ATLANTA, GEORGIA - March 22, 2006 :- GE Energy and Bechtel Corporation have signed an agreement with Cinergy/PSI to proceed with preliminary engineering and design work for a proposed 600-megawatt power plant in Indiana that will use integrated gasification combined-cycle (IGCC) technology. Vectren Energy Delivery of Indiana, a subsidiary of Vectren Corporation headquartered in Evansville, Ind. is also participating in the preliminary engineering work as a potential co-owner of the plant.

The front-end engineering design (FEED) phase of the project is expected to take approximately one year to complete and will result in site-specific data for construction of the plant. A final decision on construction will be made after the engineering and design are complete and regulatory approvals have been received.

PSI Energy, the Indiana operating company of Cinergy Corp., would own and operate the facility, which would be among the first commercial-scale IGCC plants to be built in the United States in the last 10 years. Among several locations being considered for the project is the site of Cinergy/PSI's coal-fired station in Edwardsport, Ind.

As previously announced, GE and Bechtel have formed an IGCC alliance to develop a standard commercial offering for IGCC projects in the United States-offering a single point of contact for project developers. Provided that the IGCC alliance is awarded the contract for the next phase, GE Energy would supply the IGCC technology for the new plant, while Bechtel would be responsible for engineering, procurement and construction.

"The new IGCC project could be a major step in meeting the future need for additional generation in Indiana," said James E. Rogers, chairman and chief executive of Cinergy Corp. "With the dramatic increase in price and limited supplies of natural gas and oil, we must maintain coal as a significant option for our electric supply in the Midwest."

"Cinergy’s decision to move to the next phase of its IGCC project is a strong sign of the growing acceptance for this technology among the nation's leading power generators," said Edward Lowe, general manager of GE Energy's gasification business. "IGCC is becoming recognized as a commercially viable technology that allows power generators to use the United States' most abundant fossil fuel, while meeting today's increasingly strict environmental requirements."

GE's "Cleaner Coal" IGCC process emits less than half of the sulfur dioxides, nitrogen oxides, mercury and particulate matter of a traditional pulverized coal plant. The process also uses less water than a traditional plant and can be more economically retrofitted for carbon capture, further strengthening its environmental benefits.

GE's "Cleaner Coal" IGCC offering is part of ecomagination, a company-wide initiative to address challenges such as the need for cleaner, more efficient sources of energy.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

About Bechtel Corporation

Bechtel Corporation is one of the world's leading engineering, procurement and construction companies, with significant experience in the design and construction of all forms of power generation facilities, including IGCC plants. GE Energy has worked with Bechtel on a number of IGCC projects, including Cool Water and Tampa Electric's Polk Power Station, which came on line in 1996.

About Cinergy

Cinergy Corporation has a balanced, integrated portfolio consisting of two core businesses: regulated operations and commercial businesses. Cinergy's regulated public utilities in Ohio, Indiana, and Kentucky serve 1.6 million electric customers and about 500,000 gas customers. In addition, its regulated operations own 8,100 megawatts of generation. Cinergy's competitive commercial businesses have 5,200 megawatts of generating capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. Cinergy's integrated businesses make it a Midwest leader in providing both low-cost generation and reliable electric and gas service.

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