Current Report

EXHIBIT 99.1

		News Release

FOR IMMEDIATE RELEASE		CONTACTS:
February 4, 2008
		News Media
		Eric Grant       (202) 624-6091
		Financial Community
		Melissa E. Adams       (202) 624-6410

WGL Holdings, Inc. Reports Increased First Quarter Fiscal Year 2008 Earnings
and Raises Earnings Guidance

	•		Consolidated GAAP earnings up — $0.95 per share vs. $0.92 per share for the comparative quarter.
	•		Consolidated non-GAAP operating earnings up — $0.96 per share vs. $0.90 per share for the comparative quarter reflecting improvements in regulated and non-regulated businesses
	•		New utility rates effective in Maryland and the District of Columbia
	•		Increased fiscal year 2008 non-GAAP operating earnings guidance range — $2.35 to $2.45 per share

Consolidated Results

WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported net income determined in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) for the quarter ended December 31, 2007 of $47.2 million, or $0.95 per share, an increase of $2.1 million, or $0.03 per share, over net income of $45.1 million, or $0.92 per share, reported for the first quarter of fiscal year 2007.

“These excellent results for the first fiscal quarter underscore our progress in achieving a number of strategic objectives and reinforce our outlook for an excellent year,” said James H. DeGraffenreidt, Jr., chairman and chief executive officer of WGL Holdings. “Successful regulatory outcomes, the expansion of our asset management program, continued customer growth and improved unregulated results will continue to drive fiscal year 2008 earnings growth.”

Financial performance is evaluated based on non-GAAP operating earnings (loss) per share. Non-GAAP operating earnings (loss) per share excludes the effects of: (i) warmer-than-normal/colder-than-normal weather for our regulated utility segment; (ii) certain unusual transactions and (iii) unrealized mark-to-market gains (losses) on energy-related derivatives. Refer to “Use of Non-GAAP Operating Earnings (Loss) Per Share” and supporting reconciliations attached to this news release for a detailed discussion of management’s use of this non-GAAP financial measure, as well as reconciliations of earnings per share determined in accordance with GAAP to non-GAAP operating earnings (loss) per share for both our consolidated and segment results.

For the first quarter of fiscal year 2008, our non-GAAP operating earnings were $0.96 per share, an increase of $0.06 per share over non-GAAP operating earnings of $0.90 per share for the same quarter of the prior fiscal year.

First Quarter Results by Business Segment

Regulated Utility Segment

Our regulated utility segment reported net income determined in accordance with GAAP of $44.2 million, or $0.89 per share, for the first quarter fiscal year 2008, an increase of $1.2 million, or $0.01 per share over net income of $43.0 million, or $0.88 per share for the same quarter of the preceding fiscal year. For the first quarter of fiscal year 2008, non-GAAP operating earnings for the regulated utility segment were $0.88 per share, an increase of $0.05 per share, over non-GAAP operating earnings of $0.83 for the same period of the prior fiscal year. The increase in non-GAAP operating earnings is primarily due to: (i) the implementation of new rates in Virginia on February 13, 2007, in Maryland on November 27, 2007 and in the District of Columbia on December 31, 2007; (ii) an increase in realized margins from our asset management program; (iii) an increase in customer usage primarily due to a shift in weather patterns and (iv) the addition of over 12,300 active customer meters since December 31, 2006. Partially offsetting the increase in non-GAAP operating earnings were: (i) higher uncollectible accounts expense primarily due to an adjustment to the accumulated reserve made in the prior period to reflect better collections; (ii) transition related expenses for our business process outsourcing program and (iii) higher property taxes in Virginia.

Retail Energy-Marketing Segment

The retail energy-marketing segment reported net income determined in accordance with GAAP of $3.3 million, or $0.07 per share, for the quarter ended December 31, 2007, an increase of $605,000, or $0.02 per share, over net income of $2.7 million, or $0.05 per share, reported for the same quarter of fiscal year 2007. Non-GAAP operating earnings for the retail energy-marketing segment were $0.09 per share for the first quarter ended December 31, 2007, a $0.01 per share improvement over $0.08

per share for the same quarter of prior fiscal year. The year-over-year improvement in non-GAAP operating earnings reflects higher margins per therm sold for natural gas and lower interest expense. Partially offsetting these improvements were higher operating expenses.

