**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**for      the Quarterly Period Ended June 30, 2006**

|  CommissionFile                Number | Exact                name of registrant as specified in its charter;State                of Incorporation;Address                and Telephone Number |  IRS                EmployerIdentification                No. |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                       |                                                                                                                                                  |                                                               |
| 1-14756                                    | **Ameren                Corporation**                                                                                                                 | 43-1723446                                                         |
|                                       | (Missouri                Corporation)                                                                                                                 |                                                               |
|                                       | 1901                Chouteau Avenue                                                                                                                   |                                                               |
|                                       | St.                Louis, Missouri 63103                                                                                                              |                                                               |
|                                       | (314)                621-3222                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 1-2967                                     | **Union                Electric Company**                                                                                                             | 43-0559760                                                         |
|                                       | (Missouri                Corporation)                                                                                                                 |                                                               |
|                                       | 1901                Chouteau Avenue                                                                                                                   |                                                               |
|                                       | St.                Louis, Missouri 63103                                                                                                              |                                                               |
|                                       | (314)                621-3222                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 1-3672                                     | **Central                Illinois Public Service Company**                                                                                            | 37-0211380                                                         |
|                                       | (Illinois                Corporation)                                                                                                                 |                                                               |
|                                       | 607                East Adams Street                                                                                                                  |                                                               |
|                                       | Springfield,                Illinois 62739                                                                                                            |                                                               |
|                                       | (217)                523-3600                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 333-56594                                  | **Ameren                Energy Generating Company**                                                                                                   | 37-1395586                                                         |
|                                       | (Illinois                Corporation)                                                                                                                 |                                                               |
|                                       | 1901                Chouteau Avenue                                                                                                                   |                                                               |
|                                       | St.                Louis, Missouri 63103                                                                                                              |                                                               |
|                                       | (314)                621-3222                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 2-95569                                    | **CILCORP                Inc.**                                                                                                                       | 37-1169387                                                         |
|                                       | (Illinois                Corporation)                                                                                                                 |                                                               |
|                                       | 300                Liberty Street                                                                                                                     |                                                               |
|                                       | Peoria,                Illinois 61602                                                                                                                 |                                                               |
|                                       | (309)                677-5271                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 1-2732                                     | **Central                Illinois Light Company**                                                                                                     | 37-0211050                                                         |
|                                       | (Illinois                Corporation)                                                                                                                 |                                                               |
|                                       | 300                Liberty Street                                                                                                                     |                                                               |
|                                       | Peoria,                Illinois 61602                                                                                                                 |                                                               |
|                                       | (309)                677-5271                                                                                                                         |                                                               |
|                                       |                                                                                                                                                  |                                                               |
| 1-3004                                     | **Illinois                Power Company**                                                                                                             | 37-0344645                                                         |
|                                       | (Illinois                Corporation)                                                                                                                 |                                                               |
|                                       | 370                South Main Street                                                                                                                  |                                                               |
|                                       | Decatur,                Illinois 62523                                                                                                                |                                                               |
|                                       | (217)                424-6600                                                                                                                         |                                                               |

----

|                                                   | Large                Accelerated Filer | Accelerated                Filer | Non-Accelerated                Filer |
|--------------------------------------------------------|----------------------------------------|----------------------------------|--------------------------------------|
| Ameren                Corporation                      | (X)                                    | (                  )   | (                  )       |
| Union                Electric Company                  | (                  )         | (                  )        | (X)                                  |
| Central                Illinois Public Service Company | (                  )              | (                  )   | (X)                                  |
| Ameren                Energy Generating Company        | (                  )         | (                  )   | (X)                                  |
| CILCORP                Inc.                            | (                  )              | (                  )   | (X)                                  |
| Central                Illinois Light Company          | (   )                   | (                  )   | (X)                                  |
| Illinois                Power Company                  | (                  )         | (                  )        | (X)                                  |

| Ameren                Corporation                      | Yes | (                  ) | No | (X) |
|--------------------------------------------------------|-----|--------------------------------|----|-----|
| Union                Electric Company                  | Yes | (                  ) | No | (X) |
| Central                Illinois Public Service Company | Yes | (                  ) | No | (X) |
| Ameren                Energy Generating Company        | Yes | (                  ) | No | (X) |
| CILCORP                Inc.                            | Yes | (                  ) | No | (X) |
| Central                Illinois Light Company          | Yes | (                  ) | No | (X) |
| Illinois                Power Company                  | Yes | (                  ) | No | (X) |

| Ameren                Corporation                      | Common                stock, $.01 par value per share - 205,866,928                                                                                                                                                        |
|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                                                                                                                                       |
| Union                Electric Company                  | Common                stock, $5 par value per share, held by Ameren Corporation                (parent company of the registrant) - 102,123,834                                                                            |
|                                                   |                                                                                                                                                                                                                       |
| Central                Illinois Public Service Company | Common                stock, no par value, held by Ameren Corporation                (parent company of the registrant) - 25,452,373                                                                                       |
|                                                   |                                                                                                                                                                                                                       |
| Ameren                Energy Generating Company        | Common                stock, no par value, held by Ameren Energy Development                Company (parent company of the registrant                and indirect subsidiary of Ameren Corporation)                - 2,000 |
|                                                   |                                                                                                                                                                                                                       |
| CILCORP                Inc.                            | Common                stock, no par value, held by Ameren Corporation                (parent company of the registrant) - 1,000                                                                                            |
|                                                   |                                                                                                                                                                                                                       |
| Central                Illinois Light Company          | Common                stock, no par value, held by CILCORP Inc. (parent                company of the registrant and subsidiary of Ameren                Corporation) - 13,563,871                                         |
|                                                   |                                                                                                                                                                                                                       |
| Illinois                Power Company                  | Common                stock, no par value, held by Ameren Corporation                (parent company of the registrant) -                23,000,000                                                                        |

----

**OMISSION      OF CERTAIN INFORMATION**

----

----

**TABLE      OF CONTENTS**

|                                                                                                                                                                                                                                                                                                                                                                  | **Page** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Glossary                of Terms and                Abbreviations.............................................................................................................................................................................................................................................                                                        | 5        |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Forward-looking                Statements.............................................................................................................................................................................................................................................................                                                                | 6        |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| **PART                I       ****Financial                Information**                                                                                                                                                                                                                                                           |     |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Item                1.          Financial                Statements (Unaudited)                                                                                                                                                                                                                                          |     |
| ** Ameren                Corporation**                                                                                                                                                                                                                                                                                                                           |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 8        |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 9        |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 10       |
| ** Union                Electric Company**                                                                                                                                                                                                                                                                                                                  |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 11       |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 12       |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 13       |
| **Central                Illinois Public Service Company**                                                                                                                                                                                                                                                                                                            |     |
| Statement                of                Income...............................................................................................................................................................................................................................................                                                                      | 14       |
| Balance                Sheet..........................................................................................................................................................................................................................................................                                                                                | 15       |
| Statement                of Cash                Flows.......................................................................................................................................................................................................................................                                                                          | 16       |
| **Ameren                Energy Generating Company**                                                                                                                                                                                                                                                                                                                   |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 17       |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 18       |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 19       |
| **CILCORP                Inc.**                                                                                                                                                                                                                                                                                                                                       |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 20       |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 21       |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 22       |
| **Central                Illinois Light Company**                                                                                                                                                                                                                                                                                                                     |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 23       |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 24       |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 25       |
| **Illinois                Power Company**                                                                                                                                                                                                                                                                                                                             |     |
| Consolidated                Statement of                Income......................................................................................................................................................................................................................                                                                                  | 26       |
| Consolidated                Balance                Sheet.................................................................................................................................................................................................................................                                                                             | 27       |
| Consolidated                Statement of Cash                Flows..............................................................................................................................................................................................................                                                                                      | 28       |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Combined                Notes to Financial                Statements...................................................................................................................................................................................................................                                                                               | 29       |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Item                2.        Management’s                Discussion and Analysis of Financial Condition and Results of                Operations...........................................................................................................................                                                 | 53       |
| Item                3.        Quantitative                and Qualitative Disclosures About Market                Risk................................................................................................................................................................................                             | 72       |
| Item                4.        Controls                and                Procedures............................................................................................................................................................................................................................................... | 75       |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| **PART                II    ****Other                Information**                                                                                                                                                                                                                                                                                |     |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Item                1.        Legal                Proceedings...........................................................................................................................................................................................................................................................          | 75       |
| Item                1A      Risk                Factors.....................................................................................................................................................................................................................................................................                 | 75       |
| Item                2.        Unregistered                Sales of Equity Securities and Use of                Proceeds.................................................................................................................................................................................                           | 77       |
| Item                4.        Submission                of Matters to a Vote of Security                Holders...............................................................................................................................................................................................                     | 78       |
| Item                6.        Exhibits.............................................................................................................................................................................................................................................................................                | 79       |
|                                                                                                                                                                                                                                                                                                                                                                  |     |
| Signatures............................................................................................................................................................................................................................................................................................                                                           | 81       |

----

**GLOSSARY      OF TERMS AND ABBREVIATIONS**

***AERG***

***AFS***

***Ameren***

***Ameren      Companies***

***Ameren      Energy***

***Ameren      Services***
*** ***

***APB***

***ARO***

***Baseload***
*** ***

***Capacity      factor***

***CILCO***

***CILCORP***

***CIPS***

***Cooling      degree-days***

***CT***

***CUB***

***Development      Company***

***DOE***

***DRPlus***

***Dynegy***

***EEI***

***ELPC***

***EPA***

***Equivalent      availability factor***

***ERISA***

***Exchange      Act***

***FASB***

***FERC***

***FIN***

***GAAP***

***Genco***

***Gigawatthour***

***Heating      degree-days***

***ICC***

***Illinois      Customer Choice Law***

***Illinois      EPA***

***IP***
*** ***

----

***IP      SPT***

***JDA***

***Kilowatthour***
*** ***

***Marketing      Company***
*** ***

***Medina      Valley***
*** ***

***Megawatthour***

***MGP***
*** ***

***MISO***
*** ***

***MISO      Day Two Energy Market***
*** ***

***Money      pool***
*** ***

***Moody’s***
*** ***

***MoPSC***

***NO***
***x***

*** ***
*** ***

***Noranda***

***NYMEX***

***OCI***
*** ***

***PUHCA      1935***

***PUHCA      2005***

***Resources      Company***

***S&P***

***SEC***

***SFAS***
*** ***

***SO***
***2***

*** ***

***TFN***

***UE***
*** ***

**FORWARD-LOOKING      STATEMENTS**

| ·   | regulatory                or legislative actions, including changes in regulatory policies                and                ratemaking determinations, such as the outcome of UE, CIPS, CILCO                and IP                rate proceedings; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                impact of the termination of the joint dispatch agreement among UE,                CIPS,                and Genco; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | changes                  in laws and other governmental actions, including monetary and                  fiscal                  policies; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                effects of increased competition in the future due to, among other                things,                deregulation of certain aspects of our business at both the state                and                federal levels, and the implementation of deregulation, such as when                the                current electric rate freeze and current power supply contracts expire                in                Illinois at the end of 2006; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                effects of participation in the                MISO; |
|--------------------|-------------------------------------------------------------------------|

| ·   | the                availability of fuel such as coal, natural gas and enriched uranium                used                to produce electricity; the availability of purchased power and natural                gas for distribution; and the level and volatility of future market                prices                for such commodities, including the ability to recover the costs                for such                commodities; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                effectiveness of our risk management strategies and the use of financial                and derivative instruments; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | prices                for power in the Midwest; |
|--------------------|-------------------------------------------------|

| ·   | business                and economic conditions, including their impact on interest rates; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | disruptions                of the capital markets or other events that make the Ameren Companies’                access to necessary capital more difficult or                costly; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                impact of the adoption of new accounting standards and the application                of                appropriate technical accounting rules and guidance; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | actions                of credit rating agencies and the effects of such actions; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | weather                conditions and other natural phenomena; |
|--------------------|----------------------------------------------------------------|

| ·   | the                impact of system outages caused by severe weather conditions or other                events; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | generation                plant construction, installation and performance, including costs                associated with UE’s Taum Sauk pumped-storage hydroelectric plant incident                and its future operation; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | operation                of UE’s nuclear power facility, including planned and unplanned outages,                and decommissioning costs; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                effects of strategic initiatives, including acquisitions and divestitures; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | the                impact of current environmental regulations on utilities and power                generating companies and the expectation that more stringent requirements                will be introduced over time, which could have a negative financial                effect; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | labor                disputes and future wage and employee benefits costs, including changes                in                returns on benefit plan assets; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in the energy markets, environmental laws or regulations, interest                rates,                or other factors that could adversely affect assumptions in connection                with the IP acquisition; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                impact of conditions imposed by regulators in connection with their                approval of Ameren’s acquisition of                IP; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                inability of our counterparties to meet their obligations with respect                to                contracts and financial instruments; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                cost and availability of transmission capacity for the energy generated                by                the Ameren Companies’ facilities or required to satisfy energy sales made                by the Ameren Companies; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | legal                and administrative proceedings; and |
|--------------------|----------------------------------------------------------|

| ·   | acts                of sabotage, war, terrorism or intentionally disruptive acts. |
|--------------------|-----------------------------------------------------------------------------------|

----

| **AMEREN                CORPORATION**                                  |                                                             |
|------------------------------------------------------------------------|------------------------------------------------------------------|
| **CONSOLIDATED                STATEMENT OF INCOME**                    |                                                             |
| **(Unaudited)                (In millions, except per share amounts)** |                                                             |
|                                                                   |                                                             |
|                                                                   | **Three                Months Ended****June                30,** |   | **Six                Months Ended****June                30,** |   |
|                                                                   |                                                             | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Operating                Revenues:**                                 |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                               | **$**                                                            | **1,378** |   | $ | 1,407 |   | **$** | **2,589** |   | $ | 2,529 |   |
| Gas                                                                    |                                                             | **172** |   |   | 174 |   |   | **761** |   |   | 670 |   |
| Other                                                                  |                                                             | **-** |   |   | 3 |   |   | **-** |   |   | 4 |   |
| Total                operating revenues                                |                                                             | **1,550** |   |   | 1,584 |   |   | **3,350** |   |   | 3,203 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Expenses:**                                 |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                and purchased power                                |                                                             | **524** |   |   | 485 |   |   | **1,049** |   |   | 894 |   |
| Gas                purchased for resale                                |                                                             | **104** |   |   | 106 |   |   | **557** |   |   | 460 |   |
| Other                operations and maintenance                        |                                                             | **394** |   |   | 375 |   |   | **742** |   |   | 720 |   |
| Depreciation                and amortization                           |                                                             | **162** |   |   | 157 |   |   | **327** |   |   | 314 |   |
| Taxes                other than income taxes                           |                                                             | **90** |   |   | 95 |   |   | **203** |   |   | 186 |   |
| Total                operating expenses                                |                                                             | **1,274** |   |   | 1,218 |   |   | **2,878** |   |   | 2,574 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Income**                                    |                                                             | **276** |   |   | 366 |   |   | **472** |   |   | 629 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Income and Expenses:**                          |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income                                    |                                                             | **4** |   |   | 6 |   |   | **8** |   |   | 13 |   |
| Miscellaneous                expense                                   |                                                             | **(1** | **)** |   | (6 | ) |   | **(1** | **)** |   | (7 | ) |
| Total                other income                                      |                                                             | **3** |   |   | - |   |   | **7** |   |   | 6 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                Charges**                                    |                                                             | **80** |   |   | 77 |   |   | **156** |   |   | 151 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Income                Before Income Taxes, Minority Interest**       |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **and                Preferred Dividends of Subsidiaries**             |                                                             | **199** |   |   | 289 |   |   | **323** |   |   | 484 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Income                Taxes**                                        |                                                             | **68** |   |   | 100 |   |   | **112** |   |   | 171 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Income                Before Minority Interest and Preferred**       |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Dividends                of Subsidiaries**                           |                                                             | **131** |   |   | 189 |   |   | **211** |   |   | 313 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Minority                Interest and Preferred Dividends**           |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **of                Subsidiaries**                                     |                                                             | **(8** | **)** |   | (4 | ) |   | **(18** | **)** |   | (7 | ) |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                          | **$**                                                            | **123** |   | $ | 185 |   | **$** | **193** |   | $ | 306 |   |
|                                                                   |                                                             |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                per Common Share – Basic and Diluted** | **$**                                                            | **0.60** |   | $ | 0.93 |   | **$** | **0.94** |   | $ | 1.55 |   |
| **Dividends                per Common Share**                          | **$**                                                            | **0.635** |   | $ | 0.635 |   | **$** | **1.27** |   | $ | 1.27 |   |
| **Average                Common Shares Outstanding**                   |                                                             | **205.4** |   |   | 199.7 |   |   | **205.1** |   |   | 197.5 |   |

**The        accompanying notes are an integral part of these consolidated financial        statements.**

----

| **AMEREN                    CORPORATION**                                                                     |                            |
|---------------------------------------------------------------------------------------------------------------|---------------------------------|
| **CONSOLIDATED                    BALANCE SHEET**                                                             |                            |
| **(Unaudited)                    (In millions, except per share amounts)**                                    |                            |
|                                                                                                          |                            |   |   |   |
|                                                                                                          | **June                    30,** |   | **December                    31,** |   |
|                                                                                                          | **2006**                        |   | **2005** |   |
| **ASSETS**                                                                                                    |                            |   |   |   |   |   |
| **Current                    Assets:**                                                                        |                            |   |   |   |   |   |
| Cash                    and cash equivalents                                                                  | **$**                           | **51** |   | $ | 96 |   |
| Accounts                    receivable – trade (less allowance for doubtful                             |                            |   |   |   |   |   |
| accounts                    of $25 and $22, respectively)                                                     |                            | **409** |   |   | 552 |   |
| Unbilled                    revenue                                                                           |                            | **355** |   |   | 382 |   |
| Miscellaneous                    accounts and notes receivable                                                |                            | **71** |   |   | 31 |   |
| Materials                    and supplies                                                                     |                            | **549** |   |   | 572 |   |
| Other                    current assets                                                                       |                            | **110** |   |   | 185 |   |
| Total                    current assets                                                                       |                            | **1,545** |   |   | 1,818 |   |
| **Property                    and Plant, Net**                                                                |                            | **13,920** |   |   | 13,572 |   |
| **Investments                    and Other Assets:**                                                          |                            |   |   |   |   |   |
| Investments                    in leveraged leases                                                            |                            | **32** |   |   | 50 |   |
| Nuclear                    decommissioning trust fund                                                         |                            | **257** |   |   | 250 |   |
| Goodwill                                                                                                      |                            | **976** |   |   | 976 |   |
| Intangible                    assets                                                                          |                            | **250** |   |   | 246 |   |
| Other                    assets                                                                               |                            | **643** |   |   | 419 |   |
| Regulatory                    assets                                                                          |                            | **827** |   |   | 831 |   |
| Total                    investments and other assets                                                         |                            | **2,985** |   |   | 2,772 |   |
| **TOTAL                    ASSETS**                                                                           | **$**                           | **18,450** |   | $ | 18,162 |   |
|                                                                                                          |                            |   |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' EQUITY**                                                   |                            |   |   |   |   |   |
| **Current                    Liabilities:**                                                                   |                            |   |   |   |   |   |
| Current                    maturities of long-term debt                                                       | **$**                           | **124** |   | $ | 96 |   |
| Short-term                    debt                                                                            |                            | **397** |   |   | 193 |   |
| Accounts                    and wages payable                                                                 |                            | **404** |   |   | 706 |   |
| Taxes                    accrued                                                                              |                            | **97** |   |   | 131 |   |
| Other                    current liabilities                                                                  |                            | **386** |   |   | 361 |   |
| Total                    current liabilities                                                                  |                            | **1,408** |   |   | 1,487 |   |
| **Long-term                    Debt, Net**                                                                    |                            | **5,705** |   |   | 5,354 |   |
| **Preferred                    Stock of Subsidiary Subject to Mandatory                    Redemption**       |                            | **19** |   |   | 19 |   |
| **Deferred                    Credits and Other Liabilities:**                                                |                            |   |   |   |   |   |
| Accumulated                    deferred income taxes, net                                                     |                            | **1,958** |   |   | 1,969 |   |
| Accumulated                    deferred investment tax credits                                                |                            | **123** |   |   | 129 |   |
| Regulatory                    liabilities                                                                     |                            | **1,173** |   |   | 1,132 |   |
| Asset                    retirement obligations                                                               |                            | **531** |   |   | 518 |   |
| Accrued                    pension and other postretirement benefits                                          |                            | **800** |   |   | 760 |   |
| Other                    deferred credits and liabilities                                                     |                            | **174** |   |   | 218 |   |
| Total                    deferred credits and other liabilities                                               |                            | **4,759** |   |   | 4,726 |   |
| **Preferred                    Stock of Subsidiaries Not Subject to Mandatory                    Redemption** |                            | **195** |   |   | 195 |   |
| **Minority                    Interest in Consolidated Subsidiaries**                                         |                            | **15** |   |   | 17 |   |
| **Commitments                    and Contingencies (Notes 2, 8 and 9)**                                       |                            |   |   |   |   |   |
| **Stockholders'                    Equity:**                                                                  |                            |   |   |   |   |   |
| Common                    stock, $.01 par value, 400.0 shares authorized,                                     |                            |   |   |   |   |   |
| 205.8                    and 204.7 shares outstanding, respectively                                           |                            | **2** |   |   | 2 |   |
| Other                    paid-in capital, principally premium on common stock                                 |                            | **4,457** |   |   | 4,399 |   |
| Retained                    earnings                                                                          |                            | **1,932** |   |   | 1,999 |   |
| Accumulated                    other comprehensive loss                                                       |                            | **(36** | **)** |   | (24 | ) |
| Other                                                                                                         |                            | **(6** | **)** |   | (12 | ) |
| Total                    stockholders’ equity                                                           |                            | **6,349** |   |   | 6,364 |   |
| **TOTAL                    LIABILITIES AND STOCKHOLDERS' EQUITY**                                             | **$**                           | **18,450** |   | $ | 18,162 |   |
|                                                                                                          |                            |   |   |   |   |   |

