Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'PUGET ENERGY INC /WA | ' |
Entity Central Index Key | '0001085392 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | 200 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
PUGET SOUND ENERGY, INC. | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'PUGET SOUND ENERGY INC | ' |
Entity Central Index Key | '0000081100 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | ' | $0 |
Entity Common Stock, Shares Outstanding | 85,903,791 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Document Type | '10-K | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating revenue: | ' | ' | ' |
Electric | $2,156,920 | $2,128,230 | $2,147,220 |
Gas | 1,028,357 | 1,086,095 | 1,168,850 |
Other | 2,020 | 831 | 2,695 |
Total operating revenue | 3,187,297 | 3,215,156 | 3,318,765 |
Energy costs: | ' | ' | ' |
Purchased electricity | 541,905 | 622,288 | 771,405 |
Electric generation fuel | 261,332 | 204,956 | 199,471 |
Residential exchange | -81,053 | -73,555 | -71,147 |
Purchased gas | 488,201 | 538,612 | 622,088 |
Unrealized (gain) loss on derivative instruments, net | -102,744 | -133,606 | 11,494 |
Utility operations and maintenance | 529,939 | 512,765 | 497,921 |
Non-utility expense and other | -3,555 | 814 | 9,442 |
Depreciation | 364,324 | 337,952 | 299,597 |
Amortization | 24,631 | 55,819 | 72,381 |
Conservation Amortization | 105,897 | 114,177 | 107,646 |
Taxes other than income taxes | 303,260 | 319,399 | 323,527 |
Total operating expenses | 2,432,137 | 2,499,621 | 2,843,825 |
Operating income (loss) | 755,160 | 715,535 | 474,940 |
Other income (deductions): | ' | ' | ' |
Other income | 38,693 | 49,069 | 58,052 |
Other expense | -7,134 | -11,770 | -5,380 |
Non-hedged interest rate swap expense | 2,420 | -4,288 | -28,601 |
Interest charges: | ' | ' | ' |
AFUDC | 11,261 | 22,216 | 29,949 |
Interest expense | -392,264 | -392,216 | -371,910 |
Income (loss) before income taxes | 408,136 | 378,546 | 157,050 |
Income tax (benefit) expense | 122,408 | 104,725 | 33,760 |
Net income (loss) | 285,728 | 273,821 | 123,290 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Operating revenue: | ' | ' | ' |
Electric | 2,156,920 | 2,128,230 | 2,147,220 |
Gas | 1,028,357 | 1,086,095 | 1,168,850 |
Other | 2,058 | 1,934 | 3,733 |
Total operating revenue | 3,187,335 | 3,216,259 | 3,319,803 |
Energy costs: | ' | ' | ' |
Purchased electricity | 541,905 | 622,288 | 771,983 |
Electric generation fuel | 261,332 | 204,956 | 199,471 |
Residential exchange | -81,053 | -73,555 | -71,147 |
Purchased gas | 488,201 | 538,612 | 622,088 |
Unrealized (gain) loss on derivative instruments, net | -98,880 | -119,120 | 54,146 |
Utility operations and maintenance | 529,939 | 512,765 | 497,921 |
Non-utility expense and other | 12,205 | 9,977 | 11,147 |
Depreciation | 364,324 | 337,952 | 299,597 |
Amortization | 24,631 | 55,819 | 72,381 |
Conservation Amortization | 105,897 | 114,177 | 107,646 |
Taxes other than income taxes | 303,260 | 319,399 | 323,527 |
Total operating expenses | 2,451,761 | 2,523,270 | 2,888,760 |
Operating income (loss) | 735,574 | 692,989 | 431,043 |
Other income (deductions): | ' | ' | ' |
Other income | 38,690 | 49,056 | 58,041 |
Other expense | -7,134 | -11,770 | -5,380 |
Interest charges: | ' | ' | ' |
AFUDC | 11,261 | 22,216 | 29,949 |
Interest expense | -261,264 | -246,811 | -231,212 |
Interest expense on parent note | -112 | -202 | -204 |
Income (loss) before income taxes | 517,015 | 505,478 | 282,237 |
Income tax (benefit) expense | 160,886 | 149,308 | 78,117 |
Net income (loss) | $356,129 | $356,170 | $204,120 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Parent [Line Items] | ' | ' | ' |
Net income (loss) | $285,728 | $273,821 | $123,290 |
Other comprehensive income (loss): | ' | ' | ' |
Other Comprehensive Income Reclassification Of Net Unrealized Gain Loss On Interest Rate Swaps During Period Net Of Tax | 2,928 | 11,577 | 25,443 |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 77,579 | -13,870 | -54,826 |
Reclassification of net unrealized loss on energy derivative instruments settled during the period, net of tax | 37 | 371 | 1,545 |
Other comprehensive income (loss) | 80,544 | -1,922 | -27,838 |
Comprehensive income (loss) | 366,272 | 271,899 | 95,452 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Parent [Line Items] | ' | ' | ' |
Net income (loss) | 356,129 | 356,170 | 204,120 |
Other comprehensive income (loss): | ' | ' | ' |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 88,593 | -7,294 | -52,927 |
Reclassification of net unrealized loss on energy derivative instruments settled during the period, net of tax | 2,549 | 8,358 | 21,678 |
Amortization of treasury interest rate swaps to earnings, net of tax | 317 | 317 | 317 |
Other comprehensive income (loss) | 91,459 | 1,381 | -30,932 |
Comprehensive income (loss) | $447,588 | $357,551 | $173,188 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other comprehensive income (loss): | ' | ' | ' |
Net tax on reclassification of net unrealized loss on interest rate swaps during the period, tax | $1,577 | $6,234 | $13,700 |
Net unrealized gain (loss) from pension and postretirement plans, tax | 41,773 | -7,469 | -29,522 |
Reclassification of net unrealized loss on energy derivative instruments during the period, tax | 20 | 200 | 832 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Other comprehensive income (loss): | ' | ' | ' |
Net unrealized gain (loss) from pension and postretirement plans, tax | 47,705 | -3,911 | -28,474 |
Reclassification of net unrealized loss on energy derivative instruments during the period, tax | 1,373 | 4,500 | 11,673 |
Amortization of treasury interest rate swaps to earnings, tax | $171 | $171 | $171 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Utility Plant [Abstract] | ' | ' |
Electric plant | $7,019,853,000 | $6,750,400,000 |
Gas plant | 2,528,629,000 | 2,385,784,000 |
Common plant | 504,036,000 | 487,931,000 |
Less: Accumulated depreciation and amortization | -1,373,178,000 | -1,067,424,000 |
Net utility plant | 8,679,340,000 | 8,556,691,000 |
Other property and investments: | ' | ' |
Goodwill | 1,656,513,000 | 1,656,513,000 |
Other property and investments | 100,332,000 | 112,367,000 |
Total other property and investments | 1,756,845,000 | 1,768,880,000 |
Current assets: | ' | ' |
Cash and cash equivalents | 44,302,000 | 135,542,000 |
Restricted cash | 7,171,000 | 3,700,000 |
Accounts receivable, net of allowance for doubtful accounts | 408,512,000 | 321,480,000 |
Unbilled revenue | 219,884,000 | 204,359,000 |
Materials and supplies, at average cost | 88,140,000 | 82,353,000 |
Fuel and gas inventory, at average cost | 66,717,000 | 88,953,000 |
Unrealized gain on derivative instruments | 18,867,000 | 6,869,000 |
Taxes | 297,000 | 4,796,000 |
Prepaid expense and other | 18,787,000 | 13,571,000 |
Power contract acquisition adjustment gain | 48,509,000 | 50,785,000 |
Deferred income taxes | 86,004,000 | 53,437,000 |
Total current assets | 1,007,190,000 | 965,845,000 |
Other long-term and regulatory assets: | ' | ' |
Regulatory asset for deferred income taxes | 146,867,000 | 119,844,000 |
Power cost adjustment mechanism | 0 | 3,773,000 |
Regulatory assets related to power contracts | 33,753,000 | 37,655,000 |
Other regulatory assets | 749,382,000 | 815,785,000 |
Unrealized gain on derivative instruments | 7,733,000 | 14,814,000 |
Power contract acquisition adjustment gain | 394,556,000 | 456,225,000 |
Other | 130,909,000 | 95,763,000 |
Total other long-term and regulatory assets | 1,463,200,000 | 1,543,859,000 |
Total assets | 12,906,575,000 | 12,835,275,000 |
Common shareholder’s equity: | ' | ' |
Common stock | 0 | 0 |
Additional paid-in capital | 3,308,957,000 | 3,308,957,000 |
Earnings reinvested in the business | 323,007,000 | 208,100,000 |
Accumulated other comprehensive income (loss), net of tax | 47,715,000 | -32,829,000 |
Total common shareholder’s equity | 3,679,679,000 | 3,484,228,000 |
Long-term debt: | ' | ' |
First mortgage bonds and senior notes | 3,351,412,000 | 3,351,412,000 |
Pollution control bonds | 161,860,000 | 161,860,000 |
Junior subordinated notes | 250,000,000 | 250,000,000 |
Long-term debt | 1,699,000,000 | 1,834,000,000 |
Debt discount and other | -229,796,000 | -264,072,000 |
Total long-term debt | 5,232,476,000 | 5,333,200,000 |
Total capitalization | 8,912,155,000 | 8,817,428,000 |
Current liabilities: | ' | ' |
Accounts payable | 296,681,000 | 321,960,000 |
Short-term debt | 162,000,000 | 181,000,000 |
Current maturities of long-term debt | 0 | 13,000,000 |
Purchased gas adjustment liability | 5,938,000 | 32,587,000 |
Accrued expenses: | ' | ' |
Taxes | 109,559,000 | 95,623,000 |
Salaries and wages | 38,491,000 | 38,438,000 |
Interest | 79,303,000 | 82,262,000 |
Unrealized loss on derivative instruments | 48,049,000 | 177,519,000 |
Power contract acquisition adjustment loss | 3,937,000 | 3,902,000 |
Other | 60,335,000 | 72,594,000 |
Total current liabilities | 804,293,000 | 1,018,885,000 |
Other Long-term and regulatory liabilities: | ' | ' |
Deferred income taxes | 1,487,005,000 | 1,261,636,000 |
Unrealized loss on derivative instruments | 38,162,000 | 83,276,000 |
Power Cost Adjustment Mechanism Liability, Noncurrent | 5,345,000 | 0 |
Regulatory liabilities | 689,060,000 | 600,697,000 |
Regulatory liabilities related to power contracts | 443,065,000 | 507,009,000 |
Power contract acquisition adjustment loss | 29,816,000 | 33,753,000 |
Other deferred credits | 497,674,000 | 512,591,000 |
Total other long-term and regulatory liabilities | 3,190,127,000 | 2,998,962,000 |
Commitments and contingencies (Note 15) | ' | ' |
Total capitalization and liabilities | 12,906,575,000 | 12,835,275,000 |
PUGET SOUND ENERGY, INC. | ' | ' |
Utility Plant [Abstract] | ' | ' |
Electric plant | 9,276,400,000 | 9,048,356,000 |
Gas plant | 3,134,880,000 | 2,998,188,000 |
Common plant | 565,072,000 | 555,549,000 |
Less: Accumulated depreciation and amortization | -4,297,012,000 | -4,045,402,000 |
Net utility plant | 8,679,340,000 | 8,556,691,000 |
Other property and investments: | ' | ' |
Other property and investments | 91,919,000 | 103,646,000 |
Total other property and investments | 91,919,000 | 103,646,000 |
Current assets: | ' | ' |
Cash and cash equivalents | 44,111,000 | 135,530,000 |
Restricted cash | 7,171,000 | 3,700,000 |
Accounts receivable, net of allowance for doubtful accounts | 408,827,000 | 321,685,000 |
Unbilled revenue | 219,884,000 | 204,359,000 |
Materials and supplies, at average cost | 88,140,000 | 82,353,000 |
Fuel and gas inventory, at average cost | 63,914,000 | 85,547,000 |
Unrealized gain on derivative instruments | 18,867,000 | 6,869,000 |
Taxes | 297,000 | 4,796,000 |
Prepaid expense and other | 18,770,000 | 13,413,000 |
Deferred income taxes | 141,058,000 | 68,015,000 |
Total current assets | 1,011,039,000 | 926,267,000 |
Other long-term and regulatory assets: | ' | ' |
Regulatory asset for deferred income taxes | 146,350,000 | 119,279,000 |
Power cost adjustment mechanism | 0 | 3,773,000 |
Other regulatory assets | 749,382,000 | 813,171,000 |
Unrealized gain on derivative instruments | 7,733,000 | 14,814,000 |
Other | 123,125,000 | 90,330,000 |
Total other long-term and regulatory assets | 1,026,590,000 | 1,041,367,000 |
Total assets | 10,808,888,000 | 10,627,971,000 |
Common shareholder’s equity: | ' | ' |
Common stock | 859,000 | 859,000 |
Additional paid-in capital | 3,246,205,000 | 3,246,205,000 |
Earnings reinvested in the business | 289,432,000 | 344,280,000 |
Accumulated other comprehensive income (loss), net of tax | -95,739,000 | -187,198,000 |
Total common shareholder’s equity | 3,440,757,000 | 3,404,146,000 |
Long-term debt: | ' | ' |
First mortgage bonds and senior notes | 3,351,412,000 | 3,351,412,000 |
Pollution control bonds | 161,860,000 | 161,860,000 |
Junior subordinated notes | 250,000,000 | 250,000,000 |
Debt discount and other | -14,000 | -14,000 |
Total long-term debt | 3,763,258,000 | 3,763,258,000 |
Total capitalization | 7,204,015,000 | 7,167,404,000 |
Current liabilities: | ' | ' |
Accounts payable | 296,675,000 | 321,952,000 |
Short-term debt | 162,000,000 | 181,000,000 |
Short-term note owed to parent | 29,598,000 | 29,598,000 |
Current maturities of long-term debt | 0 | 13,000,000 |
Purchased gas adjustment liability | 5,938,000 | 32,587,000 |
Accrued expenses: | ' | ' |
Taxes | 109,559,000 | 95,623,000 |
Salaries and wages | 38,491,000 | 38,438,000 |
Interest | 55,262,000 | 55,806,000 |
Unrealized loss on derivative instruments | 41,465,000 | 170,948,000 |
Other | 60,334,000 | 69,882,000 |
Total current liabilities | 799,322,000 | 1,008,834,000 |
Other Long-term and regulatory liabilities: | ' | ' |
Deferred income taxes | 1,584,850,000 | 1,274,602,000 |
Unrealized loss on derivative instruments | 31,523,000 | 68,323,000 |
Power Cost Adjustment Mechanism Liability, Noncurrent | 5,345,000 | 0 |
Regulatory liabilities | 686,176,000 | 596,324,000 |
Other deferred credits | 497,657,000 | 512,484,000 |
Total other long-term and regulatory liabilities | 2,805,551,000 | 2,451,733,000 |
Commitments and contingencies (Note 15) | ' | ' |
Total capitalization and liabilities | $10,808,888,000 | $10,627,971,000 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Assets: | ' | ' |
Construction work in progress | $310,318 | $766,035 |
Current assets: | ' | ' |
Allowance for doubtful accounts | 7,385 | 9,932 |
Common shareholder’s equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 200 | 200 |
PUGET SOUND ENERGY, INC. | ' | ' |
Assets: | ' | ' |
Construction work in progress | 310,318 | 766,035 |
Current assets: | ' | ' |
Allowance for doubtful accounts | $7,385 | $9,932 |
Common shareholder’s equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000,000 |
Common stock, shares outstanding (in shares) | 85,903,791 | 85,903,791,000 |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER'S EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Income (Loss) | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. |
In Thousands, except Share data, unless otherwise specified | Common Stock | Additional Paid-in Capital | Earnings Reinvested in the Business | Accumulated Other Comprehensive Income (Loss) | ||||||
Balance at Dec. 31, 2010 | $3,322,912 | ' | ' | ' | ' | $2,974,907 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 88,480 | ' | ' | ' | ' | 112,716 | ' | ' | ' | ' |
Balance at Mar. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2010 | 3,322,912 | 0 | 3,308,957 | 17,024 | -3,069 | 2,974,907 | 859 | 2,959,205 | 172,490 | -157,647 |
Balance (in shares) at Dec. 31, 2010 | ' | 200 | ' | ' | ' | ' | 85,903,791 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 123,290 | 0 | 0 | 123,290 | 0 | 204,120 | 0 | 0 | 204,120 | 0 |
Capital Contribution | ' | ' | ' | ' | ' | 287,000 | 0 | 287,000 | 0 | 0 |
Common stock dividend | -117,441 | 0 | 0 | -117,441 | 0 | -212,875 | 0 | 0 | -212,875 | 0 |
Other comprehensive income | -27,838 | 0 | 0 | 0 | -27,838 | -30,932 | 0 | 0 | 0 | -30,932 |
Balance at Dec. 31, 2011 | 3,300,923 | 0 | 3,308,957 | 22,873 | -30,907 | 3,222,220 | 859 | 3,246,205 | 163,735 | -188,579 |
Balance (in shares) at Dec. 31, 2011 | ' | 200 | ' | ' | ' | ' | 85,903,791 | ' | ' | ' |
Balance at Sep. 30, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 80,957 | ' | ' | ' | ' | 95,714 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 3,300,923 | ' | ' | ' | ' | 3,222,220 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 167,475 | ' | ' | ' | ' | 179,938 | ' | ' | ' | ' |
Balance at Mar. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 3,300,923 | 0 | 3,308,957 | 22,873 | -30,907 | 3,222,220 | 859 | 3,246,205 | 163,735 | -188,579 |
Balance (in shares) at Dec. 31, 2011 | ' | 200 | ' | ' | ' | ' | 85,903,791 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 273,821 | 0 | 0 | 273,821 | 0 | 356,170 | 0 | 0 | 356,170 | 0 |
Common stock dividend | -88,594 | 0 | 0 | -88,594 | 0 | -175,625 | 0 | 0 | -175,625 | 0 |
Other comprehensive income | -1,922 | 0 | 0 | 0 | -1,922 | 1,381 | 0 | ' | 0 | 1,381 |
Balance at Dec. 31, 2012 | 3,484,228 | 0 | ' | 208,100 | -32,829 | 3,404,146 | 859 | 3,246,205 | 344,280 | -187,198 |
Balance (in shares) at Dec. 31, 2012 | 200 | 200 | ' | ' | ' | 85,903,791,000 | 85,903,791 | ' | ' | ' |
Balance at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 108,808 | ' | ' | ' | ' | 122,923 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 3,484,228 | 0 | ' | 208,100 | -32,829 | 3,404,146 | 859 | 3,246,205 | 344,280 | -187,198 |
Balance (in shares) at Dec. 31, 2012 | 200 | 200 | ' | ' | ' | 85,903,791,000 | 85,903,791 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 285,728 | 0 | 0 | 285,728 | 0 | 356,129 | 0 | 0 | 356,129 | 0 |
Common stock dividend | -170,821 | 0 | 0 | -170,821 | 0 | -410,977 | 0 | 0 | -410,977 | 0 |
Other comprehensive income | 80,544 | 0 | 0 | 0 | 80,544 | 91,459 | 0 | 0 | 0 | 91,459 |
Balance at Dec. 31, 2013 | $3,679,679 | $0 | $3,308,957 | $323,007 | $47,715 | $3,440,757 | $859 | $3,246,205 | $289,432 | ($95,739) |
Balance (in shares) at Dec. 31, 2013 | 200 | 200 | ' | ' | ' | 85,903,791 | 85,903,791 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income (loss) | $285,728 | $273,821 | $123,290 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 364,324 | 337,952 | 299,597 |
Amortization | 24,631 | 55,819 | 72,381 |
Conservation amortization | 105,897 | 114,177 | 107,646 |
Deferred income taxes and tax credits, net | 122,409 | 100,457 | 31,774 |
Net unrealized (gain) loss on derivative instruments | -106,540 | -146,680 | 45,043 |
Derivative contracts classified as financing activities due to merger | 34,250 | 92,681 | 182,710 |
AFUDC - equity | -15,930 | -25,469 | -32,431 |
Funding of pension liability | -20,400 | -22,800 | -5,000 |
Regulatory assets | -122,549 | -170,374 | -64,173 |
Regulatory liabilities | 50,025 | 14,054 | 21,031 |
Other long-term assets | -24,877 | -1,644 | -61,734 |
Other long-term liabilities | 180,015 | 95,166 | 46,473 |
Change in certain current assets and liabilities: | ' | ' | ' |
Accounts receivable and unbilled revenue | -103,949 | 35,537 | -5,977 |
Materials and supplies | -5,787 | -6,284 | 8,154 |
Fuel and gas inventory | 21,633 | 11,527 | -4,852 |
Taxes | 4,499 | 6,174 | 65,213 |
Prepayments and other | -5,357 | 393 | 605 |
Purchased gas adjustment | -26,649 | 6,647 | 31,932 |
Accounts payable | 4,597 | -25,963 | 1,098 |
Taxes payable | 13,936 | 4,896 | 9,222 |
Accrued expenses and other | -13,838 | 32,598 | 43,921 |
Net cash provided by operating activities | 766,068 | 782,685 | 915,923 |
Investing activities: | ' | ' | ' |
Construction expenditures - excluding equity AFUDC | -567,938 | -859,791 | -976,513 |
Proceeds from disposition of assets | 108,362 | 0 | 0 |
Treasury grant payment received | 0 | 205,261 | 0 |
Restricted cash | -3,471 | 483 | 1,287 |
Other | -17,871 | -38,923 | -7,184 |
Net cash used in investing activities | -480,918 | -692,970 | -982,410 |
Financing activities: | ' | ' | ' |
Change in short-term debt and leases, net | -26,578 | 148,437 | -227,651 |
Dividends paid | -170,821 | -88,594 | -117,441 |
Long-term notes and bonds issued | 161,860 | 1,314,000 | 1,382,000 |
Redemption of bonds and notes | -309,860 | -1,273,000 | -769,000 |
Derivative contracts classified as financing activities due to merger | -34,250 | -92,681 | -182,710 |
Issuance cost of bonds and other | 3,259 | 430 | -18,033 |
Net cash provided by (used in) financing activities | -376,390 | 8,592 | 67,165 |
Net increase (decrease) in cash and cash equivalents | -91,240 | 98,307 | 678 |
Cash and cash equivalents at beginning of period | 135,542 | 37,235 | 36,557 |
Cash and cash equivalents at end of period | 44,302 | 135,542 | 37,235 |
Supplemental cash flow information: | ' | ' | ' |
Cash payments for interest (net of capitalized interest) | 334,041 | 318,305 | 280,847 |
Income Taxes Paid, Net | -4,500 | -1,898 | -64,016 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Operating activities: | ' | ' | ' |
Net income (loss) | 356,129 | 356,170 | 204,120 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 364,324 | 337,952 | 299,597 |
Amortization | 24,631 | 55,819 | 72,381 |
Conservation amortization | 105,897 | 114,177 | 107,646 |
Deferred income taxes and tax credits, net | 160,886 | 145,040 | 77,174 |
Net unrealized (gain) loss on derivative instruments | -98,880 | -119,120 | 54,146 |
AFUDC - equity | -15,930 | -25,469 | -32,431 |
Funding of pension liability | -20,400 | -22,800 | -5,000 |
Regulatory assets | -122,549 | -170,374 | -65,134 |
Regulatory liabilities | 50,025 | 14,054 | 21,031 |
Other long-term assets | -21,932 | 932 | -62,682 |
Other long-term liabilities | 160,596 | 79,789 | 28,814 |
Change in certain current assets and liabilities: | ' | ' | ' |
Accounts receivable and unbilled revenue | -104,059 | 35,285 | -6,204 |
Materials and supplies | -5,787 | -6,284 | 8,154 |
Fuel and gas inventory | 21,633 | 11,527 | -4,852 |
Taxes | 4,499 | 6,174 | 51,144 |
Prepayments and other | -5,357 | 393 | 605 |
Purchased gas adjustment | -26,649 | 6,647 | 31,932 |
Accounts payable | 4,597 | -25,972 | 688 |
Taxes payable | 13,936 | 4,896 | 9,222 |
Accrued expenses and other | -9,931 | -954 | 18,666 |
Net cash provided by operating activities | 835,679 | 797,882 | 809,017 |
Investing activities: | ' | ' | ' |
Construction expenditures - excluding equity AFUDC | -567,938 | -859,791 | -976,513 |
Proceeds from disposition of assets | 108,362 | 0 | 0 |
Treasury grant payment received | 0 | 205,261 | 0 |
Restricted cash | -3,471 | 483 | 1,287 |
Other | -16,751 | -18,022 | 9,043 |
Net cash used in investing activities | -479,798 | -672,069 | -966,183 |
Financing activities: | ' | ' | ' |
Change in short-term debt and leases, net | -26,578 | 148,437 | -227,651 |
Dividends paid | -410,977 | -175,625 | -212,875 |
Long-term notes and bonds issued | 161,860 | 0 | 595,000 |
Loan from (payment to) parent | 0 | -400 | 7,400 |
Redemption of bonds and notes | -174,860 | 0 | -285,000 |
Investment from parent | 0 | 0 | 287,000 |
Issuance cost of bonds and other | 3,255 | 6,295 | -12,018 |
Net cash provided by (used in) financing activities | -447,300 | -21,293 | 151,856 |
Net increase (decrease) in cash and cash equivalents | -91,419 | 104,520 | -5,310 |
Cash and cash equivalents at beginning of period | 135,530 | 31,010 | 36,320 |
Cash and cash equivalents at end of period | 44,111 | 135,530 | 31,010 |
Supplemental cash flow information: | ' | ' | ' |
Cash payments for interest (net of capitalized interest) | 244,887 | 216,128 | 191,666 |
Income Taxes Paid, Net | ($4,500) | ($1,898) | ($50,022) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
Basis of Presentation | ||||||||||||||
Puget Energy, Inc. (Puget Energy) is an energy services holding company that owns Puget Sound Energy, Inc. (PSE). PSE is a public utility incorporated in the state of Washington that furnishes electric and natural gas services in a territory covering 6,000 square miles, primarily in the Puget Sound region. On February 6, 2009, Puget Holdings LLC (Puget Holdings), owned by a consortium of long-term infrastructure investors, completed its merger with Puget Energy (the merger). As a result of the merger, all of Puget Energy’s common stock is indirectly owned by Puget Holdings. The acquisition of Puget Energy was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, “Business Combinations” (ASC 805), as of the date of the merger. ASC 805 requires the acquirer to recognize and measure identifiable assets acquired and liabilities assumed at fair value as of the merger date. | ||||||||||||||
The consolidated financial statements of Puget Energy reflect the accounts of Puget Energy and its subsidiary, PSE. PSE’s consolidated financial statements include the accounts of PSE and its subsidiary. Puget Energy and PSE are collectively referred to herein as “the Company.” The consolidated financial statements are presented after elimination of all significant intercompany items and transactions. PSE’s consolidated financial statements continue to be accounted for on a historical basis and PSE’s financial statements do not include any ASC 805 purchase accounting adjustments. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||
Certain prior year amounts have been corrected to conform to the current year presentation. In addition, at December 31, 2013, PSE revised 2012 credit balances in customer’s accounts receivable to accounts payable in the amount of $33.7 million in order to correct errors included in the December 31, 2012 balances. The Company believes these amounts are not material to the financial statements. | ||||||||||||||
Utility Plant | ||||||||||||||
Puget Energy and PSE capitalize, at original cost, additions to utility plant, including renewals and betterments. Costs include indirect costs such as engineering, supervision, certain taxes, pension and other employee benefits and an Allowance For Funds Used During Construction (AFUDC). Replacements of minor items of property are included in maintenance expense. When the utility plant is retired and removed from service, the original cost of the property is charged to accumulated depreciation and costs associated with removal of the property, less salvage, are charged to the cost of removal regulatory liability. | ||||||||||||||
Planned Major Maintenance | ||||||||||||||
Planned major maintenance is an activity that typically occurs when PSE overhauls or substantially upgrades various systems and equipment on its natural gas fired combustion turbines on a scheduled basis. Costs related to planned major maintenance, in excess of $0.5 million, are deferred and amortized to the next scheduled major maintenance. This accounting method also follows the Washington Utilities and Transportation Commission (Washington Commission) regulatory treatment related to these generating facilities. | ||||||||||||||
Non-Utility Property, Plant and Equipment | ||||||||||||||
For PSE, the costs of other property, plant and equipment are stated at historical cost. Expenditures for refurbishment and improvements that significantly add to productive capacity or extend useful life of an asset are capitalized. Replacement of minor items are expensed on a current basis. Gains and losses on assets sold or retired are reflected in earnings. | ||||||||||||||
Depreciation and Amortization | ||||||||||||||
For financial statement purposes, the Company provides for depreciation and amortization on a straight-line basis. Amortization is recorded for intangibles such as regulatory assets and liabilities, computer software and franchises. The depreciation of vehicles and equipment is allocated to the asset and expense accounts based on usage. The annual depreciation provision stated as a percent of a depreciable electric utility plant was 2.8%, 2.9% and 2.7% in 2013, 2012 and 2011, respectively; depreciable gas utility plant was 3.4%, 3.4% and 3.5% in 2013, 2012 and 2011, respectively; and depreciable common utility plant was 11.4%, 11.6% and 11.3% in 2013, 2012 and 2011, respectively. Depreciation on other property, plant and equipment is calculated primarily on a straight-line basis over the useful lives of the assets. The cost of removal is collected from PSE’s customers through depreciation expense and any excess is recorded as a regulatory liability. | ||||||||||||||
Goodwill | ||||||||||||||
On February 6, 2009, Puget Holdings completed its merger with Puget Energy. Puget Energy remeasured the carrying amount of all its assets and liabilities to fair value, which resulted in recognition of approximately $1.7 billion in goodwill. ASC 350, “Intangibles - Goodwill and Other” (ASC 350), requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the Company’s business or regulatory outlook, legal factors, a sale or disposition of a significant portion of a reporting unit or significant changes in the financial markets which could influence the Company’s access to capital and interest rates. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units and the determination of the fair value of the reporting units. Management has determined Puget Energy has only one reporting unit. | ||||||||||||||
The goodwill recorded by Puget Energy represents the potential long-term return to the Company’s investors. Goodwill is tested for impairment annually using a two-step process. The first step compares the carrying amount of the reporting unit with its fair value, with a carrying value higher than fair value indicating potential impairment. If the first step test fails, the second step is performed. This would entail a full valuation of Puget Energy’s assets and liabilities and comparing the valuation to its carrying amounts, with the aggregate difference indicating the amount of impairment. Goodwill of a reporting unit is required to be tested for impairment on an interim basis if an event occurs or circumstances change that would cause the fair value of a reporting unit to fall below its carrying amount. | ||||||||||||||
Puget Energy conducted its annual impairment test in 2013 using an October 1, 2013 measurement date. The fair value of Puget Energy’s reporting unit was estimated using both discounted cash flow and market approach. Such approaches are considered methodologies that market participants would use. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of long-term rate of growth for Puget Energy business, estimation of the useful life over which cash flows will occur, the selection of utility holding companies determined to be comparable to Puget Energy and determination of an appropriate weighted-average cost of capital or discount rate. The market approach estimates the fair value of the business based on market prices of stocks of comparable companies engaged in the same or similar lines of business. In addition, indications of market value are estimated by deriving multiples of equity or invested capital to various measures of revenue, earnings or cash flow. Changes in these estimates and or assumptions could materially affect the determination of fair value and goodwill impairment of the reporting unit. Based on the test performed, management has determined that there was no indication of impairment of Puget Energy’s goodwill as of October 1, 2013. There were no events or circumstances from the date of the assessment through December 31, 2013 that would impact management’s conclusion. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
Cash and cash equivalents consist of demand bank deposits and short-term highly liquid investments with original maturities of three months or less at the time of purchase. The cash and cash equivalents balance at Puget Energy was $44.3 million and $135.5 million as of December 31, 2013 and 2012, respectively. The 2013 and 2012 balance consisted of cash equivalents, which are reported at cost and approximate fair value, and were $2.6 million and $107.6 million, respectively. | ||||||||||||||
Materials and Supplies | ||||||||||||||
Materials and supplies are used primarily in the operation and maintenance of electric and natural gas distribution and transmission systems as well as spare parts for combustion turbines used for the generation of electricity. Puget Energy and PSE record these items at weighted-average cost. | ||||||||||||||
Fuel and Gas Inventory | ||||||||||||||
Fuel and gas inventory is used in the generation of electricity and for future sales to the Company’s natural gas customers. Fuel inventory consists of coal, diesel and natural gas used for generation. Gas inventory consists of natural gas and liquefied natural gas (LNG) held in storage for future sales. Puget Energy and PSE record these items at the lower of cost or market value using the weighted-average cost method. | ||||||||||||||
Regulatory Assets and Liabilities | ||||||||||||||
PSE accounts for its regulated operations in accordance with ASC 980 “Regulated Operations” (ASC 980). ASC 980 requires PSE to defer certain costs that would otherwise be charged to expense, if it is probable that future rates will permit recovery of such costs. It similarly requires deferral of revenues or gains and losses that are expected to be returned to customers in the future. Accounting under ASC 980 is appropriate as long as rates are established by or subject to approval by independent third-party regulators; rates are designed to recover the specific enterprise’s cost of service; and in view of demand for service, it is reasonable to assume that rates set at levels that will recover costs can be charged to and collected from customers. In most cases, PSE classifies regulatory assets and liabilities as long-term assets or liabilities due to the length of the amortization. The exception is the Purchased Gas Adjustment (PGA) which can be a current asset or current liability. | ||||||||||||||
Allowance for Funds Used During Construction | ||||||||||||||
AFUDC represents the cost of both the debt and equity funds used to finance utility plant additions during the construction period. The amount of AFUDC recorded in each accounting period varies depending principally upon the level of construction work in progress and the AFUDC rate used. AFUDC is capitalized as a part of the cost of utility plant and is credited to interest expense and as a non-cash item to other income. Cash inflow related to AFUDC does not occur until these charges are reflected in rates. | ||||||||||||||
The AFUDC rates authorized by the Washington Commission for natural gas and electric utility plant additions based on the effective dates are as follows: | ||||||||||||||
Effective Date | Washington Commission | |||||||||||||
AFUDC Rates | ||||||||||||||
July 1, 2013 - present | 7.77 | % | ||||||||||||
May 14, 2012 - June 30, 2013 | 7.8 | |||||||||||||
April 8, 2010 - May 13, 2012 | 8.1 | |||||||||||||
The Washington Commission authorized the Company to calculate AFUDC using its allowed rate of return. To the extent amounts calculated using this rate exceed the AFUDC calculated rate using the Federal Energy Regulatory Commission (FERC) formula, PSE capitalizes the excess as a deferred asset, crediting other income. The deferred asset is being amortized over the average useful life of PSE’s non-project electric utility plant which is approximately 30 years. | ||||||||||||||
Revenue Recognition | ||||||||||||||
Operating utility revenue is recognized when the basis of services is rendered, which includes estimated unbilled revenue, in accordance with ASC 605, “Revenue Recognition” (ASC 605). PSE's estimate of unbilled revenue is based on a calculation using meter readings from its automated meter reading (AMR) system. The estimate calculates unbilled usage at the end of each month as the difference between the customer meter readings on the last day of the month and the last customer meter readings billed. The unbilled usage is then priced at published rates for each schedule to estimate the unbilled revenues by customer. | ||||||||||||||
Non-utility subsidiaries recognize revenue when services are performed or upon the sale of assets. Revenue from retail sales is billed based on tariff rates approved by the Washington Commission. Sales of Renewable Energy Credits (RECs) are deferred as a regulatory liability. | ||||||||||||||
PSE collected Washington State excise taxes (which are a component of general retail customer rates) and municipal taxes totaling $243.9 million, $244.2 million and $252.5 million for 2013, 2012 and 2011, respectively. The Company reports the collection of such taxes on a gross basis in operating revenue and as expense in taxes other than income taxes in the accompanying consolidated statements of income. | ||||||||||||||
Beginning July 1, 2013, PSE's electric and gas operations contain a revenue decoupling mechanism under which PSE's actual energy delivery revenues related to electric transmission and distribution, gas operations and general administrative costs are compared with authorized revenues allowed under the mechanism. Any differences are deferred to a regulatory asset for under recovery or regulatory liability for over recovery. Revenues associated with power costs under the Power Cost Adjustment (PCA) mechanism and PGA rates are excluded from the decoupling mechanism. | ||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||
Allowance for doubtful accounts are provided for electric and natural gas customer accounts based upon a historical experience rate of write-offs of energy accounts receivable along with information on future economic outlook. The allowance account is adjusted monthly for this experience rate. The allowance account is maintained until either receipt of payment or the likelihood of collection is considered remote at which time the allowance account and corresponding receivable balance are written off. | ||||||||||||||
The Company’s allowance for doubtful accounts at December 31, 2013 and 2012 was $7.4 million and $9.9 million, respectively. | ||||||||||||||
Self-Insurance | ||||||||||||||
PSE currently has no insurance coverage for storm damage and recent environmental contamination occurring on PSE-owned property. PSE is self-insured for a portion of the risk associated with comprehensive liability, workers’ compensation claims and catastrophic property losses other than those which are storm related. The Washington Commission has approved the deferral of certain uninsured qualifying storm damage costs that exceed $8.0 million which will be requested for collection in future rates. Additionally, costs may only be deferred if the outage meets the Institute of Electrical and Electronics Engineers (IEEE) outage criteria for system average interruption duration index. | ||||||||||||||
Federal Income Taxes | ||||||||||||||
For presentation in Puget Energy and PSE’s separate financial statements, income taxes are allocated to the subsidiaries on the basis of separate company computations of tax, modified by allocating certain consolidated group limitations which are attributed to the separate company. Taxes payable or receivable are settled with Puget Holdings. | ||||||||||||||
Natural Gas Off-System Sales and Capacity Release | ||||||||||||||
PSE contracts for firm natural gas supplies and holds firm transportation and storage capacity sufficient to meet the expected peak winter demand for natural gas by its firm customers. Due to the variability in weather, winter peaking consumption of natural gas by most of its customers and other factors, PSE holds contractual rights to natural gas supplies and transportation and storage capacity in excess of its average annual requirements to serve firm customers on its distribution system. For much of the year, there is excess capacity available for third-party natural gas sales, exchanges and capacity releases. PSE sells excess natural gas supplies, enters into natural gas supply exchanges with third parties outside of its distribution area and releases to third parties excess interstate natural gas pipeline capacity and natural gas storage rights on a short-term basis to mitigate the costs of firm transportation and storage capacity for its core natural gas customers. The proceeds from such activities, net of transactional costs, are accounted for as reductions in the cost of purchased natural gas and passed on to customers through the PGA mechanism, with no direct impact on net income. As a result, PSE nets the sales revenue and associated cost of sales for these transactions in purchased natural gas. | ||||||||||||||
Non-Core Gas Sales | ||||||||||||||
As part of the Company’s electric operations, PSE provides natural gas to its gas-fired generation facilities. The projected volume of natural gas for power is relative to the price of natural gas. Based on the market prices for natural gas, PSE may use the gas it has already purchased to generate power or PSE may sell the already purchased natural gas. The net proceeds from selling natural gas, previously purchased for power generation, are accounted for in other electric operating revenue and are included in the PCA mechanism. | ||||||||||||||
Production Tax Credit | ||||||||||||||
Production Tax Credits (PTCs) represent federal income tax incentives available to taxpayers that generate energy from qualifying renewable sources. Prior to July 1, 2010, PSE passed the benefit of the PTCs to customers as the benefits were generated. After July 1, 2010, PSE records the benefit of the PTCs as a regulatory liability until such time as PSE utilizes the tax credit on its tax return. Once utilized, PSE will pass the benefit to customers. | ||||||||||||||
Accounting for Derivatives | ||||||||||||||
ASC 815 requires that all contracts considered to be derivative instruments be recorded on the balance sheet at their fair value unless the contracts qualify for an exception. PSE enters into derivative contracts to manage its energy resource portfolio and interest rate exposure including forward physical and financial contracts and swaps. Some of PSE’s physical electric supply contracts qualify for the Normal Purchase Normal Sale (NPNS) exception to derivative accounting rules. PSE may enter into financial fixed price contracts to economically hedge the variability of certain index-based contracts. Those contracts that do not meet the NPNS exception are marked-to-market to current earnings in the statements of income, subject to deferral under ASC 980, for energy related derivatives due to the PCA mechanism and PGA mechanism. | ||||||||||||||
Puget Energy and PSE elected to de-designate all energy related derivative contracts previously recorded as cash flow hedges for the purpose of simplifying its financial reporting in 2009. The contracts that were de-designated related to physical electric supply contracts and natural gas swap contracts used to fix the price of natural gas for electric generation. For these contracts and for contracts initiated after such date, all mark-to-market adjustments are recognized through earnings. The amount previously recorded in accumulated other comprehensive income (OCI) is transferred to earnings in the same period or periods during which the hedged transaction affects earnings or sooner if management determines that the forecasted transaction is probable of not occurring. As a result, the Company will continue to experience the earnings impact of these reversals from OCI in future periods. | ||||||||||||||
The Company may enter into swap instruments or other financial derivative instruments to manage the interest rate risk associated with its long-term debt financing and debt instruments. As of December 31, 2013, Puget Energy has interest rate swap contracts outstanding related to its long-term debt. For additional information, see Note 9 Accounting for Derivative Instruments and Hedging Activities. | ||||||||||||||
Fair Value Measurements of Derivatives | ||||||||||||||
ASC 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). However, as permitted under ASC 820, the Company utilizes a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical expedient for valuing the majority of its assets and liabilities measured and reported at fair value. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements as it believes that the approach is used by market participants for these types of assets and liabilities. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||||||||||||
The Company values derivative instruments based on daily quoted prices from an independent external pricing service. When external quoted market prices are not available for derivative contracts, the Company uses a valuation model that uses volatility assumptions relating to future energy prices based on specific energy markets and utilizes externally available forward market price curves. All derivative instruments are sensitive to market price fluctuations that can occur on a daily basis. For additional information, see Note 10 Fair Value Measurements. | ||||||||||||||
Debt Related Costs | ||||||||||||||
Debt premiums, discounts, expenses and amounts received or incurred to settle hedges are amortized over the life of the related debt for the Company. The premiums and costs associated with reacquired debt are deferred and amortized over the life of the related new issuance, in accordance with ratemaking treatment for PSE. | ||||||||||||||
Statements of Cash Flows | ||||||||||||||
The Company has refinancing transactions that do not result in an actual exchange of cash. For these transactions, the Company evaluates if the non-exchange of cash is for convenience purposes and if so, the Company considers the transaction as if it had constructively received and disbursed the cash and presents the transaction as gross on the financing section of the statements of cash flows. | ||||||||||||||
PSE funds cash dividends to pay the shareholder of Puget Energy. | ||||||||||||||
The following non-cash investing and financing activities have occurred at the Company: | ||||||||||||||
• | PSE did not incur any capital lease obligations in 2013 or 2012. PSE incurred capital lease obligations of $37.9 million for AMR modules and network in 2011. | |||||||||||||
The Company revised its Consolidated Statement of Cash Flows due to an immaterial error. Revisions were made in the second quarter ended June 30, 2013 on the Company's Consolidated Statement of Cash Flows to reflect energy efficiency expenditures as operating cash outflows instead of investing cash outflows. The Company determined energy efficiency expenditures should have been classified as operating activities instead of investing activities. These revisions decreased net cash provided by operating activities and decreased net cash used by investing activities. The revision does not affect the net change in cash and cash equivalents for any of the periods, and has no effect on the Company's Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, and Consolidated Statement of Common Shareholder's Equity. The Company has evaluated the effects of these errors and concluded that none of them are material to any of the Company's previously issued quarterly or annual Financial Statements. Nevertheless, the Company has elected to revise the Consolidated Statement of Cash Flows in this report to correct for the effect of these errors and properly reflect the revised values. | ||||||||||||||
The amounts on prior period Consolidated Statements of Cash Flows that have been revised are summarized below: | ||||||||||||||
As Reported | As Revised | |||||||||||||
Puget Energy | Year Ended December 31, | Year Ended December 31, | ||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Operating Activities: | ||||||||||||||
Regulatory Assets | $ | (64,368 | ) | $ | 30,232 | $ | (170,374 | ) | $ | (64,173 | ) | |||
Net Cash Provided by Operating Activities | $ | 888,691 | $ | 1,010,328 | $ | 782,685 | $ | 915,923 | ||||||
Investing Activities: | ||||||||||||||
Energy Efficiency Expenditures | $ | (106,006 | ) | $ | (94,405 | ) | $ | — | $ | — | ||||
Net Cash Used in Investing Activities | $ | (798,976 | ) | $ | (1,076,815 | ) | $ | (692,970 | ) | $ | (982,410 | ) | ||
As Reported | As Revised | |||||||||||||
Puget Sound Energy | Year Ended December 31, | Year Ended December 31, | ||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Operating Activities: | ||||||||||||||
Regulatory Assets | $ | (64,368 | ) | $ | 29,271 | $ | (170,374 | ) | $ | (65,134 | ) | |||
Net Cash Provided by Operating Activities | $ | 903,888 | $ | 903,422 | $ | 797,882 | $ | 809,017 | ||||||
Investing Activities: | ||||||||||||||
Energy Efficiency Expenditures | $ | (106,006 | ) | $ | (94,405 | ) | $ | — | $ | — | ||||
Net Cash Used in Investing Activities | $ | (778,075 | ) | $ | (1,060,588 | ) | $ | (672,069 | ) | $ | (966,183 | ) | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||
The following tables set forth the components of the Company’s accumulated other comprehensive income (loss) at: | ||||||||||||||
Puget Energy | December 31, | |||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||
Net unrealized loss on energy derivative instruments | $ | (705 | ) | $ | (742 | ) | ||||||||
Net unrealized loss on interest rate swaps | (94 | ) | (3,022 | ) | ||||||||||
Net unrealized loss and prior service cost on pension plans | 48,514 | (29,065 | ) | |||||||||||
Total Puget Energy, net of tax | $ | 47,715 | $ | (32,829 | ) | |||||||||
Puget Sound Energy | December 31, | |||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||
Net unrealized loss on energy derivative instruments | $ | (2,027 | ) | $ | (4,576 | ) | ||||||||
Net unrealized loss on treasury interest rate swaps | (6,307 | ) | (6,624 | ) | ||||||||||
Net unrealized loss and prior service cost on pension plans | (87,405 | ) | (175,998 | ) | ||||||||||
Total PSE, net of tax | $ | (95,739 | ) | $ | (187,198 | ) |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
Balance Sheet | |
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210) (ASU 2011-11). ASU 2011-11, as amended by ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, enhances disclosure requirements about the nature of an entity's right to offset and related arrangements associated with its derivative instruments. ASU 2011-11 requires the disclosure of the gross amounts subject to rights of set-off, amounts offset in accordance with the accounting standards followed, and the related net exposure. | |
ASU 2011-11, as amended, is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Retrospective application of the disclosures is required for all periods presented within the financial statements. These disclosure requirements are the only impact on the Company’s consolidated financial statements. The Company adopted the Accounting Standards Update (ASU) requirements as disclosed in Note 9 - Accounting for Derivative Instruments and Hedging Activities. | |
Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02), to improve the transparency of reporting reclassifications out of accumulated other comprehensive income. ASU 2013-02 requires an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. ASU 2013-02 also requires an entity to cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly to income or expense. | |
ASU 2013-02 is effective for reporting periods beginning after December 15, 2012, for public companies and is effective for reporting periods beginning after December 15, 2013, for private companies. Other than additional disclosures or a change in the presentation on the statement of comprehensive income when necessary, ASU 2013-02 does not impact the Company's consolidated results of operations, cash flows or financial position. The Company adopted the ASU requirements as disclosed in Note 18 - Accumulated Other Comprehensive Income (Loss). |
Regulation_and_Rates
Regulation and Rates | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Regulated Operations [Abstract] | ' | |||||||
Regulation and Rates | ' | |||||||
Regulation and Rates | ||||||||
Regulatory Assets and Liabilities | ||||||||
ASC 980 requires PSE to defer certain costs that would otherwise be charged to expense, if it is probable that future rates will permit recovery of such costs. It similarly requires deferral of revenues or gains and losses that are expected to be returned to customers in the future. | ||||||||
Below is a chart with the allowed return on the net regulatory assets and liabilities and the associated time periods: | ||||||||
Period | Rate of Return | After-Tax Return | ||||||
July 1, 2013 - present | 7.77% | 6.69% | ||||||
May 14, 2012 - June 30, 2013 | 7.8 | 6.71 | ||||||
April 8, 2010 - May 13, 2012 | 8.1 | 6.9 | ||||||
The net regulatory assets and liabilities at December 31, 2013 and 2012 included the following: | ||||||||
Puget Sound Energy | Remaining Amortization Period | December 31, | ||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||
