Merchant  Energy Energy Portfolio Management Merchant Energy manages the risks of  procuring and delivering gas and electricity  for AGL’s wholesale and retail portfolios.  It also manages AGL’s compliance with  mandatory renewable energy targets. Merchant Energy’s business groups are: Energy Portfolio Management (EPM) manages the price risk  associated with procuring electricity and gas. It also manages AGL’s  green product obligations such as those relating to the mandatory  renewable energy target, and controls the dispatch of owned and  contracted electricity generation assets which complement the  portfolio of electricity hedge contracts. EPM’s operating EBIT increased by 0.9% to $430.1 million. A  reduction of $9.4 million in contribution from wholesale electricity  gross margin was offset by increases of $2.0 million from wholesale  gas gross margin and $8.5 million from eco-markets gross margin.$^{26}$ > Energy Portfolio Management – which manages procurement  of AGL’s wholesale electricity and gas requirements, including  management of the commercial aspects of operating AGL’s own  electricity generation assets and management of AGL’s green  product obligations. > Power Development – which develops all AGL’s electricity  generation projects. > Merchant Operations – which operates and maintains AGL’s  portfolio of electricity generation assets including wind farms,  hydro assets and gas-fired generation plants. > Energy Services – which provides customers with expert advice  on a range of energy related matters, including energy efficiency,  and project development and management. Review of  Operations