1103601--11/27/2007--WASHINGTON_GAS_LIGHT

related topics

{gas, price, oil}

{operation, natural, condition}

{capital, credit, financial}

{loss, insurance, financial}

{customer, product, revenue}

{condition, economic, financial}

WGL Holdings, Inc. Washington Gas Light Company Washington Gas needs to acquire additional capacity to deliver natural gas on the coldest days of the year and it may not receive the necessary authorizations to do so in a timely manner. Operating issues could affect public safety and the reliability of Washington Gas s natural gas distribution system which could adversely affect Washington Gas s results of operations, financial condition and cash flows. The receipt of additional amounts of gas from the Dominion Cove Point LNG terminal into Washington Gas s natural gas distribution system may result in higher operating expenses and capital expenditures which may have a material adverse effect on its financial condition, results of operations and cash flows. Changes in the relative prices of alternative forms of energy may strengthen or weaken the competitive position of Washington Gas s natural gas delivery service. If the competitive position of natural gas service weakens, it may reduce the number of natural gas customers in the future and negatively affect Washington Gas s future cash flows and net income. WGL Holdings, Inc. Washington Gas Light Company A decline in the economy or significant increases in interest rates may reduce revenues or increase costs. Washington Gas s inability to access capital or to access capital cost effectively may adversely affect its business. A downgrade in Washington Gas s credit ratings could increase its borrowing costs. Washington Gas s risk management strategies and related hedging activities may not be effective in managing its risks, and may result in additional liability for which rate recovery may be disallowed and cause increased volatility in its earnings. Washington Gas will incur significant initial implementation costs in connection with the outsourcing of a portion of its business functions. If it is unable to recover these costs, this could have an adverse effect on Washington Gas s financial condition, results of operations and cash flows. Washington Gas s facilities and operations could be targets of acts of terrorism. WASHINGTON GAS ENERGY SERVICES, INC. WGEServices business, earnings and cash requirements are highly weather sensitive and seasonal.

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1103601--11/27/2007--WASHINGTON_GAS_LIGHT_CO