Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosures [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

The details of income tax (benefit) expense are as follows:

Puget Energy	Year Ended December 31,
(Dollars in Thousands)	2014			2013			2012
Charged to operating expenses:
Current:
Federal	$	—		$	—		$	4,268
State	—			—			—
Deferred:
Federal	57,152			122,559			100,701
State	(167		)	(151		)	(244		)
Total income tax expense	$	56,985		$	122,408		$	104,725

Schedule of Effective Income Tax Rate Reconciliation

Puget Energy	Year Ended December 31,
(Dollars in Thousands)	2014			2013			2012
Income taxes at the statutory rate	$	80,087		$	142,847		$	132,491
Increase (decrease):
Production tax credit	(23,073		)	(22,414		)	(22,188		)
AFUDC excluded from taxable income	(3,790		)	(9,406		)	(16,543		)
Capitalized interest	2,947			7,294			9,757
Utility plant differences	7,090			9,527			8,674
Treasury grant amortization	(8,808		)	(7,651		)	(1,007		)
Tenaska gas contract	—			1			(4,687		)
Other - net	2,532			2,210			(1,772		)
Total income tax expense	$	56,985		$	122,408		$	104,725
Effective tax rate	24.9		%	30.0		%	27.7		%

Schedule of Deferred Tax Assets and Liabilities

The Company’s deferred tax liability at December 31, 2014 and 2013 is composed of amounts related to the following types of temporary differences:

Puget Energy	At December 31,
(Dollars in Thousands)	2014			2013
Utility plant and equipment	$	1,720,730		$	1,625,107
Regulatory asset for income taxes	95,432			146,867
Fair value of debt instruments	73,606			76,991
Other deferred tax liabilities	200,124			202,189
Subtotal deferred tax liabilities	2,089,892			2,051,154
Net operating loss carryforward	(417,684		)	(374,606		)
Production tax credit carryforward	(158,604		)	(135,531		)
Regulatory liability on production tax credit	(84,344		)	(71,880		)
Fair value of derivative instruments	(36,227		)	(7,166		)
Other deferred tax assets	(32,121		)	(60,970		)
Subtotal deferred tax assets	(728,980		)	(650,153		)
Total	$	1,360,912		$	1,401,001

Schedule of Deferred Income Taxes by Balance Sheet Location

The above amounts have been classified in the Consolidated Balance Sheets as follows:

Puget Energy	At December 31
(Dollars in Thousands)	2014			2013
Current deferred taxes	$	(161,445	)	$	(86,004	)
Non-current deferred taxes	1,522,357			1,487,005
Total	$	1,360,912		$	1,401,001

PUGET SOUND ENERGY, INC.

Income Tax Disclosures [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2014		2013		2012
Charged to operating expenses:
Current:
Federal	$	—	$	—	$	4,268
State	—		—		—
Deferred:
Federal	89,342		160,886		145,040
State	—		—		—
Total income tax expense	$	89,342	$	160,886	$	149,308

Schedule of Effective Income Tax Rate Reconciliation

Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2014			2013			2012
Income taxes at the statutory rate	$	114,084		$	180,955		$	176,917
Increase (decrease):
Production tax credit	(23,073		)	(22,414		)	(22,188		)
AFUDC excluded from taxable income	(3,790		)	(9,406		)	(16,543		)
Capitalized interest	2,947			7,294			9,757
Utility plant differences	7,090			9,527			8,674
Treasury grant amortization	(8,808		)	(7,651		)	(1,007		)
Tenaska gas contract	—			1			(4,687		)
Other - net	892			2,580			(1,615		)
Total income tax expense	$	89,342		$	160,886		$	149,308
Effective tax rate	27.4		%	31.1		%	29.5		%

Schedule of Deferred Tax Assets and Liabilities

Puget Sound Energy	At December 31,
(Dollars In Thousands)	2014			2013
Utility plant and equipment	$	1,720,730		$	1,625,107
Regulatory asset for income taxes	94,913			146,350
Other deferred tax liabilities	171,380			131,977
Subtotal deferred tax liabilities	1,987,023			1,903,434
Net operating loss carryforward	(181,514		)	(173,068		)
Production tax credit carryforward	(158,604		)	(135,531		)
Regulatory liability on production tax credit	(84,344		)	(71,880		)
Fair value of derivative instruments	(39,067		)	(9,988		)
Other deferred tax assets	(82,084		)	(69,175		)
Subtotal deferred tax assets	(545,613		)	(459,642		)
Total	$	1,441,410		$	1,443,792

Schedule of Deferred Income Taxes by Balance Sheet Location

Puget Sound Energy	At December 31
(Dollars in Thousands)	2014			2013
Current deferred taxes	$	(208,447	)	$	(141,058	)
Non-current deferred taxes	1,649,857			1,584,850
Total	$	1,441,410		$	1,443,792