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)
December 15, 1999
Commission Registrants; State of Incorporation; IRS Employer
File Number Address; and Telephone Number 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 3.
<PAGE>
Item 5. Other Events
Certain information contained in this release is forward-looking
information based on current expectations and plans that involve risks and
uncertainties. Forward-looking information includes, among other things,
statements concerning the intentions of the parties to the Illinova-Dynegy
merger. Although IP believes that this forward-looking information is accurate,
its business is dependent on various regulatory issues, general economic
conditions and future trends, and these factors can cause actual results to
differ materially from the forward-looking information that has been provided.
The reader is cautioned not to put undue reliance on this forward-looking
information, which is not a guarantee of future performance and is subject to a
number of uncertainties and other factors, many of which are outside of IP's
control.
In addition to factors discussed in the company's Annual Report on Form
10-K for the year ended December 31, 1998, and subsequent securities filings,
forward-looking information, such as the ability of the parties to receive
appropriate governmental approvals and actions, could cause results to differ
materially from management expectations.
Clinton Power Station Now Under New Owner
Representatives of Illinois Power Company and AmerGen Energy Co. announced
today they have signed closing documents that officially transfer ownership of
the Clinton Power Station from IP to AmerGen.
Effective at 12:01 a.m.December 15, 1999, AmerGen, a joint venture between
PECO Energy Co. of Philadelphia and British Energy of Edinburgh, Scotland, holds
the license for Clinton's operation and has full responsibility and authority
over the nuclear station.
The completed transaction comes just one year after IP's decision to exit
its nuclear business and less than six months after IP and AmerGen reached a
definitive agreement on terms for the sale.
Selling the nuclear station virtually assures completion of IP parent
Illinova Corp.'s merger with Dynegy, Inc., expected to close on or about January
4, 2000. The merger, announced June 14, 1999, and contingent on Illinova's
divesting its nuclear assets, was approved by both companies' shareholders
October 11, 1999.
Basic terms for the sale are unchanged from the definitive agreement
announced in July, 1999. The agreed upon purchase price was $20 million for the
plant and property and AmerGen has assumed full responsibility and liability for
operating and ultimately decommissioning the nuclear station. IP will purchase
at least 75 percent of Clinton's electricity output for its customers through
2004.
IP has transferred to AmerGen the existing decommissioning trust funds of
$98 million and is making additional payments to the decommissioning trust funds
intended to be sufficient to provide for the actual decommissioning of Clinton
by 2026, when the plant's operating license is scheduled to expire.
<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/ Larry F. Altenbaumer
----------------------------
Larry F. Altenbaumer
Senior Vice President, Chief
Financial Officer, Treasurer
and Controller on behalf of
Illinova Corporation
Date: December 16, 1999
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
President
on behalf of
Illinois Power Company
Date: December 16, 1999
