Accounting for Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

Derivative [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the volumes, fair values and classification 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)		Assets1				Liabilities²
	2019	2018	2019		2018		2019		2018
Electric portfolio derivatives	*	*	$	19,933	$	33,287	$	17,504	$	27,284
Natural gas derivatives (MMBtus)3	316	337	11,375		15,732		8,617		30,472
Total derivative contracts			$	31,308	$	49,019	$	26,121	$	57,756
Current			23,626		46,507		13,428		46,661
Long-term			7,682		2,512		12,693		11,095
Total derivative contracts			$	31,308	$	49,019	$	26,121	$	57,756

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^1.Balance sheet classification: Current and Long-term Unrealized gain on derivative instruments.

^2.Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments.

^3.All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the PGA mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers.

*Electric portfolio derivatives consist of electric generation fuel of 229.3 million One Million British Thermal Units (MMBtus) and purchased electricity of 10.4 million megawatt hours (MWhs) at December 31, 2019, and 194.8 million MMBtus and 6.6 million MWhs at December 31, 2018.

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
December 31, 2019
(Dollars in Thousands)	Gross Amount Recognized in the Consolidated Balance Sheet1		Gross Amounts Offset in the Consolidated Balance Sheet		Net of Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Commodity Contracts2		Cash Collateral Received/Pledged		Net Amount
Assets:
Energy derivative contracts	$	31,308	$	—	$	31,308	$	(14,922)	$	—	$	16,386
Liabilities:
Energy derivative contracts	26,121		—		26,121		(14,922)		2,000		13,199

Puget Energy and Puget Sound Energy
December 31, 2018
(Dollars in Thousands)	Gross Amount Recognized1		Gross Amounts Offset in the Consolidated Balance Sheet		Net of Amounts Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Commodity Contracts2		Cash Collateral Received/Pledged		Net Amount
Assets
Energy Derivative Contracts	$	49,019	$	—	$	49,019	$	(25,388)	$	—	$	23,631
Liabilities
Energy Derivative Contracts	57,756		—		57,756		(25,388)		—		32,368

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^1.All Derivative Contract deals are executed under ISDA, NAESB and WSPP Master Netting Agreements with Right of set-off.

^2.Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments.

Schedule of Credit Risk Related Contingent Features [Table Text Block]

The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position and the amount of additional collateral the Company could be required to post:

Puget Energy and Puget Sound Energy	December 31,
(Dollars in Thousands)	2019						2018
Contingent Feature	Fair Value1 Liability		Posted Collateral		Contingent Collateral		Fair Value1 Liability		Posted Collateral		Contingent Collateral
Credit rating2	$	6,110	$	—	$	6,110	$	574	$	—	$	574
Requested credit for adequate assurance	5,253		—		—		18,495		—		—
Forward value of contract3	—		14,827		N/A		—		—		—
Total	$	11,363	$	14,827	$	6,110	$	19,069	$	—	$	574

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^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.

Parent Company [Member]

Derivative [Line Items]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following tables present the effect and locations of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income:

Puget Energy and Puget Sound Energy		Year Ended December 31,
(Dollars in Thousands)	Location	2019		2018		2017
Interest rate contracts1:
	Non-hedged interest rate swap (expense) income	$	—	$	—	$	28
Gas for Power Derivatives:
Unrealized	Unrealized gain (loss) on derivative instruments, net	16,970		23,186		(32,492)
Realized	Electric generation fuel	10,828		26,222		(23,195)
Power Derivatives:
Unrealized	Unrealized gain (loss) on derivative instruments, net	(20,544)		18,476		1,702
Realized	Purchased electricity	48,686		12,240		(17,873)
Total gain (loss) recognized in income on derivatives		$	55,940	$	80,124	$	(71,830)

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^1.Interest rate swap contracts were held at Puget Energy, and matured January 2017.