| **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)** |                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |
|                                                                                                                                                                                                                                                          | **6                Months Ended** |   |   | **Year                Ended** |   |
|                                                                                                                                                                                                                                                          | **June                30,**       |   |   | **December                31,** |   |
|                                                                                                                                                                                                                                                          | **2007**                          |   |   | **2006** |   |
| Net                income from continuing operations                                                                                                                                                                                                          | $                                 | 20,314 |   |   | $ | 56,659 |   |
| Add-                Taxes based on income                                                                                                                                                                                                                     |                              | 13,103 |   |   |   | 37,246 |   |
| Net                income before income taxes                                                                                                                                                                                                                 |                              | 33,417 |   |   |   | 93,905 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Add-                fixed charges:                                                                                                                                                                                                                            |                              |   |   |   |   |   |   |
| Interest                on long term debt                                                                                                                                                                                                                     |                              | 31,861 |   |   |   | 46,167 |   |
| Estimated                interest cost within rental expense                                                                                                                                                                                                  |                              | 101 |   |   |   | 205 |   |
| Amortization                of net debt premium, discount,expenses                and losses                                                                                                                                                                  |                              | 4,193 |   |   |   | 3,537 |   |
| Total                fixed charges                                                                                                                                                                                                                            |                              | 36,155 |   |   |   | 49,909 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Earnings                available for fixed charges                                                                                                                                                                                                           |                              | 69,572 |   |   |   | 143,814 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Ratio                of earnings to fixed charges                                                                                                                                                                                                             |                              | 1.92 |   |   |   | 2.88 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Earnings                required for combined fixedcharges                and preferred stock dividends:                                                                                                                                                      |                              |   |   |   |   |
| Preferred                stock dividends                                                                                                                                                                                                                      |                              | 1,147 |   |   |   | 2,294 |   |
| Adjustment                to pre-tax basis                                                                                                                                                                                                                    |                              | 740 |   |   |   | 1,508 |   |
|                                                                                                                                                                                                                                                          |                              | 1,887 |   |   |   | 3,802 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Combined                fixed charges and preferred stockdividend                requirements                                                                                                                                                                 | $                                 | 38,042 |   |   | $ | 53,711 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |
| Ratio                of earnings to combined fixed chargesand                preferred stock dividend requirements                                                                                                                                            |                              | 1.82 |   |   |   | 2.67 |   |
|                                                                                                                                                                                                                                                          |                              |   |   |   |   |   |   |