3rd Quarter 2004 Earnings Release
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 22, 2004
| |
Exact name of registrant as specified |
I.R.S. |
| |
in its charter, state of incorporation, |
Employer |
| Commission |
address of principal executive offices, |
Identification |
| File Number |
Telephone |
Number |
| 1-16305 |
PUGET ENERGY, INC. |
91-1969407 |
| |
A Washington Corporation. |
|
| |
10885 - N.E. 4th Street, Suite 1200 |
|
| |
Bellevue, Washington 98004-5591 |
|
| |
(425) 454-6363 |
|
| 1-4393 |
PUGET SOUND ENERGY, INC. |
91-0374630 |
| |
A Washington Corporation |
|
| |
10885 - N.E. 4th Street, Suite 1200 |
|
| |
Bellevue, Washington 98004-5591 |
|
| |
(425) 454-6363 |
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions.
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications
pursuant to Rule 13e-4(c)under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and
Financial Condition
On October 22, 2004 the Company issued the following press
release.
Puget Energy reports
third-quarter 2004 earnings
Bellevue,
Wash. (October 22, 2004) — Puget Energy (NYSE: PSD) today reported third-quarter 2004
net income of $11.1 million, or $0.11 per share, compared to net income of $9.9 million,
or $0.10 per share in the third quarter of 2003.
Summary
|
|
|
|
|
Third Quarter ended September 30 |
| (in millions except per share data) |
2004 |
2003 |
| Revenues |
$515.0 |
$490.3 |
| Net Income for common stock |
$11.1 |
$9.9 |
| Earnings per share (diluted) |
$0.11 |
$0.10 |
|
“Third
quarter results met our expectations,” said Puget Energy President and CEO Steve
Reynolds. “We are fulfilling our commitment to provide Puget Sound Energy customers
with reliable, low-cost energy, and I am pleased with the progress we are making on our
various infrastructure investment initiatives.
“During
the third quarter, Puget Sound Energy announced its intent to purchase a 220-megawatt wind
farm project in the eastern part of its service territory. As we move forward with our
strategic plan, we anticipate continued progress with the pending general rate case,”
added Reynolds.
Puget
Energy today reaffirmed its previously announced earnings guidance for year-end 2004 of
$1.20 to $1.30 per diluted share. This guidance assumes normal weather patterns in the
fourth quarter of 2004.
Third quarter 2004
summary for Puget Sound Energy (PSE)
| • |
|
PSE
reported income for common stock of $9.6 million for the third quarter of 2004, or $0.10
per diluted share, compared with income for common stock of $8.4 million, or $0.09 per
diluted share, for the same period in 2003. |
| • |
|
PSE’s
electric margin for the third quarter of 2004 increased $9.7 million pretax or $0.06 per
diluted share compared with the third quarter of 2003, despite a regulatory disallowance
of $2.8 million pretax or $0.02 per diluted share in connection with gas supply costs for
the Tenaska generating project as described below. The increase in electric margin is
primarily due to PSE not being adversely impacted by excess power costs in the third
quarter of 2004 compared to excess power costs of $5.8 million pretax or $0.04 per
diluted share for the same period in 2003. PSE’s electric margin also increased by
$2.5 million pretax as a result of an electric rate tariff increase effective May 24,
2004 designed to recover costs for the Frederickson plant’s utility operations and
maintenance expenditures. In addition, retail kilowatt-hour sales rose by 3.1 percent in
the third quarter of 2004 compared with the same period in 2003. |
| • |
|
Slightly
warmer temperatures during the months of July and August in 2004, combined with electric
customer growth of 2.3 percent, contributed to the 3.1 percent increase in electric
retail kilowatt-hour sales over the same period in 2003. Electric customers increased in
the third quarter of 2004 to approximately 994,300 customers. |
| • |
|
PSE’s
gas margin in the third quarter of 2004 increased by $0.7 million pretax from the same
quarter in 2003 as a result of a 0.6 percent increase in therm sales volumes to
customers. During the third quarter of 2004, the average number of natural gas customers
in PSE’s service territory grew by 3.9 percent to approximately 661,000 at September
30, 2004. |
| • |
|
Other
operating revenues increased by $2.1 million pretax or $0.01 per diluted share primarily
due to net gains from property sales in the third quarter of 2004. |
| • |
|
PSE’s
third quarter of 2003 financial results included a gain on corporate owned life insurance
