Washington Gas Light (WGLCP) 8-K WGL Holdings, Inc. Reports First Quarter Results for Fiscal Year 2004 and Raises Annual Guidance

Exhibit 99.1

	FOR IMMEDIATE RELEASE	CONTACTS:
	January 28, 2004
		News Media
		Timothy Sargeant	(202) 624-6043 (Office)
			(202) 825-7051 (Pager)
		Financial Community
		Melissa E. Adams	(202) 624-6410 (Office)

WGL HOLDINGS, INC. REPORTS FIRST QUARTER RESULTS
FOR FISCAL YEAR 2004 AND RAISES ANNUAL GUIDANCE

     WGL Holdings, Inc. (NYSE: WGL) (the Company), the parent company of Washington Gas Light Company and other energy-related subsidiaries, today reported net income of $39.5 million, or $0.81 per share, for the three months ended December 31, 2003, the first quarter of its fiscal year 2004. This compares to net income of $51.6 million, or $1.06 per share, for the same quarter of fiscal year 2003. The Company also raised its annual guidance for fiscal year 2004 to a range of $1.72 to $1.82 per share based on results to date and assumptions that no unusual matters will emerge for the balance of the fiscal year. Unless otherwise noted, earnings per share amounts are presented in this news release on a diluted basis, and are based on weighted average common and common equivalent shares outstanding.

     The Company’s utility operations are weather sensitive, with a significant portion of its revenue coming from deliveries of natural gas to residential and commercial heating customers. Weather for the first fiscal quarter ended December 31, 2003 was two percent colder than normal, compared to 21 percent colder-than-normal weather for the same quarter last fiscal year. This was the primary difference in the overall earnings levels between the current and prior year’s first quarter, coupled with additional depreciation expense recorded in the current quarter of $3.5 million (pre-tax), or $0.04 per share, applicable to the period from January 1, 2002 through November 12, 2002 in connection with a December 18, 2003 Virginia rate order. Favorably contributing to earnings for the first three months of fiscal year 2004 was a 2.3 percent increase in active customers. The Company’s non-utility retail energy-marketing

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business reported excellent results for the first quarter of 2004, contributing $0.10 per share which represents a $0.01 per share improvement over the same quarter last year.

     Commenting on first quarter results, WGL Holdings’ Chairman and CEO James H. DeGraffenreidt, Jr. said, “I am very pleased with our first quarter results. We are realizing the benefits of achieving the objectives we are striving to accomplish. Our regulated utility continued to benefit from a combination of efficiencies from process improvements, customer growth and rate relief. This reflects our commitment to timely, compensatory rates that support safe and reliable service for customers, and also provides a platform for stable earnings growth.” DeGraffenreidt added, “Results from our retail energy-marketing business demonstrated enhanced performance as we generated increased gross margins from sales of both natural gas and electricity.”

Three Months Ended December 31, 2003

     Regulated Utility Operations

     The regulated utility segment’s net income was $34.7 million, or $0.71 per share, for the first three months of fiscal year 2004, compared to net income of $46.9 million, or $0.96 per share, for the same quarter of the prior fiscal year. The change in net income primarily reflects a decrease in total gas deliveries to firm customers that fell 44 million therms, or ten percent, to 402 million therms delivered during the current quarter. Weather, when measured by heating degree days, was 16 percent warmer in the current quarter than in the same period last year. Weather for the prior year’s first quarter was 21 percent colder than normal, enhancing earnings per share by $0.17. Weather was only two percent colder than normal for the first quarter of fiscal year 2004 and this had a negligible effect on net income.

     Active customer meters increased by over 22,300 for the current quarter as compared to the same quarter of the prior year. Furthermore, the Company has received five changes in its base rates in the past year. There was virtually no effect on earnings in the current quarter of fiscal year 2004 from these rate changes when making comparisons to the same quarter of the prior fiscal year. However, these rate changes will have a favorable effect on earnings comparisons in subsequent quarters.

     The State Corporation Commission of Virginia (SCC of VA) issued a final order on December 18, 2003 granting a $9.9 million increase in annual revenues in Virginia, which closely approximated the amount that the Company had estimated would be derived from this

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case. The Virginia rates were being billed to customers subject to refund pending a final rate order by the SCC of VA. No significant adjustment is expected to be recorded in the Company’s Statements of Income in the second quarter of fiscal year 2004, the period when rate refunds to customers will be made.

