UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
__________
FORM
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):
October
20, 2008
|
Commission
File
Number
|
Exact
Name of Registrant as specified in its charter;
State
of Incorporation;
Address and Telephone
Number
|
IRS
Employer
Identification
No.
|
|
|
|
|
|
1-14756
|
Ameren
Corporation
(Missouri
Corporation)
1901
Chouteau Avenue
St.
Louis, Missouri 63103
(314)
621-3222
|
43-1723446
|
|
|
|
|
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1-3004
|
Illinois
Power Company
(Illinois
Corporation)
370
South Main Street
Decatur,
Illinois 62523
(217)
424-6600
|
37-0344645
|
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
[
] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Reference
is made to Part I, Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations in the Form 10-Q for the quarterly period
ended June 30, 2008, of registrant Ameren Corporation (“Ameren”) and its
registrant subsidiary Illinois Power Company, doing business as AmerenIP (“IP”),
including Liquidity and Capital Resources thereunder, and to the Current Report
on Form 8-K filed on September 19, 2008, of Ameren and IP, for a discussion of
Ameren’s and IP’s results of operations for the six months ended June 30, 2008,
and IP’s short-term borrowings and liquidity.
Item
2.02. Results of Operations and Financial
Condition.
Preliminary Third Quarter
Results of Operations (IP)
Although
results of operations of IP, for the quarter ended September 30, 2008, have not
been finalized, IP expects that its net income for the third quarter ended
September
30, 2008, will be improved compared to the same period in 2007. IP’s
net income is expected to increase during the three months ended September 30,
2008, compared to the year-ago period, primarily due to the implementation of
redesigned seasonal electric delivery service rates effective January 1, 2008,
and the reduced impact in the current quarter of the 2007 Illinois electric
settlement agreement, partially offset by unfavorable weather conditions and
higher bad debt and interest expenses.
Preliminary Third Quarter
Results of Operations (Ameren)
Although
the results of operations of Ameren for the quarter ended September 30, 2008,
have also not been finalized yet, Ameren expects that its consolidated net
income for the third quarter ended September 30, 2008, will be less than that
reported in the comparable period in 2007. Ameren’s net income is
expected to have decreased during the three months ended September 30, 2008,
compared to the prior-year period, primarily due to unfavorable weather
conditions and increased operations and maintenance expenses, partially offset
by the implementation of redesigned seasonal electric delivery service rates in
Illinois. When Ameren releases its third quarter 2008 earnings
results in early November, it expects to narrow its full year core (non-GAAP)
earnings per share guidance within the 2008 core earnings guidance range it
provided on August 1, 2008. For the third quarter ended September 30, 2008, GAAP
net income is expected to be reduced by net unrealized mark-to-market losses
from nonqualifying hedges and net costs associated with the 2007 Illinois
electric settlement agreement, each of which are excluded from core (non-GAAP)
earnings. These aggregate costs in the third quarter of 2008 are expected
to be at a similar level to the cost of these items recorded in the comparable
period of 2007.
Results
for the third quarter of 2008 are not necessarily indicative of results for a
full year.
Item
8.01. Other Events.
Proposed IP Senior Secured
Notes Financing
IP
intends to privately offer its senior secured notes (the “Senior Secured
Notes”), which will be secured by a series of its mortgage bonds. The
Senior Secured Notes to be offered have not been registered under the Securities
Act of 1933 (the “Securities Act”) pursuant to an exemption from the
registration requirements of the Securities Act and may not be offered or sold
in the United States absent registration or an available
exemption. Accordingly, the Senior Secured Notes will be offered only
to qualified institutional buyers under Rule 144A under
the Securities Act, to a limited number
of institutional
“accredited investors” and outside the United States to non-U.S. persons under
Regulation S.
