SECURITIES AND EXCHANGE COMMISSION

                        Washington, D.C.  20549




                               FORM 8-K

                            CURRENT REPORT




     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



        Date of Report (Date of earliest event reported): August 10, 1999





                              PSI Energy, Inc.
         (Exact name of registrant as specified in its charter)




    Indiana                   1-3543                    35-0594457
(State or other             (Commission               (IRS Employer
jurisdiction of             File Number)            Identification No.)
 incorporation)






                  1000 East Main Street, Plainfield, IN 46168
              (Address of principal executive offices) (Zip Code)





       Registrant's telephone number, including area code: (317) 839-9611









                              ITEM 5. OTHER EVENTS.


PSI Energy, Inc. (Company),  a subsidiary of Cinergy Corp.,  expects a reduction
in net income of $41 million (after tax) in July related to the extreme  weather
conditions  late in the month.  While  increased  sales from  retail  operations
contributed  $5  million  after  tax,  cash  losses  reflecting  costs  to serve
wholesale power contracts and anticipated  liquidated  damage claims totaled $46
million after tax.

The  extreme  weather  conditions  required  the  purchase  of power  needed  to
supplement  generation to meet record wholesale and retail customer demand.  The
anticipated liquidated damages are related to supply curtailments to eight power
marketers for four-to six hours July 30.





                              SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.



                                              PSI Energy, Inc.
                                               (Registrant)




Date:  August 10, 1999       By:           /s/ Madeleine W. Ludlow
                                  --------------------------------------
                                               Madeleine W. Ludlow
                                  Vice President & Chief Finance Officer
                                                (Signature)