Use of House Bill 264 Key for Middletown Schools Energy Efficiency Project — Cinergy Solutions to Implement $1.4 Million Performance Contract Funded By Tax-Exempt Bonds

Business Wire, Nov 30, 2004

CINCINNATI -- Budgetary savings are on the way for Middletown City Schools due to an energy savings project implemented by Cinergy Solutions, an affiliate of Cinergy Corp. (NYSE:CIN) specializing in facility and infrastructure solutions. House Bill 264 allows the Middletown School District to implement an energy conservation program using the savings expected to result from the project to fund the actual improvements. The energy savings measures will be incorporated only on existing buildings that the school district anticipates being utilized for a sufficient length of time to allow the energy savings provided to offset the cost of the improvements.

The school district received permission to proceed with the project from the Ohio Schools Facilities Commission and will finance the initial project costs through a tax-exempt bond. Under the terms of the project, the school district is guaranteed to save a minimum of $136,960 annually for 15 years from the energy and operational savings generated by the energy and utility reducing fixtures and retrofits.

"House Bill 264 has been a benefit in getting this project started for Middletown Schools," said Steve Harkness, President of Cinergy Solutions. "School districts, like Middletown, are searching for innovative ways to make their limited state funding work along side their budgetary needs. The savings generated by the project will allow Middletown to upgrade their facilities at several locations and become more energy efficient. Furthermore, there will be no additional cost to the school system as the energy savings will cover the cost of the tax-exempt financing used to fund the project."

Energy saving projects have begun at Middletown High School, Manchester Technical Center, Verity Middle School and Vail Middle School this month and the initial phase of the installation is expected to be completed in nine months.

"The Middletown School District is pleased to partner with Cinergy Solutions in this significant project," explained School District Business Manager Frank Chapman. "Through these building enhancements and energy savings initiative, Middletown School District will see positive budgetary savings for 15 years and beyond and will upgrade facilities immediately, at no cost to our education budget."

Forty HVAC units will be replaced from the rooftop of Manchester Technical School, while low-flow water fixtures will be installed at Middletown High, Vail Middle Annex and Verity Middle. A new chiller and thermal storage system will be installed at the high school and high-efficiency lighting fixtures will be installed at all locations.

About Cinergy Solutions

Cinergy Solutions, an affiliate of Cinergy Corp. (NYSE:CIN), one of the largest diversified energy companies in the US, currently manages over 5,350 MWs of power generation and offers a complete range of energy solutions from on-site supply and energy conservation to renewable energy and maintenance of high-voltage electric and gas infrastructure. Cinergy Solutions' award-winning team of energy demand management specialists provides one of the top energy use reduction, design-build services in North America providing energy-efficiency design, engineering, construction and facility-management services to commercial, municipal, institutional and industrial clients. Delivering innovative facilities solutions that immediately improve facility performance, Cinergy Solutions' design-build experts rejuvenate existing buildings that cost less to operate while reducing impact on the environment. With extensive experience in energy-related services and a strong reputation for both specific and comprehensive projects, Cinergy Solutions has ready access to a wealth of resources and expertise across North America.