PGA deferral of unrealized losses on derivative instruments | (a) | $ | 27,555 | $ | 95,953 | |||
Chelan PUD contract initiation | 17.8 years | 126,404 | 133,492 | |||||
Storm damage costs electric | 1 to 5 years | 116,328 | 131,904 | |||||
Environmental remediation | (a) | 57,342 | 66,402 | |||||
Baker Dam licensing operating and maintenance costs | 45 years | 57,270 | 57,644 | |||||
Snoqualmie licensing operating and maintenance costs | 31 years | 10,881 | 7,816 | |||||
Colstrip common property | 10.5 years | 7,479 | 8,195 | |||||
Deferred income taxes | (a) | 146,350 | 119,279 | |||||
Deferred Washington Commission AFUDC | Varies up to 36 years | 55,495 | 55,896 | |||||
Energy conservation costs | 1 to 2 years | 35,987 | 26,940 | |||||
Unamortized loss on reacquired debt | 1 to 22.5 years | 37,832 | 31,399 | |||||
White River relicensing and other costs | (a) | 28,190 | 29,654 | |||||
Mint Farm ownership and operating costs | 11.3 years | 22,320 | 24,321 | |||||
Investment in Bonneville Exchange power contract | 3.5 years | 12,343 | 15,870 | |||||
Ferndale | 5.8 years | 22,811 | 1,789 | |||||
Lower Snake River | 2.3 to 23.3 years | 92,924 | 126,887 | |||||
Snoqualmie | 5.8 years | 8,009 | — | |||||
Property tax tracker | (a) | 22,134 | — | |||||
Various other regulatory assets | Varies | 8,078 | 2,782 | |||||
Total PSE regulatory assets | $ | 895,732 | $ | 936,223 | ||||
Cost of removal | (b) | $ | (269,536 | ) | $ | (239,243 | ) | |
Production tax credits | (c) | (93,618 | ) | (93,618 | ) | |||
PGA payable | 1 year | (5,938 | ) | (32,587 | ) | |||
PCA mechanism | (a) | (5,345 | ) | — | ||||
Decoupling over-collection | (a) | (20,535 | ) | — | ||||
Summit purchase option buy-out | 6.8 years | (10,763 | ) | (12,338 | ) | |||
Deferred gain on Jefferson County sale | (a) | (60,844 | ) | — | ||||
Deferred credit on Biogas sale | 1 year | (10,908 | ) | — | ||||
Deferred credit on gas pipeline capacity | Varies up to 4.8 years | (4,508 | ) | (6,213 | ) | |||
Renewable energy credits | (a) | (5,820 | ) | (11,341 | ) | |||
Treasury grants | 6 to 9 years | (203,889 | ) | (225,573 | ) | |||
Various other regulatory liabilities | Up to 4 years | (5,755 | ) | (7,998 | ) | |||
Total PSE regulatory liabilities | $ | (697,459 | ) | $ | (628,911 | ) | ||
PSE net regulatory assets (liabilities) | $ | 198,273 | $ | 307,312 | ||||
_______________ | ||||||||
(a) | Amortization periods vary depending on timing of underlying transactions or awaiting regulatory approval in a future Washington Commission rate proceeding. | |||||||
(b) | The balance is dependent upon the cost of removal of underlying assets and the life of utility plant. | |||||||
(c) | Amortization will begin once PTCs are utilized by PSE on its tax return. | |||||||
Puget Energy | Remaining Amortization Period | December 31, | ||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||
Total PSE regulatory assets | (a) | $ | 895,732 | $ | 936,223 | |||
Puget Energy acquisition adjustments: | ||||||||
Regulatory assets related to power contracts | 1 to 23 years | 33,753 | 37,655 | |||||
Various other regulatory assets | Varies | 517 | 3,179 | |||||
Total Puget Energy regulatory assets | $ | 930,002 | $ | 977,057 | ||||
Total PSE regulatory liabilities | (a) | $ | (697,459 | ) | $ | (628,911 | ) | |
Puget Energy acquisition adjustments: | ||||||||
Regulatory liabilities related to power contracts | 1 to 38 years | (443,065 | ) | (507,009 | ) | |||
Various other regulatory liabilities | Varies | (2,884 | ) | (4,373 | ) | |||
Total Puget Energy regulatory liabilities | $ | (1,143,408 | ) | $ | (1,140,293 | ) | ||
Puget Energy net regulatory asset (liabilities) | $ | (213,406 | ) | $ | (163,236 | ) | ||
_______________ | ||||||||
(a) | Puget Energy’s regulatory assets and liabilities include purchase accounting adjustments under ASC 805 as a result of the merger. | |||||||
If the Company determines that it no longer meets the criteria for continued application of ASC 980, the Company would be required to write off its regulatory assets and liabilities related to those operations not meeting ASC 980 requirements. Discontinuation of ASC 980 could have a material impact on the Company’s financial statements. | ||||||||
In accordance with guidance provided by ASC 410, “Asset Retirement and Environmental Obligations,” PSE reclassified from accumulated depreciation to a regulatory liability $269.5 million and $239.2 million in 2013 and 2012, respectively, for the cost of removal of utility plant. These amounts are collected from PSE’s customers through depreciation rates. | ||||||||
Electric Regulation and Rates | ||||||||
Storm Damage Deferral Accounting | ||||||||
The Washington Commission issued a general rate case order that defined deferrable catastrophic/extraordinary losses and provided that costs in excess of $8.0 million annually may be deferred for qualifying storm damage costs that meet the modified IEEE outage criteria for system average interruption duration index. In 2013 and 2012, PSE incurred $9.5 million and $71.5 million, respectively, in storm-related electric transmission and distribution system restoration costs, of which no amount was deferred in 2013 and $60.4 million was deferred in 2012. | ||||||||
Power Cost Only Rate Case | ||||||||
Power Cost Only Rate Case (PCORC), a limited-scope proceeding, was approved in 2002 by the Washington Commission to periodically reset power cost rates. In addition to providing the opportunity to reset all power costs, the PCORC proceeding also provides for timely review of new resource acquisition costs and inclusion of such costs in rates at the time the new resource goes into service. To achieve this objective, the Washington Commission has used an expedited six-month PCORC decision timeline rather than the statutory 11-month timeline for a general rate case. | ||||||||
On October 23, 2013, the Washington Commission approved an update on the Company's PCORC, effective November 1, 2013, which reflected decreases in the overall normalized power supply costs. This resulted in an estimated revenue decrease of $10.5 million or 0.5% annually. | ||||||||
Electric Rate Case | ||||||||
On June 25, 2013, the Washington Commission approved PSE's electric and natural gas decoupling mechanism and expedited rate filing (ERF) tariff filings, effective July 1, 2013. The estimated revenue impact of the decoupling mechanism for electric is an increase of $21.4 million, or 1.0% annually. The estimated revenue impact of the ERF filings for electric is an increase of $30.7 million, or 1.5% annually. In its order, the Washington Commission approved a weighted cost of capital of 7.77% and a capital structure that included 48.0% common equity with a return on equity of 9.8%. Subsequently, certain parties to this proceeding petitioned the Washington Commission to reconsider the order. On December 13, 2013, the Washington Commission approved the settlement agreements for rates effective January 1, 2014. These settlement agreements do not materially change the revenues originally approved in June 2013. | ||||||||
On July 24, 2013, the Public Counsel Division of the Washington State Attorney General's Office (Public Counsel) and the Industrial Customers of Northwest Utilities (ICNU) each filed a petition in Thurston County Superior Court (the Court) seeking judicial review of various aspects of the Washington Commission's ERF and decoupling mechanism final order. The parties' petition argues that the order violates various procedural and substantive requirements of the Washington Administrative Procedure Act, and so requests that it be vacated and that the matter be remanded to the Washington Commission. Oral arguments regarding this matter are scheduled for May 2014. | ||||||||
On May 7, 2012, the Washington Commission issued its order in PSE's electric general rate case filed in June 2011, approving a general rate increase for electric customers of $63.3 million or 3.2% annually. The rate increases for electric customers became effective May 14, 2012. In its order, the Washington Commission approved a weighted cost of capital of 7.8% and a capital structure that included 48.0% common equity with a return on equity of 9.8%. PSE's requested treatment of the prepayments made to Bonneville Power Administration (BPA), filed in May 2010, was approved in the order. The final order rejected PSE's proposed conservation savings adjustment. Finally, a new rate rider for RECs was proposed by settlement of electric parties and approved by the Washington Commission in the final order. | ||||||||
The following table sets forth electric rate adjustments approved by the Washington Commission and the corresponding impact on PSE’s revenue based on the effective dates: | ||||||||
Type of Rate | Effective Date | Average | Increase (Decrease) | |||||
Adjustment | Percentage | in Revenue | ||||||
Increase (Decrease) | (Dollars in Millions) | |||||||
in Rates | ||||||||
PCORC | 1-Nov-13 | -0.50% | ($10.50) | |||||
Decoupling Rate Filing | 1-Jul-13 | 1 | 21.4 | |||||
Expedited Rate Filing | 1-Jul-13 | 1.5 | 30.7 | |||||
Electric General Rate Case | May 14, 2012, Annual | 3.2 | 63.3 | |||||
Renewable Energy Credit Proceeds | November 1, 2010 - March 31, 2011 | -2.9 | -27.7 | |||||
In addition, PSE will be increasing the allowed delivery revenue per customer under the ERF filing by 3.0% for electric customers on January 1 of each year until the conclusion of PSE's next general rate case. | ||||||||
Accounting Orders and Petitions | ||||||||
On November 27, 2013, the Washington Commission issued an order authorizing PSE to provide the net proceeds from the sale of natural gas supply produced from a landfill-gas recovery project in King County (Biogas) prior to October 31, 2013 as a bill credit to customers over a one-year period in its Renewable Energy Credits adjusting price schedule which became effective January 1, 2014. Additionally, the Washington Commission order authorized that all net proceeds from Biogas produced after October 31, 2013 plus the internal labor needed to obtain the net proceeds is reflected as a PSE below-the-line item (i.e., not included in the revenues and expenses considered when setting electric customer rates) and excluded from utility operations. | ||||||||
PSE completed the sale of its electric infrastructure assets located in Jefferson County and the transition of electrical services in the county to Jefferson County Public Utility District (JPUD) on March 31, 2013. The proceeds from the sale exceeded the transferred assets' net carrying value of $46.7 million resulting in a pre-tax gain of approximately $60.0 million. In its 2010 order on the subject, the Washington Commission stated that PSE must file an accounting and ratemaking petition with the Washington Commission to determine how this gain will be allocated between customers and shareholders. As a result, the gain was deferred and recorded as a regulatory liability until the Washington Commission determines the accounting and ratemaking treatment. On October 31, 2013, PSE filed an accounting petition for a Washington Commission order that authorizes PSE to retain the gain of $45.0 million and return $15.0 million to its remaining customers over a period of 48 months. Intervenors testimony is scheduled to be filed in March, 2014. For federal income tax purposes, the Company will elect to treat the transaction as an involuntary conversion under the Internal Revenue Code which allows for deferral of the tax gain if PSE acquires qualified replacement property by December 31, 2015. Based on PSE's current construction program projection, it anticipates meeting this requirement through such purchases by that date. | ||||||||
PCA Mechanism | ||||||||
In 2002, the Washington Commission approved a PCA mechanism that provides for a rate adjustment process if PSE’s costs to provide customers’ electricity vary from a baseline power cost rate established in a rate proceeding. All significant variable power supply cost variables (hydroelectric and wind generation, market price for purchased power and surplus power, natural gas and coal fuel price, generation unit forced outage risk and transmission cost) are included in the PCA mechanism. | ||||||||
The PCA mechanism apportions increases or decreases in power costs, on a calendar year basis, between PSE and its customers on a graduated scale. | ||||||||
The graduated scale is as follows: | ||||||||
Annual Power Cost Variability | Customers’ Share | Company’s Share | ||||||
+/- $20 million | 0% | 100% | ||||||
+/- $20 million - $40 million | 50% | 50% | ||||||
+/- $40 million - $120 million | 90% | 10% | ||||||
+/- $120 + million | 95% | 5% | ||||||
Treasury Grant | ||||||||
Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 (Section 1603) authorizes the United States Department of the Treasury (U.S. Treasury) to make grants (Treasury Grants) to taxpayers who place specified energy property in service provided certain conditions are met. Section 1603 precludes a recipient from claiming PTCs on property for which a grant is claimed. | ||||||||
The Wild Horse wind project (Wild Horse) expansion facility was placed into service on November 9, 2009. The capacity of the Wild Horse facility was expanded from 229 megawatts (MW) to 273 MW through the addition of wind turbines. In February 2010, the U.S. Treasury approved a Treasury Grant of $28.7 million. The 343 MW Lower Snake River facility was placed into service on February 29, 2012. In December 2012, the U.S. Treasury approved a Treasury Grant of $205.3 million. | ||||||||
On December 30, 2010, the Washington Commission approved revisions to PSE’s Federal Incentive Tracker tariff, effective January 1, 2011. The rate schedule passed-through $5.5 million of the $28.7 million Wild Horse Expansion Treasury Grant in 2011. The order authorized PSE to pass back one-tenth of the Treasury Grant on an annual basis and included 23 months of Treasury Grant amortization to customers from February 2010 through December 2011, which represented the month the Treasury Grant funds were received through the end of the period over which the rates will be set. This represents an overall average rate reduction of 0.3%, with no impact to net income. | ||||||||
On February 29, 2012, PSE filed proposed tariff revisions, with stated effective dates of April 1, 2012, and subsequently revised by filing on March 29, 2012 with stated effective dates of June 1, 2012, to pass-through $2.4 million in interest on the unamortized balance of the Wild Horse Expansion Treasury Grant. On June 26, 2012, the Washington Commission approved PSE's methods and calculations and new rates became effective on July 3, 2012. | ||||||||
On January 31, 2013, the Washington Commission approved a rate change to the PSE's Federal Incentive Tracker tariff, effective February 1, 2013, which incorporated the effects of the Treasury Grant related to the Lower Snake River wind generation project and keeping the ten year amortization period and inclusion of interest on the unamortized balance of the grants. The rate change passed through 11 months of amortization for both grants to eligible customers over 11 months beginning February 1, 2013. Of the total credit, $34.6 million represents the pass-back of grant amortization and $23.8 million represents the pass through of interest. This represents an overall average rate decrease of 2.76%. | ||||||||
On December 27, 2013, the Washington Commission approved the annual true-up and rate filing to the PSE's Federal Incentive Tracker tariff, effective January 1, 2014. The true-up filing resulted in a total credit of $58.5 million to be passed back to eligible customers over the twelve months beginning January 1, 2014. Of the total credit, $37.8 million represents the pass-back of grant amortization and $20.6 million represents the pass through of interest, in addition to a minor true-up associated with the 2013 rate period. This filing represents an overall average rate increase of 0.26%. | ||||||||
Gas Regulation and Rates | ||||||||
Gas General Rate Cases and Other Filings Affecting Rates | ||||||||
On May 7, 2012, the Washington Commission issued its order in PSE's natural gas general rate case filed in June 2011, approving a general rate increase for natural gas customers of $13.4 million or 1.3% annually. The rate increases for natural gas customers became effective May 14, 2012. In its order, the Washington Commission approved a weighted cost of capital of 7.8% and a capital structure that included 48.0% common equity with a return on equity of 9.8%. | ||||||||
On June 1, 2012, PSE filed with the Washington Commission a petition seeking an Accounting Order authorizing PSE to change the existing natural gas conservation tracker mechanism into a rider mechanism to be consistent with the electric conservation program recovery. The accounting petition requested the ability to recover the costs associated with the Company's current gas conservation programs via transfers from amounts deferred for the over-recovery of commodity costs in the Company's PGA mechanism. The Commission granted PSE's accounting petition on June 28, 2012. The approved accounting petition resulted in an increase to gas conservation revenues of $6.9 million and an increase to conservation amortization expense of $6.6 million. | ||||||||
On June 25, 2013, the Washington Commission approved PSE's electric and natural gas decoupling mechanism and ERF tariff filings, effective July 1, 2013. The estimated revenue impact of the decoupling mechanism for natural gas is an increase of $10.8 million, or 1.1% annually. The estimated revenue impact of the ERF filings for natural gas is a decrease of $2.0 million, or a decrease of 0.2% annually. In its order, the Washington Commission approved a weighted cost of capital of 7.77% and a capital structure that included 48.0% common equity with a return on equity of 9.8%. | ||||||||
Subsequently, certain parties to this proceeding petitioned the Washington Commission to reconsider the order. On December 13, 2013, the Washington Commission approved a series of settlement agreements for rates effective January 1, 2014. These settlement agreements do not materially change the revenues originally approved in June 2013. As a result, certain high volume natural gas industrial customers rate schedules are excluded from the decoupling mechanism and will be subject to certain effects of abnormal weather, conservation impacts and changes in customer usage patterns. | ||||||||
On July 24, 2013, the Public Counsel Division of the Washington State Attorney General's Office (Public Counsel) and the Industrial Customers of Northwest Utilities (ICNU) each filed a petition in Thurston County Superior Court (the Court) seeking judicial review of various aspects of the Washington Commission's ERF and decoupling mechanism final order. The parties' petition argues that the order violates various procedural and substantive requirements of the Washington Administrative Procedure Act, and so requests that it be vacated and that the matter be remanded to the Washington Commission. Oral arguments regarding this matter are scheduled for May 2014. | ||||||||
Purchased Gas Adjustment | ||||||||
PSE has a PGA mechanism in retail natural gas rates to recover variations in natural gas supply and transportation costs. Variations in natural gas rates are passed through to customers; therefore, PSE’s net income is not affected by such variations. Changes in the PGA rates affect PSE’s revenue, but do not impact net income as the changes to revenue are offset by increased or decreased purchased gas and gas transportation costs. | ||||||||
On October 31, 2012, the Washington Commission approved PSE's PGA natural gas tariff filing and allowed the rates to go into effect on November 1, 2012 on a temporary basis subject to revision. The rates resulted in a decrease to the rates charged to customers under the PGA. On May 1, 2013, the Washington Commission approved the proposed rates and allowed them to be made permanent. The estimated revenue impact of the approved change is a decrease of $77.0 million, or 7.7% annually, with no impact on net operating income. | ||||||||
On October 30, 2013, the Washington Commission approved PSE's PGA natural gas tariff, effective on November 1, 2013, which reflected changes in wholesale gas and pipeline transportation costs and changes in deferral amortization rates. The estimated revenue impact of the approved change is an increase of $4.0 million, or 0.4% annually, with no impact on net operating income. | ||||||||
The following table sets forth natural gas rate adjustments that were approved by the Washington Commission and the corresponding impact to PSE’s annual revenue based on the effective dates: | ||||||||
Type of Rate | Effective Date | Average | Annual | |||||
Adjustment | Percentage | Increase (Decrease) | ||||||
Increase (Decrease) | in Revenue | |||||||
in Rates | (Dollars in Millions) | |||||||
Purchased Gas Adjustment | 1-Nov-13 | 0.40% | $4.00 | |||||
Decoupling Rate Filing | 1-Jul-13 | 1.1 | 10.8 | |||||
Expedited Rate Filing | 1-Jul-13 | -0.2 | -2 | |||||
Purchased Gas Adjustment | 1-Nov-12 | -7.7 | -77 | |||||
Natural Gas General Rate Case | 14-May-12 | 1.3 | 13.4 | |||||
Purchased Gas Adjustment | 1-Nov-11 | -4.3 | -43.5 | |||||
Natural Gas General Tariff Adjustment | 1-Apr-11 | 1.8 | 19 | |||||
In addition, PSE will be increasing the allowed delivery revenue per customer under the ERF filing by 2.2% for natural gas customers on January 1 of each year until the conclusion of PSE's next general rate case. | ||||||||
Environmental Remediation | ||||||||
The Company is subject to environmental laws and regulations by the federal, state and local authorities and is required to undertake certain environmental investigative and remedial efforts as a result of these laws and regulations. The Company has been named by the Environmental Protection Agency (EPA), the Washington State Department of Ecology and/or other third parties as potentially responsible at several contaminated sites and manufactured gas plant sites. PSE has implemented an ongoing program to test, replace and remediate certain underground storage tanks (UST) as required by federal and state laws. The UST replacement component of this effort is finished, but PSE continues its work remediating and/or monitoring relevant sites. During 1992, the Washington Commission issued orders regarding the treatment of costs incurred by the Company for certain sites under its environmental remediation program. The orders authorize the Company to accumulate and defer prudently incurred cleanup costs paid to third parties for recovery in rates established in future rate proceedings, subject to Washington Commission review. The Washington Commission consolidated the gas and electric methodological approaches to remediation and deferred accounting in an order issued October 8, 2008. Per the guidance of ASC 450, “Contingencies,” the Company reviews its estimated future obligations and adjusts loss reserves quarterly. Management believes it is probable and reasonably estimable that the impact of the potential outcomes of disputes with certain property owners and other potentially responsible parties will result in environmental remediation costs ranging from $31.3 million to $49.5 million for gas and from $9.1 million to $27.4 million for electric. The Company does not consider any amounts within those ranges as being a better estimate and has therefore accrued $31.3 million and $9.1 million for gas and electric, respectively. The Company believes a significant portion of its past and future environmental remediation costs are recoverable from insurance companies, from third parties or from customers under a Washington Commission order. The Company is also subject to a cost-sharing agreement with a third party regarding an environmental remediation project in Seattle, Washington. The Company has taken the lead for completing the project. As of December 31, 2013, the Company’s share of remediation costs is estimated to be approximately $19.4 million. For the year ended December 31, 2013, the Company incurred deferred electric and natural gas environmental costs of $12.3 million and $45.1 million, net of insurance proceeds, respectively. |
Dividend_Payment_Restrictions
Dividend Payment Restrictions | 12 Months Ended |
Dec. 31, 2013 | |
Dividend Payment Restrictions [Abstract] | ' |
Dividend Payment Restrictions | ' |
Dividend Payment Restrictions | |
The payment of dividends by PSE to Puget Energy is restricted by provisions of certain covenants applicable to long-term debt contained in PSE’s electric and natural gas mortgage indentures. At December 31, 2013, approximately $469.6 million of unrestricted retained earnings was available for the payment of dividends under the most restrictive mortgage indenture covenant. | |
Beginning February 6, 2009, pursuant to the terms of the Washington Commission merger order, PSE may not declare or pay dividends if PSE’s common equity ratio, calculated on a regulatory basis, is 44.0% or below except to the extent a lower equity ratio is ordered by the Washington Commission. Also, pursuant to the merger order, PSE may not declare or make any distribution unless on the date of distribution PSE’s corporate credit/issuer rating is investment grade, or, if its credit ratings are below investment grade, PSE’s ratio of Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) to interest expense for the most recently ended four fiscal quarter periods prior to such date is equal to or greater than 3 to one. The common equity ratio, calculated on a regulatory basis, was 47.4% at December 31, 2013 and the EBITDA to interest expense was 4.4 to one for the 12 months then ended. | |
PSE’s ability to pay dividends is also limited by the terms of its credit facilities, pursuant to which PSE is not permitted to pay dividends during any Event of Default (as defined in the facilities), or if the payment of dividends would result in an Event of Default, such as failure to comply with certain financial covenants. | |
Puget Energy’s ability to pay dividends is also limited by the merger order issued by the Washington Commission as well as by the terms of its credit facilities. Pursuant to the merger order, Puget Energy may not declare or make a distribution unless on such date Puget Energy’s ratio of consolidated EBITDA to consolidated interest expense for the four most recently ended fiscal quarters prior to such date is equal to or greater than 2 to one. At December 31, 2013, the EBITDA to interest expense was 2.9 to one for the 12 months then ended. | |
At December 31, 2013, the Company was in compliance with all applicable covenants, including those pertaining to the payment of dividends. |
Utility_Plant
Utility Plant | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Utility Plant [Abstract] | ' | |||||||||||||||
Utility Plant | ' | |||||||||||||||
Utility Plant | ||||||||||||||||
Puget Energy | Puget Sound Energy | |||||||||||||||
Utility Plant | Estimated | At December 31, | At December 31, | |||||||||||||
Useful Life | ||||||||||||||||
(Dollars In Thousands) | (Years) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Electric, gas and common utility plant classified by prescribed accounts : | ||||||||||||||||
Distribution plant | Oct-50 | $ | 4,448,451 | $ | 4,276,123 | $ | 6,127,732 | $ | 5,993,055 | |||||||
Production plant | 25-125 | 2,966,223 | 2,480,135 | 3,948,270 | 3,464,528 | |||||||||||
Transmission plant | 45-65 | 1,043,605 | 984,018 | 1,162,929 | 1,108,104 | |||||||||||
General plant | May-35 | 504,965 | 445,982 | 599,156 | 543,195 | |||||||||||
Intangible plant (including capitalized software) | Mar-50 | 316,614 | 181,884 | 309,972 | 181,596 | |||||||||||
Plant acquisition adjustment | 30-Jul | 242,826 | 242,659 | 282,792 | 282,624 | |||||||||||
Underground storage | 25-60 | 27,857 | 27,331 | 41,501 | 40,987 | |||||||||||
Liquefied natural gas storage | 25-45 | 12,622 | 12,622 | 14,492 | 14,492 | |||||||||||
Plant held for future use | NA | 28,742 | 18,416 | 28,895 | 18,568 | |||||||||||
Recoverable Cushion Gas | NA | 8,655 | 8,655 | 8,655 | 8,655 | |||||||||||
Plant not classified | NA | 124,589 | 155,626 | 124,589 | 155,625 | |||||||||||
Capital leases, net of accumulated amortization 1 | 5 | 17,051 | 24,629 | 17,051 | 24,629 | |||||||||||
Less: accumulated provision for depreciation | (1,373,178 | ) | (1,067,424 | ) | (4,297,012 | ) | (4,045,402 | ) | ||||||||
Subtotal | $ | 8,369,022 | $ | 7,790,656 | $ | 8,369,022 | $ | 7,790,656 | ||||||||
Construction work in progress | NA | 310,318 | 766,035 | 310,318 | 766,035 | |||||||||||
Net utility plant | $ | 8,679,340 | $ | 8,556,691 | $ | 8,679,340 | $ | 8,556,691 | ||||||||
_______________ | ||||||||||||||||
1 | Accumulated amortization of capital leases at Puget Energy was $20.8 million in 2013 and $13.3 million in 2012. Accumulated amortization of capital leases at PSE was $20.8 million in 2013 and $13.3 million in 2012. | |||||||||||||||
Jointly owned generating plant service costs are included in utility plant service cost at the Company's ownership share. The following table indicates the Company’s percentage ownership and the extent of the Company’s investment in jointly owned generating plants in service at December 31, 2013. These amounts are also included in the Utility Plant table above. | ||||||||||||||||
Puget Energy’s | Puget Sound Energy’s | |||||||||||||||
Share | Share | |||||||||||||||
Jointly Owned Generating Plants | Energy Source (Fuel) | Company’s Ownership Share | Plant in Service at Cost | Accumulated Depreciation | Plant in Service at Cost | Accumulated Depreciation | ||||||||||
(Dollars in Thousands) | ||||||||||||||||
Colstrip Units 1 & 2 | Coal | 50 | % | $ | 162,090 | $ | (20,875 | ) | $ | 297,494 | $ | (156,278 | ) | |||
Colstrip Units 3 & 4 | Coal | 25 | % | 234,984 | (33,270 | ) | 513,992 | (312,278 | ) | |||||||
Colstrip Units 1 – 4 Common Facilities | Coal | various | 83 | (17 | ) | 252 | (185 | ) | ||||||||
Frederickson 1 | Gas | 49.85 | % | 61,785 | (4,255 | ) | 70,719 | (13,189 | ) | |||||||
The Company recognized new Asset Retirement Obligations (ARO) of $0.4 million and $7.7 million in 2013 and 2012, respectively. | ||||||||||||||||
The following table describes all changes to the Company’s ARO liability: | ||||||||||||||||
At December 31, | ||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||||
Asset retirement obligation at beginning of period | $ | 45,496 | $ | 26,540 | ||||||||||||
New asset retirement obligation recognized in the period | 350 | 7,737 | ||||||||||||||
Liability settled in the period | (1,188 | ) | (2,960 | ) | ||||||||||||
Revisions in estimated cash flows | 2,769 | 12,632 | ||||||||||||||
Accretion expense | 1,260 | 1,547 | ||||||||||||||
Asset retirement obligation at end of period | $ | 48,687 | $ | 45,496 | ||||||||||||
The Company has identified the following obligations, as defined by ASC 410, “Asset Retirement and Environmental Obligations,” which were not recognized because the liability for these assets cannot be reasonably estimated at December 31, 2013 due to: | ||||||||||||||||
• | a legal obligation under Federal Dangerous Waste Regulations to dispose of asbestos-containing material in facilities that are not scheduled for remodeling, demolition or sales. The disposal cost related to these facilities could not be measured since the retirement date is indeterminable; therefore, the liability cannot be reasonably estimated; | |||||||||||||||
• | an obligation under Washington state law to decommission the wells at the Jackson Prairie natural gas storage facility upon termination of the project. Since the project is expected to continue as long as the Northwest pipeline continues to operate, the liability cannot be reasonably estimated; | |||||||||||||||
• | an obligation to pay its share of decommissioning costs at the end of the functional life of the major transmission lines. The major transmission lines are expected to be used indefinitely; therefore, the liability cannot be reasonably estimated. | |||||||||||||||
• | a legal obligation under Washington state environmental laws to remove and properly dispose of certain under and above ground fuel storage tanks. The disposal costs related to under and above ground storage tanks could not be measured since the retirement date is indeterminable; therefore, the liability cannot be reasonably estimated; | |||||||||||||||
• | an obligation to pay decommissioning costs at the end of utility service franchise agreements to restore the surface of the franchise area. The decommissioning costs related to facilities at the franchise area could not be measured since the decommissioning date is indeterminable; therefore, the liability cannot be reasonably estimated; and | |||||||||||||||
• | a potential legal obligation may arise upon the expiration of an existing FERC hydropower license if FERC orders the project to be decommissioned, although PSE contends that FERC does not have such authority. Given the value of ongoing generation, flood control and other benefits provided by these projects, PSE believes that the potential for decommissioning is remote and cannot be reasonably estimated. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||||||||||||||||
Long-term Debt | ' | |||||||||||||||||||||
(6) Long-Term Debt | ||||||||||||||||||||||
(Dollars in Thousands) | At December 31, | |||||||||||||||||||||
Series | Type | Due | 2013 | 2012 | ||||||||||||||||||
Puget Sound Energy: | ||||||||||||||||||||||
6.83% | First Mortgage Bond | 2013 | $ | — | $ | 3,000 | ||||||||||||||||
6.90% | First Mortgage Bond | 2013 | — | 10,000 | ||||||||||||||||||
7.35% | First Mortgage Bond | 2015 | 10,000 | 10,000 | ||||||||||||||||||
7.36% | First Mortgage Bond | 2015 | 2,000 | 2,000 | ||||||||||||||||||
5.20% | Senior Secured Note | 2015 | 150,000 | 150,000 | ||||||||||||||||||
6.75% | Senior Secured Note | 2016 | 250,000 | 250,000 | ||||||||||||||||||
5.50% | Promissory Note 1 | 2017 | 2,412 | 2,412 | ||||||||||||||||||
6.74% | Senior Secured Note | 2018 | 200,000 | 200,000 | ||||||||||||||||||
7.15% | First Mortgage Bond | 2025 | 15,000 | 15,000 | ||||||||||||||||||
7.20% | First Mortgage Bond | 2025 | 2,000 | 2,000 | ||||||||||||||||||
7.02% | Senior Secured Note | 2027 | 300,000 | 300,000 | ||||||||||||||||||
7.00% | Senior Secured Note | 2029 | 100,000 | 100,000 | ||||||||||||||||||
3.90% | Pollution Control Bond | 2031 | 138,460 | — | ||||||||||||||||||
4.00% | Pollution Control Bond | 2031 | 23,400 | — | ||||||||||||||||||
5.00% | Pollution Control Bond | 2031 | — | 138,460 | ||||||||||||||||||
5.10% | Pollution Control Bond | 2031 | — | 23,400 | ||||||||||||||||||
5.48% | Senior Secured Note | 2035 | 250,000 | 250,000 | ||||||||||||||||||
6.72% | Senior Secured Note | 2036 | 250,000 | 250,000 | ||||||||||||||||||
6.27% | Senior Secured Note | 2037 | 300,000 | 300,000 | ||||||||||||||||||
5.76% | Senior Secured Note | 2039 | 350,000 | 350,000 | ||||||||||||||||||
5.80% | Senior Secured Note | 2040 | 325,000 | 325,000 | ||||||||||||||||||
5.76% | Senior Secured Note | 2040 | 250,000 | 250,000 | ||||||||||||||||||
4.43% | Senior Secured Note | 2041 | 250,000 | 250,000 | ||||||||||||||||||
5.64% | Senior Secured Note | 2041 | 300,000 | 300,000 | ||||||||||||||||||
4.70% | Senior Secured Note | 2051 | 45,000 | 45,000 | ||||||||||||||||||
6.97% | Junior Subordinated Note | 2067 | 250,000 | 250,000 | ||||||||||||||||||
Unamortized discount on senior notes | (14 | ) | (14 | ) | ||||||||||||||||||
PSE long-term debt | $ | 3,763,258 | $ | 3,776,258 | ||||||||||||||||||
Puget Energy: | ||||||||||||||||||||||
Fair value adjustment of PSE long-term debt | $ | (229,746 | ) | $ | (264,017 | ) | ||||||||||||||||
Credit Facility | 2017 | 299,000 | 434,000 | |||||||||||||||||||
6.50% | Senior Secured Note | 2020 | 450,000 | 450,000 | ||||||||||||||||||
6.00% | Senior Secured Note | 2021 | 500,000 | 500,000 | ||||||||||||||||||
5.63% | Senior Secured Note | 2022 | 450,000 | 450,000 | ||||||||||||||||||
Unamortized discount on senior notes | (36 | ) | (41 | ) | ||||||||||||||||||
Total Puget Energy long-term debt | $ | 5,232,476 | $ | 5,346,200 | ||||||||||||||||||
_______________ | ||||||||||||||||||||||
1 | Puget Western, Inc., a wholly owned subsidiary of PSE, Promissory Note. | |||||||||||||||||||||
PSE's senior secured notes will cease to be secured by the pledged first mortgage bonds on the date that all of the first mortgage bonds issued and outstanding under the electric or natural gas utility mortgage indenture have been retired. As of December 31, 2013, the latest maturity date of the first mortgage bonds, other than pledged first mortgage bonds, is December 22, 2025. | ||||||||||||||||||||||
Puget Sound Energy Long-Term Debt | ||||||||||||||||||||||
PSE has in effect a shelf registration statement under which it may issue, from time to time, up to $800 million aggregate principal amount of senior notes secured by pledged first mortgage bonds. The Company remains subject to the restrictions of PSE’s indentures and credit agreements on the amount of first mortgage bonds that PSE may issue. | ||||||||||||||||||||||
Substantially all utility properties owned by PSE are subject to the lien of the Company’s electric and natural gas mortgage indentures. To issue additional first mortgage bonds under these indentures, PSE’s earnings available for interest must exceed certain minimums as defined in the indentures. At December 31, 2013, the earnings available for interest exceeded the required amount. | ||||||||||||||||||||||
Puget Sound Energy Pollution Control Bonds | ||||||||||||||||||||||
PSE has two series of Pollution Control Bonds (the Bonds) outstanding. Amounts outstanding were borrowed from the City of Forsyth, Montana who obtained the funds from the sale of Customized Pollution Control Refunding Bonds issued to finance pollution control facilities at Colstrip Units 3 & 4. | ||||||||||||||||||||||
On May 23, 2013, PSE refinanced $161.9 million of the Bonds to a lower weighted average interest rate from 5.01% to 3.91%. The Bonds will mature on March 1, 2031. On or after March 1, 2023, the Company may elect to call the bonds at a redemption price of 100% of the principal amount thereof, without premium, plus accrued interest, if any, to the redemption date. Due to the refinance of the Bonds, Puget Energy wrote off $18.0 million of fair value related to the Bonds that were redeemed to interest expense. | ||||||||||||||||||||||
Each series of the Bonds is collateralized by a pledge of PSE’s first mortgage bonds, the terms of which match those of the Bonds. No payment is due with respect to the related series of first mortgage bonds so long as payment is made on the Bonds. | ||||||||||||||||||||||
Puget Energy Long-Term Debt | ||||||||||||||||||||||
On June 15, 2012, Puget Energy issued $450.0 million of senior secured notes. Proceeds from the note offering were used to pay down $425.0 million of the revolving $859.0 million senior secured credit facility balance resulting in an outstanding balance of $434.0 million as of December 31, 2012. In 2013, an additional paydown of the senior secured credit facility resulted in a remaining balance at of $299.0 million at December 31, 2013. | ||||||||||||||||||||||
At the time of the merger in February 2009, Puget Energy entered into a $1.225 billion five-year term-loan and a $1.0 billion five-year capital expenditure credit facility for funding capital expenditures. On February 10, 2012, Puget Energy entered into a $1.0 billion five-year revolving senior secured credit facility. Concurrent with the closing of the new PSE credit facilities in February 2013, the Company reduced the size of Puget Energy's credit facility to $800.0 million. The Puget Energy revolving senior secured credit facility also has an accordion feature that, upon the banks' approval, would increase the size of the facility to $1.3 billion. All other terms and conditions of that facility remain unchanged from when it was committed in 2012. As a revolving facility, amounts borrowed may be repaid without a reduction in the size of the facility. Initial borrowings under this facility were used to repay debt outstanding under the term loan and capital expenditure credit facility and those agreements were terminated. | ||||||||||||||||||||||
The Puget Energy revolving senior secured credit facility contains usual and customary affirmative and negative covenants. The agreement also contains two financial covenants based on the following ratios: Group Funds From Operations (FFO) Coverage Ratio and Maximum Leverage Ratio, as defined in the agreement governing the senior secured credit facility. | ||||||||||||||||||||||
Long-Term Debt Maturities | ||||||||||||||||||||||
The principal amounts of long-term debt maturities for the next five years and thereafter are as follows: | ||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Maturities of: | ||||||||||||||||||||||
PSE long-term debt | $ | — | $ | 162,000 | $ | 250,000 | $ | 2,412 | $ | 200,000 | $ | 3,148,860 | $ | 3,763,272 | ||||||||
Puget Energy long-term debt | — | — | — | 299,000 | — | 1,400,000 | 1,699,000 | |||||||||||||||
Puget Energy long-term debt | $ | — | $ | 162,000 | $ | 250,000 | $ | 301,412 | $ | 200,000 | $ | 4,548,860 | $ | 5,462,272 | ||||||||
Financial Covenants | ||||||||||||||||||||||
Puget Energy's credit facility contains financial covenants related to group FFO coverage and maximum leverage. As of December 31, 2013, the Company is in compliance with its long-term debt financial covenants. |
Liquidity_Facilities_and_Other
Liquidity Facilities and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2013 | |
Liquidity Facilities and Other Financing Arrangements [Abstract] | ' |
Liquidity Facilities and Other Financing Arrangements | ' |
Liquidity Facilities and Other Financing Arrangements | |
As of December 31, 2013 and 2012, PSE had $162.0 million and $181.0 million in short-term debt outstanding, respectively, exclusive of the demand promissory note with Puget Energy. Outside of the consolidation of PSE’s short-term debt, Puget Energy had no short-term debt outstanding in either year as borrowings under its credit facilities are classified as long-term. PSE’s weighted-average interest rate on short-term debt, including borrowing rate, commitment fees and the amortization of debt issuance costs, during 2013 and 2012 was 3.93% and 6.49%, respectively. As of December 31, 2013, PSE and Puget Energy had several committed credit facilities that are described below. | |
Puget Sound Energy Credit Facilities | |
On February 4, 2013, PSE entered into two new credit facilities and terminated its previous three credit facilities. The new credit facilities provide, in aggregate, $1.0 billion of short-term liquidity needs. These facilities consist of a $650.0 million revolving liquidity facility (which includes a liquidity letter of credit facility and a swingline facility) to be used for general corporate purposes, including a backstop to the Company's commercial paper program and a $350.0 million revolving energy hedging facility (which includes an energy hedging letter of credit facility). The $650.0 million liquidity facility includes a swingline feature allowing same day availability on borrowings up to $75.0 million. The new credit facilities also have an accordion feature that, upon the banks' approval, would increase the total size of these facilities to $1.450 billion. | |
The credit agreements for these two replacement credit facilities contain similar terms and conditions, are syndicated among numerous lenders and mature in February 2018. The credit agreements contain usual and customary affirmative and negative covenants, that among other things, place limitations on PSE's ability to incur additional indebtedness and liens, issue equity, pay dividends, transact with affiliates and make asset dispositions and investments. The credit agreements also contain a financial covenant of total debt to total capitalization of 65% or less. PSE certifies its compliance with such covenants to participating banks each quarter. As of December 31, 2013, PSE was in compliance with all applicable covenants. | |
The credit agreements provide PSE with the ability to borrow at different interest rate options. The credit agreements allow PSE to borrow at the bank's prime rate or to make floating rate advances at the London Interbank Offer Rate (LIBOR) plus a spread that is based upon PSE's credit rating. PSE must pay a commitment fee on the unused portion of the credit facilities. The spreads and the commitment fee depend on PSE's credit ratings. As of the date of this report, the spread to the LIBOR is 1.25% and the commitment fee is 0.175%. | |
As of December 31, 2013, no amount was drawn and outstanding under PSE’s $650.0 million liquidity facility. A letter of credit in the amount of $3.0 million in support of contracts was outstanding under the facility, and $162.0 million was outstanding under the commercial paper program. A letter of credit in the amount of $1.0 million was outstanding under the $350.0 million facility supporting energy hedging. | |
Demand Promissory Note On June 1, 2006, PSE entered into a revolving credit facility with Puget Energy, in the form of a credit agreement and a Demand Promissory Note (Note) pursuant to which PSE may borrow up to $30.0 million from Puget Energy subject to approval by Puget Energy. Under the terms of the Note, PSE pays interest on the outstanding borrowings based on the lower of the weighted-average interest rates of PSE’s outstanding commercial paper interest rate or PSE’s senior unsecured revolving credit facility. Absent such borrowings, interest is charged at one-month LIBOR plus 0.25%. At December 31, 2013, the outstanding balance of the Note was $29.6 million. The outstanding balance and the related interest under the Note are eliminated by Puget Energy upon consolidation of PSE’s financial statements. | |
Puget Energy Credit Facility At December 31, 2013, Puget Energy maintained an $800.0 million five-year revolving senior secured credit facility. The Puget Energy revolving senior secured credit facility also has an accordion feature that, upon the banks' approval, would increase the size of the facility to $1.3 billion. | |
The five-year revolving senior secured credit facility contains usual and customary affirmative and negative covenants. The agreement also contains two financial covenants based on the following ratios: Group Funds From Operations (FFO) Coverage Ratio and Maximum Leverage Ratio, as defined in the agreement governing the senior secured credit facility. As of December 31, 2013, Puget Energy was in compliance with all applicable covenants. | |
The revolving senior secured credit facility provides Puget Energy the ability to borrow at different interest rate options and includes variable fee levels. Interest rates may be based on the prime rate or LIBOR, plus a spread based on Puget Energy’s credit ratings. Puget Energy must pay a commitment fee on the unused portion of the facility. At December 31, 2013, $299.0 million was drawn and outstanding under the facility, the spread over LIBOR was 1.75% and the commitment fee was 0.30%. Puget Energy entered into interest rate swap contracts to manage the interest rate risk associated with the credit facility. |
Leases
Leases | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Leases [Abstract] | ' | ||||||
Leases | ' | ||||||
Leases | |||||||
PSE leases buildings and assets under operating leases. Certain leases contain purchase options, renewal options and escalation provisions. Operating lease expenses net of sublease receipts were: | |||||||
(Dollars in Thousands) | |||||||
At December 31, | |||||||
2013 | $ | 29,392 | |||||
2012 | 29,661 | ||||||
2011 | 24,789 | ||||||
Payments received for the subleases of properties were immaterial for each of the years ended 2013, 2012 and 2011. | |||||||
Future minimum lease payments for non-cancelable leases net of sublease receipts are: | |||||||
(Dollars in Thousands) | |||||||
At December 31, | Operating | Capital | |||||
2014 | $ | 16,603 | $ | 8,160 | |||
2015 | 16,963 | 8,160 | |||||
2016 | 18,922 | 2,718 | |||||
2017 | 18,852 | — | |||||
2018 | 16,051 | — | |||||
Thereafter | 68,847 | — | |||||
Total minimum lease payments | $ | 156,238 | $ | 19,038 | |||
Accounting_for_Derivative_Inst
Accounting for Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||||||||
PSE employs various energy portfolio optimization strategies, but is not in the business of assuming risk for the purpose of realizing speculative trading revenue. The nature of serving regulated electric customers with its portfolio of owned and contracted electric generation resources exposes PSE and its customers to some volumetric and commodity price risks within the sharing mechanism of the PCA. Therefore, wholesale market transactions and related hedging strategies are focused on reducing costs and risks where feasible, thus reducing volatility in costs in the portfolio. In order to manage its exposure to the variability in future cash flows for forecasted energy transactions, PSE utilizes a programmatic hedging strategy which extends out three years. PSE's energy risk portfolio management function monitors and manages these risks using analytical models and tools. In order to manage risks effectively, PSE enters into forward physical electric and natural gas purchase and sale agreements, fixed-for-floating swap contracts, and commodity call/put options. The forward physical electric agreements are both fixed and variable (at index), while the physical natural gas contracts are variable with investment grade counterparties that do not require collateral calls on the contracts. To fix the price of wholesale electricity and natural gas, PSE may enter into fixed-for-floating swap (financial) contracts with various counterparties. PSE also utilizes natural gas call and put options as an additional hedging instrument to increase the hedging portfolio's flexibility to react to commodity price fluctuations. | |||||||||||||||||||
The Company manages its interest rate risk through the issuance of mostly fixed-rate debt with varied maturities. The Company utilizes internal cash from operations, borrowings under its commercial paper program, and its credit facilities to meet short-term funding needs. The Company may enter into swap instruments or other financial hedge instruments to manage the interest rate risk associated with these debts. As of December 31, 2013, Puget Energy had two interest rate swap contracts outstanding which extend to January 2017. PSE did not have any outstanding interest rate swap instruments. | |||||||||||||||||||
The following table presents the volumes, fair values and locations of the Company's derivative instruments recorded on the balance sheets: | |||||||||||||||||||
Puget Energy and | Year Ended December 31, | ||||||||||||||||||
Puget Sound Energy | |||||||||||||||||||
(Dollars in Thousands) | Volumes (millions) | Assets 1 | Liabilities 2 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swap derivatives 3 | $450.00 | $450.00 | $ | — | $ | — | $ | 13,223 | $ | 21,524 | |||||||||
Electric portfolio derivatives | * | * | 18,479 | 9,557 | 37,312 | 131,193 | |||||||||||||
Natural gas derivatives (MMBtus) 4 | 423.5 | 516.9 | 8,121 | 12,126 | 35,676 | 108,078 | |||||||||||||
Total derivative contracts | $ | 26,600 | $ | 21,683 | $ | 86,211 | $ | 260,795 | |||||||||||
Current | $ | 18,867 | $ | 6,869 | $ | 48,049 | $ | 177,519 | |||||||||||
Long-term | 7,733 | 14,814 | 38,162 | 83,276 | |||||||||||||||
Total derivative contracts | $ | 26,600 | $ | 21,683 | $ | 86,211 | $ | 260,795 | |||||||||||
