Cinergy Joins EPA's Climate Leaders Partnership.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Feb. 20, 2002

Cinergy Corp. (NYSE:CIN) announced today that it has joined the US Environmental Protection Agency's Climate Leaders Partnership, a voluntary program for industries willing to take on a commitment to address global climate

Under the terms of the partnership agreement, Cinergy will develop a company-wide inventory of greenhouse gas emissions and report this inventory annually. It will also work with EPA to develop a corporate-wide GHG reduction goal to be achieved over a five to ten year period.

"Given what we know about climate change, we believe it is prudent to begin taking steps aimed at limiting GHG growth, which I view as a risk mitigation strategy," said James E. Rogers, chairman, president and chief executive officer of Cinergy. "We also favor a longer-term policy that would allow the power industry to continue to ensure reliable service to its customers through utilization of existing assets, while developing the next generation of power supply technologies that will be lower in GHG emissions."

Cinergy plans to work with EPA, its state regulatory and environmental agencies and other stakeholders to identify a corporate-wide GHG management target based on its recent GHG emission levels. "The target must reflect our continued need to use coal as a fuel and other business realities, such as our current and future expenditures on other emissions reductions programs," Rogers noted. The company's specific target will be met through both "on-system" and "off-system" methods of reductions. It may also seek appropriate cost recovery treatment, if necessary and appropriate.

Cinergy Corp. has a balanced, integrated portfolio consisting of two core businesses: energy merchant and regulated operations. Its energy merchant business is a Midwest leader in low-cost generation owning 7,000 megawatts of capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. The "into Cinergy" power-trading hub is the most liquid trading hub in the nation. Cinergy also owns regulated delivery operations in Ohio, Indiana, and Kentucky that serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated operations own 6,000 megawatts of generation.