Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020		2019
Charged to operating expenses:
Current:
Federal	$	25,395	$	7,962	$	9,424
State	721		7		164
Deferred:
Federal	(1,759)		(6,414)		7,357
State	158		109		128
Total income tax expense	$	24,515	$	1,664	$	17,073

Schedule of Effective Income Tax Rate Reconciliation

The following reconciliation compares pre-tax book income at the federal statutory rate of 21.0% to the actual income tax expense in the Statements of Income:

Puget Energy	Year Ended December 31,
(Dollars in Thousands)	2021			2020			2019
Income taxes at the statutory rate	$	59,927		$	38,720		$	47,834
Increase (decrease):
Utility plant differences1	$	(22,325)		$	(22,991)		$	(23,025)
AFUDC, net	1,509			(6,095)			(4,462)
Executive compensation	1,386			2,440			2,596
Treasury grant amortization	(5,424)			(8,935)			(7,870)
Excess deferred tax amortization	(13,392)			(3,038)			—
Other–net	2,834			1,563			2,000
Total income tax expense	$	24,515		$	1,664		$	17,073
Effective tax rate	8.6		%	0.9		%	7.5		%

Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2021			2020			2019
Income taxes at the statutory rate	$	79,868		$	63,110		$	69,735
Increase (decrease):
Utility plant differences1	$	(22,325)		$	(22,991)		$	(23,025)
AFUDC, net	1,509			(6,095)			(4,462)
Executive compensation	1,386			2,440			2,596
Treasury grant amortization	(5,424)			(8,935)			(7,870)
Excess deferred tax amortization	(13,392)			(3,038)			—
Other–net	2,637			1,751			2,174
Total income tax expense	$	44,259		$	26,242		$	39,148
Effective tax rate	11.6		%	8.7		%	11.8		%

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1.Utility plant differences include the reversal of excess deferred taxes using the average rate assumption method in the amount of $27.6 million in both 2021 and 2020.

Schedule of Deferred Tax Assets and Liabilities

The Company’s net deferred tax liability at December 31, 2021, and 2020, is composed of amounts related to the following types of temporary differences:

Puget Energy	At December 31,
(Dollars in Thousands)	2021		2020
Utility plant and equipment	$	1,892,674	$	1,923,933
Other deferred tax liabilities	202,783		175,333
Subtotal deferred tax liabilities	2,095,457		2,099,266
Net operating loss carryforward	(254,007)		(261,260)
Net regulatory liability for income taxes	(865,976)		(953,274)
Production tax credit carryforward	—		(35,995)
Other deferred tax assets	(62,990)		(38,008)
Subtotal deferred tax assets	(1,182,973)		(1,288,537)
Total net deferred tax liabilities	$	912,484	$	810,729

Puget Sound Energy	At December 31,
(Dollars in Thousands)	2021		2020
Utility plant and equipment	$	1,892,674	$	1,923,933
Other, net deferred tax liabilities	121,060		91,438
Subtotal deferred tax liabilities	2,013,734		2,015,371
Net regulatory liability for income taxes	(866,541)		(953,987)
Production tax credit carryforward	—		(35,995)
Other deferred tax assets	(62,990)		(38,007)
Subtotal deferred tax assets	(929,531)		(1,027,989)
Total net deferred tax liabilities	$	1,084,203	$	987,382

Subsidiaries [Member]

Income Tax Disclosures [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2021		2020		2019
Charged to operating expenses:
Current:
Federal	$	52,616	$	10,607	$	18,093
State	670		383		570
Deferred:
Federal	(9,027)		15,252		20,485
State	—		—		—
Total income tax expense	$	44,259	$	26,242	$	39,148