of $1.7 million after-tax, or $0.02 per diluted share. No similar gains were recorded in
the third quarter of 2004. |
| • |
|
PSE’s
third quarter 2003 financial results reflected a $3.0 million or $0.03 per diluted share,
reduction of income tax expense related to true-ups of 2002 tax expense following the
company filing its 2002 federal income tax return in the third quarter of 2003. In the
third quarter of 2004, PSE’s income tax expense increased by $0.3 million as a
result of a similar true-up of 2003 federal income tax expense. |
| • |
|
PSE’s
interest expense and preferred stock dividends decreased in the third quarter of 2004 by
$3.5 million after-tax or $0.03 per diluted share compared with the same quarter of 2003,
reflecting redemption of high cost debt and preferred stock. |
| • |
|
PSE’s
energy sales to utility customers are seasonal, with the highest volume of sales
occurring during the heating season in the first and fourth calendar quarters and the
lowest sales during the third quarter. Under typical operating conditions, PSE’s
income and common equity are usually at their lowest levels in the third quarter and peak
in the first and fourth quarters. The increase in PSE’s common equity from its
income for common stock of $0.10 per diluted share for the third quarter of 2004 was
offset by the $0.25 per common share dividend paid to its parent, Puget Energy.
Consequently, PSE’s common equity ratio dropped to 39.1 percent at September 30,
2004 from 40.5 percent at June 30, 2004. PSE’s common equity ratio was 37.0 percent
at September 30, 2003. The company expects PSE’s common equity ratio to be above 40
percent by year-end 2004. |
Third quarter 2004
summary for InfrastruX Group (InfrastruX)
| • |
|
InfrastruX,
the unregulated utility construction services subsidiary of Puget Energy, reported net
income of $1.6 million, or $0.02 per diluted share, in the third quarter of 2004 net of
minority interests, which matched results in the third of quarter 2003. |
| • |
|
InfrastruX’s
net income for the first nine months of 2004 was $4.1 million or $0.04 per diluted share,
net of minority interest, as compared with $0.9 million for the first nine months of
2003. InfrastruX’s results in the first quarter of 2003 were adversely impacted by
harsh weather conditions in the northeast region and in Texas, where InfrastruX has
significant operations. |
Puget
Energy Third Quarter 2004 vs. Third Quarter 2003 EPS Reconciliation
|
| |
Cents per diluted share |
|
|
| Puget Energy Q3 2003 Reported Earnings | |
$0 |
.10 |
| Federal tax benefit in 2003 | |
(0 |
.03) |
| Gain on corporate owned life insurance in 2003 | |
(0 |
.02) |
| Increase in electric margin in 2004 | |
0 |
.06 |
| Lower interest expense & preferred stock dividends in 2004 | |
0 |
.03 |
| Increase in depreciation expense in 2004 | |
(0 |
.02) |
| Less: All other variances, net | |
(0 |
.01) |
|
| Puget Energy Q3 2004 Earnings | |
$0 |
.11 |
|
PSE Regulatory
Initiatives
| • |
|
Effective
May 24, 2004, PSE’s retail electric rates increased by approximately 3.2 percent, or
$44.1 million on an annualized basis, following approval by the Washington Utilities and
Transportation Commission (WUTC) in PSE’s power cost only rate case. The increase
allows PSE to recover higher power costs incurred to serve its electric customers,
including recovery of costs related to PSE’s purchase of a 49.85 percent interest or
approximately 124 megawatts in the Frederickson Power generating facility located near
Tacoma, Washington for approximately $81 million. The Federal Energy Regulatory
Commission (FERC) also approved the acquisition of the Frederickson Power generating
facility. |
| • |
|
In
addition to approving increased retail electric rates, the WUTC issued separate orders on
May 13, 2004 and June 7, 2004 which resolved certain outstanding issues related to past
and potential future fuel cost disallowances for the Tenaska generating facility, as
described in further detail in Puget Energy’s August 5, 2004 Form 8-K and June 30,
2004 Form 10-Q filed with the SEC. |
| • |
|
PSE
filed an electric and natural-gas general rate-increase proposal with the WUTC on April
5, 2004 to financially strengthen the utility as well as to enhance customer service and
stabilize energy costs. The rate case proposes increases of 5.8 percent, or $82.8 million
annually, and 6.8 percent, or $48.9 million annually for electric and natural gas
customers, respectively. The WUTC has established a hearing schedule in the proceeding,
which calls for a decision on PSE’s request no later than the first quarter of 2005.
