EXHIBIT 99.1
[GRAPHIC OMITTED][GRAPHIC OMITTED] One Ameren Plaza
News Release 1901 Chouteau Avenue
St. Louis, MO 63103
Contacts:
Media: Analysts: Investors:
Susan Gallagher Leigh Morris Shirley Swarthout Bruce Steinke Investor Services
(314) 554-2175 (217) 535-5228 (217) 424-7554 (314) 554-2574 invest@ameren.com
AMEREN COMPLETES PURCHASE OF ILLINOIS POWER COMPANY
St. Louis, Mo., Oct. 1, 2004---Ameren Corporation (NYSE: AEE) today announced
that the company has completed the acquisition of Decatur, Ill.-based Illinois
Power Company (IP) from Dynegy Inc. (NYSE: DYN) with Sept. 30 as the effective
date. IP--now doing business as AmerenIP--serves approximately 600,000 electric
and 415,000 natural gas customers over 15,000 square miles in Illinois.
In a transaction valued at approximately $2.3 billion, Ameren assumed
approximately $1.8 billion in Illinois Power (IP) debt and preferred stock,
placed $100 million in a six-year escrow account for certain contingent
environmental liabilities and paid the balance in cash to Dynegy. In addition to
IP's transmission and distribution system assets, the acquisition also included
the purchase of Dynegy's 20 percent interest in Electric Energy, Inc. (EEI)--the
owner of a 1,086-megawatt, Joppa, Ill., coal-fired power plant. Prior to the
acquisition, Ameren owned 60 percent of EEI.
The transaction includes a new firm capacity power supply contract for the
annual purchase by IP of 2,800 megawatts of electricity from a subsidiary of
Dynegy. That contract for 2005 and 2006 is expected to supply approximately 70
percent of IP's electric customer requirements. Illinois Power is currently
soliciting bids to supply its remaining electric requirements. Because bundled
retail electric rates are frozen at current levels in Illinois through 2006, the
acquisition will not have an immediate impact on retail electric rates paid by
customers of IP (AmerenIP).
"We are extremely pleased to complete the purchase of Illinois Power. We
also appreciate the timely approvals of this transaction by the various
regulatory agencies, including the Illinois Commerce Commission, the Federal
Energy Regulatory Commission and the Securities and Exchange Commission. In
particular, we would like to recognize FERC Chairman Pat Wood and ICC Chairman
Ed Hurley for their leadership and hard work in this matter. At the end of the
day, we believe the regulatory authorities recognized, as we did, the
significant benefits of this transaction, which, as a natural fit with Ameren's
existing business, will bring significant benefits to customers, communities,
investors and employees of both companies," said Gary L. Rainwater, chairman,
president and chief executive officer, Ameren Corporation. "Acquiring IP
provides a long-term growth opportunity for our company, while enhancing our
ability to continue to deliver high-quality service to the nearly two million
electric and natural gas customers we now serve in the state of Illinois."
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The transaction was unanimously approved by both companies' boards of
directors and received approval from the Illinois Commerce Commission (ICC), the
Securities and Exchange Commission (SEC), the Federal Energy Regulatory
Commission (FERC) and the Federal Communications Commission (FCC). In addition,
the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of
1976 expired without a request by the Federal Trade Commission and the Antitrust
Division of the Department of Justice for additional information or documents.
In February when Ameren and Dynegy announced the agreement, Ameren also
announced a number of commitments: These included an immediate contribution of
$300,000 to the Decatur and other IP service area United Way organizations. The
company also made the following post-closing commitments:
>> The headquarters of AmerenIP will remain in Decatur for not less than five
years.
>> AmerenIP work force reductions resulting from the acquisition will not
exceed 25 employees for a period of four years, except to the extent such
additional reductions occur through attrition or voluntary separation
programs.
>> AmerenIP employees, retirees and those retirees' surviving dependents will
remain in their current IP benefit plans or be moved into appropriate
Ameren plans, and AmerenIP will honor all existing labor agreements.
>> Ameren will commit between $275 million and $325 million in energy
infrastructure investments over its first two years of ownership.
>> Ameren will increase total contributions to United Way, civic, charitable
and social service organizations in AmerenIP's service territory to at
least $1.5 million annually.
>> In keeping with Ameren's strong track record of supporting economic
development throughout its service areas, Ameren will commit additional
resources to support and enhance economic development aimed at attracting
new jobs in the IP service territory.
With the acquisition of IP, Ameren assets total approximately $17 billion.
Ameren owns a diverse mix of electric generating plants strategically located in
its Midwest market with a capacity of more than 14,800 megawatts. Ameren serves
2.3 million electric customers and more than 900,000 natural gas customers in
Missouri and Illinois.
Forward-Looking Statements
Statements made in this release, which are not based on historical facts, are
"forward-looking" and, accordingly, involve risks and uncertainties that could
cause actual results to differ materially from those discussed. Although such
"forward-looking" statements have been made in good faith and are based on
reasonable assumptions, there is no assurance that the expected results will be
achieved. These statements include (without limitation) statements as to future
expectations, beliefs, plans, strategies, objectives, events, conditions, and
financial performance. In connection with the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the company is providing this
cautionary statement to identify important factors that could cause actual
results to differ materially from those anticipated. The following factors, in
addition to those discussed elsewhere in this release and in past and subsequent
filings with the Securities and Exchange Commission, could cause actual results
to differ materially from management expectations as suggested by such
"forward-looking" statements: difficulties in integrating Illinois Power with
Ameren's other businesses; and changes in the energy markets, environmental laws
or regulations, interest rates or other factors adversely impacting assumptions
in connection with the Illinois Power acquisition.
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