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IPALCO COMMENTS ON PSI'S STATEMENTS IN PRESS RELEASE ON FILING

 INDIANAPOLIS, June 23 /PRNewswire/ -- The following was released today by IPALCO:
 In its initial response to a PSI press release announcing its regulatory filing, IPALCO spokesman Maurice O. Edmonds said: "While we have not yet received PSI's filing, we feel compelled to respond immediately to some of the gross misstatements contained in PSI's press release announcing the filing:
 -- Our regulatory plan will not require customers to pay a single penny for the purchase of PSI;
 -- Indiana customers will receive about $800 million of cost savings under our plan, more than the purported $600 million under PSI's plan;
 -- PSI claims that our offer will mean nearly 14,000 fewer jobs and $534 million less disposable income in Indiana over the next 10 years. There is no basis in fact for this claim, and it is especially ludicrous coming from a company that wants to move hundreds of Indiana jobs to Ohio; and
 -- PSI states that it will use a "performance incentive program" to capture savings for its shareholders. This flies in the face of the recent Indiana Court of Appeals decision that invalidated PSI's existing incentive rate plan.
 "It is ironic that PSI continues to criticize our failure to formally file our regulatory plan, when PSI purports to analyze our regulatory plan in its filing," Edmonds said.
 "PSI has apparently made these misstatements under the oath in testimony filed with the IURC. We look forward to the opportunity to cross-examine PSI's witnesses in the IURC proceeding.
 "PSI claims it has moved a step closer to completing the CG&E/PSI merger. In fact, PSI hasn't moved a step closer to anything. Without simultaneous filings of regulatory plans in Ohio and Kentucky, PSI's filing in Indiana is meaningless. Any regulatory plan of CINergy requires approval of the Ohio and Kentucky regulatory commissions.
 "In December, Cincinnati Gas & Electric Company, with utility operations in Ohio and Kentucky, and PSI, with its Indiana operations, made a joint public announcement of their plan to merge into an Ohio- based company called CINergy. Now six months later, they are unable to pull off even the simplest synergy -- the joint filing of regulatory plans in Indiana, Ohio and Kentucky," Edmonds said.
 PSI's press release states that "the credibility or competence of IPALCO's senior management should be questioned." Edmonds replied: "We find that interesting coming from a management that wants to sell a fine Indiana utility to an out-of-state company, especially in the face of our superior offer. We look forward to PSI's court-ordered annual meeting on July 29, when PSI shareholders will be able to vote on the credibility and competence of PSI's management."
 "We will carefully examine PSI's filing when we receive it and comment further on it in the near future," Edmonds said.
 -0- 6/23/93
 /CONTACT: Susan Hanafee, 317-261-8763 or Marni Lemons, 317-261-8219 or pager, 317-461-9578, both of IPALCO; or (investors) Tom Davies or Josh Pekarsky of Kekst & Company, 212-593-2655, for IPALCO/
 (IPL)


CO: IPALCO Enterprises ST: Indiana IN: UTI SU:

WB -- NY085 -- 5243 06/23/93 19:59 EDT
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Publication:PR Newswire
Date:Jun 23, 1993
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