Washington Gas Light (WGLCP) 8-K WGL Holdings, Inc., Reports Significant Increase in Second Quarter

Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACTS:
April 30, 2008
	News Media
	Eric Grant (202) 624-6091
	Financial Community
	Melissa E. Adams (202) 624-6410

WGL Holdings, Inc., Reports Significant Increase in Second Quarter

Fiscal Year 2008 Earnings and Raises Earnings Guidance

• Consolidated GAAP earnings up 26% — $1.63 per share vs. $1.29 per share for the comparative quarter reflecting improved regulated and non-regulated results

• Consolidated non-GAAP operating earnings up 32%— $1.66 per share vs. $1.26 per share for the comparative quarter

• Increased fiscal year 2008 non-GAAP operating earnings guidance range — $2.38 to $2.48 per share

• Results reinforce 5-year average earnings per share growth target of 6-8% per year

Consolidated Results

WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported net income determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) for the quarter ended March 31, 2008, of $81.0 million, or $1.63 per share, an increase of $17.6 million, or $0.34 per share, over net income of $63.4 million, or $1.29 per share, reported for the second quarter of fiscal year 2007.

“This second consecutive fiscal quarter of sharply improved results further demonstrates our progress in achieving our strategic objectives and reinforces our outlook for an excellent year,” said James H. DeGraffenreidt, Jr., chairman and chief executive officer of WGL Holdings. “A supportive regulatory framework that rewards shareholders and customers, the expansion of our asset optimization program, customer growth and strong unregulated margins will continue to drive fiscal year 2008 and long-term earnings growth.”

1

For the first six months of fiscal year 2008, we reported net income determined in accordance with GAAP of $128.2 million, or $2.58 per share, an increase of $19.7 million, or 0.37 per share, over net income of $108.5 million, or $2.21 per share, reported for the comparative period of fiscal year 2007. Our operations are seasonal and, accordingly, our operating results for the three and six months ended March 31, 2008, are not indicative of the results expected for the twelve months ending September 30, 2008.

Financial performance is evaluated based on non-GAAP operating earnings (loss). Non-GAAP operating earnings (loss) excludes the effects of:(i)warmer-than-normal/colder-than-normal weather for our regulated utility segment;(ii)certain unusual transactions and(iii)unrealized mark-to-market gains (losses) on energy-related derivatives. Refer to “Use of Non-GAAP Operating Earnings (Loss)” and supporting reconciliations attached to this news release for a detailed discussion of management’s use of this non-GAAP financial measure, as well as reconciliations of net income determined in accordance with GAAP to non-GAAP operating earnings (loss) for both our consolidated and segment results.

For the second quarter of fiscal year 2008, our non-GAAP operating earnings were $1.66 per share, an increase of $0.40 per share over non-GAAP operating earnings of $1.26 per share for the same quarter of the prior fiscal year. For the six months ended March 31, 2008, our non-GAAP operating earnings were $2.61 per share, an increase of $0.45 per share over non-GAAP operating earnings of $2.16 per share for the same period of the prior fiscal year.

Second Quarter and Year-to-Date Results by Business Segment

Regulated Utility Segment

Our regulated utility segment reported net income determined in accordance with GAAP of $78.0 million, or $1.57 per share, for the second quarter of fiscal year 2008, an increase of $12.4 million, or $0.24 per share, over net income of $65.6 million, or $1.33 per share for the same quarter of the preceding fiscal year. For the six months ended March 31, 2008, our regulated utility segment reported net income determined in accordance with GAAP of $122.2 million, or $2.46 per share, an increase of $13.6 million, or $0.25 per share, over net income of $108.6 million, or $2.21 per share, reported for the same period of the prior fiscal year.

For the second quarter of fiscal year 2008, non-GAAP operating earnings for the regulated utility segment were $1.59 per share, an increase of $0.26 per share, over non-GAAP operating earnings of $1.33 for the same period of the prior fiscal year. Non-GAAP operating earnings for the regulated utility segment were $2.47 per share for the first six months of fiscal year 2008, a $0.31 per share increase over non-GAAP operating earnings of $2.16 per share for the same period last year.