**The        accompanying notes are an integral part of these consolidated financial        statements.**

----

| **AMEREN                  CORPORATION**                                                                     |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS**                                                   |   |
| **(Unaudited)                  (In millions)**                                                              |   |
|                                                                                                        |   |
|                                                                                                        |   | **Six                  Months Ended **  |   |
|                                                                                                             |   | **June                  30, **  |   |
|                                                                                                        |   | **2006** |   |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**                                                  |   |   |   |   |   |   |
| Net                  income                                                                                 | **$**  | **193** |   | $ | 306 |   |
| Adjustments                  to reconcile net income to net cash                                            |   |   |   |   |   |   |
| provided                  by operating activities:                                                          |   |   |   |   |   |   |
| Depreciation                  and amortization                                                              |   | **340** |   |   | 299 |   |
| Amortization                  of nuclear fuel                                                               |   | **16** |   |   | 17 |   |
| Amortization                  of debt issuance costs and premium/discounts                                  |   | **7** |   |   | 7 |   |
| Deferred                  income taxes and investment tax credits, net                                      |   | **(19** | **)** |   | 66 |   |
| Loss                  on sale of leveraged leases                                                           |   | **4** |   |   | - |   |
| Minority                  interest                                                                          |   | **12** |   |   | 1 |   |
| Other                                                                                                       |   | **1** |   |   | - |   |
| Changes                  in assets and liabilities, excluding the effects of                  acquisitions: |   |   |   |   |   |   |
| Receivables,                  net                                                                           |   | **168** |   |   | (8 | ) |
| Materials                  and supplies                                                                     |   | **25** |   |   | 46 |   |
| Accounts                  and wages payable                                                                 |   | **(258** | **)** |   | (163 | ) |
| Taxes                  accrued                                                                              |   | **(33** | **)** |   | 112 |   |
| Assets,                  other                                                                              |   | **58** |   |   | 11 |   |
| Liabilities,                  other                                                                         |   | **10** |   |   | 1 |   |
| Pension                  and other postretirement benefit obligations, net                                  |   | **46** |   |   | 54 |   |
| Net                  cash provided by operating activities                                                  |   | **570** |   |   | 749 |   |
|                                                                                                        |   |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**                                                  |   |   |   |   |   |   |
| Capital                  expenditures                                                                       |   | **(406** | **)** |   | (442 | ) |
| CT                  acquisitions                                                                            |   | **(292** | **)** |   | - |   |
| Nuclear                  fuel expenditures                                                                  |   | **(25** | **)** |   | (13 | ) |
| Proceeds                  from sale of leveraged leases                                                     |   | **11** |   |   | - |   |
| Purchases                  of emission allowances                                                      |   | **(38** | **)** |   |   (92 | )  |
| Sales                  of emission allowances                                                               |   |  **4** |   |   |  4 |   |
| Other                                                                                                       |   | **-** |   |   | 12 |   |
| Net                  cash used in investing activities                                                      |   | **(746** | **)** |   | (531 | ) |
|                                                                                                        |   |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**                                                  |   |   |   |   |   |   |
| Dividends                  on common stock                                                                  |   | **(260** | **)** |   | (253 | ) |
| Capital                  issuance costs                                                                     |   | **(2** | **)** |   | (1 | ) |
| Short-term                  debt, net                                                                       |   | **204** |   |   | (256 | ) |
| Dividends                  paid to minority interest                                                        |   | **(14** | **)** |   | - |   |
| Redemptions,                  repurchases, and maturities:                                                  |   |   |   |   |   |   |
| Long-term                  debt                                                                             |   | **(86** | **)** |   | (237 | ) |
| Issuances:                                                                                                  |   |   |   |   |   |   |
| Common                  stock                                                                               |   | **57** |   |   | 402 |   |
| Long-term                  debt                                                                             |   | **232** |   |   | 85 |   |
| Net                  cash provided by (used in) financing activities                                        |   | **131** |   |   | (260 | ) |
|                                                                                                        |   |   |   |   |   |   |
| Net                  change in cash and cash equivalents                                                    |   | **(45** | **)** |   | (42 | ) |
| Cash                  and cash equivalents at beginning of year                                             |   | **96** |   |   | 69 |   |
| Cash                  and cash equivalents at end of period                                                 | **$**  | **51** |   | $ | 27 |   |
|                                                                                                        |   |   |   |   |   |   |

**The          accompanying notes are an integral part of these consolidated financial          statements.**

----

| **UNION                  ELECTRIC COMPANY**                        |                                                                 |
|--------------------------------------------------------------------|----------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF INCOME**              |                                                                 |
| **(Unaudited)                  (In millions)**                     |                                                                 |
|                                                               |                                                                 |
|                                                               | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                               |                                                                 | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Operating                  Revenues:**                           |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                           | **$**                                                                | **687** |   | $ | 726 |   | **$** | **1,254** |   | $ | 1,259 |   |
| Gas                                                                |                                                                 | **22** |   |   | 26 |   |   | **91** |   |   | 101 |   |
| Other                                                              |                                                                 | **1** |   |   | - |   |   | **1** |   |   | - |   |
| Total                  operating revenues                          |                                                                 | **710** |   |   | **752** |   |   | **1,346** |   |   | **1,360** |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**                           |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                  and purchased power                          |                                                                 | **192** |   |   | 182 |   |   | **384** |   |   | 326 |   |
| Gas                  purchased for resale                          |                                                                 | **12** |   |   | 13 |   |   | **56** |   |   | 58 |   |
| Other                  operations and maintenance                  |                                                                 | **196** |   |   | 193 |   |   | **367** |   |   | 374 |   |
| Depreciation                  and amortization                     |                                                                 | **81** |   |   | 76 |   |   | **161** |   |   | 152 |   |
| Taxes                  other than income taxes                     |                                                                 | **59** |   |   | 59 |   |   | **118** |   |   | 114 |   |
| Total                  operating expenses                          |                                                                 | **540** |   |   | 523 |   |   | **1,086** |   |   | 1,024 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                              |                                                                 | **170** |   |   | 229 |   |   | **260** |   |   | 336 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income and Expenses:**                    |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                              |                                                                 | **1** |   |   | 2 |   |   | **4** |   |   | 9 |   |
| Miscellaneous                  expense                             |                                                                 | **(2** | **)** |   | (2 | ) |   | **(4** | **)** |   | (4 | ) |
| Total                  other income (expense)                      |                                                                 | **(1** | **)** |   | - |   |   | **-** |   |   | 5 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                              |                                                                 | **37** |   |   | 27 |   |   | **72** |   |   | 52 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Income Taxes and Equity**         |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **in                  Income of Unconsolidated Investment**        |                                                                 | **132** |   |   | 202 |   |   | **188** |   |   | 289 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes**                                  |                                                                 | **50** |   |   | 71 |   |   | **69** |   |   | 102 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Equity in Income**                |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **of                  Unconsolidated Investment**                  |                                                                 | **82** |   |   | 131 |   |   | **119** |   |   | 187 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Equity                  in Income of Unconsolidated Investment** |                                                                 | **10** |   |   | 1 |   |   | **24** |   |   | 2 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                    |                                                                 | **92** |   |   | 132 |   |   | **143** |   |   | 189 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                  Stock Dividends**                     |                                                                 | **2** |   |   | 2 |   |   | **3** |   |   | 3 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income Available to Common Stockholder**    | **$**                                                                | **90** |   | $ | 130 |   | **$** | **140** |   | $ | 186 |   |
|                                                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to UE are an integral part of these        consolidated financial statements**

----

| **UNION                  ELECTRIC COMPANY**                                                                            |                          |
|------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| **CONSOLIDATED                  BALANCE SHEET**                                                                        |                          |
| **(Unaudited)                  (In millions, except per share amounts)**                                               |                          |
|                                                                                                                   |                          |   |   |   |
|                                                                                                                   | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                   | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                                             |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                                   |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                                             | **$**                         | **1** |   | $ | 20 |   |
| Accounts                  receivable – trade (less allowance for doubtful                                        |                          |   |   |   |   |   |
| accounts                  of $6 and $6, respectively)                                                                  |                          | **141** |   |   | 190 |   |
| Unbilled                  revenue                                                                                      |                          | **176** |   |   | 133 |   |
| Miscellaneous                  accounts and notes receivable                                                           |                          | **58** |   |   | 7 |   |
| Accounts                  receivable – affiliates                                                                |                          | **26** |   |   | 53 |   |
| Current                  portion of intercompany note receivable – CIPS                                          |                          | **-** |   |   | 6 |   |
| Materials                  and supplies                                                                                |                          | **214** |   |   | 199 |   |
| Other                  current assets                                                                                  |                          | **49** |   |   | 57 |   |
| Total                  current assets                                                                                  |                          | **665** |   |   | 665 |   |
| **Property                  and Plant, Net**                                                                           |                          | **7,696** |   |   | 7,379 |   |
| **Investments                  and Other Assets:**                                                                     |                          |   |   |   |   |   |
| Nuclear                  decommissioning trust fund                                                                    |                          | **257** |   |   | 250 |   |
| Intercompany                  note receivable – CIPS                                                             |                          | **-** |   |   | 61 |   |
| Intangible                  assets                                                                                     |                          | **63** |   |   | 63 |   |
| Other                  assets                                                                                          |                          | **496** |   |   | 269 |   |
| Regulatory                  assets                                                                                     |                          | **583** |   |   | 590 |   |
| Total                  investments and other assets                                                                    |                          | **1,399** |   |   | 1,233 |   |
| **TOTAL                  ASSETS**                                                                                      | **$**                         | **9,760** |   | $ | 9,277 |   |
|                                                                                                                   |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                              |                          |   |   |   |   |   |
| **Current                  Liabilities:**                                                                              |                          |   |   |   |   |   |
| Current                  maturities of long-term debt                                                                  | **$**                         | **11** |   | $ | 4 |   |
| Short-term                  debt                                                                                       |                          | **364** |   |   | 80 |   |
| Accounts                  and wages payable                                                                            |                          | **90** |   |   | 274 |   |
| Accounts                  and wages payable – affiliates                                                         |                          | **83** |   |   | 134 |   |
| Taxes                  accrued                                                                                         |                          | **113** |   |   | 59 |   |
| Other                  current liabilities                                                                             |                          | **148** |   |   | 96 |   |
| Total                  current liabilities                                                                             |                          | **809** |   |   | 647 |   |
| **Long-term                  Debt, Net**                                                                               |                          | **2,931** |   |   | 2,698 |   |
| **Deferred                  Credits and Other Liabilities:**                                                           |                          |   |   |   |   |   |
| Accumulated                  deferred income taxes, net                                                                |                          | **1,293** |   |   | 1,277 |   |
| Accumulated                  deferred investment tax credits                                                           |                          | **92** |   |   | 96 |   |
| Regulatory                  liabilities                                                                                |                          | **811** |   |   | 802 |   |
| Asset                  retirement obligations                                                                          |                          | **478** |   |   | 466 |   |
| Accrued                  pension and other postretirement benefits                                                     |                          | **221** |   |   | 203 |   |
| Other                  deferred credits and liabilities                                                                |                          | **56** |   |   | 72 |   |
| Total                  deferred credits and other liabilities                                                          |                          | **2,951** |   |   | 2,916 |   |
| **Commitments                  and Contingencies (Notes 2, 8 and 9)**                                                  |                          |   |   |   |   |   |
| **Stockholders'                  Equity:**                                                                             |                          |   |   |   |   |   |
| Common                  stock, $5 par value, 150.0 shares authorized – 102.1 shares                  outstanding |                          | **511** |   |   | 511 |   |
| Preferred                  stock not subject to mandatory redemption                                                   |                          | **113** |   |   | 113 |   |
| Other                  paid-in capital, principally premium on common stock                                            |                          | **734** |   |   | 733 |   |
| Retained                  earnings                                                                                     |                          | **1,744** |   |   | 1,689 |   |
| Accumulated                  other comprehensive loss                                                                  |                          | **(33** | **)** |   | (30 | ) |
| Total                  stockholders' equity                                                                            |                          | **3,069** |   |   | 3,016 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                        | **$**                         | **9,760** |   | $ | 9,277 |   |
|                                                                                                                   |                          |   |   |   |   |   |
|                                                                                                                   |                          |   |   |   |   |   |

**The        accompanying notes as they relate to UE are an integral part of these        consolidated financial statements**

----

| **UNION                  ELECTRIC COMPANY**                                |                                                               |
|----------------------------------------------------------------------------|--------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS**                  |                                                               |
| **(Unaudited)                  (In millions)**                             |                                                               |
|                                                                       |                                                               |   |   |   |
|                                                                       | **Six                  Months Ended****June                  30,** |   |
|                                                                       | **2006**                                                           |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**                 |                                                               |   |   |   |   |   |
| Net                  income                                                | **$**                                                              | **143** |   | $ | 189 |   |
| Adjustments                  to reconcile net income to net cash           |                                                               |   |   |   |   |   |
| provided                  by operating activities:                         |                                                               |   |   |   |   |   |
| Depreciation                  and amortization                             |                                                               | **161** |   |   | 152 |   |
| Amortization                  of nuclear fuel                              |                                                               | **16** |   |   | 17 |   |
| Amortization                  of debt issuance costs and premium/discounts |                                                               | **3** |   |   | 3 |   |
| Deferred                  income taxes and investment tax credits, net     |                                                               | **11** |   |   | 30 |   |
| Other                                                                      |                                                               | **(5** | **)** |   | (8 | ) |
| Changes                  in assets and liabilities:                        |                                                               |   |   |   |   |   |
| Receivables,                  net                                          |                                                               | **(15** | **)** |   | (114 | ) |
| Materials                  and supplies                                    |                                                               | **(13** | **)** |   | 5 |   |
| Accounts                  and wages payable                                |                                                               | **(206** | **)** |   | (61 | ) |
| Taxes                  accrued                                             |                                                               | **54** |   |   | 111 |   |
| Assets,                  other                                             |                                                               | **25** |   |   | (3 | ) |
| Liabilities,                  other                                        |                                                               | **35** |   |   | 11 |   |
| Pension                  and other postretirement benefit obligations, net |                                                               | **18** |   |   | 21 |   |
| Net                  cash provided by operating activities                 |                                                               | **227** |   |   | 353 |   |
|                                                                       |                                                               |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**                 |                                                               |   |   |   |   |   |
| Capital                  expenditures                                      |                                                               | **(197** | **)** |   | (248 | ) |
| CT                  acquisitions from non-affiliates                       |                                                               | **(292** | **)** |   | - |   |
| CT                  acquisitions from Genco                                |                                                               | **-** |   |   | (241 | ) |
| Nuclear                  fuel expenditures                                 |                                                               | **(25** | **)** |   | (13 | ) |
| Sales                  of emission allowances                              |                                                               |                  **2** |   |   | 2 |   |
| Other                                                                      |                                                               | **1** |   |   | 8 |   |
| Net                  cash used in investing activities                     |                                                               | **(511** | **)** |   | (492 | ) |
|                                                                       |                                                               |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**                 |                                                               |   |   |   |   |   |
| Dividends                  on common stock                                 |                                                               | **(84** | **)** |   | (135 | ) |
| Dividends                  on preferred stock                              |                                                               | **(3** | **)** |   | (3 | ) |
| Proceeds                  from intercompany note receivable - CIPS         |                                                               | **67** |   |   | - |   |
| Changes                  in short-term debt, net                           |                                                               | **284** |   |   | (237 | ) |
| Changes                  in money pool borrowings                          |                                                               | **-** |   |   | 380 |   |
| Issuance                  of long-term debt                                |                                                               | **-** |   |   | 85 |   |
| Capital                  contribution from parent                          |                                                               | **1** |   |   | 2 |   |
| Net                  cash provided by financing activities                 |                                                               | **265** |   |   | 92 |   |
|                                                                       |                                                               |   |   |   |   |   |
| Net                  change in cash and cash equivalents                   |                                                               | **(19** | **)** |   | (47 | ) |
| Cash                  and cash equivalents at beginning of year            |                                                               | **20** |   |   | 48 |   |
| Cash                  and cash equivalents at end of period                | **$**                                                              | **1** |   | $ | 1 |   |
|                                                                       |                                                               |   |   |   |   |   |

**The        accompanying notes as they relate to UE are an integral part of these        consolidated financial statements**

----

| **CENTRAL                  ILLINOIS PUBLIC SERVICE COMPANY**    |                                                                 |
|-----------------------------------------------------------------|----------------------------------------------------------------------|
| **STATEMENT                  OF INCOME**                        |                                                                 |
| **(Unaudited)                  (In millions)**                  |                                                                 |
|                                                            |                                                                 |   |   |   |   |   |   |   |
|                                                            | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                            | **2006**                                                             |   | **2005** |   | **2006** |   | **2005** |   |
| **Operating                  Revenues:**                        |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                        | **$**                                                                | **181** |   | $ | 171 |   | **$** | **341** |   | $ | 299 |   |
| Gas                                                             |                                                                 | **30** |   |   | 27 |   |   | **127** |   |   | 111 |   |
| Other                                                           |                                                                 | **1** |   |   | - |   |   | **1** |   |   | - |   |
| Total                  operating revenues                       |                                                                 | **212** |   |   | 198 |   |   | **469** |   |   | 410 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**                        |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Purchased                  power                                |                                                                 | **113** |   |   | 105 |   |   | **230** |   |   | 191 |   |
| Gas                  purchased for resale                       |                                                                 | **16** |   |   | 15 |   |   | **88** |   |   | 74 |   |
| Other                  operations and maintenance               |                                                                 | **38** |   |   | 37 |   |   | **76** |   |   | 70 |   |
| Depreciation                  and amortization                  |                                                                 | **15** |   |   | 15 |   |   | **31** |   |   | 28 |   |
| Taxes                  other than income taxes                  |                                                                 | **9** |   |   | 7 |   |   | **21** |   |   | 15 |   |
| Total                  operating expenses                       |                                                                 | **191** |   |   | 179 |   |   | **446** |   |   | 378 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                           |                                                                 | **21** |   |   | 19 |   |   | **23** |   |   | 32 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income and Expenses:**                 |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                           |                                                                 | **4** |   |   | 4 |   |   | **9** |   |   | 9 |   |
| Miscellaneous                  expense                          |                                                                 | **-** |   |   | (4 | ) |   | **(1** | **)** |   | (4 | ) |
| Total                  other income                             |                                                                 | **4** |   |   | - |   |   | **8** |   |   | 5 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                           |                                                                 | **8** |   |   | 8 |   |   | **15** |   |   | 15 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Income Taxes**                 |                                                                 | **17** |   |   | 11 |   |   | **16** |   |   | 22 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes**                               |                                                                 | **2** |   |   | 4 |   |   | **2** |   |   | 7 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                 |                                                                 | **15** |   |   | 7 |   |   | **14** |   |   | 15 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                  Stock Dividends**                  |                                                                 | **-** |   |   | - |   |   | **1** |   |   | 1 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income Available to Common Stockholder** | **$**                                                                | **15** |   | $ | 7 |   | **$** | **13** |   | $ | 14 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to CIPS are an integral part of these        financial statements.**

