Washington Gas Energy Services Sees Lower Earnings, Customer Count

WGL Holdings' retail energy-marketing segment reported a non-GAAP operating loss of $3.7 million for the quarter ended March 31, 2014, compared to non-GAAP operating earnings of $11.6 million for the same quarter of the prior fiscal year.

The operating loss in the current-year quarter reflects lower realized electric margins due to extreme price movements on commodity prices and higher capacity and ancillary charges from the regional power grid operator (PJM). The price movements were primarily the result of colder than normal weather that occurred throughout January 2014.

Partially offsetting the electric margins were higher natural gas margins. Natural gas realized margins increased due to higher margins on portfolio optimization activity, spot sales to interruptible customers and hedge settlements.

On a GAAP basis, the retail energy-marketing segment reported net income of $0.1 million for the quarter ended March 31, 2014, compared to net income of $21.7 million in the year-ago quarter.

Washington Gas Energy Services saw its customer count decline by 11,000 customers from December 31, 2013 to March 31, 2014.

WGES's total customer count was 346,000 as of March 31, 2014, versus 357,000 as of December 31, 2013 and 354,000 a year ago.

WGES's electric customer count was 181,000 as of March 31, 2014, versus 189,000 as of December 31, 2013 and 183,000 a year ago.

WGES's natural gas customer count was 165,000 as of March 31, 2014, versus 168,000 as of December 31, 2013 and 171,000 a year ago.

Electric volumes at WGES for the three months ended March 31, 2014 were 3,052 GWh, versus 3,045 GWh a year ago.

Natural gas volumes at WGES for the three months ended March 31, 2014 were 309 million therms, versus 320 million therms a year ago.