Washington Energy Company is a holding company whose principal subsidiary operates in the retail distribution of natural gas. The company, through other subsidiaries, markets natural gas appliances, including furnaces and water heaters, monitored security systems and energy efficiency window and siding products for the home; holds an equity position in a publicly traded oil and gas exploration and production company; and holds certain coal-related investments. Washington Natural Gas Company, the largest gas utility in the Pacific Northwest, serves the growing Puget Sound region, which includes Washington state's largest city, its capital, more than half its population and the majority of its commerce and industry. Natural gas distribution accounted for 94% of fiscal 1996 revenues; and merchandise & other, 6%.