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): June 10, 1998
Interstate Energy Corporation
(Exact name of registrant as specified in its charter)
Wisconsin 1-9894 39-1380265
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
222 West Washington Avenue, Madison, Wisconsin 53703
(Address of principal executive offices, including zip code)
(608) 252-3311
(Registrant's telephone number)
Item 5. Other Events.
On June 10, 1998, Wisconsin Power and Light Company ("WP&L"), a
subsidiary of Interstate Energy Corporation (d/b/a Alliant Corporation),
announced a preliminary agreement relating to the replacement of the steam
generators at the Kewaunee Nuclear Power Plant ("Kewaunee") and the
transfer by Madison Gas & Electric Company ("MG&E") of its interest in
Kewaunee. A copy of the press release issued announcing the preliminary
agreement is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Pursuant to the preliminary agreement, MG&E will transfer its 17.8%
interest in Kewaunee to Wisconsin Public Service Corporation ("WPSC") in
exchange for an interest in a natural gas-fired combustion turbine
generating plant owned by WPSC. Following the ownership transfer, WPSC
will own a 59% interest in Kewaunee. WP&L's interest in Kewaunee will
remain at 41%. Under the preliminary agreement, and following the
ownership transfer, the steam generators at Kewaunee will be replaced at
an estimated cost of approximately $90 million. WP&L's share of such cost
is expected to be approximately $37 million.
The preliminary agreement is subject to (i) approval of the Board
of Directors of each company, (ii) the parties reaching agreement on final
purchased power arrangements and on amendments to the joint operating
agreement, and (iii) approval by the Nuclear Regulatory Commission of the
transfer of the ownership interest in Kewaunee. The agreement between
WP&L and WPSC to replace the steam generators also remains subject to
Public Service Commission of Wisconsin approval of the regulatory and
ratemaking accounting treatment requested by the companies as well as the
transfer of MG&E's ownership interest in Kewaunee. If the requisite
approvals are obtained, it is expected that the ownership transfer and
steam generator replacement would begin in the spring of 2000.
This Current Report on Form 8-K includes forward-looking
statements. These forward-looking statements can be identified as such
because the statements include words or phrases such as "estimated" or "it
is expected" or words of similar import. Similarly, statements that
describe future plans are also forward-looking statements. Such
statements are subject to certain risks and uncertainties which could
cause actual results to differ materially from those currently
anticipated. Factors which could affect actual results include
unanticipated events impacting regulatory approval of the preliminary
agreement described above and unexpected costs or unanticipated
difficulties associated with the replacement of the steam generators at
Kewaunee. These factors should be considered in evaluating the forward-
looking statements, and undue reliance should not be placed on such
statements. The forward-looking statements included herein are made as of
the date hereof and Interstate Energy Corporation undertakes no obligation
to update publicly such statements to reflect subsequent events or
circumstances.
Item 7. Financial Statements and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibits.
The exhibit listed in the accompanying Exhibit Index is
filed as part of this Current Report on Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
INTERSTATE ENERGY CORPORATION
Date: June 18, 1998. By: /s/ Erroll B. Davis, Jr.
Erroll B. Davis, Jr.
President and Chief Executive Officer
INTERSTATE ENERGY CORPORATION
EXHIBIT INDEX TO FORM 8-K
Dated June 10, 1998
Exhibit
No.
(99.1) Press release, dated June 10, 1998, announcing a
preliminary agreement relating to the replacement
of the steam generators at the Kewaunee Nuclear
Power Plant ("Kewaunee") and the transfer by
Madison Gas & Electric Company of its interest in
Kewaunee