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 the Report
(date of earliest event reported):
June 20, 1996
Commission Registrant; State of Incorporation; IRS Employer
File Number Address; and Telephone Number Identification No.
1-10628 CIPSCO INCORPORATED 37-1260920
(An Illinois Corporation)
607 East Adams Street
Springfield, Illinois 62739
217-523-3600
1-3672 CENTRAL ILLINOIS PUBLIC SERVICE COMPANY 37-0211380
(An Illinois Corporation)
607 East Adams Street
Springfield, Illinois 62739
217-523-3600
Item 5. Other Events.
Reference is made to Item 1. Business under the captions Utility
Subsidiary - Central Illinois Public Service Company,
Construction Program and Financing, Fuel and Environmental
Matters, to Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations under the captions
Capital and Financing Requirements and Fuel Strategies, and to
Note 4. Commitments and Contingencies - Clean Air Act, Fuel
Strategies and Environmental Matters in the Consolidated Notes to
Financial Statements all as shown in the 1995 CIPSCO and CIPS
combined Annual Report on Form 10-K for information regarding
fuel strategies, capital requirements and environmental matters.
On June 20, 1996 CIPS and Amax Coal Company, a Cyprus Amax
Minerals company ("Cypress Amax"), a coal supplier for CIPS'
Newton Power Station Unit 1, executed a letter of intent which
contemplates that the parties will enter into an amendment to
their existing contract. Under the amendment, CIPS would make a
$70 million prepayment to Cyprus Amax (scheduled for November
1996) rather than buy high-cost, high-sulfur coal under the
existing contract. CIPS will cease taking delivery of high-
sulfur coal from the Delta mine of Cyprus Amax, located near
Harrisburg in southern Illinois. CIPS will make certain
alternate low-sulfur, out-of-state coal purchases from Cyprus
Amax or its affiliates during 1996. The final agreement is to
provide options for future low-sulfur, out-of-state coal
purchases by CIPS from Cyprus Amax or its affiliates in 1997,
1998 and 1999.
CIPS issued a press release describing further details of the
transaction which is filed herewith as an exhibit and
incorporated herein by reference.
Effectiveness of the coal switching plan is subject to execution
of definitive agreements by the parties. Under the letter of
intent, CIPS would not be required to proceed with the proposed
amendments to the existing contract if CIPS determines that the
regulatory treatment of the transaction is unsatisfactory. CIPS
cannot predict the outcome of such regulatory review.
Management anticipates that future compliance with applicable
environmental regulations will be met through use of low-sulfur
coal.
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
(a) Financial Statements - None
(b) Pro Forma Financial Information - None
(c) Exhibits
Exhibit 99 Press release of Central Illinois Public
Service Company, dated June 21, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants CIPSCO Incorporated and Central Illinois
Public Service Company have duly caused this report to be signed
on each registrant's behalf by the undersigned hereunto duly
authorized.
CIPSCO Incorporated
(Registrant)
Central Illinois Public Service Company
(Registrant)
/s/ W. A. Koertner
Date: June 21, 1996 _______________________________________
W. A. Koertner
Vice President of each Registrant
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CENTRAL ILLINOIS PUBLIC SERVICE COMPANY
EXHIBIT INDEX TO FORM 8-K
WHICH REPORTS THE EVENT DATED JUNE 20, 1996
Page Number in
Sequentially
Exhibit No. Description Numbered System
___________ ___________ _______________
99 Press release announcing, among 6-7
other things, fuel contract
modification with Amax Coal
Company, switching fuels at
Newton Unit 1 and discontinued
use of the scrubber.
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