28 Merchant  Energy Review of  Operations coal fired Loy Yang A power station, AGL’s  ownership interest in which increased from  32.54% to 100% in June 2012. AGL now  has full operational control of the asset. This year, Business Customers (previously  known as Commercial and Industrial) has  been included in the Merchant Energy  business. In previous years, it was included in  Retail Energy. This improves alignment with  other parts of Merchant Energy, particularly  in relation to wholesale cost management. AGL also operates and controls 509 MW  of wind generation in South Australia  and Victoria. The 52.5 MW Hallett 5 and  67 MW Oaklands Hill Wind Farms are  new additions to the portfolio following  their commissioning in March this year. Energy Services resides within the Business  Customers Division and enables AGL to  provide energy management solutions to its  commercial and industrial customer base. These services include: Business Customers’ role is to sell electricity,  gas and other energy services to AGL’s large  commercial and industrial customers.  During the year, the group consolidated  numerous billing and customer relationship  management systems into the existing  SAP platform used by Retail Energy. The  expected benefits of this project are being  realised, particularly in relation to improved  cash flow. Merchant Operations is largely a cost  centre. All generation revenue and variable  operating expenditure is included in the  results for Energy Portfolio Management.  Merchant Operations costs increased by  approximately $4 million this year due to  the effect of additional new plant coming  on line. This includes Hallett 5 and Oaklands  Hill Wind Farms.  Merchant Operations’ primary objective is  to make sure that AGL’s generation assets  are available when required, particularly  during periods of peak customer demand.  Performance is assessed by measuring the  commercial availability and start reliability  of generation assets. All generator units  at the Torrens Island Power Station were  available to operate almost 100% of the  time. Start reliability at the Somerton Power  Station was above 97% and AGL’s hydro  assets were approximately 99%. These high levels of operating performance  meet or exceed international benchmarks  of good performance, reflecting the quality  of AGL’s asset management program. As  an example, a major four year project at  Torrens Island Power Station to upgrade the  generator control systems was completed  this year.  High rainfall throughout the year has  resulted in improved water storage levels.  These storage levels mean that Eildon  Power Station can continue to generate at  its full capacity of 120 MW, and Dartmouth  has increased its generating capacity from  135 MW to 163 MW.  Key customer projects during the past  year included high voltage electrical  infrastructure design and implementation,  conversion of coal boilers and LPG fired  ovens to natural gas, and the design  and installation of chiller, air handling  equipment and lighting upgrades.  Practical completion of the 21 MW  co-generation facility for Qenos Pty  Limited at its Altona plant in Victoria is  expected in December this year.  Operating EBIT in Energy Services  increased by 24.6% from $17.8 million  to $22.2 million as a result of an increase  in new energy efficiency based projects  and increased LPG production volumes  and price. These offerings cover the identification,  design and delivery of energy solutions  aimed at reducing customers’ energy costs. > production and supply of LPG and naptha. > energy and emissions data via AGL Insight,  a web based reporting platform; and > efficient boiler design, sale and  commissioning by AGL Boilers; > HVAC and lighting upgrades; > energy audits; > electrical and gas infrastructure;  > embedded generation projects such as  the $45 million AGL-Qenos co-generation  project (currently under construction);  Energy Services  Business Customers