2

For both the three and six months comparisons, the increase in non-GAAP operating earnings is primarily due to:(i)the implementation of new rates in Virginia on February 13, 2007, in Maryland on November 27, 2007, and in the District of Columbia on December 31, 2007;(ii)an increase in realized margins from our asset optimization program;(iii)the favorable effects of changes in natural gas consumption patterns due to shifts in weather patterns and other factors and(iv)the addition of over 8,700 active customer meters since March 31, 2008. The increase in non-GAAP operating earnings for both periods in fiscal year 2008 is partially offset by the effect of our Earnings Sharing Mechanism in Virginia. The six month comparison also includes partial offsets related to higher uncollectible accounts expense primarily due to an adjustment to the accumulated reserve made in the prior period as well as higher property taxes in Virginia in the current period.

Retail Energy-Marketing Segment

The retail energy-marketing segment reported net income determined in accordance with GAAP of $3.6 million, or $0.07 per share, for the quarter ended March 31, 2008, an increase of $5.2 million, or $0.10 per share, over a net loss of $(1.6) million, or $(0.03) per share, reported for the same quarter of fiscal year 2007. For the first six months of fiscal year 2008, the retail energy marketing segment reported net income determined in accordance with GAAP of $6.8 million, or $0.14 per share, an increase of $5.7 million, or $0.12 per share, over net income of $1.1 million, or $0.02 per share, reported for the first six months of fiscal year 2007.

Non-GAAP operating earnings for the retail energy-marketing segment were $0.07 per share for the second quarter ended March 31, 2008, a $0.12 per share improvement over a non-GAAP operating loss of $(0.05) per share for the same quarter of the prior fiscal year. For the first six months of fiscal year 2008, non-GAAP operating earnings were $0.16 per share, a $0.13 per share improvement over non-GAAP operating earnings of $0.03 per share for the same period of the prior year. Both the quarter and year-to-date improvements in non-GAAP operating earnings reflect higher margins per therm sold for natural gas, partially offset by lower margins from electric sales.

Earnings Outlook

We are updating our GAAP earnings estimate for the full fiscal year 2008 to a range of $2.34 to $2.44 per share. This estimate includes projected full fiscal year 2008 earnings from our regulated utility segment in a range of $2.07 per share to $2.13 per share and projected full fiscal year 2008 earnings from our unregulated business segments in a range of $0.27 per share to $0.31 per share.

3

We are also raising our consolidated earnings estimate for the full fiscal year 2008 based on non-GAAP operating earnings to a range of $2.38 per share to $2.48 per share. This estimate includes projected full fiscal year 2008 non-GAAP operating earnings from our regulated utility segment in a range of $2.07 per share to $2.13 per share, and projected full fiscal year 2008 non-GAAP operating earnings from our unregulated business segments in a range of $0.31 per share to $0.35 per share. Refer to the “Reconciliation of GAAP Earnings Guidance to Non-GAAP Earnings Guidance” attached to this press release for a reconciliation of our GAAP earnings per share estimate to our estimate based on non-GAAP operating earnings per share.

We assume no obligation to update this guidance. The absence of any statement by us in the future should not be presumed to represent an affirmation of this earnings guidance. For the assumptions underlying this guidance, please refer to the slides accompanying our Webcast that will be posted to the WGL Holdings Web site,www.wglholdings.com.

Other Information

We will hold a conference call at 10:30 a.m. Eastern time on May 1, 2008, to discuss our second 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 Webcast, click on the “Webcast” link located on the home page of the referenced site. The Webcast and related slides will be archived on the WGL Holdings Web site through June 1, 2008.

Headquartered in Washington, D.C., WGL Holdings has three operating segments:(i)the regulated utility segment which primarily consists of Washington Gas, a natural gas utility that serves over one million customers throughout metropolitan Washington, D.C., and the surrounding region;(ii) the retail-energy marketing segment which consists of Washington Gas Energy Services, Inc., a third-party marketer that competitively sells natural gas and electricity and(iii)the heating, ventilating and air conditioning (HVAC) segment, which consists of Washington Gas Energy Systems, Inc., a provider of design-build energy efficiency solutions to government and commercial clients. Additional information about WGL Holdings is available on our Web site.

Unless otherwise noted, earnings per share amounts are presented on a diluted basis, and are based on weighted average common and common equivalent shares outstanding.

Please see the attached comparative statements for additional information on our operating results. Also attached to this news release are reconciliations of net income determined in accordance with GAAP to non-GAAP operating earnings (loss) for both our consolidated and segment results as well as reconciliations of our GAAP earnings guidance to our non-GAAP earnings guidance.

