CG&E, Intervenors Reach Agreement On Ohio Transition Plan.

Business Editors

CINCINNATI--(BUSINESS WIRE)--May 9, 2000

The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp. (NYSE:CIN), announced that it has reached a stipulated agreement with the staff of the Public Utilities Commission of Ohio (PUCO), the Ohio Consumers' Counsel (OCC), Ohio Department of Development, the Industrial Energy Users-Ohio, The Kroger Co., Enron Energy, the Ohio Hospital Association, the Ohio Manufacturers' Association, the Ohio Council of Retail Merchants, Exelon Energy, Newenergy, WPS Energy, Dynegy, Cincinnati\Hamilton County Community Action Agency, Supporting Council of Preventive Effort (SCOPE), Columbia Energy Services, Columbia Energy Power Marketing, Strategic Energy, Mid-Atlantic Power Supply Association and People Working Cooperatively with respect to its proposal to implement electric customer choice in Ohio beginning January 1, 2001.

"We are very encouraged by this settlement, which brings electric customer choice to our Ohio service area," said James E. Rogers, vice chairman, president, and chief executive officer of Cinergy. "The settlement expands upon the Ohio legislative framework enacted in June of 1999, and provides the roadmap that allows us to move forward and finalize our plans for the competitive electric environment in Ohio."

Under Ohio's customer choice legislation and CG&E's settlement, residential customer rates will be frozen through December 31, 2005. This frozen rate continues a base rate freeze which began in 1994, and includes fuel costs that are significantly lower today than in 1994. In addition, residential customers of CG&E will receive a 5% reduction in the generation portion of their electric rates, effective January 1, 2001. This is expected to reduce a typical residential bill by about $2.30 a month, saving customers approximately $81 million over the five-year transition period. Finally, under the settlement CG&E has agreed to provide $4 million over the next five years in support of energy efficiency and weatherization services for low income customers.

The settlement also resolves all other issues associated with CG&E's December 28, 1999 transition filing. The settlement provides for the creation of a Regulatory Transition Charge, or RTC, designed to recover CG&E's regulatory assets and other transition costs over a ten-year period.

Other major features of the agreement include:

-- "Unbundled" and separately stated charges for the different

components of electric service, including transmission,

distribution, ancillary services, and generation;

-- Authority for CG&E to transfer its generation assets to a

separate, non-regulated corporate subsidiary to provide

flexibility to manage its generation asset portfolio in a

manner that enhances opportunities in a competitive

marketplace;

-- Standard offer "default" service, which ensures that CG&E

will be the supplier of last resort so that no customer will

be without a supplier;

-- Authority for CG&E to apply the proceeds of transition cost

recovery to costs incurred during the transition period

including, but not limited to, implementation costs and

purchased power costs that may be incurred by CG&E to

continue to maintain a sufficient reserve margin necessary

to provide reliable and adequate service to its customers.

The agreement also stimulates the creation of a competitive market in CG&E's service territory by providing shopping credits to switching customers. The first 20% of the load in each customer class -- residential, commercial and industrial customers -- have an additional incentive, through enhanced credits, to choose an alternative supplier. Attached is a schedule showing average unbundled rates, shopping credits by rate schedule, and regulatory transition charges.

"As a company that has been a leading advocate of electric industry competition, we wanted to encourage the early development of a competitive market," said James L. Turner, president of CG&E. "We recognized that our traditionally low rates could serve to discourage competition in the short term, so we worked with our customers and future competitors to develop a creative way to increase customers' interest in other suppliers."

Cinergy expects the settlement to be approved prior to the end of the third quarter of 2000.

Cinergy Corp. is one of the nation's leading diversified energy companies, with a total capitalization of $7.2 billion and assets of $10 billion. Cinergy owns or operates more than 16,500 megawatts of electrical and combined heat plant generation that is either operational or under development. It also has 55,000 miles of electric and gas transmission lines in the United States and abroad and approximately 9,000 employees in nine countries. Its largest operating companies, The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve more than 1.4 million electric customers and 478,000 gas customers in Indiana, Ohio and Kentucky.

