AGL Energy Limited 2011 Annual Report 29 Loy Yang Loy Yang is a brown coal-fi red  base load electricity generator  situated in Victoria’s Latrobe  Valley. Its output capacity is  2,200 MW. Investments ActewAGL Loy Yang A Power Station (Loy Yang) AGL holds a 50% interest in the  ActewAGL energy retail business,  a partnership between AGL and the  ACT government-owned enterprise,  Actew Corporation. AGL also owns  32.5% of the Loy Yang A Power Station  in the Latrobe Valley in Victoria. When it was established in 2000, ActewAGL was the first utility  joint venture in Australia between a listed public company and  a government owned enterprise. AGL holds a 50% interest in  ActewAGL’s retail business. The ActewAGL Retail partnership contributed earnings of $29.8  million for the year compared with $30.4 million the previous year.  Volumes of electricity and gas sold by ActewAGL increased this year.  The contribution to earnings was slightly lower this year because of  additional costs related to the acquisition of green certificates and  because the prior year result included a small profit from the sale  of an asset. Loy Yang also experienced increases in labour, and general  operating and maintenance costs, and an increase of 5.5% in  its interest expense. In September 2010, Loy Yang successfully  refinanced a $455 million tranche of senior bank debt and a $35  million working capital facility that were due to mature in November  2010. Both new facilities were refinanced for a term of 5 years, and  are due to mature in November 2015. The successful refinancing  followed the signing in March 2010 of a long-term Electricity Hedge  Agreement with Alcoa and its partners for approximately 820 MW  of load. The agreement commences in 2014, with the full load cover  in effect from 2016.  Loy Yang’s contribution to earnings was $10.7 million, well down on  the $45.1 million contribution in the previous year. The reduction  in its operating result was due largely to a combination of low  underlying electricity pool prices and a fall in generation output as  shown in the table below:  First  Half Year $/MWh Second  Half $/MWh Full  Year $/MWh Generation  Volume GWh FY2010 25.83 44.48 35.14 15,518 FY2011 21.97 32.32 27.09 15,174