CIN Cinergy Corp

Cinergy Corp. (NYSE:CIN) announced today that its subsidiaries, PSI Energy, Inc. and The Cincinnati Gas & Electric Co., have signed a definitive agreement with subsidiaries of Allegheny Energy, Inc., to acquire the 512-megawatt Wheatland generating facility for approximately $100 million. Located in Knox County, Indiana, 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 and/or CG&E systems. Completion of the sale is subject to receipt of certain regulatory approvals, including the Federal Energy Regulatory Commission, and other customary closing conditions. Under the transaction agreement, PSI and CG&E may each take a share of ownership of the plant or either one may acquire the entire ownership interest, with the ownership percentages to be determined shortly before closing. Cinergy anticipates that the transaction will close in the fourth quarter of 2005. "The continued growth in our service area points to the need for additional capacity to meet customer demands for electricity at peak times," said Michael J. Cyrus, executive vice president and chief executive officer of Cinergy's regulated business unit. "The acquisition of Wheatland at what we consider to be attractive terms will contribute to our ability to maintain adequate electric supplies at reasonable costs." 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.