Cinergy is active in U.S. power and natural gas markets and maintains a 24-hour-a-day, seven-day-a-week trading operation. The interconnections of Cinergy's Midwestern transmission assets give it access to 37 percent of the total U.S. energy consumption. In 1998 the New York Mercantile Exchange selected Cinergy to be its transmission hub for Midwest electricity futures trading, which has become the most liquid, active hub in the United States.

In addition to its U.S. operations, Cinergy owns and operates power generation, transmission and distribution assets in the Czech Republic, Spain, the United Kingdom, Zambia, and Estonia. Cinergy is also active in European gas and electricity markets.

Statements made in this release that convey the company's or management's intentions, expectations or predictions of the future are forward-looking statements. The company's actual results could differ materially from those projected in the forward-looking statements, and there can be no assurance that estimates of future results will be achieved. 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 CINCINNATI GAS & ELECTRIC COMPANY
                    OHIO TRANSITION PLAN SETTLEMENT



                                            Secondary      Secondary
                                          Distribution   Distribution
                            Residential       Small          Large
                           -------------  -------------  -------------

1999 Sales (kWh)           6,660,212,723   534,795,290   6,548,752,097

Average Unbundled
 Rates (per kWh)(a)
   Generation Charge       4.5521 cents    5.3601 cents  4.8145 cents
   Transmission and
    Distribution Charges   2.1564 cents    3.2157 cents  1.2773 cents
   Ancillary Services,
    Universal Service Fund
    and Ohio Excise Tax    0.6084 cents    0.6000 cents  0.5820 cents
   Residential Generation
    Credit                (0.2276)cents      -    cents    -    cents
                           -------------  -------------  -------------
   Total Unbundled Rates   7.0893 cents    9.1758 cents  6.6738 cents
                           -------------  -------------  -------------
                           -------------  -------------  -------------
Shopping Credit Through
 12/31/05 for Customers
 Who Switch Suppliers
 During Market Development
 Period (per kWh)
   First 20% of Switchers  5.0000 cents    5.3601 cents  4.8145 cents
   Next 80% of Switchers   3.9407 cents    4.5438 cents  4.2460 cents

Regulatory Transition
 Charge Beginning 1/1/06
 for Customers Who Switch
 Suppliers During Market
 Development Period and
 for All Other Customers
 Following End of Market
 Development Period
 (per kWh)                 0.6114 cents    0.9499 cents  0.6719 cents



                              Primary
                            Distribution   Transmission    Lighting
                           -------------  -------------  -------------

1999 Sales (kWh)           2,575,780,877  3,347,918,025    99,915,207

Average Unbundled
 Rates (per kWh)(a)
   Generation Charge       3.8877 cents   3.2700 cents   3.0057 cents
   Transmission and
    Distribution Charges   0.8336 cents   0.3302 cents   3.9570 cents
   Ancillary Services,
    Universal Service Fund
    and Ohio Excise Tax    0.5122 cents   0.4714 cents   0.4680 cents
   Residential Generation
    Credit                   -    cents     -    cents     -    cents
                           -------------  -------------  -------------
   Total Unbundled Rates   5.2335 cents   4.0716 cents   7.4307 cents
                           -------------  -------------  -------------
                           -------------  -------------  -------------

Shopping Credit Through
 12/31/05 for Customers
 Who Switch Suppliers
 During Market Development
 Period (per kWh)
   First 20% of Switchers  3.8877 cents   3.2700 cents   3.0057 cents
   Next 80% of Switchers   3.5145 cents   3.0322 cents   2.8272 cents

Regulatory Transition
 Charge Beginning 1/1/06
 for Customers Who Switch
 Suppliers During Market
 Development Period and
 for All Other Customers
 Following End of Market
 Development Period
 (per kWh)                 0.4562 cents   0.3043 cents   0.2290 cents

(a)  Average rates do not include monthly distribution-related
     customer charges.