----

| **CENTRAL                  ILLINOIS PUBLIC SERVICE COMPANY**                                                         |                          |
|----------------------------------------------------------------------------------------------------------------------|-------------------------------|
| **BALANCE                  SHEET**                                                                                   |                          |
| **(Unaudited)                  (In millions)**                                                                       |                          |
|                                                                                                                 | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                 | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                                           |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                                 |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                                           | **$**                         | **1** |   | $ | - |   |
| Accounts                  receivable – trade (less allowance for doubtful                                      |                          |   |   |   |   |   |
| accounts                  of $4 and $4, respectively)                                                                |                          | **57** |   |   | 70 |   |
| Unbilled                  revenue                                                                                    |                          | **57** |   |   | 71 |   |
| Accounts                  receivable – affiliates                                                              |                          | **11** |   |   | 18 |   |
| Current                  portion of intercompany note receivable – Genco                                       |                          | **37** |   |   | 34 |   |
| Current                  portion of intercompany tax receivable – Genco                                        |                          | **10** |   |   | 10 |   |
| Advances                  to money pool                                                                              |                          | **17** |   |   | - |   |
| Materials                  and supplies                                                                              |                          | **54** |   |   | 75 |   |
| Other                  current assets                                                                                |                          | **19** |   |   | 28 |   |
| Total                  current assets                                                                                |                          | **263** |   |   | 306 |   |
| **Property                  and Plant, Net**                                                                         |                          | **1,141** |   |   | 1,130 |   |
| **Investments                  and Other Assets:**                                                                   |                          |   |   |   |   |   |
| Intercompany                  note receivable – Genco                                                          |                          | **126** |   |   | 163 |   |
| Intercompany                  tax receivable – Genco                                                           |                          | **120** |   |   | 125 |   |
| Other                  assets                                                                                        |                          | **15** |   |   | 24 |   |
| Regulatory                  assets                                                                                   |                          | **35** |   |   | 36 |   |
| Total                  investments and other assets                                                                  |                          | **296** |   |   | 348 |   |
| **TOTAL                  ASSETS**                                                                                    | **$**                         | **1,700** |   | $ | 1,784 |   |
|                                                                                                                 |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                            |                          |   |   |   |   |   |
| **Current                  Liabilities:**                                                                            |                          |   |   |   |   |   |
| Current                  maturities of long-term debt                                                                | **$**                         | **-** |   | $ | 20 |   |
| Accounts                  and wages payable                                                                          |                          | **26** |   |   | 36 |   |
| Accounts                  and wages payable – affiliates                                                       |                          | **65** |   |   | 65 |   |
| Borrowings                  from money pool                                                                          |                          | **-** |   |   | 2 |   |
| Current                  portion of intercompany note payable – UE                                             |                          | **-** |   |   | 6 |   |
| Taxes                  accrued                                                                                       |                          | **7** |   |   | 26 |   |
| Other                  current liabilities                                                                           |                          | **37** |   |   | 43 |   |
| Total                  current liabilities                                                                           |                          | **135** |   |   | 198 |   |
| **Long-term                  Debt, Net**                                                                             |                          | **471** |   |   | 410 |   |
| **Deferred                  Credits and Other Liabilities:**                                                         |                          |   |   |   |   |   |
| Accumulated                  deferred income taxes and investment tax credits, net                                   |                          | **295** |   |   | 302 |   |
| Intercompany                  note payable – UE                                                                |                          | **-** |   |   | 61 |   |
| Regulatory                  liabilities                                                                              |                          | **209** |   |   | 208 |   |
| Other                  deferred credits and liabilities                                                              |                          | **39** |   |   | 36 |   |
| Total                  deferred credits and other liabilities                                                        |                          | **543** |   |   | 607 |   |
| **Commitments                  and Contingencies (Notes 2 and 8)**                                                   |                          |   |   |   |   |   |
| **Stockholders'                  Equity:**                                                                           |                          |   |   |   |   |   |
| Common                  stock, no par value, 45.0 shares authorized – 25.5 shares                  outstanding |                          | **-** |   |   | - |   |
| Other                  paid-in capital                                                                               |                          | **189** |   |   | 189 |   |
| Preferred                  stock not subject to mandatory redemption                                                 |                          | **50** |   |   | 50 |   |
| Retained                  earnings                                                                                   |                          | **316** |   |   | 329 |   |
| Accumulated                  other comprehensive income (loss)                                                       |                          | **(4** | **)** |   | 1 |   |
| Total                  stockholders' equity                                                                          |                          | **551** |   |   | 569 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                      | **$**                         | **1,700** |   | $ | 1,784 |   |
|                                                                                                                 |                          |   |   |   |   |   |

**The        accompanying notes as they relate to CIPS are an integral part of these        financial statements.**

----

| **CENTRAL                  ILLINOIS PUBLIC SERVICE COMPANY**               |                                                               |
|----------------------------------------------------------------------------|--------------------------------------------------------------------|
| **STATEMENT                  OF CASH FLOWS**                               |                                                               |
| **(Unaudited)                  (In millions)**                             |                                                               |
|                                                                       |                                                               |   |   |   |
|                                                                       | **Six                  Months Ended****June                  30,** |   |
|                                                                       | **2006**                                                           |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**                 |                                                               |   |   |   |   |   |
| Net                  income                                                | **$**                                                              | **14** |   | $ | 15 |   |
| Adjustments                  to reconcile net income to net cash           |                                                               |   |   |   |   |   |
| provided                  by operating activities:                         |                                                               |   |   |   |   |   |
| Depreciation                  and amortization                             |                                                               | **31** |   |   | 28 |   |
| Deferred                  income taxes and investment tax credits, net     |                                                               | **(16** | **)** |   | (7 | ) |
| Other                                                                      |                                                               | **(1** | **)** |   | (4 | ) |
| Changes                  in assets and liabilities:                        |                                                               |   |   |   |   |   |
| Receivables,                  net                                          |                                                               | **39** |   |   | 10 |   |
| Materials                  and supplies                                    |                                                               | **21** |   |   | 7 |   |
| Accounts                  and wages payable                                |                                                               | **(9** | **)** |   | 17 |   |
| Taxes                  accrued                                             |                                                               | **(19** | **)** |   | 11 |   |
| Assets,                  other                                             |                                                               | **22** |   |   | 10 |   |
| Liabilities,                  other                                        |                                                               | **(3** | **)** |   | 5 |   |
| Pension                  and other postretirement benefit obligations, net |                                                               | **-** |   |   | 4 |   |
| Net                  cash provided by operating activities                 |                                                               | **79** |   |   | 96 |   |
|                                                                       |                                                               |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**                 |                                                               |   |   |   |   |   |
| Capital                  expenditures                                      |                                                               | **(40** | **)** |   | (24 | ) |
| Proceeds                  from intercompany note receivable – Genco  |                                                               | **34** |   |   | 52 |   |
| Changes                  in money pool advances                            |                                                               | **(17** | **)** |   | (28 | ) |
| Net                  cash used in investing activities                     |                                                               | **(23** | **)** |   | - |   |
|                                                                       |                                                               |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**                 |                                                               |   |   |   |   |   |
| Dividends                  on common stock                                 |                                                               | **(25** | **)** |   | (9 | ) |
| Dividends                  on preferred stock                              |                                                               | **(1** | **)** |   | (1 | ) |
| Capital                  issuance costs                                    |                                                               | **(1** | **)** |   | - |   |
| Changes                  in money pool borrowings                          |                                                               | **(2** | **)** |   | (68 | ) |
| Redemptions,                  repurchases, and maturities:                 |                                                               |   |   |   |   |   |
| Long-term                  debt                                            |                                                               | **(20** | **)** |   | (20 | ) |
| Intercompany                  note payable - UE                            |                                                               | **(67** | **)** |   | - |   |
| Issuances:                                                                 |                                                               |   |   |   |   |   |
| Long-term                  debt                                            |                                                               | **61** |   |   | - |   |
| Capital                  contribution from parent                          |                                                               | **-** |   |   | 1 |   |
| Net                  cash used in financing activities                     |                                                               | **(55** | **)** |   | (97 | ) |
|                                                                       |                                                               |   |   |   |   |   |
| Net                  change in cash and cash equivalents                   |                                                               | **1** |   |   | (1 | ) |
| Cash                  and cash equivalents at beginning of year            |                                                               | **-** |   |   | 2 |   |
| Cash                  and cash equivalents at end of period                | **$**                                                              | **1** |   | $ | 1 |   |
|                                                                       |                                                               |   |   |   |   |   |

**The        accompanying notes as they relate to CIPS are an integral part of these        financial statements.**

----

| **AMEREN                  ENERGY GENERATING COMPANY** |                                                                 |
|-------------------------------------------------------|----------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF INCOME** |                                                                 |
| **(Unaudited)                  (In millions)**        |                                                                 |
|                                                  |                                                                 |   |   |   |   |   |   |   |
|                                                  | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                  | **2006**                                                             |   | **2005** |   | **2006** |   | **2005** |   |
| **Operating                  Revenues:**              |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                              | **$**                                                                | **238** |   | $ | 266 |   | **$** | **485** |   | $ | 491 |   |
| Total                  operating revenues             |                                                                 | **238** |   |   | 266 |   |   | **485** |   |   | 491 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**              |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                  and purchased power             |                                                                 | **150** |   |   | 138 |   |   | **315** |   |   | 237 |   |
| Other                  operations and maintenance     |                                                                 | **47** |   |   | 38 |   |   | **79** |   |   | 76 |   |
| Depreciation                  and amortization        |                                                                 | **17** |   |   | 18 |   |   | **35** |   |   | 37 |   |
| Taxes                  other than income taxes        |                                                                 | **5** |   |   | 5 |   |   | **11** |   |   | 3 |   |
| Total                  operating expenses             |                                                                 | **219** |   |   | 199 |   |   | **440** |   |   | 353 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                 |                                                                 | **19** |   |   | 67 |   |   | **45** |   |   | 138 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income:**                    |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                 |                                                                 | **-** |   |   | 1 |   |   | **-** |   |   | 1 |   |
| Total                  other income                   |                                                                 | **-** |   |   | 1 |   |   | **-** |   |   | 1 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                 |                                                                 | **15** |   |   | 19 |   |   | **30** |   |   | 40 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Income Taxes**       |                                                                 | **4** |   |   | 49 |   |   | **15** |   |   | 99 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes**                     |                                                                 | **2** |   |   | 18 |   |   | **7** |   |   | 37 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                       | **$**                                                                | **2** |   | $ | 31 |   | **$** | **8** |   | $ | 62 |   |
|                                                  |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to Genco are an integral part of these        consolidated financial statements.**

----

| **AMEREN                  ENERGY GENERATING COMPANY**                                                                   |                          |
|-------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| **CONSOLIDATED                  BALANCE SHEET**                                                                         |                          |
| **(Unaudited)                  (In millions, except shares)**                                                           |                          |
|                                                                                                                    |                          |   |   |   |
|                                                                                                                    | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                    | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                                              |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                                    |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                                              | **$**                         | **1** |   | $ | - |   |
| Accounts                  receivable – affiliates                                                                 |                          | **97** |   |   | 102 |   |
| Accounts                  receivable                                                                                    |                          | **7** |   |   | 29 |   |
| Materials                  and supplies                                                                                 |                          | **99** |   |   | 73 |   |
| Other                  current assets                                                                                   |                          | **1** |   |   | 1 |   |
| Total                  current assets                                                                                   |                          | **205** |   |   | 205 |   |
| **Property                  and Plant, Net**                                                                            |                          | **1,505** |   |   | 1,514 |   |
| **Intangible                  Assets**                                                                                  |                          | **90** |   |   | 79 |   |
| **Other                  Assets**                                                                                       |                          | **13** |   |   | 13 |   |
| **TOTAL                  ASSETS**                                                                                       | **$**                         | **1,813** |   | $ | 1,811 |   |
|                                                                                                                    |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDER'S EQUITY**                                                               |                          |   |   |   |   |   |
| **Current                  Liabilities:**                                                                               |                          |   |   |   |   |   |
| Current                  portion of intercompany note payable – CIPS                                              | **$**                         | **37** |   | $ | 34 |   |
| Borrowings                  from money pool                                                                             |                          | **260** |   |   | 203 |   |
| Accounts                  and wages payable                                                                             |                          | **27** |   |   | 41 |   |
| Accounts                  and wages payable – affiliates                                                          |                          | **97** |   |   | 60 |   |
| Current                  portion of intercompany tax payable – CIPS                                               |                          | **10** |   |   | 10 |   |
| Taxes                  accrued                                                                                          |                          | **14** |   |   | 37 |   |
| Other                  current liabilities                                                                              |                          | **23** |   |   | 16 |   |
| Total                  current liabilities                                                                              |                          | **468** |   |   | 401 |   |
| **Long-term                  Debt, Net**                                                                                |                          | **474** |   |   | 474 |   |
| **Intercompany                  Note Payable – CIPS**                                                             |                          | **126** |   |   | 163 |   |
| **Deferred                  Credits and Other Liabilities:**                                                            |                          |   |   |   |   |   |
| Accumulated                  deferred income taxes, net                                                                 |                          | **142** |   |   | 156 |   |
| Accumulated                  deferred investment tax credits                                                            |                          | **9** |   |   | 10 |   |
| Intercompany                  tax payable – CIPS                                                                  |                          | **120** |   |   | 125 |   |
| Asset                  retirement obligations                                                                           |                          | **29** |   |   | 29 |   |
| Accrued                  pension and other postretirement benefits                                                      |                          | **11** |   |   | 8 |   |
| Other                  deferred credits and liabilities                                                                 |                          | **2** |   |   | 1 |   |
| Total                  deferred credits and other liabilities                                                           |                          | **313** |   |   | 329 |   |
| **Commitments                  and Contingencies (Notes 2 and 8)**                                                      |                          |   |   |   |   |   |
| **Stockholder's                  Equity:**                                                                              |                          |   |   |   |   |   |
| Common                  stock, no par value, 10,000 shares authorized – 2,000 shares                  outstanding |                          | **-** |   |   | - |   |
| Other                  paid-in capital                                                                                  |                          | **278** |   |   | 228 |   |
| Retained                  earnings                                                                                      |                          | **157** |   |   | 220 |   |
| Accumulated                  other comprehensive loss                                                                   |                          | **(3** | **)** |   | (4 | ) |
| Total                  stockholder's equity                                                                             |                          | **432** |   |   | 444 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDER'S EQUITY**                                                         | **$**                         | **1,813** |   | $ | 1,811 |   |
|                                                                                                                    |                          |   |   |   |   |   |

**The          accompanying notes as they relate to Genco are an integral part of these          consolidated financial statements.**

----

| **AMEREN                    ENERGY GENERATING COMPANY**                      |                                                                   |
|------------------------------------------------------------------------------|------------------------------------------------------------------------|
| **CONSOLIDATED                    STATEMENT OF CASH FLOWS**                  |                                                                   |
| **(Unaudited)                    (In millions)**                             |                                                                   |
|                                                                         |                                                                   |   |   |   |
|                                                                         | **Six                    Months Ended****June                    30,** |   |
|                                                                         | **2006**                                                               |   | **2005** |   |
| **Cash                    Flows From Operating Activities:**                 |                                                                   |   |   |   |   |   |
| Net                    income                                                | **$**                                                                  | **8** |   | $ | 62 |   |
| Adjustments                    to reconcile net income to net cash           |                                                                   |   |   |   |   |   |
| provided                    by operating activities:                         |                                                                   |   |   |   |   |   |
| Depreciation                    and amortization                             |                                                                   | **51** |   |   | 47 |   |
| Amortization                    of debt issuance costs and discounts         |                                                                   | **-** |   |   | 1 |   |
| Deferred                    income taxes and investment tax credits, net     |                                                                   | **(8** | **)** |   | 16 |   |
| Other                                                                        |                                                                   | **(1** | **)** |   | -  |   |
| Changes                    in assets and liabilities:                        |                                                                   |   |   |   |   |   |
| Accounts                    receivable                                       |                                                                   | **27** |   |   | (16 | ) |
| Materials                    and supplies                                    |                                                                   | **(26** | **)** |   | (6 | ) |
| Accounts                    and wages payable                                |                                                                   | **28** |   |   | 40 |   |
| Taxes                    accrued, net                                        |                                                                   | **(23** | **)** |   | (12 | ) |
| Assets,                    other                                             |                                                                   | ** -** |   |   | 6 |   |
| Liabilities,                    other                                        |                                                                   | **(4** | **)** |   | (9 | ) |
| Pension                    and other postretirement benefit obligations, net |                                                                   | **3** |   |   | 3 |   |
| Net                    cash provided by operating activities                 |                                                                   | **55** |   |   | 132 |   |
|                                                                         |                                                                   |   |   |   |   |   |
| **Cash                    Flows From Investing Activities:**                 |                                                                   |   |   |   |   |   |
| Capital                    expenditures                                      |                                                                   | **(31** | **)** |   | (43 | ) |
| Proceeds                    from asset sale to UE                            |                                                                   | **-** |   |   | 241 |   |
| Changes                    in money pool advances                            |                                                                   | **-** |   |   | (26 | ) |
| Purchases                    of emission allowances                          |                                                                   | **(26** | **)** |   | (71 | ) |
| Sales                    of emission allowances                              |                                                                   |      **1** |   |   |  1 |   |
| Net                    cash provided by (used in) investing activities       |                                                                   | **(56** | **)** |   | 102 |   |
|                                                                         |                                                                   |   |   |   |   |   |
| **Cash                    Flows From Financing Activities:**                 |                                                                   |   |   |   |   |   |
| Dividends                    on common stock                                 |                                                                   | **(71** | **)** |   | (34 | ) |
| Changes                    in money pool borrowings                          |                                                                   | **57** |   |   | (116 | ) |
| Redemptions,                    repurchases, and maturities:                 |                                                                   |   |   |   |   |   |
| Intercompany                    note payable – CIPS and Ameren         |                                                                   | **(34** | **)** |   | (86 | ) |
| Capital                    contribution from parent                          |                                                                   | **50** |   |   | 1 |   |
| Net                    cash provided by (used in) financing activities       |                                                                   | **2** |   |   | (235 | ) |
|                                                                         |                                                                   |   |   |   |   |   |
| Net                    change in cash and cash equivalents                   |                                                                   | **1** |   |   | (1 | ) |
| Cash                    and cash equivalents at beginning of year            |                                                                   | **-** |   |   | 1 |   |
| Cash                    and cash equivalents at end of period                | **$**                                                                  | **1** |   | $ | - |   |
|                                                                         |                                                                   |   |   |   |   |   |

**The        accompanying notes as they relate to Genco are an integral part of these        consolidated financial statements.**

