News Release
Oct. 06, 1999

CINERGY CAPITAL & TRADING, INC. AND DUKE ENERGY NORTH AMERICA ANNOUNCE PARTNERSHIP VENTURE IN OHIO/INDIANA

CINCINNATI AND HOUSTON-- Cinergy Capital & Trading Inc. (Cinergy) and Duke Energy North America LLC (DENA) today announced a new partnership whereby they will jointly own three wholesale electric generating facilities currently under development in Indiana and Ohio, totaling approximately 1,400 megawatts of generating capacity.

Under the transaction, Cinergy and DENA will each own a 50 percent interest in the partnership. The partnership will own the three projects -- DENA’s 640-megawatt facility under construction in Butler County, Ohio; DENA’s 640-megawatt facility under construction in Vermillion County, Ind.; and Cinergy’s 130-megawatt facility being considered for Henry County, Ind. All three facilities will be natural gas-fired merchant peaking stations. Commercial operation of the three facilities is anticipated for the summer of 2000, and Cinergy is expected to operate all three facilities.

Financial terms of the transaction are not being disclosed.

"The creation of this partnership furthers each party’s strategic position as the electric industry continues to restructure," said Jim Donnell, president and chief executive officer of DENA. "The partial divestiture of our interest in these two projects typifies DENA’s strategy of active generation portfolio management by capturing value created through our development efforts while still participating in the projects. This partnership is evidence of DENA’s commitment to work with regional energy companies to address the recent shortages experienced in the Midwest."

Michael J. Cyrus, president of Cinergy Capital & Trading, said, "Our partnership with DENA will provide us with significant new generating capacity to meet the growing energy needs of the region with facilities that are clean, efficient and cost-effective. Important as well, this project builds on the excellent relationship and continuing opportunities we’ve developed with the people from DENA."

Cinergy Capital & Trading is a wholesale energy marketing affiliate of Cinergy Corp., one of the nation’s leading diversified energy companies. Cinergy Corp.’s operating companies, The Cincinnati Gas & Electric Company and PSI Energy Inc., serve more than 1.4 million electric customers and 470,000 gas customers in Indiana, Ohio and Kentucky. More information on Cinergy is available at the corporate Web site:  www.cinergy.com

Duke Energy North America (DENA), located in Houston, Texas, is a leading developer and owner of unregulated wholesale electric generation projects throughout the United States. DENA is a business unit of Duke Energy.

Duke Energy (NYSE:DUK) is a global energy company with more than $29 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at:

www.duke-energy.com

Contact: Rick Rhodes
Phone: (704) 382-3747
24 Hour Phone: (704) 382-8333
Email: jrrhodes@duke-energy.com
Contact: Steve Brash (Cinergy)
Phone: (513) 287-2226
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Angeline Protogere (Cinergy)
Phone: (317) 838-1338
24 Hour Phone: (704) 382-8333
Email: Media_relations@duke-energy.com