Cinergy Names Kay Pashos President of PSI Energy; Doug Esamann Senior Vice President at Cinergy.

CINCINNATI -- Cinergy Corp. (NYSE:CIN) announced today that Kay E. Pashos will become president of PSI Energy Inc., Cinergy's Indiana electric utility subsidiary. She will succeed Douglas F. Esamann, who will become Cinergy's senior vice president, Energy Portfolio Strategy and Management within Cinergy's Commercial Business Unit. Esamann will be responsible for balancing long-term and short-term power supply and demand requirements. The appointments are effective December 1, 2004.

Pashos is currently general counsel of Cinergy's Regulated Business Unit, having begun her career at PSI Energy in 1987. She has held positions of increasing responsibility in the Legal Department while serving as lead counsel in numerous major regulatory proceedings. Prior to joining PSI, she was an associate attorney with Best & Flanagan in Minneapolis. Pashos graduated from the Northwestern University School of Law and holds a bachelor of arts degree from DePauw University. She was born and raised in Indianapolis.

"Kay's experience with the regulated energy business makes her an excellent choice for PSI president," said James E. Rogers, Cinergy's chairman, chief executive officer and president. "She is well-respected in the industry and her record of leadership will be critical as we embark on new initiatives to meet increasing environmental requirements as well as the growing need for electricity supplies in Indiana."

In her new role, Kay will share responsibility for strategic business decisions affecting PSI's future, such as resource planning and procurement, environmental compliance strategy, and regional transmission market plans. Kay also will be responsible for developing and executing regulatory and legislative strategies in Indiana.

In his new position, Esamann will focus on increasing the short and long-term value of Cinergy's electric generating asset portfolio while managing the inherent risks in the most cost-effective manner. Specifically, he will have responsibility for fuels management, environmental risk analysis, generation dispatch, load forecasting, generation asset planning, power purchases and sales decisions, and portfolio analytics.

"Doug Esamann's financial and regulatory background, including his past experience as chief financial officer of the Commercial Business Unit, makes him the ideal choice to undertake these very important responsibilities for the company," Rogers said. Esamann joined PSI in 1979 and has held positions of increasing responsibility in the financial organization and in the Commercial Business Unit before being named PSI president. He holds a bachelor of science degree from Indiana University.

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, PSI Energy, its Indiana regulated company, owns 7,000 megawatts of generation and is the largest electric utility in the state. 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.