================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 July 21, 2000 July 21, 2000 - -------------------------------------------------------------------------------- (Date of earliest event reported) PUGET SOUND ENERGY, INC. (Exact name of registrant as specified in its charter) ----------------------------- Commission File Number 1-4393 ----------------------------- Washington 91-0374630 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 411 - 108th Avenue N.E., Bellevue, Washington 98004-5515 (Address of principal executive offices) (425) 454-6363 (Registrant's telephone number, including area code) ================================================================================ 1 ITEM 5. Other Events On July 21, 2000, the Company issued the following press release. Puget Sound Energy reports second-quarter results Bellevue, Wash. (July 21, 2000) -- Puget Sound Energy (NYSE: PSD) today reported income for common stock for the second quarter of 2000 of $25.1 million, or 29 cents per share. Earnings for the 1999 second quarter were 23 cents per share, excluding the 10 cents per share positive impact of the unusual items described in Factors in Second Quarter Results, below (total reported earnings for the second quarter of 1999 were 33 cents per share). Income for common stock for the twelve months ended June 30, 2000 was $180.6 million, or $2.13 per share, up from income of $172.6 million, or $2.04 per share for the same period a year ago. "The strong second-quarter results reflect improved energy margins, coupled with our continued emphasis on controlling costs while serving additional utility customers at high levels of service," said President and Chief Executive Officer William S. Weaver. "In a period of extremely volatile energy markets, we benefited from our emphasis on keeping energy resources and loads in relative balance." FACTORS IN SECOND-QUARTER RESULTS Operating revenues for the quarter were $539 million, up $103 million from the same period in 1999. Energy margins for the quarter were up, reflecting continued growth in the number of customers served and increased wholesale sales to other utilities and others, offset in part by weather that was warmer than a year ago. Second-quarter utility operations and maintenance expenses of $58.4 million held essentially flat compared to a year ago. Per-share earnings for the quarter and 12-month periods ended June 30, 1999 were positively impacted by approximately 10 cents per share, the result of a gain from the sale of the company's investment in common stock of Cabot Oil & Gas Corp., offset in part by costs associated with a wholly-owned subsidiary's exiting certain product lines. 2 FACTORS IN 12-MONTH RESULTS Operating revenues for the 12-month period were $2.2 billion, up 10 percent compared to the same period in 1999. Twelve-month results were affected by the same factors as quarterly results. As in the quarter, utility operations and maintenance expenses for the 12 months held essentially flat compared to 1999. OTHER MATTERS Puget Sound Energy yesterday (July 20) signed an agreement with PPL Global, LLC (formerly PP&L Global, Inc.) terminating the Asset Purchase Agreement dated as of November 1, 1998 under which PPL Global, LLC had proposed purchasing Puget Sound Energy's 735-megawatt interest in the four-unit Colstrip power plants and associated transmission capacity across Montana. As a result, Puget Sound Energy retains its 50 percent interest in Colstrip Units 1 & 2 and 25 percent of Units 3 & 4. 3 PUGET SOUND ENERGY -- SUMMARY INCOME STATEMENT (In thousands, except per-share amounts) 3 months ended 6/30 (1) 12 months ended 6/30 (1) -------------------------------- ---------------------------- 2000 1999 2000 1999 -------------------------------- ---------------------------- Operating revenues Electric $ 437,491 $ 336,895 $ 1,696,150 $ 1,557,409 Gas 98,017 94,173 523,958 456,994 Other 3,293 4,996 22,411 26,131 ------------- ------------- ------------ ------------ Total operating revenues 538,801 436,064 2,242,519 2,040,534 ------------- ------------- ------------ ------------ Operating expenses Purchased electricity 238,105 176,116 853,198 