Accounting for Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Derivative [Line Items]

Schedule of Credit Risk Related Contingent Features [Table Text Block]

The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position and the amount of additional collateral the Company could be required to post:

Puget Energy and Puget Sound Energy	At December 31,
(Dollars in Thousands)	2018						2017
Contingent Feature	Fair Value1 Liability		Posted Collateral		Contingent Collateral		Fair Value1 Liability		Posted Collateral		Contingent Collateral
Credit rating2	$	574	$	—	$	574	$	3,187	$	—	$	3,187
Requested credit for adequate assurance	18,495		—		—		37,374		—		—
Forward value of contract3	—		—		—		353		2,639		—
Total	$	19,069	$	—	$	574	$	40,914	$	2,639	$	3,187

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¹  Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable.

²  Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral.

³  Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds.

Offsetting Assets and Liabilities [Table Text Block]

The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities:

Puget Energy and Puget Sound Energy
At December 31, 2018
(Dollars in Thousands)	Gross Amounts Recognized in the Statement of Financial Position 1		Gross Amounts Offset in the Statement of Financial Position		Net of Amounts Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Commodity Contracts			Cash Collateral Received/Posted			Net Amount
Assets:
Energy derivative contracts	$	49,019	$	—	$	49,019	$	(25,388	)	$	—		$	23,631
Liabilities:
Energy derivative contracts	57,756		—		57,756		(25,388		)	—			32,368
Puget Energy and Puget Sound Energy
At December 31, 2017
(Dollars in Thousands)	Gross Amounts Recognized in the Statement of Financial Position 1		Gross Amounts Offset in the Statement of Financial Position		Net of Amounts Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Commodity Contracts			Cash Collateral Received/Posted			Net Amount
Assets:
Energy derivative contracts	$	24,405	$	—	$	24,405	$	(17,940	)	$	—		$	6,465
Liabilities:
Energy derivative contracts	86,094		—		86,094		(17,940		)	(353		)	67,801

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¹  All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of set-off.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the volumes, fair values and classification of the Company's derivative instruments recorded on the balance sheets:

Puget Energy and Puget Sound Energy	At Year Ended December 31,
(Dollars in Thousands)	Volumes (millions)		Assets1				Liabilities²
	2018	2017	2018		2017		2018		2017
Electric portfolio derivatives	*	*	33,287		13,391		27,284		49,050
Natural gas derivatives (MMBtus)3	336.6	332.1	15,732		11,014		30,472		37,044
Total derivative contracts			$	49,019	$	24,405	$	57,756	$	86,094
Current			$	46,507	$	22,247	$	46,661	$	64,859
Long-term			2,512		2,158		11,095		21,235
Total derivative contracts			$	49,019	$	24,405	$	57,756	$	86,094

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¹  Balance sheet classification: Current and Long-term Unrealized gain on derivative instruments.

²  Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments.

³  All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the PGA mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers.

^*  Electric portfolio derivatives consist of electric generation fuel of 194.8 million One Million British Thermal Units (MMBtus) and purchased electricity of6.6 million megawatt hours (MWhs) at December 31, 2018 and 166.8 million MMBtus and 2.9 million MWhs at December 31, 2017.

Parent Company [Member]

Derivative [Line Items]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following tables present the effect and locations of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income:

Puget Energy and Puget Sound Energy		Year Ended December 31,
(Dollars in Thousands)	Location	2018		2017			2016
Interest rate contracts1:
	Non-hedged interest rate swap (expense) income	$	—	$	28		$	(1,062	)
	Interest expense	—		—			—
Gas for Power Derivatives:
Unrealized	Unrealized gain (loss) on derivative instruments, net	23,186		(32,492		)	62,318
Realized	Electric generation fuel	26,222		(23,195		)	(39,656		)
Power Derivatives:
Unrealized	Unrealized gain (loss) on derivative instruments, net	18,476		1,702			21,477
Realized	Purchased electricity	12,240		(17,873		)	(21,998		)
Total gain (loss) recognized in income on derivatives		$	80,124	$	(71,830	)	$	21,079

Subsidiaries [Member]

Derivative [Line Items]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

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¹  Interest rate swap contracts were held at Puget Energy, and matured January 2017.