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                                                                    Exhibit 99.3

Press Release                                                Source: Dynegy Inc.

Dynegy Announces Work Force Reduction

HOUSTON--(BUSINESS WIRE)--Oct. 21, 2002--Dynegy Inc. (NYSE:DYN - News) today
announced a work force reduction in connection with the company's previously
announced restructuring initiative and exit from the marketing and trading
business. The reduction affects approximately 780 employees, including
approximately 600 employees in Houston. Dynegy employees are eligible for
severance benefits based on credited length of service with the company.
Professional career search assistance is available for the employees impacted by
the staff cuts.

After the restructuring, Dynegy's global workforce will stand at approximately
4,600 employees. In Houston, this number will be approximately 775 employees,
down from 1,380 employees. The reduction includes employees who will be in
transition roles over the next several months as the company implements its
restructuring plan and exits the marketing and trading business. The company
will give severed and transitional employees the opportunity to apply for job
opportunities created through attrition during the coming months.

Annual savings related to the reduction are expected to exceed $100 million.

"Our restructuring defines the strategic direction of this company," said Dan
Dienstbier, Dynegy's chairman and interim chief executive officer.
"Unfortunately, given today's market conditions, this company cannot support the
same number of employees that we have in the past. Given the quality of our
employees and the commitment they have demonstrated over the years, this was a
difficult decision to make, but a necessary one as we prepare Dynegy for the
future."

On October 16, Dynegy announced a new business structure characterized by a much
leaner organization, an emphasis on more autonomous operating units and an exit
from its marketing and trading business. Dynegy Generation and Dynegy Midstream
Services, two of the company's operating units in the new structure, will
continue to manage risk around their physical energy assets.

The work force reduction announced today largely impacts Dynegy's corporate
infrastructure and its marketing and trading businesses in North America and
Europe, with a lesser impact on the company's power generation, natural gas
liquids, regulated energy delivery and communications businesses.

"The direction for our company and all of our employees is to focus on building
a successful new organization while maintaining our customer relationships,"
Dienstbier added.

Employers interested in contacting impacted employees can call Dynegy's Career
Assistance Center at 713/914-1600.

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

Certain statements included in this news release are intended as
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. These statements include assumptions, expectations, predictions,
intentions or beliefs about future events. 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 energy
commodity prices; Dynegy's ability to successfully execute its strategy to exit
the marketing and trading business and to operate its remaining assets and
businesses with a reduced work force; operational factors affecting Dynegy's
operating businesses; the cost of borrowing and other factors affecting Dynegy's
financing activities, including its ability to execute its capital plan, and its
credit ratings; the results of Dynegy's re-audit of its 1999-2001 financial
statements, which could cause material changes to Dynegy's reported financial
results for the applicable periods, to current expectations and estimates and to
financial results for future periods; the demand for and pricing of services
offered by Dynegy's telecommunications business and the effect of general market
conditions in the telecommunications business; and uncertainties regarding
environmental regulations or litigation and other legal or regulatory
developments affecting Dynegy's business, including litigation relating to the
California power market and shareholder claims, as well as the ongoing
regulatory investigations primarily relating to Project Alpha and trading
practices. 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.