___________ | |||||||||||||||||||
1 | Balance sheet location: Current and Long-term Unrealized gain on derivative instruments. | ||||||||||||||||||
2 | Balance sheet location: Current and Long-term Unrealized loss on derivative instruments. | ||||||||||||||||||
3 | Interest rate swap contracts are only held at Puget Energy. | ||||||||||||||||||
4 | PSE had a net derivative liability and an offsetting regulatory asset of $27.6 million at December 31, 2013 and $96.0 million at December 31, 2012 related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, due to the PGA mechanism. | ||||||||||||||||||
* | Electric portfolio derivatives consist of electric generation fuel of 145.6 million One Million British Thermal Units (MMBtus) and purchased electricity of 8.6 million MWhs at December 31, 2013 and 129.7 million MMBtus and 10.7 million MWhs at December 31, 2012. | ||||||||||||||||||
For further details regarding the fair value of derivative instruments, see Note 10. | |||||||||||||||||||
ASU 2013-01 requires disclosure of both gross and net information for recognized derivative assets and liabilities. It is the Company's policy to record all derivative transactions on a gross basis at the contract level, without offsetting assets or liabilities. The Company generally enters into transactions using the following master agreements: WSPP, Inc. (WSPP) agreements which standardize physical power contracts; International Swaps and Derivatives Association (ISDA) agreements which standardize financial gas and electric contracts; and North American Energy Standards Board (NAESB) agreements which standardize physical gas contracts. The Company believes that such agreements reduce credit risk exposure because such agreements provide for the netting and offsetting of monthly payments as well as right of set-off in the event of counterparty default. The set-off provision can be used as a final settlement of accounts which extinguishes the mutual debts owed between the parties in exchange for a new net amount. | |||||||||||||||||||
The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: | |||||||||||||||||||
Puget Energy and Puget Sound Energy | |||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||
(Dollars in Thousands) | Gross Amounts Recognized in the Statement of Financial Position 1 | Gross Amounts Offset in the Statement of Financial Position | Net of Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||
Commodity Contracts | Cash Collateral Received/Posted | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||
Energy Derivative Contracts | $ | 26,600 | $ | — | $ | 26,600 | $ | (19,491 | ) | $ | — | $ | 7,109 | ||||||
Liabilities | |||||||||||||||||||
Energy Derivative Contracts | $ | 72,988 | $ | — | $ | 72,988 | $ | (19,491 | ) | $ | — | $ | 53,497 | ||||||
Interest Rate Swaps 2 | $ | 13,223 | $ | — | $ | 13,223 | $ | — | $ | — | $ | 13,223 | |||||||
Puget Energy and Puget Sound Energy | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||
(Dollars in Thousands) | Gross Amounts Recognized in the Statement of Financial Position 1 | Gross Amounts Offset in the Statement of Financial Position | Net of Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||
Commodity Contracts | Cash Collateral Received/Posted | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||
Energy Derivative Contracts | $ | 21,683 | $ | — | $ | 21,683 | $ | (14,126 | ) | $ | — | $ | 7,557 | ||||||
Liabilities | |||||||||||||||||||
Energy Derivative Contracts | $ | 239,271 | $ | — | $ | 239,271 | $ | (14,126 | ) | $ | — | $ | 225,145 | ||||||
Interest Rate Swaps 2 | $ | 21,524 | $ | — | $ | 21,524 | $ | — | $ | — | $ | 21,524 | |||||||
___________ | |||||||||||||||||||
1. | All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of Offset. | ||||||||||||||||||
2 | Interest Rate Swap Contracts are only held at Puget Energy. | ||||||||||||||||||
Due to the merger in 2009, Puget Energy recorded all derivative contracts at fair value as either assets or liabilities. Certain contracts meeting the criteria defined in ASC 815 were subsequently designated as NPNS or cash flow hedges, thereby causing differences in the derivative unrealized gains/losses to be recorded through earnings between Puget Energy and PSE. These differences will occur through February 2015. | |||||||||||||||||||
The following tables present the effect and locations of the Company's derivatives not designated as hedging instruments, recorded on the statements of income: | |||||||||||||||||||
Puget Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Other deductions | $ | 2,420 | $ | (4,288 | ) | $ | (28,601 | ) | ||||||||||
Interest expense | (5,904 | ) | (29,727 | ) | (46,045 | ) | |||||||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Unrealized gain (loss) on derivative instruments, net 1 | 102,744 | 131,407 | (23,171 | ) | ||||||||||||||
Electric generation fuel | (27,008 | ) | (66,762 | ) | (98,208 | ) | |||||||||||||
Purchased electricity | (38,299 | ) | (138,551 | ) | (66,845 | ) | |||||||||||||
Total gain (loss) recognized in income on derivatives | $ | 33,953 | $ | (107,921 | ) | $ | (262,870 | ) | |||||||||||
___________ | |||||||||||||||||||
1 | For 2012 and 2011, the amounts differ from the amounts stated in the statements of income as they do not include amortization related to contracts that were recorded at fair value at the time of the February 2009 merger and subsequently designated as NPNS of $2.2 million for the year ended December 31, 2012 and $11.7 million for the year ended December 31, 2011. | ||||||||||||||||||
Puget Sound Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Unrealized gain (loss) on derivative instruments, net | $ | 98,880 | $ | 119,120 | $ | (54,146 | ) | |||||||||||
Electric generation fuel | (27,008 | ) | (66,762 | ) | (98,208 | ) | |||||||||||||
Purchased electricity | (38,299 | ) | (138,551 | ) | (66,845 | ) | |||||||||||||
Total gain (loss) recognized in income on derivatives | $ | 33,573 | $ | (86,193 | ) | $ | (219,199 | ) | |||||||||||
The unrealized gain or loss on derivative contracts is reported in the statement of cash flows under the operating activities section. However, at the time of the merger in 2009, all derivative contracts at Puget Energy were assessed to identify contracts that have a “more than an insignificant” fair value. If the fair value was greater than 10% of the notional value, the contract was deemed as having a financing element. For those contracts, the cash inflows (outflows) are presented in the financing activities section of the statement of cash flows. For the years ended December 31, 2013, 2012 and 2011, cash outflows related to financing activities of $34.3 million, $92.7 million and $182.7 million, respectively, were reported on Puget Energy's statement of cash flows. | |||||||||||||||||||
For derivative instruments previously designated as cash flow hedges (including both commodity and interest rate swap contracts), the effective portion of the gain or loss on the derivative was recorded as a component of OCI, and then is reclassified into earnings in the same period(s) during which the hedged transaction affects earnings. During 2013, Puget Energy reclassified $0.7 million in losses from accumulated OCI into earnings. This was the result of paying down $135.0 million on Puget Energy's revolving senior secured credit facility, thus causing the related forecasted transactions (i.e., future interest payments associated with the debt pay down) to become remote of occurring. | |||||||||||||||||||
Puget Energy and PSE expect $0.7 million and $2.1 million of losses, respectively, in accumulated OCI will be reclassified into earnings within the next twelve months. The Company does not attempt cash flow hedging for any new transactions and records all mark-to-market adjustments through earnings. | |||||||||||||||||||
The following tables present the Company's pre-tax gain (loss) on derivatives that were previously in a cash flow hedge relationship, and subsequently reclassified out of accumulated OCI into income: | |||||||||||||||||||
Puget Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Interest expense | $ | (4,505 | ) | $ | (17,811 | ) | $ | (39,143 | ) | |||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Electric generation fuel | — | 100 | (679 | ) | ||||||||||||||
Purchased electricity | (57 | ) | (671 | ) | (1,698 | ) | |||||||||||||
Total | $ | (4,562 | ) | $ | (18,382 | ) | $ | (41,520 | ) | ||||||||||
Puget Sound Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Interest expense | $ | (488 | ) | $ | (488 | ) | $ | (488 | ) | |||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Electric generation fuel | — | 97 | (20,625 | ) | ||||||||||||||
Purchased electricity | (3,922 | ) | (12,955 | ) | (12,726 | ) | |||||||||||||
Total | $ | (4,410 | ) | $ | (13,346 | ) | $ | (33,839 | ) | ||||||||||
The Company is exposed to credit risk primarily through buying and selling electricity and natural gas to serve its customers. Credit risk is the potential loss resulting from a counterparty's non-performance under an agreement. The Company manages credit risk with policies and procedures for, among other things, counterparty credit analysis, exposure measurement, exposure monitoring and exposure mitigation. | |||||||||||||||||||
The Company monitors counterparties that have significant swings in credit default swap rates, have credit rating changes by external rating agencies, have changes in ownership or are experiencing financial distress. Where deemed appropriate, the Company may request collateral or other security from its counterparties to mitigate potential credit default losses. Criteria employed in this decision include, among other things, the perceived creditworthiness of the counterparty and the expected credit exposure. | |||||||||||||||||||
It is possible that volatility in energy commodity prices could cause the Company to have material credit risk exposure with one or more counterparties. If such counterparties fail to perform their obligations under one or more agreements, the Company could suffer a material financial loss. However, as of December 31, 2013, approximately 99.9% of the Company's energy portfolio exposure, excluding NPNS transactions, is with counterparties that are rated at least investment grade by the major rating agencies and 0.1% are either rated below investment grade or not rated by rating agencies. The Company assesses credit risk internally for counterparties that are not rated. | |||||||||||||||||||
As the Company generally enters into transactions using the WSPP, ISDA and NAESB master agreements, it believes that such agreements reduce credit risk exposure because they provide for the netting and offsetting of monthly payments and, in the event of counterparty default, termination payments. | |||||||||||||||||||
The Company computes credit reserves at a master agreement level by counterparty (i.e., WSPP, ISDA, or NAESB). The Company considers external credit ratings and market factors, such as credit default swaps and bond spreads, in the determination of reserves. The Company recognizes that external ratings may not always reflect how a market participant perceives a counterparty's risk of default. The Company uses both default factors published by Standard & Poor's and factors derived through analysis of market risk, which reflect the application of an industry standard recovery rate. The Company selects a default factor by counterparty at an aggregate master agreement level based on a weighted-average default tenor for that counterparty's deals. The default tenor is used by weighting the fair value and contract tenors for all deals for each counterparty to derive an average value. The default factor used is dependent upon whether the counterparty is in a net asset or a net liability position after applying the master agreement levels. | |||||||||||||||||||
The Company applies the counterparty's default factor to compute credit reserves for counterparties that are in a net asset position. The Company calculates a non-performance risk on its derivative liabilities by using its estimated incremental borrowing rate over the risk-free rate. Credit reserves are recorded as contra accounts to unrealized gain (loss) positions. As of December 31, 2013, the Company was in a net liability position with the majority of counterparties, so the default factors of counterparties did not have a significant impact on reserves for the quarter. The majority of the Company's derivative contracts are with financial institutions and other utilities operating within the Western Electricity Coordinating Council. As of December 31, 2013, PSE has posted a $1.0 million letter of credit as a condition of transacting on a physical energy exchange and clearinghouse in Canada. PSE did not trigger any collateral requirements with any of its counterparties nor were any of PSE's counterparties required to post collateral resulting from credit rating downgrades. | |||||||||||||||||||
The table below presents the fair value of the overall contractual contingent liability positions for the Company's derivative activity at December 31, 2013: | |||||||||||||||||||
Puget Energy and Puget Sound Energy | Fair Value 1 | Posted | Contingent | ||||||||||||||||
Contingent Feature | Liability | Collateral | Collateral | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Credit rating 2 | $ | (12,561 | ) | $ | — | $ | 12,561 | ||||||||||||
Requested credit for adequate assurance | (22,415 | ) | — | — | |||||||||||||||
Forward value of contract 3 | (49 | ) | — | — | |||||||||||||||
Total | $ | (35,025 | ) | $ | — | $ | 12,561 | ||||||||||||
__________ | |||||||||||||||||||
1 | Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. | ||||||||||||||||||
2 | Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. | ||||||||||||||||||
3 | Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||
ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy categorizes the inputs into three levels with the highest priority given to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority given to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: | ||||||||||||||||||||||||||||
Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Level 1 primarily consists of financial instruments such as exchange-traded derivatives and listed equities. Equity securities that are also classified as cash equivalents are considered Level 1 if there are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||
Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded derivatives such as over-the-counter forwards and options. | ||||||||||||||||||||||||||||
Level 3 - Pricing inputs include significant inputs that have little or no observability as of the reporting date. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value. | ||||||||||||||||||||||||||||
Financial assets and liabilities measured at fair value are classified in their entirety in the appropriate fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. The Company primarily determines fair value measurements classified as Level 2 or Level 3 using a combination of the income and market valuation approaches. The process of determining the fair values is the responsibility of the derivative accounting department which reports to the Controller and Principal Accounting Officer. Inputs used to estimate the fair value of forwards, swaps and options include market-price curves; contract terms and prices; credit-risk adjustments; and discount factors. Additionally, for options, the Black-Scholes option valuation model and implied market volatility curves are used. Inputs used to estimate fair value in industry-standard models are categorized as Level 2 inputs because substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. On a daily basis, the Company obtains quoted forward prices for the electric and natural gas markets from an independent external pricing service. For interest rate swaps, the Company obtains monthly mark-to-market values from an independent external pricing service for LIBOR forward rates, which is a significant input. Some of the inputs of the interest rate swap valuations, which are less significant, include the credit standing of the counterparties, assumptions for time value and the impact of the Company's nonperformance risk of its liabilities. The Company classifies cash and cash equivalents, and restricted cash as Level 1 financial instruments due to cash being at stated value, and cash equivalents at quoted market prices. | ||||||||||||||||||||||||||||
The Company considers its electric, natural gas and interest rate swap contracts as Level 2 derivative instruments as such contracts are commonly traded as over-the-counter forwards with indirectly observable price quotes. Management's assessment was based on the trading activity in real-time and forward electric and natural gas markets. Each quarter, the Company confirms the validity of pricing-service quoted prices (e.g., Level 2 in the fair value hierarchy) used to value commodity contracts with the actual prices of commodity contracts entered into during the most recent quarter. However, certain energy derivative instruments with maturity dates falling outside the range of observable price quotes are classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||||||
Assets and Liabilities with Estimated Fair Value | ||||||||||||||||||||||||||||
The following table presents the carrying value for cash, cash equivalents, restricted cash, notes receivable and short-term debt by level, within the fair value hierarchy. The carrying values below are representative of fair values due to the short-term nature of these financial instruments. | ||||||||||||||||||||||||||||
Puget Energy | Carrying / Fair Value | Carrying / Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 44,302 | $ | — | $ | 44,302 | $ | 135,542 | $ | — | $ | 135,542 | ||||||||||||||||
Restricted Cash | 7,171 | — | 7,171 | 3,700 | — | 3,700 | ||||||||||||||||||||||
Notes Receivable and Other | — | 53,449 | 53,449 | — | 63,802 | 63,802 | ||||||||||||||||||||||
Total assets | $ | 51,473 | $ | 53,449 | $ | 104,922 | $ | 139,242 | $ | 63,802 | $ | 203,044 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Total liabilities | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Puget Sound Energy | Carrying / Fair Value | Carrying / Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 44,111 | $ | — | $ | 44,111 | $ | 135,530 | $ | — | $ | 135,530 | ||||||||||||||||
Restricted Cash | 7,171 | — | 7,171 | 3,700 | — | 3,700 | ||||||||||||||||||||||
Notes Receivable and Other | — | 53,449 | 53,449 | — | 63,802 | 63,802 | ||||||||||||||||||||||
Total assets | $ | 51,282 | $ | 53,449 | $ | 104,731 | $ | 139,230 | $ | 63,802 | $ | 203,032 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Short-term debt owed to parent | — | 29,598 | 29,598 | — | 29,598 | 29,598 | ||||||||||||||||||||||
Total liabilities | $ | 162,000 | $ | 29,598 | $ | 191,598 | $ | 181,000 | $ | 29,598 | $ | 210,598 | ||||||||||||||||
The fair value of the junior subordinated and long-term notes were estimated using the discounted cash flow method with U.S. Treasury yields and Company credit spreads as inputs, interpolating to the maturity date of each issue. Carrying values and estimated fair values were as follows: | ||||||||||||||||||||||||||||
Puget Energy | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Junior subordinated notes | 2 | $ | 250,000 | $ | 269,366 | $ | 250,000 | $ | 264,842 | |||||||||||||||||||
Long-term debt (fixed-rate), net of discount | 2 | 4,683,476 | 5,594,314 | 4,662,200 | 6,197,179 | |||||||||||||||||||||||
Long-term debt (variable-rate) | 2 | 299,000 | 299,000 | 434,000 | 434,000 | |||||||||||||||||||||||
Total | $ | 5,232,476 | $ | 6,162,680 | $ | 5,346,200 | $ | 6,896,021 | ||||||||||||||||||||
Puget Sound Energy | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Junior subordinated notes | 2 | $ | 250,000 | $ | 269,366 | $ | 250,000 | $ | 264,842 | |||||||||||||||||||
Long-term debt (fixed-rate), net of discount | 2 | 3,513,258 | 4,038,455 | 3,526,258 | 4,628,509 | |||||||||||||||||||||||
Total | $ | 3,763,258 | $ | 4,307,821 | $ | 3,776,258 | $ | 4,893,351 | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||
The following tables present the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis and the reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: | ||||||||||||||||||||||||||||
Puget Energy | Fair Value | Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Interest rate derivative instruments | $ | 13,223 | $ | — | $ | 13,223 | $ | 21,524 | $ | — | $ | 21,524 | ||||||||||||||||
Total derivative liabilities | $ | 13,223 | $ | — | $ | 13,223 | $ | 21,524 | $ | — | $ | 21,524 | ||||||||||||||||
Puget Energy and | Fair Value | Fair Value | ||||||||||||||||||||||||||
Puget Sound Energy | At December 31, 2013 | At December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Electric derivative instruments | $ | 14,661 | $ | 3,818 | $ | 18,479 | $ | 1,259 | $ | 8,298 | $ | 9,557 | ||||||||||||||||
Natural gas derivative instruments | 5,448 | 2,673 | 8,121 | 6,769 | 5,357 | 12,126 | ||||||||||||||||||||||
Total assets | $ | 20,109 | $ | 6,491 | $ | 26,600 | $ | 8,028 | $ | 13,655 | $ | 21,683 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Electric derivative instruments | $ | 18,073 | $ | 19,239 | $ | 37,312 | $ | 88,971 | $ | 42,221 | $ | 131,192 | ||||||||||||||||
Natural gas derivative instruments | 32,642 | 3,034 | 35,676 | 101,119 | 6,960 | 108,079 | ||||||||||||||||||||||
Total liabilities | $ | 50,715 | $ | 22,273 | $ | 72,988 | $ | 190,090 | $ | 49,181 | $ | 239,271 | ||||||||||||||||
Puget Energy and | Year Ended December 31, | |||||||||||||||||||||||||||
Puget Sound Energy | ||||||||||||||||||||||||||||
Level 3 Roll-Forward Net (Liability) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
(Dollars in Thousands) | Electric | Gas | Total | Electric | Gas | Total | Electric | Gas | Total | |||||||||||||||||||
Balance at beginning of period | $ | (33,924 | ) | $ | (1,602 | ) | $ | (35,526 | ) | $ | (90,311 | ) | $ | (5,041 | ) | $ | (95,352 | ) | $ | (87,436 | ) | $ | (3,859 | ) | $ | (91,295 | ) | |
Changes during period | ||||||||||||||||||||||||||||
Realized and unrealized energy derivatives: | ||||||||||||||||||||||||||||
Included in earnings 1 | (10,491 | ) | — | (10,491 | ) | (21,362 | ) | — | (21,362 | ) | (56,499 | ) | — | (56,499 | ) | |||||||||||||
Included in regulatory assets / liabilities | — | (945 | ) | (945 | ) | — | (1,937 | ) | (1,937 | ) | — | (250 | ) | (250 | ) | |||||||||||||
Settlements 2 | 11,609 | (754 | ) | 10,855 | 59,133 | 969 | 60,102 | 40,900 | (3,418 | ) | 37,482 | |||||||||||||||||
Transferred into Level 3 | (7,799 | ) | — | (7,799 | ) | (55,548 | ) | (297 | ) | (55,845 | ) | (759 | ) | 453 | (306 | ) | ||||||||||||
Transferred out of Level 3 | 25,184 | 2,940 | 28,124 | 74,164 | 4,704 | 78,868 | 13,483 | 2,033 | 15,516 | |||||||||||||||||||
Balance at end of period | $ | (15,421 | ) | $ | (361 | ) | $ | (15,782 | ) | $ | (33,924 | ) | $ | (1,602 | ) | $ | (35,526 | ) | $ | (90,311 | ) | $ | (5,041 | ) | $ | (95,352 | ) | |
_______________ | ||||||||||||||||||||||||||||
1 | Income Statement location: Unrealized (gain) loss on derivative instruments, net. Includes unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $(13.4) million, $(15.2) million, and $(55.2) million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||
2 | The Company had no purchases, sales or issuances during the reported periods. | |||||||||||||||||||||||||||
Realized gains and losses on energy derivatives for Level 3 recurring items are included in energy costs in the Company's consolidated statements of income under purchased electricity, electric generation fuel or purchased natural gas when settled. Unrealized gains and losses on energy derivatives for Level 3 recurring items are included in net unrealized (gain) loss on derivative instruments in the Company's consolidated statements of income. | ||||||||||||||||||||||||||||
In order to determine which assets and liabilities are classified as Level 3, the Company receives market data from its independent external pricing service defining the tenor of observable market quotes. To the extent any of the Company's commodity contracts extend beyond what is considered observable as defined by its independent pricing service, the contracts are classified as Level 3. The actual tenor of what the independent pricing service defines as observable is subject to change depending on market conditions. Therefore, as the market changes, the same contract may be designated Level 3 one month and Level 2 the next, and vice versa. The changes of fair value classification into or out of Level 3 are recognized each month, and reported in the Level 3 Roll-forward table above. The Company did not have any transfers between Level 2 and Level 1 during the years ended December 31, 2013 and 2012. The Company does periodically transact at locations, or market price points, that are illiquid or for which no prices are available from the independent pricing service. In such circumstances the Company uses a more liquid price point and performs a 15-month regression against the illiquid locations to serve as a proxy for market prices. Such transactions are classified as Level 3. The Company does not use internally developed models to make adjustments to significant unobservable pricing inputs. | ||||||||||||||||||||||||||||
The only significant unobservable input into the fair value measurement of the Company's Level 3 assets and liabilities is the forward price for electric and natural gas contracts. Below are the forward price ranges for the Company's purchased commodity contracts, as of December 31, 2013: | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Fair Value | Range | |||||||||||||||||||||||||||
Derivative Instrument | Assets 1 | Liabilities 1 | Valuation Technique | Unobservable Input | Low | High | Weighted Average | |||||||||||||||||||||
Electric | $3,818 | $19,239 | Discounted cash flow | Power Prices | $17.06 per MWh | $47.09 per MWh | $38.74 per MWh | |||||||||||||||||||||
Natural gas | $2,673 | $3,034 | Discounted cash flow | Natural Gas Prices | $3.62 per MMBtu | $4.19 per MMBtu | $3.78 per MMBtu | |||||||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. | |||||||||||||||||||||||||||
The significant unobservable inputs listed above would have a direct impact on the fair values of the above instruments if they were adjusted. Consequently significant increases or decreases in the forward prices of electricity or natural gas in isolation would result in a significantly higher or lower fair value for Level 3 assets and liabilities. Generally, interrelationships exist between market prices of natural gas and power. As such, an increase in natural gas pricing would potentially have a similar impact on forward power markets. At December 31, 2013, a hypothetical 10% increase or decrease in market prices of natural gas and electricity would change the fair value of the Company's derivative portfolio, classified as Level 3 within the fair value hierarchy, by $7.0 million. | ||||||||||||||||||||||||||||
Long-Lived Assets Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||||||
At the time of merger, Puget Energy recorded the fair value of its intangible assets in accordance with ASC 360, “Property, Plant, and Equipment,” (ASC 360). The fair value assigned to the power contracts was determined using an income approach comparing the contract rate to the market rate for power over the remaining period of the contracts incorporating non-performance risk. Management also incorporated certain assumptions related to quantities and market presentation that it believes market participants would make in the valuation. The fair value of the power contracts is amortized as the contracts settle. | ||||||||||||||||||||||||||||
ASC 360 requires long-lived assets to be tested for impairment on an annual basis, and upon the occurrence of any events or circumstances that would be more likely than not to reduce the fair value of the long-lived assets below their carrying value. One such triggering event is a significant decrease in the forward market prices of power. | ||||||||||||||||||||||||||||
At June 30, 2013, Puget Energy completed a valuation and impairment test of its purchased power contracts classified as intangible assets. The valuation indicated a fair value of $484.1 million with an impairment to the Priest Rapids Reasonable Portion intangible asset contract. As of June 30, 2013, the carrying value for this intangible asset contract was $47.1 million and its fair value on a discounted basis was determined to be an asset of $33.6 million, thereby requiring a write-down of $13.5 million to the intangible asset with a corresponding reduction in the regulatory liability. | ||||||||||||||||||||||||||||
The valuation was measured using the income approach. Significant inputs included forward electricity prices and power contract pricing which provided future net cash flow estimates which are classified as Level 3 within the fair value hierarchy. A less significant input is the discount rate reflective of PSE's cost of capital used in the valuation. | ||||||||||||||||||||||||||||
Below are significant unobservable inputs used in estimating the long-term power purchase contracts' fair value of $484.1 million on June 30, 2013: | ||||||||||||||||||||||||||||
Valuation Technique | Unobservable Input | Low | High | Weighted Average | ||||||||||||||||||||||||
Discounted cash flow | Power prices | $30.85 per MWh | $65.35 per MWh | $48.47 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $389 per yr | $6,845 per yr | $4,110 per yr | ||||||||||||||||||||||||
During 2012, Puget Energy completed valuation and impairment testing of its purchased power contracts classified as intangible assets. At March 31, 2012, the Wells Hydro intangible asset contract had a carrying value of $113.3 million and a fair value on a discounted basis of $96.7 million, thereby requiring a write-down of $16.6 million of this intangible asset and a corresponding reduction in the regulatory liability. Additionally, at December 31, 2012, the Rock Island intangible asset contract had a carrying value of $7.6 million and its fair value on a discounted basis was determined to be a liability of $10.2 million, thereby requiring a complete write-off of this intangible asset and a corresponding reduction in the regulatory liability. | ||||||||||||||||||||||||||||
Below are significant unobservable inputs used in estimating the long-term power purchase contracts' fair value on March 31, 2012 and December 31, 2012: | ||||||||||||||||||||||||||||
Valuation Technique | Unobservable Input | Low | High | Weighted Average | ||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||
Discounted cash flow | Power prices | $10.36 per MWh | $49.78 per MWh | $34.98 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $3,185 per qtr | $5,030 per qtr | $4,663 per qtr | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Discounted cash flow | Power prices | $16.94 per MWh | $70.89 per MWh | $49.40 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $1,777 per qtr | $7,133 per qtr | $6,603 per qtr |
Employee_Investment_Plans
Employee Investment Plans | 12 Months Ended | |
Dec. 31, 2013 | ||
Employee Investment Plans [Abstract] | ' | |
Employee Investment Plans | ' | |
Employee Investment Plans | ||
The Company's existing plan is a qualified employee Investment Plan 401(k) plan, under which employee salary deferrals and after-tax contributions are used to purchase several different investment fund options. For employees under the Cash Balance retirement plan formula, PSE will match 100% of an employee's contribution up to 6% of plan compensation, and will make an additional year-end contribution equal to 1% of base pay. For employees grandfathered under the Final Average Earning retirement plan formula, PSE will match 55% of an employee’s contribution up to 6% of plan compensation. PSE’s contributions to the employee Investment Plan were $14.6 million, $14.5 million and $13.5 million for the years 2013, 2012, and 2011, respectively. The employee Investment Plan eligibility requirements are set forth in the plan documents. | ||
Beginning January 1, 2014 employees hired as of this date will have access to the 401(k) plan and will choose how they want to accumulate funds for retirement, with two contribution sources from PSE: | ||
• | 401(k) Company Matching: new non-represented and United Association of Plumbers and Pipefitters (UA) employees will receive company match each paycheck based on a new schedule-100% match on the first 3% of pay contributed and 50% match on the next 3% of pay contributed. An employee who contributes 6% of pay will receive 4.5% of pay in company match. Company matching will be immediately vested. | |
• | Company Contribution: 401(k) or pension plan. New non-represented employees will receive an annual company contribution of 4% of eligible pay, placed either in the Investment Plan 401(k) plan or an account in PSE’s Retirement Plan (Cash Balance pension plan). New employees will make a one-time election within 30 days of hire and direct that PSE put the 4% contribution either into the 401(k) plan or into an account in the Cash Balance pension plan. The Company’s 4% contribution will vest after three years of employment. |
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Retirement Benefits | ' | |||||||||||||||||||||||||||
Retirement Benefits | ||||||||||||||||||||||||||||
PSE has a defined benefit pension plan covering substantially all PSE employees. Pension benefits earned are a function of age, salary, years of service and, in the case of employees in the cash balance formula plan, the applicable annual interest crediting rates. Beginning January 1, 2014, all new UA employees and those new non-represented employees who elect to accumulate the Company contribution in the Cash Balance pension, will receive annual pay credits of 4% each year. They will also receive interest credits like other participants in the Cash Balance pension, which are at least 1% per quarter. When a newly-hired employee with a vested Cash Balance benefit leaves PSE, he or she will have annuity and lump sum options for distribution, with annuities calculated according to the Pension Protection Act. Those who select the lump sum option will receive their current cash balance amount. | ||||||||||||||||||||||||||||
In addition to providing pension benefits, PSE provides group health care and life insurance benefits for certain retired employees. PSE also maintains a non-qualified Supplemental Executive Retirement Plan (SERP) for its key senior management employees. These benefits are provided principally through an insurance company. The insurance premiums, paid primarily by retirees, are based on the benefits provided during the year. | ||||||||||||||||||||||||||||
The 2009 merger of Puget Energy with Puget Holdings triggered a new basis of accounting for PSE’s retirement benefit plans in the Puget Energy consolidated financial statements. Such purchase accounting adjustments associated with the remeasurement of the retirement plans are recorded at Puget Energy. | ||||||||||||||||||||||||||||
The following tables summarize the Company’s change in benefit obligation, change in plan assets and amounts recognized in the Statements of Financial Position for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 616,290 | $ | 565,997 | $ | 51,795 | $ | 48,370 | $ | 17,672 | $ | 16,436 | ||||||||||||||||
Service cost | 19,285 | 16,926 | 1,498 | 1,073 | 134 | 139 | ||||||||||||||||||||||
Interest cost | 24,754 | 25,986 | 2,045 | 2,152 | 664 | 751 | ||||||||||||||||||||||
Amendment | — | — | 478 | (122 | ) | — | — | |||||||||||||||||||||
Actuarial loss/(gain) | (48,559 | ) | 40,914 | (1,687 | ) | 5,483 | (2,240 | ) | 1,199 | |||||||||||||||||||
Benefits paid | (38,453 | ) | (33,533 | ) | (6,850 | ) | (5,161 | ) | (1,536 | ) | (1,523 | ) | ||||||||||||||||
Medicare part D subsidy received | — | — | — | — | 245 | 670 | ||||||||||||||||||||||
Benefit obligation at end of period | $ | 573,317 | $ | 616,290 | $ | 47,279 | $ | 51,795 | $ | 14,939 | $ | 17,672 | ||||||||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 531,183 | $ | 479,786 | $ | — | $ | — | $ | 7,541 | $ | 7,206 | ||||||||||||||||
Actual return on plan assets | 102,591 | 62,130 | — | — | 1,861 | 1,100 | ||||||||||||||||||||||
Employer contribution | 20,400 | 22,800 | 6,850 | 5,161 | 908 | 758 | ||||||||||||||||||||||
Benefits paid | (38,453 | ) | (33,533 | ) | (6,850 | ) | (5,161 | ) | (1,536 | ) | (1,523 | ) | ||||||||||||||||
Fair value of plan assets at end of period | $ | 615,721 | $ | 531,183 | $ | — | $ | — | $ | 8,774 | $ | 7,541 | ||||||||||||||||
Funded status at end of period | $ | 42,404 | $ | (85,107 | ) | $ | (47,279 | ) | $ | (51,795 | ) | $ | (6,165 | ) | $ | (10,131 | ) | |||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Statement of Financial Position consist of: | ||||||||||||||||||||||||||||
Noncurrent assets | $ | 42,404 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Current liabilities | — | — | (3,981 | ) | (5,040 | ) | (421 | ) | (460 | ) | ||||||||||||||||||
Noncurrent liabilities | — | (85,107 | ) | (43,298 | ) | (46,755 | ) | (5,744 | ) | (9,671 | ) | |||||||||||||||||
Net assets / (liabilities) | $ | 42,404 | $ | (85,107 | ) | $ | (47,279 | ) | $ | (51,795 | ) | $ | (6,165 | ) | $ | (10,131 | ) | |||||||||||
The following tables summarize Puget Energy and Puget Sound Energy's pension benefit amounts recognized in Accumulated Other Comprehensive income for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income consist of: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (65,943 | ) | $ | 49,001 | $ | 9,670 | $ | 12,818 | $ | (2,972 | ) | $ | 763 | ||||||||||||||
Prior service cost / (credit) | (15,762 | ) | (17,741 | ) | 373 | (122 | ) | — | — | |||||||||||||||||||
Total | $ | (81,705 | ) | $ | 31,260 | $ | 10,043 | $ | 12,696 | $ | (2,972 | ) | $ | 763 | ||||||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income consist of: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | 138,324 | $ | 269,401 | $ | 14,050 | $ | 17,928 | $ | (5,556 | ) | $ | (2,175 | ) | ||||||||||||||
Prior service cost/(credit) | (12,525 | ) | (14,098 | ) | 383 | (110 | ) | 6 | 36 | |||||||||||||||||||
Total | $ | 125,799 | $ | 255,303 | $ | 14,433 | $ | 17,818 | $ | (5,550 | ) | $ | (2,139 | ) | ||||||||||||||
The following tables summarize Puget Energy's and Puget Sound Energy's net periodic benefit cost for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 19,285 | $ | 16,926 | $ | 15,822 | $ | 1,498 | $ | 1,073 | $ | 1,241 | $ | 134 | $ | 139 | $ | 113 | ||||||||||
Interest cost | 24,754 | 25,986 | 26,263 | 2,045 | 2,152 | 2,192 | 664 | 751 | 806 | |||||||||||||||||||
Expected return on plan assets | (39,095 | ) | (36,203 | ) | (35,344 | ) | — | — | — | (436 | ) | (435 | ) | (502 | ) | |||||||||||||
Amortization of prior service cost/(credit) | (1,980 | ) | (1,980 | ) | (1,980 | ) | (17 | ) | — | — | — | — | — | |||||||||||||||
Amortization of net loss | 2,889 | 768 | — | 1,461 | 702 | 360 | 69 | 53 | (46 | ) | ||||||||||||||||||
Net periodic benefit cost | $ | 5,853 | $ | 5,497 | $ | 4,761 | $ | 4,987 | $ | 3,927 | $ | 3,793 | $ | 431 | $ | 508 | $ | 371 | ||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 19,285 | $ | 16,926 | $ | 15,822 | $ | 1,498 | $ | 1,073 | $ | 1,241 | $ | 134 | $ | 139 | $ | 113 | ||||||||||
Interest cost | 24,753 | 25,986 | 26,263 | 2,045 | 2,152 | 2,192 | 664 | 751 | 806 | |||||||||||||||||||
Expected return on plan assets | (40,685 | ) | (41,533 | ) | (44,128 | ) | — | — | — | (436 | ) | (435 | ) | (502 | ) | |||||||||||||
Amortization of prior service cost/(credit) | (1,573 | ) | (1,573 | ) | (1,573 | ) | (16 | ) | 293 | 563 | 30 | 35 | 63 | |||||||||||||||
Amortization of net loss/(gain) | 20,612 | 15,015 | 10,250 | 2,191 | 1,432 | 1,194 | (284 | ) | (245 | ) | (481 | ) | ||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | — | 50 | 50 | |||||||||||||||||||
Net periodic benefit cost | $ | 22,392 | $ | 14,821 | $ | 6,634 | $ | 5,718 | $ | 4,950 | $ | 5,190 | $ | 108 | $ | 295 | $ | 49 | ||||||||||
The following tables summarize Puget Energy's and Puget Sound Energy's benefit obligations recognized in other comprehensive income for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (112,055 | ) | $ | 14,988 | $ | (1,687 | ) | $ | 5,483 | $ | (3,665 | ) | $ | 534 | |||||||||||||
Amortization of net loss/(gain) | (2,889 | ) | (768 | ) | (1,461 | ) | (703 | ) | (70 | ) | (53 | ) | ||||||||||||||||
Prior service credit | — | — | 478 | (122 | ) | — | — | |||||||||||||||||||||
Amortization of prior service credit | 1,980 | 1,980 | 17 | — | — | — | ||||||||||||||||||||||
Total change in other comprehensive income for year | $ | (112,964 | ) | $ | 16,200 | $ | (2,653 | ) | $ | 4,658 | $ | (3,735 | ) | $ | 481 | |||||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefit | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (110,465 | ) | $ | 20,318 | $ | (1,687 | ) | $ | 5,483 | $ | (3,665 | ) | $ | 534 | |||||||||||||
Amortization of net (loss)/gain | (20,612 | ) | (15,015 | ) | (2,191 | ) | (1,433 | ) | 284 | 245 | ||||||||||||||||||
Prior service cost/(credit) | — | — | 477 | (122 | ) | — | — | |||||||||||||||||||||
Amortization of prior service cost/(credit) | 1,573 | 1,573 | 16 | (293 | ) | (30 | ) | (35 | ) | |||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | (50 | ) | |||||||||||||||||||||
Total change in other comprehensive income for year | $ | (129,504 | ) | $ | 6,876 | $ | (3,385 | ) | $ | 3,635 | $ | (3,411 | ) | $ | 694 | |||||||||||||
The estimated prior service cost/(credit) for the pension plans that will be amortized from accumulated OCI into net periodic benefit cost in 2014 by Puget Energy is $2.0 million. The estimated net (loss)/gain for the SERP that will be amortized from accumulated OCI into net periodic benefit cost in 2014 is $(0.9) million. The estimated prior service cost/(credit) for the SERP that will be amortized from accumulated OCI into net periodic benefit cost in 2014 is immaterial. The estimated net (loss)/gain, prior service cost/(credit) and transition/(obligation) asset for the other postretirement plans that will be amortized from accumulated OCI into net periodic benefit cost in 2014 are immaterial. | ||||||||||||||||||||||||||||
The estimated net (loss)/gain and prior service cost/(credit) for the pension plans that will be amortized from accumulated OCI into net periodic benefit cost in 2014 by Puget Sound Energy are $(13.0) million and $1.6 million, respectively. The estimated net loss/(gain) and prior service cost/(credit) for the SERP that will be amortized from accumulated OCI into net periodic benefit cost in 2014 are $(1.5) million. The estimated prior service cost/(credit) for the SERP that will be amortized from accumulated OCI into net periodic benefit cost in 2014 is immaterial. The estimated net (loss)/gain for the other postretirement plan that will be amortized from accumulated OCI into net periodic benefit cost in 2014 is $0.6 million and prior service cost/(credit) and transition (obligation)/asset for the other postretirement plans are immaterial. | ||||||||||||||||||||||||||||
The aggregate expected contributions by the Company to fund the retirement plan, SERP and the other postretirement plans for the year ending December 31, 2014 are expected to be at least $12.0 million, $4.0 million and $0.4 million, respectively. | ||||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||
In accounting for pension and other benefit obligations and costs under the plans, the following weighted-average actuarial assumptions were used by the Company: | ||||||||||||||||||||||||||||
Qualified | SERP | Other | ||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
Benefit Obligation Assumptions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate 1 | 5.1 | % | 4.15 | % | 4.75 | % | 5.1 | % | 4.15 | % | 4.75 | % | 5.1 | % | 4.15 | % | 4.75 | % | ||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||
Medical trend rate | — | — | — | — | — | — | 6.8 | % | 7.5 | % | 7.5 | % | ||||||||||||||||
Benefit Cost Assumptions | ||||||||||||||||||||||||||||
Discount rate | 4.15 | % | 4.75 | % | 5.15 | % | 4.15 | % | 4.75 | % | 5.15 | % | 4.15 | % | 4.75 | % | 5.15 | % | ||||||||||
Rate of plan assets | 7.75 | % | 7.75 | % | 7.75 | % | — | — | — | 6.9 | % | 7.5 | % | 7.8 | % | |||||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||
Medical trend rate | — | — | — | — | — | — | 8.2 | % | 7.5 | % | 8 | % | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | The Company calculates the present value of the pension liability using a discount rate of 5.10% which represents the single-rate equivalent of the AA rated corporate bond yield curve. | |||||||||||||||||||||||||||
The assumed medical inflation rate used to determine benefit obligations is 8.20% in 2014 grading down to 4.30% in 2015. A 1.0% change in the assumed medical inflation rate would have the following effects: | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||||||||||||||
Effect on post-retirement benefit obligation | $ | 66 | $ | (66 | ) | $ | 92 | $ | (92 | ) | ||||||||||||||||||
Effect on service and interest cost components | 3 | (3 | ) | 4 | (4 | ) | ||||||||||||||||||||||
The Company has selected the expected return on plan assets based on a historical analysis of rates of return and the Company’s investment mix, market conditions, inflation and other factors. The expected rate of return is reviewed annually based on these factors. The Company’s accounting policy for calculating the market-related value of assets for the Company’s retirement plan is as follows. PSE market-related value of assets is based on a five-year smoothing of asset gains/losses measured from the expected return on market-related assets. This is a calculated value that recognizes changes in fair value in a systematic and rational manner over five years. The same manner of calculating market-related value is used for all classes of assets, and is applied consistently from year to year. | ||||||||||||||||||||||||||||
Puget Energy’s pension and other postretirement benefits income or costs depend on several factors and assumptions, including plan design, timing and amount of cash contributions to the plan, earnings on plan assets, discount rate, expected long-term rate of return, mortality and health care costs trends. Changes in any of these factors or assumptions will affect the amount of income or expense that Puget Energy records in its financial statements in future years and its projected benefit obligation. Puget Energy has selected an expected return on plan assets based on a historical analysis of rates of return and Puget Energy’s investment mix, market conditions, inflation and other factors. As required by merger accounting rules, market-related value was reset to market value effective with the merger. | ||||||||||||||||||||||||||||
The discount rates were determined by using market interest rate data and the weighted-average discount rate from Citigroup Pension Liability Index Curve. The Company also takes into account in determining the discount rate the expected changes in market interest rates and anticipated changes in the duration of the plan liabilities. | ||||||||||||||||||||||||||||
Plan Benefits | ||||||||||||||||||||||||||||
The expected total benefits to be paid under the next five years and the aggregate total to be paid for the five years thereafter are as follows: | ||||||||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | ||||||||||||||||||||||
Qualified Pension total benefits | $ | 40,000 | $ | 40,200 | $ | 40,200 | $ | 41,100 | $ | 42,300 | $ | 226,900 | ||||||||||||||||
SERP Pension total benefits | 3,981 | 1,985 | 2,541 | 1,900 | 5,177 | 18,392 | ||||||||||||||||||||||
Other Benefits total with Medicare Part D subsidy | 1,222 | 1,193 | 1,242 | 1,197 | 1,149 | 6,276 | ||||||||||||||||||||||
Other Benefits total without Medicare Part D subsidy | 1,604 | 1,591 | 1,555 | 1,519 | 1,479 | 6,709 | ||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||
Plan contributions and the actuarial present value of accumulated plan benefits are prepared based on certain assumptions pertaining to interest rates, inflation rates and employee demographics, all of which are subject to change. Due to uncertainties inherent in the estimations and assumptions process, changes in these estimates and assumptions in the near term may be material to the financial statements. | ||||||||||||||||||||||||||||
The Company has a Retirement Plan Committee that establishes investment policies, objectives and strategies designed to balance expected return with a prudent level of risk. All changes to the investment policies are reviewed and approved by the Retirement Plan Committee prior to being implemented. | ||||||||||||||||||||||||||||
The Retirement Plan Committee invests trust assets with investment managers who have historically achieved above-median long-term investment performance within the risk and asset allocation limits that have been established. Interim evaluations are routinely performed with the assistance of an outside investment consultant. To obtain the desired return needed to fund the pension benefit plans, the Retirement Plan Committee has established investment allocation percentages by asset classes as follows: | ||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||
Asset Class | Minimum | Target | Maximum | |||||||||||||||||||||||||
Domestic large cap equity | 25% | 31% | 40% | |||||||||||||||||||||||||
Domestic small cap equity | 0% | 9% | 15% | |||||||||||||||||||||||||
Non-U.S. equity | 10% | 25% | 30% | |||||||||||||||||||||||||
Fixed income | 15% | 25% | 30% | |||||||||||||||||||||||||
Real estate | 0% | 0% | 10% | |||||||||||||||||||||||||
Absolute return | 5% | 10% | 15% | |||||||||||||||||||||||||
Cash | 0% | 0% | 5% | |||||||||||||||||||||||||
Plan Fair Value Measurements | ||||||||||||||||||||||||||||
ASC 715, “Compensation – Retirement Benefits” (ASC 715) directs companies to provide additional disclosures about plan assets of a defined benefit pension or other postretirement plan. The objectives of the disclosures are to disclose the following: (1) how investment allocation decisions are made, including the factors that are pertinent to an understanding of investment policies and strategies; (2) major categories of plan assets; (3) inputs and valuation techniques used to measure the fair value of plan assets; (4) effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the period; and (5) significant concentrations of risk within plan assets. | ||||||||||||||||||||||||||||
ASC 820 allows the reporting entity, as a practical expedient, to measure the fair value of investments that do not have readily determinable fair values on the basis of the net asset value per share of the investment if the net asset value of the investment is calculated in a matter consistent with ASC 946, “Financial Services – Investment Companies.” The standard requires disclosures about the nature and risk of the investments and whether the investments are probable of being sold at amounts different from the net asset value per share. | ||||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the qualified pension plan as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Recurring Fair Value Measures | Recurring Fair Value Measures | |||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||
Non-US equity 1 | $ | 76,188 | $ | 78,816 | $ | — | $ | 155,004 | $ | 56,717 | $ | 49,304 | $ | — | $ | 106,021 | ||||||||||||