PSE is in the process of preparing its rebuttal to opposing and intervenors’testimony
filed on September 23, 2004. PSE is required to file its rebuttal testimony with the WUTC
by November 3, 2004. |
| • |
|
Effective
October 1, 2004, PSE’s natural gas rates increased 17.6 percent reflecting an
adjustment under PSE’s Purchased Gas Adjustment (PGA) Mechanism to allow PSE to
recover higher wholesale gas costs incurred to serve its firm and interruptible
customers. PGA rate increases do not impact PSE earnings. |
THIRD QUARTER 2004
EARNINGS PRESENTATION WEBCAST
A management discussion of the third
quarter results is scheduled for 2:15PM ET (11:15AM PT) on Tuesday, October 26, 2004. A
live webcast of the presentation can be accessed through the Investors section at
www.pse.com. The webcast will be archived and available for replay following the live
broadcast through midnight (ET) on Thursday, November 25, 2004.
Puget Energy is an energy services
holding company that conducts all of its operations through its subsidiaries, PSE and
InfrastruX Group. PSE is a regulated utility company that generates, purchases and sells
electricity; and purchases, transports and sells natural gas. The service territory of PSE
covers approximately 6,000 square miles, principally in the Puget Sound region of
Washington state. InfrastruX specializes in contracting services to other gas and electric
utilities primarily in the Midwest, Texas, and the south-central and eastern United States
regions.
CAUTIONARY STATEMENT: Certain
statements contained in this press release are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995, among which
include earnings guidance for the year-end 2004. Forward-looking statements are based on
the opinions and estimates of management at the time the statements are made and are
subject to certain risks and uncertainties that could cause actual results to differ
materially from those anticipated in the forward-looking statements. Factors that could
affect actual results include, among others, governmental policies and regulatory actions,
including those of the WUTC, and weather conditions. More information about these and
other factors that potentially could affect the company’s financial results is
included in Puget Energy’s and PSE’s most recent annual report on Form 10-K,
quarterly report on Form 10-Q and in their other public filings filed with the Securities
and Exchange Commission. Except as required by law, Puget Energy and PSE undertake no
obligation to update any forward-looking statements.
