WGL Holdings, Inc. Reports Second Quarter Fiscal Year 2009 Earnings and Adjusts Fiscal Year 2009 Guidance

* Second quarter consolidated earnings per share -- $1.49 per share vs. $1.63
per share for the comparative quarter of the prior year
* Year-to-date consolidated earnings per share -- $2.58 per share, unchanged
from the comparative year-to-date of the prior year
* Second quarter consolidated non-GAAP operating earnings -- $1.65 per share vs.
$1.66 per share for the same quarter last year
* Year-to-date consolidated non-GAAP operating earnings up -- $2.67 per share
vs. $2.61 per share for the comparative year-to-date of the prior year

WASHINGTON--(Business Wire)--
WGL Holdings, Inc. (NYSE:WGL):

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, 2009 of $75.1 million, or $1.49 per share, compared to net income of $81.0
million, or $1.63 per share, reported for the quarter ended March 31, 2008.

For the first six months of fiscal year 2009, we reported net income determined
in accordance with GAAP of $129.7 million, or $2.58 per share compared to net
income of $128.2 million, or $2.58 per share, reported for the comparative
period of fiscal year 2008. Our operations are seasonal and, accordingly, our
operating results for the three and six months ended March 31, 2009, are not
indicative of the results expected for the twelve months ending September 30,
2009.

"Our excellent year-to-date results reflect our employees` commitment to the
company`s core strategic objectives that deliver superior performance allowing
us to reward shareholders and customers," said James H. DeGraffenreidt, Jr.,
chairman and chief executive officer of WGL Holdings. "We strive for operational
excellence for our utility operations, while identifying opportunities for
sustainable long term growth in our unregulated businesses."

Financial performance is evaluated based on non-GAAP operating earnings (loss).
Non-GAAP operating earnings (loss) excludes the effects of: (i) unrealized
mark-to-market gains (losses) on energy-related derivatives; (ii) certain gains
and losses associated with optimizing the utility segment`s storage capacity
assets and (iii) certain 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 March 31, 2009, our non-GAAP operating earnings were $82.8
million, or $1.65 per share, compared to non-GAAP operating earnings of $82.5
million, or $1.66 per share, for the same quarter of the prior fiscal year. For
the six months ended March 31, 2009, our non-GAAP operating earnings were $134.4
million, or $2.67 per share, an increase of $4.4 million, or $0.06 per share,
over non-GAAP operating earnings of $130.0 million, or $2.61 per share, for the
same period of the prior fiscal year.

Second Quarter Results by Business Segment

Regulated Utility Segment

For the quarter ended March 31, 2009, our regulated utility segment reported net
income of $75.4 million, or $1.49 per share, compared to net income of $78.0
million, or $1.57 per share, reported for the second quarter of the prior fiscal
year. After adjustments, non-GAAP operating earnings for the regulated utility
segment were $79.0 million, or $1.57 per share, for the quarter ended March 31,
2009, compared to non-GAAP operating earnings of $79.4 million, or $1.59 per
share, for the same quarter of the prior fiscal year.

For the six months ended March 31, 2009, our regulated utility segment reported
net income of $129.1 million, or $2.57 per share, an increase of $6.9 million,
or $0.11 per share, over net income of $122.2 million, or $2.46 per share,
reported for the six months ended March 31, 2008. After adjustments, non-GAAP
operating earnings for the regulated utility segment were $124.4 million, or
$2.47 per share, for the six months ended March 31, 2009, compared to non-GAAP
operating earnings of $122.9 million, or $2.47 per share, for the same six
months of the prior fiscal year.

For both the three and six month comparisons, the non-GAAP operating earnings
included: (i) an increase in average active customer meters from the prior
period; (ii) an increase in the recovery of carrying costs on higher average
storage gas inventory balances; (iii) an increase in realized margins associated
with our asset optimization program and (iv) lower costs for weather protection
products related to our District of Columbia territory. Offsetting these
improvements werethe negative effects of changes in natural gas consumption
patterns that benefited the comparative periods last year. Affecting the year to
date comparison only, improvements were partially offset by higher uncollectible
accounts expense and the timing of prior year rate relief in Maryland.

