PSI signs memorandum of understanding with Ballard Power Systems on fuel cell system

Business Wire, Oct 27, 1995

PLAINFIELD, Ind.--(BUSINESS WIRE)--Oct. 27, 1995--PSI Energy Inc., a subsidiary of Cinergy Corp. (NYSE:CIN), announced today that it has signed a memorandum of understanding with Ballard Power Systems Inc. for the development, demonstration and distribution of Ballard fuel cell power plants.

Ballard Power Systems of Vancouver, Canada, is the leading developer of proton exchange membrane (PEM) fuel cell technology and power systems. Ballard's technology is being commercialized for stationary power generation as well as transportation applications such as buses and automobiles.

Ballard and PSI intend to work together to develop, demonstrate and establish markets for PEM power plants and, with others, establish a national distribution network. These efforts should result in identifying the best customer and utility applications of on-site PEM distributed power plants. To implement these activities, Cinergy may need to seek Securities and Exchange Commission approval under the Public Utility Holding Company Act.

``Ballard has the technology and the management team to successfully bring PEM distributed power plants to the commercial marketplace,'' said Lane Birch, assistant to the president at PSI Energy. ``We're glad about the prospect of being on the same team with Ballard and are looking forward to creating a long-term relationship.''

Ballard's fuel cell power plants operate on natural gas and have the potential to work like a customized power plant for customers such as commercial office buildings and industrial sites requiring ``premium power'' -- power with a lesser chance of distortion or interruption. Utilities also can use the power plants as a way to deliver power to an area while transmission and distribution lines are being built, or as a means of deferring such construction.

``Customer experience is invaluable to Ballard's commercialization program. We are excited about the possibility of working with an industry innovator such as PSI,'' said David Dunnison, marketing manager for stationary power plants at Ballard.

PSI Energy is Indiana's largest electric supplier, serving more than 636,000 customers in 69 of Indiana's 92 counties. It is affiliated with The Cincinnati Gas & Electric Co., which is also a subsidiary of Cinergy Corp.

CONTACT: PSI Energy Inc., Plainfield

Angeline Protogere, 317/838-1338 or

317/298-3090 after 6 p.m.