Domestic large cap equity 2 | 157,874 | 35,851 | — | 193,725 | 136,994 | 28,890 | — | 165,884 | ||||||||||||||||||||
Domestic small cap equity 3 | 62,867 | — | — | 62,867 | 51,264 | — | — | 51,264 | ||||||||||||||||||||
Total equities | 296,929 | 114,667 | — | 411,596 | 244,975 | 78,194 | — | 323,169 | ||||||||||||||||||||
Tactical asset allocation 4 | — | — | — | — | — | 26,425 | — | 26,425 | ||||||||||||||||||||
Fixed income securities 5 | 135,007 | — | — | 135,007 | 119,939 | — | — | 119,939 | ||||||||||||||||||||
Absolute return 6 | — | — | 62,278 | 62,278 | — | — | 55,615 | 55,615 | ||||||||||||||||||||
Cash and cash equivalents 7 | — | 7,054 | — | 7,054 | — | 6,019 | — | 6,019 | ||||||||||||||||||||
Subtotal | $ | 431,936 | $ | 121,721 | $ | 62,278 | $ | 615,935 | $ | 364,914 | $ | 110,638 | $ | 55,615 | $ | 531,167 | ||||||||||||
Net (payable) receivable | (417 | ) | (173 | ) | ||||||||||||||||||||||||
Accrued income | 203 | 189 | ||||||||||||||||||||||||||
Total assets | $ | 615,721 | $ | 531,183 | ||||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
1 | Non – US Equity investments are comprised of a (1) mutual fund; and a (2) commingled fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||
2 | Domestic large cap equity investments are comprised of (1) common stock, and a (2) commingled fund. Investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||
3 | Domestic small cap equity investments are comprised of (1) common stock and a (2) mutual fund. The investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||
4 | The tactical asset allocation investment is comprised of a commingled fund, which is valued at the net asset value per share multiplied by the number of shares held as of the measurement date. | |||||||||||||||||||||||||||
5 | Fixed income securities consist of a mutual fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||
6 | As of December 31, 2013 absolute return investments consist of two partnerships. The partnerships are valued using the financial reports as of December 31, 2013. These investments are a Level 3 under ASC 820 because the significant valuation inputs are primarily internal to the partnerships with little third party involvement. | |||||||||||||||||||||||||||
7 | The investment consists of a money market fund, which is valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. | |||||||||||||||||||||||||||
Level 3 Roll-Forward | ||||||||||||||||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of the plan’s Level 3 assets: | ||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Partnership | Mutual Funds | Total | Partnership | Mutual Funds | Total | ||||||||||||||||||||||
Balance at beginning of year | $ | 55,614 | $ | — | $ | 55,614 | $ | 45,319 | $ | — | $ | 45,319 | ||||||||||||||||
Additional investments | — | — | — | 7,021 | — | 7,021 | ||||||||||||||||||||||
Distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Realized losses on distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Unrealized gains relating to instruments still held at the reporting date | 6,664 | — | 6,664 | 3,274 | — | 3,274 | ||||||||||||||||||||||
Transferred out of level 3 1 | — | — | — | — | — | — | ||||||||||||||||||||||
Balance at end of year | $ | 62,278 | $ | — | $ | 62,278 | $ | 55,614 | $ | — | $ | 55,614 | ||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
1 | The plan had no transfers between level 2 and level 1 during the years ended December 31, 2013 or 2012. | |||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Other Benefits plan assets which consist of insurance benefits for retired employees, at fair value: | ||||||||||||||||||||||||||||
Recurring Fair Value Measures | Recurring Fair Value Measures | |||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Mutual fund 1 | $ | 8,703 | $ | — | $ | 8,703 | $ | 7,472 | $ | — | $ | 7,472 | ||||||||||||||||
Cash equivalents 2 | — | 71 | 71 | — | 69 | 69 | ||||||||||||||||||||||
Total assets | $ | 8,703 | $ | 71 | $ | 8,774 | $ | 7,472 | $ | 69 | $ | 7,541 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | This is a publicly traded balanced mutual fund. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. The fair value is determined by taking the number of shares owned by the plan, and multiplying by the market price as of December 31, 2013. | |||||||||||||||||||||||||||
2 | This is a money market fund. The money market fund investments are valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Income Taxes | ' | |||||||||
Income Taxes | ||||||||||
The details of income tax (benefit) expense are as follows: | ||||||||||
Puget Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Charged to operating expenses: | ||||||||||
Current: | ||||||||||
Federal | $ | — | $ | 4,268 | $ | 785 | ||||
State | — | — | (50 | ) | ||||||
Deferred: | ||||||||||
Federal | 122,559 | 100,701 | 32,706 | |||||||
State | (151 | ) | (244 | ) | 319 | |||||
Total income tax expense | $ | 122,408 | $ | 104,725 | $ | 33,760 | ||||
Puget Sound Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Charged to operating expenses: | ||||||||||
Current: | ||||||||||
Federal | $ | — | $ | 4,268 | $ | 653 | ||||
State | — | — | — | |||||||
Deferred: | ||||||||||
Federal | 160,886 | 145,040 | 76,369 | |||||||
State | — | — | 1,095 | |||||||
Total income tax expense | $ | 160,886 | $ | 149,308 | $ | 78,117 | ||||
The following reconciliation compares pre-tax book income at the federal statutory rate of 35.0% to the actual income tax expense in the Statements of Income: | ||||||||||
Puget Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Income taxes at the statutory rate | $ | 142,847 | $ | 132,491 | $ | 54,968 | ||||
Increase (decrease): | ||||||||||
Production tax credit | (22,414 | ) | (22,188 | ) | (23,310 | ) | ||||
AFUDC excluded from taxable income | (9,406 | ) | (16,543 | ) | (22,861 | ) | ||||
Capitalized interest | 7,294 | 9,757 | 17,592 | |||||||
Utility plant differences | 9,527 | 8,674 | 5,849 | |||||||
Treasury grant amortization | (7,651 | ) | (1,007 | ) | — | |||||
Tenaska gas contract | 1 | (4,687 | ) | 7,094 | ||||||
Other - net | 2,210 | (1,772 | ) | (5,572 | ) | |||||
Total income tax expense | $ | 122,408 | $ | 104,725 | $ | 33,760 | ||||
Effective tax rate | 30 | % | 27.7 | % | 21.5 | % | ||||
Puget Sound Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Income taxes at the statutory rate | $ | 180,955 | $ | 176,917 | $ | 98,783 | ||||
Increase (decrease): | ||||||||||
Production tax credit | (22,414 | ) | (22,188 | ) | (23,310 | ) | ||||
AFUDC excluded from taxable income | (9,406 | ) | (16,543 | ) | (22,861 | ) | ||||
Capitalized interest | 7,294 | 9,757 | 17,592 | |||||||
Utility plant differences | 9,527 | 8,674 | 5,849 | |||||||
Treasury grant amortization | (7,651 | ) | (1,007 | ) | — | |||||
Tenaska gas contract | 1 | (4,687 | ) | 7,094 | ||||||
Other - net | 2,580 | (1,615 | ) | (5,030 | ) | |||||
Total income tax expense | $ | 160,886 | $ | 149,308 | $ | 78,117 | ||||
Effective tax rate | 31.1 | % | 29.5 | % | 27.7 | % | ||||
The Company’s deferred tax liability at December 31, 2013 and 2012 is composed of amounts related to the following types of temporary differences: | ||||||||||
Puget Energy | At December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Utility plant and equipment | $ | 1,625,107 | $ | 1,409,216 | ||||||
Regulatory asset for income taxes | 146,867 | 119,844 | ||||||||
Fair value of debt instruments | 76,991 | 86,831 | ||||||||
Other deferred tax liabilities | 202,189 | 151,820 | ||||||||
Subtotal deferred tax liabilities | 2,051,154 | 1,767,711 | ||||||||
Net operating loss carryforward | (374,606 | ) | (298,440 | ) | ||||||
Production tax credit carryforward | (135,531 | ) | (113,117 | ) | ||||||
Regulatory liability on production tax credit | (71,880 | ) | (59,811 | ) | ||||||
Fair value of derivative instruments | (7,166 | ) | (44,835 | ) | ||||||
Other deferred tax assets | (60,970 | ) | (43,309 | ) | ||||||
Subtotal deferred tax assets | (650,153 | ) | (559,512 | ) | ||||||
Total | $ | 1,401,001 | $ | 1,208,199 | ||||||
Puget Sound Energy | At December 31, | |||||||||
(Dollars In Thousands) | 2013 | 2012 | ||||||||
Utility plant and equipment | $ | 1,625,107 | $ | 1,409,216 | ||||||
Regulatory asset for income taxes | 146,350 | 119,279 | ||||||||
Other deferred tax liabilities | 131,977 | 132,304 | ||||||||
Subtotal deferred tax liabilities | 1,903,434 | 1,660,799 | ||||||||
Net operating loss carryforward | (173,068 | ) | (134,513 | ) | ||||||
Production tax credit carryforward | (135,531 | ) | (113,117 | ) | ||||||
Regulatory liability on production tax credit | (71,880 | ) | (59,811 | ) | ||||||
Fair value of derivative instruments | (9,988 | ) | (46,139 | ) | ||||||
Other deferred tax assets | (69,175 | ) | (100,632 | ) | ||||||
Subtotal deferred tax assets | (459,642 | ) | (454,212 | ) | ||||||
Total | $ | 1,443,792 | $ | 1,206,587 | ||||||
The above amounts have been classified in the Consolidated Balance Sheets as follows: | ||||||||||
Puget Energy | At December 31 | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Current deferred taxes | $ | (86,004 | ) | $ | (53,437 | ) | ||||
Non-current deferred taxes | 1,487,005 | 1,261,636 | ||||||||
Total | $ | 1,401,001 | $ | 1,208,199 | ||||||
Puget Sound Energy | At December 31 | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Current deferred taxes | $ | (141,058 | ) | $ | (68,015 | ) | ||||
Non-current deferred taxes | 1,584,850 | 1,274,602 | ||||||||
Total | $ | 1,443,792 | $ | 1,206,587 | ||||||
The Company calculates its deferred tax assets and liabilities under ASC 740, “Income Taxes” (ASC 740). ASC 740 requires recording deferred tax balances, at the currently enacted tax rate, on assets and liabilities that are reported differently for income tax purposes than for financial reporting purposes. The utilization of deferred tax assets requires sufficient taxable income in future years. ASC 740 requires a valuation allowance on deferred tax assets when it is more likely than not that the deferred tax assets will not be realized. The Company’s PTC carryforwards expire from 2026 through 2033. The Company’s net operating loss carryforwards expire from 2029 through 2033. | ||||||||||
For ratemaking purposes, deferred taxes are not provided for certain temporary differences. PSE has established a regulatory asset for income taxes recoverable through future rates related to those temporary differences for which no deferred taxes have been provided, based on prior and expected future ratemaking treatment. | ||||||||||
The Company accounts for uncertain tax position under ASC 740, which clarifies the accounting for uncertainty in income taxes recognized in the financial statements. ASC 740 requires the use of a two-step approach for recognizing and measuring tax positions taken or expected to be taken in a tax return. First, a tax position should only be recognized when it is more likely than not, based on technical merits, that the position will be sustained upon challenge by the taxing authorities and taken by management to the court of last resort. Second, a tax position that meets the recognition threshold should be measured at the largest amount that has a greater than 50.0% likelihood of being sustained. | ||||||||||
As of December 31, 2013 and 2012, the Company had no material unrecognized tax benefits. As a result, no interest or penalties were accrued for unrecognized tax benefits during the year. | ||||||||||
For ASC 740 purposes, the Company has open tax years from 2010 through 2013. The Company classifies interest as interest expense and penalties as other expense in the financial statements. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2013 | |
Litigation Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
Residential Exchange | |
The Northwest Power Act, through the Residential Exchange Program (REP), provides access to the benefits of low-cost federal power for residential and small farm customers of regional utilities, including PSE. The program is administered by the BPA. Pursuant to agreements (including settlement agreements) between the BPA and PSE, the BPA has provided payments of REP benefits to PSE, which PSE has passed through to its residential and small farm customers in the form of electricity bill credits. | |
In 2007, the United States Court of Appeals for the Ninth Circuit (Ninth Circuit) ruled that REP agreements of the BPA with PSE and a number of other investor-owned utilities were inconsistent with the Northwest Power Act. Since that time, those investor-owned utilities, including PSE, the BPA and other parties have been involved in ongoing litigation at the Ninth Circuit relating to the amount of REP benefits paid to utilities, including PSE, for the fiscal year 2002 through fiscal year 2011 period and the amount of REP benefits to be paid going forward. | |
In July 2011, the BPA, PSE and a number of other parties entered into a settlement agreement (2012 REP Settlement) that by its terms, if upheld in its entirety, would resolve the disputes between BPA and PSE regarding REP benefits paid for fiscal years 2002-2011 and determine REP benefits for fiscal years 2012-2028. In October 2011, certain other parties challenged BPA decisions with regard to its entering into the 2012 REP Settlement agreement. On October 28, 2013, the Ninth Circuit issued an order dismissing this challenge to this settlement. In light of the disposition of this challenge, the stay of the other pending Ninth Circuit litigation regarding REP benefits was lifted in January 2014. In the order lifting the stay, petitioners (unless they move to voluntarily dismiss their petitions) and intervenors (unless they move to voluntarily withdraw) were directed to file a statement explaining which issues, if any, remain pending. Such statements are due on or before April 1, 2014. PSE is unable to determine prior to April 1, if this other pending litigation will continue and, if so, what impact these proceedings may have on PSE. However, the Company believes it is unlikely that any unfavorable outcome would have a material adverse effect on PSE because REP benefits received by PSE are passed through directly to REP customers. | |
With the Ninth Circuit’s decision affirming the 2012 REP Settlement, PSE will receive approximately $57.0 million plus interests of REP payments owed under a 2008 agreement, which are in addition to scheduled monthly REP benefits received from BPA under the 2012 REP Settlement. These payments will be given back to PSE's residential and small farm customers through a higher residential exchange credit on their bills. | |
Colstrip | |
PSE has a 50% ownership interest in Colstrip Units 1 and 2, and a 25% interest in Colstrip Units 3 and 4. On March 6, 2013, Sierra Club and Montana Environmental Information Center (MEIC) filed a Clean Air Act citizen suit against all Colstrip owners (including PSE) alleging numerous claims for relief, most which relate to alleged prevention of significant deterioration (PSD) violations. One claim relates to the alleged failure to update the Title V permit to reflect the major modifications alleged in the first 36 claims, another claim alleges that the previous Title V compliance certifications have been incomplete because they did not address the alleged major modifications, and the last claim alleges opacity violations since 2007. The lawsuit was filed in U.S. District of Montana, Billings Division requesting injunctive relief and civil penalties, including a request that the owners remediate environmental damage and that $100,000 of the civil penalties be used for beneficial mitigation projects. This lawsuit followed various Notices of Intent to Sue sent to Colstrip owners (including PSE) from the Sierra Club and the MEIC between July and December 2012. Discovery in the case has begun, and a prehearing conference took place in July 2013. The case has been bifurcated into separate liability and remedy trials set for March and August 2015, respectively. PSE is litigating the allegations set forth in the notices and cannot at this time predict the outcome of this matter. | |
Other Proceedings | |
The Company is also involved in litigation relating to claims arising out of its operations in the normal course of business. The Company has recorded reserves of $1.4 million and $3.4 million relating to these claims as of December 31, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||
Commitments and Contingencies | ||||||||||||||||||||||
For the year ended December 31, 2013, approximately 15.1% of the Company’s energy output was obtained at an average cost of approximately $0.018 per kilowatt hour (kWh) through long-term contracts with three of the Washington Public Utility Districts (PUDs) that own hydroelectric projects on the Columbia River. The purchase of power from the Columbia River projects is on a pro rata share basis under which the Company pays a proportionate share of the annual debt service, operating and maintenance costs and other expenses associated with each project in proportion to the contractual shares that PSE obtains from that project. In these instances, PSE’s payments are not contingent upon the projects being operable; therefore, PSE is required to make the payments even if power is not delivered. These projects are financed through substantially level debt service payments and their annual costs should not vary significantly over the term of the contracts unless additional financing is required to meet the costs of major maintenance, repairs or replacements, or license requirements. The Company’s share of the costs and the output of the projects is subject to reduction due to various withdrawal rights of the PUDs and others over the contract lives. | ||||||||||||||||||||||
The Company's expenses under these PUD contracts were as follows for the years ended December 31: | ||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||
PUD contract costs | $ | 63,365 | $ | 70,188 | $ | 81,828 | ||||||||||||||||
As of December 31, 2013, the Company purchased portions of the power output of the PUDs' projects as set forth in the following table: | ||||||||||||||||||||||
Company's Current Share of | ||||||||||||||||||||||
(Dollars in Thousands) | Contract | Percent of | Megawatt Capacity | Estimated 2014 Costs | 2014 Debt Service Costs | Interest included in 2014 Debt Service Costs | Debt Outstanding | |||||||||||||||
Expiration | Output | |||||||||||||||||||||
Chelan County PUD: | ||||||||||||||||||||||
Rock Island Project | 2031 | 25 | % | 156 | $ | 29,182 | $ | 11,288 | $ | 6,412 | $ | 102,522 | ||||||||||
Rocky Reach Project | 2031 | 25 | % | 325 | 26,484 | 8,787 | 3,563 | 58,055 | ||||||||||||||
Douglas County PUD: | ||||||||||||||||||||||
Wells Project | 2018 | 29.9 | % | 251 | 16,258 | 8,675 | 2,678 | 71,679 | ||||||||||||||
Grant County PUD: | ||||||||||||||||||||||
Priest Rapids Development | 2052 | 0.8 | % | 9 | 4,032 | 2,175 | 1,274 | 23,738 | ||||||||||||||
Wanapum Development | 2052 | 0.8 | % | 9 | 4,032 | 2,175 | 1,274 | 23,738 | ||||||||||||||
Total | 750 | $ | 79,988 | $ | 33,100 | $ | 15,201 | $ | 279,732 | |||||||||||||
The following table summarizes the Company’s estimated payment obligations for power purchases from the Columbia River projects, contracts with other utilities and contracts with non-utilities. These contracts have varying terms and may include escalation and termination provisions. | ||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Columbia River projects | $ | 67,094 | $ | 69,401 | $ | 70,924 | $ | 71,091 | $ | 62,477 | $ | 601,448 | $ | 942,435 | ||||||||
Other utilities | 17,277 | 16,718 | 17,229 | 10,174 | — | — | 61,398 | |||||||||||||||
Non-utility contracts | 53,928 | 116,317 | 150,305 | 186,948 | 191,405 | 1,480,584 | 2,179,487 | |||||||||||||||
Total | $ | 138,299 | $ | 202,436 | $ | 238,458 | $ | 268,213 | $ | 253,882 | $ | 2,082,032 | $ | 3,183,320 | ||||||||
Total purchased power contracts provided the Company with approximately 10.7 million, 6.1 million and 8.5 million megawatt hours (MWh) of firm energy at a cost of approximately $348.7 million, $203.1 million and $391.8 million for the years 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||
The Company has natural gas-fired generation facility obligations for natural gas supply amounting to an estimated $118.6 million in 2014. Longer term agreements for natural gas supply amount to an estimated $318.1 million for 2015 through 2030. | ||||||||||||||||||||||
PSE enters into short-term energy supply contracts to meet its core customer needs. These contracts are sometimes classified as NPNS, however in most cases recorded at fair value in accordance with ASC 815. Commitments under these contracts are $32.5 million, $10.8 million and $2.7 million in 2014, 2015 and 2016, respectively. | ||||||||||||||||||||||
Natural Gas Supply Obligations | ||||||||||||||||||||||
The Company has also entered into various firm supply, transportation and storage service contracts in order to ensure adequate availability of natural gas supply for its firm customers. Many of these contracts, which have remaining terms from less than one year to 31 years, provide that the Company must pay a fixed demand charge each month, regardless of actual usage. The Company contracts for its long-term natural gas supply on a firm basis, which means the Company has a 100% daily take obligation and the supplier has a 100% daily delivery obligation to ensure service to PSE’s customers and generation requirements. The Company incurred demand charges in 2013 for firm transportation service and firm storage and peaking service of $160.8 million and $6.6 million, respectively. The demand charge for firm natural gas supply was immaterial in 2013. The Company incurred demand charges in 2013 for firm transportation and firm storage service for the natural gas supply for its combustion turbines in the amount of $39.5 million, which is included in the total Company demand charges. | ||||||||||||||||||||||
The following table summarizes the Company’s obligations for future demand charges through the primary terms of its existing contracts. The quantified obligations are based on the FERC and NEB (National Energy Board) currently authorized rates, which are subject to change. | ||||||||||||||||||||||
Demand Charge Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Firm transportation service | $ | 168,936 | $ | 166,452 | $ | 159,899 | $ | 156,205 | $ | 133,281 | $ | 487,739 | $ | 1,272,512 | ||||||||
Firm storage service | 6,528 | 5,337 | 5,209 | 5,209 | 1,407 | 2,793 | 26,483 | |||||||||||||||
Total | $ | 175,464 | $ | 171,789 | $ | 165,108 | $ | 161,414 | $ | 134,688 | $ | 490,532 | $ | 1,298,995 | ||||||||
Service Contracts | ||||||||||||||||||||||
The following table summarizes the Company’s estimated obligations for service contracts through the terms of its existing contracts. | ||||||||||||||||||||||
Service Contract Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Energy production service contracts 1 | $ | 26,714 | $ | 33,068 | $ | 15,728 | $ | 5,658 | $ | 4,165 | $ | 27,182 | $ | 112,515 | ||||||||
Automated meter reading system 2 | 23,443 | 24,176 | 13,063 | 9,558 | 9,994 | 80,106 | 160,340 | |||||||||||||||
Total | $ | 50,157 | $ | 57,244 | $ | 28,791 | $ | 15,216 | $ | 14,159 | $ | 107,288 | $ | 272,855 | ||||||||
_______________ | ||||||||||||||||||||||
1 | Energy production service contracts include operations and maintenance contracts on Mint Farm, Wild Horse, Goldendale, Hopkins Ridge, Frederickson 1, Ferndale and Lower Snake River facilities. | |||||||||||||||||||||
2 | Automated meter reading system contractual obligation is the service component of the Landis and Gyr contract. | |||||||||||||||||||||
For information regarding PSE's environmental remediation obligations, see Note 3 Regulation and Rates. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
On June 1, 2006, PSE entered into a revolving credit facility with Puget Energy in the form of a Demand Promissory Note (Note). Through the Note, PSE may borrow up to $30.0 million from Puget Energy, subject to approval by Puget Energy. Under the terms of the Note, PSE pays interest on the outstanding borrowings based on the lowest of the weighted-average interest rate of PSE’s outstanding commercial paper interest rate or PSE’s senior unsecured revolving credit facility. Absent such borrowings, interest is charged at one-month LIBOR plus 0.25%. At December 31, 2013 and 2012, the outstanding balance of the Note was $29.6 million and $29.6 million, respectively, and the interest rate was 0.325% and 0.5%, respectively. The outstanding balance and the related interest under the Note are eliminated by Puget Energy upon consolidation of PSE’s financial statements. The $30.0 million credit facility with Puget Energy was unaffected by the merger. | |
On June 3, 2011, Puget Energy issued $500.0 million of senior secured notes. Macquarie Capital (USA) Inc. acted as a co-manager and underwriter of this issue. Net proceeds of $484.0 million from these notes were used to repay a portion of the outstanding $782.0 million term-loan. Puget Energy’s term-loan and credit facility for funding capital expenditures both were originally scheduled to mature in February 2014, and were syndicated among numerous committed banks and other financial institutions. One of these banks was Macquarie Bank Limited. On February 10, 2012, Puget Energy terminated the term loan and capital expenditure facility and replaced them with a $1.0 billion revolving credit facility. There are no related parties with commitments under the $1.0 billion revolving credit facility. Concurrent with the borrowings under the term loan and capital expenditure credit agreements, Puget Energy entered into several interest rate swap instruments to hedge volatility associated with these two loans. Two of the swap instruments were entered into with Macquarie Bank Limited with a total notional amount of $444.9 million. On June 3, 2011, Puget Energy settled one of the swaps with a notional amount of $77.4 million. On February 9, 2012, Puget Energy amended and reduced the remaining swap instrument by $67.5 million. On June 18, 2012, Puget Energy terminated and settled the remaining $300.0 million of the swap instrument with Macquarie Bank Limited. |
Segment_Information
Segment Information | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
Segment Information | |
Puget Energy operates one reportable business segment referred to as the regulated utility segment. Puget Energy’s regulated utility operation generates, purchases and sells electricity and purchases, transports and sells natural gas. The service territory of PSE covers approximately 6,000 square miles in the state of Washington. In managing the business, management reviews the consolidated financial statements for Puget Energy and PSE during the year. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) by component for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Puget Energy | Net unrealized gain (loss) on interest rate swaps | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | ||||||||||
Changes in AOCI, net of tax | |||||||||||||
(Dollars in Thousands) | Total | ||||||||||||
Balance at December 31, 2010 | $ | (40,041 | ) | $ | 39,630 | $ | (2,658 | ) | $ | (3,069 | ) | ||
Other comprehensive income (loss) before reclassifications | — | (53,742 | ) | — | (53,742 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 25,442 | (1,083 | ) | 1,545 | 25,904 | ||||||||
Net current-period other comprehensive income (loss) | 25,442 | (54,825 | ) | 1,545 | (27,838 | ) | |||||||
Balance at December 31, 2011 | $ | (14,599 | ) | $ | (15,195 | ) | $ | (1,113 | ) | $ | (30,907 | ) | |
Other comprehensive income (loss) before reclassifications | — | (13,574 | ) | — | (13,574 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 11,577 | (296 | ) | 371 | 11,652 | ||||||||
Net current-period other comprehensive income (loss) | 11,577 | (13,870 | ) | 371 | (1,922 | ) | |||||||
Balance at December 31, 2012 | $ | (3,022 | ) | $ | (29,065 | ) | $ | (742 | ) | $ | (32,829 | ) | |
Other comprehensive income (loss) before reclassifications | — | 76,004 | — | 76,004 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2,928 | 1,575 | 37 | 4,540 | |||||||||
Net current-period other comprehensive income (loss) | 2,928 | 77,579 | 37 | 80,544 | |||||||||
Balance at December 31, 2013 | $ | (94 | ) | $ | 48,514 | $ | (705 | ) | $ | 47,715 | |||
Puget Sound Energy | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | Net unrealized gain (loss) on treasury interest rate swaps | ||||||||||
Changes in AOCI, net of tax | |||||||||||||
(Dollars in Thousands) | Total | ||||||||||||
Balance at December 31, 2010 | $ | (115,778 | ) | $ | (34,612 | ) | $ | (7,257 | ) | $ | (157,647 | ) | |
Other comprehensive income (loss) before reclassifications | (59,468 | ) | — | — | (59,468 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6,542 | 21,678 | 316 | 28,536 | |||||||||
Net current-period other comprehensive income (loss) | (52,926 | ) | 21,678 | 316 | (30,932 | ) | |||||||
Balance at December 31, 2011 | $ | (168,704 | ) | $ | (12,934 | ) | $ | (6,941 | ) | $ | (188,579 | ) | |
Other comprehensive income (loss) before reclassifications | (17,049 | ) | — | — | (17,049 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 9,755 | 8,358 | 317 | 18,430 | |||||||||
Net current-period other comprehensive income (loss) | (7,294 | ) | 8,358 | 317 | 1,381 | ||||||||
Balance at December 31, 2012 | $ | (175,998 | ) | $ | (4,576 | ) | $ | (6,624 | ) | $ | (187,198 | ) | |
Other comprehensive income (loss) before reclassifications | 74,969 | — | — | 74,969 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 13,624 | 2,549 | 317 | 16,490 | |||||||||
Net current-period other comprehensive income (loss) | 88,593 | 2,549 | 317 | 91,459 | |||||||||
Balance at December 31, 2013 | $ | (87,405 | ) | $ | (2,027 | ) | $ | (6,307 | ) | $ | (95,739 | ) | |
Details about these reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011, respectively, are as follows: | |||||||||||||
Puget Energy | |||||||||||||
(Dollars in Thousands) | |||||||||||||
Details about accumulated other comprehensive income (loss) components | Affected line item in the statement where net income (loss) is presented | Amount reclassified from accumulated | |||||||||||
other comprehensive income (loss) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net unrealized gain (loss) on interest rate swaps: | |||||||||||||
Interest rate contracts | Interest expense | $ | (4,505 | ) | $ | (17,811 | ) | $ | (39,143 | ) | |||
Tax (expense) or benefit | 1,577 | 6,234 | 13,701 | ||||||||||
Net of Tax | $ | (2,928 | ) | $ | (11,577 | ) | $ | (25,442 | ) | ||||
Net unrealized gain (loss) and prior service cost on pension plans: | |||||||||||||
Amortization of prior service cost | (a) | 1,997 | 1,980 | 1,980 | |||||||||
Amortization of net gain (loss) | (a) | (4,420 | ) | (1,524 | ) | (314 | ) | ||||||
Total before tax | (2,423 | ) | 456 | 1,666 | |||||||||
Tax (expense) or benefit | 848 | (160 | ) | (583 | ) | ||||||||
Net of Tax | $ | (1,575 | ) | $ | 296 | $ | 1,083 | ||||||
Net unrealized gain (loss) on energy derivative instruments: | |||||||||||||
Commodity contracts: Electric derivatives | Electric generation fuel | — | 100 | (679 | ) | ||||||||
Purchased electricity | (57 | ) | (671 | ) | (1,698 | ) | |||||||
Total before tax | (57 | ) | (571 | ) | (2,377 | ) | |||||||
Tax (expense) or benefit | 20 | 200 | 832 | ||||||||||
Net of Tax | $ | (37 | ) | $ | (371 | ) | $ | (1,545 | ) | ||||
Total reclassification for the period | Net of Tax | $ | (4,540 | ) | $ | (11,652 | ) | $ | (25,904 | ) | |||
__________ | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). | ||||||||||||
Puget Sound Energy | |||||||||||||
(Dollars in Thousands) | |||||||||||||
Details about accumulated other comprehensive income (loss) components | Affected line item in the statement where net income (loss) is presented | Amount reclassified from accumulated | |||||||||||
other comprehensive income (loss) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net unrealized gain (loss) and prior service cost on pension plans: | |||||||||||||
Amortization of prior service cost | (a) | $ | 1,559 | $ | 1,245 | $ | 949 | ||||||
Amortization of net gain (loss) | (a) | (22,519 | ) | (16,203 | ) | (10,963 | ) | ||||||
Amortization of transition obligation | (a) | — | (50 | ) | (50 | ) | |||||||
Total before tax | (20,960 | ) | (15,008 | ) | (10,064 | ) | |||||||
Tax (expense) or benefit | 7,336 | 5,253 | 3,522 | ||||||||||
Net of tax | $ | (13,624 | ) | $ | (9,755 | ) | $ | (6,542 | ) | ||||
Net unrealized gain (loss) on energy derivative instruments: | |||||||||||||
Commodity contracts: Electric derivatives | Electric generation fuel | — | 97 | (20,625 | ) | ||||||||
Purchased electricity | (3,922 | ) | (12,955 | ) | (12,726 | ) | |||||||
Total before tax | (3,922 | ) | (12,858 | ) | (33,351 | ) | |||||||
Tax (expense) or benefit | 1,373 | 4,500 | 11,673 | ||||||||||
Net of Tax | $ | (2,549 | ) | $ | (8,358 | ) | $ | (21,678 | ) | ||||
Net unrealized gain (loss) on treasury interest rate swaps: | |||||||||||||
Interest rate contracts | Interest expense | (488 | ) | (488 | ) | (488 | ) | ||||||
Tax (expense) or benefit | 171 | 171 | 172 | ||||||||||
Net of Tax | $ | (317 | ) | $ | (317 | ) | $ | (316 | ) | ||||
Total reclassification for the period | Net of Tax | $ | (16,490 | ) | $ | (18,430 | ) | $ | (28,536 | ) | |||
__________ | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). |
SUPPLEMENTAL_QUARTERLY_FINANCI
SUPPLEMENTAL QUARTERLY FINANCIAL DATA | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
Supplemental Quarterly Financial Data | ' | ||||||||||||
SUPPLEMENTAL QUARTERLY FINANCIAL DATA | |||||||||||||
The following unaudited amounts, in the opinion of the Company, include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations for the interim periods. Quarterly amounts vary during the year due to the seasonal nature of the utility business. | |||||||||||||
Puget Energy | 2013 Quarter | ||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 999,818 | $ | 642,486 | $ | 598,348 | $ | 946,645 | |||||
Operating income | 317,735 | 95,081 | 100,043 | 242,301 | |||||||||
Net income | 167,475 | 905 | 8,540 | 108,808 | |||||||||
2012 Quarter | |||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 1,048,512 | $ | 678,617 | $ | 578,755 | $ | 909,272 | |||||
Operating income | 209,023 | 159,876 | 153,262 | 193,374 | |||||||||
Net income (loss) | 88,480 | 57,692 | 46,692 | 80,957 | |||||||||
Puget Sound Energy | 2013 Quarter | ||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 999,707 | $ | 642,486 | $ | 598,348 | $ | 946,794 | |||||
Operating income | 310,587 | 91,094 | 96,085 | 237,808 | |||||||||
Net income | 179,938 | 26,663 | 26,605 | 122,923 | |||||||||
2012 Quarter | |||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 1,048,512 | $ | 678,617 | $ | 579,611 | $ | 909,519 | |||||
Operating income | 201,245 | 153,306 | 150,007 | 188,431 | |||||||||
Net income (loss) | 112,716 | 80,872 | 66,868 | 95,714 | |||||||||
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||
Schedule I: Condensed Financial Information of Puget Energy | ' | |||||||||||||
SCHEDULE I: CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY | ||||||||||||||
Puget Energy | ||||||||||||||
Condensed Statements of Income and Comprehensive Income (Loss) | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Non-utility expense and other | $ | (1,255 | ) | $ | (2,040 | ) | $ | (2,280 | ) | |||||
Other income (deductions): | ||||||||||||||
Equity in earnings of subsidiary (Note 1) | 351,718 | 365,590 | 228,288 | |||||||||||
Unhedged interest rate swap expense | 2,420 | (4,288 | ) | (28,601 | ) | |||||||||
Interest income | 114 | 214 | 215 | |||||||||||
Interest expense | (103,372 | ) | (135,312 | ) | (131,702 | ) | ||||||||
Income taxes | 36,103 | 49,657 | 57,370 | |||||||||||
Net income (loss) | 285,728 | 273,821 | 123,290 | |||||||||||
Comprehensive income (loss) | $ | 366,272 | $ | 271,899 | $ | 95,452 | ||||||||
See accompanying notes to the consolidated financial statements. | ||||||||||||||
Puget Energy | ||||||||||||||
Condensed Balance Sheets | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Assets: | ||||||||||||||
Investment in subsidiaries | $ | 3,508,460 | $ | 3,490,206 | ||||||||||
Other property and investments: | ||||||||||||||
Goodwill | 1,656,513 | 1,656,513 | ||||||||||||
Current assets: | ||||||||||||||
Cash | 191 | 12 | ||||||||||||
Receivables from affiliates 1 | 29,605 | 29,608 | ||||||||||||
Deferred income taxes | — | 2,300 | ||||||||||||
Total current assets | 29,796 | 31,920 | ||||||||||||
Long-term assets: | ||||||||||||||
Deferred income taxes | 241,787 | 166,896 | ||||||||||||
Other | 17,992 | 20,944 | ||||||||||||
Total long-term assets | 259,779 | 187,840 | ||||||||||||
Total assets | $ | 5,454,548 | $ | 5,366,479 | ||||||||||
Capitalization and liabilities: | ||||||||||||||
Common equity | $ | 3,679,679 | $ | 3,484,228 | ||||||||||
Long-term debt | 1,698,964 | 1,833,959 | ||||||||||||
Total capitalization | 5,378,643 | 5,318,187 | ||||||||||||
Current liabilities: | ||||||||||||||
Account Payable | 322 | 212 | ||||||||||||
Interest | 24,047 | 26,466 | ||||||||||||
Deferred income taxes | 38,296 | — | ||||||||||||
Unrealized loss on derivative instruments | 6,584 | 6,571 | ||||||||||||
Total current liabilities | 69,249 | 33,249 | ||||||||||||
Long-term liabilities: | ||||||||||||||
Unrealized loss on derivative instruments | 6,656 | 15,043 | ||||||||||||
Total long-term liabilities | 6,656 | 15,043 | ||||||||||||
Commitments and contingencies (Note 3) | ||||||||||||||
Total capitalization and liabilities | $ | 5,454,548 | $ | 5,366,479 | ||||||||||
_______________ | ||||||||||||||
1 | Eliminated in consolidation. | |||||||||||||
See accompanying notes to the consolidated financial statements. | ||||||||||||||
Puget Energy | ||||||||||||||
Condensed Statements of Cash Flows | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Operating activities: | ||||||||||||||
Net income (loss) | $ | 285,728 | $ | 273,821 | $ | 123,290 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||
Unrealized gain on derivative instruments | (3,869 | ) | (12,984 | ) | 33,549 | |||||||||
Deferred income taxes and tax credits - net | (35,872 | ) | (49,496 | ) | (57,151 | ) | ||||||||
Equity in earnings of subsidiary | (351,718 | ) | (365,590 | ) | (228,288 | ) | ||||||||
Other | 3,055 | 11,409 | 12,837 | |||||||||||
Dividends received from subsidiaries | 410,977 | 175,625 | 212,875 | |||||||||||
Accounts receivable | 3 | 283 | 618 | |||||||||||
Income taxes | — | — | 14,069 | |||||||||||
Accounts payable | 110 | 212 | — | |||||||||||
Accrued interest | (1,299 | ) | 33,842 | 25,273 | ||||||||||
Net cash provided by (used in) operating activities | 307,115 | 67,122 | 137,072 | |||||||||||
Investing activities: | ||||||||||||||
Investment in subsidiaries | — | — | (287,000 | ) | ||||||||||
(Increase) decrease in loan to subsidiaries | — | 400 | (7,400 | ) | ||||||||||
Other | (1,120 | ) | (20,901 | ) | (16,228 | ) | ||||||||
Net cash provided by (used in) investing activities | (1,120 | ) | (20,501 | ) | (310,628 | ) | ||||||||
Financing activities: | ||||||||||||||
Dividends paid | (170,821 | ) | (88,594 | ) | (117,441 | ) | ||||||||
Issuance of bond | — | 884,000 | 787,000 | |||||||||||
Redemption of term-loan and other long-term debt | (135,000 | ) | (843,000 | ) | (484,000 | ) | ||||||||
Issue costs and others | 5 | (5,239 | ) | (6,016 | ) | |||||||||
Net cash provided by (used in) by financing activities | (305,816 | ) | (52,833 | ) | 179,543 | |||||||||
Increase (decrease) in cash | 179 | (6,212 | ) | 5,987 | ||||||||||
Cash at beginning of year | 12 | 6,224 | 237 | |||||||||||
Cash at end of year | $ | 191 | $ | 12 | $ | 6,224 | ||||||||
See accompanying notes to the consolidated financial statements. | ||||||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | ||||||||||||||
(1) Basis of Presentation | ||||||||||||||
Puget Energy, Inc. (Puget Energy) is an energy services holding company that conducts substantially all of its business operations through its subsidiary. These condensed financial statements and related footnotes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These financial statements, in which Puget Energy’s subsidiary has been included using the equity method, should be read in conjunction with the consolidated financial statements and notes thereto of Puget Energy included in Part II, Item 8 of this Form 10-K. Puget Energy owns 100% of the common stock of all its subsidiaries. | ||||||||||||||
Equity earnings of subsidiary included earnings from PSE of $356.1 million, $356.2 million and $204.1 million for the years ended December 31, 2013, 2012 and 2011, respectively, and business combination accounting adjustments under ASC 805 recorded at Puget Energy for PSE of $(4.4) million, $9.4 million and $24.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Investment in subsidiaries includes Puget Energy business combination accounting adjustments under ASC 805 that are recorded at Puget Energy. | ||||||||||||||
The Company has revised its condensed statements of net income and comprehensive income (loss) for the years ended December 31, 2012 and 2011 for errors in recording comprehensive income of PSE. The Company also revised its condensed statements of cash flows which resulted in adjustments between cash provided by operating activities and cash used investing activities to reflect payments made on unhedged interest rate swap agreements that were previously classified as an operating activity. These adjustments are not considered material, individually or in the aggregate, to the previously issued condensed statements of income and comprehensive income (loss) and condensed statements of cash flows. The table below illustrates the effects of these adjustments on the condensed statements of income and comprehensive income (loss) and condensed statement of cash flows for those line items affected. | ||||||||||||||
Condensed Statements of Income and Comprehensive Income (Loss) | As Reported | As Revised | ||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Comprehensive income (loss) | $ | 285,398 | $ | 148,733 | $ | 271,899 | $ | 95,452 | ||||||
Condensed Statements of Cash Flows | As Reported | As Revised | ||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Net cash provided by (used in) operating activities | $ | 46,221 | $ | 120,844 | $ | 67,122 | $ | 137,072 | ||||||
Net cash provided by (used in) investing activities | $ | 400 | $ | (294,400 | ) | $ | (20,501 | ) | $ | (310,628 | ) | |||
(2) Debt | ||||||||||||||
For information concerning Puget Energy’s long-term debt obligations, see Note 6, Long-Term Debt, to the consolidated financial statements of Puget Energy. | ||||||||||||||
(3) Commitments and Contingencies | ||||||||||||||
For information concerning Puget Energy’s material contingencies and guarantees, see Note 15, Commitments and Contingencies, to the consolidated financial statements of Puget Energy. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||
Schedule II: Valuation and Qualifying Accounts and Reserves | ' | ||||||||||||
SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||
Puget Energy | Balance At | Additions | Deductions | Balance | |||||||||
(Dollars in Thousands) | Beginning of | Charged to | At End | ||||||||||
Period | Costs and | Of Period | |||||||||||
Expenses | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 9,932 | $ | 26,330 | $ | 28,877 | $ | 7,385 | |||||
Year Ended December 31, 2012 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 8,495 | $ | 21,567 | $ | 20,130 | $ | 9,932 | |||||
Year Ended December 31, 2011 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 9,784 | $ | 18,449 | $ | 19,738 | $ | 8,495 | |||||
Puget Sound Energy | Balance At | Additions | Deductions | Balance | |||||||||
(Dollars in Thousands) | Beginning of | Charged to | At End | ||||||||||
Period | Costs and | Of Period | |||||||||||
Expenses | |||||||||||||
Year Ended December 31, 2013 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 9,932 | $ | 26,330 | $ | 28,877 | $ | 7,385 | |||||
Year Ended December 31, 2012 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 8,495 | $ | 21,567 | $ | 20,130 | $ | 9,932 | |||||
Year Ended December 31, 2011 | |||||||||||||
Accounts deducted from assets on balance sheet: | |||||||||||||
Allowance for doubtful accounts receivable | $ | 9,784 | $ | 18,449 | $ | 19,738 | $ | 8,495 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
Puget Energy, Inc. (Puget Energy) is an energy services holding company that owns Puget Sound Energy, Inc. (PSE). PSE is a public utility incorporated in the state of Washington that furnishes electric and natural gas services in a territory covering 6,000 square miles, primarily in the Puget Sound region. On February 6, 2009, Puget Holdings LLC (Puget Holdings), owned by a consortium of long-term infrastructure investors, completed its merger with Puget Energy (the merger). As a result of the merger, all of Puget Energy’s common stock is indirectly owned by Puget Holdings. The acquisition of Puget Energy was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, “Business Combinations” (ASC 805), as of the date of the merger. ASC 805 requires the acquirer to recognize and measure identifiable assets acquired and liabilities assumed at fair value as of the merger date. | ||||
The consolidated financial statements of Puget Energy reflect the accounts of Puget Energy and its subsidiary, PSE. PSE’s consolidated financial statements include the accounts of PSE and its subsidiary. Puget Energy and PSE are collectively referred to herein as “the Company.” The consolidated financial statements are presented after elimination of all significant intercompany items and transactions. PSE’s consolidated financial statements continue to be accounted for on a historical basis and PSE’s financial statements do not include any ASC 805 purchase accounting adjustments. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Certain prior year amounts have been corrected to conform to the current year presentation. In addition, at December 31, 2013, PSE revised 2012 credit balances in customer’s accounts receivable to accounts payable in the amount of $33.7 million in order to correct errors included in the December 31, 2012 balances. The Company believes these amounts are not material to the financial statements. | ||||
Utility Plant | ' | |||
Utility Plant | ||||
Puget Energy and PSE capitalize, at original cost, additions to utility plant, including renewals and betterments. Costs include indirect costs such as engineering, supervision, certain taxes, pension and other employee benefits and an Allowance For Funds Used During Construction (AFUDC). Replacements of minor items of property are included in maintenance expense. When the utility plant is retired and removed from service, the original cost of the property is charged to accumulated depreciation and costs associated with removal of the property, less salvage, are charged to the cost of removal regulatory liability. | ||||
Planned Major Maintenance | ||||
Planned major maintenance is an activity that typically occurs when PSE overhauls or substantially upgrades various systems and equipment on its natural gas fired combustion turbines on a scheduled basis. Costs related to planned major maintenance, in excess of $0.5 million, are deferred and amortized to the next scheduled major maintenance. This accounting method also follows the Washington Utilities and Transportation Commission (Washington Commission) regulatory treatment related to these generating facilities. | ||||
Non-Utility Property, Plant and Equipment | 'Non-Utility Property, Plant and EquipmentFor PSE, the costs of other property, plant and equipment are stated at historical cost.  Expenditures for refurbishment and improvements that significantly add to productive capacity or extend useful life of an asset are capitalized.  Replacement of minor items are expensed on a current basis.  Gains and losses on assets sold or retired are reflected in earnings. | |||
Depreciation and Amortization | 'Depreciation and AmortizationFor financial statement purposes, the Company provides for depreciation and amortization on a straight-line basis.  Amortization is recorded for intangibles such as regulatory assets and liabilities, computer software and franchises.  The depreciation of vehicles and equipment is allocated to the asset and expense accounts based on usage.  The annual depreciation provision stated as a percent of a depreciable electric utility plant was 2.8%, 2.9% and 2.7% in 2013, 2012 and 2011, respectively; depreciable gas utility plant was 3.4%, 3.4% and 3.5% in 2013, 2012 and 2011, respectively; and depreciable common utility plant was 11.4%, 11.6% and 11.3% in 2013, 2012 and 2011, respectively.  Depreciation on other property, plant and equipment is calculated primarily on a straight-line basis over the useful lives of the assets.  The cost of removal is collected from PSE’s customers through depreciation expense and any excess is recorded as a regulatory liability. | |||
Goodwill | ' | |||
Goodwill | ||||
On February 6, 2009, Puget Holdings completed its merger with Puget Energy. Puget Energy remeasured the carrying amount of all its assets and liabilities to fair value, which resulted in recognition of approximately $1.7 billion in goodwill. ASC 350, “Intangibles - Goodwill and Other” (ASC 350), requires that goodwill be tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the Company’s business or regulatory outlook, legal factors, a sale or disposition of a significant portion of a reporting unit or significant changes in the financial markets which could influence the Company’s access to capital and interest rates. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units and the determination of the fair value of the reporting units. Management has determined Puget Energy has only one reporting unit. | ||||
The goodwill recorded by Puget Energy represents the potential long-term return to the Company’s investors. Goodwill is tested for impairment annually using a two-step process. The first step compares the carrying amount of the reporting unit with its fair value, with a carrying value higher than fair value indicating potential impairment. If the first step test fails, the second step is performed. This would entail a full valuation of Puget Energy’s assets and liabilities and comparing the valuation to its carrying amounts, with the aggregate difference indicating the amount of impairment. Goodwill of a reporting unit is required to be tested for impairment on an interim basis if an event occurs or circumstances change that would cause the fair value of a reporting unit to fall below its carrying amount. | ||||
