EXHIBIT 99.1

PRESS RELEASE                                                     Source: Dynegy

DYNEGY AND CHEVRONTEXACO AGREE TO TRANSITION OF NATURAL GAS PURCHASE AND SALE
AGREEMENTS


HOUSTON--(BUSINESS WIRE)--Jan. 17, 2003--Dynegy Inc. (NYSE:DYN - News) today
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announced that it has reached agreement with ChevronTexaco (NYSE:CVX - News) to
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end their existing natural gas purchase and sale contracts related to
ChevronTexaco's North American production and consumption, effective Feb. 1,
2003. Dynegy Marketing and Trade had purchased substantially all of
ChevronTexaco's lower-48 U.S. natural gas and supplied the natural gas
requirements of ChevronTexaco's corporate facilities through agreements that
were to run until August 2006. Dynegy has paid ChevronTexaco approximately $11
million in connection with ending the contracts and the transfer to
ChevronTexaco of certain third-party contracts. To ensure a seamless transition,
Dynegy will provide ChevronTexaco with services that include agency
arrangements, scheduling, invoicing and accounting, through March 31, 2003.

"This transition in our business is consistent with Dynegy's strategy of exiting
our third-party marketing and trading activities and thereby reducing collateral
requirements," said Dynegy President and Chief Executive Officer Bruce
Williamson. "By the time the transition is complete, overall collateral postings
will be lowered by approximately $180 million, providing yet another significant
boost to liquidity as we work to improve the company's financial position and
rebuild Dynegy around our core power generation, natural gas liquids and
regulated energy delivery assets."

The agreement announced today does not involve the natural gas processing and
liquids agreements between Dynegy Midstream Services and ChevronTexaco, which
will continue in their current forms. Dynegy Midstream Services is the company's
natural gas liquids business unit involved in gathering, processing,
fractionation, transportation, marketing and feedstock supply.

Dynegy Inc. owns operating divisions engaged in power generation, natural gas
liquids and regulated energy delivery. Through these business units, the company
serves customers by delivering value-added solutions to meet their energy needs.

Certain statements included in this news release are intended as
"forward-looking statements." These statements include assumptions,
expectations, predictions, intentions or beliefs about future events, including
Dynegy's anticipated reduction in collateral requirements as a result of the
ChevronTexaco natural gas purchase and sales agreement termination and the
expectation that the parties' natural gas processing and liquids agreements will
continue in their current forms. 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
materially from those expected include changes in commodity prices for power and
natural gas, Dynegy's ability to successfully execute its exit from third-party
risk management aspects of the marketing and trading business and the costs that
may be associated with this activity. 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.
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