###
PUGET ENERGY — SUMMARY
INCOME STATEMENT
(In thousands, except per-share amounts)
| |
Unaudited
Three months ended 9/301
|
Unaudited
Nine months ended 9/301
|
| |
2004
|
2003
|
2004
|
2003
|
| Operating revenues |
|
|
| |
|
| |
|
| |
|
| |
|
| Electric 2 | | |
$ | 322,669 |
|
$ | 318,161 |
|
$ | 1,018,256 |
|
$ | 1,014,234 |
|
| Gas | | |
| 89,432 |
|
| 78,171 |
|
| 484,603 |
|
| 382,706 |
|
| Non-utility construction services | | |
| 99,925 |
|
| 93,142 |
|
| 267,496 |
|
| 256,162 |
|
| Other | | |
| 2,925 |
|
| 784 |
|
| 4,005 |
|
| 1,853 |
|
| |
|
| Total operating revenues | | |
| 514,951 |
|
| 490,258 |
|
| 1,774,360 |
|
| 1,654,955 |
|
| |
|
| Operating expenses | | |
| Purchased electricity 2 | | |
| 147,589 |
|
| 149,628 |
|
| 517,803 |
|
| 512,542 |
|
| Residential exchange | | |
| (34,014 |
) |
| (32,894 |
) |
| (123,799 |
) |
| (122,550 |
) |
| Purchased gas | | |
| 44,574 |
|
| 35,469 |
|
| 270,683 |
|
| 179,795 |
|
| Electric generation fuel | | |
| 25,130 |
|
| 21,252 |
|
| 60,132 |
|
| 47,415 |
|
| Unrealized (gain) loss on derivative instruments | | |
| 1,894 |
|
| 905 |
|
| (1,042 |
) |
| 383 |
|
| Utility operations & maintenance | | |
| 67,093 |
|
| 67,682 |
|
| 214,149 |
|
| 211,632 |
|
| Other operations & maintenance | | |
| 87,361 |
|
| 81,435 |
|
| 232,908 |
|
| 229,072 |
|
| Depreciation & amortization | | |
| 62,204 |
|
| 59,159 |
|
| 183,614 |
|
| 176,424 |
|
| Conservation amortization | | |
| 4,747 |
|
| 9,897 |
|
| 17,746 |
|
| 23,914 |
|
| Taxes other than income taxes | | |
| 46,024 |
|
| 43,176 |
|
| 159,138 |
|
| 147,787 |
|
| Income taxes | | |
| 8,524 |
|
| 160 |
|
| 44,307 |
|
| 36,358 |
|
| |
|
| Total operating expenses | | |
| 461,126 |
|
| 435,869 |
|
| 1,575,639 |
|
| 1,442,772 |
|
| |
|
| Operating income | | |
| 53,825 |
|
| 54,389 |
|
| 198,721 |
|
| 212,183 |
|
| Other income (net of tax) | | |
| 318 |
|
| 2,663 |
|
| 1,968 |
|
| 5,614 |
|
| |
|
| Income before interest charges & minority interest |
| |
| 54,143 |
|
| 57,052 |
|
| 200,689 |
|
| 217,797 |
|
| Interest charges | | |
| AFUDC | | |
| (1,650 |
) |
| (1,034 |
) |
| (3,807 |
) |
| (2,352 |
) |
| Interest expense | | |
| 44,484 |
|
| 45,879 |
|
| 133,310 |
|
| 140,843 |
|
| Mandatorily redeemable securities interest expense 3 | | |
| 23 |
|
| 1,048 |
|
| 68 |
|
| 1,048 |
|
| |
|
| Total interest charges | | |
| 42,857 |
|
| 45,893 |
|
| 129,571 |
|
| 139,539 |
|
| |
|
| Minority interest | | |
| 162 |
|
| 156 |
|
| 408 |
|
| 106 |
|
| |
|
| Net income before cumulative effect of | | |
| accounting change | | |
| 11,124 |
|
| 11,003 |
|
| 70,710 |
|
| 78,152 |
|
| SFAS-143 transition adjustment loss (net of tax) | | |
| -- |
|
| -- |
|
| -- |
|
| 169 |
|
| Net Income | | |
| 11,124 |
|
| 11,003 |
|
| 70,710 |
|
| 77,983 |
|
| Less preferred stock dividend accruals 3 | | |
| -- |
|
| 1,118 |
|
| -- |
|