     Earnings for the regulated utility segment also reflect higher depreciation and amortization expense primarily as a result of the December 18, 2003 final order of the SCC of VA that required higher depreciation rates to be implemented effective January 1, 2002. In connection with this order, the Company recorded in the quarter ended December 31, 2003, additional depreciation expense of $3.5 million (pre-tax), or $0.04 per share, applicable to the period from January 1, 2002 through November 12, 2002. The regulated utility’s operations and maintenance expenses remained relatively constant during the current quarter when compared to the corresponding quarter of the prior fiscal year, primarily reflecting higher labor and benefit costs that were fully offset by lower expenses associated with uncollectible accounts. Additionally, the inclusion of an adjustment to income taxes in the first quarter of fiscal year 2003 contributed $2.7 million, or $0.06 per share, to the unfavorable earnings comparison for the first quarter of fiscal year 2004.

     Non-Utility Operations
     Net income for the Company’s non-utility operations was $4.9 million, or $0.10 per share, for the three months ended December 31, 2003, a slight improvement of $153,000 over the same quarter of the prior year. The retail energy-marketing segment reported net income of $4.8 million, or $0.10 per share, for the current three-month period, an improvement of $509,000, or $0.01 per share, over the corresponding quarter of the prior year. This improvement reflects higher gross margins from the sale of both natural gas and electricity.

     The Company’s commercial heating, ventilating and air conditioning (HVAC) business reported a net loss of $498,000, or $0.01 per share, for the first quarter of fiscal year 2004, as compared to a net loss of $385,000, or $0.01 per share, for the same quarter of the prior year. Additionally, earnings comparisons for the Company’s non-utility operations were unfavorably affected by the inclusion in the first quarter of the prior fiscal year of an after-tax gain of $926,000, or $0.02 per share, from the Company’s sale of its interest in a land development venture.

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Earnings Outlook

     DeGraffenreidt said, “Looking to the future, we are providing guidance for the second quarter of fiscal year 2004 to be in the range of $1.45 to $1.55 per share. This guidance includes the effect of actual weather through January 26, 2004 and an expectation of normal weather thereafter.” DeGraffenreidt added, “Our current estimate for the full fiscal year 2004 is projected to be in the range of $1.72 to $1.82 per share. This estimate also includes projected full fiscal year 2004 earnings for our unregulated businesses to be in the range of $0.02 to $0.04 per share. These estimates do not reflect:(i)the effect of a request to increase base rates by $19.6 million that was filed in Virginia on January 26, 2004;(ii)any adverse effect associated with the bankruptcy of Mirant Corporation and its subsidiaries on our energy-marketing operations; or(iii)the effect of any other unusual matters.”

Other Information

The Company will hold a conference call at 10:30 a.m. Eastern time on January 29, 2004, to discuss its first quarter financial results. The live conference call will be available to the public via a link located on the WGL Holdings Web site,www.wglholdings.com. To hear the live broadcast, click on the Live Webcast icon located on the home page of the referenced site. The Webcast will be archived for replay on the WGL Holdings Web site through February 29, 2004.

     Headquartered in Washington, D.C., WGL Holdings is the parent company of Washington Gas Light Company, a natural gas utility that serves approximately 980,000 customers throughout metropolitan Washington, D.C., and the surrounding region. In addition, it holds a group of energy-related retail businesses that focus primarily on retail energy-marketing and commercial heating, ventilating and air conditioning services.

     Additional information about WGL Holdings is available on its Web site, www.wglholdings.com.

Note: This news release and other statements by the Company may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings, revenues and other future financial business performance or strategies and expectations. Forward-looking statements are typically identified by words such as, but not limited to, “estimates,” “expects,” “anticipates,” “intends,” “believes,” “plans,” and similar

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expressions, or future or conditional verbs such as “will,” “should,” “would,” and “could.” Although the Company believes such forward-looking statements are based on reasonable assumptions, it cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and the Company assumes no duty to update them.

