Item 7.01 Regulation FD Disclosure

Puget Energy, the parent company of Puget Sound Energy (PSE), a regulated utility providing electric and natural gas service primarily to the Puget Sound region of western Washington noted that Puget Holdings LLC, a consortium of long-term infrastructure investors, has committed equity and debt financing in place to complete the pending merger and to provide significant capital for PSE's future needs.

The consummation of the merger is subject to certain closing conditions, including regulatory approval from the Washington Utilities and Transportation Commission ("Washington Commission"). A joint application was filed with the Washington Commission on December 17, 2007, by PSE and Puget Holdings, seeking approval of the merger. On July 21, 2008, PSE and Puget Holdings reached a multi party settlement with all but one of the parties to resolve all issues in the merger proceeding. A merger proposal in Washington state has no statutory time deadline by which the Washington Commission is required to make a decision. All federal and shareholder approvals have been obtained.

Puget Energy also noted that considering the number of business days remaining in 2008, the merger transaction is now not expected to close this year. The merger agreement provides that the parties close 15 business days after all closing conditions have been met, including approval from the Washington Commission.