Puget Energy conducted its annual impairment test in 2013 using an October 1, 2013 measurement date. The fair value of Puget Energy’s reporting unit was estimated using both discounted cash flow and market approach. Such approaches are considered methodologies that market participants would use. This analysis requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of long-term rate of growth for Puget Energy business, estimation of the useful life over which cash flows will occur, the selection of utility holding companies determined to be comparable to Puget Energy and determination of an appropriate weighted-average cost of capital or discount rate. The market approach estimates the fair value of the business based on market prices of stocks of comparable companies engaged in the same or similar lines of business. In addition, indications of market value are estimated by deriving multiples of equity or invested capital to various measures of revenue, earnings or cash flow. Changes in these estimates and or assumptions could materially affect the determination of fair value and goodwill impairment of the reporting unit. Based on the test performed, management has determined that there was no indication of impairment of Puget Energy’s goodwill as of October 1, 2013. There were no events or circumstances from the date of the assessment through December 31, 2013 that would impact management’s conclusion. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist of demand bank deposits and short-term highly liquid investments with original maturities of three months or less at the time of purchase. The cash and cash equivalents balance at Puget Energy was $44.3 million and $135.5 million as of December 31, 2013 and 2012, respectively. The 2013 and 2012 balance consisted of cash equivalents, which are reported at cost and approximate fair value, and were $2.6 million and $107.6 million, respectively. | ||||
Materials and Supplies | ' | |||
Materials and Supplies | ||||
Materials and supplies are used primarily in the operation and maintenance of electric and natural gas distribution and transmission systems as well as spare parts for combustion turbines used for the generation of electricity. Puget Energy and PSE record these items at weighted-average cost. | ||||
Fuel and Gas Inventory | ' | |||
Fuel and Gas Inventory | ||||
Fuel and gas inventory is used in the generation of electricity and for future sales to the Company’s natural gas customers. Fuel inventory consists of coal, diesel and natural gas used for generation. Gas inventory consists of natural gas and liquefied natural gas (LNG) held in storage for future sales. Puget Energy and PSE record these items at the lower of cost or market value using the weighted-average cost method. | ||||
Regulatory Assets and Liabilities | 'Regulatory Assets and LiabilitiesPSE accounts for its regulated operations in accordance with ASC 980 “Regulated Operations†(ASC 980).  ASC 980 requires PSE to defer certain costs that would otherwise be charged to expense, if it is probable that future rates will permit recovery of such costs.  It similarly requires deferral of revenues or gains and losses that are expected to be returned to customers in the future.  Accounting under ASC 980 is appropriate as long as rates are established by or subject to approval by independent third-party regulators; rates are designed to recover the specific enterprise’s cost of service; and in view of demand for service, it is reasonable to assume that rates set at levels that will recover costs can be charged to and collected from customers.  In most cases, PSE classifies regulatory assets and liabilities as long-term assets or liabilities due to the length of the amortization.  The exception is the Purchased Gas Adjustment (PGA) which can be a current asset or current liability. | |||
Allowance for Funds Used During Construction | ' | |||
Allowance for Funds Used During Construction | ||||
AFUDC represents the cost of both the debt and equity funds used to finance utility plant additions during the construction period. The amount of AFUDC recorded in each accounting period varies depending principally upon the level of construction work in progress and the AFUDC rate used. AFUDC is capitalized as a part of the cost of utility plant and is credited to interest expense and as a non-cash item to other income. Cash inflow related to AFUDC does not occur until these charges are reflected in rates. | ||||
The AFUDC rates authorized by the Washington Commission for natural gas and electric utility plant additions based on the effective dates are as follows: | ||||
Effective Date | Washington Commission | |||
AFUDC Rates | ||||
July 1, 2013 - present | 7.77 | % | ||
May 14, 2012 - June 30, 2013 | 7.8 | |||
April 8, 2010 - May 13, 2012 | 8.1 | |||
The Washington Commission authorized the Company to calculate AFUDC using its allowed rate of return. To the extent amounts calculated using this rate exceed the AFUDC calculated rate using the Federal Energy Regulatory Commission (FERC) formula, PSE capitalizes the excess as a deferred asset, crediting other income. The deferred asset is being amortized over the average useful life of PSE’s non-project electric utility plant which is approximately 30 years. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
Operating utility revenue is recognized when the basis of services is rendered, which includes estimated unbilled revenue, in accordance with ASC 605, “Revenue Recognition” (ASC 605). PSE's estimate of unbilled revenue is based on a calculation using meter readings from its automated meter reading (AMR) system. The estimate calculates unbilled usage at the end of each month as the difference between the customer meter readings on the last day of the month and the last customer meter readings billed. The unbilled usage is then priced at published rates for each schedule to estimate the unbilled revenues by customer. | ||||
Non-utility subsidiaries recognize revenue when services are performed or upon the sale of assets. Revenue from retail sales is billed based on tariff rates approved by the Washington Commission. Sales of Renewable Energy Credits (RECs) are deferred as a regulatory liability. | ||||
PSE collected Washington State excise taxes (which are a component of general retail customer rates) and municipal taxes totaling $243.9 million, $244.2 million and $252.5 million for 2013, 2012 and 2011, respectively. The Company reports the collection of such taxes on a gross basis in operating revenue and as expense in taxes other than income taxes in the accompanying consolidated statements of income. | ||||
Beginning July 1, 2013, PSE's electric and gas operations contain a revenue decoupling mechanism under which PSE's actual energy delivery revenues related to electric transmission and distribution, gas operations and general administrative costs are compared with authorized revenues allowed under the mechanism. Any differences are deferred to a regulatory asset for under recovery or regulatory liability for over recovery. Revenues associated with power costs under the Power Cost Adjustment (PCA) mechanism and PGA rates are excluded from the decoupling mechanism. | ||||
Allowance for Doubtful Accounts | 'Allowance for Doubtful AccountsAllowance for doubtful accounts are provided for electric and natural gas customer accounts based upon a historical experience rate of write-offs of energy accounts receivable along with information on future economic outlook.  The allowance account is adjusted monthly for this experience rate.   The allowance account is maintained until either receipt of payment or the likelihood of collection is considered remote at which time the allowance account and corresponding receivable balance are written off.The Company’s allowance for doubtful accounts at December 31, 2013 and 2012 was $7.4 million and $9.9 million, respectively. | |||
Self Insurance | ' | |||
Self-Insurance | ||||
PSE currently has no insurance coverage for storm damage and recent environmental contamination occurring on PSE-owned property. PSE is self-insured for a portion of the risk associated with comprehensive liability, workers’ compensation claims and catastrophic property losses other than those which are storm related. The Washington Commission has approved the deferral of certain uninsured qualifying storm damage costs that exceed $8.0 million which will be requested for collection in future rates. Additionally, costs may only be deferred if the outage meets the Institute of Electrical and Electronics Engineers (IEEE) outage criteria for system average interruption duration index. | ||||
Federal Income Taxes | ' | |||
Federal Income Taxes | ||||
For presentation in Puget Energy and PSE’s separate financial statements, income taxes are allocated to the subsidiaries on the basis of separate company computations of tax, modified by allocating certain consolidated group limitations which are attributed to the separate company. Taxes payable or receivable are settled with Puget Holdings. | ||||
Natural Gas Off System Sales and Capacity Release | ' | |||
Natural Gas Off-System Sales and Capacity Release | ||||
PSE contracts for firm natural gas supplies and holds firm transportation and storage capacity sufficient to meet the expected peak winter demand for natural gas by its firm customers. Due to the variability in weather, winter peaking consumption of natural gas by most of its customers and other factors, PSE holds contractual rights to natural gas supplies and transportation and storage capacity in excess of its average annual requirements to serve firm customers on its distribution system. For much of the year, there is excess capacity available for third-party natural gas sales, exchanges and capacity releases. PSE sells excess natural gas supplies, enters into natural gas supply exchanges with third parties outside of its distribution area and releases to third parties excess interstate natural gas pipeline capacity and natural gas storage rights on a short-term basis to mitigate the costs of firm transportation and storage capacity for its core natural gas customers. The proceeds from such activities, net of transactional costs, are accounted for as reductions in the cost of purchased natural gas and passed on to customers through the PGA mechanism, with no direct impact on net income. As a result, PSE nets the sales revenue and associated cost of sales for these transactions in purchased natural gas. | ||||
Non-Core Gas Sales | ' | |||
Non-Core Gas Sales | ||||
As part of the Company’s electric operations, PSE provides natural gas to its gas-fired generation facilities. The projected volume of natural gas for power is relative to the price of natural gas. Based on the market prices for natural gas, PSE may use the gas it has already purchased to generate power or PSE may sell the already purchased natural gas. The net proceeds from selling natural gas, previously purchased for power generation, are accounted for in other electric operating revenue and are included in the PCA mechanism. | ||||
Production Tax Credit | ' | |||
Production Tax Credit | ||||
Production Tax Credits (PTCs) represent federal income tax incentives available to taxpayers that generate energy from qualifying renewable sources. Prior to July 1, 2010, PSE passed the benefit of the PTCs to customers as the benefits were generated. After July 1, 2010, PSE records the benefit of the PTCs as a regulatory liability until such time as PSE utilizes the tax credit on its tax return. Once utilized, PSE will pass the benefit to customers. | ||||
Accounting for Derivatives | ' | |||
Accounting for Derivatives | ||||
ASC 815 requires that all contracts considered to be derivative instruments be recorded on the balance sheet at their fair value unless the contracts qualify for an exception. PSE enters into derivative contracts to manage its energy resource portfolio and interest rate exposure including forward physical and financial contracts and swaps. Some of PSE’s physical electric supply contracts qualify for the Normal Purchase Normal Sale (NPNS) exception to derivative accounting rules. PSE may enter into financial fixed price contracts to economically hedge the variability of certain index-based contracts. Those contracts that do not meet the NPNS exception are marked-to-market to current earnings in the statements of income, subject to deferral under ASC 980, for energy related derivatives due to the PCA mechanism and PGA mechanism. | ||||
Puget Energy and PSE elected to de-designate all energy related derivative contracts previously recorded as cash flow hedges for the purpose of simplifying its financial reporting in 2009. The contracts that were de-designated related to physical electric supply contracts and natural gas swap contracts used to fix the price of natural gas for electric generation. For these contracts and for contracts initiated after such date, all mark-to-market adjustments are recognized through earnings. The amount previously recorded in accumulated other comprehensive income (OCI) is transferred to earnings in the same period or periods during which the hedged transaction affects earnings or sooner if management determines that the forecasted transaction is probable of not occurring. As a result, the Company will continue to experience the earnings impact of these reversals from OCI in future periods. | ||||
The Company may enter into swap instruments or other financial derivative instruments to manage the interest rate risk associated with its long-term debt financing and debt instruments. As of December 31, 2013, Puget Energy has interest rate swap contracts outstanding related to its long-term debt. For additional information, see Note 9 Accounting for Derivative Instruments and Hedging Activities. | ||||
Fair Value Measurements of Derivatives | ' | |||
Fair Value Measurements of Derivatives | ||||
ASC 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). However, as permitted under ASC 820, the Company utilizes a mid-market pricing convention (the mid-point price between bid and ask prices) as a practical expedient for valuing the majority of its assets and liabilities measured and reported at fair value. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company primarily applies the market approach for recurring fair value measurements as it believes that the approach is used by market participants for these types of assets and liabilities. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | ||||
The Company values derivative instruments based on daily quoted prices from an independent external pricing service. When external quoted market prices are not available for derivative contracts, the Company uses a valuation model that uses volatility assumptions relating to future energy prices based on specific energy markets and utilizes externally available forward market price curves. All derivative instruments are sensitive to market price fluctuations that can occur on a daily basis. For additional information, see Note 10 Fair Value Measurements. | ||||
Debt Related Costs | ' | |||
Debt Related Costs | ||||
Debt premiums, discounts, expenses and amounts received or incurred to settle hedges are amortized over the life of the related debt for the Company. The premiums and costs associated with reacquired debt are deferred and amortized over the life of the related new issuance, in accordance with ratemaking treatment for PSE. | ||||
Statements of Cash Flows | ' | |||
Statements of Cash Flows | ||||
The Company has refinancing transactions that do not result in an actual exchange of cash. For these transactions, the Company evaluates if the non-exchange of cash is for convenience purposes and if so, the Company considers the transaction as if it had constructively received and disbursed the cash and presents the transaction as gross on the financing section of the statements of cash flows. | ||||
PSE funds cash dividends to pay the shareholder of Puget Energy. | ||||
The following non-cash investing and financing activities have occurred at the Company: | ||||
• | PSE did not incur any capital lease obligations in 2013 or 2012. PSE incurred capital lease obligations of $37.9 million for AMR modules and network in 2011. | |||
The Company revised its Consolidated Statement of Cash Flows due to an immaterial error. Revisions were made in the second quarter ended June 30, 2013 on the Company's Consolidated Statement of Cash Flows to reflect energy efficiency expenditures as operating cash outflows instead of investing cash outflows. The Company determined energy efficiency expenditures should have been classified as operating activities instead of investing activities. These revisions decreased net cash provided by operating activities and decreased net cash used by investing activities. The revision does not affect the net change in cash and cash equivalents for any of the periods, and has no effect on the Company's Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, and Consolidated Statement of Common Shareholder's Equity. The Company has evaluated the effects of these errors and concluded that none of them are material to any of the Company's previously issued quarterly or annual Financial Statements. Nevertheless, the Company has elected to revise the Consolidated Statement of Cash Flows in this report to correct for the effect of these errors and properly reflect the revised values. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Entity Information [Line Items] | ' | |||||||||||||
Schedule of Authorized AFUDC Rates | ' | |||||||||||||
The AFUDC rates authorized by the Washington Commission for natural gas and electric utility plant additions based on the effective dates are as follows: | ||||||||||||||
Effective Date | Washington Commission | |||||||||||||
AFUDC Rates | ||||||||||||||
July 1, 2013 - present | 7.77 | % | ||||||||||||
May 14, 2012 - June 30, 2013 | 7.8 | |||||||||||||
April 8, 2010 - May 13, 2012 | 8.1 | |||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | ' | |||||||||||||
The amounts on prior period Consolidated Statements of Cash Flows that have been revised are summarized below: | ||||||||||||||
As Reported | As Revised | |||||||||||||
Puget Energy | Year Ended December 31, | Year Ended December 31, | ||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Operating Activities: | ||||||||||||||
Regulatory Assets | $ | (64,368 | ) | $ | 30,232 | $ | (170,374 | ) | $ | (64,173 | ) | |||
Net Cash Provided by Operating Activities | $ | 888,691 | $ | 1,010,328 | $ | 782,685 | $ | 915,923 | ||||||
Investing Activities: | ||||||||||||||
Energy Efficiency Expenditures | $ | (106,006 | ) | $ | (94,405 | ) | $ | — | $ | — | ||||
Net Cash Used in Investing Activities | $ | (798,976 | ) | $ | (1,076,815 | ) | $ | (692,970 | ) | $ | (982,410 | ) | ||
As Reported | As Revised | |||||||||||||
Puget Sound Energy | Year Ended December 31, | Year Ended December 31, | ||||||||||||
(Dollars in Thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
Operating Activities: | ||||||||||||||
Regulatory Assets | $ | (64,368 | ) | $ | 29,271 | $ | (170,374 | ) | $ | (65,134 | ) | |||
Net Cash Provided by Operating Activities | $ | 903,888 | $ | 903,422 | $ | 797,882 | $ | 809,017 | ||||||
Investing Activities: | ||||||||||||||
Energy Efficiency Expenditures | $ | (106,006 | ) | $ | (94,405 | ) | $ | — | $ | — | ||||
Net Cash Used in Investing Activities | $ | (778,075 | ) | $ | (1,060,588 | ) | $ | (672,069 | ) | $ | (966,183 | ) | ||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
The following tables set forth the components of the Company’s accumulated other comprehensive income (loss) at: | ||||||||||||||
Puget Energy | December 31, | |||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||
Net unrealized loss on energy derivative instruments | $ | (705 | ) | $ | (742 | ) | ||||||||
Net unrealized loss on interest rate swaps | (94 | ) | (3,022 | ) | ||||||||||
Net unrealized loss and prior service cost on pension plans | 48,514 | (29,065 | ) | |||||||||||
Total Puget Energy, net of tax | $ | 47,715 | $ | (32,829 | ) | |||||||||
Puget Sound Energy | December 31, | |||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||
Net unrealized loss on energy derivative instruments | $ | (2,027 | ) | $ | (4,576 | ) | ||||||||
Net unrealized loss on treasury interest rate swaps | (6,307 | ) | (6,624 | ) | ||||||||||
Net unrealized loss and prior service cost on pension plans | (87,405 | ) | (175,998 | ) | ||||||||||
Total PSE, net of tax | $ | (95,739 | ) | $ | (187,198 | ) | ||||||||
The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) by component for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||
Puget Energy | Net unrealized gain (loss) on interest rate swaps | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | |||||||||||
Changes in AOCI, net of tax | ||||||||||||||
(Dollars in Thousands) | Total | |||||||||||||
Balance at December 31, 2010 | $ | (40,041 | ) | $ | 39,630 | $ | (2,658 | ) | $ | (3,069 | ) | |||
Other comprehensive income (loss) before reclassifications | — | (53,742 | ) | — | (53,742 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 25,442 | (1,083 | ) | 1,545 | 25,904 | |||||||||
Net current-period other comprehensive income (loss) | 25,442 | (54,825 | ) | 1,545 | (27,838 | ) | ||||||||
Balance at December 31, 2011 | $ | (14,599 | ) | $ | (15,195 | ) | $ | (1,113 | ) | $ | (30,907 | ) | ||
Other comprehensive income (loss) before reclassifications | — | (13,574 | ) | — | (13,574 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 11,577 | (296 | ) | 371 | 11,652 | |||||||||
Net current-period other comprehensive income (loss) | 11,577 | (13,870 | ) | 371 | (1,922 | ) | ||||||||
Balance at December 31, 2012 | $ | (3,022 | ) | $ | (29,065 | ) | $ | (742 | ) | $ | (32,829 | ) | ||
Other comprehensive income (loss) before reclassifications | — | 76,004 | — | 76,004 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2,928 | 1,575 | 37 | 4,540 | ||||||||||
Net current-period other comprehensive income (loss) | 2,928 | 77,579 | 37 | 80,544 | ||||||||||
Balance at December 31, 2013 | $ | (94 | ) | $ | 48,514 | $ | (705 | ) | $ | 47,715 | ||||
Puget Sound Energy | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | Net unrealized gain (loss) on treasury interest rate swaps | |||||||||||
Changes in AOCI, net of tax | ||||||||||||||
(Dollars in Thousands) | Total | |||||||||||||
Balance at December 31, 2010 | $ | (115,778 | ) | $ | (34,612 | ) | $ | (7,257 | ) | $ | (157,647 | ) | ||
Other comprehensive income (loss) before reclassifications | (59,468 | ) | — | — | (59,468 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6,542 | 21,678 | 316 | 28,536 | ||||||||||
Net current-period other comprehensive income (loss) | (52,926 | ) | 21,678 | 316 | (30,932 | ) | ||||||||
Balance at December 31, 2011 | $ | (168,704 | ) | $ | (12,934 | ) | $ | (6,941 | ) | $ | (188,579 | ) | ||
Other comprehensive income (loss) before reclassifications | (17,049 | ) | — | — | (17,049 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 9,755 | 8,358 | 317 | 18,430 | ||||||||||
Net current-period other comprehensive income (loss) | (7,294 | ) | 8,358 | 317 | 1,381 | |||||||||
Balance at December 31, 2012 | $ | (175,998 | ) | $ | (4,576 | ) | $ | (6,624 | ) | $ | (187,198 | ) | ||
Other comprehensive income (loss) before reclassifications | 74,969 | — | — | 74,969 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 13,624 | 2,549 | 317 | 16,490 | ||||||||||
Net current-period other comprehensive income (loss) | 88,593 | 2,549 | 317 | 91,459 | ||||||||||
Balance at December 31, 2013 | $ | (87,405 | ) | $ | (2,027 | ) | $ | (6,307 | ) | $ | (95,739 | ) |
Regulation_and_Rates_Tables
Regulation and Rates (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Regulation and Rates [Line Items] | ' | |||||||
Schedule of Allowed Return on the Net Regulatory Assets and Liabilities | ' | |||||||
Below is a chart with the allowed return on the net regulatory assets and liabilities and the associated time periods: | ||||||||
Period | Rate of Return | After-Tax Return | ||||||
July 1, 2013 - present | 7.77% | 6.69% | ||||||
May 14, 2012 - June 30, 2013 | 7.8 | 6.71 | ||||||
April 8, 2010 - May 13, 2012 | 8.1 | 6.9 | ||||||
Schedule of Net Regulatory Assets and Liabilities | ' | |||||||
The net regulatory assets and liabilities at December 31, 2013 and 2012 included the following: | ||||||||
Puget Sound Energy | Remaining Amortization Period | December 31, | ||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||
PGA deferral of unrealized losses on derivative instruments | (a) | $ | 27,555 | $ | 95,953 | |||
Chelan PUD contract initiation | 17.8 years | 126,404 | 133,492 | |||||
Storm damage costs electric | 1 to 5 years | 116,328 | 131,904 | |||||
Environmental remediation | (a) | 57,342 | 66,402 | |||||
Baker Dam licensing operating and maintenance costs | 45 years | 57,270 | 57,644 | |||||
Snoqualmie licensing operating and maintenance costs | 31 years | 10,881 | 7,816 | |||||
Colstrip common property | 10.5 years | 7,479 | 8,195 | |||||
Deferred income taxes | (a) | 146,350 | 119,279 | |||||
Deferred Washington Commission AFUDC | Varies up to 36 years | 55,495 | 55,896 | |||||
Energy conservation costs | 1 to 2 years | 35,987 | 26,940 | |||||
Unamortized loss on reacquired debt | 1 to 22.5 years | 37,832 | 31,399 | |||||
White River relicensing and other costs | (a) | 28,190 | 29,654 | |||||
Mint Farm ownership and operating costs | 11.3 years | 22,320 | 24,321 | |||||
Investment in Bonneville Exchange power contract | 3.5 years | 12,343 | 15,870 | |||||
Ferndale | 5.8 years | 22,811 | 1,789 | |||||
Lower Snake River | 2.3 to 23.3 years | 92,924 | 126,887 | |||||
Snoqualmie | 5.8 years | 8,009 | — | |||||
Property tax tracker | (a) | 22,134 | — | |||||
Various other regulatory assets | Varies | 8,078 | 2,782 | |||||
Total PSE regulatory assets | $ | 895,732 | $ | 936,223 | ||||
Cost of removal | (b) | $ | (269,536 | ) | $ | (239,243 | ) | |
Production tax credits | (c) | (93,618 | ) | (93,618 | ) | |||
PGA payable | 1 year | (5,938 | ) | (32,587 | ) | |||
PCA mechanism | (a) | (5,345 | ) | — | ||||
Decoupling over-collection | (a) | (20,535 | ) | — | ||||
Summit purchase option buy-out | 6.8 years | (10,763 | ) | (12,338 | ) | |||
Deferred gain on Jefferson County sale | (a) | (60,844 | ) | — | ||||
Deferred credit on Biogas sale | 1 year | (10,908 | ) | — | ||||
Deferred credit on gas pipeline capacity | Varies up to 4.8 years | (4,508 | ) | (6,213 | ) | |||
Renewable energy credits | (a) | (5,820 | ) | (11,341 | ) | |||
Treasury grants | 6 to 9 years | (203,889 | ) | (225,573 | ) | |||
Various other regulatory liabilities | Up to 4 years | (5,755 | ) | (7,998 | ) | |||
Total PSE regulatory liabilities | $ | (697,459 | ) | $ | (628,911 | ) | ||
PSE net regulatory assets (liabilities) | $ | 198,273 | $ | 307,312 | ||||
_______________ | ||||||||
(a) | Amortization periods vary depending on timing of underlying transactions or awaiting regulatory approval in a future Washington Commission rate proceeding. | |||||||
(b) | The balance is dependent upon the cost of removal of underlying assets and the life of utility plant. | |||||||
(c) | Amortization will begin once PTCs are utilized by PSE on its tax return. | |||||||
Puget Energy | Remaining Amortization Period | December 31, | ||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||
Total PSE regulatory assets | (a) | $ | 895,732 | $ | 936,223 | |||
Puget Energy acquisition adjustments: | ||||||||
Regulatory assets related to power contracts | 1 to 23 years | 33,753 | 37,655 | |||||
Various other regulatory assets | Varies | 517 | 3,179 | |||||
Total Puget Energy regulatory assets | $ | 930,002 | $ | 977,057 | ||||
Total PSE regulatory liabilities | (a) | $ | (697,459 | ) | $ | (628,911 | ) | |
Puget Energy acquisition adjustments: | ||||||||
Regulatory liabilities related to power contracts | 1 to 38 years | (443,065 | ) | (507,009 | ) | |||
Various other regulatory liabilities | Varies | (2,884 | ) | (4,373 | ) | |||
Total Puget Energy regulatory liabilities | $ | (1,143,408 | ) | $ | (1,140,293 | ) | ||
Puget Energy net regulatory asset (liabilities) | $ | (213,406 | ) | $ | (163,236 | ) | ||
_______________ | ||||||||
(a) | Puget Energy’s regulatory assets and liabilities include purchase accounting adjustments under ASC 805 as a result of the merger. | |||||||
Schedule of Graduated Scale of Rate Adjustment Mechanisms | ' | |||||||
The graduated scale is as follows: | ||||||||
Annual Power Cost Variability | Customers’ Share | Company’s Share | ||||||
+/- $20 million | 0% | 100% | ||||||
+/- $20 million - $40 million | 50% | 50% | ||||||
+/- $40 million - $120 million | 90% | 10% | ||||||
+/- $120 + million | 95% | 5% | ||||||
Electric | ' | |||||||
Regulation and Rates [Line Items] | ' | |||||||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments | ' | |||||||
The following table sets forth electric rate adjustments approved by the Washington Commission and the corresponding impact on PSE’s revenue based on the effective dates: | ||||||||
Type of Rate | Effective Date | Average | Increase (Decrease) | |||||
Adjustment | Percentage | in Revenue | ||||||
Increase (Decrease) | (Dollars in Millions) | |||||||
in Rates | ||||||||
PCORC | 1-Nov-13 | -0.50% | ($10.50) | |||||
Decoupling Rate Filing | 1-Jul-13 | 1 | 21.4 | |||||
Expedited Rate Filing | 1-Jul-13 | 1.5 | 30.7 | |||||
Electric General Rate Case | May 14, 2012, Annual | 3.2 | 63.3 | |||||
Renewable Energy Credit Proceeds | November 1, 2010 - March 31, 2011 | -2.9 | -27.7 | |||||
Gas | ' | |||||||
Regulation and Rates [Line Items] | ' | |||||||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments | ' | |||||||
The following table sets forth natural gas rate adjustments that were approved by the Washington Commission and the corresponding impact to PSE’s annual revenue based on the effective dates: | ||||||||
Type of Rate | Effective Date | Average | Annual | |||||
Adjustment | Percentage | Increase (Decrease) | ||||||
Increase (Decrease) | in Revenue | |||||||
in Rates | (Dollars in Millions) | |||||||
Purchased Gas Adjustment | 1-Nov-13 | 0.40% | $4.00 | |||||
Decoupling Rate Filing | 1-Jul-13 | 1.1 | 10.8 | |||||
Expedited Rate Filing | 1-Jul-13 | -0.2 | -2 | |||||
Purchased Gas Adjustment | 1-Nov-12 | -7.7 | -77 | |||||
Natural Gas General Rate Case | 14-May-12 | 1.3 | 13.4 | |||||
Purchased Gas Adjustment | 1-Nov-11 | -4.3 | -43.5 | |||||
Natural Gas General Tariff Adjustment | 1-Apr-11 | 1.8 | 19 |
Utility_Plant_Tables
Utility Plant (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Utility Plant [Abstract] | ' | |||||||||||||||
Schedule of Utility Plant | ' | |||||||||||||||
Puget Energy | Puget Sound Energy | |||||||||||||||
Utility Plant | Estimated | At December 31, | At December 31, | |||||||||||||
Useful Life | ||||||||||||||||
(Dollars In Thousands) | (Years) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Electric, gas and common utility plant classified by prescribed accounts : | ||||||||||||||||
Distribution plant | Oct-50 | $ | 4,448,451 | $ | 4,276,123 | $ | 6,127,732 | $ | 5,993,055 | |||||||
Production plant | 25-125 | 2,966,223 | 2,480,135 | 3,948,270 | 3,464,528 | |||||||||||
Transmission plant | 45-65 | 1,043,605 | 984,018 | 1,162,929 | 1,108,104 | |||||||||||
General plant | May-35 | 504,965 | 445,982 | 599,156 | 543,195 | |||||||||||
Intangible plant (including capitalized software) | Mar-50 | 316,614 | 181,884 | 309,972 | 181,596 | |||||||||||
Plant acquisition adjustment | 30-Jul | 242,826 | 242,659 | 282,792 | 282,624 | |||||||||||
Underground storage | 25-60 | 27,857 | 27,331 | 41,501 | 40,987 | |||||||||||
Liquefied natural gas storage | 25-45 | 12,622 | 12,622 | 14,492 | 14,492 | |||||||||||
Plant held for future use | NA | 28,742 | 18,416 | 28,895 | 18,568 | |||||||||||
Recoverable Cushion Gas | NA | 8,655 | 8,655 | 8,655 | 8,655 | |||||||||||
Plant not classified | NA | 124,589 | 155,626 | 124,589 | 155,625 | |||||||||||
Capital leases, net of accumulated amortization 1 | 5 | 17,051 | 24,629 | 17,051 | 24,629 | |||||||||||
Less: accumulated provision for depreciation | (1,373,178 | ) | (1,067,424 | ) | (4,297,012 | ) | (4,045,402 | ) | ||||||||
Subtotal | $ | 8,369,022 | $ | 7,790,656 | $ | 8,369,022 | $ | 7,790,656 | ||||||||
Construction work in progress | NA | 310,318 | 766,035 | 310,318 | 766,035 | |||||||||||
Net utility plant | $ | 8,679,340 | $ | 8,556,691 | $ | 8,679,340 | $ | 8,556,691 | ||||||||
_______________ | ||||||||||||||||
1 | Accumulated amortization of capital leases at Puget Energy was $20.8 million in 2013 and $13.3 million in 2012. Accumulated amortization of capital leases at PSE was $20.8 million in 2013 and $13.3 million in 2012. | |||||||||||||||
Schedule of Jointly Owned Utility Plants | ' | |||||||||||||||
These amounts are also included in the Utility Plant table above. | ||||||||||||||||
Puget Energy’s | Puget Sound Energy’s | |||||||||||||||
Share | Share | |||||||||||||||
Jointly Owned Generating Plants | Energy Source (Fuel) | Company’s Ownership Share | Plant in Service at Cost | Accumulated Depreciation | Plant in Service at Cost | Accumulated Depreciation | ||||||||||
(Dollars in Thousands) | ||||||||||||||||
Colstrip Units 1 & 2 | Coal | 50 | % | $ | 162,090 | $ | (20,875 | ) | $ | 297,494 | $ | (156,278 | ) | |||
Colstrip Units 3 & 4 | Coal | 25 | % | 234,984 | (33,270 | ) | 513,992 | (312,278 | ) | |||||||
Colstrip Units 1 – 4 Common Facilities | Coal | various | 83 | (17 | ) | 252 | (185 | ) | ||||||||
Frederickson 1 | Gas | 49.85 | % | 61,785 | (4,255 | ) | 70,719 | (13,189 | ) | |||||||
Schedule of Asset Retirement Obligations | ' | |||||||||||||||
The following table describes all changes to the Company’s ARO liability: | ||||||||||||||||
At December 31, | ||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||||||||
Asset retirement obligation at beginning of period | $ | 45,496 | $ | 26,540 | ||||||||||||
New asset retirement obligation recognized in the period | 350 | 7,737 | ||||||||||||||
Liability settled in the period | (1,188 | ) | (2,960 | ) | ||||||||||||
Revisions in estimated cash flows | 2,769 | 12,632 | ||||||||||||||
Accretion expense | 1,260 | 1,547 | ||||||||||||||
Asset retirement obligation at end of period | $ | 48,687 | $ | 45,496 | ||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ' | |||||||||||||||||||||
Schedule of Long-Term Debt Instruments | ' | |||||||||||||||||||||
(Dollars in Thousands) | At December 31, | |||||||||||||||||||||
Series | Type | Due | 2013 | 2012 | ||||||||||||||||||
Puget Sound Energy: | ||||||||||||||||||||||
6.83% | First Mortgage Bond | 2013 | $ | — | $ | 3,000 | ||||||||||||||||
6.90% | First Mortgage Bond | 2013 | — | 10,000 | ||||||||||||||||||
7.35% | First Mortgage Bond | 2015 | 10,000 | 10,000 | ||||||||||||||||||
7.36% | First Mortgage Bond | 2015 | 2,000 | 2,000 | ||||||||||||||||||
5.20% | Senior Secured Note | 2015 | 150,000 | 150,000 | ||||||||||||||||||
6.75% | Senior Secured Note | 2016 | 250,000 | 250,000 | ||||||||||||||||||
5.50% | Promissory Note 1 | 2017 | 2,412 | 2,412 | ||||||||||||||||||
6.74% | Senior Secured Note | 2018 | 200,000 | 200,000 | ||||||||||||||||||
7.15% | First Mortgage Bond | 2025 | 15,000 | 15,000 | ||||||||||||||||||
7.20% | First Mortgage Bond | 2025 | 2,000 | 2,000 | ||||||||||||||||||
7.02% | Senior Secured Note | 2027 | 300,000 | 300,000 | ||||||||||||||||||
7.00% | Senior Secured Note | 2029 | 100,000 | 100,000 | ||||||||||||||||||
3.90% | Pollution Control Bond | 2031 | 138,460 | — | ||||||||||||||||||
4.00% | Pollution Control Bond | 2031 | 23,400 | — | ||||||||||||||||||
5.00% | Pollution Control Bond | 2031 | — | 138,460 | ||||||||||||||||||
5.10% | Pollution Control Bond | 2031 | — | 23,400 | ||||||||||||||||||
5.48% | Senior Secured Note | 2035 | 250,000 | 250,000 | ||||||||||||||||||
6.72% | Senior Secured Note | 2036 | 250,000 | 250,000 | ||||||||||||||||||
6.27% | Senior Secured Note | 2037 | 300,000 | 300,000 | ||||||||||||||||||
5.76% | Senior Secured Note | 2039 | 350,000 | 350,000 | ||||||||||||||||||
5.80% | Senior Secured Note | 2040 | 325,000 | 325,000 | ||||||||||||||||||
5.76% | Senior Secured Note | 2040 | 250,000 | 250,000 | ||||||||||||||||||
4.43% | Senior Secured Note | 2041 | 250,000 | 250,000 | ||||||||||||||||||
5.64% | Senior Secured Note | 2041 | 300,000 | 300,000 | ||||||||||||||||||
4.70% | Senior Secured Note | 2051 | 45,000 | 45,000 | ||||||||||||||||||
6.97% | Junior Subordinated Note | 2067 | 250,000 | 250,000 | ||||||||||||||||||
Unamortized discount on senior notes | (14 | ) | (14 | ) | ||||||||||||||||||
PSE long-term debt | $ | 3,763,258 | $ | 3,776,258 | ||||||||||||||||||
Puget Energy: | ||||||||||||||||||||||
Fair value adjustment of PSE long-term debt | $ | (229,746 | ) | $ | (264,017 | ) | ||||||||||||||||
Credit Facility | 2017 | 299,000 | 434,000 | |||||||||||||||||||
6.50% | Senior Secured Note | 2020 | 450,000 | 450,000 | ||||||||||||||||||
6.00% | Senior Secured Note | 2021 | 500,000 | 500,000 | ||||||||||||||||||
5.63% | Senior Secured Note | 2022 | 450,000 | 450,000 | ||||||||||||||||||
Unamortized discount on senior notes | (36 | ) | (41 | ) | ||||||||||||||||||
Total Puget Energy long-term debt | $ | 5,232,476 | $ | 5,346,200 | ||||||||||||||||||
_______________ | ||||||||||||||||||||||
1 | Puget Western, Inc., a wholly owned subsidiary of PSE, Promissory Note. | |||||||||||||||||||||
Schedule of Maturities of Long-Term Debt | ' | |||||||||||||||||||||
The principal amounts of long-term debt maturities for the next five years and thereafter are as follows: | ||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Maturities of: | ||||||||||||||||||||||
PSE long-term debt | $ | — | $ | 162,000 | $ | 250,000 | $ | 2,412 | $ | 200,000 | $ | 3,148,860 | $ | 3,763,272 | ||||||||
Puget Energy long-term debt | — | — | — | 299,000 | — | 1,400,000 | 1,699,000 | |||||||||||||||
Puget Energy long-term debt | $ | — | $ | 162,000 | $ | 250,000 | $ | 301,412 | $ | 200,000 | $ | 4,548,860 | $ | 5,462,272 | ||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Leases [Abstract] | ' | ||||||
Schedule of Operating Lease Expense | ' | ||||||
Operating lease expenses net of sublease receipts were: | |||||||
(Dollars in Thousands) | |||||||
At December 31, | |||||||
2013 | $ | 29,392 | |||||
2012 | 29,661 | ||||||
2011 | 24,789 | ||||||
Schedule of Future Minimum Lease Payments for Non-cancellable Leases | ' | ||||||
Future minimum lease payments for non-cancelable leases net of sublease receipts are: | |||||||
(Dollars in Thousands) | |||||||
At December 31, | Operating | Capital | |||||
2014 | $ | 16,603 | $ | 8,160 | |||
2015 | 16,963 | 8,160 | |||||
2016 | 18,922 | 2,718 | |||||
2017 | 18,852 | — | |||||
2018 | 16,051 | — | |||||
Thereafter | 68,847 | — | |||||
Total minimum lease payments | $ | 156,238 | $ | 19,038 | |||
Accounting_for_Derivative_Inst1
Accounting for Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Schedule of Credit Risk Related Contingent Features [Table Text Block] | ' | ||||||||||||||||||
The table below presents the fair value of the overall contractual contingent liability positions for the Company's derivative activity at December 31, 2013: | |||||||||||||||||||
Puget Energy and Puget Sound Energy | Fair Value 1 | Posted | Contingent | ||||||||||||||||
Contingent Feature | Liability | Collateral | Collateral | ||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||
Credit rating 2 | $ | (12,561 | ) | $ | — | $ | 12,561 | ||||||||||||
Requested credit for adequate assurance | (22,415 | ) | — | — | |||||||||||||||
Forward value of contract 3 | (49 | ) | — | — | |||||||||||||||
Total | $ | (35,025 | ) | $ | — | $ | 12,561 | ||||||||||||
__________ | |||||||||||||||||||
1 | Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. | ||||||||||||||||||
2 | Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. | ||||||||||||||||||
3 | Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. | ||||||||||||||||||
Offsetting Assets and Liabilities [Table Text Block] | ' | ||||||||||||||||||
The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: | |||||||||||||||||||
Puget Energy and Puget Sound Energy | |||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||
(Dollars in Thousands) | Gross Amounts Recognized in the Statement of Financial Position 1 | Gross Amounts Offset in the Statement of Financial Position | Net of Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||
Commodity Contracts | Cash Collateral Received/Posted | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||
Energy Derivative Contracts | $ | 26,600 | $ | — | $ | 26,600 | $ | (19,491 | ) | $ | — | $ | 7,109 | ||||||
Liabilities | |||||||||||||||||||
Energy Derivative Contracts | $ | 72,988 | $ | — | $ | 72,988 | $ | (19,491 | ) | $ | — | $ | 53,497 | ||||||
Interest Rate Swaps 2 | $ | 13,223 | $ | — | $ | 13,223 | $ | — | $ | — | $ | 13,223 | |||||||
Puget Energy and Puget Sound Energy | |||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||
(Dollars in Thousands) | Gross Amounts Recognized in the Statement of Financial Position 1 | Gross Amounts Offset in the Statement of Financial Position | Net of Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||
Commodity Contracts | Cash Collateral Received/Posted | Net Amount | |||||||||||||||||
Assets | |||||||||||||||||||
Energy Derivative Contracts | $ | 21,683 | $ | — | $ | 21,683 | $ | (14,126 | ) | $ | — | $ | 7,557 | ||||||
Liabilities | |||||||||||||||||||
Energy Derivative Contracts | $ | 239,271 | $ | — | $ | 239,271 | $ | (14,126 | ) | $ | — | $ | 225,145 | ||||||
Interest Rate Swaps 2 | $ | 21,524 | $ | — | $ | 21,524 | $ | — | $ | — | $ | 21,524 | |||||||
___________ | |||||||||||||||||||
1. | All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of Offset. | ||||||||||||||||||
2 | Interest Rate Swap Contracts are only held at Puget Energy. | ||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | ' | ||||||||||||||||||
The following table presents the volumes, fair values and locations of the Company's derivative instruments recorded on the balance sheets: | |||||||||||||||||||
Puget Energy and | Year Ended December 31, | ||||||||||||||||||
Puget Sound Energy | |||||||||||||||||||
(Dollars in Thousands) | Volumes (millions) | Assets 1 | Liabilities 2 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Interest rate swap derivatives 3 | $450.00 | $450.00 | $ | — | $ | — | $ | 13,223 | $ | 21,524 | |||||||||
Electric portfolio derivatives | * | * | 18,479 | 9,557 | 37,312 | 131,193 | |||||||||||||
Natural gas derivatives (MMBtus) 4 | 423.5 | 516.9 | 8,121 | 12,126 | 35,676 | 108,078 | |||||||||||||
Total derivative contracts | $ | 26,600 | $ | 21,683 | $ | 86,211 | $ | 260,795 | |||||||||||
Current | $ | 18,867 | $ | 6,869 | $ | 48,049 | $ | 177,519 | |||||||||||
Long-term | 7,733 | 14,814 | 38,162 | 83,276 | |||||||||||||||
Total derivative contracts | $ | 26,600 | $ | 21,683 | $ | 86,211 | $ | 260,795 | |||||||||||
___________ | |||||||||||||||||||
1 | Balance sheet location: Current and Long-term Unrealized gain on derivative instruments. | ||||||||||||||||||
2 | Balance sheet location: Current and Long-term Unrealized loss on derivative instruments. | ||||||||||||||||||
3 | Interest rate swap contracts are only held at Puget Energy. | ||||||||||||||||||
4 | PSE had a net derivative liability and an offsetting regulatory asset of $27.6 million at December 31, 2013 and $96.0 million at December 31, 2012 related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, due to the PGA mechanism. | ||||||||||||||||||
* | Electric portfolio derivatives consist of electric generation fuel of 145.6 million One Million British Thermal Units (MMBtus) and purchased electricity of 8.6 million MWhs at December 31, 2013 and 129.7 million MMBtus and 10.7 million MWhs at December 31, 2012. | ||||||||||||||||||
Parent Company [Member] | ' | ||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | ||||||||||||||||||
The following tables present the effect and locations of the Company's derivatives not designated as hedging instruments, recorded on the statements of income: | |||||||||||||||||||
Puget Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Other deductions | $ | 2,420 | $ | (4,288 | ) | $ | (28,601 | ) | ||||||||||
Interest expense | (5,904 | ) | (29,727 | ) | (46,045 | ) | |||||||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Unrealized gain (loss) on derivative instruments, net 1 | 102,744 | 131,407 | (23,171 | ) | ||||||||||||||
Electric generation fuel | (27,008 | ) | (66,762 | ) | (98,208 | ) | |||||||||||||
Purchased electricity | (38,299 | ) | (138,551 | ) | (66,845 | ) | |||||||||||||
Total gain (loss) recognized in income on derivatives | $ | 33,953 | $ | (107,921 | ) | $ | (262,870 | ) | |||||||||||
___________ | |||||||||||||||||||
1 | For 2012 and 2011, the amounts differ from the amounts stated in the statements of income as they do not include amortization related to contracts that were recorded at fair value at the time of the February 2009 merger and subsequently designated as NPNS of $2.2 million for the year ended December 31, 2012 and $11.7 million for the year ended December 31, 2011. | ||||||||||||||||||
PUGET SOUND ENERGY, INC. | ' | ||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||
Puget Sound Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Interest expense | $ | (488 | ) | $ | (488 | ) | $ | (488 | ) | |||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Electric generation fuel | — | 97 | (20,625 | ) | ||||||||||||||
Purchased electricity | (3,922 | ) | (12,955 | ) | (12,726 | ) | |||||||||||||
Total | $ | (4,410 | ) | $ | (13,346 | ) | $ | (33,839 | ) | ||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | ||||||||||||||||||
Puget Sound Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Unrealized gain (loss) on derivative instruments, net | $ | 98,880 | $ | 119,120 | $ | (54,146 | ) | |||||||||||
Electric generation fuel | (27,008 | ) | (66,762 | ) | (98,208 | ) | |||||||||||||
Purchased electricity | (38,299 | ) | (138,551 | ) | (66,845 | ) | |||||||||||||
Total gain (loss) recognized in income on derivatives | $ | 33,573 | $ | (86,193 | ) | $ | (219,199 | ) | |||||||||||
PUGET ENERGY | ' | ||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||
The following tables present the Company's pre-tax gain (loss) on derivatives that were previously in a cash flow hedge relationship, and subsequently reclassified out of accumulated OCI into income: | |||||||||||||||||||
Puget Energy | Year Ended December 31, | ||||||||||||||||||
(Dollars in Thousands) | Location | 2013 | 2012 | 2011 | |||||||||||||||
Interest rate contracts: | Interest expense | $ | (4,505 | ) | $ | (17,811 | ) | $ | (39,143 | ) | |||||||||
Commodity contracts: | |||||||||||||||||||
Electric derivatives | Electric generation fuel | — | 100 | (679 | ) | ||||||||||||||
Purchased electricity | (57 | ) | (671 | ) | (1,698 | ) | |||||||||||||
Total | $ | (4,562 | ) | $ | (18,382 | ) | $ | (41,520 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||||||
The following table presents the carrying value for cash, cash equivalents, restricted cash, notes receivable and short-term debt by level, within the fair value hierarchy. The carrying values below are representative of fair values due to the short-term nature of these financial instruments. | ||||||||||||||||||||||||||||
Puget Energy | Carrying / Fair Value | Carrying / Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 44,302 | $ | — | $ | 44,302 | $ | 135,542 | $ | — | $ | 135,542 | ||||||||||||||||
Restricted Cash | 7,171 | — | 7,171 | 3,700 | — | 3,700 | ||||||||||||||||||||||
Notes Receivable and Other | — | 53,449 | 53,449 | — | 63,802 | 63,802 | ||||||||||||||||||||||
Total assets | $ | 51,473 | $ | 53,449 | $ | 104,922 | $ | 139,242 | $ | 63,802 | $ | 203,044 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Total liabilities | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information | ' | |||||||||||||||||||||||||||
The fair value of the junior subordinated and long-term notes were estimated using the discounted cash flow method with U.S. Treasury yields and Company credit spreads as inputs, interpolating to the maturity date of each issue. Carrying values and estimated fair values were as follows: | ||||||||||||||||||||||||||||
Puget Energy | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Junior subordinated notes | 2 | $ | 250,000 | $ | 269,366 | $ | 250,000 | $ | 264,842 | |||||||||||||||||||
Long-term debt (fixed-rate), net of discount | 2 | 4,683,476 | 5,594,314 | 4,662,200 | 6,197,179 | |||||||||||||||||||||||
Long-term debt (variable-rate) | 2 | 299,000 | 299,000 | 434,000 | 434,000 | |||||||||||||||||||||||
Total | $ | 5,232,476 | $ | 6,162,680 | $ | 5,346,200 | $ | 6,896,021 | ||||||||||||||||||||
Puget Sound Energy | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Junior subordinated notes | 2 | $ | 250,000 | $ | 269,366 | $ | 250,000 | $ | 264,842 | |||||||||||||||||||
Long-term debt (fixed-rate), net of discount | 2 | 3,513,258 | 4,038,455 | 3,526,258 | 4,628,509 | |||||||||||||||||||||||
Total | $ | 3,763,258 | $ | 4,307,821 | $ | 3,776,258 | $ | 4,893,351 | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||||||||||||||
Puget Energy and | Year Ended December 31, | |||||||||||||||||||||||||||
Puget Sound Energy | ||||||||||||||||||||||||||||
Level 3 Roll-Forward Net (Liability) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
(Dollars in Thousands) | Electric | Gas | Total | Electric | Gas | Total | Electric | Gas | Total | |||||||||||||||||||
Balance at beginning of period | $ | (33,924 | ) | $ | (1,602 | ) | $ | (35,526 | ) | $ | (90,311 | ) | $ | (5,041 | ) | $ | (95,352 | ) | $ | (87,436 | ) | $ | (3,859 | ) | $ | (91,295 | ) | |
Changes during period | ||||||||||||||||||||||||||||
Realized and unrealized energy derivatives: | ||||||||||||||||||||||||||||
Included in earnings 1 | (10,491 | ) | — | (10,491 | ) | (21,362 | ) | — | (21,362 | ) | (56,499 | ) | — | (56,499 | ) | |||||||||||||
Included in regulatory assets / liabilities | — | (945 | ) | (945 | ) | — | (1,937 | ) | (1,937 | ) | — | (250 | ) | (250 | ) | |||||||||||||
Settlements 2 | 11,609 | (754 | ) | 10,855 | 59,133 | 969 | 60,102 | 40,900 | (3,418 | ) | 37,482 | |||||||||||||||||
Transferred into Level 3 | (7,799 | ) | — | (7,799 | ) | (55,548 | ) | (297 | ) | (55,845 | ) | (759 | ) | 453 | (306 | ) | ||||||||||||
Transferred out of Level 3 | 25,184 | 2,940 | 28,124 | 74,164 | 4,704 | 78,868 | 13,483 | 2,033 | 15,516 | |||||||||||||||||||
Balance at end of period | $ | (15,421 | ) | $ | (361 | ) | $ | (15,782 | ) | $ | (33,924 | ) | $ | (1,602 | ) | $ | (35,526 | ) | $ | (90,311 | ) | $ | (5,041 | ) | $ | (95,352 | ) | |
_______________ | ||||||||||||||||||||||||||||
1 | Income Statement location: Unrealized (gain) loss on derivative instruments, net. Includes unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $(13.4) million, $(15.2) million, and $(55.2) million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||
2 | The Company had no purchases, sales or issuances during the reported periods. | |||||||||||||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Table Text Block] | ' | |||||||||||||||||||||||||||
Below are significant unobservable inputs used in estimating the long-term power purchase contracts' fair value of $484.1 million on June 30, 2013: | ||||||||||||||||||||||||||||
Valuation Technique | Unobservable Input | Low | High | Weighted Average | ||||||||||||||||||||||||
Discounted cash flow | Power prices | $30.85 per MWh | $65.35 per MWh | $48.47 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $389 per yr | $6,845 per yr | $4,110 per yr | ||||||||||||||||||||||||
Below are the forward price ranges for the Company's purchased commodity contracts, as of December 31, 2013: | ||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Fair Value | Range | |||||||||||||||||||||||||||
Derivative Instrument | Assets 1 | Liabilities 1 | Valuation Technique | Unobservable Input | Low | High | Weighted Average | |||||||||||||||||||||
Electric | $3,818 | $19,239 | Discounted cash flow | Power Prices | $17.06 per MWh | $47.09 per MWh | $38.74 per MWh | |||||||||||||||||||||
Natural gas | $2,673 | $3,034 | Discounted cash flow | Natural Gas Prices | $3.62 per MMBtu | $4.19 per MMBtu | $3.78 per MMBtu | |||||||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. | |||||||||||||||||||||||||||
