8-KOther Events

AMEREN CORP 8-K Report, Corporate Update (Nov 21, 2013)

Filed November 21, 2013For Securities:AEE

Summary

This Form 8-K filing from Ameren Corporation (AEE) on November 21, 2013, primarily addresses a significant condition related to the divestiture of its merchant generation business. The Illinois Pollution Control Board (IPCB) granted a variance in favor of Illinois Power Holdings, LLC (IPH), a subsidiary of Dynegy, Inc., concerning SO2 emissions compliance dates. This variance was a crucial prerequisite for the completion of Ameren's sale of its merchant generation assets to IPH. The transaction, previously discussed in Ameren's 2012 10-K and 2013 10-Q filings, is expected to close in December 2013. The granting of this IPH Variance removes a key hurdle and signals that the divestiture is moving forward as planned, which is important for investors to understand Ameren's strategic shift away from its merchant generation segment.

Key Highlights

  • 1The Illinois Pollution Control Board (IPCB) granted a variance related to SO2 emissions compliance dates.
  • 2The variance is in favor of Illinois Power Holdings, LLC (IPH), the intended buyer of Ameren's merchant generation business.
  • 3Receipt of this variance was a condition precedent to closing the divestiture transaction.
  • 4The divestiture of Ameren's merchant generation business to IPH is expected to be completed in December 2013.
  • 5This filing clarifies a key regulatory step required for the completion of the previously announced divestiture.
  • 6The transaction involves Ameren Energy Resources Company, LLC (AER) and AmerenEnergy Medina Valley Cogen, LLC, who jointly requested the variance with IPH.

Frequently Asked Questions

The main purpose of this filing is to report that the Illinois Pollution Control Board (IPCB) granted a necessary variance (the IPH Variance) that was a condition for the completion of Ameren's divestiture of its merchant generation business to Illinois Power Holdings, LLC (IPH).

The divestiture of Ameren's merchant generation business to IPH is expected to be completed in December 2013.

The IPH Variance is significant because it addresses SO2 emissions compliance dates and was a critical condition that needed to be met before Ameren could finalize the sale of its merchant generation assets to IPH. Its granting removes a major obstacle to the transaction's closure.

The key parties involved are Ameren Corporation, its subsidiary Ameren Energy Resources Company, LLC (AER), AmerenEnergy Medina Valley Cogen, LLC, and the buyer, Illinois Power Holdings, LLC (IPH), which is an indirect wholly owned subsidiary of Dynegy, Inc.