Retail Energy-Marketing Segment

For the quarter ended March 31, 2009, the retail energy-marketing segment
reported a net loss of $(667,000), or $(0.01) per share, compared to net income
of $3.6 million, or $0.07 per share, reported for the second quarter of the
prior fiscal year. Non-GAAP operating earnings for the retail energy-marketing
segment were $3.4 million, or $0.07 per share, for the quarter ended March 31,
2009, compared to non-GAAP operating earnings of $3.6 million, or $0.07 per
share, for the same quarter in the prior fiscal year. This comparison in
non-GAAP operating earnings primarily reflects higher realized margins from the
sale of electricity due to increased electric sales volumes offset by increased
operating expenses. The difference between GAAP net income and non-GAAP
operating earnings is due to adjustments for unrealized mark-to-market gains and
losses and the reversal of certain electric cost adjustments attributable to
prior periods. Unrealized mark-to-market gains and losses primarily reflect
timing differences in recognizing margins 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.

For the six months ended March 31, 2009, the retail energy-marketing segment
reported a net loss of $(217,000) compared to net income of $6.8 million, or
$0.14 per share, reported for the same period of the prior fiscal year. Non-GAAP
operating earnings for the retail energy-marketing segment were $9.2 million, or
$0.19 per share, for the six months ended March 31, 2009, an increase of $1.3
million, or $0.03 per share, over non-GAAP operating earnings of $7.9 million,
or $0.16 per share, for the same period of the prior fiscal year. The comparison
in non-GAAP operating earnings primarily reflects higher realized margins from
the sale of natural gas, reflecting a rise in the margin per therm sold, as well
as higher electricity margins, due to a rise in electric sales volumes partially
offset by increased operating expenses.

Design-Build Energy Systems Segment

For the quarter ended March 31, 2009, the design-build energy systems segment
reported net income of $1.2 million, or $0.02 per share, an increase of
$949,000, or $0.01 per share, over net income of $251,000, or $0.01 per share,
reported for the same quarter of the prior fiscal year. For the six months ended
March 31, 2009, the design-build energy systems segment reported net income of
$2.0 million, or $0.04 per share, an increase of $1.5 million, or $0.03 per
share, over net income of $524,000, or $0.01 per share, reported for the same
period 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 any of the periods presented.

Earnings Outlook

Our GAAP earnings estimate for the fiscal year 2009 is in a range of $2.43 to
$2.55 per share. This estimate includes projected fiscal year 2009 earnings from
our regulated utility segment in a range of $2.07 per share to $2.13 per share
and projected fiscal year 2009 earnings from our unregulated business segments
in a range of $0.36 per share to $0.42 per share.

We are also providing a consolidated earnings estimate for fiscal year 2009
based on non-GAAP operating earnings in a range of $2.43 per share to $2.55 per
share which primarily reflects stronger projected margins over fiscal year 2008
for both our retail energy-marketing and design-build energy segments. 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 $0.43 per share to $0.49 per share. Refer to the
"Reconciliation of GAAP Earnings Guidance to Non-GAAP Earnings Guidance"
attached to this news 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 April 30, 2009, to
discuss our second 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 May 30,
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.

