Washington Gas Light (WGLCP) 8-K WGL Holdings, Inc., Reports Increased First Quarter Fiscal Year 2009 Earnings; Raises Fiscal Year 2009 Guidance

Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACTS:
February 4, 2009
	News Media
	Eric Grant	(202) 624-6091
	Financial Community
	Robert Dennis	(202) 624-6129

WGL Holdings, Inc., Reports Increased First Quarter Fiscal Year 2009 Earnings;
Raises Fiscal Year 2009 Guidance

• Consolidated earnings per share up — $1.03 per share vs. $0.95 per share for the comparative quarter of the prior year

• Consolidated non-GAAP operating earnings up — $1.03 per share vs. $0.96 per share for the comparative quarter of the prior year

• Earnings Guidance for Fiscal Year 2009 raised to a range of $2.41 to $2.53 on both a Consolidated GAAP and non-GAAP operating earnings basis

Consolidated Results

     WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported higher net income determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) for the quarter ended December 31, 2008 of $51.8 million, or $1.03 per share, an increase of $4.6 million, or $0.08 per share, over net income of $47.2 million, or $0.95 per share, reported for the quarter ended December 31, 2007.

     “Our first quarter performance and improved outlook for fiscal year 2009 builds on the strong results achieved last year and continues our record of generating long-term success for the benefit of our customers, employees and investors,” said James H. DeGraffenreidt, Jr., chairman and chief executive officer of WGL Holdings. “Our consistent emphasis on core strategic objectives has enabled us to sustain the strength of our balance sheet that supports excellent credit ratings and liquidity in today’s challenging economy.”

     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)unrealized mark-to-market gains (losses) on energy-related derivatives;(iii)certain gains and losses associated with optimizing the utility segment’s system storage capacity assets

1

and(iv)other unusual transactions. 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 quarter ended December 31, 2008, our non-GAAP operating earnings were $51.7 million, or $1.03 per share, an increase of $4.3 million, or $0.07 per share, over non-GAAP operating earnings of $47.4 million, or $0.96 per share, for the same quarter of the prior fiscal year.

First Quarter Results by Business Segment

     Regulated Utility Segment

     For the quarter ended December 31, 2008, our regulated utility segment reported net income of $50.9 million, or $1.01 per share, an increase of $6.7 million, or $0.12 per share, over net income of $44.2 million, or $0.89 per share, reported for the first quarter of the prior fiscal year. After adjustments, non-GAAP operating earnings for the regulated utility segment were $45.4 million, or $0.90 per share, for the quarter ended December 31, 2008, an increase of $1.9 million, or $0.02 per share, over non-GAAP operating earnings of $43.5 million, or $0.88 per share, for the same quarter of the prior fiscal year. Current period improvements to non-GAAP operating earnings included:(i)an increase of over 7,500 average active customer meters from the prior quarter;(ii) an increase in the recovery of carrying costs on higher average storage gas inventory balances;(iii)a decrease in labor and benefits expense, due in part, to our outsourcing initiative and(iv) lower costs for weather protection products related to the District of Columbia. Partially offsetting these improvements were:(i)the negative effects of changes in natural gas consumption patterns;(ii)the timing of prior year rate relief in Maryland and(iii)a decrease in realized margins associated with our asset optimization program.

     Retail Energy-Marketing Segment

     For the quarter ended December 31, 2008, the retail energy-marketing segment reported net income of $450,000, or $0.01 per share, compared to net income of $3.3 million, or $0.07 per share, reported for the first quarter of the prior fiscal year. Non-GAAP operating earnings for the retail energy-marketing segment were $5.8 million, or $0.12 per share, for the first quarter ended December 31, 2008, an increase of $1.5 million, or $0.03 per share, over non-GAAP operating earnings of $4.3 million, or $0.09 per share, for the same quarter of the prior fiscal year. This comparison in non-GAAP operating earnings primarily reflects higher realized margins from the sale of natural gas, reflecting a rise in margin per therm sold, partially offset by a decrease in natural gas and electric sales volumes due in part to a

2

reduced number of customers compared to the same quarter of the prior fiscal year. The difference between GAAP net income and non-GAAP operating earnings is due to adjustments for unrealized mark-to-market gains and losses. Unrealized mark-to-market gains and losses are primarily attributable to changes in the fair value of certain contracts related to the purchase of energy supplies to match future retail sales commitments. These supply contracts are subject to mark-to-market treatment, while the corresponding retail sales commitments are not.

