Other |
6 Months Ended |
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Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| Other, Long Term Debt | Other Long-Term Debt On March 27, 2026, Puget Energy issued $450.0 million aggregate principal amount of 7.000% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2056, Series A (the “Initial Series A Notes”) and $450.0 million aggregate principal amount of 7.250% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2056, Series B (the “Initial Series B Notes” and together with the Initial Series A Notes, the “Initial Notes”), in private offerings exempt from registration under the Securities Act of 1933, as amended, pursuant to a Junior Subordinated Indenture, dated as of March 27, 2026 (the “Base Indenture”), as supplemented by the First Supplemental Indenture dated as of March 27, 2026 (together with the Base Indenture, the “Junior Subordinated Indenture”). Interest on the Initial Notes accrues from March 27, 2026 and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2026. The Initial Notes mature on September 15, 2056. The Initial Series A Notes bear interest (i) from and including March 27, 2026 to, but excluding, September 15, 2031 at an annual rate of 7.000% and (ii) from and including September 15, 2031, during each Series A Interest Reset Period (as defined in the Junior Subordinated Indenture) at an annual rate equal to the average of the yields on actively traded United States Treasury securities adjusted to constant maturity, for five-year maturities, for the most recent five business days as of the most recent determination date (the “Five-Year Treasury Rate”), plus 2.961%; provided, that the interest rate during any Series A Interest Reset Period will not reset below 7.000% (which equals the initial interest rate on the Initial Series A Notes). The Initial Series B Notes bear interest (i) from and including March 27, 2026 to, but excluding, September 15, 2036 at an annual rate of 7.250% and (ii) from and including September 15, 2036, during each Series B Interest Reset Period (as defined in the Junior Subordinated Indenture) at an annual rate equal to the Five-Year Treasury Rate as of the most recent determination date, plus 2.848%; provided, that the interest rate during any Series B Interest Reset Period will not reset below 7.250% (which equals the initial interest rate on the Initial Series B Notes). So long as no Event of Default (as defined in the Junior Subordinated Indenture) with respect to the Initial Notes has occurred and is continuing, Puget Energy may, at its option, defer interest payments on the Initial Notes on one or more occasions for up to 10 consecutive years. In the event that Puget Energy were to exercise such right to defer interest on the Initial Notes, Puget Energy would not be able to pay cash dividends during the periods in which such payments were deferred. Proceeds from the issuance of the Initial Notes were used to pay down the outstanding balance on the Puget Energy senior secured credit facility and for general corporate purposes. On May 14, 2026, Puget Energy filed a Form S-4 Registration Statement, which was declared effective by the SEC on May 22, 2026. On May 22, 2026, Puget Energy launched exchange offers for holders of the Initial Series A Notes and the Initial Series B Notes to receive registered Series A Notes (the “Registered Series A Notes”) and registered Series B Notes (the “Registered Series B Notes” and together with the Registered Series A Notes, the “Registered Notes”) with substantially identical terms as the Initial Series A Notes and the Initial Series B Notes, respectively. The exchange offers expired on June 23, 2026, and all Initial Series A Notes and $449.5 million aggregate principal amount of Initial Series B Notes were exchanged and settled on June 29, 2026 for the Registered Series A Notes and the Registered Series B Notes, respectively. The Initial Notes and the Registered Notes are Puget Energy’s unsecured junior subordinated obligations and rank junior in right of payment to all of Puget Energy’s Senior Indebtedness (as defined in the Junior Subordinated Indenture). The Initial Notes and the Registered Notes rank equally in right of payment with all of Puget Energy’s existing and future junior indebtedness. Liquidity Facilities and Other Financing Arrangements On May 18, 2026, Puget Energy entered into the third amended and restated credit agreement, which amended and restated its existing $800.0 million credit facility, extended the maturity date of the existing credit facility and modified the maximum leverage ratio from 0.65 to 1.00, previously, to 0.675 to 1.00. Otherwise, the terms and conditions, including fees, financial covenant, expansion feature and credit spreads remain substantially the same. The proceeds of the Puget Energy credit facility are to be used for general corporate purposes. The maturity date of the credit facility is May 18, 2031. As of June 30, 2026, no amount was drawn and outstanding under Puget Energy's credit facility. On May 18, 2026, PSE entered into the second amended and restated credit agreement, which amended and restated its existing facility, extended the maturity date of the existing credit facility and increased the aggregate commitment from $800.0 