**Exhibit      12.7**

| **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)** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                          | **Six                    Months** |   | **Year** |   |
|                                                                                                                                                                                                                                                                          | **Ended** |   | **Ended** |   |
|                                                                                                                                                                                                                                                                          | **June                    30,** |   | **December                    31,** |   |
|                                                                                                                                                                                                                                                                          |   | **2006** |   |   | **2005** |   |
| Net                    income from continuing operations                                                                                                                                                                                                                      | $ | 18,793 |   | $ | 97,039 |   |
| Add-                    Taxes based on income                                                                                                                                                                                                                                 |   | 12,674 |   |   | 65,171 |   |
| Net                    income before income taxes                                                                                                                                                                                                                             |   | 31,467 |   |   | 162,210 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Add-                    fixed charges:                                                                                                                                                                                                                                        |   |   |   |   |   |   |
| Interest                    on long term debt                                                                                                                                                                                                                                 |   | 22,007 |   |   | 41,028 |   |
| Estimated                    interest cost within rental expense                                                                                                                                                                                                              |   | 346 |   |   | 1,290 |   |
| Amortization                    of net debt premium, discount,expenses                    and losses                                                                                                                                                                          |   | 1,697 |   |   | 2,315 |   |
| Total                    fixed charges                                                                                                                                                                                                                                        |   | 24,050 |   |   | 44,633 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Earnings                    available for fixed charges                                                                                                                                                                                                                       |   | 55,517 |   |   | 206,843 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Ratio                    of earnings to fixed charges                                                                                                                                                                                                                         |   | 2.30 |   |   | 4.63 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Earnings                    required for combined fixedcharges                    and preferred stock dividends:                                                                                                                                                              |   |   |   |   |   |   |
| Preferred                    stock dividends                                                                                                                                                                                                                                  |   | 1,147 |   |   | 2,294 |   |
| Adjustment                    to pre-tax basis                                                                                                                                                                                                                                |   | 729 |   |   | 1,542 |   |
|                                                                                                                                                                                                                                                                          |   | 1,876 |   |   | 3,836 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Combined                    fixed charges and preferred stockdividend                    requirements                                                                                                                                                                         | $ | 25,926 |   | $ | 48,469 |   |
|                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
| Ratio                    of earnings to combined fixed chargesand                    preferred stock dividend requirements                                                                                                                                                    |   | 2.14 |   |   | 4.26 |   |