Profile: WGL Holdings, Inc. (WGL)

WGL Holdings, Inc. (WGL Holdings) is a holding company, which through its subsidiaries, sells and delivers natural gas and provides a variety of energy-related products and services to customers primarily in the District of Columbia and the surrounding metropolitan areas in Maryland and Virginia. It has three operating segments: regulated utility segment, retail energy-marketing segment and design-build energy systems segment. The Company’s subsidiaries include Washington Gas Light Company (Washington Gas), Washington Gas Resources Corporation (Washington Gas Resources), Hampshire Gas Company (Hampshire) and Crab Run Gas Company (Crab Run).

Regulated Utility Segment

The regulated utility segment consists of Washington Gas and Hampshire. Washington Gas, a wholly owned subsidiary of WGL Holdings, is regulated by the Public Service Commission of the District of Columbia (PSC of DC), the Public Service Commission of Maryland (PSC of MD) and the State Corporation Commission of Virginia (SCC of VA). Hampshire, a wholly owned subsidiary of WGL Holdings, is regulated by the Federal Energy Regulatory Commission (FERC). Hampshire operates and owns full and partial interests in underground natural gas storage facilities, including pipeline delivery facilities located in and around Hampshire County, West Virginia. Washington Gas purchases all of the storage services of Hampshire and includes the cost of these services in the bills sent to its customers.

Hampshire operates under a pass-through cost of service-based tariff approved by the FERC, and adjusts its billing rates to Washington Gas on a periodic basis to account for changes in its investment in utility plant and expenses. The regulated utility segment consists of approximately 91% of the Company’s total assets. As of September 30, 2009, Washington Gas had 1.064 million active customer meters and over two million households and commercial structures. Washington Gas obtains natural gas supplies that originate from the Gulf Coast Region, the Appalachian and Canadian regions, as well as natural gas in the form of vaporized liquefied natural gas (LNG) through the Cove Point LNG terminal.

Retail Energy-Marketing Segment

The retail energy-marketing segment consists of the operations of Washington Gas Energy Systems, Inc. (WGEServices), which sells the natural gas and electric commodity directly to residential, commercial and industrial customers in Maryland, Virginia, Delaware and the District of Columbia. These commodities are delivered to retail customers through the distribution systems owned by regulated utilities, such as Washington Gas or other unaffiliated natural gas or electric utilities. Additionally, WGEServices bills its customers through the billing services of the regulated utilities that deliver its commodities, as well as directly through its own billing capabilities.

During the fiscal year ended September 30, 2009 (fiscal 2009), WGEServices contracted for and completed the construction of one Solar Photovoltaic (Solar PV) facility, which includes ownership of the operational asset, and has contracted for two additional facilities. During fiscal 2009, WGEServices served approximately 151,000 residential, commercial and industrial natural gas customers and approximately 113,000 residential, commercial and industrial electricity customers located in Maryland, Virginia, Delaware and the District of Columbia. WGEServices purchases its natural gas from a number of wholesale suppliers, which are delivered to WGEServices’ market territories through several interstate natural gas pipelines.

Design-Build Energy Systems Segment

The design-build energy systems segment, which consists of the operations of WGESystems, provides design-build energy sustainable solutions to governmental and commercial clients. WGESystems focuses on upgrading the mechanical, electrical, water and energy-related systems of governmental and commercial facilities by implementing both traditional, as well as alternative energy technologies, primarily in the District of Columbia, Maryland and Virginia. During fiscal 2009, the design-build energy systems segment derived approximately 80% of its revenues from various agencies of the Federal Government.