Exhibit 99.1

Press Release                                                     Source: Dynegy

Dynegy Announces Settlement With SEC

HOUSTON--(BUSINESS WIRE)--Sept. 24, 2002--Dynegy Inc. (NYSE:DYN - News) today
announced that it has concluded a settlement with the Securities and Exchange
Commission (SEC) on the previously disclosed investigations relating to Project
Alpha and round-trip electricity trades with CMS Energy. As a result, the SEC
today has entered a cease and desist order and filed a related complaint and
consent order in federal district court. In connection with the settlement,
Dynegy has agreed to pay a fine of $3 million. The company consented to the
terms of the settlement without admitting or denying the SEC's findings or
allegations.

Dynegy has previously disclosed that it will restate its 2001 and 2002 financial
statements to reflect changes in its accounting for Project Alpha. The company
provided a detailed description of the pending restatements in its second
quarter 2002 10-Q filing. Dynegy's independent auditor, PricewaterhouseCoopers
LLP (PWC), is currently conducting a three-year re-audit, and the company
intends to amend its annual reports for 1999 through 2001 to reflect the Project
Alpha-related restatements following completion of the re-audit. Dynegy also
will file amended quarterly reports for 2002, following PWC's review of those
interim reports. The terms of the settlement with the SEC are consistent with
Dynegy's previous description of its restatements and will not require any
further adjustment to the company's historical financial statements.

Dynegy Inc. produces and delivers energy, including natural gas, power, natural
gas liquids and coal, through its owned and contractually controlled network of
physical assets. The company serves customers by aggregating production and
supply and delivering value-added solutions to meet their energy needs.