----

| **CILCORP                  INC.**                                      |                                                                 |
|------------------------------------------------------------------------|----------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF INCOME**                  |                                                                 |
| **(Unaudited)                  (In millions)**                         |                                                                 |
|                                                                   |                                                                 |   |   |   |   |   |   |   |
|                                                                   | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                                   |                                                                 | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **Operating                  Revenues:**                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                               | **$**                                                                | **98** |   | $ | 100 |   | **$** | **190** |   | $ | 193 |   |
| Gas                                                                    |                                                                 | **48** |   |   | 46 |   |   | **198** |   |   | 174 |   |
| Other                                                                  |                                                                 | **-** |   |   | 1 |   |   | **-** |   |   | 2 |   |
| Total                  operating revenues                              |                                                                 | **146** |   |   | 147 |   |   | **388** |   |   | 369 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**                               |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                  and purchased power                              |                                                                 | **35** |   |   | 39 |   |   | **61** |   |   | 72 |   |
| Gas                  purchased for resale                              |                                                                 | **32** |   |   | 29 |   |   | **151** |   |   | 123 |   |
| Other                  operations and maintenance                      |                                                                 | **48** |   |   | 39 |   |   | **89** |   |   | 81 |   |
| Depreciation                  and amortization                         |                                                                 | **19** |   |   | 18 |   |   | **41** |   |   | 36 |   |
| Taxes                  other than income taxes                         |                                                                 | **4** |   |   | 4 |   |   | **13** |   |   | 11 |   |
| Total                  operating expenses                              |                                                                 | **138** |   |   | 129 |   |   | **355** |   |   | 323 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                                  |                                                                 | **8** |   |   | 18 |   |   | **33** |   |   | 46 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income and Expenses:**                        |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                                  |                                                                 | **1** |   |   | - |   |   | **1** |   |   | - |   |
| Miscellaneous                  expense                                 |                                                                 | **(1** | **)** |   | (3 | ) |   | **(2** | **)** |   | (5 | ) |
| Total                  other expenses                                  |                                                                 | **-** |   |   | (3 | ) |   | **(1** | **)** |   | (5 | ) |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                                  |                                                                 | **13** |   |   | 13 |   |   | **25** |   |   | 25 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  (Loss) Before Income Taxes & Preferred** |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Dividends                  of Subsidiaries**                         |                                                                 | **(5** | **)** |   | 2 |   |   | **7** |   |   | 16 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes (Benefit)**                            |                                                                 | **(6** | **)** |   | - |   |   | **(3** | **)** |   | 4 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Preferred Dividends of Subsidiaries** |                                                                 | **1** |   |   | 2 |   |   | **10** |   |   | 12 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                  Dividends of Subsidiaries**               |                                                                 | **-** |   |   | - |   |   | **1** |   |   | 1 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                        | **$**                                                                | **1** |   | $ | 2 |   | **$** | **9** |   | $ | 11 |   |
|                                                                   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to CILCORP are an integral part of these        consolidated financial statements.**

----

| **CILCORP                  INC.**                                                                                       |                          |
|-------------------------------------------------------------------------------------------------------------------------|-------------------------------|
| **CONSOLIDATED                  BALANCE SHEET**                                                                         |                          |
| **(Unaudited)                  (In millions, except shares)**                                                           |                          |
|                                                                                                                    |                          |   |   |   |
|                                                                                                                    | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                    | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                                              |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                                    |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                                              | **$**                         | **23** |   | $ | 3 |   |
| Accounts                  receivable – trade (less allowance for doubtful                                         |                          |   |   |   |   |   |
| accounts                  of $6 and $5, respectively)                                                                   |                          | **44** |   |   | 61 |   |
| Unbilled                  revenue                                                                                       |                          | **34** |   |   | 59 |   |
| Accounts                  receivables – affiliates                                                                |                          | **5** |   |   | 18 |   |
| Note                  receivable – Resources Company                                                              |                          | **-** |   |   | 42 |   |
| Materials                  and supplies                                                                                 |                          | **65** |   |   | 85 |   |
| Other                  current assets                                                                                   |                          | **43** |   |   | 50 |   |
| Total                  current assets                                                                                   |                          | **214** |   |   | 318 |   |
| **Property                  and Plant, Net**                                                                            |                          | **1,209** |   |   | 1,212 |   |
| **Investments                  and Other Assets:**                                                                      |                          |   |   |   |   |   |
| Investments                  in leveraged leases                                                                        |                          | **-** |   |   | 21 |   |
| Goodwill                                                                                                                |                          | **575** |   |   | 575 |   |
| Intangible                  assets                                                                                      |                          | **58** |   |   | 62 |   |
| Other                  assets                                                                                           |                          | **19** |   |   | 35 |   |
| Regulatory                  assets                                                                                      |                          | **11** |   |   | 11 |   |
| Total                  investments and other assets                                                                     |                          | **663** |   |   | 704 |   |
| **TOTAL                  ASSETS**                                                                                       | **$**                         | **2,086** |   | $ | 2,234 |   |
|                                                                                                                    |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDER'S EQUITY**                                                               |                          |   |   |   |   |   |
| **Current                  Liabilities:**                                                                               |                          |   |   |   |   |   |
| Current                  maturities of long-term debt                                                                   | **$**                         | **50** |   | $ | - |   |
| Borrowings                  from money pool                                                                             |                          | **65** |   |   | 154 |   |
| Intercompany                  note payable – Ameren                                                               |                          | **156** |   |   | 186 |   |
| Accounts                  and wages payable                                                                             |                          | **33** |   |   | 81 |   |
| Accounts                  and wages payable – affiliates                                                          |                          | **44** |   |   | 28 |   |
| Other                  current liabilities                                                                              |                          | **51** |   |   | 55 |   |
| Total                  current liabilities                                                                              |                          | **399** |   |   | 504 |   |
| **Long-term                  Debt, Net**                                                                                |                          | **565** |   |   | 534 |   |
| **Preferred                  Stock of Subsidiary Subject to Mandatory                  Redemption**                     |                          | **19** |   |   | 19 |   |
| **Deferred                  Credits and Other Liabilities:**                                                            |                          |   |   |   |   |   |
| Accumulated                  deferred income taxes, net                                                                 |                          | **151** |   |   | 163 |   |
| Accumulated                  deferred investment tax credits                                                            |                          | **8** |   |   | 9 |   |
| Regulatory                  liabilities                                                                                 |                          | **46** |   |   | 41 |   |
| Accrued                  pension and other postretirement benefits                                                      |                          | **250** |   |   | 251 |   |
| Other                  deferred credits and liabilities                                                                 |                          | **22** |   |   | 31 |   |
| Total                  deferred credits and other liabilities                                                           |                          | **477** |   |   | 495 |   |
| **Preferred                  Stock of Subsidiary Not Subject to Mandatory                  Redemption**                 |                          | **19** |   |   | 19 |   |
| **Commitments                  and Contingencies (Notes 2 and 8)**                                                      |                          |   |   |   |   |   |
| **Stockholder's                  Equity:**                                                                              |                          |   |   |   |   |   |
| Common                  stock, no par value, 10,000 shares authorized – 1,000 shares                  outstanding |                          | **-** |   |   | - |   |
| Other                  paid-in capital                                                                                  |                          | **598** |   |   | 640 |   |
| Retained                  earnings                                                                                      |                          | **1** |   |   | - |   |
| Accumulated                  other comprehensive income                                                                 |                          | **8** |   |   | 23 |   |
| Total                  stockholder's equity                                                                             |                          | **607** |   |   | 663 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDER'S EQUITY**                                                         | **$**                         | **2,086** |   | $ | 2,234 |   |
|                                                                                                                    |                          |   |   |   |   |   |

**The          accompanying notes as they relate to CILCORP are an integral part of these          consolidated financial statements.**

----

| **CILCORP                  INC.**                                    |                                  |
|----------------------------------------------------------------------|---------------------------------------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS**            |                                  |
| **(Unaudited)                  (In millions)**                       |                                  |
|                                                                 |                                  |   |   |   |
|                                                                 | **Six                  Months Ended** |   |
|                                                                 | **June                  30,**         |   |
|                                                                 |                                  | **2006** |   |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**           |                                  |   |   |   |   |   |
| Net                  income                                          | **$**                                 | **9** |   | $ | 11 |   |
| Adjustments                  to reconcile net income to net cash     |                                  |   |   |   |   |   |
| provided                  by operating activities:                   |                                  |   |   |   |   |   |
| Depreciation                  and amortization                       |                                  | **50** |   |   | 51 |   |
| Deferred                  income taxes and investment tax credits    |                                  | **(4** | **)** |   | (13 | ) |
| Loss                  on sale of leveraged lease investments         |                                  | **4** |   |   | - |   |
| Other                                                                |                                  | **(1** | **)** |   | (3 | ) |
| Changes                  in assets and liabilities:                  |                                  |   |   |   |   |   |
| Receivables,                  net                                    |                                  | **55** |   |   | 23 |   |
| Materials                  and supplies                              |                                  | **20** |   |   | 16 |   |
| Accounts                  and wages payable                          |                                  | **(26** | **)** |   | (35 | ) |
| Taxes                  accrued                                       |                                  | **(13** | **)** |   | (4 | ) |
| Assets,                  other                                       |                                  | **20** |   |   | (1 | ) |
| Liabilities,                  other                                  |                                  | **(9** | **)** |   | 3 |   |
| Pension                  and postretirement benefit obligations, net |                                  | **1** |   |   | 7 |   |
| Net                  cash provided by operating activities           |                                  | **106** |   |   | 55 |   |
|                                                                 |                                  |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**           |                                  |   |   |   |   |   |
| Capital                  expenditures                                |                                  | **(42** | **)** |   | (47 | ) |
| Proceeds                  from note receivable - Resources Company   |                                  | **42** |   |   | - |   |
| Changes                  in money pool advances                      |                                  | **-** |   |   | 3 |   |
| Proceeds                  from sale of leveraged leases              |                                  | **11** |   |   | - |   |
| Purchases                  of emission allowances               |                                  | **(12** | **)** |   | (21 | ) |
| Sales                  of emission allowances                   |                                  | **1** |   |   |  1 |   |
| Net                  cash provided by (used in) investing activities |                                  | **-** |   |   | (64 | ) |
|                                                                 |                                  |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**           |                                  |   |   |   |   |   |
| Dividends                  on common stock                           |                                  | **(50** | **)** |   | (30 | ) |
| Capital                  issuance costs                              |                                  | **(1** | **)** |   | - |   |
| Changes                  in money pool borrowings                    |                                  | **(89** | **)** |   | (82 | ) |
| Proceeds                  (repayment) - note payable - Ameren        |                                  | **(30** | **)** |   | 22 |   |
| Redemptions,                  repurchases, and maturities:           |                                  |   |   |   |   |   |
| Long-term                  debt                                      |                                  | **(12** | **)** |   | (6 | ) |
| Issuance                  of long-term debt                          |                                  | **96** |   |   | - |   |
| Capital                  contribution from parent                    |                                  | **-** |   |   | 101 |   |
| Net                  cash provided by (used in) financing activities |                                  | **(86** | **)** |   | 5 |   |
|                                                                 |                                  |   |   |   |   |   |
| Net                  change in cash and cash equivalents             |                                  | **20** |   |   | (4 | ) |
| Cash                  and cash equivalents at beginning of year      |                                  | **3** |   |   | 7 |   |
| Cash                  and cash equivalents at end of period          | **$**                                 | **23** |   | $ | 3 |   |
|                                                                 |                                  |   |   |   |   |   |

**The        accompanying notes as they relate to CILCORP are an integral part of these        consolidated financial statements.**

----

| **CENTRAL                  ILLINOIS LIGHT COMPANY**             |                                                                 |
|-----------------------------------------------------------------|----------------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF INCOME**           |                                                                 |
| **(Unaudited)                  (In millions)**                  |                                                                 |
|                                                            |                                                                 |   |   |   |   |   |   |   |
|                                                            | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                            | **2006**                                                             |   | **2005** |   | **2006** |   | **2005** |   |
| **Operating                  Revenues:**                        |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                        | **$**                                                                | **98** |   | $ | 99 |   | **$** | **190** |   | $ | 192 |   |
| Gas                                                             |                                                                 | **48** |   |   | 46 |   |   | **198** |   |   | 171 |   |
| Total                  operating revenues                       |                                                                 | **146** |   |   | 145 |   |   | **388** |   |   | 363 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**                        |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Fuel                  and purchased power                       |                                                                 | **31** |   |   | 37 |   |   | **56** |   |   | 68 |   |
| Gas                  purchased for resale                       |                                                                 | **32** |   |   | 28 |   |   | **151** |   |   | 119 |   |
| Other                  operations and maintenance               |                                                                 | **52** |   |   | 40 |   |   | **93** |   |   | 84 |   |
| Depreciation                  and amortization                  |                                                                 | **17** |   |   | 16 |   |   | **34** |   |   | 33 |   |
| Taxes                  other than income taxes                  |                                                                 | **4** |   |   | 4 |   |   | **13** |   |   | 10 |   |
| Total                  operating expenses                       |                                                                 | **136** |   |   | 125 |   |   | **347** |   |   | 314 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                           |                                                                 | **10** |   |   | 20 |   |   | **41** |   |   | 49 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Expenses:**                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  expense                          |                                                                 | **(1** | **)** |   | (2 | ) |   | **(2** | **)** |   | (3 | ) |
| Total                  other expenses                           |                                                                 | **(1** | **)** |   | (2 | ) |   | **(2** | **)** |   | (3 | ) |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                           |                                                                 | **4** |   |   | 3 |   |   | **8** |   |   | 7 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Income Taxes**                 |                                                                 | **5** |   |   | 15 |   |   | **31** |   |   | 39 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes (Benefit)**                     |                                                                 | **(3** | **)** |   | 5 |   |   | **6** |   |   | 13 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                 |                                                                 | **8** |   |   | 10 |   |   | **25** |   |   | 26 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                  Stock Dividends**                  |                                                                 | **1** |   |   | - |   |   | **1** |   |   | 1 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income Available to Common Stockholder** | **$**                                                                | **7** |   | $ | 10 |   | **$** | **24** |   | $ | 25 |   |
|                                                            |                                                                 |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to CILCO are an integral part of these        consolidated financial statements.**

----

| **CENTRAL                  ILLINOIS LIGHT COMPANY**                                                                  |                          |
|----------------------------------------------------------------------------------------------------------------------|-------------------------------|
| **CONSOLIDATED                  BALANCE SHEET**                                                                      |                          |
| **(Unaudited)                  (In millions)**                                                                       |                          |
|                                                                                                                 |                          |   |   |   |
|                                                                                                                 | **June                  30,** |   | **December                  31,** |   |
|                                                                                                                 | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                                           |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                                 |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                                           | **$**                         | **22** |   | $ | 2 |   |
| Accounts                  receivable – trade (less allowance for doubtful                                      |                          |   |   |   |   |   |
| accounts                  of $6 and $5, respectively)                                                                |                          | **45** |   |   | 61 |   |
| Unbilled                  revenue                                                                                    |                          | **34** |   |   | 59 |   |
| Accounts                  receivable – affiliates                                                              |                          | **2** |   |   | 14 |   |
| Materials                  and supplies                                                                              |                          | **65** |   |   | 87 |   |
| Other                  current assets                                                                                |                          | **40** |   |   | 43 |   |
| Total                  current assets                                                                                |                          | **208** |   |   | 266 |   |
| **Property                  and Plant, Net**                                                                         |                          | **1,219** |   |   | 1,214 |   |
| **Investments                  in Leveraged Leases**                                                                 |                          | **-** |   |   | 21 |   |
| **Intangible                  Assets**                                                                               |                          | **7** |   |   | 4 |   |
| **Other                  Assets**                                                                                    |                          | **25** |   |   | 41 |   |
| **Regulatory                  Assets**                                                                               |                          | **11** |   |   | 11 |   |
| **TOTAL                  ASSETS**                                                                                    | **$**                         | **1,470** |   | $ | 1,557 |   |
|                                                                                                                 |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                            |                          |   |   |   |   |   |
| **Current                  Liabilities:**                                                                            |                          |   |   |   |   |   |
| Current                  maturities of long-term debt                                                                | **$**                         | **50** |   | $ | - |   |
| Borrowings                  from money pool                                                                          |                          | **66** |   |   | 161 |   |
| Accounts                  and wages payable                                                                          |                          | **32** |   |   | 81 |   |
| Accounts                  and wages payable – affiliates                                                       |                          | **43** |   |   | 26 |   |
| Other                  current liabilities                                                                           |                          | **44** |   |   | 48 |   |
| Total                  current liabilities                                                                           |                          | **235** |   |   | 316 |   |
| **Long-term                  Debt, Net**                                                                             |                          | **168** |   |   | 122 |   |
| **Preferred                  Stock Subject to Mandatory Redemption**                                                 |                          | **19** |   |   | 19 |   |
| **Deferred                  Credits and Other Liabilities:**                                                         |                          |   |   |   |   |   |
| Accumulated                  deferred income taxes, net                                                              |                          | **153** |   |   | 167 |   |
| Accumulated                  deferred investment tax credits                                                         |                          | **8** |   |   | 8 |   |
| Regulatory                  liabilities                                                                              |                          | **195** |   |   | 187 |   |
| Accrued                  pension and other postretirement benefits                                                   |                          | **150** |   |   | 146 |   |
| Other                  deferred credits and liabilities                                                              |                          | **22** |   |   | 30 |   |
| Total                  deferred credits and other liabilities                                                        |                          | **528** |   |   | 538 |   |
| **Commitments                  and Contingencies (Notes 2 and 8)**                                                   |                          |   |   |   |   |   |
| **Stockholders'                  Equity:**                                                                           |                          |   |   |   |   |   |
| Common                  stock, no par value, 20.0 shares authorized – 13.6 shares                  outstanding |                          | **-** |   |   | - |   |
| Preferred                  stock not subject to mandatory redemption                                                 |                          | **19** |   |   | 19 |   |
| Other                  paid-in capital                                                                               |                          | **413** |   |   | 415 |   |
| Retained                  earnings                                                                                   |                          | **93** |   |   | 119 |   |
| Accumulated                  other comprehensive income (loss)                                                       |                          | **(5** | **)** |   | 9 |   |
| Total                  stockholders' equity                                                                          |                          | **520** |   |   | 562 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                      | **$**                         | **1,470** |   | $ | 1,557 |   |
|                                                                                                                 |                          |   |   |   |   |   |

**The        accompanying notes as they relate to CILCO are an integral part of these        consolidated financial statements.**

