1. Washington Gas Winter Preparedness Paul S. Buckley - Director, Rates & Reg Affairs Nimmie S. Hickman - Manager, Gas Planning September 22, 2004

2.  Energy Insights  Energy Issues  Gas prices and bill projections  Payment options  Energy efficiency tips  Energy assistance programs  Customer choice program Special Publications for Winter

3. Web Site Information  Energy Insights  Energy Issues  Energy Efficiency Video  Washington Area Fuel Fund  Natural Gas Appliance Safety Information  Customer Choice Comparison Data www.washingtongas.com Click on “Energy Information”

4. Bill Assistance Programs  Founded by Washington Gas in 1983  Administered by The Salvation Army  Washington Gas pays all administrative costs  Disbursements made January-May  Nearly 177,000 people have been assisted Washington Area Fuel Fund Celebrating 20 Years

5. Residential Essential Services Pilot Program > The 2004-2005 will be the first full year of activity under the Pilot Program. > For the partial winter of 2003-2004, the Pilot Program produced: 2,190 RES credit recipients $134,626 of RES credit payments > WGL to “absorb” the initial $50,000 in RES credit payments. > Remainder of RES credit payments recovered from all distribution customers.

6. 2004-2005 Winter Bill Projection > Winter 2003 - 04 average residential bill 790 therms - actual $896 for the winter season > Projected Winter 2004-05 average residential bill 738 therms - weather normalized Estimated $902 for the winter season 0.7% increase over 2003-04 winter season

7. Design Day Estimate

8. Daily Load Variability

9. Hedging Strategies Storage is a Natural Hedge  Injected at the average of summer prices Vary Options for Hedging Instruments  Fixed Cost contracts, Caps, and Costless Collars Vary Timing of Hedging Instruments  Break-up hedging volumes over several summer months

10. Hedging in 2004

11. Hedging in 2005

12. Thank you ©2004 WGL Holdings, Inc.