Below are significant unobservable inputs used in estimating the long-term power purchase contracts' fair value on March 31, 2012 and December 31, 2012: | ||||||||||||||||||||||||||||
Valuation Technique | Unobservable Input | Low | High | Weighted Average | ||||||||||||||||||||||||
March 31, 2012 | ||||||||||||||||||||||||||||
Discounted cash flow | Power prices | $10.36 per MWh | $49.78 per MWh | $34.98 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $3,185 per qtr | $5,030 per qtr | $4,663 per qtr | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Discounted cash flow | Power prices | $16.94 per MWh | $70.89 per MWh | $49.40 per MWh | ||||||||||||||||||||||||
Discounted cash flow | Power contract costs (in thousands) | $1,777 per qtr | $7,133 per qtr | $6,603 per qtr | ||||||||||||||||||||||||
Fair Value, Measurements, Recurring | ' | |||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||||||
The following tables present the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis and the reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: | ||||||||||||||||||||||||||||
Puget Energy | Fair Value | Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Interest rate derivative instruments | $ | 13,223 | $ | — | $ | 13,223 | $ | 21,524 | $ | — | $ | 21,524 | ||||||||||||||||
Total derivative liabilities | $ | 13,223 | $ | — | $ | 13,223 | $ | 21,524 | $ | — | $ | 21,524 | ||||||||||||||||
Puget Energy and | Fair Value | Fair Value | ||||||||||||||||||||||||||
Puget Sound Energy | At December 31, 2013 | At December 31, 2012 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Electric derivative instruments | $ | 14,661 | $ | 3,818 | $ | 18,479 | $ | 1,259 | $ | 8,298 | $ | 9,557 | ||||||||||||||||
Natural gas derivative instruments | 5,448 | 2,673 | 8,121 | 6,769 | 5,357 | 12,126 | ||||||||||||||||||||||
Total assets | $ | 20,109 | $ | 6,491 | $ | 26,600 | $ | 8,028 | $ | 13,655 | $ | 21,683 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Electric derivative instruments | $ | 18,073 | $ | 19,239 | $ | 37,312 | $ | 88,971 | $ | 42,221 | $ | 131,192 | ||||||||||||||||
Natural gas derivative instruments | 32,642 | 3,034 | 35,676 | 101,119 | 6,960 | 108,079 | ||||||||||||||||||||||
Total liabilities | $ | 50,715 | $ | 22,273 | $ | 72,988 | $ | 190,090 | $ | 49,181 | $ | 239,271 | ||||||||||||||||
PUGET SOUND ENERGY, INC. | ' | |||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||||||
Puget Sound Energy | Carrying / Fair Value | Carrying / Fair Value | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 44,111 | $ | — | $ | 44,111 | $ | 135,530 | $ | — | $ | 135,530 | ||||||||||||||||
Restricted Cash | 7,171 | — | 7,171 | 3,700 | — | 3,700 | ||||||||||||||||||||||
Notes Receivable and Other | — | 53,449 | 53,449 | — | 63,802 | 63,802 | ||||||||||||||||||||||
Total assets | $ | 51,282 | $ | 53,449 | $ | 104,731 | $ | 139,230 | $ | 63,802 | $ | 203,032 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Short-term debt | $ | 162,000 | $ | — | $ | 162,000 | $ | 181,000 | $ | — | $ | 181,000 | ||||||||||||||||
Short-term debt owed to parent | — | 29,598 | 29,598 | — | 29,598 | 29,598 | ||||||||||||||||||||||
Total liabilities | $ | 162,000 | $ | 29,598 | $ | 191,598 | $ | 181,000 | $ | 29,598 | $ | 210,598 | ||||||||||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations | ' | |||||||||||||||||||||||||||
The following tables summarize the Company’s change in benefit obligation, change in plan assets and amounts recognized in the Statements of Financial Position for the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 616,290 | $ | 565,997 | $ | 51,795 | $ | 48,370 | $ | 17,672 | $ | 16,436 | ||||||||||||||||
Service cost | 19,285 | 16,926 | 1,498 | 1,073 | 134 | 139 | ||||||||||||||||||||||
Interest cost | 24,754 | 25,986 | 2,045 | 2,152 | 664 | 751 | ||||||||||||||||||||||
Amendment | — | — | 478 | (122 | ) | — | — | |||||||||||||||||||||
Actuarial loss/(gain) | (48,559 | ) | 40,914 | (1,687 | ) | 5,483 | (2,240 | ) | 1,199 | |||||||||||||||||||
Benefits paid | (38,453 | ) | (33,533 | ) | (6,850 | ) | (5,161 | ) | (1,536 | ) | (1,523 | ) | ||||||||||||||||
Medicare part D subsidy received | — | — | — | — | 245 | 670 | ||||||||||||||||||||||
Benefit obligation at end of period | $ | 573,317 | $ | 616,290 | $ | 47,279 | $ | 51,795 | $ | 14,939 | $ | 17,672 | ||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets | ' | |||||||||||||||||||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 531,183 | $ | 479,786 | $ | — | $ | — | $ | 7,541 | $ | 7,206 | ||||||||||||||||
Actual return on plan assets | 102,591 | 62,130 | — | — | 1,861 | 1,100 | ||||||||||||||||||||||
Employer contribution | 20,400 | 22,800 | 6,850 | 5,161 | 908 | 758 | ||||||||||||||||||||||
Benefits paid | (38,453 | ) | (33,533 | ) | (6,850 | ) | (5,161 | ) | (1,536 | ) | (1,523 | ) | ||||||||||||||||
Fair value of plan assets at end of period | $ | 615,721 | $ | 531,183 | $ | — | $ | — | $ | 8,774 | $ | 7,541 | ||||||||||||||||
Funded status at end of period | $ | 42,404 | $ | (85,107 | ) | $ | (47,279 | ) | $ | (51,795 | ) | $ | (6,165 | ) | $ | (10,131 | ) | |||||||||||
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income | ' | |||||||||||||||||||||||||||
Puget Energy and | Qualified | SERP | Other | |||||||||||||||||||||||||
Puget Sound Energy | Pension Benefits | Pension Benefits | Benefits | |||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Statement of Financial Position consist of: | ||||||||||||||||||||||||||||
Noncurrent assets | $ | 42,404 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Current liabilities | — | — | (3,981 | ) | (5,040 | ) | (421 | ) | (460 | ) | ||||||||||||||||||
Noncurrent liabilities | — | (85,107 | ) | (43,298 | ) | (46,755 | ) | (5,744 | ) | (9,671 | ) | |||||||||||||||||
Net assets / (liabilities) | $ | 42,404 | $ | (85,107 | ) | $ | (47,279 | ) | $ | (51,795 | ) | $ | (6,165 | ) | $ | (10,131 | ) | |||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 19,285 | $ | 16,926 | $ | 15,822 | $ | 1,498 | $ | 1,073 | $ | 1,241 | $ | 134 | $ | 139 | $ | 113 | ||||||||||
Interest cost | 24,754 | 25,986 | 26,263 | 2,045 | 2,152 | 2,192 | 664 | 751 | 806 | |||||||||||||||||||
Expected return on plan assets | (39,095 | ) | (36,203 | ) | (35,344 | ) | — | — | — | (436 | ) | (435 | ) | (502 | ) | |||||||||||||
Amortization of prior service cost/(credit) | (1,980 | ) | (1,980 | ) | (1,980 | ) | (17 | ) | — | — | — | — | — | |||||||||||||||
Amortization of net loss | 2,889 | 768 | — | 1,461 | 702 | 360 | 69 | 53 | (46 | ) | ||||||||||||||||||
Net periodic benefit cost | $ | 5,853 | $ | 5,497 | $ | 4,761 | $ | 4,987 | $ | 3,927 | $ | 3,793 | $ | 431 | $ | 508 | $ | 371 | ||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (112,055 | ) | $ | 14,988 | $ | (1,687 | ) | $ | 5,483 | $ | (3,665 | ) | $ | 534 | |||||||||||||
Amortization of net loss/(gain) | (2,889 | ) | (768 | ) | (1,461 | ) | (703 | ) | (70 | ) | (53 | ) | ||||||||||||||||
Prior service credit | — | — | 478 | (122 | ) | — | — | |||||||||||||||||||||
Amortization of prior service credit | 1,980 | 1,980 | 17 | — | — | — | ||||||||||||||||||||||
Total change in other comprehensive income for year | $ | (112,964 | ) | $ | 16,200 | $ | (2,653 | ) | $ | 4,658 | $ | (3,735 | ) | $ | 481 | |||||||||||||
Schedule of Assumptions Used | ' | |||||||||||||||||||||||||||
In accounting for pension and other benefit obligations and costs under the plans, the following weighted-average actuarial assumptions were used by the Company: | ||||||||||||||||||||||||||||
Qualified | SERP | Other | ||||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
Benefit Obligation Assumptions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate 1 | 5.1 | % | 4.15 | % | 4.75 | % | 5.1 | % | 4.15 | % | 4.75 | % | 5.1 | % | 4.15 | % | 4.75 | % | ||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||
Medical trend rate | — | — | — | — | — | — | 6.8 | % | 7.5 | % | 7.5 | % | ||||||||||||||||
Benefit Cost Assumptions | ||||||||||||||||||||||||||||
Discount rate | 4.15 | % | 4.75 | % | 5.15 | % | 4.15 | % | 4.75 | % | 5.15 | % | 4.15 | % | 4.75 | % | 5.15 | % | ||||||||||
Rate of plan assets | 7.75 | % | 7.75 | % | 7.75 | % | — | — | — | 6.9 | % | 7.5 | % | 7.8 | % | |||||||||||||
Rate of compensation increase | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | 4.5 | % | ||||||||||
Medical trend rate | — | — | — | — | — | — | 8.2 | % | 7.5 | % | 8 | % | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | The Company calculates the present value of the pension liability using a discount rate of 5.10% which represents the single-rate equivalent of the AA rated corporate bond yield curve. | |||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||||||||
A 1.0% change in the assumed medical inflation rate would have the following effects: | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||||||||||||||
Effect on post-retirement benefit obligation | $ | 66 | $ | (66 | ) | $ | 92 | $ | (92 | ) | ||||||||||||||||||
Effect on service and interest cost components | 3 | (3 | ) | 4 | (4 | ) | ||||||||||||||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||||||||||||||||
The expected total benefits to be paid under the next five years and the aggregate total to be paid for the five years thereafter are as follows: | ||||||||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | ||||||||||||||||||||||
Qualified Pension total benefits | $ | 40,000 | $ | 40,200 | $ | 40,200 | $ | 41,100 | $ | 42,300 | $ | 226,900 | ||||||||||||||||
SERP Pension total benefits | 3,981 | 1,985 | 2,541 | 1,900 | 5,177 | 18,392 | ||||||||||||||||||||||
Other Benefits total with Medicare Part D subsidy | 1,222 | 1,193 | 1,242 | 1,197 | 1,149 | 6,276 | ||||||||||||||||||||||
Other Benefits total without Medicare Part D subsidy | 1,604 | 1,591 | 1,555 | 1,519 | 1,479 | 6,709 | ||||||||||||||||||||||
Schedule of Allocation of Plan Assets | ' | |||||||||||||||||||||||||||
To obtain the desired return needed to fund the pension benefit plans, the Retirement Plan Committee has established investment allocation percentages by asset classes as follows: | ||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||
Asset Class | Minimum | Target | Maximum | |||||||||||||||||||||||||
Domestic large cap equity | 25% | 31% | 40% | |||||||||||||||||||||||||
Domestic small cap equity | 0% | 9% | 15% | |||||||||||||||||||||||||
Non-U.S. equity | 10% | 25% | 30% | |||||||||||||||||||||||||
Fixed income | 15% | 25% | 30% | |||||||||||||||||||||||||
Real estate | 0% | 0% | 10% | |||||||||||||||||||||||||
Absolute return | 5% | 10% | 15% | |||||||||||||||||||||||||
Cash | 0% | 0% | 5% | |||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the qualified pension plan as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||
Recurring Fair Value Measures | Recurring Fair Value Measures | |||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||
Non-US equity 1 | $ | 76,188 | $ | 78,816 | $ | — | $ | 155,004 | $ | 56,717 | $ | 49,304 | $ | — | $ | 106,021 | ||||||||||||
Domestic large cap equity 2 | 157,874 | 35,851 | — | 193,725 | 136,994 | 28,890 | — | 165,884 | ||||||||||||||||||||
Domestic small cap equity 3 | 62,867 | — | — | 62,867 | 51,264 | — | — | 51,264 | ||||||||||||||||||||
Total equities | 296,929 | 114,667 | — | 411,596 | 244,975 | 78,194 | — | 323,169 | ||||||||||||||||||||
Tactical asset allocation 4 | — | — | — | — | — | 26,425 | — | 26,425 | ||||||||||||||||||||
Fixed income securities 5 | 135,007 | — | — | 135,007 | 119,939 | — | — | 119,939 | ||||||||||||||||||||
Absolute return 6 | — | — | 62,278 | 62,278 | — | — | 55,615 | 55,615 | ||||||||||||||||||||
Cash and cash equivalents 7 | — | 7,054 | — | 7,054 | — | 6,019 | — | 6,019 | ||||||||||||||||||||
Subtotal | $ | 431,936 | $ | 121,721 | $ | 62,278 | $ | 615,935 | $ | 364,914 | $ | 110,638 | $ | 55,615 | $ | 531,167 | ||||||||||||
Net (payable) receivable | (417 | ) | (173 | ) | ||||||||||||||||||||||||
Accrued income | 203 | 189 | ||||||||||||||||||||||||||
Total assets | $ | 615,721 | $ | 531,183 | ||||||||||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
1 | Non – US Equity investments are comprised of a (1) mutual fund; and a (2) commingled fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||
2 | Domestic large cap equity investments are comprised of (1) common stock, and a (2) commingled fund. Investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||
3 | Domestic small cap equity investments are comprised of (1) common stock and a (2) mutual fund. The investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||
4 | The tactical asset allocation investment is comprised of a commingled fund, which is valued at the net asset value per share multiplied by the number of shares held as of the measurement date. | |||||||||||||||||||||||||||
5 | Fixed income securities consist of a mutual fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||
6 | As of December 31, 2013 absolute return investments consist of two partnerships. The partnerships are valued using the financial reports as of December 31, 2013. These investments are a Level 3 under ASC 820 because the significant valuation inputs are primarily internal to the partnerships with little third party involvement. | |||||||||||||||||||||||||||
7 | The investment consists of a money market fund, which is valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. | |||||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Other Benefits plan assets which consist of insurance benefits for retired employees, at fair value: | ||||||||||||||||||||||||||||
Recurring Fair Value Measures | Recurring Fair Value Measures | |||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Mutual fund 1 | $ | 8,703 | $ | — | $ | 8,703 | $ | 7,472 | $ | — | $ | 7,472 | ||||||||||||||||
Cash equivalents 2 | — | 71 | 71 | — | 69 | 69 | ||||||||||||||||||||||
Total assets | $ | 8,703 | $ | 71 | $ | 8,774 | $ | 7,472 | $ | 69 | $ | 7,541 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
1 | This is a publicly traded balanced mutual fund. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. The fair value is determined by taking the number of shares owned by the plan, and multiplying by the market price as of December 31, 2013. | |||||||||||||||||||||||||||
2 | This is a money market fund. The money market fund investments are valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. | |||||||||||||||||||||||||||
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | ' | |||||||||||||||||||||||||||
Level 3 Roll-Forward | ||||||||||||||||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of the plan’s Level 3 assets: | ||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||
(Dollars in Thousands) | Partnership | Mutual Funds | Total | Partnership | Mutual Funds | Total | ||||||||||||||||||||||
Balance at beginning of year | $ | 55,614 | $ | — | $ | 55,614 | $ | 45,319 | $ | — | $ | 45,319 | ||||||||||||||||
Additional investments | — | — | — | 7,021 | — | 7,021 | ||||||||||||||||||||||
Distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Realized losses on distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Unrealized gains relating to instruments still held at the reporting date | 6,664 | — | 6,664 | 3,274 | — | 3,274 | ||||||||||||||||||||||
Transferred out of level 3 1 | — | — | — | — | — | — | ||||||||||||||||||||||
Balance at end of year | $ | 62,278 | $ | — | $ | 62,278 | $ | 55,614 | $ | — | $ | 55,614 | ||||||||||||||||
_________________ | ||||||||||||||||||||||||||||
1 | The plan had no transfers between level 2 and level 1 during the years ended December 31, 2013 or 2012. | |||||||||||||||||||||||||||
PUGET ENERGY | ' | |||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income | ' | |||||||||||||||||||||||||||
Puget Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income consist of: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (65,943 | ) | $ | 49,001 | $ | 9,670 | $ | 12,818 | $ | (2,972 | ) | $ | 763 | ||||||||||||||
Prior service cost / (credit) | (15,762 | ) | (17,741 | ) | 373 | (122 | ) | — | — | |||||||||||||||||||
Total | $ | (81,705 | ) | $ | 31,260 | $ | 10,043 | $ | 12,696 | $ | (2,972 | ) | $ | 763 | ||||||||||||||
PUGET SOUND ENERGY, INC. | ' | |||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income | ' | |||||||||||||||||||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income consist of: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | 138,324 | $ | 269,401 | $ | 14,050 | $ | 17,928 | $ | (5,556 | ) | $ | (2,175 | ) | ||||||||||||||
Prior service cost/(credit) | (12,525 | ) | (14,098 | ) | 383 | (110 | ) | 6 | 36 | |||||||||||||||||||
Total | $ | 125,799 | $ | 255,303 | $ | 14,433 | $ | 17,818 | $ | (5,550 | ) | $ | (2,139 | ) | ||||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||||||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefits | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 19,285 | $ | 16,926 | $ | 15,822 | $ | 1,498 | $ | 1,073 | $ | 1,241 | $ | 134 | $ | 139 | $ | 113 | ||||||||||
Interest cost | 24,753 | 25,986 | 26,263 | 2,045 | 2,152 | 2,192 | 664 | 751 | 806 | |||||||||||||||||||
Expected return on plan assets | (40,685 | ) | (41,533 | ) | (44,128 | ) | — | — | — | (436 | ) | (435 | ) | (502 | ) | |||||||||||||
Amortization of prior service cost/(credit) | (1,573 | ) | (1,573 | ) | (1,573 | ) | (16 | ) | 293 | 563 | 30 | 35 | 63 | |||||||||||||||
Amortization of net loss/(gain) | 20,612 | 15,015 | 10,250 | 2,191 | 1,432 | 1,194 | (284 | ) | (245 | ) | (481 | ) | ||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | — | — | 50 | 50 | |||||||||||||||||||
Net periodic benefit cost | $ | 22,392 | $ | 14,821 | $ | 6,634 | $ | 5,718 | $ | 4,950 | $ | 5,190 | $ | 108 | $ | 295 | $ | 49 | ||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||
Puget Sound Energy | Qualified | SERP | Other | |||||||||||||||||||||||||
Pension Benefit | Pension Benefits | Benefits | ||||||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ||||||||||||||||||||||||||||
Net loss/(gain) | $ | (110,465 | ) | $ | 20,318 | $ | (1,687 | ) | $ | 5,483 | $ | (3,665 | ) | $ | 534 | |||||||||||||
Amortization of net (loss)/gain | (20,612 | ) | (15,015 | ) | (2,191 | ) | (1,433 | ) | 284 | 245 | ||||||||||||||||||
Prior service cost/(credit) | — | — | 477 | (122 | ) | — | — | |||||||||||||||||||||
Amortization of prior service cost/(credit) | 1,573 | 1,573 | 16 | (293 | ) | (30 | ) | (35 | ) | |||||||||||||||||||
Amortization of transition obligation | — | — | — | — | — | (50 | ) | |||||||||||||||||||||
Total change in other comprehensive income for year | $ | (129,504 | ) | $ | 6,876 | $ | (3,385 | ) | $ | 3,635 | $ | (3,411 | ) | $ | 694 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosures [Line Items] | ' | |||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||
The details of income tax (benefit) expense are as follows: | ||||||||||
Puget Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Charged to operating expenses: | ||||||||||
Current: | ||||||||||
Federal | $ | — | $ | 4,268 | $ | 785 | ||||
State | — | — | (50 | ) | ||||||
Deferred: | ||||||||||
Federal | 122,559 | 100,701 | 32,706 | |||||||
State | (151 | ) | (244 | ) | 319 | |||||
Total income tax expense | $ | 122,408 | $ | 104,725 | $ | 33,760 | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||
Puget Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Income taxes at the statutory rate | $ | 142,847 | $ | 132,491 | $ | 54,968 | ||||
Increase (decrease): | ||||||||||
Production tax credit | (22,414 | ) | (22,188 | ) | (23,310 | ) | ||||
AFUDC excluded from taxable income | (9,406 | ) | (16,543 | ) | (22,861 | ) | ||||
Capitalized interest | 7,294 | 9,757 | 17,592 | |||||||
Utility plant differences | 9,527 | 8,674 | 5,849 | |||||||
Treasury grant amortization | (7,651 | ) | (1,007 | ) | — | |||||
Tenaska gas contract | 1 | (4,687 | ) | 7,094 | ||||||
Other - net | 2,210 | (1,772 | ) | (5,572 | ) | |||||
Total income tax expense | $ | 122,408 | $ | 104,725 | $ | 33,760 | ||||
Effective tax rate | 30 | % | 27.7 | % | 21.5 | % | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||
The Company’s deferred tax liability at December 31, 2013 and 2012 is composed of amounts related to the following types of temporary differences: | ||||||||||
Puget Energy | At December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Utility plant and equipment | $ | 1,625,107 | $ | 1,409,216 | ||||||
Regulatory asset for income taxes | 146,867 | 119,844 | ||||||||
Fair value of debt instruments | 76,991 | 86,831 | ||||||||
Other deferred tax liabilities | 202,189 | 151,820 | ||||||||
Subtotal deferred tax liabilities | 2,051,154 | 1,767,711 | ||||||||
Net operating loss carryforward | (374,606 | ) | (298,440 | ) | ||||||
Production tax credit carryforward | (135,531 | ) | (113,117 | ) | ||||||
Regulatory liability on production tax credit | (71,880 | ) | (59,811 | ) | ||||||
Fair value of derivative instruments | (7,166 | ) | (44,835 | ) | ||||||
Other deferred tax assets | (60,970 | ) | (43,309 | ) | ||||||
Subtotal deferred tax assets | (650,153 | ) | (559,512 | ) | ||||||
Total | $ | 1,401,001 | $ | 1,208,199 | ||||||
Schedule of Deferred Income Taxes by Balance Sheet Location | ' | |||||||||
The above amounts have been classified in the Consolidated Balance Sheets as follows: | ||||||||||
Puget Energy | At December 31 | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Current deferred taxes | $ | (86,004 | ) | $ | (53,437 | ) | ||||
Non-current deferred taxes | 1,487,005 | 1,261,636 | ||||||||
Total | $ | 1,401,001 | $ | 1,208,199 | ||||||
PUGET SOUND ENERGY, INC. | ' | |||||||||
Income Tax Disclosures [Line Items] | ' | |||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||
Puget Sound Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Charged to operating expenses: | ||||||||||
Current: | ||||||||||
Federal | $ | — | $ | 4,268 | $ | 653 | ||||
State | — | — | — | |||||||
Deferred: | ||||||||||
Federal | 160,886 | 145,040 | 76,369 | |||||||
State | — | — | 1,095 | |||||||
Total income tax expense | $ | 160,886 | $ | 149,308 | $ | 78,117 | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||
Puget Sound Energy | Year Ended December 31, | |||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||
Income taxes at the statutory rate | $ | 180,955 | $ | 176,917 | $ | 98,783 | ||||
Increase (decrease): | ||||||||||
Production tax credit | (22,414 | ) | (22,188 | ) | (23,310 | ) | ||||
AFUDC excluded from taxable income | (9,406 | ) | (16,543 | ) | (22,861 | ) | ||||
Capitalized interest | 7,294 | 9,757 | 17,592 | |||||||
Utility plant differences | 9,527 | 8,674 | 5,849 | |||||||
Treasury grant amortization | (7,651 | ) | (1,007 | ) | — | |||||
Tenaska gas contract | 1 | (4,687 | ) | 7,094 | ||||||
Other - net | 2,580 | (1,615 | ) | (5,030 | ) | |||||
Total income tax expense | $ | 160,886 | $ | 149,308 | $ | 78,117 | ||||
Effective tax rate | 31.1 | % | 29.5 | % | 27.7 | % | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||
Puget Sound Energy | At December 31, | |||||||||
(Dollars In Thousands) | 2013 | 2012 | ||||||||
Utility plant and equipment | $ | 1,625,107 | $ | 1,409,216 | ||||||
Regulatory asset for income taxes | 146,350 | 119,279 | ||||||||
Other deferred tax liabilities | 131,977 | 132,304 | ||||||||
Subtotal deferred tax liabilities | 1,903,434 | 1,660,799 | ||||||||
Net operating loss carryforward | (173,068 | ) | (134,513 | ) | ||||||
Production tax credit carryforward | (135,531 | ) | (113,117 | ) | ||||||
Regulatory liability on production tax credit | (71,880 | ) | (59,811 | ) | ||||||
Fair value of derivative instruments | (9,988 | ) | (46,139 | ) | ||||||
Other deferred tax assets | (69,175 | ) | (100,632 | ) | ||||||
Subtotal deferred tax assets | (459,642 | ) | (454,212 | ) | ||||||
Total | $ | 1,443,792 | $ | 1,206,587 | ||||||
Schedule of Deferred Income Taxes by Balance Sheet Location | ' | |||||||||
Puget Sound Energy | At December 31 | |||||||||
(Dollars in Thousands) | 2013 | 2012 | ||||||||
Current deferred taxes | $ | (141,058 | ) | $ | (68,015 | ) | ||||
Non-current deferred taxes | 1,584,850 | 1,274,602 | ||||||||
Total | $ | 1,443,792 | $ | 1,206,587 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Long-term Contracts for Purchase of Electric Power | ' | |||||||||||||||||||||
The Company's expenses under these PUD contracts were as follows for the years ended December 31: | ||||||||||||||||||||||
(Dollars in Thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||
PUD contract costs | $ | 63,365 | $ | 70,188 | $ | 81,828 | ||||||||||||||||
As of December 31, 2013, the Company purchased portions of the power output of the PUDs' projects as set forth in the following table: | ||||||||||||||||||||||
Company's Current Share of | ||||||||||||||||||||||
(Dollars in Thousands) | Contract | Percent of | Megawatt Capacity | Estimated 2014 Costs | 2014 Debt Service Costs | Interest included in 2014 Debt Service Costs | Debt Outstanding | |||||||||||||||
Expiration | Output | |||||||||||||||||||||
Chelan County PUD: | ||||||||||||||||||||||
Rock Island Project | 2031 | 25 | % | 156 | $ | 29,182 | $ | 11,288 | $ | 6,412 | $ | 102,522 | ||||||||||
Rocky Reach Project | 2031 | 25 | % | 325 | 26,484 | 8,787 | 3,563 | 58,055 | ||||||||||||||
Douglas County PUD: | ||||||||||||||||||||||
Wells Project | 2018 | 29.9 | % | 251 | 16,258 | 8,675 | 2,678 | 71,679 | ||||||||||||||
Grant County PUD: | ||||||||||||||||||||||
Priest Rapids Development | 2052 | 0.8 | % | 9 | 4,032 | 2,175 | 1,274 | 23,738 | ||||||||||||||
Wanapum Development | 2052 | 0.8 | % | 9 | 4,032 | 2,175 | 1,274 | 23,738 | ||||||||||||||
Total | 750 | $ | 79,988 | $ | 33,100 | $ | 15,201 | $ | 279,732 | |||||||||||||
Schedule of Long-term Purchase Commitments | ' | |||||||||||||||||||||
The following table summarizes the Company’s estimated obligations for service contracts through the terms of its existing contracts. | ||||||||||||||||||||||
Service Contract Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Energy production service contracts 1 | $ | 26,714 | $ | 33,068 | $ | 15,728 | $ | 5,658 | $ | 4,165 | $ | 27,182 | $ | 112,515 | ||||||||
Automated meter reading system 2 | 23,443 | 24,176 | 13,063 | 9,558 | 9,994 | 80,106 | 160,340 | |||||||||||||||
Total | $ | 50,157 | $ | 57,244 | $ | 28,791 | $ | 15,216 | $ | 14,159 | $ | 107,288 | $ | 272,855 | ||||||||
_______________ | ||||||||||||||||||||||
1 | Energy production service contracts include operations and maintenance contracts on Mint Farm, Wild Horse, Goldendale, Hopkins Ridge, Frederickson 1, Ferndale and Lower Snake River facilities. | |||||||||||||||||||||
2 | Automated meter reading system contractual obligation is the service component of the Landis and Gyr contract. | |||||||||||||||||||||
The quantified obligations are based on the FERC and NEB (National Energy Board) currently authorized rates, which are subject to change. | ||||||||||||||||||||||
Demand Charge Obligations | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||
Firm transportation service | $ | 168,936 | $ | 166,452 | $ | 159,899 | $ | 156,205 | $ | 133,281 | $ | 487,739 | $ | 1,272,512 | ||||||||
Firm storage service | 6,528 | 5,337 | 5,209 | 5,209 | 1,407 | 2,793 | 26,483 | |||||||||||||||
Total | $ | 175,464 | $ | 171,789 | $ | 165,108 | $ | 161,414 | $ | 134,688 | $ | 490,532 | $ | 1,298,995 | ||||||||
These contracts have varying terms and may include escalation and termination provisions. | ||||||||||||||||||||||
(Dollars in Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||
Columbia River projects | $ | 67,094 | $ | 69,401 | $ | 70,924 | $ | 71,091 | $ | 62,477 | $ | 601,448 | $ | 942,435 | ||||||||
Other utilities | 17,277 | 16,718 | 17,229 | 10,174 | — | — | 61,398 | |||||||||||||||
Non-utility contracts | 53,928 | 116,317 | 150,305 | 186,948 | 191,405 | 1,480,584 | 2,179,487 | |||||||||||||||
Total | $ | 138,299 | $ | 202,436 | $ | 238,458 | $ | 268,213 | $ | 253,882 | $ | 2,082,032 | $ | 3,183,320 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||
The following tables set forth the components of the Company’s accumulated other comprehensive income (loss) at: | |||||||||||||
Puget Energy | December 31, | ||||||||||||
(Dollars in Thousands) | 2013 | 2012 | |||||||||||
Net unrealized loss on energy derivative instruments | $ | (705 | ) | $ | (742 | ) | |||||||
Net unrealized loss on interest rate swaps | (94 | ) | (3,022 | ) | |||||||||
Net unrealized loss and prior service cost on pension plans | 48,514 | (29,065 | ) | ||||||||||
Total Puget Energy, net of tax | $ | 47,715 | $ | (32,829 | ) | ||||||||
Puget Sound Energy | December 31, | ||||||||||||
(Dollars in Thousands) | 2013 | 2012 | |||||||||||
Net unrealized loss on energy derivative instruments | $ | (2,027 | ) | $ | (4,576 | ) | |||||||
Net unrealized loss on treasury interest rate swaps | (6,307 | ) | (6,624 | ) | |||||||||
Net unrealized loss and prior service cost on pension plans | (87,405 | ) | (175,998 | ) | |||||||||
Total PSE, net of tax | $ | (95,739 | ) | $ | (187,198 | ) | |||||||
The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) by component for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Puget Energy | Net unrealized gain (loss) on interest rate swaps | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | ||||||||||
Changes in AOCI, net of tax | |||||||||||||
(Dollars in Thousands) | Total | ||||||||||||
Balance at December 31, 2010 | $ | (40,041 | ) | $ | 39,630 | $ | (2,658 | ) | $ | (3,069 | ) | ||
Other comprehensive income (loss) before reclassifications | — | (53,742 | ) | — | (53,742 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 25,442 | (1,083 | ) | 1,545 | 25,904 | ||||||||
Net current-period other comprehensive income (loss) | 25,442 | (54,825 | ) | 1,545 | (27,838 | ) | |||||||
Balance at December 31, 2011 | $ | (14,599 | ) | $ | (15,195 | ) | $ | (1,113 | ) | $ | (30,907 | ) | |
Other comprehensive income (loss) before reclassifications | — | (13,574 | ) | — | (13,574 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 11,577 | (296 | ) | 371 | 11,652 | ||||||||
Net current-period other comprehensive income (loss) | 11,577 | (13,870 | ) | 371 | (1,922 | ) | |||||||
Balance at December 31, 2012 | $ | (3,022 | ) | $ | (29,065 | ) | $ | (742 | ) | $ | (32,829 | ) | |
Other comprehensive income (loss) before reclassifications | — | 76,004 | — | 76,004 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 2,928 | 1,575 | 37 | 4,540 | |||||||||
Net current-period other comprehensive income (loss) | 2,928 | 77,579 | 37 | 80,544 | |||||||||
Balance at December 31, 2013 | $ | (94 | ) | $ | 48,514 | $ | (705 | ) | $ | 47,715 | |||
Puget Sound Energy | Net unrealized gain (loss) and prior service cost on pension plans | Net unrealized gain (loss) on energy derivative instruments | Net unrealized gain (loss) on treasury interest rate swaps | ||||||||||
Changes in AOCI, net of tax | |||||||||||||
(Dollars in Thousands) | Total | ||||||||||||
Balance at December 31, 2010 | $ | (115,778 | ) | $ | (34,612 | ) | $ | (7,257 | ) | $ | (157,647 | ) | |
Other comprehensive income (loss) before reclassifications | (59,468 | ) | — | — | (59,468 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 6,542 | 21,678 | 316 | 28,536 | |||||||||
Net current-period other comprehensive income (loss) | (52,926 | ) | 21,678 | 316 | (30,932 | ) | |||||||
Balance at December 31, 2011 | $ | (168,704 | ) | $ | (12,934 | ) | $ | (6,941 | ) | $ | (188,579 | ) | |
Other comprehensive income (loss) before reclassifications | (17,049 | ) | — | — | (17,049 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 9,755 | 8,358 | 317 | 18,430 | |||||||||
Net current-period other comprehensive income (loss) | (7,294 | ) | 8,358 | 317 | 1,381 | ||||||||
Balance at December 31, 2012 | $ | (175,998 | ) | $ | (4,576 | ) | $ | (6,624 | ) | $ | (187,198 | ) | |
Other comprehensive income (loss) before reclassifications | 74,969 | — | — | 74,969 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 13,624 | 2,549 | 317 | 16,490 | |||||||||
Net current-period other comprehensive income (loss) | 88,593 | 2,549 | 317 | 91,459 | |||||||||
Balance at December 31, 2013 | $ | (87,405 | ) | $ | (2,027 | ) | $ | (6,307 | ) | $ | (95,739 | ) | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||
Details about these reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011, respectively, are as follows: | |||||||||||||
Puget Energy | |||||||||||||
(Dollars in Thousands) | |||||||||||||
Details about accumulated other comprehensive income (loss) components | Affected line item in the statement where net income (loss) is presented | Amount reclassified from accumulated | |||||||||||
other comprehensive income (loss) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net unrealized gain (loss) on interest rate swaps: | |||||||||||||
Interest rate contracts | Interest expense | $ | (4,505 | ) | $ | (17,811 | ) | $ | (39,143 | ) | |||
Tax (expense) or benefit | 1,577 | 6,234 | 13,701 | ||||||||||
Net of Tax | $ | (2,928 | ) | $ | (11,577 | ) | $ | (25,442 | ) | ||||
Net unrealized gain (loss) and prior service cost on pension plans: | |||||||||||||
Amortization of prior service cost | (a) | 1,997 | 1,980 | 1,980 | |||||||||
Amortization of net gain (loss) | (a) | (4,420 | ) | (1,524 | ) | (314 | ) | ||||||
Total before tax | (2,423 | ) | 456 | 1,666 | |||||||||
Tax (expense) or benefit | 848 | (160 | ) | (583 | ) | ||||||||
Net of Tax | $ | (1,575 | ) | $ | 296 | $ | 1,083 | ||||||
Net unrealized gain (loss) on energy derivative instruments: | |||||||||||||
Commodity contracts: Electric derivatives | Electric generation fuel | — | 100 | (679 | ) | ||||||||
Purchased electricity | (57 | ) | (671 | ) | (1,698 | ) | |||||||
Total before tax | (57 | ) | (571 | ) | (2,377 | ) | |||||||
Tax (expense) or benefit | 20 | 200 | 832 | ||||||||||
Net of Tax | $ | (37 | ) | $ | (371 | ) | $ | (1,545 | ) | ||||
Total reclassification for the period | Net of Tax | $ | (4,540 | ) | $ | (11,652 | ) | $ | (25,904 | ) | |||
__________ | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). | ||||||||||||
Puget Sound Energy | |||||||||||||
(Dollars in Thousands) | |||||||||||||
Details about accumulated other comprehensive income (loss) components | Affected line item in the statement where net income (loss) is presented | Amount reclassified from accumulated | |||||||||||
other comprehensive income (loss) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net unrealized gain (loss) and prior service cost on pension plans: | |||||||||||||
Amortization of prior service cost | (a) | $ | 1,559 | $ | 1,245 | $ | 949 | ||||||
Amortization of net gain (loss) | (a) | (22,519 | ) | (16,203 | ) | (10,963 | ) | ||||||
Amortization of transition obligation | (a) | — | (50 | ) | (50 | ) | |||||||
Total before tax | (20,960 | ) | (15,008 | ) | (10,064 | ) | |||||||
Tax (expense) or benefit | 7,336 | 5,253 | 3,522 | ||||||||||
Net of tax | $ | (13,624 | ) | $ | (9,755 | ) | $ | (6,542 | ) | ||||
Net unrealized gain (loss) on energy derivative instruments: | |||||||||||||
Commodity contracts: Electric derivatives | Electric generation fuel | — | 97 | (20,625 | ) | ||||||||
Purchased electricity | (3,922 | ) | (12,955 | ) | (12,726 | ) | |||||||
Total before tax | (3,922 | ) | (12,858 | ) | (33,351 | ) | |||||||
Tax (expense) or benefit | 1,373 | 4,500 | 11,673 | ||||||||||
Net of Tax | $ | (2,549 | ) | $ | (8,358 | ) | $ | (21,678 | ) | ||||
Net unrealized gain (loss) on treasury interest rate swaps: | |||||||||||||
Interest rate contracts | Interest expense | (488 | ) | (488 | ) | (488 | ) | ||||||
Tax (expense) or benefit | 171 | 171 | 172 | ||||||||||
Net of Tax | $ | (317 | ) | $ | (317 | ) | $ | (316 | ) | ||||
Total reclassification for the period | Net of Tax | $ | (16,490 | ) | $ | (18,430 | ) | $ | (28,536 | ) | |||
__________ | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). |
SUPPLEMENTAL_QUARTERLY_FINANCI1
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||
The following unaudited amounts, in the opinion of the Company, include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations for the interim periods. Quarterly amounts vary during the year due to the seasonal nature of the utility business. | |||||||||||||
Puget Energy | 2013 Quarter | ||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 999,818 | $ | 642,486 | $ | 598,348 | $ | 946,645 | |||||
Operating income | 317,735 | 95,081 | 100,043 | 242,301 | |||||||||
Net income | 167,475 | 905 | 8,540 | 108,808 | |||||||||
2012 Quarter | |||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 1,048,512 | $ | 678,617 | $ | 578,755 | $ | 909,272 | |||||
Operating income | 209,023 | 159,876 | 153,262 | 193,374 | |||||||||
Net income (loss) | 88,480 | 57,692 | 46,692 | 80,957 | |||||||||
Puget Sound Energy | 2013 Quarter | ||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 999,707 | $ | 642,486 | $ | 598,348 | $ | 946,794 | |||||
Operating income | 310,587 | 91,094 | 96,085 | 237,808 | |||||||||
Net income | 179,938 | 26,663 | 26,605 | 122,923 | |||||||||
2012 Quarter | |||||||||||||
(Unaudited; Dollars in Thousands) | First | Second | Third | Fourth | |||||||||
Operating revenue | $ | 1,048,512 | $ | 678,617 | $ | 579,611 | $ | 909,519 | |||||
Operating income | 201,245 | 153,306 | 150,007 | 188,431 | |||||||||
Net income (loss) | 112,716 | 80,872 | 66,868 | 95,714 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 06, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
unit | Electric Transmission | Electric Transmission | Electric Transmission | Gas Transmission Equipment | Gas Transmission Equipment | Gas Transmission Equipment | Common Plant | Common Plant | Common Plant | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | |||||
sqmi | ||||||||||||||||||
Accounting Policies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of service territory (sqmi) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' |
Reclassification from AR to AP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33,700,000 | ' | ' | ' |
Public Utilities, Rate Case, Deferred Maintenance Costs Threshold | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual depreciation provision | ' | ' | ' | ' | ' | 2.80% | 2.90% | 2.70% | 3.40% | 3.40% | 3.50% | 11.40% | 11.60% | 11.30% | ' | ' | ' | ' |
Recognition of goodwill due to merger | ' | ' | ' | ' | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and Cash Equivalents, at Carrying Value | 44,302,000 | 135,542,000 | 37,235,000 | 36,557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,111,000 | 135,530,000 | 31,010,000 | 36,320,000 |
Cash equivalents | 2,600,000 | 107,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excise taxes collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 243,900,000 | 244,200,000 | 252,500,000 | ' |
Allowance for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | 7,385,000 | 9,932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,385,000 | 9,932,000 | ' | ' |
Self Insurance [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Rate Case, Deferred Storm Costs Threshold | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statements of Cash Flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Lease Obligations Incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $37,900,000 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - AFUDC (Details) | 6 Months Ended | 12 Months Ended | 14 Months Ended | 25 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | 13-May-12 | |
Regulatory Assets [Line Items] | ' | ' | ' | ' |
Public Utilities, Property, Plant and Equipment, Non-project Electric Utility Plant, Estimated Useful Life Average | ' | '30 years | ' | ' |
Washington Commission AFUDC Rates | 7.77% | ' | 7.80% | 8.10% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Cash Flow Restatement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Regulatory assets | ($122,549) | ($170,374) | ($64,173) |
Net Cash Provided by (Used in) Operating Activities | 766,068 | 782,685 | 915,923 |
Energy Efficiency Expenditures | ' | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | -480,918 | -692,970 | -982,410 |
Scenario, Previously Reported | ' | ' | ' |
Regulatory assets | ' | -64,368 | 30,232 |
Net Cash Provided by (Used in) Operating Activities | ' | 888,691 | 1,010,328 |
Energy Efficiency Expenditures | ' | -106,006 | -94,405 |
Net Cash Provided by (Used in) Investing Activities | ' | -798,976 | -1,076,815 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Regulatory assets | -122,549 | -170,374 | -65,134 |
Net Cash Provided by (Used in) Operating Activities | 835,679 | 797,882 | 809,017 |
Energy Efficiency Expenditures | ' | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | -479,798 | -672,069 | -966,183 |
PUGET SOUND ENERGY, INC. | Scenario, Previously Reported | ' | ' | ' |
Regulatory assets | ' | -64,368 | 29,271 |
Net Cash Provided by (Used in) Operating Activities | ' | 903,888 | 903,422 |
Energy Efficiency Expenditures | ' | -106,006 | -94,405 |
Net Cash Provided by (Used in) Investing Activities | ' | ($778,075) | ($1,060,588) |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) | ' | ' |
Net unrealized loss on energy derivative instruments | ($705) | ($742) |
Net unrealized loss on interest rate swaps | -94 | -3,022 |
Net unrealized loss and prior service cost on pension plans | 48,514 | -29,065 |
Accumulated other comprehensive income (loss), net of tax | 47,715 | -32,829 |
PUGET SOUND ENERGY, INC. | ' | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' |
Net unrealized loss on energy derivative instruments | -2,027 | -4,576 |
Net unrealized loss on interest rate swaps | -6,307 | -6,624 |
Net unrealized loss and prior service cost on pension plans | -87,405 | -175,998 |
Accumulated other comprehensive income (loss), net of tax | ($95,739) | ($187,198) |
Regulation_and_Rates_Schedule_
Regulation and Rates Schedule of Allowed Return on the Net Regulatory Assets and Liabilities (Details) | 6 Months Ended | 14 Months Ended | 25 Months Ended |
Dec. 31, 2013 | Jun. 30, 2013 | 13-May-12 | |
Regulated Operations [Abstract] | ' | ' | ' |
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 7.77% | 7.80% | 8.10% |
Regulated Utlity, After-tax Allowed Rate of Return on Net Regulatory Assets and Liabilities | 6.69% | 6.71% | 6.90% |
Regulation_and_Rates_Net_regul
Regulation and Rates Net regulatory assets and liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
PUGET SOUND ENERGY, INC. | Cost of removal | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | ($269,536) | [1] | ($239,243) | [1] |
PUGET SOUND ENERGY, INC. | Deferred income taxes | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -93,618 | [2] | -93,618 | [2] |
PUGET SOUND ENERGY, INC. | PGA payable | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -5,938 | -32,587 | ||
Remaining Amortization Period | '1 year | ' | ||
PUGET SOUND ENERGY, INC. | PCA mechanism | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -5,345 | [3] | 0 | [3] |
PUGET SOUND ENERGY, INC. | Decoupling over-collection | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -20,535 | [3] | 0 | [3] |
PUGET SOUND ENERGY, INC. | Summit purchase option buy-out | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -10,763 | -12,338 | ||
Remaining Amortization Period | '6 years 9 months | ' | ||
PUGET SOUND ENERGY, INC. | Deferred gain on Jefferson County sale | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -60,844 | [3] | 0 | [3] |
PUGET SOUND ENERGY, INC. | Deferred credit on Biogas sale | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -10,908 | 0 | ||
Remaining Amortization Period | '1 year | ' | ||
PUGET SOUND ENERGY, INC. | Deferred credit on gas pipeline capacity | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -4,508 | -6,213 | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '4 years 10 months | ' | ||
PUGET SOUND ENERGY, INC. | Renewable energy credits | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -5,820 | [3] | -11,341 | [3] |
PUGET SOUND ENERGY, INC. | Treasury grants | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -203,889 | -225,573 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '6 years | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '9 years | ' | ||
PUGET SOUND ENERGY, INC. | Various other regulatory liabilities | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -5,755 | -7,998 | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '4 years | ' | ||
PUGET SOUND ENERGY, INC. | Liabilities, Total | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -697,459 | [4] | -628,911 | [4] |
PUGET SOUND ENERGY, INC. | Net Regulatory Assets | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Net Regulatory Assets | 198,273 | 307,312 | ||
PUGET SOUND ENERGY, INC. | PGA deferral of unrealized losses on derivative instruments | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 27,555 | [3] | 95,953 | [3] |
PUGET SOUND ENERGY, INC. | Chelan PUD contract initiation | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 126,404 | 133,492 | ||
Remaining Amortization Period | '17 years 9 months | ' | ||
PUGET SOUND ENERGY, INC. | Storm damage costs electric | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 116,328 | 131,904 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '1 year | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '5 years | ' | ||
PUGET SOUND ENERGY, INC. | Environmental remediation | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 57,342 | [3] | 66,402 | [3] |
PUGET SOUND ENERGY, INC. | Baker Dam licensing operating and maintenance costs | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 57,270 | 57,644 | ||
Remaining Amortization Period | '45 years | ' | ||
PUGET SOUND ENERGY, INC. | Snoqualmie Licensing Operating Maintenance Costs | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 10,881 | 7,816 | ||
Remaining Amortization Period | '31 years | ' | ||
PUGET SOUND ENERGY, INC. | Colstrip common property | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 7,479 | 8,195 | ||
Remaining Amortization Period | '10 years 6 months | ' | ||
PUGET SOUND ENERGY, INC. | Deferred income taxes | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 146,350 | [3] | 119,279 | [3] |
PUGET SOUND ENERGY, INC. | Deferred Washington Commission AFUDC | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 55,495 | 55,896 | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '36 years | ' | ||
PUGET SOUND ENERGY, INC. | Energy conservation costs | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 35,987 | 26,940 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '1 year | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '2 years | ' | ||
PUGET SOUND ENERGY, INC. | Unamortized loss on reacquired debt | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 37,832 | 31,399 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '1 year | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '22 years 6 months | ' | ||
PUGET SOUND ENERGY, INC. | White River relicensing and other costs | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 28,190 | [3] | 29,654 | [3] |
PUGET SOUND ENERGY, INC. | Mint Farm ownership and operating costs | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 22,320 | 24,321 | ||
Remaining Amortization Period | '11 years 4 months | ' | ||
PUGET SOUND ENERGY, INC. | Investment in Bonneville Exchange power contract | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 12,343 | 15,870 | ||
Remaining Amortization Period | '3 years 6 months | ' | ||
PUGET SOUND ENERGY, INC. | Ferndale | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 22,811 | 1,789 | ||
Remaining Amortization Period | '5 years 9 months | ' | ||
PUGET SOUND ENERGY, INC. | Lower Snake River | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 92,924 | 126,887 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '2 years 4 months | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '23 years 4 months | ' | ||
PUGET SOUND ENERGY, INC. | Snoqualmie | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 8,009 | 0 | ||
Remaining Amortization Period | '5 years 9 months | ' | ||
PUGET SOUND ENERGY, INC. | Property tax tracker | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 22,134 | [3] | 0 | [3] |
PUGET SOUND ENERGY, INC. | Various other regulatory assets | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 8,078 | 2,782 | ||
PUGET SOUND ENERGY, INC. | Assets, Total | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 895,732 | [4] | 936,223 | [4] |
PUGET ENERGY | Regulatory liabilities related to power contracts | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -443,065 | -507,009 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '1 year | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '38 years | ' | ||
PUGET ENERGY | Various other regulatory liabilities | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -2,884 | -4,373 | ||
PUGET ENERGY | Liabilities, Total | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Liabilities | -1,143,408 | -1,140,293 | ||
PUGET ENERGY | Net Regulatory Assets | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Net Regulatory Assets | -213,406 | -163,236 | ||
PUGET ENERGY | Requlatory Assets Related to Power Contracts | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 33,753 | 37,655 | ||
Net Regulatory Assets, Remaining Amortization Period, Min | '1 year | ' | ||
Net Regulatory Assets, Remaining Amortization Period, Max | '23 years | ' | ||
PUGET ENERGY | Various other regulatory assets | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | 517 | 3,179 | ||
PUGET ENERGY | Assets, Total | ' | ' | ||
Regulatory Assets [Line Items] | ' | ' | ||
Regulatory Assets | $930,002 | $977,057 | ||
[1] | The balance is dependent upon the cost of removal of underlying assets and the life of utility plant. | |||
[2] | Amortization will begin once PTCs are utilized by PSE on its tax return. | |||
[3] | Amortization periods vary depending on timing of underlying transactions or awaiting regulatory approval in a future Washington Commission rate proceeding. | |||
[4] | Puget Energy’s regulatory assets and liabilities include purchase accounting adjustments under ASC 805 as a result of the merger. |
Regulation_and_Rates_Rate_Adju
Regulation and Rates Rate Adjustments (Details) (USD $) | Jul. 01, 2013 | 14-May-12 | Nov. 01, 2013 | Jul. 01, 2013 | Jan. 02, 2014 | Jul. 01, 2013 | 14-May-12 | Nov. 01, 2010 | Jun. 28, 2012 | 14-May-12 | Jul. 01, 2013 | Jan. 02, 2014 | Jul. 01, 2013 | 14-May-12 | Apr. 02, 2011 | Nov. 01, 2013 | Nov. 01, 2012 | Nov. 01, 2011 | Mar. 30, 2013 | Mar. 30, 2013 | Mar. 30, 2013 |
In Millions, unless otherwise specified | Electric | Electric | Electric | Electric | Electric | Electric | Electric | Gas | Gas | Gas | Gas | Gas | Gas | Gas | Gas | Gas | Gas | Jefferson County Public Utility District | PUGET SOUND ENERGY, INC. | Customers | |
Power Cost Only Rate Case (PCORC) | Decoupling Mechanism | Expedited Rate Filing | Expedited Rate Filing | General Rate Case | Production Tax Credit | Decoupling Mechanism | Expedited Rate Filing | Expedited Rate Filing | General Rate Case | General Rate Case | Purchased Gas Adjustment (PGA) | Purchased Gas Adjustment (PGA) | Purchased Gas Adjustment (PGA) | Jefferson County Public Utility District | Jefferson County Public Utility District | ||||||
Regulation and Rates [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | ' | ' | $10.50 | ($21.40) | ' | ($30.70) | ($63.30) | $27.70 | ' | ' | ($10.80) | ' | $2 | ($13.40) | ($19) | ($4) | $77 | $43.50 | ' | ' | ' |
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | ' | ' | -0.50% | 1.00% | 3.00% | 1.50% | 3.20% | -2.90% | ' | ' | 1.10% | 2.20% | -0.20% | 1.30% | 1.80% | 0.40% | -7.70% | -4.30% | ' | ' | ' |
