Cinergy Solutions and BP Finalize Cogeneration Agreement.

Business Editors/Energy Writers

CINCINNATI--(BUSINESS WIRE)--Feb. 12, 2001

Cinergy Solutions Inc., a Cinergy Corp. affiliate specializing in cogeneration and energy outsourcing for large industrial customers, has finalized an energy services agreement with BP to construct, own, and operate two state-of-the art natural gas cogeneration projects to be located in Texas. Combined, the projects will produce more than 800 megawatts of electricity and 3.5 million pounds of steam per hour for BP's Texas City and Chocolate Bayou refining and chemicals sites.

The operation of the new cogeneration projects will coincide with the decommissioning of older, less efficient energy facilities. The new cogeneration projects, which will be built through a joint venture between Cinergy Solutions and BP, also will reduce net carbon dioxide emissions from the sites by 727,000 tons per year and will enable BP to reduce its nitrogen oxides emissions by 53 percent at Texas City and 34 percent at Chocolate Bayou. The Chocolate Bayou project is scheduled to be commercial in 2002. The Texas City project will be operational in 2004.

"Our record is to offer the most efficiently produced, reliable energy we can at the lowest possible cost," said Steve Harkness, Cinergy Solutions' president and chief operating officer. "Based on our work with our other industrial partners, we know that it's possible to achieve efficiency while making environmental excellence and safety priorities."

In September, BP announced that it could achieve Texas' 90 percent nitrogen oxides emissions reductions for most of its industrial point sources in that state. The cogeneration projects will play a key role in achieving those reductions. BP is the first major energy company to support its State Implementation Plan target reductions in an effort to bring the Houston region air quality standards into compliance with the federal Clean Air Act.

Tim Scruggs, manager, BP South Houston Integrated Site stated, "This is truly a significant milestone project for the BP Texas City Site. The environmental friendly nature of this project underscores BP's green commitment."

Cinergy Solutions' focus is cogeneration, energy services and utility outsourcing for large industrials, municipalities and other large energy consumers. The company specializes in reducing energy costs, lowering emissions, conserving energy, and improving efficiency for its customers, some of which include Kodak, General Motors, Millennium Chemicals, the University of Maryland College Park and the city of Orlando. Cinergy Solutions currently has projects in operation or under development in 12 states.

Cinergy Solutions Inc. is an affiliate of Cinergy Corp. (NYSE:CIN), one of the nation's leading diversified energy companies with a total enterprise value of approximately $9 billion and assets of $12 billion. Cinergy's energy merchant segment owns or operates nearly 21,000 megawatts of electric and combined heat plant generation that is either operational or under development domestically and internationally. Cinergy 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.