Lower Unit Margins Weigh Earnings at WGL Holdings Retail Marketing Segment

WGL Holdings, Inc.'s retail energy marketing reported adjusted EBIT of $5.2 million for the quarter ended December 31, 2015, versus adjusted EBIT of $9.0 million for the same quarter of the prior fiscal year

The decline primarily reflects lower electric margins due to higher capacity charges from the regional power grid operator (PJM) and lower unit margins on large commercial customer sales. Partially offsetting these declines were higher natural gas margins due to favorable gas supply and pricing opportunities and higher weather hedge payments

WGL Energy Services' customer count as of December 31, 2015 was 276,300, versus 281,800 as of September 30, 2015, and 310,000 a year ago.

The net decline of 5,500 customers from September 30, 2015 to December 31, 2015 compares to a decline of 6,500 accounts during the three months ended September 30, 2015. WGL Energy Services previously disclosed a change in strategy to focus on larger C&I customers which has contributed to the customer count decline

As of December 31, 2015, WGL Energy was serving 141,300 natural gas customers and 135,000 electric customers.

WGL Energy Services electric sales for the three months ending December 31, 2015 were 2,926 GWh, versus 2,668 GWh a year ago

WGL Energy Services natural gas sales for the three months ending December 31, 2015 were 189 million therms, versus 201 million therms a year ago