Public Utilities, Rate Case, Approved Effective Weighted Cost of Capital | 7.77% | 7.80% | ' | ' | ' | ' | ' | ' | ' | 7.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Rate Case, Approved Effective Common Equity in Capital Structure | 48.00% | 48.00% | ' | ' | ' | ' | ' | ' | ' | 48.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public Utilities, Rate Case, Approved Effective Return on Equity | 9.80% | 9.80% | ' | ' | ' | ' | ' | ' | ' | 9.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46.7 | ' | ' |
Significant Acquisitions and Disposals, Gain (Loss) on Sale or Disposal, Pretax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | 45 | 15 |
Accounting Petition, Approved Effective Increase (Decrease) to Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 6.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounting Petition, Approved Effective Increase (Decrease) to Conservation Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | $6.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulation_and_Rates_Power_Cos
Regulation and Rates Power Cost Adjustment Mechanism (Details) | Dec. 31, 2013 |
Plus/Minus $20 million | Customers’ Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 0.00% |
Plus/Minus $20 million | Company's Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 100.00% |
Plus/Minus $20 million - $40 million | Customers’ Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 50.00% |
Plus/Minus $20 million - $40 million | Company's Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 50.00% |
Plus/Minus $40 million - $120 million | Customers’ Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 90.00% |
Plus/Minus $40 million - $120 million | Company's Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 10.00% |
Plus/Minus $120 million | Customers’ Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 95.00% |
Plus/Minus $120 million | Company's Share | ' |
Regulation and Rates [Line Items] | ' |
Annual Power Cost Variability | 5.00% |
Regulation_and_Rates_Details
Regulation and Rates (Details) (USD $) | Dec. 31, 2013 | Feb. 28, 2012 | Nov. 09, 2009 | Nov. 08, 2009 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 22, 2009 | Dec. 31, 2013 |
In Millions, unless otherwise specified | MW | MW | MW | Electric | Gas plant | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | Seattle, Washington [Member] | |
Regulation and Rates [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory Liabilities Reclassified from Accumulated Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | $269.50 | $239.20 | ' | ' | ' | ' |
Public Utilities, Rate Case, Deferred Storm Costs Threshold | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Storm Damage Costs Incurred During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.5 | 71.5 | ' | ' | ' | ' |
Storm Damage Costs Deferred During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.4 | ' | ' | ' | ' |
Facility Power Capacity | ' | 343 | 273 | 229 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant Approved Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205.3 | ' | ' | 28.7 | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant, Amortization Period Included in Customer Pass Through | ' | ' | ' | ' | ' | ' | ' | '11 months | ' | ' | ' | ' | '23 months | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant, Overall Average Rate Reduction | ' | ' | ' | ' | ' | ' | ' | 2.76% | -0.26% | ' | ' | 0.30% | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Total Grant Pass Through Amount | ' | ' | ' | ' | ' | ' | ' | ' | 58.5 | ' | ' | ' | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant, Approved Pass Back Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant Amortization Period | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant Pass Through Amount | ' | ' | ' | ' | ' | ' | ' | 34.6 | 37.8 | ' | ' | 5.5 | ' | ' | ' |
American Recovery and Reinvestment Tax Act of 2009, Grant Pass Through Interest Amount | ' | ' | ' | ' | ' | ' | 2.4 | 23.8 | 20.6 | ' | ' | ' | ' | ' | ' |
Accrual for Environmental Loss Contingencies | ' | ' | ' | ' | 9.1 | 31.3 | ' | ' | ' | ' | ' | ' | ' | ' | 19.4 |
Environmental Exit Costs, Reasonably Possible Additional Losses, Low Estimate | ' | ' | ' | ' | 9.1 | 31.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental Exit Costs, Reasonably Possible Additional Losses, High Estimate | ' | ' | ' | ' | 27.4 | 49.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental Expense and Liabilities | ' | ' | ' | ' | $12.30 | $45.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend_Payment_Restrictions_
Dividend Payment Restrictions (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Parent [Line Items] | ' |
Retained Earnings, Unappropriated | $469.60 |
Dividends, Earnings Before Interest, Tax, Deprecation and Amortization Ratio, Threshold For Dividend Payment | 2 |
Dividends, Earnings Before Interest, Tax, Deprecation and Amortization Ratio at Period End | 2.9 |
PUGET SOUND ENERGY, INC. | ' |
Parent [Line Items] | ' |
Dividends, Common Equity Ratio, Threshold For Dividend Payment | 44.00% |
Dividends, Earnings Before Interest, Tax, Deprecation and Amortization Ratio, Threshold For Dividend Payment | 3 |
Dividends, Common Equity Ratio at Period End | 47.40% |
Dividends, Earnings Before Interest, Tax, Deprecation and Amortization Ratio at Period End | 4.4 |
Utility_Plant_Details
Utility Plant (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
Minimum | Maximum | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | |||||||||
Public Utility, Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ||||||
Distribution plant, Estimated Useful Life | ' | ' | '10 years | '50 years | ' | ' | ||||||
Production plant, Estimated Useful Life | ' | ' | '25 years | '125 years | ' | ' | ||||||
Transmission plant, Estimated Useful Life | ' | ' | '45 years | '65 years | ' | ' | ||||||
General plant, Estimated Useful Life | ' | ' | '5 years | '35 years | ' | ' | ||||||
Intangible plant (including capitalized software), Estimated Useful Life | ' | ' | '3 years | '50 years | ' | ' | ||||||
Plant acquisition adjustment, Estimated Useful Life | ' | ' | '7 years | '30 years | ' | ' | ||||||
Underground storage, Estimated Useful Life | ' | ' | '25 years | '60 years | ' | ' | ||||||
Liquefied natural gas storage, Estimated Useful Life | ' | ' | '25 years | '45 years | ' | ' | ||||||
Capital leases, net of accumulated amortization, Estimated Useful Life | ' | ' | '1 year | [1] | '5 years | [1] | ' | ' | ||||
Accumulated amortization of capital leases | $20,800,000 | $13,300,000 | ' | ' | $20,800,000 | $13,300,000 | ||||||
Utility Plant | ' | ' | ' | ' | ' | ' | ||||||
Distribution plant | 4,448,451,000 | 4,276,123,000 | ' | ' | 6,127,732,000 | 5,993,055,000 | ||||||
Production plant | 2,966,223,000 | 2,480,135,000 | ' | ' | 3,948,270,000 | 3,464,528,000 | ||||||
Transmission plant | 1,043,605,000 | 984,018,000 | ' | ' | 1,162,929,000 | 1,108,104,000 | ||||||
General plant | 504,965,000 | 445,982,000 | ' | ' | 599,156,000 | 543,195,000 | ||||||
Intangible plant (including capitalized software) | 316,614,000 | 181,884,000 | ' | ' | 309,972,000 | 181,596,000 | ||||||
Plant acquisition adjustment | 242,826,000 | 242,659,000 | ' | ' | 282,792,000 | 282,624,000 | ||||||
Underground storage | 27,857,000 | 27,331,000 | ' | ' | 41,501,000 | 40,987,000 | ||||||
Liquefied natural gas storage | 12,622,000 | 12,622,000 | ' | ' | 14,492,000 | 14,492,000 | ||||||
Plant held for future use | 28,742,000 | 18,416,000 | ' | ' | 28,895,000 | 18,568,000 | ||||||
Recoverable cushion gas | 8,655,000 | 8,655,000 | ' | ' | 8,655,000 | 8,655,000 | ||||||
Plant not classified | 124,589,000 | 155,626,000 | ' | ' | 124,589,000 | 155,625,000 | ||||||
Capital leases, net of accumulated amortization | 17,051,000 | [1] | 24,629,000 | [1] | ' | ' | 17,051,000 | [1] | 24,629,000 | [1] | ||
Less: Accumulated depreciation and amortization | -1,373,178,000 | -1,067,424,000 | ' | ' | -4,297,012,000 | -4,045,402,000 | ||||||
Subtotal | 8,369,022,000 | 7,790,656,000 | ' | ' | 8,369,022,000 | 7,790,656,000 | ||||||
Construction work in progress | 310,318,000 | 766,035,000 | ' | ' | 310,318,000 | 766,035,000 | ||||||
Net utility plant | $8,679,340,000 | $8,556,691,000 | ' | ' | $8,679,340,000 | $8,556,691,000 | ||||||
[1] | Accumulated amortization of capital leases at Puget Energy was $20.8 million in 2013 and $13.3 million in 2012. Accumulated amortization of capital leases at PSE was $20.8 million in 2013 and $13.3 million in 2012. |
Utility_Plant_Jointly_Owned_Ut
Utility Plant - Jointly Owned Utility Plant (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Jointly Owned Utility Plant Interests | ' | ' |
Asset Retirement Obligation, Liabilities Incurred | $350 | $7,737 |
Colstrip Units 1 & 2 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Company’s Ownership Share | 50.00% | ' |
Plant in Service at Cost | 162,090 | ' |
Accumulated Depreciation | -20,875 | ' |
Colstrip Units 3 & 4 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Company’s Ownership Share | 25.00% | ' |
Plant in Service at Cost | 234,984 | ' |
Accumulated Depreciation | -33,270 | ' |
Colstrip Units 1 – 4 Common Facilities | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Plant in Service at Cost | 83 | ' |
Accumulated Depreciation | -17 | ' |
Frederickson 1 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Company’s Ownership Share | 49.85% | ' |
Plant in Service at Cost | 61,785 | ' |
Accumulated Depreciation | -4,255 | ' |
PUGET SOUND ENERGY, INC. | Colstrip Units 1 & 2 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Plant in Service at Cost | 297,494 | ' |
Accumulated Depreciation | -156,278 | ' |
PUGET SOUND ENERGY, INC. | Colstrip Units 3 & 4 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Plant in Service at Cost | 513,992 | ' |
Accumulated Depreciation | -312,278 | ' |
PUGET SOUND ENERGY, INC. | Colstrip Units 1 – 4 Common Facilities | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Plant in Service at Cost | 252 | ' |
Accumulated Depreciation | -185 | ' |
PUGET SOUND ENERGY, INC. | Frederickson 1 | ' | ' |
Jointly Owned Utility Plant Interests | ' | ' |
Plant in Service at Cost | 70,719 | ' |
Accumulated Depreciation | ($13,189) | ' |
Utility_Plant_Asset_Retirement
Utility Plant - Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' |
Asset retirement obligation at beginning of period | $45,496 | $26,540 |
New asset retirement obligation recognized in the period | 350 | 7,737 |
Liability settled in the period | -1,188 | -2,960 |
Revisions in estimated cash flows | 2,769 | 12,632 |
Accretion expense | 1,260 | 1,547 |
Asset retirement obligation at end of period | $48,687 | $45,496 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt (Schedule of Long-Term Debt Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 23-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
Senior secured credit facility | Senior secured credit facility | Senior Secured Note | Senior Secured Note | Senior Secured Note | Senior Secured Note | Senior Secured Note | Senior Secured Note | Senior Secured Note | Senior Secured Note | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | |||||
6.500% Senior Secured Note Due 2020 | 6.500% Senior Secured Note Due 2020 | 6.000% Senior Secured Note Due 2021 | 6.000% Senior Secured Note Due 2021 | 5.625% Senior Secured Note Due 2022 | 5.625% Senior Secured Note Due 2022 | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Senior Notes and First Mortgage Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Junior Subordinated Notes | Junior Subordinated Notes | Junior Subordinated Notes | Junior Subordinated Notes | Junior Subordinated Notes | |||||||||||
6.830% Series Due 2013 | 6.830% Series Due 2013 | 6.900% Series Due 2013 | 6.900% Series Due 2013 | 7.350% Series Due 2015 | 7.350% Series Due 2015 | 7.360% Series Due 2015 | 7.360% Series Due 2015 | 5.197% Series Due 2015 | 5.197% Series Due 2015 | 6.750% Series Due 2016 | 6.750% Series Due 2016 | 5.500% Secured Promissory Note Due 2017 | 5.500% Secured Promissory Note Due 2017 | 6.740% Series Due 2018 | 6.740% Series Due 2018 | 7.150% Series Due 2025 | 7.150% Series Due 2025 | 7.200% Series Due 2025 | 7.200% Series Due 2025 | 7.020% Series Due 2027 | 7.020% Series Due 2027 | 7.000% Series Due 2029 | 7.000% Series Due 2029 | 3.900% Series Due 2031 | 3.900% Series Due 2031 | 5.483% Series Due 2035 | 5.483% Series Due 2035 | 6.724% Series Due 2036 | 6.724% Series Due 2036 | 6.274% Series Due 2037 | 6.274% Series Due 2037 | 5.757% Series Due 2039 | 5.757% Series Due 2039 | 5.795% Series Due 2040 | 5.795% Series Due 2040 | 5.764% Series Due 2040 | 5.764% Series Due 2040 | 4.434% Series Due 2041 | 4.434% Series Due 2041 | 5.638% Series Due 2041 | 5.638% Series Due 2041 | 4.700% Series Due 2051 | 4.700% Series Due 2051 | 3.900% Series Due 2031 | 4.000% Series Due 2031 | 4.000% Series Due 2031 | 5.000% Series Due 2031 | 5.000% Series Due 2031 | 5.100% Series Due 2031 | 5.100% Series Due 2031 | 6.974% Series Due 2067 | 6.974% Series Due 2067 | 6.500% Senior Secured Note Due 2020 | 6.000% Senior Secured Note Due 2021 | 5.625% Senior Secured Note Due 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stated interest rate percent | ' | ' | ' | ' | ' | ' | 6.50% | ' | 6.00% | ' | ' | ' | ' | ' | 6.83% | ' | 6.90% | ' | 7.35% | ' | 7.36% | ' | 5.20% | ' | 6.75% | ' | 5.50% | ' | 6.74% | ' | 7.15% | ' | 7.20% | ' | 7.02% | ' | 7.00% | ' | ' | ' | 5.48% | ' | 6.72% | ' | 6.27% | ' | 5.76% | ' | 5.80% | ' | 5.76% | ' | 4.43% | ' | 5.64% | ' | 4.70% | ' | ' | 3.90% | 4.00% | ' | 5.00% | ' | 5.10% | ' | 6.97% | ' | 6.50% | 6.00% | 5.63% | ||
Total PSE long-term debt | $5,462,272,000 | ' | $299,000,000 | $434,000,000 | ' | ' | $450,000,000 | $450,000,000 | $500,000,000 | $500,000,000 | $450,000,000 | $450,000,000 | $3,763,272,000 | ' | $0 | $3,000,000 | $0 | $10,000,000 | $10,000,000 | $10,000,000 | $2,000,000 | $2,000,000 | $150,000,000 | $150,000,000 | $250,000,000 | $250,000,000 | $2,412,000 | [1] | $2,412,000 | [1] | $200,000,000 | $200,000,000 | $15,000,000 | $15,000,000 | $2,000,000 | $2,000,000 | $300,000,000 | $300,000,000 | $100,000,000 | $100,000,000 | $138,460,000 | $0 | $250,000,000 | $250,000,000 | $250,000,000 | $250,000,000 | $300,000,000 | $300,000,000 | $350,000,000 | $350,000,000 | $325,000,000 | $325,000,000 | $250,000,000 | $250,000,000 | $250,000,000 | $250,000,000 | $300,000,000 | $300,000,000 | $45,000,000 | $45,000,000 | $161,900,000 | ' | $23,400,000 | $0 | $0 | $138,460,000 | $0 | $23,400,000 | $250,000,000 | $250,000,000 | ' | ' | ' |
Long Term Debt, Reconciliation, Fair Value Adjustment | -229,746,000 | -264,017,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unamortized discount on senior notes | ' | ' | ' | ' | -36,000 | -41,000 | ' | ' | ' | ' | ' | ' | -14,000 | -14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net PSE long-term debt | $5,232,476,000 | $5,346,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,763,258,000 | $3,776,258,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Accumulated amortization of capital leases at Puget Energy was $20.8 million in 2013 and $13.3 million in 2012. Accumulated amortization of capital leases at PSE was $20.8 million in 2013 and $13.3 million in 2012. |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 10, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 15, 2012 | Feb. 28, 2009 | Feb. 10, 2012 | Dec. 06, 2010 | Feb. 28, 2009 | Dec. 31, 2013 | Feb. 10, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 04, 2013 | 23-May-13 | 23-May-13 | 23-May-13 | Dec. 31, 2013 | |
Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Capital Expenditure Facility | Term Loan | Term Loan | Term Loan | Revolving Credit Facility | Revolving Credit Facility | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET ENERGY | |||||
Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | Pollution Control Bonds | ||||||||||||||||||
5.010% Series Due 2031 | 3.910% Series Due 2031 | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $5,462,272,000 | ' | ' | ' | $299,000,000 | $434,000,000 | ' | ' | ' | ' | $1,225,000,000 | ' | ' | $3,763,272,000 | ' | ' | ' | $161,900,000 | ' | ' | ' |
Stated interest rate percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.01% | 3.91% | ' |
Liabilities and Equity, Fair Value Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 |
Outstanding amount for line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | '5 years | ' | ' | ' | ' | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument amount issued | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of long-term debt | 309,860,000 | 1,273,000,000 | 769,000,000 | ' | 425,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 174,860,000 | 0 | 285,000,000 | ' | ' | ' | ' | ' |
Current borrowing capacity of line of credit | ' | ' | ' | 1,000,000,000 | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | 800,000,000 | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' |
Maximum brrowing cpacity | $1,300,000,000 | ' | ' | ' | $859,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,450,000,000 | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Schedule_of_Matu
Long-Term Debt (Schedule of Maturities of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 |
Maturities of Long-term Debt [Abstract] | ' |
2014 | $0 |
2015 | 162,000,000 |
2016 | 250,000,000 |
2017 | 301,412,000 |
2018 | 200,000,000 |
Thereafter | 4,548,860,000 |
Total long-term debt | 5,462,272,000 |
PUGET SOUND ENERGY, INC. | ' |
Maturities of Long-term Debt [Abstract] | ' |
2014 | 0 |
2015 | 162,000,000 |
2016 | 250,000,000 |
2017 | 2,412,000 |
2018 | 200,000,000 |
Thereafter | 3,148,860,000 |
Total long-term debt | 3,763,272,000 |
PUGET ENERGY | ' |
Maturities of Long-term Debt [Abstract] | ' |
2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 299,000,000 |
2018 | 0 |
Thereafter | 1,400,000,000 |
Total long-term debt | $1,699,000,000 |
Liquidity_Facilities_and_Other1
Liquidity Facilities and Other Financing Arrangements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Feb. 10, 2012 | Dec. 31, 2013 | Feb. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 04, 2013 | Dec. 31, 2013 | Feb. 04, 2013 | Dec. 31, 2013 | Feb. 04, 2013 | Dec. 31, 2013 | Feb. 10, 2012 |
Senior secured credit facility | Senior secured credit facility | Revolving Credit Facility | Revolving Credit Facility | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET ENERGY | ||||
facility | facility | Promissory Note with Puget Energy | Working Capital Needs | Energy Hedging Activities | Energy Hedging Activities | Letter of Credit | Senior secured credit facility | Senior secured credit facility | |||||||||||
Working Capital Needs | Promissory Note with Puget Energy | ||||||||||||||||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount for line of credit | ' | ' | ' | ' | ' | ' | $299,000,000 | ' | ' | ' | ' | $29,598,000 | ' | $1,000,000 | ' | $162,000,000 | ' | ' | ' |
Short-term debt | 162,000,000 | 181,000,000 | ' | 0 | 0 | ' | ' | ' | 162,000,000 | 181,000,000 | 181,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate on short-term debt (percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.93% | ' | 6.49% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of committed unsecured revolving credit facilities | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity of line of credit | ' | ' | 1,000,000,000 | ' | ' | 800,000,000 | ' | 1,000,000,000 | ' | ' | ' | ' | 650,000,000 | ' | 350,000,000 | 3,000,000 | ' | 30,000,000 | 1,000,000,000 |
Current same-day borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum brrowing cpacity | $1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | $1,450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum capitalization percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' |
Basis spread on variable rate (percent) | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.25% | ' |
Commitment fee percentage on line of credit | ' | ' | ' | ' | ' | ' | ' | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' |
Commitment fee percentage for line of credit | ' | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Schedule_of_Operating_L
Leases (Schedule of Operating Lease Expense) (Details) (PUGET SOUND ENERGY, INC., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Operating Leases, Rent Expense, Net [Abstract] | ' | ' | ' |
Operating lease expense net of sublease receipts | $29,392 | $29,661 | $24,789 |
Leases_Schedule_of_Future_Mini
Leases (Schedule of Future Minimum Lease Payments for Non-cancellable Leases) (Details) (PUGET SOUND ENERGY, INC., USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
PUGET SOUND ENERGY, INC. | ' |
Operating | ' |
2014 | $16,603 |
2015 | 16,963 |
2016 | 18,922 |
2017 | 18,852 |
2018 | 16,051 |
Thereafter | 68,847 |
Total minimum lease payments | 156,238 |
Capital | ' |
2014 | 8,160 |
2015 | 8,160 |
2016 | 2,718 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Total minimum lease payments | $19,038 |
Accounting_for_Derivative_Inst2
Accounting for Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Derivative [Line Items] | ' | |
Expected losses reclassified to OCI related to cash flow hedges within twelve months | $700,000 | |
Electric Portfolio | ' | |
Derivative [Line Items] | ' | |
Collateral Already Posted, Aggregate Fair Value | 0 | |
PUGET SOUND ENERGY, INC. | ' | |
Derivative [Line Items] | ' | |
Expected losses reclassified to OCI related to cash flow hedges within twelve months | 2,100,000 | |
PUGET ENERGY | Interest Rate Swap | ' | |
Derivative [Line Items] | ' | |
Number of interest rate derivatives held | 2 | |
External Credit Rating, Investment Grade | Electric Portfolio | ' | |
Derivative [Line Items] | ' | |
Percentage of derivatives with credit risk exposure | 99.90% | |
External Credit Rating, Non Investment Grade | Electric Portfolio | ' | |
Derivative [Line Items] | ' | |
Percentage of derivatives with credit risk exposure | 0.10% | |
Credit Rating | Electric Portfolio | ' | |
Derivative [Line Items] | ' | |
Collateral Already Posted, Aggregate Fair Value | 0 | [1] |
Credit Rating | Natural Gas Portfolio | ' | |
Derivative [Line Items] | ' | |
Collateral Already Posted, Aggregate Fair Value | $1,000,000 | |
[1] | Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. |
Accounting_for_Derivative_Inst3
Accounting for Derivative Instruments and Hedging Activities (Schedule of Derivative Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivative [Line Items] | ' | ' | ||
Assets, Current | $18,867,000 | $6,869,000 | ||
Assets, Long-term | 7,733,000 | 14,814,000 | ||
Liabilities, Current | 48,049,000 | 177,519,000 | ||
Liabilities, Long-term | 38,162,000 | 83,276,000 | ||
PUGET ENERGY | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Liabilities, Current | 6,584,000 | 6,571,000 | ||
Liabilities, Long-term | 6,656,000 | 15,043,000 | ||
PUGET SOUND ENERGY, INC. | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Assets, Current | 18,867,000 | 6,869,000 | ||
Assets, Long-term | 7,733,000 | 14,814,000 | ||
Liabilities, Current | 41,465,000 | 170,948,000 | ||
Liabilities, Long-term | 31,523,000 | 68,323,000 | ||
Commodity Contract | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 26,600,000 | [1] | 21,683,000 | [1] |
Total derivative assets | 26,600,000 | 21,683,000 | ||
Total derivative liabilities | 72,988,000 | 239,271,000 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||
Derivative, Collateral, Obligation to Return Securities | -19,491,000 | -14,126,000 | ||
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 7,109,000 | 7,557,000 | ||
Derivative Liability, Fair Value, Gross Liability | 72,988,000 | [1] | 239,271,000 | [1] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | [2] | 0 | |
Derivative, Collateral, Right to Reclaim Securities | -19,491,000 | -14,126,000 | ||
Derivative, Collateral, Right to Reclaim Cash | 0 | [2] | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 53,497,000 | 225,145,000 | ||
Natural Gas Portfolio | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Offsetting regulatory assets | 27,600,000 | 96,000,000 | ||
Interest Rate Contract | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total derivative liabilities | 13,223,000 | [2] | 21,524,000 | [2] |
Derivative Liability, Fair Value, Gross Liability | 13,223,000 | [1],[2] | 21,524,000 | [1],[2] |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | ' | 0 | [2] | |
Derivative, Collateral, Right to Reclaim Securities | 0 | [2] | 0 | [2] |
Derivative, Collateral, Right to Reclaim Cash | ' | 0 | [2] | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 13,223,000 | [2] | 21,524,000 | [2] |
Not Designated as Hedging Instrument | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total derivative assets | 26,600,000 | [3] | 21,683,000 | [3] |
Total derivative liabilities | 86,211,000 | [4] | 260,795,000 | [4] |
Not Designated as Hedging Instrument | PUGET ENERGY | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Assets, Current | 18,867,000 | [3] | 6,869,000 | [3] |
Assets, Long-term | 7,733,000 | [3] | 14,814,000 | [3] |
Liabilities, Current | 48,049,000 | [4] | 177,519,000 | [4] |
Liabilities, Long-term | 38,162,000 | [4] | 83,276,000 | [4] |
Not Designated as Hedging Instrument | Interest Rate Swap | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative, Notional Amount | 450,000,000 | [5] | 450,000,000 | [5] |
Total derivative assets | 0 | [3],[5] | 0 | [3],[5] |
Total derivative liabilities | 13,223,000 | [4],[5] | 21,524,000 | [4],[5] |
Not Designated as Hedging Instrument | Electric Generation Fuel | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative, Nonmonetary Notional Amount | 145,600,000 | 129,700,000 | ||
Not Designated as Hedging Instrument | Purchased Electricity | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative, Nonmonetary Notional Amount | 8,600,000 | 10,700,000 | ||
Not Designated as Hedging Instrument | Electric Portfolio | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total derivative assets | 18,479,000 | [3] | 9,557,000 | [3] |
Total derivative liabilities | 37,312,000 | [4] | 131,193,000 | [4] |
Not Designated as Hedging Instrument | Natural Gas Portfolio | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Total derivative assets | 8,121,000 | [3],[6] | 12,126,000 | [3],[6] |
Total derivative liabilities | $35,676,000 | [4],[6] | $108,078,000 | [4],[6] |
Not Designated as Hedging Instrument | Gas Derivatives | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Derivative, Nonmonetary Notional Amount | 423,500,000 | [6] | 516,900,000 | [6] |
[1] | All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of Offset. | |||
[2] | Interest Rate Swap Contracts are only held at Puget Energy. | |||
[3] | Balance sheet location: Current and Long-term Unrealized gain on derivative instruments. | |||
[4] | Balance sheet location: Current and Long-term Unrealized loss on derivative instruments. | |||
[5] | Interest rate swap contracts are only held at Puget Energy. | |||
[6] | PSE had a net derivative liability and an offsetting regulatory asset of $27.6 million at December 31, 2013 and $96.0 million at December 31, 2012 related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, due to the PGA mechanism. |
Accounting_for_Derivative_Inst4
Accounting for Derivative Instruments and Hedging Activities (Schedule of Amounts Recognized in Statement of Income) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | ($102,744) | ($133,606) | $11,494 | |||
PUGET SOUND ENERGY, INC. | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -98,880 | -119,120 | 54,146 | |||
Not Designated as Hedging Instrument | Interest Rate Contract | Other Income (Deductions) | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -2,420 | 4,288 | 28,601 | |||
Not Designated as Hedging Instrument | Interest Rate Contract | Interest Expense | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | 5,904 | 29,727 | 46,045 | |||
Not Designated as Hedging Instrument | Commodity Contract | Unrealized (Gain) Loss on Derivative Instruments, Net | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -102,744 | [1] | -131,407 | [1] | 23,171 | [1] |
Not Designated as Hedging Instrument | Commodity Contract | Electric Generation Fuel | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | 27,008 | 66,762 | 98,208 | |||
Not Designated as Hedging Instrument | Commodity Contract | Purchased Electricity | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | 38,299 | 138,551 | 66,845 | |||
Not Designated as Hedging Instrument | PUGET ENERGY | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -33,953 | 107,921 | 262,870 | |||
Not Designated as Hedging Instrument | PUGET SOUND ENERGY, INC. | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -33,573 | 86,193 | 219,199 | |||
Not Designated as Hedging Instrument | PUGET SOUND ENERGY, INC. | Commodity Contract | Unrealized (Gain) Loss on Derivative Instruments, Net | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | -98,880 | -119,120 | 54,146 | |||
Not Designated as Hedging Instrument | PUGET SOUND ENERGY, INC. | Commodity Contract | Electric Generation Fuel | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | 27,008 | 66,762 | 98,208 | |||
Not Designated as Hedging Instrument | PUGET SOUND ENERGY, INC. | Commodity Contract | Purchased Electricity | ' | ' | ' | |||
Derivative Instruments, (Loss) Gain [Line Items] | ' | ' | ' | |||
Unrealized (gain) loss on derivative instruments | $38,299 | $138,551 | $66,845 | |||
[1] | For 2012 and 2011, the amounts differ from the amounts stated in the statements of income as they do not include amortization related to contracts that were recorded at fair value at the time of the February 2009 merger and subsequently designated as NPNS of $2.2 million for the year ended December 31, 2012 and $11.7 million for the year ended December 31, 2011. |
Accounting_for_Derivative_Inst5
Accounting for Derivative Instruments and Hedging Activities (Schedule of Amounts Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest Expense, Debt | $392,264 | $392,216 | $371,910 |
Purchased electricity | 541,905 | 622,288 | 771,405 |
PUGET ENERGY | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest Expense, Debt | 103,372 | 135,312 | 131,702 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest Expense, Debt | 261,264 | 246,811 | 231,212 |
Purchased electricity | 541,905 | 622,288 | 771,983 |
Cash Flow Hedging | PUGET ENERGY | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -4,562 | -18,382 | -41,520 |
Cash Flow Hedging | PUGET SOUND ENERGY, INC. | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -4,410 | -13,346 | -33,839 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | PUGET ENERGY | Interest Rate Contract | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest Expense, Debt | -4,505 | -17,811 | -39,143 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | PUGET ENERGY | Energy Related Derivative | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Purchased electricity | -57 | -671 | -1,698 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | PUGET SOUND ENERGY, INC. | Interest Rate Contract | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Interest Expense, Debt | -488 | -488 | -488 |
Electric Generation Fuel | Cash Flow Hedging | PUGET ENERGY | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 100 | -679 |
Electric Generation Fuel | Cash Flow Hedging | PUGET SOUND ENERGY, INC. | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 97 | -20,625 |
Purchased Electricity | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Cash Flow Hedging | PUGET SOUND ENERGY, INC. | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Purchased electricity | ($3,922) | ($12,955) | ($12,726) |
Accounting_for_Derivative_Inst6
Accounting for Derivative Instruments and Hedging Activities (Schedule of Effects of Non-hedging Derivative Instuments on Income) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | $102,744,000 | $133,606,000 | ($11,494,000) | |||
Derivative contracts classified as financing activities due to merger | -34,250,000 | -92,681,000 | -182,710,000 | |||
Other Comprehensive Income Reclassification Of Net Unrealized Gain Loss On Interest Rate Swaps During Period Net Of Tax | 2,928,000 | 11,577,000 | 25,443,000 | |||
Not Designated as Hedging Instrument | Interest Rate Contract | Other Deductions | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 2,420,000 | -4,288,000 | -28,601,000 | |||
Not Designated as Hedging Instrument | Interest Rate Contract | Interest Expense | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | -5,904,000 | -29,727,000 | -46,045,000 | |||
Not Designated as Hedging Instrument | Commodity contracts: | Unrealized (Gain) Loss on Derivative Instruments, Net | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 102,744,000 | [1] | 131,407,000 | [1] | -23,171,000 | [1] |
Not Designated as Hedging Instrument | Commodity contracts: | Electric Generation Fuel | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | -27,008,000 | -66,762,000 | -98,208,000 | |||
Not Designated as Hedging Instrument | Commodity contracts: | Purchased Electricity | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | -38,299,000 | -138,551,000 | -66,845,000 | |||
PUGET ENERGY | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Derivative Instruments, Amount Not Designated as Normal Purchase, Normal Sale | ' | -2,200,000 | -11,700,000 | |||
PUGET ENERGY | Not Designated as Hedging Instrument | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 33,953,000 | -107,921,000 | -262,870,000 | |||
PUGET SOUND ENERGY, INC. | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 98,880,000 | 119,120,000 | -54,146,000 | |||
PUGET SOUND ENERGY, INC. | Not Designated as Hedging Instrument | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 33,573,000 | -86,193,000 | -219,199,000 | |||
PUGET SOUND ENERGY, INC. | Not Designated as Hedging Instrument | Commodity contracts: | Unrealized (Gain) Loss on Derivative Instruments, Net | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | 98,880,000 | 119,120,000 | -54,146,000 | |||
PUGET SOUND ENERGY, INC. | Not Designated as Hedging Instrument | Commodity contracts: | Electric Generation Fuel | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | -27,008,000 | -66,762,000 | -98,208,000 | |||
PUGET SOUND ENERGY, INC. | Not Designated as Hedging Instrument | Commodity contracts: | Purchased Electricity | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Total gain (loss) recognized in income on derivatives | -38,299,000 | -138,551,000 | -66,845,000 | |||
Revolving Credit Facility | PUGET ENERGY | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Line of Credit Facility, Decrease, Repayments | 135,000,000 | ' | ' | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Revolving Credit Facility | PUGET ENERGY | Interest Rate Contract | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Other Comprehensive Income Reclassification Of Net Unrealized Gain Loss On Interest Rate Swaps During Period Net Of Tax | $700,000 | ' | ' | |||
[1] | For 2012 and 2011, the amounts differ from the amounts stated in the statements of income as they do not include amortization related to contracts that were recorded at fair value at the time of the February 2009 merger and subsequently designated as NPNS of $2.2 million for the year ended December 31, 2012 and $11.7 million for the year ended December 31, 2011. |
Accounting_for_Derivative_Inst7
Accounting for Derivative Instruments and Hedging Activities (Schedule of Contractual Contingent Liability Positions) (Details) (Electric Portfolio, USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | |
Fair Value Liability | ($35,025) | [1] |
Collateral Already Posted, Aggregate Fair Value | 0 | |
Contingent Collateral | 12,561 | |
Credit Rating | ' | |
Derivative [Line Items] | ' | |
Fair Value Liability | -12,561 | [1],[2] |
Collateral Already Posted, Aggregate Fair Value | 0 | [2] |
Contingent Collateral | 12,561 | [2] |
Requested Credit for Adequate Assurance | ' | |
Derivative [Line Items] | ' | |
Fair Value Liability | -22,415 | [1] |
Collateral Already Posted, Aggregate Fair Value | 0 | |
Contingent Collateral | 0 | |
Forward Value of Contract | ' | |
Derivative [Line Items] | ' | |
Fair Value Liability | -49 | [1],[3] |
Collateral Already Posted, Aggregate Fair Value | 0 | [3] |
Contingent Collateral | $0 | [3] |
[1] | Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. | |
[2] | Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. | |
[3] | Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Commodity Contract | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | $26,600 | $21,683 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 2 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 13,223 | 21,524 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 2 | Interest Rate Contract | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 13,223 | 21,524 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 3 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 3 | Interest Rate Contract | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 3 | Commodity Contract | Electric Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 3,818 | [1] | ' |
Derivative Liabilities | 19,239 | [1] | ' |
Fair Value, Measurements, Recurring | PUGET ENERGY | Level 3 | Commodity Contract | Natural Gas Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 2,673 | [1] | ' |
Derivative Liabilities | 3,034 | [1] | ' |
Fair Value, Measurements, Recurring | PUGET ENERGY | Total | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 13,223 | 21,524 | |
Fair Value, Measurements, Recurring | PUGET ENERGY | Total | Interest Rate Contract | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Liabilities | 13,223 | 21,524 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 2 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 20,109 | 8,028 | |
Derivative Liabilities | 50,715 | 190,090 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 2 | Commodity Contract | Electric Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 14,661 | 1,259 | |
Derivative Liabilities | 18,073 | 88,971 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 2 | Commodity Contract | Natural Gas Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 5,448 | 6,769 | |
Derivative Liabilities | 32,642 | 101,119 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 3 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 6,491 | 13,655 | |
Derivative Liabilities | 22,273 | 49,181 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 3 | Commodity Contract | Electric Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | ' | 8,298 | |
Derivative Liabilities | ' | 42,221 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Level 3 | Commodity Contract | Natural Gas Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | ' | 5,357 | |
Derivative Liabilities | ' | 6,960 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Total | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 26,600 | 21,683 | |
Derivative Liabilities | 72,988 | 239,271 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Total | Commodity Contract | Electric Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 18,479 | 9,557 | |
Derivative Liabilities | 37,312 | 131,192 | |
Fair Value, Measurements, Recurring | PUGET SOUND ENERGY, INC. | Total | Commodity Contract | Natural Gas Portfolio | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Derivative Assets | 8,121 | 12,126 | |
Derivative Liabilities | 35,676 | 108,079 | |
Carrying Amount | PUGET ENERGY | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 44,302 | 135,542 | |
Restricted Cash | 7,171 | 3,700 | |
Notes receivable and other | 53,449 | 63,802 | |
Total assets | 104,922 | 203,044 | |
Short Term Debt | 162,000 | 181,000 | |
Total liabilities | 162,000 | 181,000 | |
Carrying Amount | PUGET ENERGY | Level 1 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 44,302 | 135,542 | |
Restricted Cash | 7,171 | 3,700 | |
Notes receivable and other | 0 | 0 | |
Total assets | 51,473 | 139,242 | |
Short Term Debt | 162,000 | 181,000 | |
Total liabilities | 162,000 | 181,000 | |
Carrying Amount | PUGET ENERGY | Level 2 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 0 | 0 | |
Restricted Cash | 0 | 0 | |
Notes receivable and other | 53,449 | 63,802 | |
Total assets | 53,449 | 63,802 | |
Short Term Debt | 0 | 0 | |
Total liabilities | 0 | 0 | |
Carrying Amount | PUGET SOUND ENERGY, INC. | Level 1 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 44,111 | 135,530 | |
Restricted Cash | 7,171 | 3,700 | |
Notes receivable and other | 0 | 0 | |
Total assets | 51,282 | 139,230 | |
Short Term Debt | 162,000 | 181,000 | |
Short-term debt owed by PSE to Puget Energy | 0 | 0 | |
Total liabilities | 162,000 | 181,000 | |
Carrying Amount | PUGET SOUND ENERGY, INC. | Level 2 | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 0 | 0 | |
Restricted Cash | 0 | 0 | |
Notes receivable and other | 53,449 | 63,802 | |
Total assets | 53,449 | 63,802 | |
Short Term Debt | 0 | 0 | |
Short-term debt owed by PSE to Puget Energy | 29,598 | 29,598 | |
Total liabilities | 29,598 | 29,598 | |
Carrying Amount | PUGET SOUND ENERGY, INC. | Total | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Cash and Cash Equivalents | 44,111 | 135,530 | |
Restricted Cash | 7,171 | 3,700 | |
Notes receivable and other | 53,449 | 63,802 | |
Total assets | 104,731 | 203,032 | |
Short Term Debt | 162,000 | 181,000 | |
Short-term debt owed by PSE to Puget Energy | 29,598 | 29,598 | |
Total liabilities | $191,598 | $210,598 | |
[1] | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. |
Fair_Value_Measurements_Debt_a
Fair Value Measurements - Debt at Carrying and Fair Value (Details) (Income Approach Valuation Technique, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
PUGET SOUND ENERGY, INC. | Carrying Amount | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Excluding Current Maturities, Fair Value Disclosure | $3,763,258 | $3,776,258 |
PUGET SOUND ENERGY, INC. | Carrying Amount | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Junior subordinated notes | 250,000 | 250,000 |
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | 3,513,258 | 3,526,258 |
PUGET SOUND ENERGY, INC. | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Excluding Current Maturities, Fair Value Disclosure | 4,307,821 | 4,893,351 |
PUGET SOUND ENERGY, INC. | Total | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Junior subordinated notes | 269,366 | 264,842 |
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | 4,038,455 | 4,628,509 |
PUGET ENERGY | Carrying Amount | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Excluding Current Maturities, Fair Value Disclosure | 5,232,476 | 5,346,200 |
PUGET ENERGY | Carrying Amount | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Junior subordinated notes | 250,000 | 250,000 |
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | 4,683,476 | 4,662,200 |
Long-term Debt, Variable Rate, Net of Discount, Fair Value Disclosure | 299,000 | 434,000 |
PUGET ENERGY | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term Debt, Excluding Current Maturities, Fair Value Disclosure | 6,162,680 | 6,896,021 |
PUGET ENERGY | Total | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Junior subordinated notes | 269,366 | 264,842 |
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | 5,594,314 | 6,197,179 |
Long-term Debt, Variable Rate, Net of Discount, Fair Value Disclosure | $299,000 | $434,000 |
Fair_Value_Measurements_Unobse
Fair Value Measurements - Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | |||
Balance at beginning of period | ($35,526,000) | ($95,352,000) | ($91,295,000) | |||
Included in earnings | -10,491,000 | [1] | -21,362,000 | [1] | -56,499,000 | [1] |
Included in regulatory assets / liabilities | -945,000 | -1,937,000 | -250,000 | |||
Settlements | 10,855,000 | [2] | 60,102,000 | [2] | 37,482,000 | [2] |
Transferred into Level 3 | -7,799,000 | -55,845,000 | -306,000 | |||
Transferred out of Level 3 | 28,124,000 | 78,868,000 | 15,516,000 | |||
Balance at end of period | -15,782,000 | -35,526,000 | -95,352,000 | |||
Electric Portfolio | ' | ' | ' | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | |||
Balance at beginning of period | -33,924,000 | -90,311,000 | -87,436,000 | |||
Included in earnings | -10,491,000 | [1] | -21,362,000 | [1] | -56,499,000 | [1] |
Included in regulatory assets / liabilities | 0 | 0 | 0 | |||
Settlements | 11,609,000 | [2] | 59,133,000 | [2] | 40,900,000 | [2] |
Transferred into Level 3 | -7,799,000 | -55,548,000 | -759,000 | |||
Transferred out of Level 3 | 25,184,000 | 74,164,000 | 13,483,000 | |||
Balance at end of period | -15,421,000 | -33,924,000 | -90,311,000 | |||
Unrealized gain (loss) on derivative instruments, net | -13,400,000 | -15,200,000 | -55,200,000 | |||
Natural Gas Portfolio | ' | ' | ' | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | |||
Balance at beginning of period | -1,602,000 | -5,041,000 | -3,859,000 | |||
Included in earnings | 0 | [1] | 0 | [1] | 0 | [1] |
Included in regulatory assets / liabilities | -945,000 | -1,937,000 | -250,000 | |||
Settlements | -754,000 | [2] | 969,000 | [2] | -3,418,000 | [2] |
Transferred into Level 3 | 0 | -297,000 | 453,000 | |||
Transferred out of Level 3 | 2,940,000 | 4,704,000 | 2,033,000 | |||
Balance at end of period | ($361,000) | ($1,602,000) | ($5,041,000) | |||
[1] | Income Statement location: Unrealized (gain) loss on derivative instruments, net. Includes unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $(13.4) million, $(15.2) million, and $(55.2) million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
[2] | The Company had no purchases, sales or issuances during the reported periods. |
Fair_Value_Measurements_Valuat
Fair Value Measurements - Valuation Techniques (Details) (USD $) | Dec. 31, 2013 | Jul. 01, 2013 | Mar. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Mar. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 01, 2013 | Mar. 31, 2012 | Mar. 30, 2012 | Mar. 31, 2012 | ||
Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | PUGET ENERGY | PUGET ENERGY | Commodity Contract | Commodity Contract | Commodity Contract | Commodity Contract | Electric Portfolio | Electric Portfolio | Electric Portfolio | Natural Gas Portfolio | Natural Gas Portfolio | Natural Gas Portfolio | Priest Rapids Development | WNP-3 BPA Exchange Power Contract | Rock Island Project | Rock Island Project | Carrying Amount | Carrying Amount | Carrying Amount | Portion at Fair Value, Fair Value Disclosure | |||||
Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Weighted Average | Weighted Average | Weighted Average | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Electric Portfolio | Natural Gas Portfolio | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | Income Approach Valuation Technique | |||||||||||||||
Level 3 | Level 3 | PUGET ENERGY | PUGET ENERGY | Minimum | Maximum | Weighted Average | Minimum | Maximum | Weighted Average | ||||||||||||||||||||||||
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||||||||||||||||||||||||||||||||
Level 3 | Level 3 | ||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26,600,000 | $21,683,000 | $3,818,000 | [1] | $2,673,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | 19,239,000 | [1] | 3,034,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Price Per Megawatt-Hour | ' | ' | 10.36 | 30.85 | 16.94 | 49.78 | 65.35 | 70.89 | 34.98 | 48.47 | 49.4 | ' | ' | ' | ' | ' | ' | 17.06 | 47.09 | 38.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair Value Inputs, Price Per Millions of BTU | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.62 | 4.19 | 3.78 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair Value measurement, sensitivity analysis, hypothetical increase or decrease of market prices, result on fair value, percent | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair Value Measurements, Sensitivity Analysis, Hypothetical Increase or Decrease of Market Prices, Result on Fair Value | -7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Intangible asset fair value | ' | 484,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,200,000 | 33,600,000 | 113,300,000 | 96,700,000 | 13,500,000 | ||
Intangible asset carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,100,000 | 16,600,000 | ' | ' | ' | ' | ' | ' | ||
Fair Value Inputs, Power Contract Costs | ' | ' | 3,185,000 | 389,000 | 1,777,000 | 5,030,000 | 6,845,000 | 7,133,000 | 4,663,000 | 4,110,000 | 6,603,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,600,000 | ' | ' | ' | ' | ' | ||
[1] | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. |
Employee_Investment_Plans_Deta
Employee Investment Plans (Details) (PUGET SOUND ENERGY, INC., USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | 1.00% | 4.00% | ' | ' | ' |
Employer discretionary contribution amount | ' | ' | $14.60 | $14.50 | $13.50 |
6 percent | ' | ' | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | ' | 4.50% | ' | ' | ' |
Maximum annual contribution per employee, percent | ' | 6.00% | ' | ' | ' |
Cash Balance Formula | ' | ' | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | ' | ' | 100.00% | ' | ' |
Maximum annual contribution per employee, percent | ' | ' | 6.00% | ' | ' |
Employer additional contribution of base pay, percentage | ' | ' | 1.00% | ' | ' |
Cash Balance Formula | First 3 Percent | ' | ' | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | ' | 100.00% | ' | ' | ' |
Maximum annual contribution per employee, percent | ' | 3.00% | ' | ' | ' |
Cash Balance Formula | Second 3 Percent | ' | ' | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | ' | 50.00% | ' | ' | ' |
Maximum annual contribution per employee, percent | ' | 3.00% | ' | ' | ' |
Final Average Earnings Formula | ' | ' | ' | ' | ' |
Defined Contribution Plan | ' | ' | ' | ' | ' |
Employer matching contribution, percent | ' | ' | 55.00% | ' | ' |
Maximum annual contribution per employee, percent | ' | ' | 6.00% | ' | ' |
Retirement_Benefits_Change_in_
Retirement Benefits - Change in Net Benefit Obligation and Fair Value (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Qualified Pension Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of period | $616,290 | $565,997 | ' |
Service cost | 19,285 | 16,926 | 15,822 |
Interest cost | 24,754 | 25,986 | 26,263 |
Amendment | 0 | 0 | ' |
Actuarial loss/(gain) | -48,559 | 40,914 | ' |
Benefits paid | -38,453 | -33,533 | ' |
Medicare part D subsidy received | 0 | 0 | ' |
Benefit obligation at end of period | 573,317 | 616,290 | 565,997 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of period | 531,183 | 479,786 | ' |
Actual return on plan assets | 102,591 | 62,130 | ' |
Employer contribution | 20,400 | 22,800 | ' |
Benefits paid | -38,453 | -33,533 | ' |
Fair value of plan assets at end of period | 615,721 | 531,183 | 479,786 |
Funded status at end of period | 42,404 | -85,107 | ' |
SERP Pension Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of period | 51,795 | 48,370 | ' |
Service cost | 1,498 | 1,073 | ' |
Interest cost | 2,045 | 2,152 | ' |
Amendment | 478 | -122 | ' |
Actuarial loss/(gain) | -1,687 | 5,483 | ' |
Benefits paid | -6,850 | -5,161 | ' |
Medicare part D subsidy received | 0 | 0 | ' |
Benefit obligation at end of period | 47,279 | 51,795 | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of period | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Employer contribution | 6,850 | 5,161 | ' |
Benefits paid | -6,850 | -5,161 | ' |
Fair value of plan assets at end of period | 0 | 0 | ' |
Funded status at end of period | -47,279 | -51,795 | ' |
Other Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of period | 17,672 | 16,436 | ' |
Service cost | 134 | 139 | 113 |
Interest cost | 664 | 751 | 806 |
Amendment | 0 | 0 | ' |
Actuarial loss/(gain) | -2,240 | 1,199 | ' |
Benefits paid | -1,536 | -1,523 | ' |
