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Accounting for Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2014
Derivative [Line Items]  
Schedule of Credit Risk Related Contingent Features [Table Text Block]
The table below presents the fair value of the overall contractual contingent liability positions for the Company's derivative activity at December 31, 2014:
Puget Energy and Puget Sound Energy
Contingent Feature
(Dollars in Thousands)
Fair Value 1
Liability
Posted
Collateral
Contingent
Collateral
Credit rating 2
$
(37,398
)
$
—

$
37,398

Requested credit for adequate assurance
(66,468
)
—

—

Forward value of contract 3
(2,490
)
—

—

Total
$
(106,356
)
$
—

$
37,398

__________
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, 2014
 
 
 
 
 
 
(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
$
24,348

$
—

$
24,348

$
(23,066
)
$
—

$
1,282

Liabilities
 
 
 
 
 
 
Energy Derivative Contracts
$
196,035

$
—

$
196,035

$
(23,066
)
$
(20
)
$
172,949

Interest Rate Swaps 2
$
9,073

$
—

$
9,073

$
—

$
—

$
9,073

 
 
 
 
 
 
 
Puget Energy and Puget Sound Energy
 
 
 
 
At December 31, 2013
 
 
 
 
 
 
(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
$
26,600

$
—

$
26,600

$
(19,491
)
$
—

$
7,109

Liabilities
 
 
 
 
 
 
Energy Derivative Contracts
$
72,988

$
—

$
72,988

$
(19,491
)
$
—

$
53,497

Interest Rate Swaps 2
$
13,223

$
—

$
13,223

$
—

$
—

$
13,223

___________
1. 
All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of Offset.
2 
Interest Rate Swap Contracts are only held at Puget Energy.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the volumes, fair values and locations of the Company's derivative instruments recorded on the balance sheets:
Puget Energy and
Puget Sound Energy
Year Ended December 31,
(Dollars in Thousands)
Volumes (millions)
Assets 1
Liabilities 2
 
2014
2013
2014
2013
2014
2013
Interest rate swap derivatives 3
$450.0
$450.0
$
—

$
—

$
9,073

$
13,223

Electric portfolio derivatives
*
*
4,822

18,479

107,228

37,312

Natural gas derivatives (MMBtus) 4
360.4

423.5

19,526

8,121

88,807

35,676

Total derivative contracts
 


$
24,348

$
26,600

$
205,108

$
86,211

Current
 
 
$
21,178

$
18,867

$
142,195

$
48,049

Long-term
 
 
3,170

7,733

62,913

38,162

Total derivative contracts
 


$
24,348

$
26,600

$
205,108

$
86,211

___________
1 
Balance sheet location: Current and Long-term Unrealized gain on derivative instruments.
2 
Balance sheet location: Current and Long-term Unrealized loss on derivative instruments.
3 
Interest rate swap contracts are only held at Puget Energy.
4 
PSE had a net derivative liability and an offsetting regulatory asset of $69.3 million at December 31, 2014 and $27.6 million at December 31, 2013 related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, due to the PGA mechanism.
* 
Electric portfolio derivatives consist of electric generation fuel of 140.2 million One Million British Thermal Units (MMBtus) and purchased electricity of 5.4 million Megawatt Hours (MWhs) at December 31, 2014 and 145.6 million MMBtus and 8.6 million MWhs at December 31, 2013.
Parent Company [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
The following tables present the Company's pre-tax gain (loss) on derivatives that were previously in a cash flow hedge relationship, and subsequently reclassified out of accumulated OCI into income:
Puget Energy
 
Year Ended December 31,
(Dollars in Thousands)
Location
2014
2013
2012
Interest rate contracts:
Interest expense
$
(144
)
$
(4,505
)
$
(17,811
)
Commodity contracts:
 
 
 
 
Electric derivatives
Electric generation fuel
—

—

100

 
Purchased electricity
(572
)
(57
)
(671
)
Total
 
$
(716
)
$
(4,562
)
$
(18,382
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The following tables present the effect and locations of the Company's derivatives not designated as hedging instruments, recorded on the statements of income:
Puget Energy
 
Year Ended December 31,
(Dollars in Thousands)
Location
2014
2013
2012
Interest rate contracts:
Other deductions
$
(3,915
)
$
2,420

$
(4,288
)
 
Interest expense
500

(5,904
)
(29,727
)
Commodity contracts:
 
 
 

 
Electric derivatives
Unrealized gain (loss) on derivative instruments, net 1
(84,146
)
102,744

131,407

 
Electric generation fuel
6,511

(27,008
)
(66,762
)
 
Purchased electricity
(4,212
)
(38,299
)
(138,551
)
Total gain (loss) recognized in income on derivatives
 
$
(85,262
)
$
33,953

$
(107,921
)
___________
1 
For 2012, the amount differs from the amount stated in the statement of income as it does not include amortization related to contracts that were recorded at fair value at the time of the February 2009 merger and subsequently designated as NPNS of $2.2 million for the year ended December 31, 2012.
PUGET SOUND ENERGY, INC.  
Derivative [Line Items]  
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
Puget Sound Energy
 
Year Ended December 31,
(Dollars in Thousands)
Location
2014
2013
2012
Interest rate contracts:
Interest expense
$
(488
)
$
(488
)
$
(488
)
Commodity contracts:
 
 
 
 
Electric derivatives
Electric generation fuel
—

—

97

 
Purchased electricity
(2,063
)
(3,922
)
(12,955
)
Total
 
$
(2,551
)
$
(4,410
)
$
(13,346
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
Puget Sound Energy
 
Year Ended December 31,
(Dollars in Thousands)
Location
2014
2013
2012
Commodity contracts:
 
 
 
 
Electric derivatives
Unrealized gain (loss) on derivative instruments, net
$
(85,636
)
$
98,880

$
119,120

 
Electric generation fuel
6,511

(27,008
)
(66,762
)
 
Purchased electricity
(4,212
)
(38,299
)
(138,551
)
Total gain (loss) recognized in income on derivatives
 
$
(83,337
)
$
33,573

$
(86,193
)