CG&E Files Requested 2004-2008 Electric Plan.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Jan. 27, 2004

The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp. (NYSE:CIN), announced today that it has complied with a request of the Public Utilities Commission of Ohio by filing a plan that would provide for continued electric system reliability, cap any generation-related rate increases through 2008, and allow additional time for competitive markets to develop in Ohio. The PUCO has set the company's plan for hearing on April 19, 2004.

The CG&E plan continues to advocate the company's proposed method for pricing electricity in a fully competitive market, but offers customers through 2008 a capped alternative to full market pricing that provides the following benefits:

-- Promotes a reliable electric delivery system and adequate

sources of electric supply for southwest Ohio

-- Avoids the price volatility of a fully competitive electric

market and provides customers with certainty by capping

generation-related increases in electric rates for the next

five years

-- Continues the five percent reduction currently in generation

rates for residential customers through 2008

-- Continues certain benefits through 2005 for customers who have

already switched suppliers

-- Allows the Public Utilities Commission to conduct a

competitive bidding process to confirm the market

comparability of CG&E's pricing

"This filing is very different from a traditional rate proceeding," said Greg Ficke, president of CG&E. "The Public Utilities Commission has expressed concern about possible rate shock in the next few years as we move toward market prices. This plan responds to the commission's concern by proposing to cap generation-related increases that may occur in the next five years."

CG&E's plan is designed to permit the company to recover through 2008 specific cost increases, such as fuel, environmental compliance and homeland security, under a cap. These costs would be included in rates gradually through the term of the plan only after review and approval by the Public Utilities Commission.

CG&E has already made significant capital investments in environmental controls at its power plants, and new expenditures are contemplated over the next five years as additional emissions control requirements are implemented. Since 2001, the company has spent $177 million on environmental equipment at its Ohio generating units.

CG&E is requesting the ability to file for the annual adjustments beginning in 2005. Any annual adjustment would be capped at no more than ten percent of CG&E's generation rate and would reflect actual expenditures made by the company, after review and approval by the PUCO. The generation rate is approximately 65 percent of a residential customer's bill. The current five percent reduction in generation costs for residential customers, set to expire at the end of 2005, would continue through 2008.

CG&E's electric rates for residential customers are lower today than they were in December 1994, when its base electric rates were last increased, and are consistently below the Ohio and national averages. Commercial and industrial rates have held steady for the same 10-year period. By comparison during the same period, the Consumer Price Index increased 26 percent and medical costs escalated 45 percent.

Maintaining electric system reliability is also addressed in the company's filing with provisions for rate recovery of investments in the transmission and distribution system through the traditional ratemaking process. Since 1994, the company has invested over $700 million in the transmission and distribution grid. "We are proud of the high marks we receive from customers on reliability and customer satisfaction and this plan will allow us to continue that track record," Ficke said.

Energy efficiency programs assisting low-income customers that were approved in 2000 would continue to be funded by the company through 2008. These programs would be available to residential customers regardless of their generation supplier. The company is also proposing to continue its economic development efforts in Southwest Ohio.

CG&E serves approximately 640,000 electric customers in Southwest Ohio and is a subsidiary of Cinergy Corp., one of the nation's leading diversified energy companies.

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.