Puget Energy is an energy services holding company incorporated in the state of Washington in 1999. Substantially, all of its operations are conducted through its regulated subsidiary, PSE, a utility company. Puget Energy also has a wholly-owned, non-regulated subsidiary, Puget LNG, LLC (Puget LNG), which was formed in 2016 and has the sole purpose of owning, developing and financing the non-regulated activity of a liquefied natural gas (LNG) facility at the Port of Tacoma, Washington. Puget Energy is owned through a holding company structure by Puget Holdings, LLC (Puget Holdings). Puget Holdings is owned by a consortium of long-term infrastructure investors including Macquarie Infrastructure Partners, Macquarie Capital Group Limited, the Canada Pension Plan Investment Board (CPPIB), the British Columbia Investment Management Corporation (BCIMC) and the Alberta Investment Management Corporation (AIMCo). All of Puget Energy’s common stock is indirectly owned by Puget Holdings. In August 2018, Macquarie Infrastructure Partners and Macquarie Capital Group Limited reached an agreement to sell their shares to Ontario Municipal Employee Retirement System (OMERS), PGGM Vermogensbeheer B.V., AIMCo and BCIMC. The sale is conditioned upon the approval of various federal and state agencies including that of the Washington Commission. Puget Energy and PSE are collectively referred to herein as “the Company.”
Electric operating revenues increased $9.2 million from the prior year primarily due to an increase in other revenues of $15.5 million and an increase in decoupling revenue of $9.8 million; partially offset by a decrease in electric retail sales of $13.6 million and a decrease in other decoupling revenue of $3.1 million. These items are discussed in detail below.
Electric power costs increased $2.9 million primarily due to an increase of $7.9 million of electric generation fuel expense and partially offset by a decrease of $5.1 million of purchased electricity costs. These items are discussed in detail below.
* Includes decoupling cash collections, ROR excess earnings, and decoupling 24-month revenue reserve.