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)



|                                                                                      |  |                                 |        |                                  |   |        
|------------------------------------------------------------------------------------- |  | ------------------------------- | ------ | -------------------------------- | - | -------
|                                                                                      |  | Three Months EndedMarch 31,2009 |        | Year
Ended      December 31,2008
|Net income from continuing operations                                                 |  | $                               | 13,834 |                                  | $ | 4,970  
|Add- Taxes based on income                                                            |  |                                 | 9,222  |                                  |   | 4,746  
|                                                                                      |  |                                 |        |                                  |   |        
|Net income before income taxes                                                        |  |                                 | 23,056 |                                  |   | 9,716  
|Add- fixed charges:                                                                   |  |                                 |        |                                  |   |        
|Interest on long term debt(1)                                                         |  |                                 | 25,070 |                                  |   | 91,143 
|Estimated interest cost within rental expense                                         |  |                                 | 386    |                                  |   | 701    
|Amortization of net debt premium, discount, expenses and losses                       |  |                                 | 1,169  |                                  |   | 8,922  
|                                                                                      |  |                                 |        |                                  |   |        
|Total fixed charges                                                                   |  |                                 | 26,625 |                                  |   | 100,766
|                                                                                      |  |                                 |        |                                  |   |        
|Earnings available for fixed charges                                                  |  |                                 | 49,681 |                                  |   | 110,482
|                                                                                      |  |                                 |        |                                  |   |        
|Ratio of earnings to fixed charges                                                    |  |                                 | 1.86   |                                  |   | 1.09   
|                                                                                      |  |                                 |        |                                  |   |        
|Earnings required for combined fixed charges and preferred stock dividends:           |  |                                 |        |                                  |   |        
|Preferred stock dividends                                                             |  |                                 | 574    |                                  |   | 2,294  
|Adjustment to pretax basis                                                            |  |                                 | 382    |                                  |   | 2,191  
|                                                                                      |  |                                 |        |                                  |   |        
|                                                                                      |  |                                 | 956    |                                  |   | 4,485  
|                                                                                      |  |                                 |        |                                  |   |        
|Combined fixed charges and preferred stock dividend requirements                      |  | $                               | 27,581 |                                  | $ | 105,251
|                                                                                      |  |                                 |        |                                  |   |        
|Ratio of earnings to combined fixed charges and preferred stock dividend requirements |  |                                 | 1.80   |                                  |   | 1.04   
|                                                                                      |  |                                 |        |                                  |   |        



|(1) | Includes FIN 48 interest expense
|--- | --------------------------------