Lower Electric Margins Weigh Earnings At WGL Retail Energy Marketing Segment

Low electric margins at WGL's retail energy marketing segment resulted in lower earnings at the segment for the quarter ending June 30, 2015 (third fiscal quarter).

WGL's retail energy marketing segment reported Adjusted EBIT of $16.3 million for the quarter, versus $18.7 million a year ago.

For the quarter, electric margins decreased by $1.2 million versus the year-ago, driven by higher capacity charges from PJM that impacted the timing of margin recognition.

Though executives said that natural gas margins remained strong, natural gas gross margin for the quarter did come in $200,000 lower than the year-ago quarter, driven by a decrease in portfolio optimization margins

WGL's retail energy marketing segment also reported $1 million in higher operating expense for the quarter ending June 30, 2016, due to an increase in commercial broker fees.

WGL Energy Services had 266,700 customers as of June 30, 2016, versus 273,800 as of March 31, 2016 and 288,300 a year ago, consistent with its previously reported strategy to focus on larger customers.

As a result, WGL Energy Services electric volumes during the quarter ending June 30, 2016 were higher at nearly 3,202 GWh, up from 2,893 GWh a year ago.

WGL Energy Services natural gas sales for the three months ending of June 30, 2016 were 144.3 million therms, versus 112.4 million therms a year ago