CG&E Reaches Agreement on Electric Distribution Rate Increase.

CINCINNATI -- The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp. (NYSE:CIN), announced today that it has reached an agreement on its first increase in rates for Ohio electric distribution service in more than 10 years. The proposed increase of $51.5 million, or approximately four percent, in annual revenues would take effect in January 2006.

The agreement was reached with the Staff of the Public Utilities Commission of Ohio, the Ohio Consumers' Counsel, Industrial Energy Users-Ohio, the City of Cincinnati, the Ohio Energy Group, Kroger Company, People Working Cooperatively, Formica Corporation, Ohio Association of School Business Officials, Ohio School Boards Association, Buckeye Association of School Administrators, and Ohio Partners for Affordable Energy.

Subject to approval by the PUCO, the agreement would recognize in rates CG&E's investments to improve the reliability of its electric delivery system over the last 12 years. A typical residential customer using 1,000 kilowatthours a month would see an increase in their total bill in January 2006 from the current $79.64 per month to $85.39. The new amount also reflects increases in electric transmission costs from the Midwest Independent System Operator, as approved by the Federal Energy Regulatory Commission and the PUCO.

"This agreement recognizes the emphasis that CG&E has placed on customer service and electric reliability," said Greg Ficke, president of CG&E. "Since distribution rates were last established, CG&E has invested approximately $734 million in our electric distribution system. The parties to this case have agreed that this increase is necessary if we are to continue to provide high quality service to our customers."

Also in 2006, under the provisions of CG&E's rate stabilization plan, residential rates will reflect the continuing increase in the cost of providing electric generation service to customers. Non-residential generation rates increased in January 2005 under the rate stabilization plan.

CG&E serves approximately 650,000 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.