Regulation and Rates (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Net Regulatory Assets and Liabilities


Puget Energy	Remaining Amortization Period	December 31,
(Dollars in Thousands)		2021		2020
Total PSE regulatory assets	(a)	$	952,539	$	918,107
Puget Energy acquisition adjustments:
Regulatory assets related to power contracts	4 to 31 years	9,689		11,728

Total Puget Energy regulatory assets		962,228		929,835
Total PSE regulatory liabilities	(a)	(1,709,461)		(1,685,221)
Puget Energy acquisition adjustments:
Deferred income taxes		565		713
Regulatory liabilities related to power contracts	4 to 31 years	(80,934)		(95,774)
Various other regulatory liabilities	Varies	(1,264)		(1,264)
Total Puget Energy regulatory liabilities		(1,791,094)		(1,781,546)
Puget Energy net regulatory asset (liabilities)		$	(828,866)	$	(851,711)

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(a)Puget Energy’s regulatory assets and liabilities include purchase accounting adjustments under ASC 805.

Subsidiaries [Member]

Regulatory Assets [Line Items]

Schedule of Net Regulatory Assets and Liabilities

The net regulatory assets and liabilities at December 31, 2021, and 2020, are included the following tables:


Puget Sound Energy	Remaining Amortization Period	December 31,
(Dollars in Thousands)		2021		2020
Environmental remediation	(a)	$	127,977	$	102,647
Storm damage costs electric	4 years	127,789		108,491
PCA mechanism	N/A	79,546		82,801
Decoupling deferrals and interest (b)	Less than 2 years	79,125		88,504
Chelan PUD contract initiation	9.8 years	69,699		76,787
Deferred Washington Commission AFUDC	30 years	62,244		59,763
PGA receivable	2 years	57,935		87,655
Baker Dam licensing operating and maintenance costs	(c)	54,525		54,354
Lower Snake River	15.4 years	53,757		58,442
Get to zero depreciation expense deferral	N/A	50,220		53,236
Unamortized loss on reacquired debt	1 to 46 years	35,805		37,991
Property tax tracker	Less than 2 years	25,896		24,860
Advanced metering infrastructure	(a)	23,037		22,652
Low Income Program Costs	N/A	21,755		—
Private Letter Ruling EDIT	1 year	18,850		—
Generation plant major maintenance, excluding Colstrip	1 to 8 years	12,094		10,494
Snoqualmie licensing operating and maintenance costs	(c)	7,446		7,435
Mint Farm ownership and operating costs	3.3 years	6,318		8,318
Washington Commission electric vehicle	N/A	6,109		3,641
Water heater rental property loss	N/A	5,725		6,973
Colstrip major maintenance	(d)	4,035		4,335
Washington Commission COVID-19	N/A	3,657		—
Energy conservation costs	(a)	3,573		8,009
Various other regulatory assets	(a)	15,422		10,719
Total PSE regulatory assets		$	952,539	$	918,107
Deferred income taxes (e)	N/A	(866,541)		(953,987)
Cost of removal	(f)	(563,129)		(508,707)
Repurposed production tax credits	N/A	(134,270)		(79,581)
PGA unrealized gain	N/A	(60,728)		(4,925)
Decoupling liability	Less than 2 years	(36,506)		(16,448)
Treasury grants	2 years	(22,476)		(43,164)
Green direct	N/A	(13,194)		(14,313)
Gain on Sale Shuffleton	N/A	(4,892)		(11,131)
Production tax credits	(g)	—		(47,094)
Various other regulatory liabilities	(a)	(7,725)		(5,871)
Total PSE regulatory liabilities		(1,709,461)		(1,685,221)
PSE net regulatory assets (liabilities)		$	(756,922)	$	(767,114)

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(a)Amortization periods vary depending on timing of underlying transactions.

(b)Decoupling deferrals and interest includes a 24 month GAAP reserve of $3.0 million and $8.0 million for December 31, 2021 and 2020, respectively.

(c)The FERC license requires PSE to incur various O&M expenses over the life of the 40 year and 50 year license for Snoqualmie and Baker, respectively. The regulatory asset represents the net present value of future expenditures and will be offset by actual costs incurred.

(d)Amortization to be determined in a future rate filing.

(e)For additional information, see Note 14,"Income Taxes" to the consolidated financial statements included in Item 8 of this report.

(f)The balance is dependent upon the cost of removal of underlying assets and the life of utility plant.

(g)Amortize as PTCs are utilized on PSE's tax return.

Schedule of Graduated Scale of Rate Adjustment Mechanism

Effective January 1, 2017, the following graduated scale is used in the PCA mechanism:


	Company’s Share				Customers' Share
Annual Power Cost Variability	Over		Under		Over		Under
Over or Under Collected by up to $17 million	100	%	100	%	—	%	—	%
Over or Under Collected by between $17 million - $40 million	35		50		65		50
Over or Under Collected beyond $40 + million	10		10		90		90

Schedule of PGA Receivable Payable

The following table presents the PGA mechanism balances and activity at December 31, 2021 and December 31, 2020:


Puget Sound Energy
(Dollars in Thousands)	At December 31,		At December 31,
PGA receivable balance and activity	2021		2020
PGA receivable beginning balance	$	87,655	$	132,766
Actual natural gas costs	364,775		314,792
Allowed PGA recovery	(396,236)		(363,886)
Interest	1,741		3,983
PGA receivable ending balance	$	57,935	$	87,655