     As previously disclosed in the Company’s filings with the Securities and Exchange Commission, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:variations in weather conditions from normal levels; changes in economic, competitive, political and regulatory conditions and developments; changes in capital and energy commodity market conditions; changes in credit market conditions and creditworthiness of customers and suppliers; changes in relevant laws and regulations, including tax, environmental and employment laws and regulations; legislative, regulatory and judicial mandates and decisions; timing and success of business and product development efforts; technological improvements; the pace of deregulation efforts and the availability of other competitive alternatives; terrorist activities; and other uncertainties. For a further discussion of the risks and uncertainties, see the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

(Please see the following comparative statements for additional information.)

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WGL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

					Three Months Ended						Twelve Months Ended
					December 31,						December 31,
(Thousands, except per share data)					2003			2002			2003			2002
UTILITY OPERATIONS
	Operating Revenues				$	375,314		$	374,993		$	1,301,378		$	1,033,468
		Less: Cost of gas				198,778			192,536			702,803			525,152
				Revenue taxes		13,769			9,786			44,448			29,470
				Utility Net Revenues		162,767			172,671			554,127			478,846
	Other Operating Expenses
		Operation and maintenance				55,208			55,133			216,330			213,215
		Depreciation and amortization				25,205			19,615			89,139			74,884
		General taxes				9,871			9,608			38,104			36,633
		Income tax expense				24,758			27,900			65,491			37,246
				Utility Other Operating Expenses		115,042			112,256			409,064			361,978
				Utility Operating Income		47,725			60,415			145,063			116,868
NON-UTILITY OPERATIONS
	Operating Revenues
				Retail energy-marketing		202,258			173,941			754,548			640,695
				Heating, ventilating and air conditioning (HVAC)		7,534			10,590			32,465			51,721
				Other non-utility activities		183			498			1,124			1,844
	Operating Expenses
				Non-utility operating expenses		(202,792	)		(179,115	)		(785,217	)		(686,291	)
				Equity loss in 50%-owned residential HVAC investment		—			—			—			(4,695	)
				Residential HVAC impairment		—			—			—			(9,431	)
				Income tax (expense) benefit		(2,524	)		(3,192	)		500			(3,880	)
				Non-Utility Operating Income (Loss)		4,659			2,722			3,420			(10,037	)
Total Operating Income						52,384			63,137			148,483			106,831
Other Income — Net						(920	)		714			(827	)		859
INCOME BEFORE INTEREST EXPENSE						51,464			63,851			147,656			107,690
Interest expense						11,591			11,899			46,073			45,866
Dividends on Washington Gas preferred stock						330			330			1,320			1,320
NET INCOME					$	39,543		$	51,622		$	100,263		$	60,504
AVERAGE COMMON SHARES OUTSTANDING
				Basic		48,624			48,575			48,599			48,568
				Diluted		48,812			48,714			48,780			48,681
EARNINGS PER AVERAGE COMMON SHARE
				Basic	$	0.81		$	1.06		$	2.06		$	1.25
				Diluted	$	0.81		$	1.06		$	2.06		$	1.24
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK —BY SEGMENT ($000):
		Regulated utility			$	34,679		$	46,911		$	96,804		$	69,338
		Non-utility operations:
				Retail energy-marketing		4,810			4,301			4,254			8,338
				HVAC:
				Commercial		(498	)		(385	)		(1,297	)		2,744
				Residential — operating loss		—			—			—			(2,732	)
				Residential — impairment		—			—			—			(9,431	)
				Total major non-utility		4,312			3,916			2,957			(1,081	)
			Other, principally non-utility activities			552			795			502			(7,753	)
				Total non-utility		4,864			4,711			3,459			(8,834	)
NET INCOME					$	39,543		$	51,622		$	100,263		$	60,504

