Why global warming? Some may be surprised that we would devote our annual report to a topic as controversial as global warming. Cinergy operates coal-fired generating stations and burns 25 to 30 million tons of coal per year. Coal has been linked to global warming. But those who know Cinergy won’t be surprised by this report’s theme. Cinergy has a history of being a thought leader in environmental debates.
LISTENING TO OUR STAKEHOLDERS Investors Customers Employees Policymakers Regulators Suppliers Partners Communities

CAN WE FIND COMMON GROUND?
We know that finding common ground on global warming must begin with dialogue. With this in mind, we interviewed 23 of our stakeholders representing eight stakeholder groups. Those interviews are the focus of this report. We encourage you to read what our stakeholders think about global warming in the pages following the letter to stakeholders. If you would like to read their in-depth comments, please visit our website, Cinergy.com.

WHAT DOES THIS HAVE TO DO WITH YOUR INVESTMENT IN CINERGY?
If you take the long-term view as we do, you know the answer — everything. You’ve made an investment in us, and we are committed to providing you with a superior return on your investment over time by consistently executing on our business model. Our model capitalizes on our low-risk platforms in the power and gas industries to deliver sustainable and predictable earnings growth. Our foundation continues to be our low-cost generation and distribution assets, high customer satisfaction, diversified and balanced supply and demand portfolios in power and gas, and our ability to deliver constructive regulatory and legislative outcomes. Our time-tested business model will allow us to effectively address the environmental and climate change uncertainties we face, while continuing to deliver value to all of our stakeholders.

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ABOUT THE COVER
The cover design represents the diverse public views on the global warming debate and the struggle to find a common ground. This is also our approach. We confront our major issues and challenges by listening to our stakeholders. Our goal is to always weigh the interests of our stakeholders to find a balanced, sensible solution — a common ground.

Cover of the Cinergy's 2004 Annual Report