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**UNITED STATES**
**SECURITIES AND EXCHANGE COMMISSION**
**Washington, D. C. 20549**
FORM 10-Q

**[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF**
**THE SECURITIES EXCHANGE ACT OF 1934**
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For the quarterly period ended June 30, 2001
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OR
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**[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF**
**THE SECURITIES EXCHANGE ACT OF 1934**
For theTransition period from ________ to _________

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                           Exact name of registrant as specified                 I.R.S.
                           in its charter, state of incorporation,             Employer
Commission                 address of principal executive offices,       Identification
File Number                Telephone                                             Number

1-16305                    PUGET ENERGY, INC.                                91-1969407
                           A Washington Corporation
                           411 - 108th Avenue N.E.
                           Bellevue, Washington 98004-5515
                           (425) 454-6363

1-4393                     PUGET SOUND ENERGY, INC.                          91-0374630
                           A Washington Corporation
                           411 - 108th Avenue N.E.
                           Bellevue, Washington 98004-5515
                           (425) 454-6363
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     Indicate   by  check   markwhether the registrant (1) has filed all reports required to be filed by Section13 or 15(d) of the  Securities  Exchange  Act of 1934  during the  preceding  12months (or for such shorter  period that the registrant was required to file forsuch reports), and (2) has been subject to such filing requirements for the past90 days.   Yes X    No ____

     As of June 30, 2001, (i)the number of shares of Puget Energy, Inc. (“Puget Energy”) commonstock outstanding was 86,437,947 ($.01 par value) and (ii) all of theoutstanding shares of Puget Sound Energy, Inc. (“PSE”) common stockwere held by Puget Energy. 

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                                                   Table of Contents
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Filing FormatPart I.   Financial InformationItem 1.   Financial Statements

          Puget Energy, Inc.
              Consolidated Statements of Income - 3 months ended June 30, 2001 and 2000Consolidated Statements of Income - 6 months ended June 30, 2001 and 2000 Consolidated Statements of Comprehensive Income - 3 months endedJune 30, 2001 and 2000Consolidated Statements of Comprehensive Income - 6 months endedJune 30, 2001 and 2000 Consolidated Balance Sheets - June 30, 2001 and December 31, 2000 Consolidated Statements of Cash Flows - 6 months endedJune 30, 2001 and 2000

          Puget Sound Energy, Inc.
              Consolidated Statements of Income - 3 months ended June 30, 2001 and 2000Consolidated Statements of Income - 6 months ended June 30, 2001 and 2000Consolidated Statements of Comprehensive Income - 3 months endedJune 30, 2001 and 2000 Consolidated Statements of Comprehensive Income - 6 months endedJune 30, 2001 and 2000Consolidated Balance Sheets - June 30, 2001 and December 31, 2000Consolidated Statements of Cash Flows - 6 months endedJune 30, 2001 and 2000 Notes to Consolidated Financial StatementsItem 2.   Management's Discussion and Analysis of Financial Conditionand Results of OperationsItem 3.   Quantitative and Qualitative Disclosure About Market RiskPart II.  Other InformationItem 1.   Legal ProceedingsItem 4.   Submission of Matters to a Vote of Security HoldersItem 6.   Exhibits and Reports on Form 8-KSignature
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