4

Forward-Looking Statements

This news release and other statements by us include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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 expressions, or future or conditional verbs such as “will,” “should,” “would,” and “could.” Although we believe such forward-looking statements are based on reasonable assumptions, we cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and we assume no duty to update them. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, general economic conditions and the factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission.

5

WGL Holdings, Inc.
Consolidated Statements of Income
For Periods Ended March 31, 2008 and 2007
(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands, except per share data)	2008			2007			2008			2007
OPERATING REVENUES
Utility	$	671,391		$	699,058		$	1,133,341		$	1,130,079
Non-utility		348,646			420,845			638,322			722,786
Total Operating Revenues		1,020,037			1,119,903			1,771,663			1,852,865
OPERATING EXPENSES
Utility cost of gas		410,778			450,201			676,579			698,877
Non-utility cost of energy-related sales		333,936			415,004			609,479			704,847
Operation and maintenance		70,836			77,373			139,685			139,978
Depreciation and amortization		23,345			24,575			47,600			43,215
General taxes and other assessments		36,133			36,834			63,376			62,280
Total Operating Expenses		875,028			1,003,987			1,536,719			1,649,197
OPERATING INCOME		145,009			115,916			234,944			203,668
Other Income (Expenses)—Net		560			717			1,148			545
Interest Expense
Interest on long-term debt		9,976			10,042			19,956			20,050
Other — net		1,977			2,579			4,734			5,783
Total Interest Expense		11,953			12,621			24,690			25,833
Dividends on Washington Gas preferred stock		330			330			660			660
INCOME BEFORE INCOME TAXES		133,286			103,682			210,742			177,720
INCOME TAX EXPENSE		52,248			40,307			82,507			69,247
NET INCOME APPLICABLE TO COMMON STOCK	$	81,038		$	63,375		$	128,235		$	108,473
AVERAGE COMMON SHARES OUTSTANDING
Basic		49,462			49,163			49,437			49,066
Diluted		49,781			49,267			49,711			49,190
EARNINGS PER AVERAGE COMMON SHARE
Basic		1.64			1.29			2.59			2.21
Diluted		1.63			1.29			2.58			2.21
Net Income (Loss) Applicable To Common Stock—By Segment ($000):
Regulated utility	$	77,972		$	65,625		$	122,174		$	108,620
Non-utility operations:
Retail energy-marketing		3,556			(1,589	)		6,837			1,087
HVAC		251			41			524			138
Total major non-utility		3,807			(1,548	)		7,361			1,225
Other activities		(741	)		(702	)		(1,300	)		(1,372	)
Total non-utility		3,066			(2,250	)		6,061			(147	)
NET INCOME APPLICABLE TO COMMON STOCK	$	81,038		$	63,375		$	128,235		$	108,473

WGL Holdings, Inc.
Consolidated Balance Sheets
March 31, 2008
(Unaudited)

	March 31,			September 30,
(In thousands)	2008			2007
ASSETS
Property, Plant and Equipment
At original cost	$	3,109,430		$	3,072,935
Accumulated depreciation and amortization		(940,704	)		(922,494	)
Net property, plant and equipment		2,168,726			2,150,441
Current Assets
Cash and cash equivalents		18,495			4,870
Accounts receivable, net		553,922			192,021
Storage gas—at cost (first-in, first-out)		84,646			294,889
Other		64,848			81,945
Total current assets		721,911			573,725
Deferred Charges and Other Assets		334,136			322,195
Total Assets	$	3,224,773		$	3,046,361
CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders’ equity	$	1,078,372		$	980,767
Washington Gas Light Company preferred stock		28,173			28,173
Long-term debt		597,432			616,419
Total capitalization		1,703,977			1,625,359
Current Liabilities
Notes payable and current maturities of long-term debt		144,963			205,341
Accounts payable and other accrued liabilities		291,446			216,861
Other		192,576			134,854
Total current liabilities		628,985			557,056
Deferred Credits		891,811			863,946
Total Capitalization and Liabilities	$	3,224,773		$	3,046,361

WGL Holdings, Inc.
Consolidated Financial and Operating Statistics
For Periods Ended March 31, 2008 and 2007
(Unaudited)

FINANCIAL STATISTICS
	Twelve Months Ended
	March 31,
	2008			2007
Closing Market Price—end of period	$	32.06		$	31.98
52-Week Market Price Range	$	35.91-$29.79		$	33.55-$27.04
Price Earnings Ratio		12.4			16.5
Annualized Dividends Per Share	$	1.42		$	1.37
Dividend Yield		4.4	%		4.3	%
Return on Average Common Equity		12.2	%		9.6	%
Total Interest Coverage(times)(1)		5.3			4.3
Book Value Per Share—end of period	$	21.80		$	20.49
Common Shares Outstanding—end of period(thousands)		49,467			49,191

⁽¹⁾ Calculated using income from continuing operations.