Medicare part D subsidy received | 245 | 670 | ' |
Benefit obligation at end of period | 14,939 | 17,672 | 16,436 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of period | 7,541 | 7,206 | ' |
Actual return on plan assets | 1,861 | 1,100 | ' |
Employer contribution | 908 | 758 | ' |
Benefits paid | -1,536 | -1,523 | ' |
Fair value of plan assets at end of period | 8,774 | 7,541 | 7,206 |
Funded status at end of period | -6,165 | -10,131 | ' |
PUGET SOUND ENERGY, INC. | Qualified Pension Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Service cost | 19,285 | 16,926 | 15,822 |
Interest cost | $24,753 | $25,986 | $26,263 |
Retirement_Benefits_Amounts_Re
Retirement Benefits - Amounts Recognized (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Qualified Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Statement of Financial Position Consist of: [Abstract] | ' | ' |
Noncurrent assets | $42,404 | $0 |
Current liabilities | 0 | 0 |
Noncurrent liabilities | 0 | -85,107 |
Net assets / (liabilities) | 42,404 | -85,107 |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -112,055 | 14,988 |
Amortization of net (loss)/gain | -2,889 | -768 |
Prior service cost/(credit) | 0 | 0 |
Amortization of prior service cost/(credit) | 1,980 | 1,980 |
Total change in other comprehensive income for year | -112,964 | 16,200 |
SERP Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Statement of Financial Position Consist of: [Abstract] | ' | ' |
Noncurrent assets | 0 | ' |
Current liabilities | -3,981 | -5,040 |
Noncurrent liabilities | -43,298 | -46,755 |
Net assets / (liabilities) | -47,279 | -51,795 |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -1,687 | 5,483 |
Amortization of net (loss)/gain | -1,461 | -703 |
Prior service cost/(credit) | 478 | -122 |
Amortization of prior service cost/(credit) | 17 | 0 |
Total change in other comprehensive income for year | -2,653 | 4,658 |
Other Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Statement of Financial Position Consist of: [Abstract] | ' | ' |
Noncurrent assets | 0 | ' |
Current liabilities | -421 | -460 |
Noncurrent liabilities | -5,744 | -9,671 |
Net assets / (liabilities) | -6,165 | -10,131 |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -3,665 | 534 |
Amortization of net (loss)/gain | -70 | -53 |
Prior service cost/(credit) | 0 | 0 |
Amortization of prior service cost/(credit) | 0 | 0 |
Total change in other comprehensive income for year | -3,735 | 481 |
PUGET ENERGY | Qualified Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | -65,943 | 49,001 |
Prior service cost/(credit) | -15,762 | -17,741 |
Total | -81,705 | 31,260 |
PUGET ENERGY | SERP Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | 9,670 | 12,818 |
Prior service cost/(credit) | 373 | -122 |
Total | 10,043 | 12,696 |
PUGET ENERGY | Other Postretirement Benefit Plans, Defined Benefit | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | -2,972 | 763 |
Prior service cost/(credit) | 0 | 0 |
Total | -2,972 | 763 |
PUGET SOUND ENERGY, INC. | Qualified Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | 138,324 | 269,401 |
Prior service cost/(credit) | -12,525 | -14,098 |
Total | 125,799 | 255,303 |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -110,465 | 20,318 |
Amortization of net (loss)/gain | -20,612 | -15,015 |
Prior service cost/(credit) | 0 | 0 |
Amortization of prior service cost/(credit) | 1,573 | 1,573 |
Amortization of transition obligation | 0 | 0 |
Total change in other comprehensive income for year | -129,504 | 6,876 |
PUGET SOUND ENERGY, INC. | SERP Pension Benefits | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | 14,050 | 17,928 |
Prior service cost/(credit) | 383 | -110 |
Total | 14,433 | 17,818 |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -1,687 | 5,483 |
Amortization of net (loss)/gain | -2,191 | -1,433 |
Prior service cost/(credit) | 477 | -122 |
Amortization of prior service cost/(credit) | 16 | -293 |
Amortization of transition obligation | 0 | 0 |
Total change in other comprehensive income for year | -3,385 | 3,635 |
PUGET SOUND ENERGY, INC. | Other Benefits | ' | ' |
Other changes (pre-tax) in plan assets and benefit obligations recognized in other comprehensive income: | ' | ' |
Net loss/(gain) | -3,665 | 534 |
Amortization of net (loss)/gain | 284 | 245 |
Prior service cost/(credit) | 0 | 0 |
Amortization of prior service cost/(credit) | -30 | -35 |
Amortization of transition obligation | 0 | -50 |
Total change in other comprehensive income for year | -3,411 | 694 |
PUGET SOUND ENERGY, INC. | Other Postretirement Benefit Plans, Defined Benefit | ' | ' |
Defined Benefit Plan, Amounts Recognized in Accumulated Other Comprehensive Income Consist of: [Abstract] | ' | ' |
Net loss/(gain) | -5,556 | -2,175 |
Prior service cost/(credit) | 6 | 36 |
Total | ($5,550) | ($2,139) |
Retirement_Benefits_Net_Period
Retirement Benefits - Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Qualified Pension Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | $19,285 | $16,926 | $15,822 |
Interest cost | 24,754 | 25,986 | 26,263 |
Expected return on plan assets | -39,095 | -36,203 | -35,344 |
Amortization of prior service cost/(credit) | -1,980 | -1,980 | -1,980 |
Amortization of net loss | 2,889 | 768 | 0 |
Net periodic benefit cost | 5,853 | 5,497 | 4,761 |
SERP Pension Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 1,498 | 1,073 | 1,241 |
Interest cost | 2,045 | 2,152 | 2,192 |
Amortization of prior service cost/(credit) | -17 | 0 | 0 |
Amortization of net loss | 1,461 | 702 | 360 |
Net periodic benefit cost | 4,987 | 3,927 | 3,793 |
Other Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 134 | 139 | 113 |
Interest cost | 664 | 751 | 806 |
Expected return on plan assets | -436 | -435 | -502 |
Amortization of prior service cost/(credit) | 0 | 0 | 0 |
Amortization of net loss | 69 | 53 | -46 |
Net periodic benefit cost | 431 | 508 | 371 |
PUGET SOUND ENERGY, INC. | Qualified Pension Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 19,285 | 16,926 | 15,822 |
Interest cost | 24,753 | 25,986 | 26,263 |
Expected return on plan assets | -40,685 | -41,533 | -44,128 |
Amortization of prior service cost/(credit) | -1,573 | -1,573 | -1,573 |
Amortization of net loss | 20,612 | 15,015 | 10,250 |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic benefit cost | 22,392 | 14,821 | 6,634 |
PUGET SOUND ENERGY, INC. | SERP Pension Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 1,498 | 1,073 | 1,241 |
Interest cost | 2,045 | 2,152 | 2,192 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost/(credit) | -16 | 293 | 563 |
Amortization of net loss | 2,191 | 1,432 | 1,194 |
Amortization of transition obligation | 0 | 0 | 0 |
Net periodic benefit cost | 5,718 | 4,950 | 5,190 |
PUGET SOUND ENERGY, INC. | Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 134 | 139 | 113 |
Interest cost | 664 | 751 | 806 |
Expected return on plan assets | -436 | -435 | -502 |
Amortization of prior service cost/(credit) | 30 | 35 | 63 |
Amortization of net loss | -284 | -245 | -481 |
Amortization of transition obligation | 0 | 50 | 50 |
Net periodic benefit cost | $108 | $295 | $49 |
Retirement_Benefits_Assumption
Retirement Benefits - Assumptions (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Benefit Obligation Assumptions | ' | ' | ' | |||
Discount rate | 5.10% | ' | ' | |||
Assumed Health Care Cost Trend Rates | ' | ' | ' | |||
Medical inflation rate assumed for next fiscal year | 8.20% | ' | ' | |||
Ultimate health care cost trend rate | 4.30% | ' | ' | |||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | ' | ' | ' | |||
1% Increase, Effect on post-retirement benefit obligation | 66 | 92 | ' | |||
1% Decrease, Effect on post-retirement benefit obligation | -66 | -92 | ' | |||
1% Increase, Effect on service and interest cost components | 3 | 4 | ' | |||
1% Decrease, Effect on service and interest cost components | -3 | -4 | ' | |||
Qualified Pension Benefits | ' | ' | ' | |||
Benefit Obligation Assumptions | ' | ' | ' | |||
Discount rate | 5.10% | [1] | 4.15% | [1] | 4.75% | [1] |
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 0.00% | 0.00% | 0.00% | |||
Benefit Cost Assumptions | ' | ' | ' | |||
Discount rate | 4.15% | 4.75% | 5.15% | |||
Rate of plan assets | 7.75% | 7.75% | 7.75% | |||
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 0.00% | 0.00% | 0.00% | |||
SERP Pension Benefits | ' | ' | ' | |||
Benefit Obligation Assumptions | ' | ' | ' | |||
Discount rate | 5.10% | [1] | 4.15% | [1] | 4.75% | [1] |
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 0.00% | 0.00% | 0.00% | |||
Benefit Cost Assumptions | ' | ' | ' | |||
Discount rate | 4.15% | 4.75% | 5.15% | |||
Rate of plan assets | 0.00% | 0.00% | 0.00% | |||
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 0.00% | 0.00% | 0.00% | |||
Other Benefits | ' | ' | ' | |||
Benefit Obligation Assumptions | ' | ' | ' | |||
Discount rate | 5.10% | [1] | 4.15% | [1] | 4.75% | [1] |
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 6.80% | 7.50% | 7.50% | |||
Benefit Cost Assumptions | ' | ' | ' | |||
Discount rate | 4.15% | 4.75% | 5.15% | |||
Rate of plan assets | 6.90% | 7.50% | 7.80% | |||
Rate of compensation increase | 4.50% | 4.50% | 4.50% | |||
Medical trend rate | 8.20% | 7.50% | 8.00% | |||
[1] | The Company calculates the present value of the pension liability using a discount rate of 5.10% which represents the single-rate equivalent of the AA rated corporate bond yield curve. |
Retirement_Benefits_Future_Ben
Retirement Benefits - Future Benefit Payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Qualified Pension Benefits | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
2014 | $40,000 |
2015 | 40,200 |
2016 | 40,200 |
2017 | 41,100 |
2018 | 42,300 |
2019-2023 | 226,900 |
SERP Pension Benefits | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
2014 | 3,981 |
2015 | 1,985 |
2016 | 2,541 |
2017 | 1,900 |
2018 | 5,177 |
2019-2023 | 18,392 |
Other Benefits | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' |
2014 | 1,222 |
2015 | 1,193 |
2016 | 1,242 |
2017 | 1,197 |
2018 | 1,149 |
2019-2023 | 6,276 |
2014, without Medicare Part D subsidy | 1,604 |
2015, without Medicare Part D subsidy | 1,591 |
2016, without Medicare Part D subsidy | 1,555 |
2017, without Medicare Part D subsidy | 1,519 |
2018, without Medicare Part D subsidy | 1,479 |
2019-2023, without Medicare Part D subsidy | $6,709 |
Retirement_Benefits_Plan_Asset
Retirement Benefits - Plan Asset Allocation (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Other Benefits | Other Benefits | Other Benefits | SERP Pension Benefits | SERP Pension Benefits | SERP Pension Benefits | Domestic large cap equity | Domestic small cap equity | Non-U.S. equity | Fixed income | Real estate | Absolute return | Cash and cash equivalents | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Subtotal | Subtotal | Subtotal | Subtotal | Subtotal | Subtotal | Subtotal | Subtotal | Equities: | Equities: | Equities: | Equities: | Equities: | Equities: | Equities: | Equities: | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic large cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Domestic small cap equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Non-U.S. equity | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Tactical asset allocation | Fixed income | Fixed income | Fixed income | Fixed income | Fixed income | Fixed income | Fixed income | Fixed income | Absolute return | Absolute return | Absolute return | Absolute return | Absolute return | Absolute return | Absolute return | Absolute return | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Mutual Funds | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Cash and cash equivalents | Net (payable) receivable | Net (payable) receivable | Accrued income | Accrued income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 3 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Total | Total | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | Qualified Pension Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 3 | Level 3 | Level 3 | Level 1 | Level 1 | Level 2 | Level 2 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Total | Total | Level 1 | Level 1 | Level 2 | Level 2 | Total | Total | Total | Total | Total | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation, Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 0.00% | 10.00% | 15.00% | 0.00% | 5.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | 9.00% | 25.00% | 25.00% | 0.00% | 10.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target Allocation, Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 15.00% | 30.00% | 30.00% | 10.00% | 15.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | $615,721 | $531,183 | $479,786 | $8,774 | $7,541 | $7,206 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | $62,278 | $55,614 | $45,319 | $615,721 | $531,183 | $8,703 | $7,472 | $71 | $69 | $8,774 | $7,541 | $431,936 | $364,914 | $121,721 | $110,638 | $62,278 | $55,615 | $615,935 | $531,167 | $296,929 | $244,975 | $114,667 | $78,194 | $0 | $0 | $411,596 | $323,169 | $157,874 | [1] | $136,994 | [1] | $35,851 | [1] | $28,890 | [1] | $0 | [1] | $0 | [1] | $193,725 | [1] | $165,884 | [1] | $62,867 | [2] | $51,264 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $0 | [2] | $62,867 | [2] | $51,264 | [2] | $76,188 | [3] | $56,717 | [3] | $78,816 | [3] | $49,304 | [3] | $0 | [3] | $0 | [3] | $155,004 | [3] | $106,021 | [3] | $0 | [4] | $0 | [4] | $0 | [4] | $26,425 | [4] | $0 | [4] | $0 | [4] | $0 | [4] | $26,425 | [4] | $135,007 | [5] | $119,939 | [5] | $0 | [5] | $0 | [5] | $0 | [5] | $0 | [5] | $135,007 | [5] | $119,939 | [5] | $0 | [6] | $0 | [6] | $0 | [6] | $0 | [6] | $62,278 | [6] | $55,615 | [6] | $62,278 | [6] | $55,615 | [6] | $0 | $0 | $0 | $8,703 | [7] | $7,472 | [7] | $0 | [7] | $0 | [7] | $8,703 | [7] | $7,472 | [7] | $0 | [8] | $0 | [8] | $7,054 | [8] | $6,019 | [8] | $0 | [8] | $0 | [8] | $7,054 | [8] | $6,019 | [8] | $0 | [9] | $0 | [9] | $71 | [9] | $69 | [9] | $71 | [9] | $69 | [9] | ($417) | ($173) | $203 | $189 |
[1] | Domestic large cap equity investments are comprised of (1) common stock, and a (2) commingled fund. Investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Domestic small cap equity investments are comprised of (1) common stock and a (2) mutual fund. The investments in common stock are valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Non – US Equity investments are comprised of a (1) mutual fund; and a (2) commingled fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. The investment in the commingled fund is valued at the net asset value per share multiplied by the number of shares held as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The tactical asset allocation investment is comprised of a commingled fund, which is valued at the net asset value per share multiplied by the number of shares held as of the measurement date. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Fixed income securities consist of a mutual fund. The investment in the mutual fund is valued using quoted market prices multiplied by the number of shares owned as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | As of December 31, 2013 absolute return investments consist of two partnerships. The partnerships are valued using the financial reports as of December 31, 2013. These investments are a Level 3 under ASC 820 because the significant valuation inputs are primarily internal to the partnerships with little third party involvement. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | This is a publicly traded balanced mutual fund. The fund seeks regular income, conservation of principal, and an opportunity for long-term growth of principal and income. The fair value is determined by taking the number of shares owned by the plan, and multiplying by the market price as of December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | The investment consists of a money market fund, which is valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[9] | This is a money market fund. The money market fund investments are valued at the net asset value per share of $1.00 per unit as of December 31, 2013. The money market fund invests primarily in commercial paper, notes, repurchase agreements, and other evidences of indebtedness which are payable on demand or short-term in nature. |
Retirement_Benefits_Fair_Value
Retirement Benefits - Fair Value Level 3 Rollforward (Details) (Qualified Pension Benefits, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
In Thousands, unless otherwise specified | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |||||||||
Level 3 | Level 3 | Partnership | Partnership | Mutual Funds | Mutual Funds | ||||||||||
Level 3 | Level 3 | Level 3 | Level 3 | ||||||||||||
Change in plan assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Fair value of plan assets at beginning of period | $615,721 | $531,183 | $479,786 | $55,614 | $45,319 | $55,614 | $45,319 | $0 | $0 | ||||||
Additional investments | ' | ' | ' | 0 | 7,021 | 0 | 7,021 | 0 | 0 | ||||||
Distributions | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Realized losses on distributions | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Unrealized gains relating to instruments still held at the reporting date | ' | ' | ' | 6,664 | 3,274 | 6,664 | 3,274 | 0 | 0 | ||||||
Transferred out of level 3 | ' | ' | ' | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Fair value of plan assets at end of period | $615,721 | $531,183 | $479,786 | $62,278 | $55,614 | $62,278 | $55,614 | $0 | $0 | ||||||
[1] | The plan had no transfers between level 2 and level 1 during the years ended December 31, 2013 or 2012. |
Retirement_Benefits_Textuals_D
Retirement Benefits - Textuals (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Qualified Pension Benefits | SERP Pension Benefits | Other Benefits | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | Cash Balance Formula | Final Average Earnings Formula | |
Qualified Pension Benefits | SERP Pension Benefits | Other Benefits | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent | ' | ' | ' | 1.00% | 4.00% | ' | ' | ' | 100.00% | 55.00% |
Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year, Net Gain (Loss) | ' | ($0.90) | ' | ' | ' | ($13) | ($1.50) | $0.60 | ' | ' |
Pension and Other Postretirement Benefit Plans, Net Prior Service Cost or Credit, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 2 | ' | ' | ' | ' | 1.6 | ' | ' | ' | ' |
Estimated Future Employer Contributions in Current Fiscal Year | $12 | $4 | $0.40 | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $0 | $4,268 | $785 |
State | 0 | 0 | -50 |
Deferred: | ' | ' | ' |
Federal | 122,559 | 100,701 | 32,706 |
State | -151 | -244 | 319 |
Total income tax expense | 122,408 | 104,725 | 33,760 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Current: | ' | ' | ' |
Federal | 0 | 4,268 | 653 |
State | 0 | 0 | 0 |
Deferred: | ' | ' | ' |
Federal | 160,886 | 145,040 | 76,369 |
State | 0 | 0 | 1,095 |
Total income tax expense | $160,886 | $149,308 | $78,117 |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosures [Line Items] | ' | ' | ' |
Federal statutory rate | 35.00% | ' | ' |
Income Tax Reconciliation [Abstract] | ' | ' | ' |
Income taxes at the statutory rate | $142,847 | $132,491 | $54,968 |
Production tax credit | -22,414 | -22,188 | -23,310 |
AFUDC excluded from taxable income | -9,406 | -16,543 | -22,861 |
Capitalized interest | 7,294 | 9,757 | 17,592 |
Utility plant differences | 9,527 | 8,674 | 5,849 |
Income Tax Reconciliation, Treasury Grant | -7,651 | -1,007 | 0 |
Tenaska gas contract | 1 | -4,687 | 7,094 |
Other - net | 2,210 | -1,772 | -5,572 |
Total income tax expense | 122,408 | 104,725 | 33,760 |
Effective tax rate | 30.00% | 27.70% | 21.50% |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Income Tax Reconciliation [Abstract] | ' | ' | ' |
Income taxes at the statutory rate | 180,955 | 176,917 | 98,783 |
Production tax credit | -22,414 | -22,188 | -23,310 |
AFUDC excluded from taxable income | -9,406 | -16,543 | -22,861 |
Capitalized interest | 7,294 | 9,757 | 17,592 |
Utility plant differences | 9,527 | 8,674 | 5,849 |
Income Tax Reconciliation, Treasury Grant | -7,651 | -1,007 | 0 |
Tenaska gas contract | 1 | -4,687 | 7,094 |
Other - net | 2,580 | -1,615 | -5,030 |
Total income tax expense | $160,886 | $149,308 | $78,117 |
Effective tax rate | 31.10% | 29.50% | 27.70% |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Taxes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Liabilities, Gross | ' | ' |
Utility plant and equipment | $1,625,107 | $1,409,216 |
Regulatory asset for income taxes | 146,867 | 119,844 |
Fair value of debt instruments | 76,991 | 86,831 |
Other deferred tax liabilities | 202,189 | 151,820 |
Subtotal deferred tax liabilities | 2,051,154 | 1,767,711 |
Deferred Tax Assets, Gross | ' | ' |
Net operating loss carryforward | -374,606 | -298,440 |
Production tax credit carryforward | -135,531 | -113,117 |
Regulatory liability on production tax credit | -71,880 | -59,811 |
Fair value of derivative instruments | -7,166 | -44,835 |
Other deferred tax assets | -60,970 | -43,309 |
Subtotal deferred tax assets | 650,153 | 559,512 |
Total | 1,401,001 | 1,208,199 |
PUGET SOUND ENERGY, INC. | ' | ' |
Deferred Tax Liabilities, Gross | ' | ' |
Utility plant and equipment | 1,625,107 | 1,409,216 |
Regulatory asset for income taxes | 146,350 | 119,279 |
Other deferred tax liabilities | 131,977 | 132,304 |
Subtotal deferred tax liabilities | 1,903,434 | 1,660,799 |
Deferred Tax Assets, Gross | ' | ' |
Net operating loss carryforward | -173,068 | -134,513 |
Production tax credit carryforward | -135,531 | -113,117 |
Regulatory liability on production tax credit | -71,880 | -59,811 |
Fair value of derivative instruments | -9,988 | -46,139 |
Other deferred tax assets | -69,175 | -100,632 |
Subtotal deferred tax assets | 459,642 | 454,212 |
Total | $1,443,792 | $1,206,587 |
Income_Taxes_Balance_Sheet_Loc
Income Taxes - Balance Sheet Location (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosures [Line Items] | ' | ' |
Current deferred taxes | ($86,004) | ($53,437) |
Non-current deferred taxes | 1,487,005 | 1,261,636 |
Total | 1,401,001 | 1,208,199 |
PUGET SOUND ENERGY, INC. | ' | ' |
Income Tax Disclosures [Line Items] | ' | ' |
Current deferred taxes | -141,058 | -68,015 |
Non-current deferred taxes | 1,584,850 | 1,274,602 |
Total | $1,443,792 | $1,206,587 |
Litigation_Details
Litigation (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 06, 2013 | Mar. 06, 2013 | Mar. 06, 2013 | Mar. 06, 2013 | Mar. 06, 2013 |
Pending Litigation | Pending Litigation | Colstrip Unit One and Two | Colstrip Unit Three and Four | Sierra Club and Montana Environmental Information Center [Member] | Sierra Club and Montana Environmental Information Center [Member] | Sierra Club and Montana Environmental Information Center [Member] | Sierra Club and Montana Environmental Information Center [Member] | Sierra Club and Montana Environmental Information Center [Member] | ||
Pending Litigation | Failure to Update Title V Permit | Major Modifications to Title V Permit | Title V compliance certifications incomplete | Opacity | ||||||
Pending Litigation | Pending Litigation | Pending Litigation | Pending Litigation | |||||||
claim | claim | claim | claim | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Residential Exchange Program Repayment | $57,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | 50.00% | 25.00% | ' | ' | ' | ' | ' |
Loss Contingency, Pending Claims, Number | ' | ' | ' | ' | ' | ' | 1 | 36 | 1 | 1 |
Loss Contingency, Damages Sought, Value | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' |
Litigation claims accrual | ' | $1,400,000 | $3,400,000 | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
MW | MWh | MWh | |||
MWh | |||||
Contracts | |||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percentage of Company's energy output (percent) | 15.10% | ' | ' | ' | |
Average cost of Company's energy output (US$ per kWh) | 0.018 | ' | ' | ' | |
Number of Public Utility Districts with long term purchase agreements | 3 | ' | ' | ' | |
Contract expenses | $63,365,000 | $70,188,000 | $81,828,000 | ' | |
Megawatt Capacity | 750 | ' | ' | ' | |
Estimated 2014 Costs | 79,988,000 | ' | ' | ' | |
2014 Debt Service Costs | 33,100,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 15,201,000 | ' | ' | ' | |
Debt Outstanding | 279,732,000 | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 138,299,000 | ' | ' | ' | |
2015 | 202,436,000 | ' | ' | ' | |
2016 | 238,458,000 | ' | ' | ' | |
2017 | 268,213,000 | ' | ' | ' | |
2018 | 253,882,000 | ' | ' | ' | |
Thereafter | 2,082,032,000 | ' | ' | ' | |
Total | 3,183,320,000 | ' | ' | ' | |
Total energy obtained during period under purchased power contracts (MWh) | 10,700,000 | ' | 6,100,000 | 8,500,000 | |
Cost incurred during period to provide energy under purchased power contracts | 348,700,000 | ' | 203,100,000 | 391,800,000 | |
Daily take obligation under long-term service contract (percent) | 100.00% | ' | ' | ' | |
Daily delivery obligation under long-term service contract (percent) | 100.00% | ' | ' | ' | |
Columbia River projects | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 67,094,000 | ' | ' | ' | |
2015 | 69,401,000 | ' | ' | ' | |
2016 | 70,924,000 | ' | ' | ' | |
2017 | 71,091,000 | ' | ' | ' | |
2018 | 62,477,000 | ' | ' | ' | |
Thereafter | 601,448,000 | ' | ' | ' | |
Total | 942,435,000 | ' | ' | ' | |
Other utilities | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 17,277,000 | ' | ' | ' | |
2015 | 16,718,000 | ' | ' | ' | |
2016 | 17,229,000 | ' | ' | ' | |
2017 | 10,174,000 | ' | ' | ' | |
2018 | 0 | ' | ' | ' | |
Thereafter | 0 | ' | ' | ' | |
Total | 61,398,000 | ' | ' | ' | |
Non-utility contracts | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 53,928,000 | ' | ' | ' | |
2015 | 116,317,000 | ' | ' | ' | |
2016 | 150,305,000 | ' | ' | ' | |
2017 | 186,948,000 | ' | ' | ' | |
2018 | 191,405,000 | ' | ' | ' | |
Thereafter | 1,480,584,000 | ' | ' | ' | |
Total | 2,179,487,000 | ' | ' | ' | |
Gas-fired generation facility | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 118,600,000 | ' | ' | ' | |
Purchase obligation under longer term (2013 through 2029) agreements | 318,100,000 | ' | ' | ' | |
Short-term energy supply contracts | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 32,500,000 | ' | ' | ' | |
2015 | 10,800,000 | ' | ' | ' | |
2016 | 2,700,000 | ' | ' | ' | |
Firm transportation service | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 168,936,000 | ' | ' | ' | |
2015 | 166,452,000 | ' | ' | ' | |
2016 | 159,899,000 | ' | ' | ' | |
2017 | 156,205,000 | ' | ' | ' | |
2018 | 133,281,000 | ' | ' | ' | |
Thereafter | 487,739,000 | ' | ' | ' | |
Total | 1,272,512,000 | ' | ' | ' | |
Deman charges incurred under firm supply and service contracts | 160,800,000 | ' | ' | ' | |
Firm storage service | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 6,528,000 | ' | ' | ' | |
2015 | 5,337,000 | ' | ' | ' | |
2016 | 5,209,000 | ' | ' | ' | |
2017 | 5,209,000 | ' | ' | ' | |
2018 | 1,407,000 | ' | ' | ' | |
Thereafter | 2,793,000 | ' | ' | ' | |
Total | 26,483,000 | ' | ' | ' | |
Deman charges incurred under firm supply and service contracts | 6,600,000 | ' | ' | ' | |
Firm natural gas supply | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 175,464,000 | ' | ' | ' | |
2015 | 171,789,000 | ' | ' | ' | |
2016 | 165,108,000 | ' | ' | ' | |
2017 | 161,414,000 | ' | ' | ' | |
2018 | 134,688,000 | ' | ' | ' | |
Thereafter | 490,532,000 | ' | ' | ' | |
Total | 1,298,995,000 | ' | ' | ' | |
Combustion turbines | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
Deman charges incurred under firm supply and service contracts | 39,500,000 | ' | ' | ' | |
Energy production service contracts | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 26,714,000 | [1] | ' | ' | ' |
2015 | 33,068,000 | [1] | ' | ' | ' |
2016 | 15,728,000 | [1] | ' | ' | ' |
2017 | 5,658,000 | [1] | ' | ' | ' |
2018 | 4,165,000 | [1] | ' | ' | ' |
Thereafter | 27,182,000 | [1] | ' | ' | ' |
Total | 112,515,000 | [1] | ' | ' | ' |
Automated meter reading system | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 23,443,000 | [2] | ' | ' | ' |
2015 | 24,176,000 | [2] | ' | ' | ' |
2016 | 13,063,000 | [2] | ' | ' | ' |
2017 | 9,558,000 | [2] | ' | ' | ' |
2018 | 9,994,000 | [2] | ' | ' | ' |
Thereafter | 80,106,000 | [2] | ' | ' | ' |
Total | 160,340,000 | [2] | ' | ' | ' |
Service contract obligations | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
2014 | 50,157,000 | ' | ' | ' | |
2015 | 57,244,000 | ' | ' | ' | |
2016 | 28,791,000 | ' | ' | ' | |
2017 | 15,216,000 | ' | ' | ' | |
2018 | 14,159,000 | ' | ' | ' | |
Thereafter | 107,288,000 | ' | ' | ' | |
Total | 272,855,000 | ' | ' | ' | |
Minimum | Combustion turbines | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
Remaining terms under contract | 'less than one year | ' | ' | ' | |
Maximum | Combustion turbines | ' | ' | ' | ' | |
Payment Obligations for Power Purchases | ' | ' | ' | ' | |
Remaining terms under contract | '31 years | ' | ' | ' | |
Rock Island Project | ' | ' | ' | ' | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percent of Output | 25.00% | ' | ' | ' | |
Megawatt Capacity | 156 | ' | ' | ' | |
Estimated 2014 Costs | 29,182,000 | ' | ' | ' | |
2014 Debt Service Costs | 11,288,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 6,412,000 | ' | ' | ' | |
Debt Outstanding | 102,522,000 | ' | ' | ' | |
Rocky Reach Project | ' | ' | ' | ' | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percent of Output | 25.00% | ' | ' | ' | |
Megawatt Capacity | 325 | ' | ' | ' | |
Estimated 2014 Costs | 26,484,000 | ' | ' | ' | |
2014 Debt Service Costs | 8,787,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 3,563,000 | ' | ' | ' | |
Debt Outstanding | 58,055,000 | ' | ' | ' | |
Wells Project | ' | ' | ' | ' | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percent of Output | 29.90% | ' | ' | ' | |
Megawatt Capacity | 251 | ' | ' | ' | |
Estimated 2014 Costs | 16,258,000 | ' | ' | ' | |
2014 Debt Service Costs | 8,675,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 2,678,000 | ' | ' | ' | |
Debt Outstanding | 71,679,000 | ' | ' | ' | |
Priest Rapids Development | ' | ' | ' | ' | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percent of Output | 0.80% | ' | ' | ' | |
Megawatt Capacity | 9 | ' | ' | ' | |
Estimated 2014 Costs | 4,032,000 | ' | ' | ' | |
2014 Debt Service Costs | 2,175,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 1,274,000 | ' | ' | ' | |
Debt Outstanding | 23,738,000 | ' | ' | ' | |
Wanapum Development | ' | ' | ' | ' | |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | |
Percent of Output | 0.80% | ' | ' | ' | |
Megawatt Capacity | 9 | ' | ' | ' | |
Estimated 2014 Costs | 4,032,000 | ' | ' | ' | |
2014 Debt Service Costs | 2,175,000 | ' | ' | ' | |
Interest included in 2014 Debt Service Costs | 1,274,000 | ' | ' | ' | |
Debt Outstanding | $23,738,000 | ' | ' | ' | |
[1] | Energy production service contracts include operations and maintenance contracts on Mint Farm, Wild Horse, Goldendale, Hopkins Ridge, Frederickson 1, Ferndale and Lower Snake River facilities. | ||||
[2] | Automated meter reading system contractual obligation is the service component of the Landis and Gyr contract. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 10, 2012 | Jun. 18, 2012 | Feb. 10, 2012 | Jun. 03, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 04, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 10, 2012 | Jun. 03, 2011 | Jun. 03, 2011 | Dec. 31, 2011 | |
Co-manager and Underwriter | Co-manager and Underwriter | Co-manager and Underwriter | Senior Secured Note | Senior Secured Note | Term Loan | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET SOUND ENERGY, INC. | PUGET ENERGY | PUGET ENERGY | PUGET ENERGY | PUGET ENERGY | PUGET ENERGY | PUGET ENERGY | PUGET ENERGY | |||||
Contracts | 6.000% Senior Secured Note Due 2021 | 6.000% Senior Secured Note Due 2021 | PUGET ENERGY | PUGET ENERGY | Senior secured credit facility | Senior secured credit facility | Senior Secured Note | Senior Secured Note | Term Loan | ||||||||||||||||
PUGET ENERGY | Co-manager and Underwriter | 6.000% Senior Secured Note Due 2021 | Co-manager and Underwriter | ||||||||||||||||||||||
Co-manager and Underwriter | |||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity of line of credit | ' | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000,000 | ' | ' | ' | $30,000,000 | ' | ' | ' | $1,000,000,000 | ' | ' | ' |
Debt instrument variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' |
Short-term note owed to parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,598,000 | 29,598,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable interest rate on credift facility at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.33% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 5,462,272,000 | ' | ' | ' | ' | ' | ' | 500,000,000 | 500,000,000 | 1,225,000,000 | 3,763,272,000 | ' | ' | ' | ' | ' | ' | ' | 1,699,000,000 | ' | ' | ' | ' | 500,000,000 | 782,000,000 |
Repayments of long-term debt | 309,860,000 | 1,273,000,000 | 769,000,000 | ' | ' | ' | ' | ' | ' | ' | 174,860,000 | 0 | 285,000,000 | ' | ' | ' | ' | ' | 135,000,000 | 843,000,000 | 484,000,000 | ' | 484,000,000 | ' | ' |
Number of interest rate derivatives held | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate swaps | ' | ' | ' | ' | ' | ' | 444,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of swap instrument settled | ' | ' | ' | ' | $300,000,000 | $67,500,000 | $77,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
Segment Reporting Information [Line Items] | ' |
Number of operating segments | 1 |
PUGET SOUND ENERGY, INC. | ' |
Segment Reporting Information [Line Items] | ' |
Area of service territory (sqmi) | 6,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Changes in AOCI, net of tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | $47,715 | ($32,829) | ' |
Interest Rate Swap | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -3,022 | -14,599 | -40,041 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,928 | 11,577 | 25,442 |
Other Comprehensive Income (Loss), Net of Tax | 2,928 | 11,577 | 25,442 |
Accumulated other comprehensive income (loss), net of tax | -94 | -3,022 | -14,599 |
Accumulated Defined Benefit Plans Adjustment | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -29,065 | -15,195 | 39,630 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 76,004 | -13,574 | -53,742 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,575 | -296 | -1,083 |
Other Comprehensive Income (Loss), Net of Tax | 77,579 | -13,870 | -54,825 |
Accumulated other comprehensive income (loss), net of tax | 48,514 | -29,065 | -15,195 |
Derivative | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -742 | -1,113 | -2,658 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 37 | 371 | 1,545 |
Other Comprehensive Income (Loss), Net of Tax | 37 | 371 | 1,545 |
Accumulated other comprehensive income (loss), net of tax | -705 | -742 | -1,113 |
Comprehensive Income | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -32,829 | -30,907 | -3,069 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 76,004 | -13,574 | -53,742 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,540 | 11,652 | 25,904 |
Other Comprehensive Income (Loss), Net of Tax | 80,544 | -1,922 | -27,838 |
Accumulated other comprehensive income (loss), net of tax | 47,715 | -32,829 | -30,907 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -95,739 | -187,198 | ' |
PUGET SOUND ENERGY, INC. | Interest Rate Swap | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -6,624 | -6,941 | -7,257 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 317 | 317 | 316 |
Other Comprehensive Income (Loss), Net of Tax | 317 | 317 | 316 |
Accumulated other comprehensive income (loss), net of tax | -6,307 | -6,624 | -6,941 |
PUGET SOUND ENERGY, INC. | Accumulated Defined Benefit Plans Adjustment | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -175,998 | -168,704 | -115,778 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 74,969 | -17,049 | -59,468 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 13,624 | 9,755 | 6,542 |
Other Comprehensive Income (Loss), Net of Tax | 88,593 | -7,294 | -52,926 |
Accumulated other comprehensive income (loss), net of tax | -87,405 | -175,998 | -168,704 |
PUGET SOUND ENERGY, INC. | Derivative | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -4,576 | -12,934 | -34,612 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,549 | 8,358 | 21,678 |
Other Comprehensive Income (Loss), Net of Tax | 2,549 | 8,358 | 21,678 |
Accumulated other comprehensive income (loss), net of tax | -2,027 | -4,576 | -12,934 |
PUGET SOUND ENERGY, INC. | Comprehensive Income | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive income (loss), net of tax | -187,198 | -188,579 | -157,647 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 74,969 | -17,049 | -59,468 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 16,490 | 18,430 | 28,536 |
Other Comprehensive Income (Loss), Net of Tax | 91,459 | 1,381 | -30,932 |
Accumulated other comprehensive income (loss), net of tax | ($95,739) | ($187,198) | ($188,579) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Reclassifications Out of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Comprehensive income (loss) | $366,272 | $271,899 | $95,452 | |||
Interest Rate Contract | Interest Expense | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -4,505 | -17,811 | -39,143 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1,577 | 6,234 | 13,701 | |||
Comprehensive income (loss) | -2,928 | -11,577 | -25,442 | |||
Amortization of Prior Service Cost | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1,997 | [1] | 1,980 | [1] | 1,980 | [1] |
Amortization of Net Gain (Loss) | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -4,420 | [1] | -1,524 | [1] | -314 | [1] |
Qualified Pension Benefits | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -2,423 | 456 | 1,666 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 848 | -160 | -583 | |||
Comprehensive income (loss) | -1,575 | 296 | 1,083 | |||
Electric Derivative | Electric Generation Fuel | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0 | 100 | -679 | |||
Electric Derivative | Purchased Electricity | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -57 | -671 | -1,698 | |||
Electric Derivative | Electric Derivative, Total | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -57 | -571 | -2,377 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 20 | 200 | 832 | |||
Comprehensive income (loss) | -37 | -371 | -1,545 | |||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Comprehensive income (loss) | -4,540 | -11,652 | -25,904 | |||
PUGET SOUND ENERGY, INC. | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Comprehensive income (loss) | 447,588 | 357,551 | 173,188 | |||
PUGET SOUND ENERGY, INC. | Interest Rate Contract | Interest Expense | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -488 | -488 | -488 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 171 | 171 | 172 | |||
Comprehensive income (loss) | -317 | -317 | -316 | |||
PUGET SOUND ENERGY, INC. | Amortization of Prior Service Cost | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1,559 | [1] | 1,245 | [1] | 949 | [1] |
PUGET SOUND ENERGY, INC. | Amortization of Net Gain (Loss) | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -22,519 | [1] | -16,203 | [1] | -10,963 | [1] |
PUGET SOUND ENERGY, INC. | Amortization of Transition Obligation | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0 | [1] | -50 | [1] | -50 | [1] |
PUGET SOUND ENERGY, INC. | Qualified Pension Benefits | Pension Cost | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -20,960 | -15,008 | -10,064 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 7,336 | 5,253 | 3,522 | |||
Comprehensive income (loss) | -13,624 | -9,755 | -6,542 | |||
PUGET SOUND ENERGY, INC. | Electric Derivative | Electric Generation Fuel | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 0 | 97 | -20,625 | |||
PUGET SOUND ENERGY, INC. | Electric Derivative | Purchased Electricity | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -3,922 | -12,955 | -12,726 | |||
PUGET SOUND ENERGY, INC. | Electric Derivative | Electric Derivative, Total | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -3,922 | -12,858 | -33,351 | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1,373 | 4,500 | 11,673 | |||
Comprehensive income (loss) | -2,549 | -8,358 | -21,678 | |||
PUGET SOUND ENERGY, INC. | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Comprehensive income (loss) | ($16,490) | ($18,430) | ($28,536) | |||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 12 for additional details). |
SUPPLEMENTAL_QUARTERLY_FINANCI2
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $946,645 | $598,348 | $642,486 | $999,818 | $909,272 | $578,755 | $678,617 | $1,048,512 | $3,187,297 | $3,215,156 | $3,318,765 |
Operating income | 242,301 | 100,043 | 95,081 | 317,735 | 193,374 | 153,262 | 159,876 | 209,023 | 755,160 | 715,535 | 474,940 |
Net income (loss) | 108,808 | 8,540 | 905 | 167,475 | 80,957 | 46,692 | 57,692 | 88,480 | 285,728 | 273,821 | 123,290 |
PUGET SOUND ENERGY, INC. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | 946,794 | 598,348 | 642,486 | 999,707 | 909,519 | 579,611 | 678,617 | 1,048,512 | 3,187,335 | 3,216,259 | 3,319,803 |
Operating income | 237,808 | 96,085 | 91,094 | 310,587 | 188,431 | 150,007 | 153,306 | 201,245 | 735,574 | 692,989 | 431,043 |
Net income (loss) | $122,923 | $26,605 | $26,663 | $179,938 | $95,714 | $66,868 | $80,872 | $112,716 | $356,129 | $356,170 | $204,120 |
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY - Condensed Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-utility expense and other | ' | ' | ' | ' | ' | ' | ' | ' | $3,555 | ($814) | ($9,442) |
Unhedged interest rate swap expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,420 | -4,288 | -28,601 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -392,264 | -392,216 | -371,910 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -122,408 | -104,725 | -33,760 |
Net income (loss) | 108,808 | 8,540 | 905 | 167,475 | 80,957 | 46,692 | 57,692 | 88,480 | 285,728 | 273,821 | 123,290 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 366,272 | 271,899 | 95,452 |
PUGET ENERGY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-utility expense and other | ' | ' | ' | ' | ' | ' | ' | ' | -1,255 | -2,040 | -2,280 |
Equity In Net Income (Loss) Of Subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 351,718 | 365,590 | 228,288 |
Unhedged interest rate swap expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,420 | -4,288 | -28,601 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 114 | 214 | 215 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -103,372 | -135,312 | -131,702 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 36,103 | 49,657 | 57,370 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 285,728 | 273,821 | 123,290 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $366,272 | $271,899 | $95,452 |
SCHEDULE_I_CONDENSED_FINANCIAL2
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY - Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Other property and investments: | ' | ' | ' | ' | ||
Goodwill | $1,656,513 | $1,656,513 | ' | ' | ||
Current assets: | ' | ' | ' | ' | ||
Cash and Cash Equivalents, at Carrying Value | 44,302 | 135,542 | 37,235 | 36,557 | ||
Deferred income taxes | 86,004 | 53,437 | ' | ' | ||
Total current assets | 1,007,190 | 965,845 | ' | ' | ||
Long-term assets: | ' | ' | ' | ' | ||
Other | 130,909 | 95,763 | ' | ' | ||
Total assets | 12,906,575 | 12,835,275 | ' | ' | ||
Capitalization and liabilities: | ' | ' | ' | ' | ||
Common equity | 3,679,679 | 3,484,228 | 3,300,923 | 3,322,912 | ||
Long-term debt | 1,699,000 | 1,834,000 | ' | ' | ||
Total capitalization | 8,912,155 | 8,817,428 | ' | ' | ||
Current liabilities: | ' | ' | ' | ' | ||
Accounts payable | 296,681 | 321,960 | ' | ' | ||
Interest | 79,303 | 82,262 | ' | ' | ||
Deferred income taxes | 1,487,005 | 1,261,636 | ' | ' | ||
Unrealized loss on derivative instruments | 48,049 | 177,519 | ' | ' | ||
Total current liabilities | 804,293 | 1,018,885 | ' | ' | ||
Long-term liabilities: | ' | ' | ' | ' | ||
Unrealized loss on derivative instruments | 38,162 | 83,276 | ' | ' | ||
Total capitalization and liabilities | 12,906,575 | 12,835,275 | ' | ' | ||
PUGET ENERGY | ' | ' | ' | ' | ||
Assets: | ' | ' | ' | ' | ||
Investments in subsidiaries | 3,508,460 | 3,490,206 | ' | ' | ||
Other property and investments: | ' | ' | ' | ' | ||
Goodwill | 1,656,513 | 1,656,513 | ' | ' | ||
Current assets: | ' | ' | ' | ' | ||
Cash and Cash Equivalents, at Carrying Value | 191 | 12 | 6,224 | 237 | ||
Receivables from affiliates | 29,605 | [1] | 29,608 | [1] | ' | ' |
Deferred income taxes | 0 | 2,300 | ' | ' | ||
Total current assets | 29,796 | 31,920 | ' | ' | ||
Long-term assets: | ' | ' | ' | ' | ||
Deferred income taxes | 241,787 | 166,896 | ' | ' | ||
Other | 17,992 | 20,944 | ' | ' | ||
Total long-term assets | 259,779 | 187,840 | ' | ' | ||
Total assets | 5,454,548 | 5,366,479 | ' | ' | ||
Capitalization and liabilities: | ' | ' | ' | ' | ||
Common equity | 3,679,679 | 3,484,228 | ' | ' | ||
Long-term debt | 1,698,964 | 1,833,959 | ' | ' | ||
Total capitalization | 5,378,643 | 5,318,187 | ' | ' | ||
Current liabilities: | ' | ' | ' | ' | ||
Accounts payable | 322 | 212 | ' | ' | ||
Interest | 24,047 | 26,466 | ' | ' | ||
Deferred income taxes | 38,296 | 0 | ' | ' | ||
Unrealized loss on derivative instruments | 6,584 | 6,571 | ' | ' | ||
Total current liabilities | 69,249 | 33,249 | ' | ' | ||
Long-term liabilities: | ' | ' | ' | ' | ||
Unrealized loss on derivative instruments | 6,656 | 15,043 | ' | ' | ||
Total long-term liabilities | 6,656 | 15,043 | ' | ' | ||
Total capitalization and liabilities | $5,454,548 | $5,366,479 | ' | ' | ||
[1] | Eliminated in consolidation. |
SCHEDULE_I_CONDENSED_FINANCIAL3
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY - Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $285,728 | $273,821 | $123,290 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Unrealized gain on derivative instruments | -106,540 | -146,680 | 45,043 |
Deferred income taxes and tax credits - net | 122,409 | 100,457 | 31,774 |
Taxes | 4,499 | 6,174 | 65,213 |
Accounts payable | 4,597 | -25,963 | 1,098 |
Net cash provided by operating activities | 766,068 | 782,685 | 915,923 |
Investing activities: | ' | ' | ' |
Other | -17,871 | -38,923 | -7,184 |
Net cash used in investing activities | -480,918 | -692,970 | -982,410 |
Financing activities: | ' | ' | ' |
Dividends paid | -170,821 | -88,594 | -117,441 |
Long-term notes and bonds issued | 161,860 | 1,314,000 | 1,382,000 |
Redemption of term-loan and other long-term debt | -309,860 | -1,273,000 | -769,000 |
Net cash provided by (used in) financing activities | -376,390 | 8,592 | 67,165 |
Net increase (decrease) in cash and cash equivalents | -91,240 | 98,307 | 678 |
Cash and cash equivalents at beginning of period | 135,542 | 37,235 | 36,557 |
Cash and cash equivalents at end of period | 44,302 | 135,542 | 37,235 |
PUGET ENERGY | ' | ' | ' |
Operating activities: | ' | ' | ' |
Net income | 285,728 | 273,821 | 123,290 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Unrealized gain on derivative instruments | -3,869 | -12,984 | 33,549 |
Deferred income taxes and tax credits - net | -35,872 | -49,496 | -57,151 |
Equity in earnings of subsidiary | -351,718 | -365,590 | -228,288 |
Other | 3,055 | 11,409 | 12,837 |
Dividends received from subsidiaries | 410,977 | 175,625 | 212,875 |
Accounts receivable | 3 | 283 | 618 |
Taxes | 0 | 0 | 14,069 |
Accounts payable | 110 | 212 | 0 |
Accrued interest | -1,299 | 33,842 | 25,273 |
Net cash provided by operating activities | 307,115 | 67,122 | 137,072 |
Investing activities: | ' | ' | ' |
Investment in subsidiaries | 0 | 0 | -287,000 |
(Increase) decrease in loan to subsidiaries | 0 | 400 | -7,400 |
Other | -1,120 | -20,901 | -16,228 |
Net cash used in investing activities | -1,120 | -20,501 | -310,628 |
Financing activities: | ' | ' | ' |
Dividends paid | -170,821 | -88,594 | -117,441 |
Long-term notes and bonds issued | 0 | 884,000 | 787,000 |
Redemption of term-loan and other long-term debt | -135,000 | -843,000 | -484,000 |
Issue costs and others | 5 | -5,239 | -6,016 |
Net cash provided by (used in) financing activities | -305,816 | -52,833 | 179,543 |
Net increase (decrease) in cash and cash equivalents | 179 | -6,212 | 5,987 |
Cash and cash equivalents at beginning of period | 12 | 6,224 | 237 |
Cash and cash equivalents at end of period | $191 | $12 | $6,224 |
SCHEDULE_I_CONDENSED_FINANCIAL4
SCHEDULE I CONDENSED FINANCIAL INFORMATION OF PUGET ENERGY Notes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net income | $108,808,000 | $8,540,000 | $905,000 | $167,475,000 | $80,957,000 | $46,692,000 | $57,692,000 | $88,480,000 | $285,728,000 | $273,821,000 | $123,290,000 |
Goodwill, Purchase Accounting Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -4,400,000 | 9,400,000 | 24,200,000 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | 366,272,000 | 271,899,000 | 95,452,000 |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | 766,068,000 | 782,685,000 | 915,923,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | -480,918,000 | -692,970,000 | -982,410,000 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 285,728,000 | 273,821,000 | 123,290,000 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | 366,272,000 | 271,899,000 | 95,452,000 |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | 307,115,000 | 67,122,000 | 137,072,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | -1,120,000 | -20,501,000 | -310,628,000 |
PUGET SOUND ENERGY, INC. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 122,923,000 | 26,605,000 | 26,663,000 | 179,938,000 | 95,714,000 | 66,868,000 | 80,872,000 | 112,716,000 | 356,129,000 | 356,170,000 | 204,120,000 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | 447,588,000 | 357,551,000 | 173,188,000 |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | 835,679,000 | 797,882,000 | 809,017,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | -479,798,000 | -672,069,000 | -966,183,000 |
Scenario, Previously Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 888,691,000 | 1,010,328,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -798,976,000 | -1,076,815,000 |
Scenario, Previously Reported | Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | 285,398,000 | 148,733,000 |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,221,000 | 120,844,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | -294,400,000 |
Scenario, Previously Reported | PUGET SOUND ENERGY, INC. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 903,888,000 | 903,422,000 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($778,075,000) | ($1,060,588,000) |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (Allowance for doubtful accounts receivable, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance At Beginning of Period | $9,932 | $8,495 | $9,784 |
Additions Charged to Costs and Expenses | 26,330 | 21,567 | 18,449 |
Deductions | 28,877 | 20,130 | 19,738 |
Balance At End Of Period | 7,385 | 9,932 | 8,495 |
PUGET SOUND ENERGY, INC. | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance At Beginning of Period | 9,932 | 8,495 | 9,784 |
Additions Charged to Costs and Expenses | 26,330 | 21,567 | 18,449 |
Deductions | 28,877 | 20,130 | 19,738 |
Balance At End Of Period | $7,385 | $9,932 | $8,495 |