EXHIBIT 99.1

PRESS RELEASE

              ENRON AND DYNEGY ANNOUNCE
              SETTLEMENT OF MERGER-RELATED
              LITIGATION

              FOR IMMEDIATE RELEASE: Thursday, August 15, 2002

             HOUSTON - Enron Corp. (ENRNQ) and Dynegy Inc. (NYSE: DYN) announced
             today 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.



                                       1


              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.

                                      ###

             For additional information please contact:

             KAREN DENNE
             ENRON
             (713) 853-9757

             JOHN SOUSA
             DYNEGY
             (713) 767-5800



                                       2