UTILITY GAS STATISTICS
	Three Months Ended						Six Months Ended						Twelve Months Ended
	March 31,						March 31,						March 31,
(In thousands)	2008			2007			2008			2007			2008			2007
Operating Revenues
Gas Sold and Delivered
Residential — Firm	$	468,251		$	490,098		$	772,651		$	771,584		$	988,476		$	946,124
Commercial and Industrial — Firm		121,813			131,384			209,482			211,604			276,827			270,691
Commercial and Industrial — Interruptible		2,860			1,859			5,158			4,107			7,669			7,356
Electric Generation		275			275			542			550			1,100			1,099
		593,199			623,616			987,833			987,845			1,274,072			1,225,270
Gas Delivered for Others
Firm		56,028			53,515			96,423			97,580			138,518			137,470
Interruptible		15,982			17,811			28,821			31,101			47,244			47,325
Electric Generation		72			75			162			132			323			271
		72,082			71,401			125,406			128,813			186,085			185,066
		665,281			695,017			1,113,239			1,116,658			1,460,157			1,410,336
Other		6,110			4,041			20,102			13,421			40,379			35,260
Total	$	671,391		$	699,058		$	1,133,341		$	1,130,079		$	1,500,536		$	1,445,596
	Three Months Ended						Six Months Ended						Twelve Months Ended
	March 31,						March 31,						March 31,
(In thousands of therms)	2008			2007			2008			2007			2008			2007
Gas Sales and Deliveries
Gas Sold and Delivered
Residential — Firm		314,357			337,446			513,339			520,230			641,810			621,865
Commercial and Industrial — Firm		86,634			94,881			149,267			152,610			200,619			199,767
Commercial and Industrial — Interruptible		2,212			1,334			4,059			3,202			6,132			6,117
		403,203			433,661			666,665			676,042			848,561			827,749
Gas Delivered for Others
Firm		184,707			192,046			318,815			316,139			436,096			420,917
Interruptible		86,323			90,601			160,664			167,394			260,575			260,245
Electric Generation		14,761			17,002			35,030			27,113			119,867			109,569
		285,791			299,649			514,509			510,646			816,538			790,731
Total		688,994			733,310			1,181,174			1,186,688			1,665,099			1,618,480
WASHINGTON GAS ENERGY SERVICES
Natural Gas Sales
Therm Sales(thousands of therms)		254,375			316,035			450,849			520,647			655,667			716,553
Number of Customers(end of period)		140,700			140,700			140,700			140,700			140,700			140,700
Electricity Sales
Electricity Sales(thousands of kWhs)		871,604			1,007,252			1,771,073			1,906,981			3,807,936			3,400,483
Number of Accounts(end of period)		68,300			69,600			68,300			69,600			68,300			69,600
UTILITY GAS PURCHASED EXPENSE (excluding off system)		103.03	¢		104.54	¢		102.19	¢		104.40	¢		101.30	¢		101.29	¢
HEATING DEGREE DAYS
Actual		1,944			2,231			3,185			3,539			3,601			3,816
Normal		2,115			2,127			3,471			3,491			3,795			3,813
Percent Colder (Warmer) than Normal		(8.1	)%		4.9	%		(8.2	)%		1.4	%		(5.1	)%		0.1	%
Number of Active Customer Meters(end of period)		1,061,484			1,052,774			1,061,484			1,052,774			1,061,484			1,052,774

WGL Holdings, Inc. (Regulated Utility Segment)
For Periods Ended March 31, 2008 and 2007
(Unaudited)

