Customer Growth Continues at WGES

WGL Holdings' retail energy marketing segment reported operating earnings of $5.3 million for the quarter ended March 31, 2012, compared to $8.0 million in the year-ago quarter.

For the quarter ended March 31, 2012, non-GAAP operating earnings reflect lower realized natural gas margins primarily attributed to lower margins on portfolio optimization activities, lower retail sales volumes resulting from warm weather, and a less favorable pattern of margin recognition in the current quarter versus the same quarter of the prior year. Realized electric margins were higher due to favorable price conditions, higher sales volumes due to customer growth, and a more favorable pattern of margin recognition in the current period versus the same quarter of the prior year. Operating expenses in the current quarter increased primarily due to higher customer acquisition and customer service costs.

GAAP earnings for the retail energy marketing segment were $4.5 million for the quarter ended March 31, 2012, versus $9.7 million a year ago.

Washington Gas Energy Services continued to record customer growth during the quarter ended March 31, 2012.

As of March 31, 2012, WGES was serving 376,000 customers, versus 371,500 as of December 31, 2011 and 357,100 a year ago.

The net increase of 4,500 customers versus December 31, 2011 compares to growth of 16,800 customers from September 30, 2011 to December 31, 2011.

As of March 31, 2012, WGES was serving 197,000 electric customers, versus 194,400 as of December 31, 2011 and 183,700 a year ago.

WGES' natural gas customers as of March 31, 2012 numbered 179,000 versus 177,100 as of December 31, 2011 and 173,400 a year ago.

Electric volumes at WGES for the quarter ending March 31, 2012 were 2,896 GWh, versus 2,611 GWh a year ago. Gas volumes at WGES were 249.6 million therms for the quarter, versus 302.4 million therms a year ago.