St Louis based utility Ameren Corporation is getting rid of its troubled Illinois power generating business.
They claim dumping the Illinois coal plants will reduce business risk, improve earnings and strengthen its balance sheet. Ameren executives say the company will focus on its utilities and the expansion of its transmission system.
Dynegy Inc. will buy the five Ameren coal-fired power plants representing more than 4,100 megawatts of generating capacity as well as Ameren’s power marketing business.
Ameren will receive no cash in the deal, but it will benefit by offloading $825 million of debt tied to the generating business. The company said it will also realize $180 million in tax benefits.