| 4,779 |
|
| |
|
| Income for common stock | | |
$ | 11,124 |
|
$ | 9,885 |
|
$ | 70,710 |
|
$ | 73,204 |
|
| |
|
| Common shares outstanding | | |
| 99,580 |
|
| 94,125 |
|
| 99,373 |
|
| 93,930 |
|
| Diluted shares outstanding | | |
| 100,043 |
|
| 94,635 |
|
| 99,836 |
|
| 94,440 |
|
| |
|
| Basic earnings per common share before | | |
| cumulative effect of accounting change | | |
$ | 0.11 |
|
$ | 0.10 |
|
$ | 0.71 |
|
$ | 0.78 |
|
| Cumulative effect of accounting change | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| |
|
| Basic earnings per common share | | |
$ | 0.11 |
|
$ | 0.10 |
|
$ | 0.71 |
|
$ | 0.78 |
|
| |
|
| Diluted earnings per common share before | | |
| cumulative effect of accounting change | | |
$ | 0.11 |
|
$ | 0.10 |
|
$ | 0.71 |
|
$ | 0.77 |
|
| Cumulative effect of accounting change | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| |
|
| Diluted earnings per common share 4 | | |
$ | 0.11 |
|
$ | 0.10 |
|
$ | 0.71 |
|
$ | 0.77 |
|
| |
|
| 1 |
Partial-year
results may not accurately predict full-year performance, as earnings are significantly
affected by weather. |
| 2 |
Effective
January 1, 2004, non-trading derivative instruments meeting Emerging Issues Task Force
Issue No. 03-11 must be shown net in the income statement. Previous year amounts have
been reclassified to conform to the current presentation. |
| 3 |
Effective
July 1, 2003, SFAS 150, “Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity,” requires companies with equity that
has characteristics of debt to classify their dividends as interest expense instead of as
preferred stock dividends. |
| 4 |
Diluted
earnings per common share include the dilutive effect of securities related to employee
compensation plans. |
PUGET SOUND ENERGY
— UTILITY OPERATING DATA
| |
Three months ended 9/30
|
Nine months ended 9/30
|
| |
2004
|
2003
|
2004
|
2003
|
| Energy sales revenues ($ in thousands; unaudited) |
|
|
| |
|
| |
|
| |
|
| |
|
| Electricity | | |
| Residential | | |
$ | 122,397 |
|
$ | 114,544 |
|
$ | 459,058 |
|
$ | 442,275 |
|
| Commercial | | |
| 143,711 |
|
| 135,128 |
|
| 428,877 |
|
| 411,231 |
|
| Industrial | | |
| 22,165 |
|
| 21,465 |
|
| 65,318 |
|
| 66,306 |
|
| Other retail sales, including change in | | |
| 5,379 |
|
| 8,175 |
|
| (11,199 |
) |
| (7,090 |
) |
| unbilled | | |
| |
|
| Subtotal, retail sales | | |
| 293,652 |
|
| 279,312 |
|
| 942,054 |
|
| 912,722 |
|
| Transportation, including change in unbilled | | |
| 2,728 |
|
| 2,618 |
|
| 7,342 |
|
| 9,229 |
|
| Sales to other utilities & marketers 1 | | |
| 16,558 |
|
| 26,833 |
|
| 38,793 |
|
| 67,352 |
|
| Other 2 | | |
| 9,731 |
|
| 9,398 |
|
| 30,067 |
|
| 24,931 |
|
| |
|
| Total electricity sales | | |
| 322,669 |
|
| 318,161 |
|
| 1,018,256 |
|
| 1,014,234 |
|
| Gas | | |
| Residential | | |
| 47,100 |
|
| 41,281 |
|
| 295,381 |
|