Earnings Outlook

We are raising our GAAP earnings estimate for the full fiscal year 2008 to a range of $2.30 to $2.40 per share. This estimate includes projected full fiscal year 2008 earnings from our regulated utility segment in a range of $1.99 per share to $2.05 per share and projected full fiscal year 2008 earnings from our unregulated business segments in a range of $0.31 per share to $0.35 per share.

We are also raising our consolidated earnings estimate for the full fiscal year 2008 based on non-GAAP operating earnings to a range of $2.35 per share to $2.45 per share. This estimate includes projected full fiscal year 2008 non-GAAP operating earnings from our regulated utility segment in a range of $1.97 per share to $2.03 per share, and projected full fiscal year 2008 non-GAAP operating earnings from our unregulated business segments in a range of $0.38 per share to $0.42 per share. Refer to the “Reconciliation of GAAP Earnings Guidance to Non-GAAP Earnings Guidance” attached to this press release for a reconciliation of our GAAP earnings estimate to our estimate based on non-GAAP operating earnings per share.

We assume no obligation to update this guidance. The absence of any statement by us in the future should not be presumed to represent an affirmation of this earnings guidance. For the assumptions underlying this guidance, please refer to the slides accompanying our Webcast that will be posted to the WGL Holdings Web site, www.wglholdings.com .

Other Information

We will hold a conference call at 10:30 a.m. Eastern time on February 5, 2008, to discuss our first quarter financial results. The live conference call will be available to the public via a link located on the WGL Holdings Web site, www.wglholdings.com . To hear the live Webcast, click on the “Webcast” link located on the home page of the referenced site. The Webcast and related slides will be archived on the WGL Holdings Web site through March 4, 2008.

Headquartered in Washington, D.C., WGL Holdings has three operating segments: (i) the regulated utility segment which primarily consists of Washington Gas, a natural gas utility that serves over one million customers throughout metropolitan Washington, D.C., and the surrounding region; (ii) the retail-energy marketing segment which consists of Washington Gas Energy Services, Inc., a third-party

marketer that competitively sells natural gas and electricity and (iii) the heating, ventilating and air conditioning (HVAC) segment, which consists of Washington Gas Energy Systems, Inc., a provider of design-build energy efficiency solutions to government and commercial clients. Additional information about WGL Holdings is available on our Web site.

Unless otherwise noted, earnings per share amounts are presented on a diluted basis, and are based on weighted average common and common equivalent shares outstanding.

Please see the attached comparative statements for additional information on our operating results. Also attached to this news release are reconciliations of earnings per share determined in accordance with GAAP to non-GAAP operating earnings (loss) per share for both our consolidated and segment results as well as reconciliations of our GAAP earnings guidance to our non-GAAP earnings guidance.

Forward-Looking Statements

This news release and other statements by us include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the outlook for earnings, revenues and other future financial business performance or strategies and expectations. Forward-looking statements are typically identified by words such as, but not limited to, “estimates,” “expects,” “anticipates,” “intends,” “believes,” “plans,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” and “could.” Although we believe such forward-looking statements are based on reasonable assumptions, we cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and we assume no duty to update them. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, general economic conditions and the factors discussed under the “Risk Factors” heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission.

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
(In thousands of therms)		2007				2006				2007				2006
Gas Sales and Deliveries
Gas Sold and Delivered Residential - Firm			198,982				182,784				664,899				559,548
Commercial and Industrial - Firm			62,633				57,729				208,866				194,172
Commercial and Industrial - Interruptible			1,847				1,868				5,254				6,377
			263,462				242,381				879,019				760,097
Gas Delivered for Others
Firm			134,108				124,093				443,435				392,642
Interruptible			74,341				76,793				264,853				255,002
Electric Generation			20,269				10,111				122,108				102,506
			228,718				210,997				830,396				750,150
Total			492,180				453,378				1,709,415				1,510,247
WASHINGTON GAS ENERGY SERVICES
Natural Gas Sales
Therm Sales (thousands of therms)			196,474				204,612				717,327				677,831
Number of Customers (end of period)			140,700				142,000				140,700				142,000
Electricity Sales
Electricity Sales (thousands of kWhs)			899,469				899,729				3,943,584				2,819,765
Number of Accounts (end of period)			67,100				66,700				67,100				66,700
UTILITY GAS PURCHASED EXPENSE
(excluding off system)			98.83	¢			104.09	¢			100.07	¢			114.18	¢
HEATING DEGREE DAYS
Actual			1,241				1,308				3,888				3,519
Normal			1,356				1,364				3,807				3,809
Percent Colder (Warmer) than Normal			(8.5	)%			(4.1	)%			2.1	%			(7.6	)%
Number of Active Customer Meters (end of period)			1,057,882				1,045,572				1,057,882				1,045,572

