PSI Energy to Purchase Generating Station from Allegheny Energy

Cinergy Corp. (NYSE:CIN) announced today that its
Indiana subsidiary, PSI Energy, has completed the acquisition of the
512-megawatt Wheatland generating facility for approximately $100
million from subsidiaries of Allegheny Energy, Inc.
   Located in Knox County, Ind., Wheatland has four natural gas-fired
simple cycle combustion turbines and is directly connected to the
Cinergy transmission system. Its output will be used to bolster the
reserve margins on the PSI system.
   The company announced the purchase agreement in May and recently
received approvals from the Indiana Utility Regulatory Commission and
the Federal Energy Regulatory Commission for the purchase.
   Cinergy Corp. has a balanced, integrated portfolio consisting of
two core businesses: regulated operations and commercial businesses.
Cinergy's regulated public utilities in Ohio, Indiana, and Kentucky
serve 1.5 million electric customers and about 500,000 gas customers.
In addition, its Indiana regulated company owns 7,000 megawatts of
generation. Cinergy's competitive commercial businesses have 6,300
megawatts of generating capacity with a profitable balance of stable
existing customer portfolios, new customer origination, marketing and
trading, and industrial-site cogeneration. Cinergy's integrated
businesses make it a Midwest leader in providing both low-cost
generation and reliable electric and gas service.
   This document includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Forward-looking statements are
based on management's beliefs and assumptions. These forward-looking
statements are identified by terms and phrases such as "anticipate",
"believe", "intend", "estimate", "expect", "continue", "should",
"could", "may", "plan", "project", "predict", "will", and similar
expressions. Forward-looking statements involve risks and
uncertainties that may cause actual results to be materially different
from the results predicted. Factors that could cause actual results to
differ materially from those indicated in any forward-looking
statement include, but are not limited to, unanticipated weather
conditions; unscheduled generation outages; unusual maintenance or
repairs; unanticipated changes in costs; environmental incidents,
including costs of compliance with existing and future environmental
requirements; electric transmission or gas pipeline system
constraints; legislative and regulatory initiatives; additional
competition in electric or gas markets and continued industry
consolidation; financial or regulatory accounting principles;
political, legal, and economic conditions and developments in the
countries in which we have a presence; changing market conditions and
other factors related to physical energy and financial trading
activities; the performance of projects undertaken by our
non-regulated businesses and the success of efforts to invest in and
develop new opportunities; availability of, or cost of, capital;
employee workforce factors; delays and other obstacles associated with
mergers, acquisitions, and investments in joint ventures; and costs
and effects of legal and administrative proceedings, settlements,
investigations, and claims. Please refer to the company's SEC filings
for additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking
statements. The Company undertakes no obligation to update the
information contained herein.