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/C O R R E C T I O N -- PSI Energy/

 In NY098, Duff & Phelps: PSI Energy, Inc., $60 Million Cumulative Preferred Stock Rated 'BBB' by Duff & Phelps, moved yesterday, we are advised by a representative of the company that the first paragraph, third line, should read "par value $100 per share" rather than "$25," as originally issued.
 PSI ENERGY, INC., $60 MILLION CUMULATIVE PREFERRED STOCK RATED
 `BBB' BY DUFF & PHELPS
 CHICAGO, Oct. 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "BBB" (Triple-B) to PSI Energy, Inc.'s offering for $60 million of cumulative preferred stock, par value $100 per share. The issue joins the outstanding fixed income securities on Rating Watch -- Neutral/Up, where they were placed Dec. 14, 1992. Proceeds will be used for general corporate purposes.
 In December 1992, parent PSI Resources, PSI Energy, and Cincinnati Gas & Electric agreed to merge into a newly created corporation named CINergy. Under the new structure, PSI Energy and Cincinnati Gas & Electric would operate as subsidiaries of CINergy. The service territories of the two companies are contiguous, and the combined company should realize savings from reduced fuel expenditures, lower operation and maintenance costs, the elimination of overlapping functions, and lower new capacity needs for the combination than for the two companies operating separately. PSI Energy's planned construction of a 100mw unit planned for operation in 1995 may be canceled if the merger is consummated.
 Regardless of the merger outcome, PSI Energy will require additional rate relief for its substantial clean air compliance expenditures. The company estimates its compliance costs to be $1.2 billion over the 1992-2000 period. In late August, the company filed a request for 11.6 percent average rate increase. The commission's decision, which is not expected until the third quarter 1994, will be critical to PSI's ability to maintain the current level of credit protection measures.
 PSI Energy currently provides electric service in the lower two- thirds of Indiana, serving a population of approximately 1.9 million.
 -0- 10/27/93
 /CONTACT: William A. Abrams, CFA, Duff & Phelps Credit Rating Co., 312-368-3112/
 (PIN)


CO: PSI Energy, Inc. ST: Indiana IN: UTI SU: RTG

MP -- NY107 -- 7482 10/27/93 16:12 EDT
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Date:Oct 27, 1993
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