Texas Energy Provider Sells Illinois Power for $2.3 Billion

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The Houston-based energy provider says Ameren agreed to buy the Illinois electric utility for about $500 million in cash. The purchase also involves $1.8 billion in assumed debt and preferred stock.

Ameren will also get Dynegy's 20 percent interest in a coal-fired power plant in Joppa, Illinois, which has already received required regulatory approvals.

Illinois Power will buy from Dynegy up to 2,800 megawatts of generating capacity and more than 11 million megawatt-hours of energy each year through 2006. That would provide enough power to serve about 70 percent of Illinois Power's customer demand.