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): April 17, 2002
| 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. | ||
| 411 - 108th Avenue N.E. | ||
| Bellevue, Washington 98004-5515 | ||
| (425) 454-6363 |
ITEM 5. Other Events
On April 17, 2002 the Company issued the following press release.
Bellevue, Wash. (April 17, 2002)-- Puget Energy (NYSE: PSD) today reported 2002 first-quarter income for common stock of $24.5 million, or 28 cents per diluted share, slightly better than Wall Street's expectations of 25 cents per share.
The first quarter's results are compared to $70.1 million, or 81 cents per diluted share for the first quarter in 2001. Twelve-month income for common stock for the period ended March 31, 2002 was $52.8 million, or 61 cents per diluted share, compared to income of $179 million, or $2.08 per diluted share, in the year-ago period.
"As was expected, the first-quarter results reflect the continued under-recovery of net power costs for our Puget Sound Energy (PSE) utility subsidiary," said Puget Energy President and CEO Stephen P. Reynolds. "Fortunately, we've worked out a plan with state regulators that will enable the company to restore its financial strength and improve results going forward."
PSE last month reached a settlement with the Washington Utilities and Transportation Commission authorizing a $25 million increase in PSE's general electric rates during the second quarter of 2002.
Reynolds cited four additional factors that help "set the course for strong performance in the future": fast-track completion of PSE's general rate case, expected by July 1, 2002; a planned three-year improvement in the equity component of PSE's capital structure and pay-down of corporate debt; ongoing, steady growth within PSE's service territory; and growth of Puget Energy's non-regulated business, InfrastruX Group, which provides construction and maintenance services primarily to gas and electric utilities.
Puget Energy - 2
Lower operating revenues of $757 million, compared to $1.1 billion for the same period in 2001, were primarily due to the lower market prices and volumes related to PSE's electricity sales to industrial customers and surplus electricity sales. Also, electric margins were down substantially, mainly due to the under-recovery of increased power-supply costs for PSE. Cooler temperatures in the first quarter of 2002 compared to the comparable period for 2001 resulted in increased gas margins.
Revenues for the non-regulated InfrastruX Group subsidiary were $60.8 million, up $32.2 million from the same period in 2001.
While utility operations and maintenance expenses are up compared to the comparable period one year ago, the results are substantially below budget, reflecting continued cost-containment efforts.
Utility operations and maintenance expenses of $65.9 million, compared to $61.2 million in 2001, increased primarily due to one-time costs related the transition of employees responsible for the construction and maintenance of PSE's power-distribution system to a service provider under contract with PSE.
Other operations and maintenance expenses increased reflecting growth of InfrastruX Group.
Twelve-month revenues and costs for 2001 were affected by the same factors for the quarter.
Operating revenues for the 12-month period were $3 billion, compared to $3.9 billion for the same period in 2001.
Utility operations and maintenance expenses for the 12-month period reflect a full twelve months of the Personal Energy Management™ energy-efficiency program, increases in generation-related operating and maintenance costs as well as one-time expenses related to the transition of employees responsible for the construction and maintenance of PSE’s power-distribution system to a third-party service provider.
Puget Energy - 3
A conference call for analysts to discuss with management the first-quarter results and the outlook for future performance is scheduled at 10 a.m. EDT (7 a.m. PDT) Wednesday, April 17, 2002. The call will be broadcast live through a Web cast at www.pse.com by accessing the Investors section of the Web site. The Web cast will be archived and available for replay following the live call. A recorded replay of the conference call also will be available two hours after completion of the conference on April 17 through midnight (EDT) Fri., April 19, 2002. To access the recording, dial 1-800-428-6051, and enter the conference identification number at 238134.