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

Three Months Ended Six Months Ended
March 31, March 31,
(In thousands, except per share data) 2009 2008 2009 2008
OPERATING REVENUES
Utility $ 642,397 $ 671,391 $ 1,164,878 $ 1,133,341
Non-utility 398,491 348,646 702,098 638,322
Total Operating Revenues 1,040,888 1,020,037 1,866,976 1,771,663

OPERATING EXPENSES
Utility cost of gas 375,143 410,778 681,927 676,579
Non-utility cost of energy-related sales 387,074 333,936 679,312 609,479
Operation and maintenance 78,439 70,836 148,773 139,685
Depreciation and amortization 24,245 23,345 48,326 47,600
General taxes and other assessments 41,255 36,133 71,682 63,376
Total Operating Expenses 906,156 875,028 1,630,020 1,536,719

OPERATING INCOME 134,732 145,009 236,956 234,944
Other Income (Expenses)-Net 760 560 777 1,148
Interest Expense
Interest on long-term debt 10,520 9,976 20,472 19,956
Other-net 955 1,977 3,182 4,734
Total Interest Expense 11,475 11,953 23,654 24,690
Dividends on Washington Gas preferred stock 330 330 660 660
INCOME BEFORE INCOME TAXES 123,687 133,286 213,419 210,742
INCOME TAX EXPENSE 48,617 52,248 83,724 82,507

NET INCOME APPLICABLE TO COMMON STOCK $ 75,070 $ 81,038 $ 129,695 $ 128,235

AVERAGE COMMON SHARES OUTSTANDING
Basic 50,130 49,462 50,071 49,437
Diluted 50,420 49,781 50,309 49,711

EARNINGS PER AVERAGE COMMON SHARE
Basic $ 1.50 $ 1.64 $ 2.59 $ 2.59
Diluted $ 1.49 $ 1.63 $ 2.58 $ 2.58

Net Income (Loss) Applicable To Common Stock-By Segment ($000):

Regulated utility $ 75,375 $ 77,972 $ 129,092 $ 122,174
Non-utility operations:
Retail energy-marketing (667 ) 3,556 (217 ) 6,837
Design-build energy systems 1,201 251 2,033 524
Other activities (839 ) (741 ) (1,213 ) (1,300 )
Total non-utility (305 ) 3,066 603 6,061
NET INCOME APPLICABLE TO COMMON STOCK $ 75,070 $ 81,038 $ 129,695 $ 128,235

WGL Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)

March 31, September 30,
(In thousands) 2009 2008
ASSETS
Property, Plant and Equipment
At original cost $ 3,221,086 $ 3,184,247
Accumulated depreciation and amortization (990,271 ) (975,945 )
Net property, plant and equipment 2,230,815 2,208,302

Current Assets
Cash and cash equivalents 24,387 6,164
Accounts receivable, net 576,150 250,165
Storage gas-at cost (first-in, first-out) 84,695 406,629
Other 133,784 79,391
Total current assets 819,016 742,349
Deferred Charges and Other Assets 327,472 292,892
Total Assets $ 3,377,303 $ 3,243,543

CAPITALIZATION AND LIABILITIES
Capitalization
Common shareholders' equity $ 1,147,286 $ 1,047,564
Washington Gas Light Company preferred stock 28,173 28,173
Long-term debt 655,822 603,738
Total capitalization 1,831,281 1,679,475

Current Liabilities
Notes payable and current maturities of long-term debt 181,535 346,949
Accounts payable and other accrued liabilities 280,299 243,123
Other 220,547 158,407
Total current liabilities 682,381 748,479
Deferred Credits 863,641 815,589
Total Capitalization and Liabilities $ 3,377,303 $ 3,243,543

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

FINANCIAL STATISTICS
Twelve Months Ended
March 31,
2009 2008

Closing Market Price-end of period $ 32.80 $ 32.06
52-Week Market Price Range $ 37.08-$22.40 $ 35.91-$29.79
Price Earnings Ratio 13.9 12.4
Annualized Dividends Per Share $ 1.47 $ 1.42
Dividend Yield 4.5 % 4.4 %
Return on Average Common Equity 10.6 % 12.2 %
Total Interest Coverage (times) 5.0 5.3
Book Value Per Share-end of period $ 22.88 $ 21.80
Common Shares Outstanding-end of period (thousands) 50,141 49,467

UTILITY GAS STATISTICS
Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
(In thousands) 2009 2008 2009 2008 2009 2008

