AmerGen Energy Co. agreed to buy Illinois Power Co.’s Clinton(IL) Power Station pending regulatory approval. The agreement tosell the nuclear station moves Illinois Power parent Illinova Corp.closer to meeting a condition of its recently announced merger withDynegy Inc.

Illinova and Dynegy on June 14 announced their intention to mergeby early 2000, contingent on Illinova’s divesting its nuclear assets(See Daily GPI June 15, 1999).

“This agreement is a milestone in our company’s transformationprocess,” said Charles E. Bayless, Illinova and Illinois Power CEO.”It retains tremendous economic and community benefits for CentralIllinois, it provides our customers a continued power supply fromClinton, and it gives our investors greater confidence that thesale of Clinton will not be an impediment to our merger withDynegy.”

The purchase agreement, signed Wednesday, provides that IllinoisPower will purchase at least 75% of Clinton’s output for itscustomers through 2004. At closing, AmerGen will pay Illinois Power$20 million for the plant and property and will assume operations.

Following an extended outage lasting more than two years,Clinton Power Station was returned to service May 27 and hasoperated at full power since June 2. The plant, a boiling waterreactor, began producing electricity in 1987.

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