Regulation and Rates (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Net Regulatory Assets and Liabilities


Puget Energy	Remaining Amortization Period	December 31,
(Dollars in Thousands)		2022		2021
Total PSE regulatory assets	(a)	$	896,438	$	952,539
Puget Energy acquisition adjustments:
Regulatory assets related to power contracts	3 to 30 years	7,904		9,689

Total Puget Energy regulatory assets		904,342		962,228
Total PSE regulatory liabilities	(a)	(1,961,139)		(1,709,461)
Puget Energy acquisition adjustments:
Deferred income taxes		563		565
Regulatory liabilities related to power contracts	3 to 30 years	(63,660)		(80,934)
Various other regulatory liabilities	Varies	(1,264)		(1,264)
Total Puget Energy regulatory liabilities		(2,025,500)		(1,791,094)
Puget Energy net regulatory asset (liabilities)		$	(1,121,158)	$	(828,866)

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(a)Puget Energy’s regulatory assets and liabilities include purchase accounting adjustments under ASC 805.

Subsidiaries [Member]

Regulatory Assets [Line Items]

Schedule of Net Regulatory Assets and Liabilities

The net regulatory assets and liabilities at December 31, 2022, and 2021, are included the following tables:


Puget Sound Energy	Remaining Amortization Period	December 31,
(Dollars in Thousands)		2022		2021
Environmental remediation	(a)	$	141,893	$	127,977
Storm damage costs electric	3 to 5 years	127,524		127,789
PCA mechanism	N/A	112,207		79,546
Chelan PUD contract initiation	8.8 years	62,611		69,699
Deferred Washington Commission AFUDC	30 years	61,463		62,244
Baker Dam licensing operating and maintenance costs	(b)	55,049		54,525
Get to zero depreciation expense deferral (c)	1 to 4 years	49,605		50,220
Lower Snake River	14.4 years	48,536		53,757
Decoupling deferrals and interest (d)	Less than 2 years	36,773		79,125
Unamortized loss on reacquired debt	1 to 45 years	33,732		35,805
Advanced metering infrastructure	3 years	30,431		23,037
Washington Commission LNG	N/A	25,188		1,764
PGA receivable	2 years	—		57,935
Generation plant major maintenance, excluding Colstrip	3 to 7 years	20,374		12,094
Low Income Program Costs	N/A	17,370		21,755
Property tax tracker	Less than 2 years	12,398		25,896
Energy conservation costs	(a)	10,296		3,573
Washington Commission electric vehicle (c)	4 years	7,796		6,109
Regulatory filing fee deferral	N/A	7,559		—
Snoqualmie licensing operating and maintenance costs	(b)	7,445		7,446
Washington Commission COVID-19	N/A	7,051		3,657
Water heater rental property loss	N/A	5,725		5,725
Mint Farm ownership and operating costs	2.3 years	4,317		6,318
Colstrip major maintenance (c)	3 years	4,035		4,035
Various other regulatory assets	(a)	7,060		32,508
Total PSE regulatory assets		$	896,438	$	952,539
Deferred income taxes (e)	N/A	(811,724)		(866,541)
Cost of removal	(f)	(639,320)		(563,129)
PGA unrealized gain	N/A	(287,725)		(60,728)
Repurposed production tax credits	N/A	(133,855)		(134,270)
Decoupling liability	Less than 2 years	(63,206)		(36,506)
Green direct	N/A	(11,837)		(13,194)
Refund on counterparty settlement	1 year	(4,353)		—
PGA liability	2 years	(3,536)		—
Various other regulatory liabilities	(a)	(5,583)		(35,093)
Total PSE regulatory liabilities		(1,961,139)		(1,709,461)
PSE net regulatory assets (liabilities)		$	(1,064,701)	$	(756,922)

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(a)Amortization periods vary depending on timing of underlying transactions.

(b)The FERC license requires PSE to incur various O&M expenses over the life of the 40 year and 50 year license for Snoqualmie and Baker, respectively. The regulatory asset represents the net present value of future expenditures and will be offset by actual costs incurred.

(c)Amortization period approved in 2022 GRC, beginning January 2023.

(d)Decoupling deferrals and interest includes a 24 month GAAP reserve of zero and $3.0 million for December 31, 2022 and 2021, respectively.

(e)For additional information, see Note 14,"Income Taxes" to the consolidated financial statements included in Item 8 of this report.

(f)The balance is dependent upon the cost of removal of underlying assets and the life of utility plant.

Schedule of Graduated Scale of Rate Adjustment Mechanism

Effective January 1, 2017, the following graduated scale is used in the PCA mechanism:


	Company’s Share				Customers' Share
Annual Power Cost Variability	Over		Under		Over		Under
Over or Under Collected by up to $17 million	100	%	100	%	—	%	—	%
Over or Under Collected by between $17 million - $40 million	35		50		65		50
Over or Under Collected beyond $40 + million	10		10		90		90

Schedule of PGA Receivable Payable

The following table presents the PGA mechanism balances and activity at December 31, 2022 and December 31, 2021:


Puget Energy and Puget Sound Energy
(Dollars in Thousands)	At December 31,		At December 31,
PGA receivable balance and activity	2022		2021
PGA receivable beginning balance	$	57,935	$	87,655
Actual natural gas costs	457,950		364,775
Allowed PGA recovery	(496,879)		(396,236)
Interest	1,674		1,741
Refund from counterparty settlement	(24,216)		—
PGA (liability)/receivable ending balance	$	(3,536)	$	57,935