 0.20 $ 2.02 $ 2.06
Cumulative effect of accounting change --- --- (0.17) ---
--------------- --------------- ---------------- --------------
Basic earnings per common share $ 0.06 $ 0.20 $ 1.85 $ 2.06
Diluted earnings per common share before
cumulative effect of accounting change $ 0.05 $ 0.20 $ 2.01 $ 2.05
Cumulative effect of accounting change --- --- (0.17) ---
--------------- --------------- ---------------- -------------
Diluted earnings per common share3 $ 0.05 $ 0.20 $ 1.84 $ 2.05
1 Partial-year results may not accurately predict full-year performance, as earnings are significantly affected by weather.
2 Certain amounts previously reported have been reclassified to conform with current year presentations with no effect on net income.
3 Diluted earnings per common share include the dilutive effect of securities related to employee compensation plans.
3 months ended 9/30 12 months ended 9/30
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2001 2000 2001 2000
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Energy sales revenue
Electricity
Residential $ 105,058 $ 112,095 $ 594,051 $ 608,838
Commercial 113,372 119,644 518,374 487,753
Industrial 39,663 100,643 362,654 244,587
Transportation 351 --- 336 410
Other2 (21,805) 13,298 29,778 36,497
--------------- --------------- --------------- ---------------
Subtotal, retail sales 236,639 345,680 1,505,193 1,378,085
Sales to other utilities 237,680 541,016 1,462,979 859,504
--------------- --------------- --------------- ---------------
Total electricity sales 474,319 886,696 2,968,172 2,237,589
Gas
Residential 41,672 35,582 476,087 321,451
Commercial 35,366 24,897 249,157 160,873
Industrial 9,340 6,567 48,348 33,367
Transportation 3,133 2,997 11,557 12,086
Other2 2,267 2,755 9,938 11,274
--------------- --------------- --------------- ---------------
Total gas sales 91,778 72,798 795,087 539,051
--------------- --------------- --------------- ---------------
Total energy sales revenues $ 566,097 $ 959,494 $ 3,763,259 $ 2,776,640
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Energy sales volumes
Electricity (in mWh)
Residential 1,748,140 1,829,843 9,653,129 9,722,088
Commercial 1,890,011 1,927,699 7,942,594 7,606,809
Industrial 597,730 1,037,047 3,114,140 3,967,909
Transportation 60,272 --- 60,272 11,491
Other2 78,501 5,303 (28,496) 286,943
--------------- --------------- --------------- ---------------
Subtotal, retail sales 4,374,654 4,799,892 20,741,639 21,595,240
Sales to other utilities 2,156,417 5,538,824 10,378,520 14,198,041
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Total mWh 6,531,071 10,338,716 31,120,159 35,793,281
Gas (in 000's of therms)
Residential 35,160 39,641 509,012 491,822
Commercial 40,971 38,420 301,416 306,781
Industrial 11,143 11,497 60,377 69,101
Transportation 45,093 46,655 187,560 214,118
--------------- --------------- --------------- ---------------
Total gas volumes 132,367 136,213 1,058,365 1,081,822
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Customers served3
Electricity
Residential 829,331 813,714 822,261 807,848
Commercial 100,334 99,067 99,734 98,335
Industrial 3,998 4,076 4,036 4,142
Other 1,818 1,555 1,698 1,523
---------- --------------- --------------- ---------------
Total electricity 935,481 918,412 927,729 911,848
customers
Gas
Residential 549,890 534,042 544,877 527,156
Commercial 46,789 45,347 46,505 45,225
Industrial 2,842 2,957 2,871 3,012
Transportation 112 100 110 95
--------------- --------------- --------------- ---------------
Total gas customers 599,633 582,446 594,363 575,488
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Weather
Actual heating degree days 280 269 5,085 4,781
Normal heating degree days 279 279 4,908 4,928
1 Puget Sound Energy is the electric and natural gas utility subsidiary of Puget Energy.
2 Includes change in unbilled revenues, Conservation Trust collection, Encogen non-energy sales, sales of non-core gas supply to generators and the customers’ refunded portion of Centralia gain.
3 Quarterly data represents average served during September; 12-month data represents average for the 12 months ended.
--------Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PUGET ENERGY, INC.
James W. Eldredge
__________________________________James James W. Eldredge
Corporate Secretary and Chief Accounting Officer
Date: October 23, 2001