Operating Revenues
Gas Sold and Delivered
Residential - Firm $ 450,141 $ 468,251 $ 807,655 $ 772,651 $ 1,039,424 $ 988,476
Commercial and Industrial - Firm 112,566 121,813 209,810 209,482 292,601 276,827
Commercial and Industrial - Interruptible 1,156 2,860 2,815 5,158 6,235 7,669
Electric Generation 275 275 550 542 1,099 1,100
564,138 593,199 1,020,830 987,833 1,339,359 1,274,072
Gas Delivered for Others
Firm 56,843 56,028 96,956 96,423 139,764 138,518
Interruptible 16,650 15,982 29,973 28,821 47,359 47,244
Electric Generation 107 72 182 162 392 323
73,600 72,082 127,111 125,406 187,515 186,085
637,738 665,281 1,147,941 1,113,239 1,526,874 1,460,157
Other 4,659 6,110 16,937 20,102 41,106 40,379
Total $ 642,397 $ 671,391 $ 1,164,878 $ 1,133,341 $ 1,567,980 $ 1,500,536

Three Months Ended Six Months Ended Twelve Months Ended
March 31, March 31, March 31,
(In thousands of therms) 2009 2008 2009 2008 2009 2008

Gas Sales and Deliveries
Gas Sold and Delivered
Residential - Firm 351,057 314,357 579,215 513,339 693,403 641,810
Commercial and Industrial - Firm 93,259 86,634 160,509 149,267 210,605 200,619
Commercial and Industrial - Interruptible 974 2,212 2,192 4,059 4,676 6,132
445,290 403,203 741,916 666,665 908,684 848,561
Gas Delivered for Others
Firm 199,954 184,707 347,661 318,815 462,837 436,096
Interruptible 95,018 86,323 173,517 160,664 269,479 260,575
Electric Generation 22,857 14,761 46,320 35,030 103,466 119,867
317,829 285,791 567,498 514,509 835,782 816,538
Total 763,119 688,994 1,309,414 1,181,174 1,744,466 1,665,099

WASHINGTON GAS ENERGY SERVICES
Natural Gas Sales
Therm Sales (thousands of therms) 272,687 254,375 462,228 450,849 646,417 655,667

Number of Customers (end of period) 141,500 140,700 141,500 140,700 141,500 140,700

Electricity Sales
Electricity Sales (thousands of kWhs) 1,037,602 871,604 1,882,913 1,771,073 3,719,459 3,807,936

Number of Accounts (end of period) 70,600 68,300 70,600 68,300 70,600 68,300

UTILITY GAS PURCHASED EXPENSE
(excluding asset optimization) 85.21 ¢ 103.03 ¢ 93.89 ¢ 102.19 ¢ 98.62 ¢ 101.30 ¢

HEATING DEGREE DAYS
Actual 2,333 1,944 3,860 3,185 4,133 3,601
Normal 2,111 2,115 3,457 3,471 3,774 3,795
Percent Colder (Warmer) than Normal 10.5 % (8.1 )% 11.7 % (8.2 )% 9.5 % (5.1 )%

Average Active Customer Meters 1,070,724 1,060,200 1,064,801 1,055,601 1,061,000 1,052,432

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) unrealized mark-to-market gains and losses
from energy-related derivatives; (ii) certain gains and losses associated with
optimizing the utility segment`s storage capacity assets and (iii) 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 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 storage capacity assets. Transactions to optimize
our system 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 and (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 also exclude valuation adjustments to the carrying value of non-system
natural gas storage inventory. This inventory is held solely to support asset
optimization transactions. Valuation adjustments to reflect lower-of-cost or
market under current accounting standards may not be representative of the
margins that will be realized and shared with our utility ratepayers. Non-GAAP
earnings reflect actual margins realized based on the unadjusted historical cost
in storage when inventory is withdrawn and sold.
* 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.

