The task:

A. Calculate four profitability margins for Puget Sound Energy (two Gross Margins and two Net Margins for each of the 6-month reporting periods (2020 and 2021).

B. Based on your findings, provide an informed recommendation to Washington State Commission: should PSE raise energy prices in 2022 or not?

PUGET ENERGY INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands) (Unaudited) Six months ended June 30, 2021 2020 1,322,414 588.630 19.032 1,929,476 1.137.456 548.640 11,713 1,697,809 367.925 116,866 43,394 217,844 291.229 96,598 -40.801 216,133 Operating revenue: Electric Natural Gas Other Total operating revenue Operating expenses: Energy costs: Purchased electricity Electric generation fuel Residential exchange Purchased natural gas Unrealized (gain) loss on derivative instruments, net Utility operations and maintenance Non-utility expense and other Depreciation and Amortization Conservation authorization Taxes other than income taxes Total operating expenses Operating income (less) Other income (expense): Other income expenses Other expense Interest charges: Equity allowance for funds used during construction Interest expense Income (loss) before income taxes Income tax (benefit) expense Net Income (less) -84278 310.707 19.472 374.361 55.961 187.147 1,522,611 406.865 36,379 303.042 28,803 301.681 47,714 174.297 1.455.075 242.734 28.120 3.860 30,635 -10.750 7,361 179,767 258,719 14.484 244,235 7,557 195,677 74,499 2,796 71,703