WGL HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

			December 31,
(Thousands)			2003			2002
ASSETS
Property, Plant and Equipment
	At original cost		$	2,583,543		$	2,487,921
	Accumulated depreciation and amortization			(707,263	)		(873,459	)
				1,876,280			1,614,462
Current Assets
	Cash and cash equivalents			9,252			5,533
	Accounts receivable, net			390,312			357,970
	Storage gas—at cost (first-in, first-out)			144,595			91,665
	Other			46,887			57,642
				591,046			512,810
Deferred Charges and Other Assets				192,626			186,252
		Total Assets	$	2,659,952		$	2,313,524
CAPITALIZATION AND LIABILITIES
Capitalization
	Washington Gas Light Company preferred stock		$	28,173		$	28,173
	Common shareholders’ equity			842,740			802,008
	Long-term debt			637,610			623,158
				1,508,523			1,453,339
Current Liabilities
	Notes payable and current maturities of long-term debt			198,444			202,104
	Accounts payable			218,054			194,623
	Other			135,343			132,743
				551,841			529,470
Deferred Credits				599,588			330,715
		Total Capitalization and Liabilities	$	2,659,952		$	2,313,524

WGL HOLDINGS, INC.
CONSOLIDATED FINANCIAL AND OPERATING STATISTICS
(Unaudited)

COMMON STOCK DATA	December 31, 2003 Closing Price	52 Week Price Range
	$27.79	$28.79-$23.15

	Earnings Per Share
	Twelve Months Ended December 31,
						Annualized
	2003	2002		P/E		Dividend		Yield
Basic	$2.06	$	1.25		13.5	$	1.28		4.6	%
Diluted	$2.06	$	1.24

FINANCIAL STATISTICS
	Twelve Months Ended
	December 31,			December 31,
	2003			2002
Return on Average Common Equity		12.2	%		7.5	%
Total Interest Coverage(times)		4.6			3.2
Book Value Per Share(end of period)	$	17.33		$	16.51
Common Shares Outstanding—end of period(thousands)		48,634			48,578
UTILITY GAS STATISTICS

				Three Months Ended				Twelve Months Ended
				December 31,				December 31,
				2003		2002		2003		2002
Operating Revenues(thousands )
	Gas Sold and Delivered
		Residential — Firm		$	237,677	$	216,386	$	758,555	$	583,829
		Commercial and Industrial — Firm			72,776		66,203		246,480		180,769
		Commercial and Industrial — Interruptible			2,793		3,439		9,680		8,101
		Electric Generation			142		275		967		1,083
					313,388		286,303		1,015,682		773,782
	Gas Delivered for Others
		Firm			45,369		50,266		157,074		127,680
		Interruptible			10,339		9,492		31,594		31,620
		Electric Generation			79		149		342		766
					55,787		59,907		189,010		160,066
					369,175		346,210		1,204,692		933,848
		Other			6,139		28,783		96,686		99,620
			Total	$	375,314	$	374,993	$	1,301,378	$	1,033,468

					Three Months Ended						Twelve Months Ended
					December 31,						December 31,
					2003			2002			2003			2002
		Gas Sales and Deliveries(thousands of therms)
			Gas Sold and Delivered
				Residential — Firm		197,387			215,490			630,706			574,240
				Commercial and Industrial — Firm		69,256			75,184			233,700			211,218
				Commercial and Industrial — Interruptible		3,022			4,487			10,698			11,616
						269,665			295,161			875,104			797,074
			Gas Delivered for Others
				Firm*		135,424			155,815			476,498			393,516
				Interruptible		81,894			83,024			256,669			282,556
				Electric Generation		10,568			22,423			55,390			169,364
						227,886			261,262			788,557			845,436
				Total		497,551			556,423			1,663,661			1,642,510
WASHINGTON GAS ENERGY SERVICES
		Natural Gas Sales
			Therm Sales(thousands of therms)			207,770			207,898			710,765			647,624
			Number of Customers(end of period)			155,500			157,900			155,500			157,900
		Electricity Sales
			Electricity Sales(thousands of kWhs)			1,714,115			1,922,875			7,339,594			7,281,623
			Number of Accounts(end of period)			61,000			69,000			61,000			69,000
UTILITY GAS PURCHASED EXPENSE
	(excluding off system)					71.66	¢		57.01	¢		72.94	¢		55.76	¢
HEATING DEGREE DAYS
		Actual				1,388			1,643			4,295			3,840
		Normal				1,362			1,358			3,803			3,802
		Percent Colder (Warmer) than Normal				1.9	%		21.0	%		12.9	%		1.0	%
		Number of Active Customer Meters(end of period)				978,353			956,009			978,353			956,009

* Excludes wholesale therm deliveries to an unaffiliated company.