Washington Gas and Honeywell Awarded Contract to Design and Build Major Power Facility for GSA

Cogeneration Plant Will Increase Energy Security and Reduce Greenhouse Gas Emissions at New Department of Homeland Security Campus

WASHINGTON & MINNEAPOLIS--(BUSINESS WIRE)--Washington Gas (NYSE:WGL) and Honeywell (NYSE:HON) have been selected by the U.S. General Services Administration (GSA) to jointly design, install and maintain a central utility and cogeneration plant and distribution system at St. Elizabeths West Campus in Washington, D.C. The plant will meet up to 30 percent of the peak energy demand for the campus, which will serve as the U.S. Department of Homeland Security (DHS) headquarters as well as its agencies: the U.S. Coast Guard; Federal Emergency Management Agency; Immigration and Customs Enforcement; Customs and Border Protection and Transportation Security Administration. As a result, it will improve energy security, minimize stress on the local electrical grid and reduce greenhouse gas emissions.

“By ensuring stable delivery of energy to the new campus, this project will allow the Department of Homeland Security and its agencies to focus more resources into fulfilling their missions to keep our country safe and secure.”

The central plant will give GSA the flexibility to support the energy needs of DHS through onsite generation that will deliver nearly 25 megawatts of electricity for the 4.5-million-square-foot campus that is scheduled to be completed by 2016. The plant and distribution systems will provide thermal utilities; chilled and hot water; electrical services; and normal and emergency power for DHS and its agencies.

“It is our intent to make the DHS headquarters a showcase of energy efficiency and sustainability,” said Harry Debes, GSA Project Executive for St. Elizabeths. “The cogeneration plant is a key feature in helping achieve this goal. It will also allow DHS to produce power and keep key facilities and equipment running independently of the local grid, providing the campus a measure of energy security.”

The project will have a positive environmental impact because onsite power generation is more clean and efficient than traditional sources. Compared to buying all the electricity from the grid, the new plant is expected to reduce emissions by more than 50,000 metric tons of carbon dioxide equivalent. According to figures from the U.S. Environmental Protection Agency (EPA), this is comparable to removing nearly 10,000 cars from the road.

GSA selected Washington Gas and Honeywell after a competitive evaluation in accordance with the Utility Energy Services Contract (UESC) process and the American Recovery and Reinvestment Act of 2009 requirements. Washington Gas has previously partnered with federal agencies in the Mid-Atlantic region to quickly and cost-effectively design and implement UESC projects focusing on energy efficiency, water conservation, renewable energy and improving aging utility and HVAC infrastructures.

“We are honored and extremely pleased to have been chosen by GSA to support this historically significant project at St. Elizabeths West Campus,” said Gautam Chandra, Vice President of WGL Holdings, Inc. and Washington Gas. “We look forward to a long and fruitful relationship with GSA and the Department of Homeland Security as we design and build this central utility and cogeneration plant.”

As a global energy services leader, Honeywell has provided strategic solutions to the federal government — the largest energy user in the United States — for nearly 30 years, including a recent central utility plant project for the GSA at the White Oak office and research campus that is expected to cut energy costs by more than $5 million per year. The company has also completed more than 150 energy retrofit projects at federal sites.

“The central plant at St. Elizabeths will help the GSA strengthen its energy independence and reduce greenhouse gas emissions through cogeneration,” said Paul Orzeske, President of Honeywell Building Solutions. “By ensuring stable delivery of energy to the new campus, this project will allow the Department of Homeland Security and its agencies to focus more resources into fulfilling their missions to keep our country safe and secure.”

About Washington Gas

Headquartered in Washington, D.C., Washington Gas is a wholly-owned subsidiary of WGL Holdings, Inc. (NYSE: WGL). The parent company holds a group of energy-related retail businesses that focus primarily on retail energy-marketing and commercial heating, ventilating and air conditioning services. Additional information about WGL Holdings is available on its Web site, http://www.wglholdings.com/. Go to http://www.washingtongas.com/ for more information about Washington Gas Light Co.

About Honeywell

Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions, access www.honeywell.com/buildingsolutions.

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.

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