Exhibit 99.1

Press Release

SOURCE: Enron and Dynegy

Enron and Dynegy Announce Settlement of Merger-Related Litigation

Agreement Includes Resolution of Outstanding Commercial Matters Relating to
Northern Natural Gas

HOUSTON--(BUSINESS WIRE)--Aug. 15, 2002--Enron Corp. (ENRNQ) and Dynegy Inc.
(NYSE:DYN - News) today announced that they have reached a settlement of
litigation arising from the failure of the November 2001 merger of the two
companies. The settlement agreement has been approved by the boards of both
companies.

Under the terms of the agreement, Dynegy will pay Enron $25 million to settle
the lawsuit Enron had filed alleging breach of contract for wrongful termination
of the merger. Enron has agreed to release Dynegy from any and all claims
relating to the terminated merger and to dismiss such litigation.

In addition, Dynegy has agreed not to pursue any claims for working capital
adjustments relating to its acquisition of Northern Natural Gas Company (NNG)
from Enron last February. This will result in the release of funds to Enron that
had been escrowed in connection with the sale of NNG, pending a review of
working capital as of the closing date. The settlement amount and the release of
escrowed funds are subject to bankruptcy court approval.

Enron has agreed to continue providing transition services to NNG once
MidAmerican Energy Holdings Company's purchase of the pipeline from Dynegy is
completed later this month. Enron has been providing services on a transition
basis under an agreement established between the two companies when Dynegy
acquired NNG. Enron has agreed to allow the assignment of that agreement, which
runs until Jan. 31, 2003, to MidAmerican Energy.

"We are pleased to have reached a settlement that enables both companies to move
forward without the shadow of protracted litigation. This settlement maximizes
value for our creditors, which is Enron's top priority at this time," said Enron
Interim CEO Stephen F. Cooper. "Through the transition services agreement, we
will continue to work with Dynegy and MidAmerican Energy to ensure that the NNG
transition goes smoothly and that NNG's customers continue to receive safe and
reliable service."

Dan Dienstbier, interim CEO of Dynegy Inc., said, "This settlement resolves a
matter that has been weighing on our company and our stakeholders, and we are
pleased to have done so on terms that are reasonable for Dynegy. The transfer of
the transition services agreement is an important step in the timely completion
of our sale of NNG to MidAmerican Energy."

Enron has significant natural gas and electricity assets in North and South
America. Enron's Internet address is www.enron.com.





Dynegy Inc. is a global energy merchant. Through its owned and contractually
controlled network of physical assets and its marketing, logistics and risk
management capabilities, Dynegy provides solutions to customers in North
America, the United Kingdom and continental Europe. The company's website is
www.dynegy.com.