million to $1.0 billion. Otherwise, the terms and conditions, including fees, financial covenant, expansion feature and credit spreads remain substantially the same. The proceeds of the PSE credit facility are to be used for general corporate purposes. The maturity date of the credit facility is May 18, 2031. As of June 30, 2026, there was $220.0 million outstanding under the commercial paper program at PSE and no amount was drawn under PSE's credit facility. Outside of the credit facility, PSE maintains a standby letter of credit with TD Bank allowing for standby letter of credit postings of up to $300.0 million as a condition of transacting on the ICE NGX platform as well as participating in the Washington state carbon allowance auctions. As of June 30, 2026, $8.0 million was issued under the standby letter of credit with TD Bank in support of natural gas purchases and carbon allowance purchases. PSE also posted cash collateral of $52.3 million to Intercontinental Exchange for purchased power trading. Additionally, PSE secured rights to $79.3 million of GHG emission allowances under the CCA, which did not clear until July 1, 2026 and thus was included in restricted cash. In support of purchase power contracts, PSE posted no cash collateral and maintained three standby letters of credit in the amounts of $11.9 million, $55.0 million and $9.6 million. In support of a funding participant contract, PSE has a $13.4 million standby letter of credit. For further information on the Company's long-term and short-term debt, credit facilities and other financing arrangements, see Part II, Item 8, Note 7, "Long-Term Debt" and Note 8, "Liquidity Facilities and Other Financing Arrangements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
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| Other, Utility Plant | Utility Plant Beaver Creek Wind Project Phase 2 On March 30, 2026, PSE entered into a turbine supply agreement with GE Renewables North America, LLC to purchase 21 wind turbine generators for a total of $80.1 million. The wind turbine generators are expected to be delivered in 2028. Battle Butte Solar Project On November 14, 2025, PSE executed a membership interest purchase agreement to acquire development rights for a utility-scale solar project located in Stillwater County, Montana. On February 20, 2026, PSE entered into a purchase agreement for photovoltaic modules with an aggregate capacity of 178.0 MW direct current for this project. The total commitment under the module purchase agreement is approximately $60.0 million. As of June 30, 2026, an immaterial amount was recorded in Utility plant - Electric plant, including CWIP, related to this project. Beaver Creek Wind Project Beaver Creek Wind Project is a utility-scale wind project located in Stillwater County, Montana, with nameplate capacity of 248.0 MW that commenced commercial operations in August 2025. On April 15, 2026 and April 16, 2026, PSE transferred the remaining portion of its ITC from the Beaver Creek wind project for net proceeds of $51.7 million and $46.3 million, respectively. PSE does not anticipate any additional tax credit transfers in 2026. As of June 30, 2026, the remaining accumulated deferred ITC balance of $181.1 million was recorded to the "Unamortized investment tax credit" financial statement line item, which will be passed back to customers over the life of the project. Appaloosa Solar Project Appaloosa Solar Project is a utility-scale solar project located in Garfield County, Washington with an expected nameplate capacity of 142.0 MW that is expected to commence commercial operations in 2027. On December 22, 2023, PSE executed and closed a membership interest purchase agreement with HQC Solar Holdings 1, LLC for a 100% ownership interest in Appaloosa Solar Project LLC. Total consideration is expected to be $20.3 million, of which $18.6 million was paid as of June 30, 2026 and the remaining balance is expected to be paid in 2027. On August 30, 2024, PSE entered into an Engineering, Procurement, and Construction agreement to complete the design and construction of the project. Total consideration is expected to be approximately $266.8 million. As of June 30, 2026, $147.8 million was recorded in Utility plant - Electric plant, including CWIP, related to this project. Colstrip Effective January 1, 2026, PSE transferred its 25% interest in Colstrip Units 3 and 4 to NorthWestern Energy. Consistent with the 2019 GRC, PSE accelerated the depreciation of Colstrip Units 3 and 4 to December 31, 2025. Additional costs not covered through repurposed PTCs and hydro-related treasury grants as directed in the 2017 GRC are being recovered through a separate Colstrip tariff as part of the 2022 GRC. On January 1, 2026, PSE applied abandonment accounting specific to Colstrip Units 3 and 4 assets that existed as of December 31, 2025, which were not material. Separately, PSE maintains a 50% ownership interest in the retired Colstrip Units 1 and 2, which have been shut down and out of service since December 31, 2019. For further information on the Company's utility plant, including resource acquisition projects, see Part II, Item 8, Note 6, "Utility Plant" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
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