----

| **CENTRAL                  ILLINOIS LIGHT COMPANY**                  |                                  |
|----------------------------------------------------------------------|---------------------------------------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS**            |                                  |
| **(Unaudited)                  (In millions)**                       |                                  |
|                                                                 |                                  |   |   |   |
|                                                                 | **Six                  Months Ended** |   |
|                                                                 | **June                  30,**         |   |
|                                                                 | **2006**                              |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**           |                                  |   |   |   |   |   |
| Net                  income                                          | **$**                                 | **25** |   | $ | 26 |   |
| Adjustments                  to reconcile net income to net cash     |                                  |   |   |   |   |   |
| provided                  by operating activities:                   |                                  |   |   |   |   |   |
| Depreciation                  and amortization                       |                                  | **40** |   |   | 42 |   |
| Deferred                  income taxes and investment tax credits    |                                  | **(3** | **)** |   | (8 | ) |
| Loss                  on sale of leveraged leases                    |                                  | **6** |   |   | - |   |
| Other                                                                |                                  | **(1** | **)** |   | 3 |   |
| Changes                  in assets and liabilities:                  |                                  |   |   |   |   |   |
| Receivables,                  net                                    |                                  | **53** |   |   | 22 |   |
| Materials                  and supplies                              |                                  | **22** |   |   | 17 |   |
| Accounts                  and wages payable                          |                                  | **(26** | **)** |   | (32 | ) |
| Taxes                  accrued                                       |                                  | **(17** | **)** |   | - |   |
| Assets,                  other                                       |                                  | **15** |   |   | (1 | ) |
| Liabilities,                  other                                  |                                  | **(5** | **)** |   | (5 | ) |
| Pension                  and postretirement benefit obligations, net |                                  | **4** |   |   | 13 |   |
| Net                  cash provided by operating activities           |                                  | **113** |   |   | 77 |   |
|                                                                 |                                  |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**           |                                  |   |   |   |   |   |
| Capital                  expenditures                                |                                  | **(42** | **)** |   | (47 | ) |
| Proceeds                  from sale of leveraged leases              |                                  | **11** |   |   | - |   |
| Purchases                  of emission allowances                    |                                  | **(12** | **)** |   | (21 | ) |
| Sales                  of emission allowances                        |                                  | **1** |   |   | 1 |   |
| Net                  cash used in investing activities               |                                  | **(42** | **)** |   | (67 | ) |
|                                                                 |                                  |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**           |                                  |   |   |   |   |   |
| Dividends                  on common stock                           |                                  | **(50** | **)** |   | (20 | ) |
| Dividends                  on preferred stock                        |                                  | **(1** | **)** |   | (1 | ) |
| Capital                  issuance costs                              |                                  | **(1** | **)** |   | - |   |
| Changes                  in money pool borrowings                    |                                  | **(95** | **)** |   | (91 | ) |
| Issuance                  of long-term debt                          |                                  | **96** |   |   | - |   |
| Capital                  contribution from parent                    |                                  | **-** |   |   | 101 |   |
| Net                  cash used in financing activities               |                                  | **(51** | **)** |   | (11 | ) |
|                                                                 |                                  |   |   |   |   |   |
| Net                  change in cash and cash equivalents             |                                  | **20** |   |   | (1 | ) |
| Cash                  and cash equivalents at beginning of year      |                                  | **2** |   |   | 2 |   |
| Cash                  and cash equivalents at end of period          | **$**                                 | **22** |   | $ | 1 |   |
|                                                                 |                                  |   |   |   |   |   |

**The        accompanying notes as they relate to CILCO are an integral part of these        consolidated financial statements.**

----

| **ILLINOIS                  POWER COMPANY**                     |
|-----------------------------------------------------------------|
| **CONSOLIDATED                  STATEMENT OF INCOME**           |
| **(Unaudited)                  (In millions)**                  |
|                                                            |
|                                                            | **Three                  Months Ended****June                  30,** |   | **Six                  Months Ended****June                  30,** |   |
|                                                            | **2006** |   | **2005** |   | **2006** |   | **2005** |   |
| **Operating                  Revenues:**                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Electric                                                        | **$** | **271** |   | $ | 268 |   | **$** | **513** |   | $ | 503 |   |
| Gas                                                             |   | **67** |   |   | 73 |   |   | **322** |   |   | 270 |   |
| Other                                                           |   | **1** |   |   | - |   |   | **1** |   |   | - |   |
| Total                  operating revenues                       |   | **339** |   |   | 341 |   |   | **836** |   |   | 773 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Expenses:**                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased                  power                                |   | **171** |   |   | 165 |   |   | **348** |   |   | 322 |   |
| Gas                  purchased for resale                       |   | **36** |   |   | 44 |   |   | **237** |   |   | 190 |   |
| Other                  operations and maintenance               |   | **61** |   |   | 60 |   |   | **120** |   |   | 102 |   |
| Depreciation                  and amortization                  |   | **18** |   |   | 19 |   |   | **37** |   |   | 40 |   |
| Taxes                  other than income taxes                  |   | **16** |   |   | 18 |   |   | **38** |   |   | 40 |   |
| Total                  operating expenses                       |   | **302** |   |   | 306 |   |   | **780** |   |   | 694 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  Income**                           |   | **37** |   |   | 35 |   |   | **56** |   |   | 79 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income and Expenses:**                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous                  income                           |   | **1** |   |   | 2 |   |   | **2** |   |   | 4 |   |
| Miscellaneous                  expense                          |   | **(1** | **)** |   | (1 | ) |   | **(2** | **)** |   | (1 | ) |
| Total                  other income                             |   | **-** |   |   | 1 |   |   | **-** |   |   | 3 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Charges**                           |   | **12** |   |   | 11 |   |   | **24** |   |   | 21 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Before Income Taxes**                 |   | **25** |   |   | 25 |   |   | **32** |   |   | 61 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Taxes**                               |   | **9** |   |   | 10 |   |   | **12** |   |   | 24 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income**                                 |   | **16** |   |   | 15 |   |   | **20** |   |   | 37 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Preferred                  Stock Dividends**                  |   | **-** |   |   | - |   |   | **1** |   |   | 1 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income Available to Common Stockholder** | **$** | **16** |   | $ | 15 |   | **$** | **19** |   | $ | 36 |   |
|                                                            |   |   |   |   |   |   |   |   |   |   |   |   |

**The        accompanying notes as they relate to IP are an integral part of these        consolidated financial statements.**

----

| **ILLINOIS                  POWER COMPANY**                                                          |                          |
|------------------------------------------------------------------------------------------------------|-------------------------------|
| **CONSOLIDATED                  BALANCE SHEET**                                                      |                          |
| **(Unaudited)                  (In millions)**                                                       |                          |
|                                                                                                 |                          |   |   |   |
|                                                                                                 | **June                  30,** |   | **December                  31,** |   |
|                                                                                                 | **2006**                      |   | **2005** |   |
| **ASSETS**                                                                                           |                          |   |   |   |   |   |
| **Current                  Assets:**                                                                 |                          |   |   |   |   |   |
| Cash                  and cash equivalents                                                           | **$**                         | **1** |   | $ | - |   |
| Accounts                  receivable (less allowance for doubtful                                    |                          |   |   |   |  |   |
| accounts                  of $8 and $8, respectively)                                                |                          | **114** |   |   | 155 |   |
| Unbilled                  revenue                                                                    |                          | **85** |   |   | 118 |   |
| Accounts                  receivable – affiliates                                              |                          | **13** |   |   | 5 |   |
| Materials                  and supplies                                                              |                          | **91** |   |   | 122 |   |
| Other                  current assets                                                                |                          | **13** |   |   | 31 |   |
| Total                  current assets                                                                |                          | **317** |   |   | 431 |   |
| **Property                  and Plant, Net**                                                         |                          | **2,075** |   |   | 2,035 |   |
| **Investments                  and Other Assets:**                                                   |                          |   |   |   |   |   |
| Investment                  in IP SPT                                                                |                          | **7** |   |   | 7 |   |
| Goodwill                                                                                             |                          | **326** |   |   | 326 |   |
| Other                  assets                                                                        |                          | **52** |   |   | 44 |   |
| Regulatory                  assets                                                                   |                          | **198** |   |   | 194 |   |
| Accumulated                  deferred income taxes                                                   |                          | **-** |   |   | 19 |   |
| Total                  investments and other assets                                                  |                          | **583** |   |   | 590 |   |
| **TOTAL                  ASSETS**                                                                    | **$**                         | **2,975** |   | $ | 3,056 |   |
|                                                                                                 |                          |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                      |                          |   |   |   |   |   |
| **Current                  Liabilities**:                                                            |                          |   |   |   |   |   |
| Current                  maturities of long-term debt to IP SPT                                      | **$**                         | **64** |   | $ | 72 |   |
| Borrowings                  from money pool                                                          |                          | **54** |   |   | 75 |   |
| Accounts                  and wages payable                                                          |                          | **93** |   |   | 145 |   |
| Accounts                  and wages payable – affiliates                                       |                          | **18** |   |   | 29 |   |
| Taxes                  accrued                                                                       |                          | **-** |   |   | 15 |   |
| Other                  current liabilities                                                           |                          | **105** |   |   | 135 |   |
| Total                  current liabilities                                                           |                          | **334** |   |   | 471 |   |
| **Long-term                  Debt, Net**                                                             |                          | **776** |   |   | 704 |   |
| **Long-term                  Debt to IP SPT**                                                        |                          | **138** |   |   | 184 |   |
| **Deferred                  Credits and Other Liabilities:**                                         |                          |   |   |   |   |   |
| Regulatory                  liabilities                                                              |                          | **108** |   |   | 80 |   |
| Accrued                  pension and other postretirement benefits                                   |                          | **256** |   |   | 255 |   |
| Other                  deferred credits and other noncurrent liabilities                             |                          | **57** |   |   | 75 |   |
| Total                  deferred credits and other liabilities                                        |                          | **421** |   |   | 410 |   |
| **Commitments                  and Contingencies (Notes 2 and 8)**                                   |                          |   |   |   |   |   |
| **Stockholders’                  Equity:**                                                     |                          |   |   |   |   |   |
| Common                  stock, no par value, 100.0 shares authorized – 23.0 shares outstanding |                          | **-** |   |   | - |   |
| Other                  paid-in-capital                                                               |                          | **1,196** |   |   | 1,196 |   |
| Preferred                  stock not subject to mandatory redemption                                 |                          | **46** |   |   | 46 |   |
| Retained                  earnings                                                                   |                          | **65** |   |   | 46 |   |
| Accumulated                  other comprehensive loss                                                |                          | **(1** | **)** |   | (1 | ) |
| Total                  stockholders’ equity                                                    |                          | **1,306** |   |   | 1,287 |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS’ EQUITY**                                | **$**                         | **2,975** |   | $ | 3,056 |   |
|                                                                                                 |                          |   |   |   |   |   |
|                                                                                                 |                          |   |   |   |   |   |

**The        accompanying notes as they relate to IP are an integral part of these        consolidated financial statements.**

----

| **ILLINOIS                  POWER COMPANY**                                |                                  |
|----------------------------------------------------------------------------|---------------------------------------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS**                  |                                  |
| **(Unaudited)                  (In millions)**                             |                                  |
|                                                                       |                                  |   |   |   |
|                                                                       | **Six                  Months Ended** |   |
|                                                                       | **June                  30,**         |   |
|                                                                       | **2006**                              |   | **2005** |   |
| **Cash                  Flows From Operating Activities:**                 |                                  |   |   |   |   |   |
| Net                  income                                                | **$**                                 | **20** |   | $ | 37 |   |
| Adjustments                  to reconcile net income to net cash           |                                  |   |   |   |   |   |
| provided                  by operating activities:                         |                                  |   |   |   |   |   |
| Depreciation                  and amortization                             |                                  | **15** |   |   | 9 |   |
| Amortization                  of debt issuance costs and premium/discounts |                                  | **2** |   |   | 2 |   |
| Deferred                  income taxes                                     |                                  | **20** |   |   | 39 |   |
| Changes                  in assets and liabilities:                        |                                  |   |   |   |   |   |
| Receivables,                  net                                          |                                  | **66** |   |   | 40 |   |
| Materials                  and supplies                                    |                                  | **31** |   |   | 20 |   |
| Accounts                  and wages payable                                |                                  | **(61** | **)** |   | 1 |   |
| Assets,                  other                                             |                                  | **12** |   |   | (19 | ) |
| Liabilities,                  other                                        |                                  | **(24** | **)** |   | 16 |   |
| Pension                  and other postretirement benefit obligations, net |                                  | **5** |   |   | 4 |   |
| Net                  cash provided by operating activities                 |                                  | **86** |   |   | 149 |   |
|                                                                       |                                  |   |   |   |   |   |
| **Cash                  Flows From Investing Activities:**                 |                                  |   |   |   |   |   |
| Capital                  expenditures                                      |                                  | **(83** | **)** |   | (61 | ) |
| Changes                  in money pool advances                            |                                  | **-** |   |   | 69 |   |
| Net                  cash provided by (used in) investing activities       |                                  | **(83** | **)** |   | 8 |   |
|                                                                       |                                  |   |   |   |   |   |
| **Cash                  Flows From Financing Activities:**                 |                                  |   |   |   |   |   |
| Dividends                  on common stock                                 |                                  | **-** |   |   | (40 | ) |
| Dividends                  on preferred stock                              |                                  | **(1** | **)** |   | (1 | ) |
| Capital                  issuance costs                                    |                                  | **(1** | **)** |   | - |   |
| Changes                  in money pool borrowings, net                     |                                  | **(21** | **)** |   | - |   |
| Redemptions                  and repurchases of long-term debt             |                                  | **(46** | **)** |   | (113 | ) |
| Issuances                  of long-term debt                               |                                  | **75** |   |   | - |   |
| Transitional                  funding trust notes overfunding              |                                  | **(8** | **)** |   | (3 | ) |
| Net                  cash used in financing activities                     |                                  | **(2** | **)** |   | (157 | ) |
|                                                                       |                                  |   |   |   |   |   |
| Net                  change in cash and cash equivalents                   |                                  | **1** |   |   | - |   |
| Cash                  and cash equivalents at beginning of year            |                                  | - |   |   | 5 |   |
| Cash                  and cash equivalents at end of period                | **$**                                 | **1** |   | $ | 5 |   |
|                                                                       |                                  |   |   |   |   |   |

**The        accompanying notes as they relate to IP are an integral part of these        consolidated financial statements.**

----

**AMEREN      CORPORATION **
**(Consolidated)**

**UNION      ELECTRIC COMPANY **
**(Consolidated)**

**CENTRAL      ILLINOIS PUBLIC SERVICE COMPANY**

**AMEREN      ENERGY GENERATING COMPANY **
**(Consolidated)**

**CILCORP      INC. **
**(Consolidated)**

**CENTRAL      ILLINOIS LIGHT COMPANY **
**(Consolidated)**

**ILLINOIS      POWER COMPANY **
**(Consolidated)**

**COMBINED      NOTES TO FINANCIAL STATEMENTS**

**(Unaudited)**

**June      30, 2006**

**NOTE      1 - **
**SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES**
** **

**General**

| ·   | UE,                or Union Electric Company, also known as AmerenUE, operates a                rate-regulated electric generation, transmission and distribution                business, and a rate-regulated natural gas transmission and distribution                business in Missouri. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | CIPS,                or Central Illinois Public Service Company, also known as AmerenCIPS,                operates a rate-regulated electric and natural gas transmission and                distribution business in Illinois. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Genco,                or Ameren Energy Generating Company, operates a non-rate-regulated                electric generation business in Illinois and Missouri. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | CILCO,                or Central Illinois Light Company, also known as AmerenCILCO, is                a                subsidiary of CILCORP (a holding company). It operates a rate-regulated                electric transmission and distribution business, a primarily                non-rate-regulated electric generation business (through its subsidiary                AERG), and a rate-regulated natural gas transmission and distribution                business in Illinois. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | IP,                or Illinois Power Company, also known as AmerenIP, operates a                rate-regulated electric and natural gas transmission and distribution                business in Illinois. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              | **Three                Months** |         | **Six                Months** |   |
|-----------------------------------|---------------------------------|--------------|-------------------------------|--------|
|                              | **2006**                        |         | **2005**                      |   | **2006** |   | **2005** |   |
| Operating                revenues | **$**                           | **88**       |                          | $      | 42 |   | **$** | **184** |   | $ | 84 |   |
| Operating                income   |                            |  **42** |                          |   | 6 |   |   |  **98** |   |   | 11 |   |
| Net                income         |                            | **26**       |                          |   | 3 |   |   | **60** |   |   | 5 |   |

**Earnings      Per Share**

----

**Accounting        Changes and Other Matters**

**SFAS        No. 123 (revised 2004), **
***Share-based        Payment***

**Long-term      Incentive Plan of 1998 and 2006 Omnibus Incentive Compensation      Plan**

----

|                                                    | **Performance                Share Units** |    | **Restricted                Shares**                    |   |
|---------------------------------------------------------|--------------------------------------------|---------|---------------------------------------------------------|--------|
|                                                    |  **Shares**                           |    | **Weighted-average                Fair Value Per Unit** |   |  **Shares** |   | **Weighted-average                Fair Value Per Share** |   |
| Nonvested                at January 1, 2006   |                                       | -       |                                                    | $      | - |   |   | 575,469 |   | $ | 44.91 |   |
| Granted(a)                                         |                                       | 350,640 |                                                    |   | 56.07 |   |   | - |   |   | - |   |
| Dividends                on restricted shares      |                                       | -       |                                                    |   | - |   |   | 9,124 |   |   | 50.44 |   |
| Forfeitures                                        |                                       | -       |                                                    |   | - |   |   | (2,436 | ) |   | 47.58 |   |
| Vested(b)                                          |                                       | (1,319  | )                                                       |   | 56.07 |   |   | (213,198 | ) |   | 43.38 |   |
| Nonvested                at June 30, 2006          |                                       | 349,321 |                                                    | $      | 56.07 |   |   | 368,959 |   | $ | 45.79 |   |

| (a)   | Includes                220,434 performance share units (“share units”) granted to certain                executive and non-executive officers and other eligible employees                in                February 2006 under the 1998 Plan and 130,206 share units granted                in                February 2006 under the 2006 Plan to certain executive officers subject                to                shareholder approval, which was obtained on May 2, 2006. The share                units                granted under the 2006 Plan were not considered as granted until                approved                by shareholders. Accordingly, compensation expense recognition for                these                awards commenced in May 2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Share                units issued under the 1998 Plan vested due to employee death and                attainment of retirement eligibility by certain employees. Actual                shares                issued for retirement-eligible employees will vary depending on actual                performance over the three-year measurement                period. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**FASB      Interpretation No. 48, **
***Accounting      for Uncertainty in Income Taxes***
**(FIN      48)**

**Proposed      SFAS on Employer’s Accounting for Defined Benefit Pension and Other      Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and      132(R)**

**Revenue**

***Interchange      Revenues***

----

|      | **Three                Months** |    | **Six                Months** |   |
|-----------|---------------------------------|---------|-------------------------------|--------|
|      | **2006**                        |    | **2005**                      |   | **2006** |   | **2005** |   |
| Ameren(a) | **$**                           | **158** |                          | $      | 148 |   | **$** | **350** |   | $ | 254 |   |
| UE        |                            | **103** |                          |   | 129 |   |   | **241** |   |   | 226 |   |
| CIPS      |                            | **1**   |                          |   | 8 |   |   | **2** |   |   | 17 |   |
| Genco     |                            | **41**  |                          |   | 67 |   |   | **90** |   |   | 109 |   |
| CILCORP   |                            | **9**   |                          |   | 11 |   |   | **19** |   |   | 26 |   |
| CILCO     |                            | **9**   |                          |   | 11 |   |   | **19** |   |   | 26 |   |
| IP        |                            | **-**   |                          |   | (b | ) |   | **-** |   |   | (b | ) |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. Includes interchange revenues at Marketing                Company and EEI of $85 million and $174 million for the three months                and                six months ended June 30, 2006, respectively (2005 - $8 million and                $15                million, respectively). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Less                than $1 million. |
|-----------------|--------------------------------------|

**Purchased      Power**

----

|      | **Three                Months** |    | **Six                Months** |   |
|-----------|---------------------------------|---------|-------------------------------|--------|
|      | **2006**                        |    | **2005**                      |   | **2006** |   | **2005** |   |
| Ameren(a) | **$**                           | **277** |                          | $      | 244 |   | **$** | **550** |   | $ | 442 |   |
| UE        |                            | **68**  |                          |   | 66 |   |   | **135** |   |   | 104 |   |
| CIPS      |                            | **113** |                          |   | 105 |   |   | **230** |   |   | 191 |   |
| Genco     |                            | **89**  |                          |   | 68 |   |   | **185** |   |   | 117 |   |
| CILCORP   |                            | **6**   |                          |   | 13 |   |   | **8** |   |   | 22 |   |
| CILCO     |                            | **6**   |                          |   | 13 |   |   | **8** |   |   | 22 |   |
| IP        |                            | **171** |                          |   | 165 |   |   | **348** |   |   | 322 |   |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. Includes purchased power for EEI of $2                million                and $3 million for the three months and six months ended June 30,                2006,                respectively (2005 - $1 million and $1 million, respectively). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Excise        Taxes**

