87 Our plan to build a 400 MW coal-fired unit in Fiume Santo (Sardinia) reached an important milestone in 2009: the environmental- impact assessment conducted by the Ministry of Environment came to a positive conclusion. In late 2009, we also received regulatory approval to co-fire up to 5 percent biomass at our coal- fired power station in Fiume Santo, making a portion of its output climate-neutral. We benchmark our power plants' performance and share best practices across our company so that we can fully leverage our expertise in generation. Our Italian power plants participated in these programs for the first time in 2009. E.ON Italia swiftly launched projects to address areas (like operations and mainte- nance) where potential had been identified to further improve plant performance. Energy marketing E.ON Energia, our energy sales arm in Italy, markets power and gas products to all customer segments. It's Italy's fourth-biggest power marketer and sixth-biggest gas marketer. In April 2009, we acquired the remaining 50-percent stake in MPE Energia, a power marketing company that focuses on small and medium- sized enterprises ("SME"). MPE was integrated into E.ON Energia at the start of 2010. E.ON Energia revamped its product portfolio in 2009 and added a number of innovative offerings. These include dual-fuel products, green-energy products, and an assurance product that covers a customer's energy bill in the case of unemployment or severe illness. More customers joined E.ON Energia's loyalty program, which also rewards customers for becoming more energy efficient. E.ON Energia's focus going forward will be on achieving volume growth, mainly in the attractive SME segment, and on optimizing its sales processes. Gas distribution In December 2009, we combined our five formerly independent gas distribution companies in Italy into a single entity called E.ON Rete. It operates 9,500 km of pipelines and delivers natural gas safely and reliably to about 600,000 customer accounts, mainly in northern Italy. The merger will unlock operational synergies and qualify E.ON Rete for regulatory incentives designed to promote the formation of larger distribution companies. You'll find E.ON's consolidated financial statements and related commentary in our Financial Report. Want to know more about our Italy market unit? eon.it Enhancing safety One of E.ON Italia's top priorities in 2009 was to improve its safety culture. It conducted a year-long safety-awareness campaign and, in October, held a companywide Safety Week consisting of workshops for safety managers and events and discussions for all employees. E.ON Italia has also made safety performance a key criterion for selecting suppliers. Its safety program will continue in 2010 focusing on cultural change and training (page 27 has information about other E.ON safety-training programs). Investing in hydroelectricity The Terni hydro plant group was an important focus of E.ON Italia's investment program in 2009. A comprehensive technical upgrade program, to be concluded in 2011, will enhance efficiency and extend the operating lives of 26 units at a total of 11 hydro plants. The upgrade, which will cost about 190 million, encompasses new turbines, genera- tors, and automated control systems. Together, the Terni plants pro- duce enough zero-carbon electricity to supply 500,000 homes. They're located on three rivers (Tiber, Velino, and Nera) in central Italy. Italy Market Unit Our Structure