Exhibit 99

                      TUESDAY MAY 8, 4:47 PM EASTERN TIME

PRESS RELEASE

DYNEGY HOLDINGS ANNOUNCES COMPLETION OF LEVERAGED LEASE TRANSACTION

HOUSTON--(BUSINESS WIRE)--May 8, 2001--Dynegy Holdings Inc., a wholly owned
subsidiary of Dynegy Inc. (NYSE:DYN - news), today announced the completion of a
$920.0 million leveraged lease transaction. The leveraged lease transaction
relates to the previously announced acquisition of 1,700 megawatts of Central
Hudson power generation facilities in the Northeast. The transaction included an
offering of $800.4 million aggregate principal amount of nine- and 15-year debt
securities and an equity investment by a third party in the amount of
approximately $119.6 million. The debt securities are pass-through trust
certificates issued by two pass-through trusts. Rent payable by two Dynegy
Holdings subsidiaries in the leveraged lease transaction will be the source of
payment on the certificates. Dynegy Holdings, which will guarantee the
subsidiaries' obligations under the leveraged lease transaction, will use the
proceeds to repay commercial paper and for general corporate purposes.

The pass-through certificates issued have not been registered under the
Securities Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from registration requirements.

Dynegy Inc. is a leading provider of energy and communications solutions to
customers in North America, the United Kingdom and Continental Europe. The
company's leadership position extends across the entire convergence value chain,
from broadband, power generation and wholesale and direct commercial and
industrial marketing and trading of power, natural gas, coal, emission
allowances and weather derivatives. The company is also involved in the
transportation, gathering and processing of natural gas liquids and the
transmission and distribution of electricity and natural gas to retail
consumers.

Certain statements included in this news release are intended as "forward-
looking statements" under the Private Securities Litigation Reform Act of 1995.
These statements include assumptions, expectations, predictions, intentions or
beliefs about future events. Dynegy cautions that actual future results may vary
materially from those expressed or implied in any forward-looking statements.
Some of the key factors that could cause actual results to vary from those
Dynegy expects include changes in commodity prices for energy or communications
products or services; the timing and extent of deregulation of energy markets in
the U.S. and Europe; general capital market conditions; the effectiveness of
Dynegy's risk management policies and procedures; the liquidity and
competitiveness of wholesale trading markets for energy commodities, including
the impact of electronic or online trading in these markets; operational factors
affecting Dynegy's power generation or Dynegy's midstream natural gas
facilities; uncertainties regarding the development of, and competition within,
the market for broadband services in the U.S. and Europe; and uncertainties
regarding environmental regulations or litigation and other legal or regulatory
developments affecting Dynegy's business. More


information about the risks and uncertainties relating to these forward-looking
statements are found in Dynegy's SEC filings, which are available free of charge
on the SEC's web site at http://www.sec.gov.