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)
November 21, 1997
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.
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Item 5. Other Events
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Attached is a copy of a communication provided to the media on November 21,
1997.
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For release: Nov. 21, 1997
For more information: Shirley J. Swarthout (217) 424-6400
ILLINOIS POWER RELEASES RESULTS
OF INDEPENDENT ASSESSMENT OF CLINTON POWER STATION
CEO "Absolutely Committed" To Excellence At Nuclear Power Plant
DECATUR, Ill. -- Illinois Power today released findings from an independent
team of nuclear industry professionals that identified underlying causes of
Clinton Power Station's recent decline in performance. The company also
reiterated its commitment to operating Clinton at a level of excellence and
outlined the steps it is taking to do so.
"We knew from the beginning that a thorough and critical review of Clinton
would be a painful process, but it was the right thing for us to do," said
Illinois Power Chief Executive Officer Larry D. Haab at a press conference here
today. "I am absolutely committed to excellence at Clinton and I have pledged to
make it my highest priority."
The Integrated Safety Assessment (ISA) Team specifically examined strengths
and weaknesses in Clinton's management, operations, engineering, maintenance and
plant support. The team was asked to evaluate Clinton as it compares to those
nuclear plants considered the best in the industry, not just to minimum industry
standards. Illinois Power initiated the independent assessment of the plant and
its performance in June. The company chose Edward D. Fuller, recent past
president of the American Nuclear Society and 37-year veteran of
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ILLINOIS POWER
Nov. 21, 1997
Page 2
the nuclear power industry, to lead the assessment of the 950-megawatt nuclear
generating facility. Fuller assembled the team of more than 30 industry experts,
none of whom had any significant prior involvement with the Clinton plant.
Findings Of The ISA
The ISA report concluded that the underlying reasons for the performance
problems at Clinton were ineffective leadership throughout the organization in
providing standards of excellence; complacency throughout the organization;
barrier weaknesses; and weaknesses in teamwork.
Summarizing the group's findings, Fuller said, "In spite of a willing
workforce and a solid operational record through 1995, Clinton was unable to
keep pace with rising standards of excellence in the nuclear industry. There was
complacency and only limited critical self-assessment, which led to a tolerance
of sub-standard performance in many elements of Clinton's organization."
Although the primary focus of the ISA was on opportunities for improvement, the
report cites areas of strengths at Clinton, including its willing and loyal work
force. The report also commends Illinois Power for responding well to the ISA
findings and "quickly acknowledging the issues and undertaking to address them."
Developing A Plan For Excellence
The company outlined the steps it is taking in response to the ISA
findings. Haab stated that, on the whole, the report accurately captures the
problems and challenges facing Clinton.
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ILLINOIS POWER
Nov. 21, 1997
Page 3
"Clearly, our initial response to the problems at Clinton was not
adequate," said Haab. "Rather than stepping back and looking at the problem from
a long-term perspective, we looked at it from a very narrow perspective. As a
result, we took a series of ineffectual half-steps. We focused on equipment
issues, when human issues were the underlying problem."
Based on observations during the ISA and the company's own internal
discussions, Haab said, Illinois Power realized that it needed to develop an
integrated plan that focuses first on improving human performance.
"I have tremendous faith and confidence in the employees at Clinton,"
continued Haab. "They have the ability to operate Clinton at the highest level,
and I know that, working together, we can address the leadership and cultural
hurdles that have prevented us from achieving excellence.
"We are currently developing a comprehensive 'Plan For Excellence' to
address the issues raised in the ISA report," continued Haab. "This plan will
serve as a road map for us as we raise standards at Clinton."
Haab expects the plan to be completed in the first quarter of 1998.
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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: November 21, 1997
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: November 21, 1997
