-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EIiCvsJ555t4pTVzEO6OxKwBUcFIHaRNd7WtnqHoEOIFCuukZYX7Nit3ls6ie9FP Eq3zdd134tZWpb7dLRHmWQ== 0000049816-98-000002.txt : 19980109 0000049816-98-000002.hdr.sgml : 19980109 ACCESSION NUMBER: 0000049816-98-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980107 ITEM INFORMATION: FILED AS OF DATE: 19980108 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ILLINOIS POWER CO CENTRAL INDEX KEY: 0000049816 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 370344645 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03004 FILM NUMBER: 98502435 BUSINESS ADDRESS: STREET 1: 500 S 27TH ST STREET 2: C/O HARRIS TRUST & SAVINGS BANK CITY: DECATUR STATE: IL ZIP: 62525-1805 BUSINESS PHONE: 2174246600 FORMER COMPANY: FORMER CONFORMED NAME: ILLINOIS IOWA POWER CO DATE OF NAME CHANGE: 19660822 8-K 1 ILLINOVA 8K 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 16, 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 4. PAGE> Item 5. Other Events - -------------------------- Illinois Power selects PECO Nuclear to manage Clinton Power Station Illinois Power has selected PECO Energy Company of Philadelphia, Pennsylvania to provide management services for Clinton Power Station. The new management team initially will consist of about six to eight people in key positions, including chief nuclear officer and plant manager. Effective January 5, 1998, Walter G. MacFarland IV, vice president at PECO's Limerick Generating Station, is Illinois Power's chief nuclear officer and reports to Larry Haab. Although a contracted team will manage the plant, Illinois Power will continue to maintain the license for Clinton Power Station's operation and retain ultimate oversight of the plant. The plant will remain staffed primarily by Illinois Power employees. PECO operates the Limerick and Peach Bottom nuclear generating stations. Each station has two boiling water reactors, similar to the one at Clinton. Both plants have set performance records for long operating runs and short refueling outages, and both plants have currently received excellent performance ratings from the NRC and Institute of Nuclear Power Operations (INPO.) PECO also has experienced the rebuilding process. In 1987, the NRC ordered the Peach Bottom station shut down because of operator inattention to duty. Bringing the plant back on-line took almost two years, but the turn-around was dramatic. Peach Bottom and Limerick now are recognized as among the best-performing nuclear facilities in the world. Illinois Power believes that bringing in PECO's experienced management team is the quickest, most efficient and most effective way to get Clinton back on line and operating at a superior level. Regulatory and Accounting Matters For additional regulatory reform legislation discussion, see Illinova's third quarter 10-Q under "Open Access and Competition" in "Regulatory and Legal Matters" of the "Notes to Consolidated Financial Statements." On December 16, 1997, Governor Jim Edgar signed Illinois House Bill 362. Illinova has been studying the impacts of Illinois House Bill 362 and the efforts required to return the Clinton Power Station to full operation. Management expects that these matters will result in a fourth quarter 1997 charge of up to $260 million (net of income taxes) or $3.51 per share. The amount is made up of the following items: Writing off generation-related regulatory and other assets of approximately $195 million (net of income taxes) due to the enactment of Illinois regulatory reform legislation. Accruing up to $40 million (net of income taxes) in expenses to reflect the currently estimable incremental costs necessary to achieve a return to full operation and implementation of a recovery plan at the Clinton Power Station. Recording operational accruals of approximately $25 million (net of income taxes). Without the recognition of the aforementioned charges, Illinova would have expected its 1997 earnings per share to be no greater than $1.85. 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/Leah Manning Stetzner --------------------------- Leah Manning Stetzner General Counsel and Corporate Secretary on behalf of Illinova Corporation Date: January 7, 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/Leah Manning Stetzner --------------------------- Leah Manning Stetzner Vice President, General Counsel, and Corporate Secretary on behalf of Illinois Power Company Date: January 7, 1998 -----END PRIVACY-ENHANCED MESSAGE-----