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.
