Bellevue, WA-based Puget Energy Wednesday reported a 2 cents/share earnings increase for the third quarter compared to the same period last year, but its year-to-date results were down compared to the same period in 2001. The company attributed the decrease to the first quarter of this year when its principal utility subsidiary, Puget Sound Energy, was undercollected in terms of retail rates lagging behind 2001’s skyrocketing wholesale electricity prices.

The parent company reported third quarter profits for common stock of $6.6 million, or 7 cents/share, compared to $4.7 million, or 5 cents/share, for the same period in 2001. It has increased its earnings target for the full year to $1.25/share. To-date (nine-month) income was $60.5 million, or 69 cents/share, compared to $92.2 million, or $1.06/share, in the same period last year.

In addition to the undercollection on wholesale power costs in the first quarter this year, Puget Energy in the 2001 nine-month period had the benefit of a one-time 5 cents/share windfall from the sale of a former utility subsidiary and some other gains from real estate sales. By the second quarter of this year, the utility worked out a rate case settlement with state of Washington regulators.

“This (third quarter 2002) quarter continues to reflect our disciplined progress toward restoring the financial health of Puget Energy,” said Stephen Reynolds, Puget’s president/CEO. “While this has been a tumultuous period for the energy industry and financial markets in general, we’re pleased to be able to increase Puget Energy’s 2002 earnings guidance by 5 cents/share to a range of $1.20 to $1.25/share.” He also said that the earnings guidance for 2003 remains the same: $1.75-$1.90/share.

The utility’s “continued strong performance,” Reynolds said, is the primary reason that Puget Energy is now able to increase the 2002 earnings estimates.

Puget said it will conduct a conference call and webcast for the financial community Thursday at 10 a.m. EDT (www.pse.com or 800-428-6051).

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