Dynegy Completes Monument Facility Improvement Project; Compressor Inv

    Business Editors/Energy Editors

    HOUSTON--(BUSINESS WIRE)--Jan. 3, 2005--Dynegy Inc. (NYSE:DYN) today announced that it has completed operational enhancements at the Monument Natural Gas Field Processing Facility in Lea County, New Mexico. The $7 million project consisted of the installation of four 3,250-horsepower compressors that replaced 18 gas compressors, resulting in improved reliability, increased fuel efficiency and operating margins that are expected to generate approximately $1.4 million of cost savings and a 66 percent reduction in nitrogen oxide emissions per year.
    "Dynegy has a long history of service to natural gas producers in the Permian Basin of Southeast New Mexico and West Texas," said Stephen A. Furbacher, Dynegy's Executive Vice President of Natural Gas Liquids. "By utilizing new technology, we are able to serve our customers more reliably, while staying at the forefront of the industry in terms of cost efficiency and environmental responsibility."
    Dynegy's Monument facility has a processing capacity of 85 million cubic feet of natural gas per day. Dynegy has 136 employees in the Permian Basin region.
    Dynegy Inc. provides electricity, natural gas and natural gas liquids to customers throughout the United States. Through its energy businesses, the company owns and operates a diverse portfolio of assets, including power plants totaling 11,885 megawatts of net generating capacity and gas processing plants that process approximately 1.8 billion cubic feet of natural gas per day.
    Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly the statement concerning the anticipated cost savings and emission reductions associated with the operational enhancements. Dynegy cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. More information about the risks and uncertainties relating to these forward-looking statements are found in Dynegy's SEC filings, including its Annual Report on Form 10-K for the year ended Dec. 31, 2003, as amended, and its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2004, which are available free of charge on the SEC's web site at http://www.sec.gov. Dynegy expressly disclaims any obligation to update any forward-looking statements contained in this news release to reflect events or circumstances that may arise after the date of this release, except as otherwise required by applicable law. DYNNGLS, DYNG

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CONTACT: Dynegy Inc., Houston Media: John Sousa or David Byford, 713-767-5800 or Analysts: Peter Wilt, Norelle Lundy or Hillarie Bloxom, 713-507-6466

KEYWORD: TEXAS NEW MEXICO INDUSTRY KEYWORD: OIL/GAS ENERGY UTILITIES SOURCE: Dynegy Inc.

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