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                                                                    Exhibit 99.1

Press Release                                                Source: Dynegy Inc.

Dynegy Announces New Organizational Approach to Finance Function, Appoints
Three-Officer Team

HOUSTON--(BUSINESS WIRE)--Aug. 27, 2002--Dynegy Inc. (NYSE:DYN - News) today
announced that it has adopted a new organizational approach to the role of chief
financial officer and appointed three current senior officers to direct the
company's financial, accounting and strategic planning duties. The shared
leadership structure has been approved by the company's board of directors.

"We believe this approach will be the most effective, practical and efficient
way to plan for and execute our business strategy, comply with the today's
regulatory requirements, meet new financial disclosure policies and procedures
and manage our previously disclosed three-year re-audit," said Dan Dienstbier,
interim chief executive officer of Dynegy Inc. "These officers have demonstrated
a consistent and thorough command of the company's financial, accounting and
operating activities. Each is committed to working together to ensure that
Dynegy develops and executes a solid strategy for our future and meets the
highest standards of corporate governance," he added.

Louis Dorey, who has served as chief financial officer for the past two months,
will assume the role of executive vice president, finance. Dorey will continue
his focus on financing transactions, treasury and managing relationships with
lenders and credit rating agencies. Prior to being named CFO, Dorey served as
president of energy marketing and origination, where he was responsible for the
management of the company's wholesale power and gas marketing and origination
business, and additionally was executive vice president of strategy and planning
for Dynegy Marketing and Trade. Dorey joined Dynegy as vice president of finance
and planning in 1997. Dienstbier said the new structure also will provide Dorey
with the scheduling flexibility necessary to deal with a serious illness in his
family.

Hugh Tarpley, currently executive vice president, strategic investments, will
lead the newly created corporate development department. His additional
responsibilities will include business unit performance reviews, financial and
strategic planning and investor relations. Tarpley joined Dynegy as vice
president in 1997 and has led numerous projects, including the Destec
acquisition and Dynegy-Illinova merger. Prior to joining Dynegy, he was
president of the U.S. region and chief financial officer for British Gas
America, overseeing all investments in the Americas.

"Hugh's expanded role underscores Dynegy's focus on the future," said
Dienstbier. "Now that we have achieved a number of important milestones in our
capital and liquidity plan and resolved several other outstanding issues, Dynegy
is committed to positioning the company going forward as a competitor and
provider of outstanding customer service in the energy merchant industry," he
added.

Michael Mott has been promoted to senior vice president, chief accounting
officer, in addition to the title of controller. Mott will add management of the
tax department to his previous duties, which have included the development and
application of accounting policies and procedures, the leadership and
coordination of the organization's financial and operational accounting
functions, transaction support, and internal and external financial reporting.
Mott has been with Dynegy since 1995 when he joined the company as director of
financial reporting.

All three executives will report to interim CEO Dan Dienstbier.

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.