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)
August 11, 1995
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 3.
Item 5. Other Events
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Illinova Corporation (Illinova), parent of Illinois Power
Company (IP), has entered into an agreement in principle with
Soyland Power Cooperative (Soyland) for the possible purchase of
Soyland's assets. Under the proposal, IP would continue to meet
the bulk power needs of the 21 electric distribution cooperatives
who are members of and have requirements contracts with Soyland.
Soyland's member cooperatives serve approximately 160,000
customers throughout Illinois.
Under the proposal, the bulk power rates to Soyland's member
cooperatives would be lowered, based on a reduction of Soyland's
indebtedness to the Rural Utilities Service (formerly the Rural
Electrification Administration). A significant reduction in this
debt is a condition of the potential transaction. As proposed,
the transaction would not involve cash, but only the assumption
of liabilities in return for assets. If the outstanding
indebtedness is reduced and ongoing negotiations proceed
successfully in accordance with the parameters set forth in the
agreement in principle, the assets acquired would include
Soyland's 13% interest in the Clinton Power Station, Soyland's
coal-fired plant having a generating capacity of approximately 26
megawatts, and two diesel generating plants. Still under
negotiation is the extent to which the sale may include
facilities used in transmission.
The transaction is subject to further negotiation and any
definitive agreement will be subject to regulatory approvals.
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: August 28, 1995