IP and
other Ameren subsidiaries, Central Illinois Public Service Company, Central
Illinois Light Company, CILCORP Inc. and AmerenEnergy Resources Generating
Company (collectively, the “Illinois Borrowers”), are parties to two
separate $500 million credit facilities (the “credit facilities”). As
of September 30, 2008, collectively, the Illinois Borrowers had outstanding
borrowings of $832 million, and, individually, IP had outstanding borrowings of
$304 million, under the credit facilities. In addition, through
Ameren’s utility money pool, an arrangement among Ameren and its utility
subsidiaries to coordinate and provide for certain short-term cash and working
capital requirements, IP has access to Ameren’s $1.15 billion credit facility,
which, at September 30, 2008, had outstanding borrowings of $275 million.
IP plans to use the net proceeds from the sale of the Senior Secured Notes to
repay outstanding borrowings under the credit facilities and/or under the Ameren
utility money pool.
IP
believes it will continue to have access to the capital markets. Accordingly,
assuming IP refinances $250 million of our 7.50% Series Mortgage Bonds due in
2009, and IP completes the sale of the Senior Secured Notes, IP believes that,
based on its expected liquidity needs (and the liquidity needs of the other
Illinois Borrowers), it will have sufficient availability under the credit
facilities, together with expected cash balances and cash flow from operations,
to finance its operations, at a minimum, through the end of
2009. In addition, IP is actively evaluating its spending plans
consistent with its liquidity objectives given current capital market
conditions. Through the Ameren utility money pool, to the extent not
utilized by the other pool participants, IP also expects to have access to
Ameren's $1.15 billion credit facility and may elect to access the capital
markets at its discretion during this time.
--------------------------------
Regulation G Statement.
Ameren’s core (non-GAAP) earnings per share guidance excludes the earnings
impact of the 2007 Illinois electric settlement agreement, net unrealized
mark-to-market gains or losses from nonqualifying hedges, the estimated minimum
benefit of an accounting order from the Missouri Public Service Commission
associated with 2007 storm costs and the 2008 lump-sum payment from a coal
supplier for expected higher fuel costs in 2009 as a result of the premature
closure of a mine and termination of a contract. Ameren uses core (non-GAAP)
earnings internally for financial planning and for analysis of performance.
Ameren also uses core (non-GAAP) earnings as primary performance measurements
when communicating with analysts and investors regarding it earnings results and
outlook, as Ameren believes it allows it to more accurately compare the
company’s ongoing performance across periods.
In
providing core (non-GAAP) earnings guidance, there could be differences between
core (non-GAAP) earnings and earnings prepared in accordance with GAAP for
certain items, such as those listed above. Ameren is unable to estimate the
impact, if any, on future GAAP earnings of certain items, such as the ultimate
earnings impact of the Missouri Public Service Commission storm cost-related
order, or net mark-to-market gains or losses from nonqualifying
hedges.
Forward-Looking
Statements. We make statements in this report that are
considered forward-looking statements within the meaning of the Securities
Exchange Act of 1934. These statements are not guarantees of future
performance and are subject to risks, uncertainties, and other important factors
that
could cause actual performance or achievements to be materially different from
those we project. For a full discussion of risks, uncertainties, and
other important factors, we encourage you to read our documents on file with the
Securities and Exchange Commission, including those set forth in our Forms 10-K
and 10-Q under the forward-looking statements and risk factors
sections. Except as required by law, we do not intend to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise.
This
combined Current Report on Form 8-K is being filed separately by Ameren and IP
(each, a “registrant”). Information contained herein relating to any
individual registrant has been filed by such registrant on its own
behalf. No registrant makes any representation as to information
relating to any other registrant.
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, each registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized. The signature for each undersigned company shall be
deemed to relate only to matters having reference to such company or its
subsidiaries.
AMEREN
CORPORATION
(Registrant)
By /s/ Jerre E.
Birdsong
Name: Jerre
E. Birdsong
Title: Vice
President and Treasurer
ILLINOIS
POWER COMPANY
(Registrant)
By /s/ Jerre E.
Birdsong
Name: Jerre
E. Birdsong
Title: Vice
President and Treasurer
Date: October
20, 2008
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