considerable progress this year in bringing new renewable energy projects into our generation portfolio. 

During the year, we completed construction of the 53 MW Hallett 5 wind farm in South Australia and the 67.2 MW Oaklands Hill wind farm in Victoria. Work also continued on the 420 MW Macarthur wind farm which is expected to be fully operational in early 2013. 

In March 2012, AGL acquired the development rights for the Silverton wind farm near Broken Hill in New South Wales. 

In June 2012, AGL was announced as the successful bidder in the Commonwealth Government’s Solar Flagships Program. Together with our project partner, First Solar, AGL will construct two solar photovoltaic power stations at Broken Hill and Nyngan in New South Wales with a total capacity of 159 MW. 

Generation capacity at our hydro facilities continued to improve. Substantial rainfall throughout the year has increased dam storage levels. As a result, Eildon power station operates at full generation capacity of 120 MW and the Dartmouth power station to 163 MW (more than 90% of its maximum capacity of 180 MW). 

In addition to continuing to work on proving up AGL’s own reserves of gas, our Upstream Gas business has also been developing gas storage projects. These will play an increasingly important role in providing security of gas supply to major population centres, especially during periods of peak demand. 

Development approval has recently been obtained to construct an LNG storage facility at Newcastle, in New South Wales. Construction work is about to commence, with the facility expected to be commissioned early in 2015. 

In November, AGL officially opened the Silver Springs Underground Gas Storage project south of Roma, Queensland. This is a gas storage project using a depleted natural gas reservoir in the Surat Basin in central Queensland. It will be used to deliver greater reliability, and flexibility, of supply to our gas customers. 

## Our People 

As we continue to increase the level of vertical integration by adding new power generation, gas storage and, in due course, more significant gas production assets, the importance of workplace safety will continue to increase. This is particularly the case at operational sites where our employees and contractors will be working in environments with the potential for serious injury. 

It is disappointing to report that our Total Injury Frequency Rate has increased this year, from 5.0 to 6.6. This follows an increase in 2011 after three successive years of improved outcomes. The unfavourable trend has been a matter of great concern for AGL’s management and Directors. However, we have been encouraged by the large fall this year in the number of high risk near miss safety incidents, particularly those relating to electrical safety at our power stations. Considerable effort has been put into the development of safety leadership at our operating sites, including the introduction of safety “golden rules”. These appear to be having a positive effect in improving safety culture at those sites, although there is still much more that we will need to do to achieve our goal of zero harm. 

We have been working hard over the last few years to improve the representation of women in leadership positions at AGL. The number of women in leadership roles has been steadily increasing. In March, our efforts in this area were recognised by the Equal Opportunity for Women in the Workplace Agency (EOWA) when we were named as an Employer of Choice for Women. Like many other Australian companies, we still have plenty of scope for further improvement. However, this acknowledgement provides encouragement that we are heading in the right direction. 

This has been a very busy year at AGL. I also think it has been a very successful year. I would like to thank all AGL employees for their contributions in bringing about this result. 

## Conclusion 

AGL is celebrating the 175th anniversary of the formation of The Australian Gas Light Company, which was incorporated on 7 September 1837 under an Act of Parliament for the purpose of “lighting with gas the Town of Sydney”. We are using this occasion to remind our employees, our customers, and the regional communities in which we operate that AGL has a long and proud history of respecting the environment, working with the community and responding to the changing needs of Australian society. 

The energy industry continues to evolve at a rapid pace. AGL is well positioned to respond to those changes. We have another busy year ahead of us, but I am confident that we will continue to deliver outcomes of value for our customers and our shareholders. 

## Energy for Life 

A revitalisation of our 6 year program targeting areas most at risk of energy-related financial hardship by developing and evidence based approach to corporate citizenship. 

## Vision 

In our 175th year of operation, we focus on achieving our vision of creating energy solutions for the communities of today and tomorrow. 