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

Quarter Ended March 31, 2009
Design-Build
Regulated Retail Energy- Energy Other
(In thousands, except per share data) Utility Marketing Systems Activities* Consolidated
GAAP net income (loss) $ 75,375 $ (667 ) $ 1,201 $ (839 ) $ 75,070
Adjusted for (items shown after-tax):
Unrealized mark-to-market loss (gain) on energy-related derivatives (a) 1,105 5,302 - - 6,407
Storage optimization program (b) 2,538 - - - 2,538
Reversal of prior period electric costs (d) - (1,229 ) - - (1,229 )
Non-GAAP operating earnings (loss) $ 79,018 $ 3,406 $ 1,201 $ (839 ) $ 82,786
GAAP diluted earnings (loss) per average common share (50,420 shares) $ 1.49 $ (0.01 ) $ 0.02 $ (0.01 ) $ 1.49
Per share effect of non-GAAP adjustments 0.08 0.08 - - 0.16
Non-GAAP operating earnings (loss) per share $ 1.57 $ 0.07 $ 0.02 $ (0.01 ) $ 1.65

Quarter Ended March 31, 2008
Design-Build
Regulated Retail Energy- Energy Other
(In thousands, except per share data) Utility Marketing Systems Activities* Consolidated
GAAP net income (loss) $ 77,972 $ 3,556 $ 251 $ (741 ) $ 81,038
Adjusted for (item shown after-tax):
Unrealized mark-to-market loss on energy-related derivatives (a) 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

Six Months Ended March 31, 2009
Design-Build
Regulated Retail Energy- Energy Other
(In thousands, except per share data) Utility Marketing Systems Activities* Consolidated
GAAP net income (loss) $ 129,092 $ (217 ) $ 2,033 $ (1,213 ) $ 129,695
Adjusted for (items shown after-tax):
Unrealized mark-to-market loss (gain) on energy-related derivatives (a) (5,188 ) 10,635 - - 5,447
Storage optimization program (b) 3,305 - - - 3,305
Reversal of reserve for natural gas costs (c) (2,781 ) - - - (2,781 )
Reversal of prior period electric costs (d) - (1,229 ) - - (1,229 )
Non-GAAP operating earnings (loss) $ 124,428 $ 9,189 $ 2,033 $ (1,213 ) $ 134,437
GAAP diluted earnings (loss) per average common share (50,309 shares) $ 2.57 $ - $ 0.04 $ (0.03 ) $ 2.58
Per share effect of non-GAAP adjustments (0.10 ) 0.19 - - 0.09
Non-GAAP operating earnings (loss) per share $ 2.47 $ 0.19 $ 0.04 $ (0.03 ) $ 2.67

Six Months Ended March 31, 2008
Design-Build
Regulated Retail Energy- Energy Other
(In thousands, except per share data) Utility Marketing Systems Activities* Consolidated
GAAP net income (loss) $ 122,174 $ 6,837 $ 524 $ (1,300 ) $ 128,235
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) 3,062 1,046 - - 4,108
Other regulatory adjustments (f) (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
* 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 2009
Quarterly Period Ended (g)
(In thousands, except per share data) Dec. 31 Mar. 31 Jun. 30 Sept. 30 Year-To-Date
GAAP net income $ 54,625 $ 75,070 $ 129,695
Adjusted for (items shown after-tax):
Unrealized mark-to-market gain on energy-related derivatives (a) (960 ) 6,407 5,447
Storage optimization program (b) 767 2,538 3,305
Reversal of reserve for natural gas costs (c) (2,781 ) - (2,781 )
Reversal of prior period electric costs (d) - (1,229 ) (1,229 )
Non-GAAP operating earnings $ 51,651 $ 82,786 $ - $ - $ 134,437
Diluted average common shares outstanding 50,208 50,420 50,309
GAAP diluted earnings per average common share $ 1.09 $ 1.49 $ 2.58
Per share effect of non-GAAP adjustments (0.06 ) 0.16 0.09
Non-GAAP operating earnings per share $ 1.03 $ 1.65 $ 2.67

