In the wake of a major nonutility sale and the creation of a utility-connected charitable foundation, Bellevue, WA-based Puget Energy Thursday reported sharply increased second quarter profits of $53.5 million, or 46 cents/diluted share, compared with $13.9 million, or 14 cents/diluted share, for the second quarter in 2005. Utility earnings at Puget Sound Energy (PSE) shot up by $17.9 million for the second quarter — $30.1 million, compared with $12.2 million in the same period last year.

Providing service to a little more than 1 million electric utility customers and 700,000 natural gas users, PSE posted retail sales volume increases for the quarter of 3.4% for electricity and 5.1% for natural gas, respectively, compared to results at the end of last year’s second quarter. Electric margin increased by $25.8 million in the quarter, while gas margin increased $7.2 million, Puget reported in its quarterly earnings announcement.

Puget CEO Stephen Reynolds called the results a “strong quarter,” adding it was a combination of “solid utility operations and the completed sale of InfrastruX,” which enabled the company to invest in its core utility business. PSE’s results “reflect higher energy margins as a result of increased retail sales,” he said.

The results were somewhat complicated by the utility construction company’s sale and the subsequent donation of $15 million of those proceeds to create the Puget Sound Energy Charitable Foundation. Some $9.8 million from the InfrastruX sale were designated as the foundation funding in the second quarter, appearing as a negative for that amount against utility earnings. The one-time positive accounting of the construction firm’s sale was $33 million, or 28 cents/diluted share.

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