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)
May 6, 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 5.
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Item 5. Other Events
Attached is a copy of a communication provided to the media on May 6, 1998.
<PAGE>
For immediate release: May 6, 1998
For more information: Mike Monahan (217) 424-6400
ILLINOIS POWER WITHDRAWS SECURITIZATION FILING AT THE ICC
DECATUR, Ill. - Illinois Power today filed a motion to withdraw its
application for securitization funding before the Illinois Commerce Commission
(ICC).
"We're taking this step because it's evident that we still need to work
out some issues the ICC staff has with our financial plan," said Larry F.
Altenbaumer, senior vice president and chief financial officer for Illinois
Power. "It's our hope that we can mutually resolve those issues, refile an
application and receive a favorable ruling from the Commission."
Illinois Power filed its application seeking ICC authorization for
securitization funding on March 18. The decision to withdraw that application
today came at the close of the hearing phase of the ICC deliberation.
Securitization is a financial tool made available to state utilities as
part of the compromise electric deregulation legislation approved last December.
It would allow Illinois Power and other state utilities to replace a portion of
their total existing capitalization with lower-cost securitized debt.
Securitization funding is a popular financing option for many companies
in other industries, such as credit card companies, student loan programs and
automobile companies. Because it is well suited for companies with ongoing and
predictable revenues, such as utilities, securitization funding for utilities
has been authorized in other states that have undertaken electric deregulation.
"It's our belief that securitization funding, done in accordance with
the guidelines specified in the legislation, could help us lower our overall
cost of capital and help us be more competitive in a deregulated marketplace,"
said Altenbaumer. The Commission staff has taken the position that Illinois
Power has not "reasonably demonstrated" that securitization funding will lower
the company's overall cost of capital.
"We'll use this timeout in the process to determine what further
information we can provide to satisfy the concerns expressed by the ICC staff,"
said Altenbaumer.
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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/ Larry F. Altenbaumer
---------------------------
Larry F. Altenbaumer
Chief Financial Officer
Treasurer and Controller
on behalf of
Illinova Corporation
Date: May 6, 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/ Larry F. Altenbaumer
---------------------------
Larry F. Altenbaumer
Senior Vice President and
Chief Financial Officer
on behalf of
Illinois Power Company
Date: May 6, 1998
