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Long-Term Debt
 12 Months Ended
Dec. 31, 2019
Long-term Debt, Unclassified [Abstract]  
Long-term Debt Long-Term Debt
The following table presents outstanding long-term debt principal amounts and due dates as of 2019 and 2018:
(Dollars in Thousands)December 31,
SeriesTypeDue20192018
Puget Sound Energy:
5.500%  
Promissory Note1
2020$—  $2,412  
7.150%  First Mortgage Bond202515,000  15,000  
7.200%  First Mortgage Bond20252,000  2,000  
7.020%  Senior Secured Note2027300,000  300,000  
7.000%  Senior Secured Note2029100,000  100,000  
3.900%  Pollution Control Bond2031138,460  138,460  
4.000%  Pollution Control Bond203123,400  23,400  
5.483%  Senior Secured Note2035250,000  250,000  
6.724%  Senior Secured Note2036250,000  250,000  
6.274%  Senior Secured Note2037300,000  300,000  
5.757%  Senior Secured Note2039350,000  350,000  
5.795%  Senior Secured Note2040325,000  325,000  
5.764%  Senior Secured Note2040250,000  250,000  
4.434%  Senior Secured Note2041250,000  250,000  
5.638%  Senior Secured Note2041300,000  300,000  
4.300%  Senior Secured Note2045425,000  425,000  
4.223%  Senior Secured Note2048600,000  600,000  
3.250%  Senior Secured Note2049450,000  —  
4.700%  Senior Secured Note205145,000  45,000  
*Debt discount, issuance cost and other*(37,718) (31,412) 
Total PSE long-term debt4,336,142  3,894,860  
Puget Energy:
*Fair value adjustment of PSE long-term debt*(173,865) (182,372) 
*Revolving Credit Agreement202324,100  11,900  
*Term Loan Agreement2021174,000  150,000  
*Term Loan Agreement2022210,000  —  
6.500%  
Senior Secured Note2
2020—  450,000  
6.000%  Senior Secured Note2021500,000  500,000  
5.625%  Senior Secured Note2022450,000  450,000  
3.650%  Senior Secured Note2025400,000  400,000  
*Debt discount, issuance cost and other*(52) (1,897) 
Total Puget Energy long-term debt$5,920,325  $5,672,491  
___________________
*Not Applicable.
1.5.500% Promissory Note in the amount of $2.4 million was classified on the Balance Sheet as a current maturity of long-term debt as of August 12, 2019.
2.6.500% Senior Secured Note in the amount of $450.0 million was classified on the Balance Sheet as a current maturity of long-term debt as of December 14,2019.
PSE's senior secured notes will cease to be secured by the pledged first mortgage bonds on the date that all of the first mortgage bonds issued and outstanding under the electric or natural gas utility mortgage indenture have been retired.  As of December 31, 2019, the latest maturity date of the first mortgage bonds, other than pledged first mortgage bonds, is December 22, 2025.

Puget Energy Long-Term Debt
On October 1, 2018, Puget Energy entered into a $150.0 million, three-year term loan agreement with a small group of banks. The agreement allows Puget Energy to borrow at either the banks' prime rate or at London Interbank Offered Rate (LIBOR) plus a spread based on credit rating. The Term Loan Agreement also includes an expansion feature, pursuant to which Puget Energy may request to increase the aggregate amount of the Term Loan Agreement, obtain incremental term loans or any combination of increases and incremental term loans in an amount up to $100.0 million. The proceeds from the term loan will be used to repay borrowings under the revolving credit facility, which carries a higher interest rate.
In April 2019, Puget Energy entered into an additional $24.0 million of supplemental loans under the expansion feature of the term loan agreement with the existing lenders. All other terms and conditions of the agreement remain unchanged. The proceeds from the term loan and supplemental loans will be used to repay borrowings under the revolving credit facility, which carries a higher interest rate.
On September 26, 2019, Puget Energy entered into a separate $210.0 million, three-year term loan agreement with a small group of banks. The agreement allows Puget Energy to borrow at either the banks' prime rate or LIBOR plus a spread, which will vary as those base rates fluctuate over the loan period. The Term Loan Agreement also includes an expansion feature, pursuant to which Puget Energy may request to increase the aggregate amount of the Term Loan Agreement, obtain incremental term loans or any combination of increases and incremental term loans in an amount up to $100.0 million. The proceeds from the term loan were contributed as equity to PSE and used to repay outstanding short term debt under the Company's commercial paper program.

