SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
REYNOLDS STEPHEN P
(Last) (First) (Middle)
10885 NE 4TH STREET, PSE-12
(Street)
BELLEVUE WA 98004-5591
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
PUGET ENERGY INC /WA [ PSD ] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
X Director 10% Owner
X Officer (give title below) Other (specify below)
Chairman, President and CEO
3. Date of Earliest Transaction (Month/Day/Year)
01/08/2008
4. If Amendment, Date of Original Filed (Month/Day/Year)
 6. Individual or Joint/Group Filing (Check Applicable Line)
X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common 01/08/2008 M 3,000 A $27.4 98,501 D
Common 01/08/2008 D 3,000 D $27.4 95,501 D
Common 01/08/2008 F 3,405 D $27.4 92,096 D
Common 01/08/2008 M 3,829 A $27.4 58,419 I By Brokerage Account
Common 01/08/2008 F 958 D $27.4 57,461 I By Brokerage Account
Common 950 I By spouse through brokerage account
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
PSE Deferred Compensation Plan $0(1) 01/08/2008 A 7,574 (2) (2) Common 7,574 $27.4 77,989 D
PSE Deferred Compensation Plan $0(1) 01/08/2008 M 3,829(3) (2) (2) Common 3,829 $27.4 74,160 D
Restricted Stock Units $0(4) 01/08/2008 M 3,000 (5) (5) Common 3,000 $27.4 5,000 D
LTIP (6) 12/31/2007 12/31/2007 Common 71,369 71,369 D
LTIP (7) 12/31/2008 12/31/2008 Common 50,282 50,282 D
LTIP (7) 12/31/2009 12/31/2009 Common 45,355 45,355 D
LTIP - Stock Options(8) $22.51 01/07/2003 01/07/2012 Common 40,000 40,000 D
Stock Options - A(9) $22.51 01/07/2003 01/07/2012 Common 110,000 110,000 D
Stock Options - B(10) $22.51 01/07/2003 01/07/2012 Common 150,000 150,000 D
Explanation of Responses:
1. One common share will be received for each stock unit.
2. Phantom share units deferred in the Puget Sound Energy Deferred Compensation Plan.
3. Distribution of 3,829 phantom share units in Puget Energy common stock per prior distribution election, with 958 shares surrendered to pay taxes due.
4. Cash settlement of performance based restricted stock units on vesting date.
5. January 8, 2004 grant of 10,000 shares of restricted stock units to be settled in cash, with dividend equivalent rights. The restrictions on the shares will lapse over a period of five years from January 8, 2004, with 0% vesting after the first year, 0% vesting after the second year, 20% vesting after the third year, an additional 30% vesting after the fourth year and an additional 50% vesting after the date of the 2008 Annual Shareholders Meeting.
6. LTIP share grants under the Puget Energy Long-Term Incentive Plan for Officers and Key Employees. LTIP Shares are paid in stock (or up to 50% in cash) when vested in an amount ranging from zero to 155.5% of LTIP Share Grants.
7. Performance shares grants under the Puget Energy Long Term Incentive Plan (LTIP) for Officers and Key Employees. LTIP performance shares are paid in stock (or cash) when vested from zero to 175% of LTIP performance shares granted.
8. Non-qualified stock option grant to purchase 40,000 shares of common stock with a term of ten years, under the Puget Energy Long-Term Incentive Plan for Officers and Key Employees. Share grants vest over a period of four years from January 1, 2002 at twenty-five percent per year.
9. Nonqualified stock option grant to purchase 110,000 shares of common stock with a term of ten years. Share grants vest over a period of four years from January 1, 2002 at twenty-five percent per year.
10. Nonqualified stock option grant to purchase 150,000 shares of common stock with a term of ten years. Share grants vest over a period of five years from January 1, 2002 at twenty percent per year.
Remarks:
/s/ Samuel S. Osborne, Attorney-in-Fact 01/09/2008
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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