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BELLEVUE, WA., October 30, 2000 -(BUSINESS WIRE) - As energy utilities redefine themselves to prepare for changes occurring in the industry, Puget Sound Energy (NYSE:PSD) is following a consistent strategy--tobe the country's best electric and natural-gas distribution company.

That focus recently earned the company "Utility of the Month" recognition from a leading national trade magazine.

In an extensive interview with Puget Sound Energy President & CEO William S. Weaver, the September issue of Electric Light & Power magazine points to the company's high ranking with its regulated utility, providing high levels of customer service while keeping operating costs among the lowest in the country. At the same time, Puget is establishing an unregulated business with two new growth engines, ConneXt and InfrastruX Group.

"Puget Sound Energy's future looks bright," the article states. The magazine notes the company is proving itself a highly efficient utility, ranking as the country's third most efficient among investor-owned utilities that provide both gas and electric service. "PSE didn't sacrifice service quality to achieve this distinction," according to the EL&P article.

Weaver told the magazine that "the predicate to success in the distribution business is going to be providing the best service at the lowest cost, and those are two concepts that have often been regarded by utility managers as mutually exclusive." Puget Sound Energy's focus has been and remains on growing the distribution business, he said.

"We view our business as consisting of two fundamental parts: first, the assets that we own--pipes and wires--and then, second, bringing certain services to bear on those assets," Weaver said. "PSE is doing just that with its unregulated subsidiaries ConneXt and InfrastruX."

ConneXt, a subsidiary of PSE, is a developer of advanced billing systems and customer management data capabilities for energy utilities. Puget Sound Energy is using ConneXt's advanced ConsumerLinX customer information system for flexible rate and billing structures, personal energy management and load management, and customer access to Billing and energy usage information.

Puget created InfrastruX in June 2000 to perform design, maintenance and construction work for other utility and telecommunications companies. Since its formation, the wholly owned subsidiary has completed the acquisition of UTILX Corporation, a Kent, Wash.-based provider of infrastructure construction services to utilities and telecommunications providers. In September, InfrastruX completed the acquisition of Lineal Industries, a privately held pipeline infrastructure construction company based in Pittsburgh, Penn.

About Puget Sound Energy:
Puget Sound Energy, headquartered in Bellevue Wash., is an investor-owned utility delivering electric and natural gas service to more than 1.2 million homes and businesses primarily in the greater Puget Sound region of Washington state. www.pugetsoundenergy.com

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