PUGET ENERGY -- SUMMARY INCOME STATEMENT
- ----------------------------------------
(In thousands, except per-share amounts, Unaudited)
Three months ended 03/31(1) Twelve months ended 03/31
2002 2001(2) 2002 2001(2)
Operating revenues
Electric $ 381,534 $ 765,007 $ 1,969,185 $ 3,098,346
Gas 314,491 304,270 825,292 711,111
Other 61,320 50,587 216,995 104,856
------------- ------------- ------------- -------------
Total operating revenues 757,345 1,119,864 3,011,472 3,914,313
------------- ------------- ------------- -------------
Operating expenses
Electric generation fuel 65,180 102,384 244,201 264,613
Residential exchange (42,747) (16,741) (101,870) (45,542)
FAS-133 unrealized (gain)/loss (11,497) 26,466 (49,145) 26,466
Utility operations & maintenance 65,941 61,179 270,550 246,424
Other operations & maintenance 54,103 30,140 180,694 86,978
Depreciation & amortization 55,949 53,128 220,361 203,756
Conservation amortization 2,165 1,601 7,057 5,812
Other taxes 66,120 70,081 210,453 214,796
Federal income taxes 20,490 54,260 44,236 130,513
------------- -------------- ------------ -------------
Total operating expenses 680,774 989,323 2,768,319 3,535,786
------------- -------------- ------------ -------------
Operating income 76,571 130,541 243,153 378,527
Other income (net of tax) 384 1,941 12,968 2,612
------------- -------------- ------------ -------------
Income before interest charges
& minority interest 76,955 132,482 256,121 381,139
Interest charges 50,398 45,435 195,023 178,453
Minority interest 79 --- 79 ---
------------- -------------- ------------ -------------
Net income before cumulative effect of
accounting change 26,478 87,047 61,019 202,686
FAS-133 transition adjustment
loss (net of tax) --- 14,749 --- 14,749
------------- -------------- ------------ -------------
Net Income 26,478 72,298 61,019 187,937
Less preferred stock dividend accruals 2,012 2,157 8,267 8,849
------------- -------------- ------------ -------------
Income for common stock $ 24,466 $ 70,141 $ 52,752 $ 179,088
============= ============== ============ =============
Common shares outstanding 87,175 86,036 86,729 85,654
------------- -------------- ------------ -------------
Basic earnings per common share before cumulative
effect of accounting change $ 0.28 $ 0.99 $ 0.61 $ 2.26
Cumulative effect of accounting change --- (0.17) --- (0.17)
------------- -------------- ------------ -------------
Basic earnings per common share $ 0.28 $ 0.82 $ 0.61 $ 2.09
Diluted earnings per common share before cumulative
effect of accounting change $ 0.28 $ 0.98 $ 0.61 $ 2.25
Cumulative effect of accounting change --- (0.17) --- (0.17)
------------- -------------- ------------ -------------
Diluted earnings per common share(3)$ 0.28 $ 0.81 $ 0.61 $ 2.08
======================================================
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.
PUGET SOUND ENERGY(1) -- UTILITY OPERATING DATA
- ---------------------------------------------
Three months ended 03/31 Twelve months ended 03/31
------------------------------ ------------------------------
2002 2001 2002 2001
------------------------------ ------------------------------
Energy sales revenues
($ in thousands, Unaudited)
Electricity
Residential $ 203,706 $ 202,527 $ 600,785 $ 600,992
Commercial 143,400 151,326 512,775 502,918
Industrial 23,632 147,541 195,460 398,670
Other retail sales(2) (15,849) (79,559) (9,685) 23,630
--------------- ------------- --------------- -------------
Subtotal, retail sales 354,889 421,835 1,299,335 1,526,210
Transportation 3,563 --- 6,100 ---
Sales to other utilities 36,198 337,166 720,408 1,524,277
Other(3) (13,116) 6,006 (56,658) 47,861
--------------- ------------- --------------- -------------
Total electricity sales 381,534 765,007 1,969,185 3,098,348
Gas
Residential 200,288 188,420 498,629 432,021
Commercial 95,100 95,717 256,243 216,810
Industrial 13,368 14,630 48,190 39,859
--------------- ------------- --------------- -------------
Subtotal, retail sales 308,756 298,767 803,062 688,690
Transportation 2,931 2,824 11,887 11,663
Other 2,804 2,679 10,343 10,758
--------------- ------------- --------------- -------------
Total gas sales 314,491 304,270 825,292 711,111
--------------- ------------- --------------- -------------
Total energy sales revenues $ 696,025 $ 1,069,277 $ 2,794,477 $ 3,809,459
- -----------------------------------------------------------------------------------------------
Energy sales volumes
Electricity (in mWh)
Residential 3,234,835 3,149,155 9,640,944 9,728,097
Commercial 2,110,029 2,146,684 7,916,510 7,760,749
Industrial 346,042 739,208 2,147,556 3,782,213
Other(2) (198,840) (376,502) 54,020 91,673
