WGES Sees Customer Growth, Higher Electric Margins

WGL Holdings' retail energy marketing segment reported higher non-GAAP operating earnings of $9.0 million for the quarter ended June 30, 2012 (third quarter of fiscal 2012), versus $7.7 million for the year-ago quarter.

For the quarter ended June 30, 2012, non-GAAP operating earnings reflect higher realized electric margins due to increased sales volumes resulting from customer growth and favorable price conditions (which led to higher unit margins) in the current period versus the same quarter of the prior year.

Realized natural gas margins were lower, primarily attributable to a less favorable pattern of margin recognition in the current quarter versus the same quarter of the prior year, partially offset by higher sales volumes. The pattern of margin recognition that the retail energy marketing segment realizes in a given quarter varies from year to year.

For the quarter ended June 30, 2012, the retail energy marketing segment reported GAAP net income of $19.7 million, versus $8.3 million a year ago.

As of June 30, 2012, Washington Gas Energy Services was serving 383,100 customers, up from 376,000 as of March 31, 2012, and 356,000 a year ago.

The growth of 7,100 customers since March 31, 2012 is up from the growth of 4,500 customers from December 31, 2011 to March 31, 2012.

WGES' electric customer count was 202,200 as of June 30, 2012, versus 197,000 as of March 31, 2012 and 183,900 a year ago.

WGES' natural gas customer count was 180,900 as of June 30, 2012, versus 179,000 as of March 31, 2012 and 172,100 a year ago.

Electric volumes at WGES for the quarter ending June 30, 2012 were 2,991 GWh, versus 2,688 GWh a year ago. Gas volumes at WGES were 96.8 million therms for the quarter, versus 91.3 million therms a year ago