Statements of Income

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2008		2007		2008		2007
Operating Revenues	$	677,749	$	707,662	$	1,142,177	$	1,141,012
Operating Expenses:
Cost of gas		417,136		458,805		685,415		709,810
Operation		51,560		60,015		102,427		106,603
Maintenance		11,431		10,054		21,941		19,519
Depreciation and amortization		23,134		24,339		47,180		42,890
General taxes and other assessments:
Revenue taxes		21,593		22,833		37,046		38,110
Other		13,514		12,995		24,396		22,270
Total operating expenses		538,368		589,041		918,405		939,202
Operating income		139,381		118,621		223,772		201,810
Other income (expenses) — net		428		311		964		180
Interest expense		11,362		11,171		23,513		23,145
Dividends on Washington Gas preferred stock		330		330		660		660
Income taxes		50,145		41,806		78,389		69,565
Net income	$	77,972	$	65,625	$	122,174	$	108,620

Utility Net Revenues ($000)⁽¹⁾

Operating revenues	$	677,749	$	707,662	$	1,142,177	$	1,141,012
Less: Cost of gas		417,136		458,805		685,415		709,810
Revenue taxes		21,593		22,833		37,046		38,110
Utility net revenues	$	239,020	$	226,024	$	419,716	$	393,092

⁽¹⁾ We analyze the operating results of our regulated utility segment based on utility net revenues. Washington Gas Light Company includes the cost of the natural gas commodity and revenue taxes (comprised principally of gross receipts taxes) in its rates charged to customers as reflected in operating revenues. Accordingly, changes in the cost of gas and revenue taxes associated with sales made to customers have no direct effect on the net revenues or net income of the regulated utility segment.

WGL HOLDINGS, INC.
USE OF NON-GAAP OPERATING EARNINGS (LOSS)
(Unaudited)

The attached reconciliations are provided to clearly identify adjustments made to net income calculated in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) to derive non-GAAP operating earnings (loss). Management believes non-GAAP operating earnings (loss) provides a more meaningful representation of our earnings from ongoing operations by excluding the effects of:(i)warmer-than-normal/colder-than-normal weather for our regulated utility segment;(ii)certain unusual transactions and(iii)unrealized mark-to-market gains and losses from energy-related derivatives. This presentation facilitates analysis by providing a consistent and comparable measure to help management, investors and analysts better understand and evaluate our operating results and performance trends. Additionally, we use this non-GAAP measure to report to the board of directors, evaluate management’s performance and for incentive compensation purposes.

We exclude from non-GAAP operating earnings (loss) the effects of warmer-than-normal/colder-than-normal weather to “normalize” weather for our regulated utility segment. Utilization of normal weather is an industry standard, and it is our practice to evaluate our rate-regulated revenues by utilizing normal weather and to provide estimates and guidance on the basis of normal weather. Additionally, we exclude unrealized mark-to-market adjustments for our energy-related derivatives to provide a more transparent and accurate view of the ongoing financial results of our operations. When these derivatives settle, the economic impact is reflected in our non-GAAP operating results, as we are only removing the interim unrealized mark-to-market amounts which are ultimately reversed when the derivatives are settled. These non-GAAP adjustments also assist both management and investors in analyzing period-to-period comparisons.

There are limits in using non-GAAP operating earnings (loss) to analyze our results, as they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. In addition, using non-GAAP operating earnings (loss) per share to analyze our earnings may have limited value as it excludes certain items that may have a material impact on our reported financial results. We compensate for these limitations by providing investors with the attached reconciliations to net income, the most directly comparable GAAP financial measure.

WGL HOLDINGS, INC. (Consolidating by Segment)
RECONCILIATION OF GAAP NET INCOME TO
NON-GAAP OPERATING EARNINGS (LOSS)
(Unaudited)