806,765 Purchased gas 46,184 38,822 257,319 192,358 Electric generation fuel 29,904 11,178 89,037 56,871 Residential exchange (9,073) (8,631) (39,957) (48,307) Utility operations & maintenance 58,395 58,363 234,718 234,048 Other operations & maintenance 4,045 9,624 17,628 35,855 Depreciation & amortization 49,316 42,899 185,390 169,924 Conservation amortization 1,380 1,934 8,185 6,854 Other taxes 43,914 41,982 189,950 170,523 Federal income taxes 13,512 11,157 112,565 114,043 ------------- ------------- ------------ ------------ Total operating expenses 475,682 383,444 1,908,033 1,738,934 ------------- ------------- ------------ ------------ Operating income 63,119 52,620 334,486 301,600 Other income 6,878 15,379 18,061 26,647 ------------- ------------- ------------ ------------ Income before interest charges 69,997 67,999 352,547 328,247 Interest charges 42,628 36,934 162,239 143,359 ------------- ------------- ------------ ------------ Net Income 27,369 31,065 190,308 184,888 Less pref. stock dividend accruals 2,229 3,013 9,708 12,333 ------------- ------------- ------------ ------------ Income for common stock $ 25,140 $ 28,052 $ 180,600 $ 172,555 Common shares outstanding 85,295 84,561 84,918 84,561 ------------- ------------- ------------ ------------ Earnings per common share $ 0.29 $ 0.33 $ 2.13 $ 2.04 <FN> (1) Partial-year results may not accurately predict full-year performance, as earnings are significantly affected by weather. </FN> 4 PUGET SOUND ENERGY -- UTILITY OPERATING DATA 3 months ended 6/30 12 months ended 6/30 ----------------------------- --------------------------------- 2000 1999 2000 1999 ----------------------------- --------------------------------- Energy sales revenues ($ in thousands) Electricity Residential $ 138,225 $ 141,579 $ 607,116 $ 593,873 Commercial 106,645 109,571 477,913 462,138 Industrial 45,710 42,065 181,955 185,925 Other (1) 11,275 (18,579) 24,045 (13,364) -------------- --------------- ---------------- ---------------- Subtotal, retail sales 301,855 274,636 1,291,029 1,228,572 Sales to other utilities 135,636 62,259 405,121 328,837 -------------- --------------- ---------------- ---------------- Total electricity sales 437,491 336,895 1,696,150 1,557,409 Gas Residential 54,833 55,500 315,383 280,222 Commercial 30,592 27,004 153,444 125,497 Industrial 6,885 5,609 31,599 25,013 Transportation 2,838 3,258 12,280 13,884 Other 2,869 2,802 11,252 12,378 -------------- --------------- ---------------- ---------------- Total gas sales 98,017 94,173 523,958 456,994 -------------- --------------- ---------------- ---------------- Total energy sales revenues $ 535,508 $ 431,068 $ 2,220,108 $ 2,014,403 Energy sales volumes Electricity (in mWh) Residential 2,217,910 2,332,258 9,714,499 9,702,093 Commercial 1,744,088 1,790,489 7,521,874 7,363,707 Industrial 942,744 993,013 3,960,782 4,103,190 Other (1) (35,278) (190,180) 320,824 112,408 -------------- --------------- ---------------- ---------------- Subtotal, retail sales 4,869,464 4,925,580 21,517,979 21,281,398 Sales to other utilities 2,820,296 2,691,380 11,549,139 11,965,647 -------------- --------------- ---------------- ---------------- Total mWh 7,689,760 7,616,960 33,067,118 33,247,045 Gas (in 000's of therms) Residential 80,125 95,393 496,785 497,635 Commercial 59,680 61,306 308,799 278,340 Industrial 14,782 14,015 71,040 59,009 Transportation 49,475 57,446 218,237 242,040 -------------- --------------- ---------------- ---------------- Total gas volumes 204,062 228,160 1,094,861 1,077,024 Customers served (2) Electricity Total electricity 915,084 898,992 907,873 891,280 customers Gas Total gas customers 580,259 555,371 569,626 544,344 Weather Actual heating degree days 910 1,105 4,796 4,880 Normal heating degree days 925 925 4,909 4,909 <FN> (1) Includes change in unbilled revenues and Conservation Trust collection. (2) Quarterly data represents average served during June; 12-month data represents average for the year. </FN> 5 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PUGET SOUND ENERGY, INC. Date: July 21, 2000 James W. Eldredge -------------------------------- James W. Eldredge Corporate Secretary & Controller 6