----

|    | **Three                Months** |   | **Six                Months** |   |
|---------|---------------------------------|--------|-------------------------------|--------|
|    | **2006**                        |   | **2005**                      |   | **2006** |   | **2005** |   |
| Ameren  | **$**                           | **39** |                          | $      | 41 |   | **$** | **85** |   | $ | 81 |   |
| UE      |                            | **27** |                          |   | 28 |   |   | **52** |   |   | 50 |   |
| CIPS    |                            | **3**  |                          |   | 2 |   |   | **9** |   |   | 7 |   |
| CILCORP |                            | **2**  |                          |   | 3 |   |   | **6** |   |   | 5 |   |
| CILCO   |                            | **2**  |                          |   | 3 |   |   | **6** |   |   | 5 |   |
| IP      |                            | **7**  |                          |   | 8 |   |   | **18** |   |   | 19 |   |

**Asset      Retirement Obligations**

**NOTE      2 - **
**RATE      AND REGULATORY MATTERS**
** **

**Missouri**

***Electric***

| ·   | A                requested return on equity of 12%, and a rate base of $5.8 billion                with a                capital structure including about 52%                equity. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                request for fuel, purchased power, and environmental cost recovery                mechanisms under the provisions of a Missouri state law enacted in                2005.                See MoPSC Rulemaking Proceeding below in this Note for additional                information. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                proposed alternative mechanism for the MoPSC’s consideration to share                off-system sales margins with                ratepayers. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An                increase in depreciation rates. |
|--------------------|---------------------------------------------------|

| ·   | Renewable                energy proposals, including the addition of 100 megawatts of renewable                energy by 2010. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Commitments                to offer low income energy assistance and energy conservation                programs. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Costs                incurred related to the December 2005 failure of UE’s Taum Sauk                pumped-storage hydroelectric plant for the clean-up of a nearby park,                reimbursement of state costs and resolution of individuals’ claims were                excluded from the revenue increase                request. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Gas***

***MoPSC      Rulemaking Proceeding***

----

**Illinois      **

***Electric***

| ·   | The                auction proposal is reasonably designed to enable CIPS, CILCO and                IP to                procure power supply in a competitive and least-cost                manner. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                first auction is to take place in the first 10 days of September                2006. |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | There                is a limitation of 35% on the amount of power any single supplier                can                provide the Ameren Illinois utilities’ expected annual load. Genco and                AERG, through Marketing Company, and UE will have the opportunity                to                participate in the power procurement auction for 2007, subject to                this                limit. Ameren-affiliated companies would be considered one supplier                for                purposes of this limitation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Requires                a portfolio of one-, two-, and three-year supply                contracts. |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Allows                full cost recovery through a rate                mechanism. |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Requires                an annual, postauction prudence review by the                ICC. |
|--------------------|-------------------------------------------------------------------------------------------|

----

----

**Federal      **

***Hydroelectric      License Renewal***

***Joint      Dispatch Agreement***

*January      2006 JDA Amendment*

*Termination      of JDA*

----

***Leveraged      Leases***

**NOTE      3 - SHORT-TERM BORROWINGS AND LIQUIDITY **

----

|                                                            | **Ameren** |     |   | **UE** |   |
|-----------------------------------------------------------------|------------|----------|--------|--------|--------|
| **June                30, 2006:**                               |       |     |   |   |   |   |   |
| Average                daily borrowings outstanding during 2006 | **$**      | **272**  |   |   | **$**  | **258** |   |
| Weighted-average                interest rate during 2006       |       | **4.87** | **%**  |   |   | **4.88** | **%** |
| Peak                short-term borrowings during 2006           | **$**      | **586**  |   |   | **$**  | **470** |   |
| Peak                interest rate during 2006                   |       | **5.50** | **%**  |   |   | **5.50** | **%** |
| **December                31, 2005:**                           |       |     |   |   |   |   |   |
| Average                daily borrowings outstanding during 2005 | $          | 162      |   |   | $      | 135 |   |
| Weighted-average                interest rate during 2005       |       | 3.02     | %      |   |   | 2.87 | % |
| Peak                short-term borrowings during 2005           | $          | 578      |   |   | $      | 424 |   |
| Peak                interest rate during 2005                   |       | 4.71     | %      |   |   | 4.52 | % |

----

**Money      Pools**

----

**Indebtedness        Provisions and Other Covenants**

*.*

----

**NOTE        4 - **
**LONG-TERM        DEBT AND EQUITY FINANCINGS**

**Ameren**

**UE**

**CIPS**

**CILCORP      **

**CILCO**

**IP**

**Indenture      Provisions and Other Covenants**

----

----

|       | **Required                Interest Coverage Ratio****(a)** |                                                                                                                                                       | **Actual                Interest Coverage Ratio** |   | **Bonds**** Issuable****(b)(c)** |   | **Required                Dividend Coverage Ratio****(d)** |                                                                                                                                                 | **Actual                Dividend Coverage Ratio** |   | **Preferred                Stock Issuable** |   |
|------------|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|---------------------------------------|--------|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|--------|---------------------------------------------|--------|
| UE         |                                                       |                                      2.0          |                                              |   | 4.4                                   |   | $                                                          |                                   2,217                    |                                              |   | 2.5                                         |   |   | 44.5 |   | $ |                                   1,426 |   |
| CIPS  |                                                       |                                      2.0(e)  |                                              |   | 3.8                                   |   |                                                       |                                      191    |                                              |   | 1.5                                         |   |   | 2.2 |   |   |                       215 |   |
| CILCO      |                                                       | 2.0(e)(f)                                                                                                                                                  |                                              |   | 9.0                                   |   |                                                       |                                      355    |                                              |   | 2.5                                         |   |   | 12.5 |   |   | 113(g)  |   |
| IP         |                                                       |                                      2.0          |                                              |   | 5.6                                   |   |                                                       |                                      645(h) |                                              |   | 1.5                                         |   |   | 2.7 |   |   |                                      521 |   |

----

|                     | **Required****Interest**** Coverage****Ratio**                                                                                                                                              | **Actual****Interest**** Coverage****Ratio** | **Required****Debt-to-****Capital****Ratio**                                                                                                                                           | **Actual****Debt-to-****Capital****Ratio** |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| Genco                (a) |                                            ≥1.75(b) | 5.1                                               |                                           ≤60% | 55%                                        |
| CILCORP(c)               |                                            ≥2.2     | 2.4                                               |                                           ≤67% | 39%                                        |

| (a)   | Interest                coverage ratio relates to covenants regarding certain dividend, principal                and interest payments on certain subordinated intercompany borrowings.                The                debt-to-capital ratio relates to a debt incurrence covenant, which                also                requires an interest coverage ratio of 2.5 for the most recently                ended                four fiscal quarters. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Ratio                excludes amounts payable under Genco’s intercompany note to CIPS and must                be met for both the prior four fiscal quarters and for the four succeeding                six-month periods. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | CILCORP                must maintain the required interest coverage ratio and debt-to-capital                ratio in order to make any payment of dividends or intercompany loans                to                affiliates other than to its direct or indirect                subsidiaries. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Off-Balance-Sheet      Arrangements**

----

**NOTE      5 **
**-      OTHER INCOME AND EXPENSES**

----

|                                                                     | **Three                Months** |   | **Six                Months** |   |
|--------------------------------------------------------------------------|---------------------------------|--------|-------------------------------|--------|
|                                                                     | **2006**                        |   | **2005**                      |   | **2006** |   | **2005** |   |
| **Ameren:****(a)**                                                       |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Interest                and dividend income                              | **$**                           | **1**  |                          | $      | 1 |   | **$** | **3** |   | $ | 2 |   |
| Allowance                for equity funds used during construction       |                            | **-**  |                          |   | 3 |   |   | **1** |   |   | 7 |   |
| Other                                                               |                            | **3**  |                          |   | 2 |   |   | **4** |   |   | 4 |   |
| Total                miscellaneous income                           | **$**                           | **4**  |                          | $      | 6 |   | **$** | **8** |   | $ | 13 |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                                    | **$**                           | **(1** | **)**                         | $      | (6 | ) | **$** | **(1** | **)** | $ | (7 | ) |
| Total                miscellaneous expense                               | **$**                           | **(1** | **)**                         | $      | (6 | ) | **$** | **(1** | **)** | $ | (7 | ) |
| **UE:**                                                                  |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Interest                and dividend income                              | **$**                           | **1**  |                          | $      | - |   | **$** | **2** |   | $ | - |   |
| Allowance                for equity funds used during construction  |                            | **-**  |                          |   | 1 |   |   | **1** |   |   | 6 |   |
| Other                                                                    |                            | **-**  |                          |   | 1 |   |   | **1** |   |   | 3 |   |
| Total                miscellaneous income                                | **$**                           | **1**  |                          | $      | 2 |   | **$** | **4** |   | $ | 9 |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                                    | **$**                           | **(2** | **)**                         | $      | (2 | ) | **$** | **(4** | **)** | $ | (4 | ) |
| Total                miscellaneous expense                               | **$**                           | **(2** | **)**                         | $      | (2 | ) | **$** | **(4** | **)** | $ | (4 | ) |
| **CIPS:**                                                                |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Interest                and dividend income                              | **$**                           | **4**  |                          | $      | 4 |   | **$** | **8** |   | $ | 9 |   |
| Other                                                                    |                            | **-**  |                          |   | - |   |   | **1** |   |   | - |   |
| Total                miscellaneous income                                | **$**                           | **4**  |                          | $      | 4 |   | **$** | **9** |   | $ | 9 |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                                    | **$**                           | **-**  |                          | $      | (4 | ) | **$** | **(1** | **)** | $ | (4 | ) |
| Total                miscellaneous expense                               | **$**                           | **-**  |                          | $      | (4 | ) | **$** | **(1** | **)** | $ | (4 | ) |
| **Genco:**                                                               |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                               | **$**                           | **-**  |                          | $      | 1 |   | **$** | **-** |   | $ | 1 |   |
| Total                miscellaneous income                                | **$**                           | **-**  |                          | $      | 1 |   | **$** | **-** |   | $ | 1 |   |
| **CILCORP:**                                                             |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Interest                and dividend income                              | **$**                           | **1**  |                          | $      | - |   | **$** | **1** |   | $ | - |   |
| Total                miscellaneous income                                | **$**                           | **1**  |                          | $      | - |   | **$** | **1** |   | $ | - |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                                    | **$**                           | **(1** | **)**                         | $      | (3 | ) | **$** | **(2** | **)** | $ | (5 | ) |
| Total                miscellaneous expense                               | **$**                           | **(1** | **)**                         | $      | (3 | ) | **$** | **(2** | **)** | $ | (5 | ) |
| **CILCO:**                                                               |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                               | **$**                           | **(1** | **)**                         | $      | (2 | ) | **$** | **(2** | **)** | $ | (3 | ) |
| Total                miscellaneous expense                               | **$**                           | **(1** | **)**                         | $      | (2 | ) | **$** | **(2** | **)** | $ | (3 | ) |
| **IP:**                                                                  |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Miscellaneous                income:                                     |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Interest                and dividend income                              | **$**                           | **1**  |                          | $      | 1 |   | **$** | **1** |   | $ | 2 |   |
| Allowance                for equity funds used during construction       |                            | **-**  |                          |   | 1 |   |   | **-** |   |   | 1 |   |
| Other                                                               |                            | **-**  |                          |   | - |   |   | **1** |   |   | 1 |   |
| Total                miscellaneous income                                | **$**                           | **1**  |                          | $      | 2 |   | **$** | **2** |   | $ | 4 |   |
| Miscellaneous                expense:                                    |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Other                                                               | **$**                           | **(1** | **)**                         | $      | (1 | ) | **$** | **(2** | **)** | $ | (1 | ) |
| Total                miscellaneous expense                               | **$**                           | **(1** | **)**                         | $      | (1 | ) | **$** | **(2** | **)** | $ | (1 | ) |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

**NOTE      6 - DERIVATIVE FINANCIAL INSTRUMENTS**

----

----

|                                                       |  **Ameren**(a) |   |  **UE** |   |  **CIPS** |   |  **Genco** |   | **CILCORP/****CILCO** |   |  **IP** |   |
|------------------------------------------------------------|---------------------|--------|--------------|--------|----------------|--------|-----------------|--------|-----------------------|--------|--------------|--------|
| Derivative                instruments carrying value:      |                |   |         |   |           |   |            |   |                  |   |         |   |
| Total                assets                                | $                   | 59     |         | $      | 4              |   | $               | 4      |                  | $      | 1            |   | $ | 18 |   | $ | 4 |   |
| Total                deferred credits and liabilities      |                | 16     |         |   | 6              |   |            | -      |                  |   | -            |   |   | - |   |   | 2 |   |
| Gains                (losses) deferred in Accumulated OCI: |                |   |         |   |           |   |            |   |                  |   |         |   |   |   |   |   |   |   |
| Power                forwards and swaps(b)                 |                | 23     |         |   | 1              |   |            | -      |                  |   | 1            |   |   | - |   |   | (2 | ) |
| Interest                rate swaps(c)                 |                | 4      |         |   | -              |   |            | -      |                  |   | 4            |   |   | - |   |   | - |   |
| Gas                swaps and futures contracts(d)          |                | 22     |         |   | 2              |   |            | 4      |                  |   | -            |   |   | 17 |   |   | - |   |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Represents                the mark-to-market value for the hedged portion of electricity price                exposure for periods of up to four years. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Represents                a gain associated with interest rate swaps at Genco that were a partial                hedge of the interest rate on debt issued in June 2002. The swaps                cover                the first 10 years of debt that has a 30-year maturity and the gain                in OCI                is amortized over a 10-year period that began in June                2002. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Represents                gains associated with natural gas swaps and futures contracts. The                swaps                are a partial hedge of our natural gas requirements through March                2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other      Derivatives**

----

|                                   | **Three                Months** |   | **Six                Months** |   |
|----------------------------------------|---------------------------------|--------|-------------------------------|--------|
| **Gains                (Losses)**      | **2006**                        |   | **2005**                      |   | **2006** |   | **2005** |   |
| **SO****2****options and swaps:**      |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Ameren                                 | **$**                           | **(2** | **)**                         | $      | - |   | **$** | **(3** | **)** | $ | (6 | ) |
| UE                                     |                            | **(1** | **)**                         |   | - |   |   | **2** |   |   | (1 | ) |
| Genco                                  |                            | **(1** | **)**                         |   | - |   |   | **(4** | **)** |   | (5 | ) |
| CILCO/CILCORP                          |                            | **-**  |                          |   | - |   |   | **(1** | **)** |   | - |   |
| **Coal                Options:**  |                            |   |                          |   |   |   |   |   |   |   |   |   |
| Ameren                                 |                            | **(1** | **)**                         |   | - |   |   | **(1** | **)** |   | - |   |
| UE                                     |                            | **(1** | **)**                         |   | - |   |   | **(1** | **)** |   | - |   |

**NOTE      7 - **
**RELATED      PARTY TRANSACTIONS**

**Electric      Power Supply Agreements **

----

|                                                           | **Three                Months** |      | **Six                Months** |   |
|----------------------------------------------------------------|---------------------------------|-----------|-------------------------------|--------|
|                                                           | **2006**                        |      | **2005**                      |   | **2006** |   | **2005** |   |
| Genco                sales to Marketing                Company |                            | **5,296** |                          |   | 5,196 |   |   | **10,887** |   |   | 10,096 |   |
| Marketing                Company sales                to CIPS  |                            | **2,997** |                          |   | 2,497 |   |   | **6,076** |   |   | 4,553 |   |
| EEI                sales to UE                                 |                            | **-**     |                          |   | 744 |   |   | **-** |   |   | 1,441 |   |
| EEI                sales to CIPS                          |                            | **-**     |                          |   | 371 |   |   | **-** |   |   | 943 |   |
| EEI                sales to IP                            |                            | **-**     |                          |   | 381 |   |   | **-** |   |   | 794 |   |

**Joint      Dispatch Agreement**

----

----

|                                   | **Three                Months** | **Six                Months** |
|----------------------------------------|---------------------------------|-------------------------------|
|                                   | **2006**                        | **2005**                      | **2006** | **2005** |
| UE                sales to Genco  | **2,639**                       | 3,814                         | **5,434** | 6,763 |
| Genco                sales to UE  | **1,111**                       | 1,219                         | **1,717** | 1,816 |

----

|              | **Three                    Months**                                                                                                                       | **Six                    Months**                                                                                                                     |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|              | **2006**                                                                                                                                                  | **2005**                                                                                                                                              | **2006** | **2005** |
| UE                | **$                                         25** | $                                         43 | **$                                         ****58** | $                                         79 |
| Genco        | **                     5**                                                                                                                           |                                        27              | **                     17** |                                            47 |
| Total   | **$                   ** **30**                       | $                                         70 | **$                                          ****75** | $                                       126 |

**Money      Pools**

**Intercompany      Promissory Notes**

----

|                                                          |     |   | **Three                Months** |   | **Six                Months** |   |
|---------------------------------------------------------------|----------|--------|---------------------------------|--------|-------------------------------|--------|
| **Agreement**                                                 |     |   | **UE**                          |   | **CIPS**                      |   | **Genco** |  **CILCORP****(a)** | **IP** |   | **UE** |   | **CIPS** |   | **Genco** |  **CILCORP****(a)** | **IP** |   |
|                                                          |     |   |                            |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Revenues:**                        |     |   |                            |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Power                supply agreement                         | **2006** |   | **$**                           | **(b** | **)**                         | **$**  | **(b** | **)** | **$** | **194** |   | **$** | **1** |   | **$** | **(b** | **)** | **$** | **(b** | **)** | **$** | **(b** | **)** | **$** | **389** |   | **$** | **5** |   | **$** | **(b** | **)** |
| with                Marketing Company                         | 2005     |   |                            | (b     | )                             |   | 8 |   |   | 195 |   |   | 6 |   |   | (b | ) |   | (b | ) |   | 17 |   |   | 374 |   |   | 21 |   |   | (b | ) |
|                                                          |     |   |                            |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Power                supply agreement with                EEI | 2005     |   |                            | (c     | )                             |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |   | (c | ) |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |
|                                                          |     |   |                            |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| UE                and Genco gas                               | **2006** |   |                            | **(c** | **)**                         |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |
| transportation                agreement                       | 2005     |   |                            | (c     | )                             |   | (b | ) |   | (b | ) |   | (b | ) |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |   | (b | ) |   | (b | ) |
|                                                          |     |   |                            |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| JDA                                                           | **2006** |   |                            | **49** |                          |   | **(b** | **)** |   | **27** |   |   | **(b** | **)** |   | **(b** | **)** |   | **121** |   |   | **(b** | **)** |   | **46** |   |   | **(b** | **)** |   | **(b** | **)** |
|                                                          | 2005     |   |                            | 56     |                          |   | (b | ) |   | 21 |   |   | (b | ) |   | (b | ) |   | 97 |   |   | (b | ) |   | 31 |   |   | (b | ) |   | (b | ) |
| **Total                Operating**                            | **2006** |   | **$**                           | **49** |                          | **$**  | **(b** | **)** | **$** | **221** |   | **$** | **1** |   | **$** | **(b** | **)** | **$** | **121** |   | **$** | **(b** | **)** | **$** | **435** |   | **$** | **5** |   | **$** | **(b** | **)** |
| **Revenues**                                                  | 2005     |   |                            | 56     |                          |   | 8 |   |   | 216 |   |   | 6 |   |   | (b | ) |   | 97 |   |   | 17 |   |   | 405 |   |   | 21 |   |   | (b | ) |