     Design-Build Energy Systems Segment

     For the quarter ended December 31, 2008, the design-build energy systems segment reported net income of $832,000, or $0.02 per share, an increase of $559,000, or $0.01 per share, over net income of $273,000, or $0.01 per share, reported for the first quarter of the prior fiscal year. This increase primarily reflects higher revenues and lower cost of sales associated with design-build projects. There were no non-GAAP adjustments for this segment for either period.

Earnings Outlook

     We are raising our GAAP earnings estimate for the fiscal year 2009 in a range of $2.41 to $2.53 per share to reflect stronger projected margins for both our retail energy-marketing and design-build energy segments as well as lower costs for our regulated utility segment. This estimate includes projected fiscal year 2009 earnings from our regulated utility segment in a range of $1.97 per share to $2.03 per share and projected fiscal year 2009 earnings from our unregulated business segments in a range of $0.44 per share to $0.50 per share.

     We are also providing a consolidated earnings estimate for fiscal year 2009 based on non-GAAP operating earnings in a range of $2.41 per share to $2.53 per share. This estimate includes projected fiscal year 2009 non-GAAP operating earnings from our regulated utility segment in a range of $2.00 per share to $2.06 per share, and projected fiscal year 2009 non-GAAP operating earnings from our unregulated business segments in a range of $0.41 per share to $0.47 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.

3

Other Information

     We will hold a conference call at 10:30 a.m. Eastern time on February 5, 2009, to discuss our first quarter financial results for fiscal year 2009. 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 March 5, 2009.

     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 design-build energy systems 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,www.wglholdings.com.

     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.

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 we have filed with, or furnished to, the U.S. Securities and Exchange Commission.

4

WGL Holdings, Inc.
Consolidated Statements of Income
(Unaudited)

	Three Months Ended
	December 31,
(In thousands, except per share data)	2008			2007
OPERATING REVENUES
Utility	$	517,881		$	461,950
Non-utility		303,607			289,676
Total Operating Revenues		821,488			751,626
OPERATING EXPENSES
Utility cost of gas		306,784			265,801
Non-utility cost of energy-related sales		292,238			275,543
Operation and maintenance		70,334			68,849
Depreciation and amortization		24,081			24,255
General taxes and other assessments		30,427			27,243
Total Operating Expenses		723,864			661,691
OPERATING INCOME		97,624			89,935
Other Income (Expenses)—Net		17			588
Interest Expense
Interest on long-term debt		9,952			9,980
Other—net		2,227			2,757
Total Interest Expense		12,179			12,737
Dividends on Washington Gas preferred stock		330			330
INCOME BEFORE INCOME TAXES		85,132			77,456
INCOME TAX EXPENSE		33,288			30,259
NET INCOME APPLICABLE TO COMMON STOCK	$	51,844		$	47,197
AVERAGE COMMON SHARES OUTSTANDING
Basic		50,022			49,416
Diluted		50,208			49,645
EARNINGS PER AVERAGE COMMON SHARE
Basic	$	1.04		$	0.96
Diluted	$	1.03		$	0.95
Net Income (Loss) Applicable To Common Stock—By Segment ($000):
Regulated utility	$	50,936		$	44,202
Non-utility operations:
Retail energy-marketing		450			3,281
Design-build energy systems		832			273
Other activities		(374	)		(559	)
Total non-utility		908			2,995
NET INCOME APPLICABLE TO COMMON STOCK	$	51,844		$	47,197

5

WGL Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)

	December 31			September 30
(In thousands)	2008			2008
ASSETS
Property, Plant and Equipment
At original cost	$	3,212,895		$	3,184,247
Accumulated depreciation and amortization		(993,268	)		(975,945	)
Net property, plant and equipment		2,219,627			2,208,302
Current Assets
Cash and cash equivalents		8,835			6,164
Accounts receivable, net		601,209			250,165
Storage gas—at cost (first-in, first-out)		343,495			406,629
Other		123,415			79,391
Total current assets		1,076,954			742,349
Deferred Charges and Other Assets		342,680			292,892
Total Assets	$	3,639,261		$	3,243,543
CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders’ equity	$	1,086,223		$	1,047,564
Washington Gas Light Company preferred stock		28,173			28,173
Long-term debt		657,659			603,738
Total capitalization		1,772,055			1,679,475
Current Liabilities
Notes payable and current maturities of long-term debt		415,375			346,949
Accounts payable and other accrued liabilities		331,452			243,123
Other		271,737			158,407
Total current liabilities		1,018,564			748,479
Deferred Credits		848,642			815,589
Total Capitalization and Liabilities	$	3,639,261		$	3,243,543

