FORM 4
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

REYNOLDS STEPHEN P 		2. Issuer Name and Ticker or Trading Symbol

PUGET ENERGY INC /WA [ PSD ] 		5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

__ X __ Director                      _____ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
Chairman, President and CEO
(Last)          (First)          (Middle)

10885 NE 4TH STREET, PSE-12 		3. Date of Earliest Transaction (MM/DD/YYYY)

1/6/2009
(Street)

BELLEVUE, WA 98004-5591
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 		2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8) 		4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common   1/6/2009     M    5622   A $27.295   147453   I   By Brokerage Account  
Common   1/6/2009     F    1406   D $27.295   146047   I   By Brokerage Account  
Common                  40107   D    
Common                  950   I   By spouse through brokerage account  

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 		2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8) 		5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4) 		8. Price of Derivative Security
(Instr. 5) 		9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
PSE Deferred Compensation Plan   $0   (1) 1/6/2009     M        5622   (2)     (3)   (3) Common   5622   $27.295   71317   D    
LTIP     (4)                 12/31/2008   12/31/2008   Common   50282     50282   D    
LTIP     (4)                 12/31/2009   12/31/2009   Common   45355     45355   D    
LTIP     (5)                 12/31/2010   12/31/2010   Common   35163     35163   D    
LTIP - Stock Options   (6) $22.51                   1/7/2003   1/7/2012   Common   40000     40000   D    
Stock Options - A   (7) $22.51                   1/7/2003   1/7/2012   Common   110000     110000   D    
Stock Options - B   (8) $22.51                   1/7/2003   1/7/2012   Common   150000     150000   D    

Explanation of Responses:
( 1)  One common share will be received for each stock unit.
( 2)  Distribution of 5,622 phantom share units in Puget Energy common stock per prior distribution election, with 1, 406 shares surrendered to pay taxes due.
( 3)  Phantom share units deferred in the Puget Sound Energy Deferred Compensation Plan.
( 4)  Performance shares grants under the Puget Energy Long Term Incentive Plan (LTIP) for Officers and Key Employees. LTIP performance shares are paid in stock (or cash) when vested from zero to 175% of LTIP performance shares granted.
( 5)  LTIP share grants under the Puget Energy Long-Term Incentive Plan for Officers and Key Employees. LTIP Shares are paid in stock (or up to 50% in cash) when vested in an amount ranging from zero to 155.5% of LTIP Share Grants.
( 6)  Non-qualified stock option grant to purchase 40,000 shares of common stock with a term of ten years, under the Puget Energy Long-Term Incentive Plan for Officers and Key Employees. Share grants vest over a period of four years from January 1, 2002 at twenty-five percent per year.
( 7)  Nonqualified stock option grant to purchase 110,000 shares of common stock with a term of ten years. Share grants vest over a period of four years from January 1, 2002 at twenty-five percent per year.
( 8)  Nonqualified stock option grant to purchase 150,000 shares of common stock with a term of ten years. Share grants vest over a period of five years from January 1, 2002 at twenty percent per year.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
REYNOLDS STEPHEN P
10885 NE 4TH STREET, PSE-12
BELLEVUE, WA 98004-5591 		X
Chairman, President and CEO

Signatures
/s/ Samuel S. Osborne, Attorney-in-Fact 1/7/2009
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
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