Six Months Ended March 31, 2008
	Regulated			Retail Energy-					Other
(In thousands, except per share data)	Utility			Marketing			HVAC		Activities*			Consolidated
GAAP net income	$	122,174		$	6,837		$	524	$	(1,300	)	$	128,235
Adjusted for (items shown after-tax):
Reversal of costs related to business process outsourcing(a)		(1,139	)		—			—		—			(1,139	)
Unrealized mark-to-market loss on energy-related derivatives(b)		3,062			1,046			—		—			4,108
Other regulatory adjustments(c)		(1,242	)		—			—		—			(1,242	)
Non-GAAP operating earnings (loss)	$	122,855		$	7,883		$	524	$	(1,300	)	$	129,962
GAAP diluted earnings (loss) per average common share (49,711 shares)	$	2.46		$	0.14		$	0.01	$	(0.03	)	$	2.58
Per share effect of non-GAAP adjustments		0.01			0.02			—		—			0.03
Non-GAAP operating earnings (loss) per share	$	2.47		$	0.16		$	0.01	$	(0.03	)	$	2.61
Six Months Ended March 31, 2007
	Regulated			Retail Energy-					Other
(In thousands, except per share data)	Utility			Marketing			HVAC		Activities*			Consolidated
GAAP net income	$	108,620		$	1,087		$	138	$	(1,372	)	$	108,473
Adjusted for (items shown after-tax):
Colder-than-normal weather(d)		(1,173	)		—			—		—			(1,173	)
Retroactive depreciation expense adjustment(e)		(2,400	)		—			—		—			(2,400	)
Unrealized mark-to-market loss on energy-related derivatives(b)		1,035			434			—		—			1,469
Non-GAAP operating earnings (loss)	$	106,082		$	1,521		$	138	$	(1,372	)	$	106,369
GAAP diluted earnings (loss) per average common share (49,190 shares)	$	2.21		$	0.02		$	—	$	(0.02	)	$	2.21
Per share effect of non-GAAP adjustments		(0.05	)		0.01			—		(0.01	)		(0.05	)
Non-GAAP operating earnings (loss) per share	$	2.16		$	0.03		$	—	$	(0.03	)	$	2.16
Quarter Ended March 31, 2008
	Regulated			Retail Energy-					Other
(In thousands, except per share data)	Utility			Marketing			HVAC		Activities*			Consolidated
GAAP net income	$	77,972		$	3,556		$	251	$	(741	)	$	81,038
Adjusted for (items shown after-tax):
Unrealized mark-to-market loss on energy-related derivatives(b)		1,419			76			—		—			1,495
Non-GAAP operating earnings (loss)	$	79,391		$	3,632		$	251	$	(741	)	$	82,533
GAAP diluted earnings (loss) per average common share (49,781 shares)	$	1.57		$	0.07		$	0.01	$	(0.02	)	$	1.63
Per share effect of non-GAAP adjustments		0.02			—			—		0.01			0.03
Non-GAAP operating earnings (loss) per share	$	1.59		$	0.07		$	0.01	$	(0.01	)	$	1.66
Quarter Ended March 31, 2007
	Regulated			Retail Energy-					Other
(In thousands, except per share data)	Utility			Marketing			HVAC		Activities*			Consolidated
GAAP net income	$	65,625		$	(1,589	)	$	41	$	(702	)	$	63,375
Adjusted for (items shown after-tax):
Colder-than-normal weather(d)		(1,173	)		—			—		—			(1,173	)
Unrealized mark-to-market loss (gain) on energy-related derivatives(b)		1,104			(994	)		—		—			110
Non-GAAP operating earnings (loss)	$	65,556		$	(2,583	)	$	41	$	(702	)	$	62,312
GAAP diluted earnings (loss) per average common share (49,267 shares)	$	1.33		$	(0.03	)	$	—	$	(0.01	)	$	1.29
Per share effect of non-GAAP adjustments		—			(0.02	)		—		(0.01	)		(0.03	)
Non-GAAP operating earnings (loss) per share	$	1.33		$	(0.05	)	$	—	$	(0.02	)	$	1.26

Footnotes

*	Per share amounts for “Other Activities” may include adjustments for rounding
	(Footnote references are described on the following page)

WGL HOLDINGS, INC. (Consolidated by Quarter)
RECONCILIATION OF GAAP NET INCOME TO
NON-GAAP OPERATING EARNINGS (LOSS)
(Unaudited)