| 236,672 |
|
| Commercial | | |
| 29,046 |
|
| 24,599 |
|
| 144,155 |
|
| 108,135 |
|
| Industrial | | |
| 6,864 |
|
| 5,996 |
|
| 25,436 |
|
| 19,153 |
|
| |
|
| Subtotal, retail sales | | |
| 83,010 |
|
| 71,876 |
|
| 464,972 |
|
| 363,960 |
|
| Transportation | | |
| 3,133 |
|
| 3,643 |
|
| 9,679 |
|
| 10,503 |
|
| Other | | |
| 3,289 |
|
| 2,652 |
|
| 9,952 |
|
| 8,243 |
|
| |
|
| Total gas sales | | |
| 89,432 |
|
| 78,171 |
|
| 484,603 |
|
| 382,706 |
|
| |
|
| Total energy sales revenues | | |
$ | 412,101 |
|
$ | 396,332 |
|
$ | 1,502,859 |
|
$ | 1,396,940 |
|
|
| Energy sales volumes (Unaudited) | | |
| Electricity (in mWh) | | |
| Residential | | |
| 1,930,772 |
|
| 1,854,841 |
|
| 7,367,917 |
|
| 7,180,292 |
|
| Commercial | | |
| 2,146,246 |
|
| 2,058,314 |
|
| 6,315,736 |
|
| 6,100,560 |
|
| Industrial | | |
| 351,834 |
|
| 341,076 |
|
| 1,008,459 |
|
| 1,030,225 |
|
| Other, including change in unbilled | | |
| 33,569 |
|
| 73,560 |
|
| (269,806 |
) |
| (186,586 |
) |
| |
|
| Subtotal, retail sales | | |
| 4,462,421 |
|
| 4,327,791 |
|
| 14,422,306 |
|
| 14,124,491 |
|
| Transportation, including change in unbilled | | |
| 530,204 |
|
| 521,252 |
|
| 1,473,620 |
|
| 1,521,366 |
|
| Sales to other utilities & marketers | | |
| 379,280 |
|
| 624,044 |
|
| 930,570 |
|
| 1,741,305 |
|
| |
|
| Total mWh | | |
| 5,371,905 |
|
| 5,473,087 |
|
| 16,826,496 |
|
| 17,387,162 |
|
| Gas (in 000's of therms) | | |
| Residential | | |
| 43,403 |
|
| 42,353 |
|
| 315,128 |
|
| 315,033 |
|
| Commercial | | |
| 35,067 |
|
| 34,139 |
|
| 182,749 |
|
| 177,915 |
|
| Industrial | | |
| 9,206 |
|
| 9,458 |
|
| 34,142 |
|
| 32,968 |
|
| Transportation | | |
| 45,238 |
|
| 46,152 |
|
| 148,834 |
|
| 155,284 |
|
| |
|
| Total gas volumes | | |
| 132,914 |
|
| 132,102 |
|
| 680,853 |
|
| 681,200 |
|
|
| Margins 3 ($ in thousands; unaudited) | | |
| Electric | | |
$ | 149,271 |
|
$ | 139,610 |
|
$ | 451,997 |
|
$ | 458,536 |
|
| Gas | | |
| 34,349 |
|
| 33,606 |
|
| 163,035 |
|
| 161,400 |
|
|
| Customers served 4 (Unaudited) | | |
| Electricity | | |
| Residential | | |
| 878,208 |
|
| 856,801 |
|
| 871,422 |
|
| 851,994 |
|
| Commercial | | |
| 109,952 |
|
| 109,403 |
|
| 109,447 |
|
| 108,118 |
|
| Industrial | | |
| 3,939 |
|
| 3,947 |
|
| 3,957 |
|
| 3,947 |
|
| Other | | |
| 2,233 |
|
| 2,084 |
|
| 2,163 |
|
| 2,048 |
|
| Transportation | | |
| 17 |
|
| 16 |
|
| 17 |
|
| 16 |
|
| |
|
| Total electricity customers | | |
| 994,349 |
|
| 972,251 |
|
| 987,006 |
|
| 966,123 |
|
| Gas | | |
| Residential | | |
| 608,873 |
|
| 585,947 |
|
| 602,085 |
|
| 580,704 |
|
| Commercial | | |
| 49,267 |
|
| 47,488 |
|
| 48,712 |
|
| 47,244 |
|
| Industrial | | |
| 2,689 |
|
| 2,709 |
|
| 2,712 |
|
| 2,721 |
|
| Transportation | | |
| 129 |
|
| 134 |
|
| 129 |
|
| 135 |
|
| |
|
| Total gas customers | | |
| 660,958 |
|
| 636,278 |
|
