PSI Files Testimony Supporting Rate Increase for Environmental Projects, New Power Supplies,...

Energy Editors/Business Editors

PLAINFIELD, Ind.--(BUSINESS WIRE)--March 31, 2003

PSI Energy, a Cinergy (NYSE:CIN) company, has filed testimony with the Indiana Utility Regulatory Commission to support a base rate increase application announced in December. If approved by state regulators,

A large part of the proposed increase is for major construction projects that will help the company meet its environmental responsibilities, respond to the growing power demands of its customers, and make necessary system improvements for reliable service. If approved by state regulators, the increase is expected to take effect in 2004. PSI is phasing in about 3 percent of the impact from the proposed rate increase in 2003 through an Indiana law that permits bill adjustments for the construction of pre-approved environmental projects.

Although PSI adjusts electric bills periodically to reflect increases as well as reductions in expenses such as fuel costs, this will be the company's first base rate increase since 1996. The increase will vary among consumers depending on the cost to serve different types of customers.

PSI Energy is Indiana's largest electric supplier, serving more than 700,000 customers in portions of 69 of the state's 92 counties. It is a subsidiary of Cinergy Corp.

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 d", "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.