6

WGL Holdings, Inc.
Consolidated Financial and Operating Statistics
(Unaudited)

FINANCIAL STATISTICS
	Twelve Months Ended
	December 31,
	2008			2007
Closing Market Price—end of period	$	32.69		$	32.76
52-Week Market Price Range	$	37.08-$22.40		$	35.91-$29.79
Price Earnings Ratio		13.4			14.7
Annualized Dividends Per Share	$	1.42		$	1.37
Dividend Yield		4.3	%		4.2	%
Return on Average Common Equity		11.5	%		11.2	%
Total Interest Coverage(times)		5.1			4.6
Book Value Per Share—end of period	$	21.68		$	20.49
Common Shares Outstanding—end of period(thousands)		50,112			49,449

UTILITY GAS STATISTICS
	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
(In thousands)	2008		2007		2008		2007
Operating Revenues
Gas Sold and Delivered
Residential — Firm	$	353,925	$	304,400	$	1,053,945	$	1,010,323
Commercial and Industrial — Firm		96,232		87,669		300,836		286,398
Commercial and Industrial — Interruptible		1,659		2,298		7,939		6,668
Electric Generation		275		267		1,099		1,100
		452,091		394,634		1,363,819		1,304,489
Gas Delivered for Others
Firm		40,114		40,395		138,950		136,005
Interruptible		13,323		12,839		46,691		49,073
Electric Generation		75		90		357		326
		53,512		53,324		185,998		185,404
		505,603		447,958		1,549,817		1,489,893
Other		12,278		13,992		42,557		38,310
Total	$	517,881	$	461,950	$	1,592,374	$	1,528,203

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(In thousands of therms)	2008			2007			2008			2007
Gas Sales and Deliveries
Gas Sold and Delivered
Residential — Firm		228,158			198,982			656,703			664,899
Commercial and Industrial — Firm		67,250			62,633			203,980			208,866
Commercial and Industrial — Interruptible		1,218			1,847			5,914			5,254
		296,626			263,462			866,597			879,019
Gas Delivered for Others
Firm		147,707			134,108			447,590			443,435
Interruptible		78,499			74,341			260,784			264,853
Electric Generation		23,463			20,269			95,370			122,108
		249,669			228,718			803,744			830,396
Total		546,295			492,180			1,670,341			1,709,415
WASHINGTON GAS ENERGY SERVICES
Natural Gas Sales
Therm Sales(thousands of therms)		189,541			196,474			628,105			717,327
Number of Customers(end of period)		135,800			140,700			135,800			140,700
Electricity Sales
Electricity Sales(thousands of kWhs)		845,311			899,469			3,553,461			3,943,584
Number of Accounts(end of period)		63,900			67,100			63,900			67,100
UTILITY GAS PURCHASED EXPENSE (excluding asset optimization)		106.93	¢		98.83	¢		107.56	¢		100.07	¢
HEATING DEGREE DAYS
Actual		1,527			1,241			3,744			3,888
Normal		1,346			1,356			3,778			3,807
Percent Colder (Warmer) than Normal		13.4	%		(8.5	)%		(0.9)	%		2.1	%
Average Active Customer Meters		1,059,163			1,051,573			1,058,104			1,049,587

7

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 adjusting for the effects of:(i)warmer-than-normal/colder-than-normal weather for our regulated utility segment;(ii)unrealized mark-to-market gains and losses from energy-related derivatives;(iii)certain gains and losses associated with optimizing the utility segment’s system storage capacity assets and(iv)certain unusual transactions. 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, and assist in analyzing period-to-period comparisons. Additionally, we use this non-GAAP measure to report to the board of directors and to evaluate management’s performance.

