-----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, Onwy3ciLpyZrqr2Nkn4cV5un/pzqXQLBYl4aA5hY7fXKvBFm4LMWX53KP84lQhH7 e5QOiCur6FjJiY10L7k3lQ== 0000049816-98-000035.txt : 19981126 0000049816-98-000035.hdr.sgml : 19981126 ACCESSION NUMBER: 0000049816-98-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19981124 ITEM INFORMATION: FILED AS OF DATE: 19981125 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: 98760016 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 8-K FILING TO SEC ON 11/24/98 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) November 25, 1998 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 62521 (217) 424-6600 1-3004 Illinois Power Company 37-0344645 (an Illinois Corporation) 500 S. 27th Street Decatur, IL 62521 (217) 424-6600 Total number of sequentially numbered pages is 7. 1 Item 7. Exhibits - -------------------------------------------------------------------------------- (c) Exhibits (99.1) Letter to the Financial Community, dated November 24, 1998 (99.2) Press Release, dated November 24, 1998 2 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 25, 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/ Larry F. Altenbaumer --------------------------- Larry F. Altenbaumer Senior Vice President and Chief Financial Officer on behalf of Illinois Power Company Date: November 25, 1998 3 Exhibit Index The following Exhibits are hereby filed as part of this Current Report on Form 8-K: Exhibit Number Description 99.1 Letter to the Financial Community, dated November 24, 1998 99.2 Press Release, dated November 24, 1998 4 EX-99 2 EX-99.1 LETTER TO FINANCIAL COMMUNITY, 11/24/98 EXHIBIT 99.1 Larry F. Altenbaumer Chief Financial Officer, Treasurer and Controller Illinova Corporation 500 South 27th Street P.O. Box 511 Decatur, IL 62525-1805 Tel 217 424-6678 Fax 217 362-7417 November 24, 1998 Members of the Financial Community: Illinova/Illinois Power Company (Company) has received Security and Exchange Commission (SEC) concurrence regarding the use of quasi-reorganization accounting treatment in the event that the Company decides to sell or shutdown the Clinton Power Station (Clinton). Attached is the Company's press release announcing the decision of the SEC. The announcement of the SEC's concurrence with the accounting treatment proposed by the Company should not be considered as tantamount to a decision on the status of Clinton. However, the receipt of such concurrence by the SEC is a very important factor as the Company's Board of Directors evaluates the options of continued operation, sale or shutdown of the nuclear generating station. The Board will be reviewing these options at its December 9 meeting and may make a decision on the option to be pursued at the time. Please refer to the Company's most recent 10-Q filed with the SEC for the quarter ending September 30, 1998, for a more complete description and the potential implications of a quasi-reorganization. Since approval of the quasi-reorganization accounting treatment is only one factor the Board will consider in reaching a decision regarding Clinton, the Company is not in a position at this time to provide any new guidance as to the financial consequences of a Clinton sale or shutdown and the application of quasi-reorganization accounting. Please contact Bob Schultz (217-424-8780), Eric Weekes (217-362-7635), Cindy Steward (217-362-7633) or me if you have any questions. Sincerely, /s/ Larry F. Altenbaumer Larry F. Altenbaumer EX-99 3 EX-99.2 PRESS RELEASE, DATED NOVEMBER 24, 1998 EXHIBIT 99.2 For release: Nov. 24, 1998 ILLINOIS POWER RESOLVES FINANCIAL ISSUE SURROUNDING POTENTIAL SALE OF ITS CLINTON POWER STATION Accounting treatment for nuclear exit clarified DECATUR, Ill. (Nov. 24, 1998) -- Illinois Power announced today it has resolved a financial issue that would need to be addressed in the event it decides to sell or shut down the Clinton Power Station, its 950-megawatt nuclear generating facility. Illinois Power Controller Cindy G. Steward said the company is considering writing up the value of its fossil generating assets and writing down the value of its nuclear assets to reflect current market values, a move that would be taken only in conjunction with a decision to exit the nuclear business. The Securities and Exchange Commission this week confirmed for Illinois Power that such an accounting procedure would be acceptable if the company decides to exit the nuclear business. This determination removes a significant uncertainty and alleviates financial difficulties that otherwise could stem from the sale or shutdown of the plant. "Our goal is to resolve the financial risks of operating a single-unit nuclear plant," Steward said. "The SEC's concurrence with this accounting treatment is valuable input to our board's decision. This can give us an ILLINOIS POWER Nov. 24, 1998 Page 2 opportunity for a fresh start as we position Illinois Power and Illinova for swiftly changing and increasingly competitive energy markets." This accounting procedure, called a quasi-reorganization, is a transaction whereby a company restates the value of all its assets and liabilities to current market value. This would require the company to write down to market value the Clinton Station -- whose current book value, net of tax, is approximately $1.6 billion but whose market value is considerably less -- and write up to market value its fossil generating stations -- older assets that have been depreciated to a book value of approximately $500 million but whose market value is far greater. The write-down of the company's nuclear assets would result in a charge to earnings while the fossil write-up would be a direct increase to equity. Illinois Power's Board of Directors likely will make a decision by year's end regarding the Clinton Station. Exploring a potential sale is just one of the alternatives the company is evaluating. Other options include continuing to own and operate the plant, closing it, or forming a consortium with other nuclear station operators. -----END PRIVACY-ENHANCED MESSAGE-----