Ameren on course to buy Illinois Power Company

Missouri-based Ameren would acquire the stock of IP and Dynegy’s 20% interest in Electric Energy Inc (EEI), which owns a 1,086-megawatt coal-fired power plant based in Joppa, Illinois. Ameren currently owns 60% of EEI. It would assume IP’s estimated $1.8 billion of debt, pay Dynegy $375 million in cash and pay an additional $100 million that will be placed in escrow.

The transaction would also include a new power supply contract under which IP would annually buy 2,800 megawatts (MW) of elect