The economic substance underlying our adjustments to calculate non-GAAP operating earnings (loss) is as follows:

• we exclude the effects of warmer-than-normal/colder-than-normal weather to “normalize” weather for our regulated utility segment. During the three months ended December 31, 2008, the regulated utility segment had a weather protection strategy designed to neutralize the estimated financial effects of variations from normal weather on its net income. During the three months ended December 31, 2007, this strategy allowed Washington Gas to retain the benefit from colder-than-normal weather in certain jurisdictions. 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;

• 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. For our regulated utility segment, we use derivatives to substantially lock-in a future profit. This profit does not change even though the unrealized fair value of the underlying derivatives may change period-to-period, until settlement. For our retail energy-marketing segment, we use derivatives to lock-in a price for energy supplies to match future retail sales commitments. These derivatives are subject to mark-to-market treatment, while the corresponding retail sales commitments are not. With the exception of certain transactions related to the optimization of system storage capacity assets, as discussed below, 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.

• we adjust for certain gains and losses associated with the optimization of the regulated utility segment’s system storage capacity assets. Transactions to optimize our storage capacity assets are structured to lock-in a profit that is recognized, for regulatory purposes, as the natural gas is delivered to end-use customers. These transactions may result in gains and losses that consist of:(i)the settlement of physical and financial derivatives related to the management of our storage inventory(ii)lower of cost or market adjustments from the difference between the cost of physical inventory compared to the amount realized through rates when the inventory is ultimately delivered to customers. In our GAAP results, due to timing differences between when the physical and financial transactions settle, and when the natural gas is sold to the end-use customer, gains and losses associated with our storage optimization strategy may be spread across different reporting periods. For purposes of calculating non-GAAP operating earnings (loss), gains and losses associated with these transactions are included in the reporting period when the gas is delivered to the end-use customer and the ultimate profit is realized for regulatory purposes. This reflects a better matching between the economic costs and benefits of the overall optimization strategy.

• we exclude certain unusual transactions that may be the result of regulatory or legal decisions, or items that we may deem outside of the ordinary course of business.

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.

8

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

Quarter Ended December 31, 2008
						Design-Build
	Regulated			Retail Energy-		Energy		Other
(In thousands, except per share data)	Utility			Marketing		Systems		Activities*			Consolidated
GAAP net income (loss)	$	50,936		$	450	$	832	$	(374	)	$	51,844
Adjusted for (items shown after-tax):
Unrealized mark-to-market loss (gain) on energy-related derivatives(a)		(6,293	)		5,333		—		—			(960	)
Loss on settled derivatives — storage optimization(b)		776			—		—		—			776
Prior period lower-of-cost or market adjustment — storage optimization(c)		(524	)		—		—		—			(524	)
Prior period gain on settled derivatives — storage optimization(d)		515			—		—		—			515
Non-GAAP operating earnings (loss)	$	45,410		$	5,783	$	832	$	(374	)	$	51,651
GAAP diluted earnings (loss) per average common share (50,208 shares)	$	1.01		$	0.01	$	0.02	$	(0.01	)	$	1.03
Per share effect of non-GAAP adjustments		(0.11	)		0.11		—		—			—
Non-GAAP operating earnings (loss) per share	$	0.90		$	0.12	$	0.02	$	(0.01	)	$	1.03

Quarter Ended December 31, 2007
						Design-Build
	Regulated			Retail Energy-		Energy		Other
(In thousands, except per share data)	Utility			Marketing		Systems		Activities*			Consolidated
GAAP net income (loss)	$	44,202		$	3,281	$	273	$	(559	)	$	47,197
Adjusted for:
Reversal of costs related to business process outsourcing(e)		(1,139	)		—		—		—			(1,139	)
Unrealized mark-to-market loss on energy-related derivatives(a)		1,643			970		—		—			2,613
Other regulatory adjustments(f)		(1,242	)		—		—		—			(1,242	)
Non-GAAP operating earnings (loss)	$	43,464		$	4,251	$	273	$	(559	)	$	47,429
GAAP diluted earnings (loss) per average common share (49,645 shares)	$	0.89		$	0.07	$	0.01	$	(0.02	)	$	0.95
Per share effect of non-GAAP adjustments		(0.01	)		0.02		—		—			0.01
Non-GAAP operating earnings (loss) per share	$	0.88		$	0.09	$	0.01	$	(0.02	)	$	0.96

* Per share amounts for “Other Activities” may include adjustments for rounding

(Footnote references are described on the following page)

