Volume 15, Issue 52 | February 12, 2018

WGL Energy Promotes Trust through BBB Accreditation

Our commitment to Energy Answers is built on transparency and integrity in the marketplace

 

As a BBB (Better Business Bureau) Accredited Business, WGL Energy (WGL Energy Services and Systems, Inc.) is dedicated to promoting trust in the marketplace by adhering to the BBB Standards for Trust.

The BBB Standards for Trust are eight principles that summarize important elements of creating and maintaining trust in business. The eight principles focus on establishing and maintaining a positive track record in the marketplace, honest advertising, true representation of products and services, transparency of policies and procedures, abide by written agreements and verbal representations, address marketplace disputes quickly, safeguard privacy and integrity.

 

 “Our BBB Accreditation gives our customers confidence

in our commitment to maintaining high ethical standards of conduct."

                    Rob Simpson, Manager, WGL Energy Customer Care

 

BBB Accredited Businesses must also follow the BBB’s Code of Business Practices (Accreditation Standards), a comprehensive set of policies, procedures and best practices for representing trustworthiness in the marketplace. The code is built on the BBB Standards for Trust.

WGL Energy is proud to serve the District of Columbia, Delaware, Maryland, Pennsylvania and Virginia as a BBB Accredited Business since 2012.

Visit our BBB Accredited Business Profile for more information.


Editor's Note

Prices Soften

Weekly review for February 4 February 10, 2018

 

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, February 2, 2018 was 2,078 BCF. This is a decrease of 119 BCF from the previous week. Inventories are currently 503 BCF lower than last year at this time and 393 BCF below the 5-year average of 2,471 BCF.

Current forecasts are predicting temperatures to be at or above normal for the next several weeks. This trend should continue to soften prices as we approach the end of the winter season.

Near-term prices have retraced quite a bit from the YTD highs we saw in the second half of January, and we have also seen some modest retracement occurring in the Cal19-21 period. This week, the PJM West Hub 12-month forward curve decreased 1.3% and the NYMEX natural gas 12-month curve fell 3.4%.      

 

This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.


Investor Relations

WGL Holdings, Inc. Reports First Quarter Fiscal Year 2018 Financial Results

 

The following is an excerpt of a February 7, 2018, press release issued by WGL Holdings, Inc., disclosing the company’s first quarter results. Please visit the WGL Holdings, Inc. website to view the full press release.

WGL Holdings, Inc. (NYSE: WGL), the parent company of Washington Gas Light Company (Washington Gas) and other energy-related subsidiaries, today reported net income applicable to common stock determined in accordance with generally accepted accounting principles in the United States of America (GAAP) for the quarter ended December 31, 2017, of $138.0 million, or $2.68 per share, an improvement of $80.0 million, or $1.55 per share, over net income applicable to common stock of $58.0 million, or $1.13 per share, reported for the quarter ended December 31, 2016.

Our GAAP net income for the three months ended December 31, 2017 reflects an income tax benefit driven by the recently enacted Tax Cuts and Jobs Act, which, among other effects, reduced the corporate tax rate from 35% to 21%. As a result, we have remeasured our accumulated deferred income tax assets and liabilities, reducing the total net liability by $476.4 million. Of the total reduction, we recognized a $52.9 million income tax benefit (net) in GAAP net income primarily related to non-utility operations and recorded the remaining amount, $423.5 million to regulatory assets and liabilities. Non-GAAP operating earnings (as described below) for the quarter have been adjusted to eliminate the re-measurement impact of the legislation; however, both GAAP and non-GAAP earnings continue to benefit from the year-to-year reduction in the corporate tax rate. Amounts recorded as regulatory assets and liabilities will be amortized, which along with the prospective reduction in the provision for income tax expense, WGL estimates will result in a net reduction in annual costs to customers of approximately $39.5 million. Washington Gas plans to pass these annual tax savings on to customers through reduced rates beginning in the second quarter of WGL's 2018 fiscal year, subject to regulatory commission approvals.

On a consolidated basis, WGL uses non-GAAP operating earnings (loss) to evaluate overall financial performance, and evaluates segment financial performance based on earnings before interest and taxes (EBIT) and adjusted EBIT. Operating earnings (loss) and adjusted EBIT are non-GAAP financial measures, which are not recognized in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. Both non-GAAP operating earnings (loss) and adjusted EBIT adjust for the accounting recognition of certain transactions that we believe are not representative of the ongoing earnings of the company. Additionally, we believe that adjusted EBIT enhances the ability to evaluate segment performance because it excludes interest and income tax expense, which are affected by corporate-wide strategies such as capital financing and tax sharing allocations. Refer to “Reconciliation of Non-GAAP Financial Measures,” attached to this news release, for a more detailed discussion of management’s use of these measures and for reconciliations to GAAP financial measures.

For the quarter ended December 31, 2017, operating earnings were $94.9 million, or $1.84 per share, an improvement of $35.5 million, or $0.69 per share, over operating earnings of $59.4 million, or $1.15 per share, for the same quarter of the prior fiscal year.

View source version on businesswire.com:  https://www.businesswire.com/news/home/20180207006129/en/


Upcoming Events

Presidents' Day Holiday

Your next issue of Energy Update arrives Monday, February 26

 

The Presidents' Day holiday falls on Monday, February 19, this year. Energy Update will not be published next Monday, due to the long holiday weekend.

Your next issue of Energy Update will arrive in your inbox on Monday, February 26.


Weather

Local Heating Degree Days*

 

 

 


Heating Degrees Day** 

 

Nov - 17

Dec - 17

Jan - 18

Feb - 18

Mar - 18

Apr - 18

 Actual

456

792

900

 Normal

466

786

899

 Departure from Normal

2%

.7%

.1%

 Warmer

Colder

Colder

**Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day's average temperature is less than 65 degrees, subtract the average temperature from 65 to find the number of heating degree days for that day.