Summary of Director Compensation


    


    


     

    Exhibit
      10.51

     

    PUGET
      ENERGY, INC. & PUGET SOUND ENERGY, INC.

     

    DIRECTOR
      COMPENSATION EFFECTIVE MARCH 1, 2007

    


    The
      following table provides information on the compensation of Puget Energy, Inc.
      and Puget Sound Energy, Inc (the "Company") nonemployee directors. The Company
      also reimburses nonemployee directors for the out-of-pocket expenses of
      attending meetings. Directors who are employed by the Company do not receive
      any
      compensation for their Board activities.

    


    
      	
              DIRECTOR
                COMPENSATION 

            
	
              Quarterly
                Lead Independent Director Retainer

            	
              $ 
                 3,750

            
	
              Quarterly
                Board Member Retainer(a)

            	
              20,000

            
	
              Additional
                Quarterly Retainer for Audit Committee Chair

            	
              2,500

            
	
              Additional
                Quarterly Retainer for Audit Committee Members

            	
              1,000

            
	
              Additional
                quarterly retainer for Compensation and Leadership Development Committee
                Chair

            	
              2,000

            
	
              Additional
                Quarterly Retainer for Governance and Public Affairs Committee Chair
                

            	
              1,500

            
	
              Fee
                for Each Board and Board Committee Meeting Attended

            	
              1,600

            
	
              Fee
                for Each Telephonic Meeting Attended Lasting 60 Minutes or Less
                

            	
              800

            


    

     

    
      	(a)  	
              100%
                of the quarterly retainer fees are to be paid in the form of Puget
                Energy
                shares until a director owns a number of Puget Energy shares equal
                in
                value to two years of retainer fees. After meeting this ownership
                requirement, under the terms of the Non-Employee Director Plan as
                currently in effect, a portion of the quarterly retainer payable
                to a
                director for a fiscal quarter is payable in a number of shares of
                Puget
                Energy stock determined by dividing two-thirds of the quarterly retainer
                payable by the fair market value of Puget Energy’s common stock on the
                last business day of that fiscal
                quarter.

            


    

     

    A
      non-employee director may elect to receive up to 100% of the quarterly retainer
      in Puget Energy shares and may elect to defer the issuance of shares as
      compensation under the Non-employee Director Plan in accordance with the terms
      of the plan.

    


    In
      addition to the compensation listed in the table above, the Company's
      nonemployee directors are eligible to participate in Puget Sound Energy’s
      Deferred Compensation Plan for Nonemployee Directors. Directors annually may
      elect to defer all or a part of their fees payable in cash. Deferred
      compensation may be allocated in one or more "measurement funds" (which
      currently includes an interest crediting fund, an equity index fund, a bond
      index fund and a Puget Energy common stock fund). Changes in "measurement funds"
      allocations are allowed quarterly.