----

----

|                                              |   |     |   | **Three                  Months** | **Six                  Months** |
|---------------------------------------------------|--------|----------|--------|-----------------------------------|---------------------------------|
| **Agreement**                                     |   |     |   |                              | **UE**                          |   |   | **CIPS** |   |   | **Genco** |   **CILCORP****(a****)** |   | **IP** |   |   | **UE** |   |   | **CIPS** |   |   | **Genco** |   **CILCORP****(a****)** |   | **IP** |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Fuel                  and Purchased Power:**    |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| JDA                                               |   | **2006** |   | **$**                             | **27**                          |   | **$** | **(b** | **)** | **$** | **49** |   | **$** | **(b** | **)** | **$** | **(b** | **)** | **$** | **46** |   | **$** | **(b** | **)** | **$** | **121** |   | **$** | **(b** | **)** | **$** | **(b** | **)** |
|                                              |   | 2005     |   |                              | 21                              |   |   | (b | ) |   | 56 |   |   | (b | ) |   | (b | ) |   | 31 |   |   | (b | ) |   | 97 |   |   | (b | ) |   | (b | ) |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Power                  supply agreement           |   | **2006** |   |                              | **(b**                          | **)** |   | **111** |   |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **219** |   |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |
| with                  Marketing Company           |   | 2005     |   |                              | 2                               |   |   | 94 |   |   | (c | ) |   | 4 |   |   | (b | ) |   | 4 |   |   | 170 |   |   | 2 |   |   | 7 |   |   | (b | ) |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Power                  supply agreement with EEI  |   | 2005     |   |                              | 16                              |   |   | 8 |   |   | (b | ) |   | (b | ) |   | 13 |   |   | 30 |   |   | 17 |   |   | (b | ) |   | (b | ) |   | 27 |   |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Executory                  tolling agreement with |   | **2006** |   |                              | **(b**                          | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **7** |   |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **20** |   |   | **(b** | **)** |
| Medina                  Valley                    |   | 2005     |   |                              | (b                              | ) |   | (b | ) |   | (b | ) |   | 8 |   |   | (b | ) |   | (b | ) |   | (b | ) |   | (b | ) |   | 18 |   |   | (b | ) |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| UE                  and Genco gas                 |   | **2006** |   |                              | **(b**                          | **)** |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |   | **(b** | **)** |
| transportation                  agreement         |   | 2005     |   |                              | (b                              | ) |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |   | (b | ) |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  Fuel and**               |   | **2006** |   | **$**                             | **27**                          |   | **$** | **111** |   | **$** | **49** |   | **$** | **7** |   | **$** | **(b** | **)** | **$** | **46** |   | **$** | **219** |   | **$** | **121** |   | **$** | **20** |   | **$** | **(b** | **)** |
| **Purchased                  Power**              |   | 2005     |   |                              | 39                              |   |   | 102 |   |   | 56 |   |   | 12 |   |   | 13 |   |   | 65 |   |   | 187 |   |   | 99 |   |   | 25 |   |   | 27 |   |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Operating Expenses:**    |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ameren                  Services support          |   | **2006** |   | **$**                             | **36**                          |   | **$** | **13** |   | **$** | **6** |   | **$** | **13** |   | **$** | **19** |   | **$** | **69** |   | **$** | **24** |   | **$** | **11** |   | **$** | **25** |   | **$** | **36** |   |
| services                  agreement               |   | 2005     |   |                              | 40                              |   |   | 11 |   |   | 5 |   |   | 9 |   |   | 22 |   |   | 81 |   |   | 22 |   |   | 10 |   |   | 21 |   |   | 22 |   |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ameren                  Energy support            |   | **2006** |   |                              | **2**                           |   |   | **(b** | **)** |   | **(c** | **)** |   | **(b** | **)** |   | **(b** | **)** |   | **4** |   |   | **(b** | **)** |   | **1** |   |   | **(b** | **)** |   | **(b** | **)** |
| services                  agreement               |   | 2005     |   |                              | 1                               |   |   | (b | ) |   | (c | ) |   | (b | ) |   | (b | ) |   | 2 |   |   | (b | ) |   | 1 |   |   | (b | ) |   | (b | ) |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| AFS                  support services             |   | **2006** |   |                              | **1**                           |   |   | **1** |   |   | **(c** | **)** |   | **1** |   |   | **(c** | **)** |   | **2** |   |   | **1** |   |   | **1** |   |   | **1** |   |   | **1** |   |
| agreement                                         |   | 2005     |   |                              | 1                               |   |   | 1 |   |   | (c | ) |   | (c | ) |   | 1 |   |   | 2 |   |   | 1 |   |   | 1 |   |   | 1 |   |   | 1 |   |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  Other**                  |   | **2006** |   | **$**                             | **39**                          |   | **$** | **14** |   | **$** | **6** |   | **$** | **14** |   | **$** | **19** |   | **$** | **75** |   | **$** | **25** |   | **$** | **13** |   | **$** | **26** |   | **$** | **37** |   |
| **Operating                  Expenses**           |   | 2005     |   |                              | 42                              |   |   | 12 |   |   | 5 |   |   | 9 |   |   | 23 |   |   | 85 |   |   | 23 |   |   | 12 |   |   | 22 |   |   | 23 |   |
|                                              |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  Income (Expense):**   |   |     |   |                              |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money                  pool borrowings            |   | **2006** |   | **$**                             | **(c**                          | **)** | **$** | **(1** | **)** | **$** | **3** |   | **$** | **1** |   | **$** | **(c** | **)** | **$** | **(c** | **)** | **$** | **(1** | **)** | **$** | **5** |   | **$** | **3** |   | **$** | **1** |   |
| (advances)                                        |   | 2005     |   |                              | 2                               |   |   | (c | ) |   | 1 |   |   | 1 |   |   | (1 | ) |   | 2 |   |   | (c | ) |   | 3 |   |   | 2 |   |   | (2 | ) |

| (a)   | Amounts                represent CILCORP and CILCO                activity. |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | Not                applicable. |
|-----------------|--------------------------------|

| (c)   | Amount                less than $1 million. |
|-----------------|---------------------------------------------|

**NOTE      8 - **
**COMMITMENTS      AND CONTINGENCIES**

----

**Callaway      Nuclear Plant **

----

| **Type                and Source of Coverage** | **Maximum                Coverages** |  **Maximum                Assessments for Single Incidents**                                                                                                   |   |
|------------------------------------------------|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Public                liability:               |                                 |                                                                                                                                                                |   |   |
| American                Nuclear Insurers       | $                                    |                                         300 |   | $ |                              - |   |
| Pool                participation              |                                 |                                    10,461                            |   |   |                                         101(a) |   |
|                                                | $                               |                 10,761(b)                                                           |   | $ |                                         101 |   |
| Nuclear                worker liability:       |                                 |                                                                                                                                                                |   |   |   |   |
| American                Nuclear Insurers       | $                                    |                                        300(c)    |   | $ |                                            4 |   |
| Property                damage:                |                                 |                                                                                                                                                                |   |   |   |   |
| Nuclear                Electric Insurance Ltd. | $                                    |                      2,750(d)                              |   | $ |                                           21 |   |
| Replacement                power:              |                                 |                                                                                                                                                                |   |   |   |   |
| Nuclear                Electric Insurance Ltd. | $                                    |                                        490(e)    |   | $ |                                             7 |   |

| (a)   | Retrospective                premium under the Price-Anderson liability provisions of the Atomic                Energy                Act of 1954, as amended. This is                subject to retrospective assessment with respect to a covered loss                in                excess of $300 million from an incident at any licensed U.S. commercial                reactor, payable at $15 million per year. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Limit                of liability for each incident under                Price-Anderson. |
|-----------------|------------------------------------------------------------------------------------------|

| (c)   | Industry                limit for potential liability from workers claiming exposure to the                hazards of nuclear radiation. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Includes                premature decommissioning costs. |
|-----------------|----------------------------------------------------------|

| (e)   | Weekly                indemnity of $4.5 million for 52 weeks, which commences after the                first                eight weeks of an outage, plus $3.6 million per week for 71.1 weeks                thereafter. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other      Obligations**

----

|          | **2006** |    | **2007** |   | **2008** |   | **2009** |   | **2010** |   | **Thereafter****(a)** |   |
|---------------|----------|---------|----------|--------|----------|--------|----------|--------|----------|--------|-----------------------|--------|
| Ameren(b)     | **$**    | **609** |     | $      | 498      |   | $        | 507    |     | $      | 404                   |   | $ | 238 |   | $ | 77 |   |
| UE            |     | **344** |     |   | 289      |   |     | 251    |     |   | 213                   |   |   | 159 |   |   | 77 |   |
| Genco         |     | **129** |     |   | 100      |   |     | 154    |     |   | 136                   |   |   | 42 |   |   | - |   |
| CILCORP/CILCO |     | **61**  |     |   | 36       |   |     | 35     |     |   | 27                    |   |   | 18 |   |   | - |   |
| (a)                     | Commitments                for coal are until 2011. |
|--------------------------------------------------|-----------------------------------------------------|
| (b)                    | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. |
|-------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

----

|          | **2006** |    | **2007** |   | **2008** |   | **2009** |   | **2010** |   | **Thereafter****(a)** |   |
|---------------|----------|---------|----------|--------|----------|--------|----------|--------|----------|--------|-----------------------|--------|
| Ameren(b)     | **$**    | **373** |     | $      | 580      |   | $        | 407    |     | $      | 237                   |   | $ | 148 |   | $ | 249 |   |
| UE            |     | **57**  |     |   | 65       |   |     | 60     |     |   | 39                    |   |   | 26 |   |   | 74 |   |
| CIPS          |     | **62**  |     |   | 119      |   |     | 87     |     |   | 58                    |   |   | 40 |   |   | 105 |   |
| Genco         |     | **11**  |     |   | 24       |   |     | 20     |     |   | 8                     |   |   | 8 |   |   | 10 |   |
| CILCORP/CILCO |     | **89**  |     |   | 147      |   |     | 107    |     |   | 60                    |   |   | 32 |   |   | 33 |   |
| IP            |     | **141** |     |   | 213      |   |     | 131    |     |   | 71                    |   |   | 41 |   |   | 25 |   |
| (a)                     | Commitments                for natural gas are until 2016. |
|-------------------------------------------------------|------------------------------------------------------------|
| (b)                    | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. |
|-------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|

----

**Environmental      Matters **

***Clean      Air Act***

----

|   | **2006**                                                                                                          | **2007                - 2010**                                                                                                                                                                                                                           | **2011                - 2016**                                                                                                                                                                            | **Total**                                                                                                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ameren | **                               $80** |                                       $1,225   -  $1,615                                                                    |                                     $1,350   -   $1,750                           |                              $2,655   -  $3,445                                   |
| UE     | **                             60**              |                                        365   -       505                                      |                                  750   -     1,040                                          |                            1,175   -    1,605                                          |
| Genco  | **                             10**              |                                        555   -       720                                      |                                  305   -                       320      |                870                  -                   1,050 |
| CILCO  | **                               5**   |                                        260   -       330                                      |                                  145                  -        200 |                               410   -       535     |
| EEI    | **                               5**   |                                          55   -                        75 |                                  190                  -        235 |                               250   -       315     |

***Emission      Credits***

----

----

|   | **SO****2**** ****(a)** |      | **NO****x**** ****(b)** |   | **Book                Value** |   |
|--------|------------------------------|-----------|------------------------------|--------|-------------------------------|--------|
| UE     |                         | 1,850,000 |                         |   | 387                           |   | $ | 63 |   |
| Genco  |                         | 690,000   |                         |   | 10,334                        |   |   | 89 |   |
| CILCO  |                         | 330,000   |                         |   | 1,206                         |   |   | 58 |   |
| EEI    |                         | 360,000   |                         |   | 1,935                         |   |   | 40 |   |

| (a)   | Vintages                are from 2006 to 2016. Each company possesses additional allowances                for                use in periods beyond 2016. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Vintages                are from 2006 to 2008. |
|-----------------|------------------------------------------------|

***New      Source Review***

***Remediation***

----

***Pumped-storage        Hydroelectric Facility Breach***

***,***

----

**Asbestos-related        Litigation **

----

|      |             |   | **Specifically                  Named as Defendant** |   |
|-----------|------------------|--------|------------------------------------------------------|--------|
|      | **Total****(a)** |   | **Ameren**                                           |   | **UE** |   | **CIPS** |   | **Genco** |   | **CILCO** |   | **IP** |   |
| Filed     |             | 310    |                                                 |   | 31 |   |   | 166 |   |   | 125 |   |   | 2 |   |   | 36 |   |   | 144 |   |
| Settled   |             | 95     |                                                 |   | - |   |   | 48 |   |   | 39 |   |   | - |   |   | 10 |   |   | 48 |   |
| Dismissed |             | 143    |                                                 |   | 22 |   |   | 92 |   |   | 46 |   |   | 2 |   |   | 6 |   |   | 63 |   |
| Pending   |             | 72     |                                                 |   | 9 |   |   | 26 |   |   | 40 |   |   | - |   |   | 20 |   |   | 33 |   |

| (a)                     | Addition                of the numbers in the individual columns does not equal the total                column                because some of the lawsuits name multiple Ameren entities as defendants. |
|-------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Retiree        Medical Plan Litigation**

**NOTE        9 - CALLAWAY NUCLEAR PLANT **

**NOTE        10 **
**-**
** **
**OTHER        COMPREHENSIVE INCOME**

----

|                                                                                                                                                                                       | **Three                  Months** |    | **Six                  Months** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------|---------------------------------|--------|
|                                                                                                                                                                                       | **2006**                          |    | **2005**                        |   | **2006** |   | **2005** |   |
| **Ameren:****(a)**                                                                                                                                                                         |                              |    |                            |   |   |   |   |   |
| Net                  income                                                                                                                                                                | **$**                             | **123** |                            | $      | 185 |   | **$** | **193** |   | $ | 306 |   |
| Unrealized                  gain (loss) on derivative hedging instruments, net of taxes (benefit)                  of                  $7,                  $4, $(2) and $10, respectively |                              | **11**  |                            |   | 1 |   |   | **(4** | **)** |   | 18 |   |
| Reclassification                  adjustments for (gains) included in net income, net of taxesof                  $2, $1, $5 and $1, respectively                                          |                              | **(3**  | **)**                           |   | (2 | ) |   | **(8** | **)** |   | (2 | ) |
| Total                  comprehensive income, net of taxes                                                                                                                                  | **$**                             | **131** |                            | $      | 184 |   | **$** | **181** |   | $ | 322 |   |
| **UE:**                                                                                                                                                                                    |                              |    |                            |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                           | **$**                             | **92**  |                            | $      | 132 |   | **$** | **143** |   | $ | 189 |   |
| Unrealized                  gain (loss) on derivative hedging instruments, net of taxes (benefit)                  of                  $1,                  $-, $(1) and $2, respectively  |                              | **1**   |                            |   | (1 | ) |   | **(1** | **)** |   | 3 |   |
| Reclassification                  adjustments for (gains) included in net income, net of taxes of                  $1,                  $-,                  $2 and $-, respectively       |                              | **(1**  | **)**                           |   | - |   |   | **(3** | **)** |   | - |   |
| Total                  comprehensive income, net of taxes                                                                                                                             | **$**                             | **92**  |                            | $      | 131 |   | **$** | **139** |   | $ | 192 |   |
|                                                                                                                                                                                       |                              |    |                            |   |   |   |   |   |   |   |   |   |

----

----

|                                                                                                                                                                                                 | **Three                  Months**  | **Six                  Months** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|---------------------------------|
|                                                                                                                                                                                                 |                                    | **2006**                        |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| **CIPS:**                                                                                                                                                                                            |                                    |                            |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                     | **$**                                   | **15**                          |   | $ | 7 |   | **$** | **14** |   | $ | 15 |   |
| Unrealized                  gain (loss) on derivative hedging instruments, net of taxes (benefit)                  of                   $-,                  $(1), $(1) and $3, respectively    |                                    | **-**                           |   |   | (2 | ) |   | **(2** | **)** |   | 4 |   |
| Reclassification                  adjustments for (gains) included in net income, net of taxes of                  $1,                  $1,                  $2 and $ -, respectively                |                                    | **(1**                          | **)** |   | (1 | ) |   | **(3** | **)** |   | (1 | ) |
| Total                  comprehensive income, net of taxes                                                                                                                                            | **$**                                   | **14**                          |   | $ | 4 |   | **$** | **9** |   | $ | 18 |   |
| **Genco:**                                                                                                                                                                                           |                                    |                            |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                     | **$**                                   | **2**                           |   | $ | 31 |   | **$** | **8** |   | $ | 62 |   |
| Unrealized                  (loss) on derivative hedging instruments, net of taxes of $-, $-,                  $- and                  $                  -, respectively                            |                                    | **-**                           |   |   | - |   |   | **-** |   |   | (1 | ) |
| Total                  comprehensive income, net of taxes                                                                                                                                            | **$**                                   | **2**                           |   | $ | 31 |   | **$** | **8** |   | $ | 61 |   |
| **CILCORP:**                                                                                                                                                                                         |                                    |                            |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                     | **$**                                   | **1**                           |   | $ | 2 |   | **$** | **9** |   | $ | 11 |   |
| Unrealized                  gain (loss) on derivative hedging instruments, net of taxes (benefit)                  of                   $(2),                  $(1), $(7) and $7, respectively  |                                    | **(3**                          | **)** |   | (1 | ) |   | **(11** | **)** |   | 12 |   |
| Reclassification                  adjustments for (gains) losses included in net income, net oftaxes                  of $-, $-, $3 and $-, respectively                                             |                                    | **-**                           |   |   | (1 | ) |   | **(4** | **)** |   | 1 |   |
| Total                  comprehensive income (loss), net of taxes                                                                                                                                     | **$**                                   | **(2**                          | **)** | $ | - |   | **$** | **(6** | **)** | $ | 24 |   |
| **CILCO:**                                                                                                                                                                                           |                                    |                            |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                     | **$**                                   | **8**                           |   | $ | 10 |   | **$** | **25** |   | $ | 26 |   |
| Unrealized                  gain (loss) on derivative hedging instruments, net of taxes                  (benefit)of                   $(2),                  $(1), $(7), and $7, respectively  |                                    | **(3**                          | **)** |   | (1 | ) |   | **(11** | **)** |   | 11 |   |
| Reclassification                  adjustments for (gains) included in net income, net of taxes                  of$-,                  $-,                  $3 and $-, respectively                  |                                    | **-**                           |   |   | (1 | ) |   | **(4** | **)** |   | - |   |
| Total                  comprehensive income, net of taxes                                                                                                                                            | **$**                                   | **5**                           |   | $ | 8 |   | **$** | **10** |   | $ | 37 |   |
| **IP:**                                                                                                                                                                                              |                                    |                            |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                                                                                     | **$**                                   | **16**                          |   | $ | 15 |   | **$** | **20** |   | $ | 37 |   |
| Unrealized                  (loss) on derivative hedging instruments, net of taxes                  (benefit)of                  $-,                  $-,                  $(1) and $-, respectively |                                    | **-**                           |   |   | - |   |   | **(1** | **)** |   | - |   |
| Reclassification                  adjustments for losses included in net income, net oftaxes                  (benefit) of                  $-, $-, $(1) and $-, respectively                        |                                    | **-**                           |   |   | - |   |   | **1** |   |   | - |   |
| Total                  comprehensive income, net of taxes                                                                                                                                            | **$**                                   | **16**                          |   | $ | 15 |   | **$** | **20** |   | $ | 37 |   |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant subsidiaries and                intercompany eliminations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

**NOTE        11 **
**-        RETIREMENT BENEFITS**

----

|                                            | **Pension                  Benefits****(a)** |    |
|-------------------------------------------------|----------------------------------------------|---------|
|                                            | **Three                  Months**            |    | **Six                  Months** |   |
|                                            | **2006**                                     |    | **2005** |   | **2006** |   | **2005** |   |
| Service                  cost              | **$**                                        | **15**  |   | $ | 14 |   | **$** | **31** |   | $ | 29 |   |
| Interest                  cost             |                                         | **43**  |   |   | 41 |   |   | **86** |   |   | 83 |   |
| Expected                  return on plan assets |                                         | **(49** | **)** |   | (45 | ) |   | **(98** | **)** |   | (91 | ) |
| Amortization                  of:               |                                         |    |   |   |   |   |   |   |   |   |   |   |
| Prior                  service cost        |                                         | **3**   |   |   | 3 |   |   | **5** |   |   | 5 |   |
| Actuarial                  loss            |                                         | **10**  |   |   | 9 |   |   | **21** |   |   | 19 |   |
| Net                  periodic benefit cost      | **$**                                        | **22**  |   | $ | 22 |   | **$** | **45** |   | $ | 45 |   |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant                subsidiaries. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

