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Dynegy has reached an agreement to sell its Illinois Power utility in a deal that would reduce its debt and strengthen its balance sheet. Houston-based Dynegy was expected this morning to announce a deal, valued at about $2.2 billion, to sell Illinois Power to Exelon Corp., Bruce Williamson, Dynegy's president and chief executive officer, told the Houston Chronicle on Sunday. As part of the deal, Exelon would assume about $1.8 billion in Illinois Power debt, he said, adding: "That's a big chunk of debt to go away." Dynegy has been working to reduce its debt. With a sale, Dynegy's work...

HOUSTON--(BUSINESS WIRE)--Sept. 26, 2003--Dynegy Inc. (NYSE:DYN) today announced that it is engaged in exclusive discussions with Exelon Corp. (NYSE:EXC) related to a possible sale of Illinois Power Company, Dynegy's regulated energy delivery business. Any transaction between the parties would be subject to satisfactory completion of Exelon's due diligence, negotiation of final terms and structure, negotiation and execution of definitive agreements, receipt of board of directors and required regulatory approvals and other conditions. Dynegy does not anticipate making any further announcement about this potential transaction until a definitive agreement is reached or discussions are terminated. Dynegy Inc. provides electricity, natural gas...

Dynegy is shopping around one of its three main units, its Illinois utility. The Houston-based energy company is talking to a handful of potential buyers about its Illinois Power unit, according to people familiar with the process. Dynegy's move follows the company's recent completion of a series of key refinancing and restructuring deals that stabilized its balance sheet and pushed significant debt maturities into 2010. After completing that work, officials at Dynegy turned their attention to strategic planning, reviewing which businesses they thought offered the best competitive advantages and potential for growth, the people said. Dynegy spokesman John Sousa declined...