9

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

Fiscal Year 2009
	Quarterly Period Ended(g)
							Year-To-
(In thousands, except per share data)	Dec. 31			Mar. 31	Jun. 30	Sept. 30	Date
GAAP net income	$	51,844					$	51,844
Adjusted for (items shown after-tax):
Unrealized mark-to-market gain on energy-related derivatives(a)		(960	)					(960	)
Loss on settled derivatives — storage optimization(b)		776						776
Prior period lower of cost or market adjustment — storage optimization(c)		(524	)					(524	)
Prior period gain on settled derivatives — storage optimization(d)		515						515
Non-GAAP operating earnings	$	51,651					$	51,651
Diluted average common shares outstanding		50,208						50,208
GAAP diluted earnings per average common share	$	1.03					$	1.03
Per share effect of non-GAAP adjustments		—						—
Non-GAAP operating earnings per share	$	1.03					$	1.03

Fiscal Year 2008
	Quarterly Period Ended(g)
							Year-To-
(In thousands, except per share data)	Dec. 31			Mar. 31	Jun. 30	Sept. 30	Date
GAAP net income	$	47,197					$	47,197
Adjusted for (items shown after-tax):
Reversal of costs related to business process outsourcing(e)		(1,139	)					(1,139	)
Unrealized mark-to-market loss on energy-related derivatives(a)		2,613						2,613
Other regulatory adjustments(f)		(1,242	)					(1,242	)
Non-GAAP operating earnings	$	47,429					$	47,429
Diluted average common shares outstanding		49,645						49,645
GAAP diluted earnings per average common share	$	0.95					$	0.95
Per share effect of non-GAAP adjustments		0.01						0.01
Non-GAAP operating earnings per share	$	0.96					$	0.96

Footnotes

(a)	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.
(b)	Adjustment relates to the current period settlement of physical and financial derivatives resulting from the optimization of the regulated utility segment’s system storage capacity assets.
(c)	Adjustment removing the effects of a lower of cost or market adjustment to reflect the delivery of gas in storage to end-use customers.
(d)	Recognition of prior period gains on the settlement of physical and financial derivatives to reflect the delivery of gas in storage to end-use customers. These gains resulted from the optimization of the regulated utility segment’s system storage capacity assets.
(e)	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.
(f)	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.
(g)	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.

10

WGL HOLDINGS, INC.
RECONCILIATION OF GAAP EARNINGS GUIDANCE TO
NON-GAAP EARNINGS GUIDANCE
FISCAL YEAR ENDING SEPTEMBER 30, 2009

Consolidated
	Low			High
GAAP Earnings Per Share Guidance Range	$	2.41		$	2.53
Adjusted for:
Unrealized mark-to-market gain on energy-related derivatives(a)		(0.03	)		(0.03	)
Loss on settled derivatives — storage optimization(b)		0.02			0.02
Prior period lower of cost or market adjustment — storage optimization(c)		(0.03	)		(0.03	)
Prior period gain on settled derivatives — storage optimization(d)		0.04			0.04
Non-GAAP Operating Earnings Per Share Guidance Range	$	2.41		$	2.53

Regulated Utility Segment
	Low			High
GAAP Earnings Per Share Guidance Range	$	1.97		$	2.03
Adjusted for:
Unrealized mark-to-market gain on energy-related derivatives(a)		—			—
Loss on settled derivatives — storage optimization(b)		0.02			0.02
Prior period lower of cost or market adjustment — storage optimization(c)		(0.03	)		(0.03	)
Prior period gain on settled derivatives — storage optimization(d)		0.04			0.04
Non-GAAP Operating Earnings Per Share Guidance Range	$	2.00		$	2.06

Unregulated Business Segments
	Low			High
GAAP Earnings Per Share Guidance Range	$	0.44		$	0.50
Adjusted for:
Unrealized mark-to-market gain on energy-related derivatives(a)		(0.03	)		(0.03	)
Non-GAAP Operating Earnings Per Share Guidance Range	$	0.41		$	0.47

Footnotes:

(a)	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 2009. 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.
(b)	Adjustment relates to the current period settlement of physical and financial derivatives resulting from the optimization of the regulated utility segment’s system storage capacity assets.
(c)	Adjustment removing the effects of a lower of cost or market adjustment to reflect the delivery of gas in storage to end-use customers.
(d)	Recognition of prior period gains on the settlement of physical and financial derivatives to reflect the delivery of gas in storage to end-use customers. These gains resulted from the optimization of the regulated utility segment’s system storage capacity assets.

11