Utility companies confirm sale talks

DECATUR, Ill. -- Ameren Corp. and the parent of Illinois Power Co. announced Friday they are negotiating a possible sale of the Decatur-based utility. Ameren, the parent of AmerenCIPS, AmerenCILCO and AmerenUE, has about 970,000 customers; IP serves about 670,000. The companies' service areas reach from towns such as Wedron, Mendota and Earlville in northern Illinois to Ullin, Thebes and Sauget in Southern Illinois.

Illinois Power has been on the market since Exelon Corp. ended negotiations with Houston-based Dynegy on Nov. 22, the day after legislation designed to put a sale on a fast track failed in the Illinois General Assembly.

Exelon is parent of Chicago-based ComEd, the state's largest utility company, with about 3.4 million electricity customers in northern Illinois.

Since the Exelon deal fell apart, Dynegy has been exploring other options for Illinois Power. Decatur city officials said they knew nothing of negotiations involving Ameren until Friday afternoon.

"We're hoping what it means is that they'll make the same commitment that Exelon did as far as keeping the same number of employees and keeping (Illinois Power's) headquarters in Decatur," City Manager Steve Garman said.

Shares in Ameren closed at $44.83, down 27 cents, on the New York Stock Exchange. Dynegy shares closed at $3.98, down 9 cents.

------

On the Net:

Illinois Power Co.: http://www.illinoispower.com

Ameren Corp.: http://www.ameren.com

Dynegy Corp.: http://www.dynegy.com