CG&E To Re-File Electric Distribution Rate Increase Request

    Business Editors/Energy Editors

    CINCINNATI--(BUSINESS WIRE)--Jan. 18, 2005--The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp. (NYSE:CIN), today took the next step toward seeking its first increase in rates for electric distribution service in more than 10 years by re-filing a notice with the Public Utilities Commission of Ohio for a proposed increase of $78 million, or approximately six percent, in annual revenues to take effect in January 2006.
    The company had originally filed a notice to increase its electric distribution rates in May 2004, but withdrew its notice late last year after the PUCO approved the company's rate stabilization plan. CG&E agreed in that proceeding to delay the distribution rate increase until 2006. This request seeks to recognize in rates CG&E's investments to improve the reliability of its electric delivery system over the last 12 years.
    Subject to approval of the company's application, a typical residential customer using 1,000 kilowatthours a month would see an increase in their total bill in January 2006 of $5.31 from the current $79.64 per month. Also in 2006 under the provisions of the rate stabilization plan, residential rates will reflect the continuing increase in the cost of providing electric generation service to customers. Non-residential generation rates increased at the beginning of this month under the rate stabilization plan.
    "Since distribution rates were last calculated, CG&E has invested approximately $734 million in our electric distribution system," said Greg Ficke, president of CG&E. "While residential rates will increase in 2006 to cover the higher costs of generating electricity, we must also receive appropriate revenues to cover the increasing costs of delivering electricity to our customers' homes and businesses.
    "We continue to maintain the highest emphasis on the reliability that our customers have traditionally received and expect."
    CG&E's electric rates for residential customers are lower today than they were in December 1994, when its base electric rates were last increased, and are consistently below the Ohio and national average for residential electric rates. By comparison, the Consumer Price Index has increased 28 percent during the same period.
    The company expects to file the full distribution rate application with the PUCO in mid-February. A ruling by the PUCO on the request is expected later this year.
    CG&E serves approximately 650,000 electric customers in Southwest Ohio and is a subsidiary of Cinergy Corp., one of the nation's leading diversified energy companies.
    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", "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.

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CONTACT: Cinergy Corp. News contact: Steve Brash, 513-287-2226 Kathy Meinke, 513-287-2121 Investor contact: Brad Arnett, 513-287-3024 Website: www.cinergy.com

KEYWORD: OHIO INDUSTRY KEYWORD: ENERGY UTILITIES SOURCE: Cinergy Corp.

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