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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 24, 1999
CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
(Exact name of registrant as specified in its charter)
Illinois 1-3672 37-0211380
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
607 East Adams Street, Springfield, Illinois 62739
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (217) 523-3600
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ITEM 5. OTHER EVENTS
Reference is made to Management's Discussion and Analysis of Financial
Condition and Results of Operations under the caption "Liquidity and Capital
Resources" in the Registrant's Form 10-Q for the quarter ended September 30,
1999, for a discussion of cost reduction alternatives being explored by the
Registrant. In late November and mid-December 1999, the Registrant and two of
its coal suppliers executed agreements to terminate their existing coal supply
contracts effective December 31, 1999. Under the agreements, the Registrant will
make termination payments to the suppliers totaling approximately $52 million.
These termination payments will be recorded as a nonrecurring charge in the
fourth quarter of 1999, equivalent to $31 million, after income taxes.
Total pre-tax fuel cost savings from these termination agreements are
estimated to be $183 million (or $131 million net of the termination payments)
through 2010 which is the maximum period that would have remained on any of the
terminated coal supply contracts. Approximately $66 million of pre-tax fuel cost
savings is expected to be realized over the next three years.
The foregoing estimates of the savings from the termination of the coal
supply contracts are forward-looking statements within the meaning of the "Safe
Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such
statements involve risks and uncertainties that could cause actual results to
differ materially from those discussed herein. Among the factors that could
affect actual results is the future market price for fuel.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CENTRAL ILLINOIS PUBLIC
SERVICE COMPANY
(Registrant)
By /s/ Warner L. Baxter
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Warner L. Baxter
Vice President and Controller
(Principal Accounting Officer)
Date: December 20, 1999