Fiscal Year 2008
Quarterly Period Ended (g)
(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 (e) (1,139 ) - (1,139 )
Unrealized mark-to-market loss on energy-related derivatives (a) 2,613 1,495 4,108
Other regulatory adjustments (f) (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

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) Adjustments to shift the
timing of storage
optimization margins from
the periods recognized for
GAAP purposes to the
periods in which such
margins are recognized for
regulatory sharing
purposes. In addition,
lower-of-cost-or-market
adjustments related to
system and non-system
storage optimization are
eliminated for non-GAAP
reporting, since the
margins will be recognized
for regulatory purposes
when the withdrawals are
made at the unadjusted
historical cost of storage
inventory. These storage
optimization non-GAAP
adjustments which were
reported on multiple lines
in previous quarters have
been combined in this
report.

(c) In the quarter ended
December 31, 2008,
Washington Gas recorded a
$4.6 million reversal of a
reserve for disallowed gas
costs in Maryland and
recorded income of $4.6
million due to a February
5, 2009 Order issued by the
Public Service Commission
of Maryland. This Order
resolved a contingency
related to a proposed order
issued by a Hearing
Examiner of the PSC of MD
in fiscal year 2006.

(d) Represents a non-GAAP
adjustment to reverse a
prior period electric cost
adjustment during the
quarter ended March 31,
2009.

(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 March 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.

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 $ 2.43 $ 2.55
Adjusted for:
Unrealized mark-to-market loss (gain) on energy-related derivatives (a) 0.02 0.02
Storage optimization program (b) 0.06 0.06
Reversal of reserve for natural gas costs (c) (0.06 ) (0.06 )
Reversal of prior period electric costs (d) (0.02 ) (0.02 )
Non-GAAP Operating Earnings Per Share Guidance Range $ 2.43 $ 2.55

Regulated Utility Segment
Low High
GAAP Earnings Per Share Guidance Range $ 2.07 $ 2.13
Adjusted for:
Unrealized mark-to-market loss (gain) on energy-related derivatives (a) (0.07 ) (0.07 )
Storage optimization program (b) 0.06 0.06
Reversal of reserve for natural gas costs (c) (0.06 ) (0.06 )
Non-GAAP Operating Earnings Per Share Guidance Range $ 2.00 $ 2.06

Unregulated Business Segments
Low High
GAAP Earnings Per Share Guidance Range $ 0.36 $ 0.42
Adjusted for:
Unrealized mark-to-market gain on energy-related derivatives (a) 0.09 0.09
Reversal of prior period electric costs (d) (0.02 ) (0.02 )
Non-GAAP Operating Earnings Per Share Guidance Range $ 0.43 $ 0.49

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) Adjustments to shift the
timing of storage
optimization margins from
the periods recognized for
GAAP purposes to the
periods in which such
margins are recognized for
regulatory sharing
purposes. In addition,
lower-of-cost-or-market
adjustments related to
system and non-system
storage optimization are
eliminated for non-GAAP
reporting, since the
margins will be recognized
for regulatory purposes
when the withdrawals are
made at the unadjusted
historical cost of storage
inventory. These storage
optimization non-GAAP
adjustments which were
reported on multiple lines
in previous quarters have
been combined in this
report.

(c) In the quarter ended
December 31, 2008,
Washington Gas recorded a
$4.6 million reversal of a
reserve for disallowed gas
costs in Maryland and
recorded income of $4.6
million due to a February
5, 2009 Order issued by the
Public Service Commission
of Maryland. This Order
resolved a contingency
related to a proposed order
issued by a Hearing
Examiner of the PSC of MD
in fiscal year 2006.

(d) Represents a non-GAAP
adjustment to reverse a
prior period electric cost
adjustment during the
quarter ended March 31,
2009.

WGL Holdings, Inc.
News Media
Eric Grant, 202-624-6091
or
Financial Community
Robert Dennis, 202-624-6129

Copyright Business Wire 2009