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)
February 29, 2000
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 6.
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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 effects of the restatement of Illinova's financial
statements and Illinova's merger with Dynegy Inc.
Although the companies believe that this forward-looking information is
accurate, their businesses are 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 the companies' control.
ILLINOVA ANNOUNCES 1999 RESULTS
On February 28, 2000, Illinova Corporation reported 1999 earnings of $42
million, or 60 cents per basic and diluted share. For the fourth quarter,
Illinova reported a loss of $36 million, or 51 cents per basic and diluted
share. Illinova's 1999 results reflect certain one-time items, including $34
million, or 48 cents per share, of expenses related to its recently completed
merger with Dynegy Inc.
In pulling together the pieces related to the Clinton Power Station sale
and the business segment restructuring, a change in the calculation of the net
Clinton write-off on which Illinova based its quasi-reorganization at year-end
1998 was identified. Accordingly, Illinova has filed amended 1998 financial
statements with the Securities and Exchange Commission (SEC). With the
correction, Illinova's net loss for 1998 increased by $197 million to $1.58
billion, or $22.04 per share versus a previously reported loss of $19.30
per share. In addition, as part of the restatement, the transition regulatory
asset has been reduced by $326 million, to $457 million. Amending the financial
statements has no impact on the company's rates or the reliability of service to
its customers, and it has no impact on Illinova's merger with Dynegy.
Illinova has also provided the SEC its amended financial statements for the
first, second, and third quarters of 1999, incorporating the effects of the 1998
change. Previously reported 1999 quarterly earnings were unaffected.
In 1999, Illinova became the first energy company in the nation to transfer
its entire fleet of fossil-fueled generating units into a separate, unregulated
affiliated company. The integration of these generating assets into Dynegy's
national power portfolio will provide greater flexibility and improved power
supply reliability for Illinois Power.
In December 1999 Illinova sold its Clinton Power Station to AmerGen Energy
Co. -- a transaction that was completed more quickly than any other nuclear
plant sale, either planned or completed to date, in the United States. As a
result of the sale of Clinton, net equity increased $88 million, since the
quasi-reorganization, as adjusted, originally assumed a shutdown and
decommissioning scenario.
Illinova is the parent company of Decatur, Ill. - based Illinois Power, a
regulated energy delivery company that provides electricity and natural gas
service to 650,000 customers over a 15,000-square-mile territory throughout much
of Illinois.
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Item 7. Financial Statements
(A) Financial Statements
(99.1) Illinova Consolidated Income Statements
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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
---------------------------
Larry F. Altenbaumer
President
on behalf of
Illinova Corporation
Date: February 29, 2000
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
---------------------------
Larry F. Altenbaumer
President
on behalf of
Illinois Power Company
Date: February 29, 2000
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Exhibit Index
The following Exhibits are hereby filed as part of this Current Report on
Form 8-K:
Exhibit
Number Description
99.1 Illinova Consolidated Income Statements
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<TABLE>
<CAPTION>
Illinova
Condensed Consolidated Statements of Income
Three Months Ended * Twelve Months Ended
December 31, December 31,
--------------------------------- ------------------------------
<S> <C> <C> <C> <C> <C> <C>
As % Change As % Change
Restated Fav/ Restated Fav/
1999 1998 (Unfav) 1999 1998 (Unfav)
(Millions) (Millions)
Operating Revenues
Electric $ 257.0 $ 251.1 2 % $ 1,174.8 $ 1,224.2 (4)%
Electric interchange 48.0 63.1 (24) 445.9 557.2 (20)
Gas 92.7 83.2 11 303.7 287.8 6
Diversified enterprises 98.6 87.2 13 500.4 361.4 38
--------- --------- --------- ----------
Total 496.3 484.6 2 2,424.8 2,430.6 (0)
--------- --------- --------- ----------
Operating Expenses
Fuel for electric plants 57.7 67.2 14 246.9 250.2 1
Power purchased 30.6 91.0 66 328.1 735.2 55
Gas purchased for resale 54.7 45.9 (19) 164.6 149.6 (10)
Diversified enterprises 118.9 96.8 (23) 546.9 392.0 (40)
Other operating and maintenance 175.4 173.2 (1) 603.8 537.9 (12)
Depreciation and amortization 43.9 51.4 15 176.6 203.6 13
Amortization of regulatory asset 17.2 - (100) 26.4 - (100)
General Taxes 24.1 22.9 (5) 102.6 123.2 17
Clinton plant impairment loss - 2,666.9 100 - 2,666.9 100
--------- --------- --------- ----------
Total 522.5 3,215.3 84 2,195.9 5,058.6 57
--------- --------- --------- ----------
Operating Income (Loss) (26.2) (2,730.7) 99 228.9 (2,628.0) 109
--------- --------- --------- ----------
Other Income
Miscellaneous - net (3.7) 0.3 - 18.7 3.1 -
Equity earnings in affiliates 6.0 10.8 (44) 12.9 22.5 (43)
--------- --------- --------- ----------
Total 2.3 11.1 (79) 31.6 25.6 23
--------- --------- --------- ----------
Income (Loss) Before Interest Charges and
Income Taxes (23.9) (2,719.6) 99 260.5 (2,602.4) 110
--------- --------- --------- ----------
Interest Charges
Interest expense 22.0 36.7 40 163.5 146.0 (12)
Allowance for borrowed funds
used during construction (0.2) 0.6 133 (4.2) (3.2) 31
Preferred dividend requirements
of subsidiary 4.8 4.9 2 19.2 19.8 3
--------- --------- --------- ----------
Total 26.6 42.2 37 178.5 162.6 (10)
--------- --------- --------- ----------
Income (Loss) Before Income Taxes (50.5) (2,761.8) 98 82.0 (2,765.0) 103
--------- --------- --------- ----------
Income Taxes
Income tax - impairment loss - (982.8) (100) - (982.8) (100)
ITC - Clinton impairment - (160.4) (100) - (160.4) (100)
Other income taxes (14.5) (36.5) (60) 41.4 (42.3) -
--------- --------- --------- ----------
Total (14.5) (1,179.7) (99) 41.4 (1,185.5) (103)
--------- --------- --------- ----------
Net Income (Loss) (36.0) (1,582.1) 98 40.6 (1,579.5) 103
Carrying amount over (under)
consideration paid for redeemed
preferred stock of subsidiary 0.2 - 100 1.7 - 100
--------- --------- --------- ----------
Net Income (Loss) Applicable to Common Stock $ (35.8)$ (1,582.1) 98 $ 42.3 $ (1,579.5) 103
========= ========= ========= ==========
Weighted average common shares 70.0 71.5 69.9 71.7
Earnings (loss) per common share (basic and diluted($0.51) ($22.13) $0.60 ($22.04)
Cash dividends declared
per common share $0.31 $0.31 $1.24 $1.24
Cash dividends paid
per common share $0.31 $0.31 $1.24 $1.24
</TABLE>
* UNAUDITED
These statements are submitted as a matter of general information and are not
intended to induce, or to be used in connection with, any sale or purchase of
securities. These statements should be read in conjunction with Illinova's and
Illinois Power Company's 1999 Quarterly Reports on Form 10-Q/A and Form 8-K and
8-K/A filings to the Securities and Exchange Commission, and Illinova and
Illinois Power Company's 1998 Form 10-K/A and 1999 Form 10-K filings to the
Securities and Exchange Commission.