| 653,638 |
|
| 630,804 |
|
|
| Weather (Unaudited) | | |
| Actual heating degree days | | |
| 219 |
|
| 135 |
|
| 2,779 |
|
| 2,832 |
|
| Normal heating degree days 5 | | |
| 238 |
|
| 238 |
|
| 3,089 |
|
| 3,068 |
|
| 1 |
Effective
January 1, 2004, non-trading derivative instruments meeting Emerging Issues Task Force
Issue No. 03-11 must be shown net in the income statement. Previous year amounts have
been reclassified to conform to the current presentation. |
| 2 |
Includes
Conservation Trust collection and sales of non-core gas supplies. As of the third quarter
2003 the Conservation Trust payments to bondholders are no longer shown as a reduction in
revenue but as an expense due to the consolidation of the Conservation Trust onto PSE’s
books beginning July 1, 2003. There is no impact on net income. |
| 3 |
Electric
margin is electric sales to retail and transportation customers less the cost of
generating and purchasing electric energy sold to customers, including transmission
costs, to bring electric energy to PSE’s service territory. Gas margin is gas sales
to retail and transportation customers less the cost of gas purchased, including gas
transportation costs, to bring gas to PSE’s service territory. |
| 4 |
Quarterly
data represents average served during September. |
| 5 |
Seattle-Tacoma
Airport statistics reported by NOAA which are based on a 30-year average, 1971-2000.
Heating degree days measure how far the daily average temperature falls below 65 degrees.
Heating degree days in 2004 are adjusted for leap year by adding the February 28th
heating degree day amount. |
PUGET ENERGY —
SEGMENT RESULTS
(In thousands)
Three months ended 9/30/04 (Unaudited)
|
Regulated
Utility
Operations
|
InfrastruX
|
Other1
|
Puget Energy
Total
|
| Revenues |
|
|
$ | 412,101 |
|
$ | 99,925 |
|
$ | 2,925 |
|
$ | 514,951 |
|
| Depreciation and amortization | | |
| 57,534 |
|
| 4,606 |
|
| 64 |
|
| 62,204 |
|
| Income taxes | | |
| 6,254 |
|
| 1,567 |
|
| 703 |
|
| 8,524 |
|
| Operating income | | |
| 48,738 |
|
| 3,607 |
|
| 1,480 |
|
| 53,825 |
|
| Interest charges | | |
| 41,072 |
|
| 1,730 |
|
| 55 |
|
| 42,857 |
|
| Minority interest | | |
| -- |
|
| 162 |
|
| -- |
|
| 162 |
|
| Net income | | |
| 8,126 |
|
| 1,677 |
|
| 1,321 |
|
| 11,124 |
|
|
| Goodwill, net at 9/30/04 | | |
$ | -- |
|
$ | 133,069 |
|
$ | -- |
|
$ | 133,069 |
|
| Total assets at 9/30/04 | | |
| 5,409,049 |
|
| 366,462 |
|
| 69,901 |
|
| 5,845,412 |
|
|
| Three months ended 9/30/03 (Unaudited) | | |
|
| Revenues | | |
$ | 396,332 |
|
$ | 93,142 |
|
$ | 784 |
|
$ | 490,258 |
|
| Depreciation and amortization | | |
| 54,881 |
|
| 4,216 |
|
| 62 |
|
| 59,159 |
|
| Income taxes | | |
| (1,260 |
) |
| 1,492 |
|
| (72 |
) |
| 160 |
|
| Operating income | | |
| 51,018 |
|
| 3,390 |
|
| (82 |
) |
| 54,389 |
|
| Interest charges | | |
| 44,178 |
|
| 1,662 |
|