WGL HOLDINGS, INC.
USE OF NON-GAAP OPERATING EARNINGS (LOSS) PER SHARE
(Unaudited)

The attached reconciliations are provided to clearly identify adjustments made to diluted earnings (loss) per average common share calculated in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) to derive non-GAAP operating earnings (loss) per share. Management believes non-GAAP operating earnings (loss) per share provides a more meaningful representation of our earnings from ongoing operations by excluding the effects of: (i) warmer-than-normal/colder-than-normal weather; (ii) certain unusual transactions and (iii) unrealized mark-to-market gains and losses from energy-related derivatives. This presentation facilitates analysis by providing a consistent and comparable measure to help management, investors and analysts better understand and evaluate our operating results and performance trends. Additionally, we use this non-GAAP measure to report to the board of directors, evaluate management’s performance and for incentive compensation purposes.

We exclude from non-GAAP operating earnings (loss) per share the effects of warmer-than-normal/colder-than-normal weather to “normalize” weather. Utilization of normal weather is an industry standard, and it is our practice to evaluate our rate-regulated revenues by utilizing normal weather and to provide estimates and guidance on the basis of normal weather. Additionally, we exclude unrealized mark-to-market adjustments for our energy-related derivatives to provide a more transparent and accurate view of the ongoing financial results of our operations. When these derivatives settle, the economic impact is reflected in our non-GAAP operating results, as we are only removing the interim unrealized mark-to-market amounts which are ultimately reversed when the derivatives are settled. These non-GAAP adjustments also assist both management and investors in analyzing period-to-period comparisons.

There are limits in using non-GAAP operating earnings (loss) per share to analyze our results, as it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. In addition, using non-GAAP operating earnings (loss) per share to analyze our earnings may have limited value as it excludes certain items that may have a material impact on our reported financial results. We compensate for these limitations by providing investors with the attached reconciliations to diluted earnings (loss) per average common share, the most directly comparable GAAP financial measure.

Footnotes:
(a)		Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These costs were recorded to a regulatory asset in the first quarter of fiscal year 2008 upon approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order.
(b)		Represents the change in the unrealized mark-to-market positions of our energy-related derivatives that were recorded to income during the period. For the regulated utility segment, to the extent that our unrealized mark-to-market gains and losses are not shared with customers, these amounts are recorded directly to income. All unrealized mark-to-market gains and losses for the retail-energy marketing segment are recorded directly to income.
(c)		Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia.
(d)		Represents an adjustment that reduced depreciation expense applicable to the period from January 1, 2006, through September 30, 2006. This adjustment was recorded in the first quarter of fiscal year 2007 upon approval of new depreciation rates by the staff of the Virginia State Corporation Commission.

Footnotes:
(a)		Represents the reversal of expenses that were incurred in prior fiscal years for initial implementation costs allocable to the District of Columbia associated with our business process outsourcing plan. These expenses were reversed in the first quarter of fiscal year 2008 due to the approval of 10-year amortization accounting by the District of Columbia Public Service Commission in a December 28, 2007 Final Order.
(b)		Represents the estimated reversal of certain of our existing unrealized mark-to-market positions related to our energy derivatives that will be recorded to income during fiscal year 2008. For the regulated utility segment, to the extent that our unrealized mark-to-market gains and losses are not shared with customers, these amounts are recorded directly to income. All unrealized mark-to-market gains and losses for the retail-energy marketing segment are recorded directly to income.
(c)		Represents favorable regulatory adjustments made during the first quarter of fiscal year 2008 applicable to prior fiscal years due to revised treatment for hexane costs in Maryland and certain shared revenues in the District of Columbia.