UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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)
October 20, 1998
Commission Registrants; State of Incorporation; IRS Employer
File Number Address; and Telephone Company Identification
No.
1-11327 Illinova Corporation 37-1319890
(an Illinois Corporation)
500 S. 27th Street
Decatur, IL 62525
(217) 424-6600
1-3004 Illinois Power Company 37-0344645
(an Illinois Corporation)
500 S. 27th Street
Decatur, IL 62525
(217) 424-6600
Total number of sequentially numbered pages is 6.
Item 7. Exhibits
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(c) Exhibits
(99.1) Press Release, dated October 15, 1998
(99.2) Press Release, dated October 19, 1998
<PAGE>
SIGNATURES
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.
ILLINOVA CORPORATION
(Registrant)
By /s / Leah Manning Stetzner
---------------------------
Leah Manning Stetzner
General Counsel and
Corporate Secretary
on behalf of
Illinova Corporation
Date: October 20, 1998
SIGNATURES
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.
ILLINOIS POWER COMPANY
(Registrant)
By /s/ Leah Manning Stetzner
-----------------------------
Leah Manning Stetzner
Vice President, General
Counsel, and Corporate
Secretary on behalf of
Illinois Power Company
Date: October 20, 1998
<PAGE>
Exhibit Index
The following Exhibits are hereby filed as part of this Current Report on Form
8-K:
Exhibit
Number Description
99.1 Press Release, dated October 15, 1998
99.2 Press Release, dated October 19, 1998
<PAGE>
EXHIBIT 99.1
For release: Oct. 15, 1998
For information contact: Shirley Swarthout 217-424-6400
ILLINOVA POSTS THIRD-QUARTER EARNINGS; ANNOUNCES SHARE REPURCHASE
Modest earnings reflect continued impact
of replacement power costs
Illinova Corp. today reported earnings of $27 million, or 37 cents per
share of common stock (basic and diluted), for the third quarter 1998. This
compares to earnings of $64 million, or 87 cents per common share (basic and
diluted), for the same period a year ago.
Year-to-date earnings are 4 cents per share, compared to $1.87 per
common share through third quarter 1997. The substantial decline in quarterly
and year-to-date earnings is consistent with Illinova's previous projections and
is due primarily to replacement power costs throughout the summer months and
greater than previously projected expenditures for recovery efforts at Clinton
Power Station.
After experiencing unprecedented and unexpected prices for power purchases
during the last week of June, Illinova announced that Illinois Power's projected
replacement power costs in 1998 would significantly exceed previous projections.
At its Oct. 14 meeting the Board of Directors approved the repurchase of up
to 12 million shares of Illinova common stock over the next six to 12 months in
conjunction with Illinois Power's upcoming issuance of securitized debt. In
November IP expects to issue $864 million of securitized debt and will use the
proceeds to refinance its outstanding debt, to retire preferred equity, and to
repurchase common equity.
<PAGE>
EXHIBIT 99.2
For release Oct. 19, 1998
For information contact: Bruce Paulsen (217) 424-6400
WORK PROGRESSING ON CLINTON POWER STATION
DECATUR, Ill. -- Illinois Power continues to make progress on work
necessary to restart the Clinton Power Station and reaffirmed its commitment to
quality and safety as it returns the station to service.
"We want the recovery process to be thorough, because we expect Clinton to
operate reliably for the long-term," said Illinois Power Chairman, President and
CEO Charles E. Bayless.
It now appears likely that the plant's restart will be after the first of
the year. Moving restart into next year will increase the expense for the
station's recovery process. 1998 operating and maintenance expenses for Clinton,
previously projected at $195 million, now are expected to be about $210 million.
1999 operating and maintenance expenses for Clinton are projected to be about
$150 million.
