Utility Plant (Tables)

12 Months Ended

Dec. 31, 2018



		Puget Energy						Puget Sound Energy
Utility Plant	Estimated Useful Life	At December 31,						At December 31,
(Dollars in Thousands)	(Years)	2018			2017			2018			2017
Distribution plant	20-65	$	6,122,739		$	5,670,351		$	7,722,024		$	7,289,998
Production plant	12-90	3,099,805			3,068,135			3,974,250			3,954,057
Transmission plant	43-75	1,442,854			1,361,495			1,550,950			1,471,337
General plant	5-75	682,976			586,226			718,105			628,179
Intangible plant (including capitalized software)	NA	662,328			447,568			652,942			438,185
Plant acquisition adjustment	NA	242,826			242,826			282,792			282,792
Underground storage	25-60	35,404			31,815			48,874			45,288
Liquefied natural gas storage	25-60	12,628			12,628			14,498			14,498
Plant held for future use	NA	39,384			53,428			39,536			53,580
Recoverable Cushion Gas	NA	8,655			8,655			8,655			8,655
Plant not classified	NA	239,857			275,014			239,857			275,014
Capital leases, net of accumulated amortization¹	NA	1,315			1,129			1,315			1,129
Less: accumulated provision for depreciation		(2,832,321		)	(2,428,524		)	(5,495,348		)	(5,131,966		)
Subtotal		$	9,758,450		$	9,330,746		$	9,758,450		$	9,330,746
Construction work in progress	NA	550,466			495,937			550,466			495,937
Net utility plant		$	10,308,916		$	9,826,683		$	10,308,916		$	9,826,683

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¹	At December 31, 2018 and 2017, accumulated amortization of capital leases at Puget Energy and PSE was $1.3 million and $0.7 million, respectively.

Schedule of Jointly Owned Utility Plants

These amounts are also included in the Utility Plant table above. The Company's share of fuel costs and operating expenses for plant in service are included in the corresponding accounts in the Consolidated Statements of Income.



Puget Energy
Jointly Owned Generating Plants (Dollars in Thousands)	Energy Source (Fuel)	Company’s Ownership Share	Plant in Service at Cost		Construction Work in Progress		Accumulated Depreciation
Colstrip Units 1 & 2	Coal	50.0%	$	239,341	$	—	$	(62,420	)
Colstrip Units 3 & 4	Coal	25.0%	318,736		—		(98,641		)
Colstrip Units 1 – 4 Common Facilities	Coal	various	83		—		(38		)
Frederickson 1	Natural Gas	49.85%	61,790		—		(8,500		)
Jackson Prairie	Natural Gas Storage	33.34%	33,831		404		(7,355		)
Tacoma LNG	LNG	various	—		296,324		—

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¹	As of December 31, 2018, PE's ownership share in Colstrip 1 & 2 plant-in-service includes $130.7 million in regulatory assets related to the 2017 GRC update to depreciation rates for the expected shutdown date of July 1, 2022.



Puget Sound Energy
Jointly Owned Generating Plants (Dollars in Thousands)	Energy Source (Fuel)	Company’s Ownership Share	Plant in Service at Cost		Construction Work in Progress		Accumulated Depreciation
Colstrip Units 1 & 2¹	Coal	50.0%	$	368,242	$	—	$	(191,323	)
Colstrip Units 3 & 4	Coal	25.0%	578,008		—		(357,914		)
Colstrip Units 1 – 4 Common Facilities	Coal	various	252		—		(206		)
Frederickson 1	Natural Gas	49.85%	67,858		—		(14,567		)
Jackson Prairie	Natural Gas Storage	33.34%	47,975		404		(21,499		)
Tacoma LNG	LNG	various	—		130,756		—

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¹	As of December 31, 2018, PSE's ownership share in Colstrip 1 & 2 plant-in-service includes $130.7 million in regulatory assets related to the 2017 GRC update to depreciation rates for the expected shutdown date of July 1, 2022.

Schedule of Asset Retirement Obligations

The following table describes the changes to the Company’s ARO for the year ended December 31, 2018:



Puget Energy and Puget Sound Energy	At December 31,
(Dollars in Thousands)	2018			2017
Asset retirement obligation at beginning of the period	$	191,176		$	200,345
New asset retirement obligation recognized in the period	501			2,881
Relief of liability	(4,750		)	(3,841		)
Revisions in estimated cash flows	(10,512		)	(13,748		)
Accretion expense	5,788			5,539
Asset retirement obligation at end of period¹	$	182,203		$	191,176