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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
February 11, 2000 February 10, 2000
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(Date of earliest
event reported)
PUGET SOUND ENERGY, INC.
(Exact name of registrant as specified in its charter)
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Commission File Number 1-4393
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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)
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<PAGE>
ITEM 5. Other Events
On February 10, 2000, the Company released the following information on
1999 earnings.
NEWS RELEASE
FOR IMMEDIATE RELEASE Contacts:
February 10, 2000 Media: Dorothy Bracken
1-888-831-7250
Analysts: Julie Williams
(425) 462-3808
Puget Sound Energy reports increased 1999 earnings
Bellevue, Wash. (Feb. 10, 2000) - Puget Sound Energy (NYSE:PSD) today
reported 1999 income for common stock of $174.5 million, or $2.06 per share, up
from reported income of $156.6 million, or $1.85 per share in 1998.
"Our financial performance is one of many accomplishments that made 1999 a
year of solid improvements in virtually every aspect of our company's business,"
said President and Chief Executive Officer William S. Weaver. "We continue to
implement our strategy to grow the energy delivery business, adding 26,000
natural gas and 16,300 electric customers to our system in 1999, representing
annual growth of 4.8 percent and 1.8 percent respectively. At the same time, our
focus on customer service resulted in exceeding the 10 service quality measures
established in 1997 in cooperation with the Washington Utilities and
Transportation Commission. These achievements, coupled with effective
cost-management efforts that place us third nationally among investor-owned
combined gas/electric utilities operating distribution systems, were
particularly gratifying."
"Going forward, we remain committed to becoming the best distribution
company anywhere. Being the best means providing the highest level of service at
the lowest cost," added Weaver.
Income for common stock for the 3-month period ended December 31, 1999, was
$57.5 million, or 68 cents per share, compared to income of $59.8 million, or 71
cents per share, for the fourth quarter of 1998. Per-share results for the 1999
fourth quarter were reduced by a charge of $4.2 million, after tax (5 cents per
share), to expense license and development costs related to two proposed
non-regulated, small hydroelectric projects.
-more-
<PAGE>
Puget Sound Energy -- 2
FACTORS IN ANNUAL RESULTS
Increases in the number of electric and natural gas customers served,
together with Pacific Northwest temperatures that averaged near normal as
compared to a warmer than normal 1998 period, improved 12-month retail energy
sales and margins. Favorable hydroelectric conditions also contributed
positively to electric margins in the 1999 period.
Higher 12-month utility operations and maintenance expenses primarily
reflect costs associated with restoring electric service following several
fierce storms which occurred early in 1999 and expenses associated with the
company's Y2K program. Storm and Y2K costs in 1999 were higher than the related
costs in 1998 by $8.3 million and $4.3 million, respectively.
Contributing positively to 1999's results from non-utility operations were
a second-quarter net gain of 10 cents per share 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, and a
third-quarter net gain of 4 cents per share related to the sale and assignment
of certain non-core assets and gas supply transportation contracts. Also
impacting 12-month ended results was the 5 cents per share charge in the fourth
quarter, described above.
FACTORS IN 3-MONTH RESULTS
Increased revenues from retail energy sales reflected continued growth
in the number of customer served, offset in part by the impact of weather that
was 5 percent warmer than the same period in 1998. Favorable hydroelectric
conditions also contributed positively to 1999 fourth quarter margins. Continued
emphasis on cost management contributed to the fourth quarter decline of $3.2
million in utility operations and maintenance expenses.
###
<PAGE>
<TABLE>
PUGET SOUND ENERGY -- SUMMARY INCOME STATEMENT
(In thousands, except per-share amounts)
<CAPTION>
3 months ended 12/31 (1) 12 months ended 12/31
---------------------------------- -----------------------------------
1999 1998 (2) 1999 1998 (2)
------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Operating revenues
Electric $ 475,046 $ 444,302 $ 1,558,012 $ 1,475,208
Gas 162,766 142,022 485,488 416,551
Other 7,011 14,281 23,130 32,097
----------- ------------- ------------- -------------
Total operating revenues 644,823 600,605 2,066,630 1,923,856
----------- ------------- ------------- -------------
Operating expenses
Purchased electricity 240,074 234,267 780,162 752,148
Purchased gas 80,746 58,105 220,009 175,805
Electric generation fuel 26,853 20,155 59,439 56,557
Residential exchange (11,131) (16,230) (39,000) (55,562)
Utility operations & maintenance 61,042 64,266 240,645 231,636
Other operations & maintenance 4,315 11,097 22,387 30,102
Depreciation & amortization 46,999 42,417 175,710 165,587
Conservation amortization 2,372 1,911 7,841 6,199
Other taxes 51,111 44,533 180,141 160,472
Federal income taxes 40,585 44,190 109,164 105,814
----------- ------------- ------------- -------------
Total operating expenses 542,966 504,711 1,756,498 1,628,758
----------- ------------- ------------- -------------
Operating income 101,857 95,894 310,132 295,098
Other income (831) 3,370 25,819 13,182
----------- ------------- ------------- -------------
Income before interest charges 101,026 99,264 335,951 308,280
Interest charges 41,191 36,288 150,384 138,668
----------- ------------- ------------- -------------
Net income 59,835 62,976 185,567 169,612
Less pref. stock dividends accruals 2,376 3,218 11,065 13,003
----------- ------------- ------------- -------------
Income for common stock $ 57,459 $ 59,758 $ 174,502 $ 156,609
Common shares outstanding 84,730 84,561 84,613 84,561
----------- ------------- ------------- -------------
Earnings per common share $ 0.68 $ 0.71 $ 2.06 $ 1.85
<FN>
(1) Partial-year results may not accurately predict full-year performance,
as earnings are significantly affected by weather.
(2) Results for 1998 include certain reclassifications to present financial
results on a consistent basis with 1999.
</FN>
</TABLE>
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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
Date:February 11, 2000 By:
James W. Eldredge
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James W. Eldredge
Corporate Secretary & Controller
