================================================================================
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
January 29, 2001 January 29, 2001
- --------------------------------------------------------------------------------
(Date of earliest
event reported)
PUGET ENERGY, INC.
(Exact name of registrant as specified in its charter)
-----------------------------
Commission File Number 1-4393
-----------------------------
Washington 91-1969407
(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)
================================================================================
ITEM 5. Other Events
On January 29, 2001, the Company issued the following press release.
Proposal Threatens PSE's Ability To Serve Customers
BELLEVUE, Wash. (Jan. 29, 2001) - A proposal under consideration by the
Washington Utilities and Transportation Commission (WUTC) granting huge
subsidies through a rate cap for a select group of large industrial customers
would jeopardize Puget Sound Energy's ability to pay for electricity and natural
gas to serve its customers. This stark assessment was presented today at a WUTC
hearing by Richard L. Hawley, PSE's vice president and chief financial officer.
"Implementing the rate cap as proposed would cause an immediate financial
crisis for PSE, the state's largest utility," Hawley said. "This rate cap puts
in jeopardy PSE's ability to meet its financial obligations and, consequently,
its public service obligation to customers."
"Coupling the implementation of an unwarranted rate cap subsidy to
industrial customers with the severe tightening of credit availability because
of lenders' general concern about utilities due to the California crisis would
result in PSE simply not having access to the money it needs to continue to
provide services," Hawley said.
"California has been a textbook example of what happens when a utility's
financial health is ruined. Service to customers is threatened because loss of
utility credit ratings makes it impossible to find money to pay for the energy
required to keep the lights on and homes warm."
"The solution to the problem these few industrial customers have gotten
themselves into by choosing not to lock in their energy prices should not cause
Washington customers to have to endure a California-like crisis," Hawley said.
PSE recently filed with the commission an alternative proposal the utility
believes would provide its big industrial customers appropriate long-term relief
from today's volatile wholesale power market. The plan would let PSE's big
industrial customers individually negotiate with power suppliers over the price
of their electricity and the length of a supply contract; PSE would facilitate
the agreement and deliver the power.
"This is the solution that should be acted upon," Hawley concluded.
Puget Sound Energy is the utility subsidiary of Puget Energy (NYSE:PSD).
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 ENERGY, INC.
Date: January 29, 2001
James W.Eldredge
-------------------------------
James W. Eldredge
Corporate Secretary