Fiscal Year 2008
	Quarterly Period Ended(f)
(In thousands, except per share data)	Dec. 31			Mar. 31			Jun. 30	Sept. 30	Year-To-Date
GAAP net income	$	47,197		$	81,038				$	128,235
Adjusted for (items shown after-tax):
Reversal of costs related to business process outsourcing(a)		(1,139	)		—					(1,139	)
Unrealized mark-to-market loss on energy-related derivatives(b)		2,613			1,495					4,108
Other regulatory adjustments(c)		(1,242	)		—					(1,242	)
Non-GAAP operating earnings	$	47,429		$	82,533				$	129,962
Diluted average common shares outstanding		49,645			49,781					49,711
GAAP diluted earnings per average common share	$	0.95		$	1.63				$	2.58
Per share effect of non-GAAP adjustments		0.01			0.03					0.03
Non-GAAP operating earnings per share	$	0.96		$	1.66				$	2.61
Fiscal Year 2007
	Quarterly Period Ended(f)
(In thousands, except per share data)	Dec. 31			Mar. 31			Jun. 30	Sept. 30	Year-To-Date
GAAP net income	$	45,098		$	63,375				$	108,473
Adjusted for (items shown after-tax):
Colder-than-normal weather(d)		—			(1,173	)				(1,173	)
Retroactive depreciation expense adjustment(e)		(2,400	)		—					(2,400	)
Unrealized mark-to-market loss on energy-related derivatives(b)		1,359			110					1,469
Non-GAAP operating earnings	$	44,057		$	62,312				$	106,369
Diluted average common shares outstanding		49,130			49,267					49,190
GAAP diluted earnings per average common share	$	0.92		$	1.29				$	2.21
Per share effect of non-GAAP adjustments		(0.02	)		(0.03	)				(0.05	)
Non-GAAP operating earnings per share	$	0.90		$	1.26				$	2.16

Footnotes:

(a)	Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These costs were recorded to a regulatory asset in the first quarter of fiscal year 2008 upon approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order.
(b)	Represents the change in the unrealized mark-to-market positions of our energy-related derivatives that were recorded to income during the period. For the regulated utility segment, to the extent that our unrealized mark-to-market gains and losses are not shared with customers, these amounts are recorded directly to income. All unrealized mark-to-market gains and losses for the retail-energy marketing segment are recorded directly to income.
(c)	Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia.
(d)	This adjustment is for our regulated utility segment only. Weather was 8.1 percent colder than normal during the quarter ended March 31, 2007. There were no adjustments for weather in the first quarter of fiscal year 2007.
(e)	Represents an adjustment that reduced depreciation expense applicable to the period from January 1, 2006, through September 30, 2006. This adjustment was recorded in the first quarter of fiscal year 2007 upon approval of new depreciation rates by the staff of the Virginia State Corporation Commission.
(f)	Quarterly earnings per share may not sum to year-to-date or annual earnings per share as quarterly calculations are based on weighted average common and common equivalent shares outstanding, which may vary for each of those periods.

WGL HOLDINGS, INC.
RECONCILIATION OF GAAP EARNINGS GUIDANCE TO
NON-GAAP EARNINGS GUIDANCE
FISCAL YEAR ENDING SEPTEMBER 30, 2008

Consolidated
	Low			High
GAAP Earnings Guidance Range	$	2.34		$	2.44
Adjusted for:
Reversal of costs related to business process outsourcing(a)		(0.02	)		(0.02	)
Unrealized mark-to-market loss on energy-related derivatives(b)		0.09			0.09
Other regulatory adjustments (c)		(0.02	)		(0.02	)
Other adjustment(d)		(0.01	)		(0.01	)
Non-GAAP Earnings Guidance Range	$	2.38		$	2.48
Regulated Utility Segment
	Low			High
GAAP Earnings Guidance Range	$	2.07		$	2.13
Adjusted for:
Reversal of costs related to business process outsourcing(a)		(0.02	)		(0.02	)
Unrealized mark-to-market loss on energy-related derivatives(b)		0.05			0.05
Other regulatory adjustments (c)		(0.02	)		(0.02	)
Other adjustment (d)		(0.01	)		(0.01	)
Non-GAAP Earnings Guidance Range	$	2.07		$	2.13
Unregulated Business Segments
	Low			High
GAAP Earnings Guidance Range	$	0.27		$	0.31
Adjusted for:
Unrealized mark-to-market loss on energy-related derivatives(b)		0.04			0.04
Non-GAAP Earnings Guidance Range	$	0.31		$	0.35

Footnotes:

(a)	Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These expenses were reversed in the first quarter of fiscal year 2008 due to the approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order.
(b)	Represents the estimated reversal of certain of our existing unrealized mark-to-market positions related to our energy derivatives that will be recorded to income during fiscal year 2008. For the regulated utility segment, to the extent that our unrealized mark-to-market gains and losses are not shared with customers, these amounts are recorded directly to income. All unrealized mark-to-market gains and losses for the retail-energy marketing segment are recorded directly to income.
(c)	Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia.
(d)	Adjustment due to rounding differences in per share amounts