| **Illinois                  Power Company****Computation                  of Ratios of Earnings to Fixed Charges and Combined****Fixed                  Charges and Preferred Stock Dividend Requirements****(Thousands                  of Dollars, Except Ratios)** |                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |
|                                                                                                                                                                                                                                                                  | **9                  Months Ended** |   |   | **Year                  Ended** |   |
|                                                                                                                                                                                                                                                                  | **September                  30,**  |   |   | **December                  31,** |   |
|                                                                                                                                                                                                                                                                  | **2007**                            |   |   | **2006** |   |
| Net                  income from continuing operations                                                                                                                                                                                                                | $                                   | 17,949 |   |   | $ | 56,659 |   |
| Add-                  Taxes based on income                                                                                                                                                                                                                           |                                | 9,691 |   |   |   | 37,246 |   |
| Net                  income before income taxes                                                                                                                                                                                                                       |                                | 27,640 |   |   |   | 93,905 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Add-                  fixed charges:                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Interest                  on long term debt                                                                                                                                                                                                                           |                                | 50,369 | (1) |   |   | 46,167 |   |
| Estimated                  interest cost within rental expense                                                                                                                                                                                                        |                                | 159 |   |   |   | 205 |   |
| Amortization                  of net debt premium, discount,expenses                  and losses                                                                                                                                                                      |                                | 6,309 |   |   |   | 3,537 |   |
| Total                  fixed charges                                                                                                                                                                                                                                  |                                | 56,837 |   |   |   | 49,909 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Earnings                  available for fixed charges                                                                                                                                                                                                                 |                                | 84,477 |   |   |   | 143,814 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Ratio                  of earnings to fixed charges                                                                                                                                                                                                                   |                                | 1.48 |   |   |   | 2.88 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Earnings                  required for combined fixedcharges                  and preferred stock dividends:                                                                                                                                                          |                                |   |   |   |   |
| Preferred                  stock dividends                                                                                                                                                                                                                            |                                | 1,721 |   |   |   | 2,294 |   |
| Adjustment                  to pre-tax basis                                                                                                                                                                                                                          |                                | 929 |   |   |   | 1,508 |   |
|                                                                                                                                                                                                                                                                  |                                | 2,650 |   |   |   | 3,802 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Combined                  fixed charges and preferred stockdividend                  requirements                                                                                                                                                                     | $                                   | 59,487 |   |   | $ | 53,711 |   |
|                                                                                                                                                                                                                                                                  |                                |   |   |   |   |   |   |
| Ratio                  of earnings to combined fixed chargesand                  preferred stock dividend requirements                                                                                                                                                |                                | 1.42 |   |   |   | 2.67 |   |