STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

v. ) Case No. 2003-12845-A

)

CINERGY POWER GENERATION )

SERVICES, LLC., )

)

Respondent. )

The Complainant and the Respondent desire to settle and compromise this action without hearing or adjudication of any issue of fact or law, and consent to the entry of the following Findings of Fact and Order. Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does not constitute an admission of any violation contained herein. Respondent's entry into this Agreed Order shall not constitute a waiver of any defense, legal or equitable, which Respondent may have in any future administrative or judicial proceeding, except a proceeding to enforce this order.

1. Complainant is the Commissioner ("Complainant") of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondent is Cinergy Power Generation Services, LLC. ("Respondent"), which owns and operates a coal fired boiler identified as Unit 7-2, at its Edwardsport Generation Station, located at RR1, Box 198A, State Road 67, Edwardsport, Indiana, Knox County ("Site").

3. The Indiana Department of Environmental Management ("IDEM") has jurisdiction over the parties and the subject matter of this action.

4. Pursuant to IC 13-30-3-3, on July 25, 2003, IDEM issued a Notice of Violation via Certified Mail to:

Chief Executive Officer CT Corporation System

Cinergy Power Generation Registered Agent for Cinergy Power

Services, LLC. Generation Services, LLC.

139 East Fourth Street 36 S. Pennsylvania Street, Suite 700

Cincinnati, OH 45202 Indianapolis, IN 46204

5. A stack test, on December 5, 2003, was conducted at the Site by a representative of IDEM's Office of Air Quality (OAQ). The following violations were in existence or observed at the time of this stack test:

Pursuant to state operation permit number 42-01-93-0117 condition 4 in accordance with 326 IAC 6-2, particulate matter (PM) emissions to the atmosphere from the Unit 7-2 shall be limited to 0.223 lbs. per million BTU of energy input.

During a stack test, conducted at the Edwardsport Generating Station Unit 7-2 on December 5, 2002, the average measured PM emissions rate was 0.250 lbs. per million BTU, a violation of the permit condition. and 326 IAC 6-2.

6. Respondent conducted additional stack test of the unit on December 10, 2002. The test results were in compliance with 326 IAC 6-2 and the permit.

7. In recognition of the settlement reached, Respondent waives any right to administrative and judicial review of this Agreed Order.

1. This Agreed Order shall be effective ("Effective Date") when it is approved by the Complainant or her delegate, and has been received by the Respondent. This Agreed Order shall have no force or effect until the Effective Date.

2. Respondent shall comply with all the provisions of the state operation permit number 42-01-93-0117.

3. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

Mr. Michael Stonik, Enforcement Case Manager

Office of Enforcement

Indiana Department of Environmental Management

100 N. Senate Avenue

P. O. Box 6015

Indianapolis, IN 46206-6015

4. Respondent is assessed a civil penalty of Five Thousand Dollars ($5,000.00). Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date of this Agreed Order.

5. Civil and stipulated penalties are payable by check to the Environmental Management Special Fund. Checks shall include the Cause Number of this action and shall be mailed to:

Cashier

IDEM

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

6. In the event that the civil penalty required by Order paragraph 4 of this Agreed Order, is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

7. This Agreed Order shall apply to and be binding upon the Respondent, its successors and assigns. The Respondent's signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondent shall in any way alter its status or responsibilities under this Agreed Order.

8. In the event that any terms of the Agreed Order are found to be invalid, the remaining terms shall remain in full force and effect and shall be construed and enforced as if the Agreed Order did not contain the invalid terms.

9. The Respondent shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondent shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

10. This Agreed Order shall remain in effect until Respondent has paid the civil penalty in full.

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management Cinergy Power Generation Services, LLC.

By: By:

David P. McIver

Chief, Air Section Printed:

Office of Enforcement

Title:

Date: Date:

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management

By: By:

Office of Legal Counsel

Department of Environmental

Management

Date: Date:

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS DAY OF , 200__.

For the Commissioner:

Signed on December 30, 2003

Felicia A. Robinson

Deputy Commissioner

for Legal Affairs