TEXT-S&P release on Puget Energy

(The following statement was released by the rating agency)

March 26 - The 'BBB-' corporate credit rating on Puget Energy Inc. (PSD.N: Quote, Profile, Research)
(Puget) and Puget Sound Energy Inc. (PSE) remains on CreditWatch with negative
implications, pending the requisite approvals for final outcome of regulatory
approval proceedings. The ratings reflect the excellent business profile of
PSE, a regulated, vertically integrated electric and gas utility, and the
consolidated financial risk profile of Puget.

"The CreditWatch listing reflects the possibility that debt ratings for
Puget and PSE could be lowered contingent on the final outcome of regulatory
merger approval proceedings," said Standard & Poor's Ratings Services credit
analyst Antonio Bettinelli. "Importantly, the company's credit profile has
been improving, which provides financial flexibility to accommodate the
proposed capital structure at the current rating level. Still, Puget's
expected consolidated credit measures post-transaction will be stretched and
the final regulatory order could weaken anticipated cash flow coverage
metrics."

Standard & Poor's placed the ratings of holding company Puget Energy Inc.
and its electric and gas utility subsidiary Puget Sound Energy Inc. on
CreditWatch with negative implications on Oct. 26, 2007. The action followed
the announcement that Puget Energy has agreed to sell itself to a consortium
of private investors led by Macquarie Infrastructure Partners, an affiliate of
Macquarie Group Ltd. (A-/Stable/A-2) for $7.4 billion. The proposed
transaction is to be financed with a significant amount of debt at the holding
company and is expected to increase debt leverage on a consolidated basis.

Bellevue, Wash.-based Puget had roughly $3.1 billion of total debt
outstanding as of Dec. 31, 2007.

Complete ratings information is available to subscribers of
RatingsDirect, the real-time Web-based source for Standard & Poor's credit
ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings
referenced herein can be found on Standard & Poor's public Web site at
www.standardandpoors.com; select your preferred country or region, then
Ratings in the left navigation bar, followed by Credit Ratings Search.
(New York Ratings Team)