| 53 |
|
| 45,893 |
|
| Minority interest | | |
| -- |
|
| 156 |
|
| -- |
|
| 156 |
|
| Net income | | |
| 9,396 |
|
| 1,616 |
|
| (9 |
) |
| 11,003 |
|
|
| Nine months ended 9/30/04 (Unaudited) | | |
|
| Revenues | | |
$ | 1,502,859 |
|
$ | 267,496 |
|
$ | 4,005 |
|
$ | 1,774,360 |
|
| Depreciation and amortization | | |
| 169,845 |
|
| 13,577 |
|
| 192 |
|
| 183,614 |
|
| Income taxes | | |
| 40,153 |
|
| 3,685 |
|
| 469 |
|
| 44,307 |
|
| Operating income | | |
| 188,148 |
|
| 9,186 |
|
| 1,387 |
|
| 198,721 |
|
| Interest charges | | |
| 124,900 |
|
| 4,514 |
|
| 157 |
|
| 129,571 |
|
| Minority interest | | |
| -- |
|
| 408 |
|
| -- |
|
| 408 |
|
| Net income | | |
| 65,347 |
|
| 4,237 |
|
| 1,126 |
|
| 70,710 |
|
|
| Nine months ended 9/30/03 (Unaudited) | | |
|
| Revenues | | |
$ | 1,396,940 |
|
$ | 256,162 |
|
$ | 1,853 |
|
$ | 1,654,955 |
|
| Depreciation and amortization | | |
| 164,074 |
|
| 12,176 |
|
| 174 |
|
| 176,424 |
|
| Income taxes | | |
| 35,528 |
|
| 964 |
|
| (134 |
) |
| 36,358 |
|
| Operating income | | |
| 206,856 |
|
| 5,236 |
|
| 91 |
|
| 212,183 |
|
| Interest charges | | |
| 135,349 |
|
| 4,119 |
|
| 71 |
|
| 139,539 |
|
| Minority interest | | |
| -- |
|
| 106 |
|
| -- |
|
| 106 |
|
| Net income | | |
| 74,939 |
|
| 1,007 |
|
| 2,037 |
|
| 77,983 |
|
|
| Goodwill, net at 12/31/03 | | |
$ | -- |
|
$ | 133,302 |
|
$ | -- |
|
$ | 133,302 |
|
| Total assets at 12/31/03 | | |
| 5,257,157 |
|
| 342,332 |
|
| 75,196 |
|
| 5,674,685 |
|
|
PUGET SOUND ENERGY
— CAPITALIZATION2
(In thousands)
|
(Unaudited)
At September 30,
2004
|
At December 31,
2003
|
|
Amount
|
%
|
Amount
|
%
|
| Junior subordinated debentures of the corporation |
|
|
| |
|
| |
|
| |
|
| |
|
| payable to a subsidiary trust holding | | |
| mandatorily redeemable preferred securities | | |
$ | 280,250 |
|
| 7 |
.0% |
$ | 280,250 |
|
| 7 |
.2% |
| Mandatorily redeemable preferred stock and | | |
| long-term debt, including current maturities | | |
| 2,148,458 |
|
| 53 |
.9% |
| 2,054,894 |
|
| 52 |
.8% |
| Common equity | | |
| 1,556,670 |
|
| 39 |
.1% |
| 1,555,469 |
|
| 40 |
.0% |
|
| Total capitalization including short-term debt | | |
$ | 3,985,378 |
|
| 100 |
.0% |
$ | 3,890,613 |
|
| 100 |
.0% |
|
| 1 |
Includes
the non-regulated subsidiaries of Puget Sound Energy and miscellaneous holding company
expenses. The principal non-regulated subsidiary of PSE is a real estate development
company. |
| 2 |
At
September 30, 2004 and December 31, 2003, Rainier Receivables, a wholly owned subsidiary
of PSE, had sold $61 million and $111 million, respectively, in accounts receivable under
the accounts receivable securitization program. |
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused
this report to be signed on their behalf by the undersigned hereunto duly authorized.
| |
Corporate Secretary and
Chief Accounting Officer |