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Plant Sale Advancing Dynegy's Illinova Deal

Plant Sale Advancing Dynegy's Illinova Deal

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

Illinova and Dynegy on June 14 announced their intention to merge by 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 transformation process," said Charles E. Bayless, Illinova and Illinois Power CEO. "It retains tremendous economic and community benefits for Central Illinois, it provides our customers a continued power supply from Clinton, and it gives our investors greater confidence that the sale of Clinton will not be an impediment to our merger with Dynegy."

The purchase agreement, signed Wednesday, provides that Illinois Power will purchase at least 75% of Clinton's output for its customers 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 has operated at full power since June 2. The plant, a boiling water reactor, began producing electricity in 1987.

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