Puget Sound Energy Long-Term Debt
On August 2, 2019, PSE filed a new shelf registration statement under which it may issue, up to $1.0 billion aggregate principal amount of senior notes secured by first mortgage bonds. As of the date of this report, $550.0 million was available under the registration. The shelf registration will expire in August 2022.
Substantially all utility properties owned by PSE are subject to the lien of the Company’s electric and natural gas mortgage indentures.  To issue additional first mortgage bonds under these indentures, PSE’s earnings available for interest must exceed certain minimums as defined in the indentures.  At December 31, 2019, the earnings available for interest exceeded the required amount.
On March 5, 2018, PSE commenced a tender offer and related consent solicitation to purchase any and all of the outstanding $250.0 million 6.974% Series A Enhanced Junior Subordinated Notes due June 1, 2067. Holders of the notes received $1,005 per $1,000 principal amount of notes plus accrued and unpaid interest for notes tendered and accepted by the early tender payment deadline of March 16, 2018. Holders of notes tendered after the early tender payment deadline, but prior to the tender offer expiration on April 2, 2018, were to receive the tender offer consideration of $975 per $1,000 of principal amount of the notes plus accrued but unpaid interest. A total of $193.4 million in principal amount of notes were tendered by the early payment deadline and no notes were tendered after the early payment deadline. On March 20, 2018, $194.9 million was paid to the holders of the tendered notes. This amount included the principal, early tender consideration and accrued interest up to, but not including March 20, 2018.
Concurrently with the tender offer, PSE solicited consents from a majority (in principal amount) of the holders of PSE’s 6.274% Senior Notes due March 15, 2037 to terminate the replacement capital covenant granted to the holders of those notes. The termination of the covenant was necessary because it included restrictions related to repurchases, redemptions and repayments of the 6.974% Series A Enhanced Junior Subordinated Notes. PSE received consents from holders of 87.7% of the 6.274% Senior Notes and paid a consent fee totaling $2.6 million to those holders on March 19, 2018.
On March 28, 2018, PSE issued a notice of redemption, effective April 27, 2018, for the remaining $56.6 million principal amount of the 6.974% Series A Enhanced Junior Subordinated Notes. The notes were redeemed at a price equal to 100% of their principal amount plus accrued and unpaid interest up to, but excluding the redemption date.
On June 4, 2018, PSE issued $600.0 million of 30-year Senior Notes under its senior note indenture at an interest rate of 4.223% with a maturity date of June 15, 2048. The proceeds from the issuance were used to pay the principal and accrued interest on the Company’s $200.0 million Secured Notes that matured on June 15, 2018, outstanding commercial paper borrowings of $348.0 million and other general corporate expenses.
On August 30, 2019, PSE issued $450.0 million of senior notes at an interest rate of 3.250%.  The notes pay interest semi-annually and are due to mature on September 15, 2049. Proceeds from the sale of the notes were used to repay outstanding short term debt under the Company’s commercial paper program.

Long-Term Debt Maturities
The principal amounts of long-term debt maturities for the next five years and thereafter are as follows:

(Dollars in Thousands)20202021202220232024ThereafterTotal
Maturities of:
PSE$2,412  $—  $—  $—  $—  $4,373,860  $4,376,272  
Puget Energy450,000  674,000  660,000  24,100  —  400,000  2,208,100  
Total long-term debt$452,412  $674,000  $660,000  $24,100  $—  $4,773,860  $6,584,372