Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2012

The following table summarizes the Company’s change in benefit obligation for the periods ended June 30, 2012 and December 31, 2011:



Puget Energy and Puget Sound Energy	Qualified Pension Benefits						SERP Pension Benefits						Other Benefits
	Six Months Ended			Year Ended			Six Months Ended			Year Ended			Six Months Ended			Year Ended
(Dollars in Thousands)	June 30, 2012			December 31, 2011			June 30, 2012			December 31, 2011			June 30, 2012			December 31, 2011
Change in benefit obligation:
Benefit obligation at beginning of period	$	565,997		$	532,615		$	48,370		$	44,322		$	16,436		$	16,579
Service cost	8,463			15,822			537			1,241			70			113
Interest cost	12,993			26,263			1,076			2,192			375			807
Actuarial loss/(gain)	2,030			18,485			—			4,467			(132		)	384
Benefits paid	(20,950		)	(27,188		)	(4,271		)	(2,687		)	(866		)	(1,855		)
Medicare part D subsidiary received	—			—			—			—			505			408
Curtailment loss/(gain)¹	—			—			—			(1,165		)	—			—
Benefit obligation at end of period	$	568,533		$	565,997		$	45,712		$	48,370		$	16,388		$	16,436

__________


¹	A curtailment gain was recognized in OCI due to the plan amendment that ceased SERP benefits for non-officers still in the plan as of December 31, 2011.

PUGET ENERGY [Member]

following tables summarize the Company’s net periodic benefit cost for the three and six months ended June 30, 2012 and 2011:



Puget Energy
Three Months Ended June 30,	Qualified Pension Benefits						SERP Pension Benefits				Other Benefits
(Dollars in Thousands)	2012			2011			2012		2011		2012			2011
Components of net periodic benefit cost:
Service cost	$	4,229		$	4,059		$	268	$	310	$	32		$	31
Interest cost	6,551			6,630			538		548		188			204
Expected return on plan assets	(9,101		)	(8,860		)	—		—		(109		)	(125		)
Amortization of prior service cost	(495		)	(495		)	—		—		—			—
Amortization of net loss (gain)	234			—			176		90		17			1
Net periodic benefit cost	$	1,418		$	1,334		$	982	$	948	$	128		$	111



Puget Energy
Six Months Ended June 30,	Qualified Pension Benefits						SERP Pension Benefits				Other Benefits
(Dollars in Thousands)	2012			2011			2012		2011		2012			2011
Components of net periodic benefit cost:
Service cost	$	8,463		$	8,119		$	537	$	620	$	70		$	62
Interest cost	12,993			13,259			1,076		1,096		375			409
Expected return on plan assets	(18,102		)	(17,720		)	—		—		(218		)	(250		)
Amortization of prior service cost	(990		)	(990		)	—		—		—			—
Amortization of net loss (gain)	384			—			351		180		27			1
Net periodic benefit cost	$	2,748		$	2,668		$	1,964	$	1,896	$	254		$	222

PUGET SOUND ENERGY, INC. [Member]



Puget Sound Energy
Three Months Ended June 30,	Qualified Pension Benefits						SERP Pension Benefits				Other Benefits
(Dollars in Thousands)	2012			2011			2012		2011		2012			2011
Components of net periodic benefit cost:
Service cost	$	4,229		$	4,059		$	268	$	310	$	32		$	31
Interest cost	6,551			6,630			538		548		188			204
Expected return on plan assets	(10,434		)	(11,056		)	—		—		(109		)	(125		)
Amortization of prior service cost	(393		)	(394		)	74		141		9			16
Amortization of net loss (gain)	3,790			2,695			358		298		(63		)	(109		)
Amortization of transition obligation	—			—			—		—		12			13
Net periodic benefit cost	$	3,743		$	1,934		$	1,238	$	1,297	$	69		$	30



Puget Sound Energy
Six Months Ended June 30,	Qualified Pension Benefits						SERP Pension Benefits				Other Benefits
(Dollars in Thousands)	2012			2011			2012		2011		2012			2011
Components of net periodic benefit cost:
Service cost	$	8,463		$	8,119		$	537	$	620	$	70		$	62
Interest cost	12,993			13,259			1,076		1,096		375			409
Expected return on plan assets	(20,767		)	(22,112		)	—		—		(217		)	(250		)
Amortization of prior service cost	(787		)	(786		)	146		281		18			31
Amortization of net loss (gain)	7,508			5,389			716		598		(123		)	(217		)
Amortization of transition obligation	—			—			—		—		25			25
Net periodic benefit cost	$	7,410		$	3,869		$	2,475	$	2,595	$	148		$	60