--------------- ------------- --------------- -------------
Subtotal, retail sales 5,492,066 5,658,545 19,759,030 21,362,732
Transportation 553,874 --- 861,937 ---
Sales to other utilities 1,352,813 1,829,605 7,018,028 14,557,178
--------------- ------------- --------------- -------------
--------------- ------------- --------------- -------------
Total mWh 7,398,753 7,488,150 27,638,995 35,919,910
Gas (in 000's of therms)
Residential 217,621 194,463 517,807 505,705
Commercial 113,630 109,000 302,386 299,689
Industrial 15,684 16,956 56,704 61,629
Transportation 54,743 48,969 193,970 194,415
--------------- ------------- --------------- -------------
Total gas volumes 401,678 369,388 1,070,867 1,061,438
- -----------------------------------------------------------------------------------------------
Customers served(4)
Electricity
Residential 837,663 821,533 830,169 814,981
Commercial 101,992 99,981 100,353 99,207
Industrial 3,949 4,037 3,989 4,079
Other 1,866 1,685 1,808 1,583
Transportation 15 --- 11 ---
--------------- ------------- --------------- -------------
Total electricity 945,485 927,236 936,330 919,850
customers
Gas
Residential 561,065 545,051 552,360 536,783
Commercial 46,514 47,002 46,756 45,819
Industrial 2,793 2,862 2,819 2,948
Transportation 110 112 111 103
--------------- ------------- --------------- -------------
Total gas customers 610,482 595,027 602,046 585,653
- -----------------------------------------------------------------------------------------------
Weather
Actual heating degree days 2,095 1,979 5,109 4,950
Normal heating degree days 1,975 1,975 4,908 4,908
1 Puget Sound Energy is the electric and natural gas utility subsidiary of Puget
Energy.
2 Includes change in unbilled revenues.
3 Includes Conservation Trust collection and sales of non-core gas supply to
generators.
4 Quarterly data represents average served during March; 12-month data represents average for
the 12 months ended.
PUGET ENERGY -- SEGMENT RESULTS
- -------------------------------
(In thousands, Unaudited)
Puget Sound Puget Energy
Three months ended 3/31/02 Energy InfrastruX Other(1) Total
- -----------------------------------------------------------------------------------------------
Revenues $ 696,025 $ 60,761 $ 559 $ 757,345
Depreciation and amortization 53,674 2,271 4 55,949
Federal income tax 19,753 526 211 20,490
Operating income 74,474 1,986 111 76,571
Interest charges, net of AFUDC 49,343 1,055 - 50,398
Net income 25,619 1,005 (146) 26,478
Total assets 5,132,987 279,030 119,053 5,531,070
- -----------------------------------------------------------------------------------------------
Three months ended 3/31/01
- -----------------------------------------------------------------------------------------------
Revenues $ 1,069,276 $ 28,541 $ 22,047 $ 1,119,864
Depreciation and amortization 51,482 1,643 3 53,128
Federal income tax 48,232 (543) 6,571 54,260
Operating income 117,828 444 12,269 130,541
Interest charges, net of AFUDC 45,220 109 106 45,435
Net income 60,419 (567) 12,446 72,298
Total assets 5,655,740 154,569 137,246 5,947,555
- -----------------------------------------------------------------------------------------------
Twelve months ended 03/31/02
- -----------------------------------------------------------------------------------------------
Revenues $ 2,794,477 $ 206,007 $ 10,988 $ 3,011,472
Depreciation and amortization 210,897 9,449 15 220,361
Federal income tax 38,294 3,425 2,517 44,236
Operating income 230,400 10,243 2,510 243,153
Interest charges, net of AFUDC 190,253 4,602 168 195,023
Net income 45,337 4,090 11,592 61,019
Total assets 5,132,987 279,030 119,053 5,531,070
- -----------------------------------------------------------------------------------------------
Twelve months ended 03/31/01
- -----------------------------------------------------------------------------------------------
Revenues $ 3,809,457 $ 73,539 $ 31,317 $ 3,914,313
Depreciation and amortization 199,829 3,910 17 203,756
Federal income tax 125,988 (128) 4,653 130,513
Operating income 364,983 1,309 12,235 378,527
Interest charges, net of AFUDC 176,830 297 1,326 178,453
Net income 116,906 (1,110) 72,141 187,937
Total assets 5,655,740 154,569 137,246 5,947,555
- -----------------------------------------------------------------------------------------------
1 Includes the non-regulated subsidiaries of Puget Sound Energy, principally Puget Western,
Inc., a real estate company and miscellaneous holding company expenses.
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.
/s/ James W. Eldredge
James W. Eldredge
Corporate Secretary and Chief Accounting Officer
Date: April 17, 2002