----

|                                            | **Postretirement                  Benefits****(a)** |    |
|-------------------------------------------------|-----------------------------------------------------|---------|
|                                            | **Three                  Months**                   |    | **Six                  Months** |   |
|                                            | **2006**                                            |    | **2005** |   | **2006** |   | **2005** |   |
| Service                  cost              | **$**                                               | **5**   |   | $ | 5 |   | **$** | **11** |   | $ | 11 |   |
| Interest                  cost             |                                                | **15**  |   |   | 17 |   |   | **33** |   |   | 36 |   |
| Expected                  return on plan assets |                                                | **(11** | **)** |   | (11 | ) |   | **(23** | **)** |   | (23 | ) |
| Amortization                  of:               |                                                |    |   |   |   |   |   |   |   |   |   |   |
| Transition                  obligation          |                                                | **1**   |   |   | 1 |   |   | **1** |   |   | 1 |   |
| Prior                  service cost        |                                                | **(2**  | **)** |   | (1 | ) |   | **(3** | **)** |   | (2 | ) |
| Actuarial                  loss            |                                                | **7**   |   |   | 9 |   |   | **17** |   |   | 19 |   |
| Net                  periodic benefit cost      | **$**                                               | **15**  |   | $ | 20 |   | **$** | **36** |   | $ | 42 |   |

| (a)   | Includes                amounts for Ameren registrant and nonregistrant                subsidiaries. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

|    | **Pension                  Costs** |     |
|---------|------------------------------------|----------|
|    | **Three                  Months**  |     | **Six                  Months** |   |
|    |                               | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| UE      | **$**                              | **13**   |   | $ | 13 |   | **$** | **26** |   | $ | 26 |   |
| CIPS    |                               | **3**    |   |   | 3 |   |   | **6** |   |   | 6 |   |
| Genco   |                               | **1**    |   |   | 2 |   |   | **3** |   |   | 4 |   |
| CILCORP |                               | **3**    |   |   | 3 |   |   | **5** |   |   | 6 |   |
| CILCO   |                               | **4**    |   |   | 5 |   |   | **7** |   |   | 9 |   |
| IP      |                               | **2**    |   |   | 1 |   |   | **4** |   |   | 3 |   |

----

|    | **Postretirement                  Costs** |
|---------|-------------------------------------------|
|    | **Three                  Months**         |   | **Six                  Months** |   |
|    |                                      | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
| UE      | **$**                                     | **8** |   | $ | 11 |   | **$** | **19** |   | $ | 22 |   |
| CIPS    |                                      | **2** |   |   | 3 |   |   | **5** |   |   | 6 |   |
| Genco   |                                      | **1** |   |   | 1 |   |   | **2** |   |   | 2 |   |
| CILCORP |                                      | **1** |   |   | 2 |   |   | **4** |   |   | 6 |   |
| CILCO   |                                      | **2** |   |   | 3 |   |   | **7** |   |   | 9 |   |
| IP      |                                      | **3** |   |   | 3 |   |   | **7** |   |   | 6 |   |

**NOTE        12 - **
**SEGMENT        INFORMATION**
** **

----

|                                      | **Utility                    Operations** |      | **Other** |   | **Reconciling                    Items****(a)** |   | **Total** |     |
|-------------------------------------------|-------------------------------------------|-----------|-----------|--------|-------------------------------------------------|--------|-----------|----------|
| **Three                    Months 2006:** |                                      |      |      |   |                                            |   |      |     |
| Operating                    revenues     | **$**                                     | **1,982** |      | **$**  | **-**                                           |   | **$**     | **(432** | **)** | **$** | **1,550** |   |
| Net                    income             |                                      | **121**   |      |   | **2**                                           |   |      | **-**    |   |   | **123** |   |
| **Three                    Months 2005:** |                                      |      |      |   |                                            |   |      |     |   |   |   |   |
| Operating                    revenues     | $                                         | 1,956     |      | $      | -                                               |   | $         | (372     | ) | $ | 1,584 |   |
| Net                    income             |                                      | 186       |      |   | (1                                              | )      |      | -        |   |   | 185 |   |
| **Six                    Months 2006:**   |                                      |      |      |   |                                            |   |      |     |   |   |   |   |
| Operating                    revenues     | **$**                                     | **4,234** |      | **$**  | **-**                                           |   | **$**     | **(884** | **)** | **$** | **3,350** |   |
| Net                    income             |                                      | **192**   |      |   | **1**                                           |   |      | **-**    |   |   | **193** |   |

----

----

|   | **Utility                    Operations**  |   |   | **Other** |   |  **Reconciling                  Items****(a)** |   |   | **Total** |   |
|--------|-------------------------------------------------|--------|--------|-----------|--------|-----------------------------------------------------|--------|--------|-----------|--------|

| **Six                    Months 2005:** |   |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Operating                    revenues   | $      | 3,900  |   | $      | -      |   | $      | (697   | ) | $ | 3,203 |   |
| Net                    income           |   | 311    |   |   | (5     | )      |   | -      |   |   | 306 |   |

| (a)   | Elimination                  of intercompany revenues. |
|-----------------|--------------------------------------------------------|

**ITEM          2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF          OPERATIONS.**

**OVERVIEW**
* *

**Ameren          Executive Summary **

**General**

----

| ·   | UE                    operates a rate-regulated electric generation, transmission and                    distribution business, and a rate-regulated natural gas transmission                    and                    distribution business in Missouri. Before May 2, 2005, UE also                    operated                    those businesses in Illinois. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | CIPS                    operates a rate-regulated electric and natural gas transmission                    and                    distribution business in Illinois. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Genco                    operates a non-rate-regulated electric generation business in                    Illinois and                    Missouri. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | CILCO,                    a subsidiary of CILCORP (a holding company), operates a rate-regulated                    electric and natural gas transmission and distribution business                    and a                    primarily non-rate-regulated electric generation business (through                    its                    subsidiary, AERG), in Illinois. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | IP                    operates a rate-regulated electric and natural gas transmission                    and                    distribution business in Illinois. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**RESULTS          OF OPERATIONS**

**Earnings          Summary**

----

----

|                                  | **Three                    Months** |    | **Six                    Months** |   |
|---------------------------------------|-------------------------------------|---------|-----------------------------------|--------|
|                                  | **2006**                            |    | **2005**                          |   | **2006** |   | **2005** |   |
| Net                    income (loss): |                                |    |                              |   |   |   |   |   |   |   |   |   |
| UE(a)                                 | **$**                               | **90**  |                              | $      | 130 |   | **$** | **140** |   | $ | 186 |   |
| CIPS                                  |                                | **15**  |                              |   | 7 |   |   | **13** |   |   | 14 |   |
| Genco(a)                              |                                | **2**   |                              |   | 31 |   |   | **8** |   |   | 62 |   |
| CILCORP(a)                            |                                | **1**   |                              |   | 2 |   |   | **9** |   |   | 11 |   |
| IP                                    |                                | **16**  |                              |   | 15 |   |   | **19** |   |   | 36 |   |
| Other(b)                         |                                | **(1**  | **)**                             |   | - |   |   | **4** |   |   | (3 | ) |
| Ameren                    net income  | **$**                               | **123** |                              | $      | 185 |   | **$** | **193** |   | $ | 306 |   |

| (a)   | Includes                  earnings from market-based interchange power sales that provided                  the                  following contributions to net income for the three-month and six-month                  periods, respectively: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | Includes                  earnings from non-rate-regulated operations and a 40% interest                  in EEI held                  by Resources Company, corporate general and administrative expenses,                  and                  intercompany eliminations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Electric          Operations**

----

| **Three                    Months**                 | **Ameren****(a)** |   | **UE** |   | **CIPS** |   | **Genco** |   | **CILCORP** |   | **CILCO** |   | **IP** |   |
|-----------------------------------------------------|-------------------|--------|--------|--------|----------|--------|-----------|--------|-------------|--------|-----------|--------|--------|--------|
| Electric                    revenue change:         |              |   |   |   |     |   |      |   |        |   |      |   |   |   |
| Effect                    of weather (estimate)     | $                 | (16    | )      | $      | (8       | )      | $         | (2     | )           | $      | -         |   | $      | (2     | ) | $ | (2 | ) | $ | (4 | ) |
| Growth                    and other (estimate)      |              | (23    | )      |   | (5       | )      |      | 19     |        |   | (2        | )      |   | 2      |   |   | 3 |   |   | 7 |   |
| Interchange                    revenues             |              | 10     |   |   | (26      | )      |      | (7     | )           |   | (26       | )      |   | (2     | ) |   | (2 | ) |   | - |   |
| Total                                               | $                 | (29    | )      | $      | (39      | )      | $         | 10     |        | $      | (28       | )      | $      | (2     | ) | $ | (1 | ) | $ | 3 |   |
| Fuel                    and purchased power change: |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Fuel:                                               |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Generation                    and other             | $                 | 15     |   | $      | 6        |   | $         | -      |        | $      | 13        |   | $      | -      |   | $ | 2 |   | $ | - |   |
| Price                                               |              | (21    | )      |   | (14      | )      |      | -      |        |   | (4        | )      |   | (3     | ) |   | (3 | ) |   | - |   |
| Purchased                    power             |              | (33    | )      |   | (2       | )      |      | (8     | )           |   | (21       | )      |   | 7      |   |   | 7 |   |   | (6 | ) |
| Total                                               | $                 | (39    | )      | $      | (10      | )      | $         | (8     | )           | $      | (12       | )      | $      | 4      |   | $ | 6 |   | $ | (6 | ) |
| Net                    change in electric margins   | $                 | (68    | )      | $      | (49      | )      | $         | 2      |        | $      | (40       | )      | $      | 2      |   | $ | 5 |   | $ | (3 | ) |
| **Six                    Months**                   |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Electric                    revenue change:         |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Effect                    of weather (estimate)     | $                 | (30    | )      | $      | (14      | )      | $         | (7     | )           | $      | -         |   | $      | (3     | ) | $ | (3 | ) | $ | (6 | ) |
| Growth                    and other (estimate)      |              | (6     | )      |   | (6       | )      |      | 64     |        |   | 13        |   |   | 7      |   |   | 8 |   |   | 16 |   |
| Interchange                    revenues             |              | 96     |   |   | 15       |   |      | (15    | )           |   | (19       | )      |   | (7     | ) |   | (7 | ) |   | - |   |
| Total                                               | $                 | 60     |   | $      | (5       | )      | $         | 42     |        | $      | (6        | )      | $      | (3     | ) | $ | (2 | ) | $ | 10 |   |
| Fuel                    and purchased power change: |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Fuel:                                               |              |   |   |   |     |   |      |   |        |   |      |   |   |   |   |   |   |   |   |   |   |
| Generation                    and other             | $                 | -      |   | $      | 3        |   | $         | -      |        | $      | 4         |   | $      | -      |   | $ | 1 |   | $ | - |   |
| Price                                               |              | (47    | )      |   | (30      | )      |      | -      |        |   | (14       | )      |   | (3     | ) |   | (3 | ) |   | - |   |
| Purchased                    power             |              | (108   | )      |   | (31      | )      |      | (39    | )           |   | (68       | )      |   | 14     |   |   | 14 |   |   | (26 | ) |
| Total                                               | $                 | (155   | )      | $      | (58      | )      | $         | (39    | )           | $      | (78       | )      | $      | 11     |   | $ | 12 |   | $ | (26 | ) |
| Net                    change in electric margins   | $                 | (95    | )      | $      | (63      | )      | $         | 3      |        | $      | (84       | )      | $      | 8      |   | $ | 10 |   | $ | (16 | ) |

| (a)   | Includes                  amounts for Ameren registrant and nonregistrant subsidiaries and                  intercompany eliminations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

----

*Ameren*

| ·   | unfavorable                    weather conditions as evidenced by an 8% decline in cooling degree-days                    for both the three months and six months ended June 30, 2006                    and an 11%                    decrease in heating degree-days for the six months ended June                    30, 2006,                    compared with the same periods in 2005. In addition, spring storms                    caused                    an unscheduled plant outage in the first quarter of                    2006; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | incremental                    fees of $6 million levied by FERC in the first quarter of 2006,                    upon                    completion of its cost study for generation benefits provided                    to UE’s                    Osage hydroelectric plant; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                    14% increase in both the second quarter and first half of 2006                    in coal and                    transportation prices resulting from increased global demand                    for coal; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | MISO                    Day Two Energy Market costs, which were comparable in the second                    quarter                    and $21 million higher for the six months ended June 30, 2006,                    compared                    with the same periods in 2005; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                    unavailability of UE’s Taum Sauk hydroelectric plant totaling an estimated                    $4 million and $10 million in the second quarter and first half                    of                    2006; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | an                    unscheduled outage at UE’s Callaway nuclear plant, which reduced electric                    margins by an estimated $20 million, and planned and unplanned                    outages at                    certain of UE’s and Genco’s coal-fired plants, primarily in the second                    quarter of 2006; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | lower                    wholesale margins of approximately $6 million and $12 million                    in the                    second quarter and first half of 2006 at Marketing Company as                    a result of                    the expiration of several large contracts in 2005;                    and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | reduced                    transmission revenues due primarily to a decrease in Marketing                    Company’s                    non-service territory load for UE, CIPS, CILCORP, CILCO and                    IP. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | an                    increase in margins on interchange sales of $13 million or 17%,                    and $62                    million or 42%, over the prior three and six month periods primarily                    because of the increased sale of power from EEI resulting from                    the                    expiration of its affiliate cost-based sales contract on December                    31,                    2005; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | sales                    to Noranda, which added approximately $11 million and $17 million                    in                    electric margins at UE for the second quarter and first six months                    of                    2006, respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*UE*

| ·   | unfavorable                    weather conditions as evidenced by a 10% decline in cooling degree-days                    for both the second quarter and the first half of the year and                    a 10%                    decrease in heating degree-days for the six months ended June                    30, 2006                    compared with the same period in 2005; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                    transfer of UE’s Illinois service territory on May 2, 2005 to CIPS, which                    resulted in lost margins compared to the prior periods, totaling                    $6                    million for the second quarter and $24 million for the first                    half of                    2006; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | lower                    margins on interchange sales as a result of power plant unavailability.                    However, margins on interchange sales benefited from the January                    2006                    amendment of the JDA. The MoPSC-required and FERC-approved change                    in the                    JDA methodology to base the allocation of third-party short-term                    power                    sales of excess generation on generation output instead of load                    requirements, effective January 10, 2006, resulted in $5 million                    and $14                    million in incremental margins on interchange sales for UE for                    the three                    months and six months ended June 30, 2006,                    respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | an                    11% and 14% increase in coal and related transportation prices                    for the                    second quarter and first six months of 2006, compared with the                    same                    periods in 2005; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | incremental                    fees of $6 million levied by FERC in the first quarter of 2006                    for                    generation benefits provided to UE’s Osage hydroelectric                    plant; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                    unavailability of UE’s Taum Sauk hydroelectric                    plant; |
|--------------------|-------------------------------------------------------------------------------------------------------|
| ·   | unscheduled                    outages at UE’s Callaway nuclear plant and certain of its coal-fired                    plants primarily in the second quarter of 2006 compared with                    the same                    period in 2005; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | MISO                    Day Two Energy Market costs, which were comparable for the three                    months                    ended June 30, 2006, and $14 million higher for the six months                    ended June                    30, 2006, compared with the same periods in 2005;                    and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                    expiration of a cost-based power supply contract with EEI on                    December 31,                    2005. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

*CIPS*

----

| ·   | the                    transfer to CIPS of UE’s Illinois service territory on May 2, 2005 which                    generated an incremental margin of $4 million in the second quarter                    and                    $16 million in the first half of 2006;                    and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | customers                    switching back to CIPS from Marketing Company because tariff                    rates were                    below market rates for power. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Genco*

| ·   | lower                    wholesale margins as Genco purchased higher-cost power from affiliates                    and                    third parties to serve a greater load, primarily to supply power                    to serve                    the Illinois service territory transferred to CIPS in May 2005; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | an                    11% increase in coal and transportation prices for the three                    months and                    six months ended June 30, 2006, compared with the same periods                    in                    2005; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                    scheduled outage in the second quarter of a major coal-fired                    unit; |
|--------------------|------------------------------------------------------------------------------------------------------------|
| ·   | lower                    margins on interchange sales for the three months and six months                    ended                    June 30, 2006, compared with the same periods in 2005 primarily                    because of                    reduced power plant availability and a $5 million and $14 million                    reduction due to the amendment of the JDA between UE and Genco;                    and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | higher                    emission allowance utilization costs. |
|--------------------|-----------------------------------------------------------------|

*CILCORP            and CILCO*

| ·   | lower                    purchased power costs due to improved power plant availability; |
|--------------------|------------------------------------------------------------------------------------------|
| ·   | decreases                    in emission allowance utilization expenses of $2 million and                    $3 million                    for the three and six month periods, respectively;                    and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | increases                    in margins on interchange sales of $1 million and $5 million                    in the three                    and six month periods, respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*IP*

| ·   | increased                    purchased power costs as a result of the expiration of its cost-based                    power supply agreement with EEI on December 31, 2005, and increased                    purchased power prices; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | unfavorable                    weather conditions including a 12% decrease in heating degree-days                    for the                    six months ended June 30, 2006. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Gas        Operations**

----

|      | **Three                  Months** | **Six                  Months** |
|-----------|-----------------------------------|---------------------------------|
| Ameren(a) | **$**                             | **-**                           | **$** | **(6)** |
| UE        |                              | **(3)**                         |   | **(8)** |
| CIPS      |                              | **2**                           |   | **2** |
| CILCORP   |                              | **(1)**                         |   | **(4)** |
| CILCO     |                              | **(2)**                         |   | **(5)** |
| IP        |                              | **2**                           |   | **5** |

| (a)   | Includes                  amounts for Ameren registrant and nonregistrant subsidiaries and                  intercompany eliminations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

*Ameren*

*UE*

*CIPS*

*CILCORP        and CILCO*

*IP*

**Operating        Expenses and Other Statement of Income Items**

***Other        Operations and Maintenance***

----

*Ameren*

*UE*

*CIPS*

*Genco*

*CILCORP        and CILCO*

*IP        *

***Depreciation        and Amortization***

*Ameren*

*UE*

*CIPS*

----

*CILCORP*

*IP*

*Genco        and CILCO*

***Taxes        Other Than Income Taxes***

*Ameren*

*UE*

*CIPS*

*Genco        *

*CILCORP        and CILCO*

*IP*

***Other        Income and Expenses***

*Ameren        *

*UE        *

----

*CIPS*

*CILCORP        *

*IP*

*Genco        and CILCO *

***Interest***

*Ameren*

*UE*

*Genco*

*CIPS,*
*CILCORP,        CILCO and IP*

***Income        Taxes***

*Ameren        *

*UE        *

*CIPS*

*Genco*

*CILCORP        and CILCO*

*IP*

----

**LIQUIDITY        AND CAPITAL RESOURCES**

----

|      | **Net                  Cash Provided By****Operating                  Activities** |                                                    | **Net                  Cash Provided By****(Used                  In) Investing Activities** |   | **Net                  Cash Provided By****(Used                  In) Financing Activities** |   |
|-----------|------------------------------------------------------------------------------------|---------------------------------------------------------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
|      | **2006**                                                                           |                                                    | **2005**                                                                                     |   | **Variance**                                                                                 |   | **2006** |   | **2005** |   | **Variance** |   | **2006** |   | **2005** |   | **Variance** |   |
| Ameren(a) | **$**                                                                              | **                      570**       |                                                                                         | $      |                        749                                          |   | $ | (179) |   | **$** | **(746)** |   | $ | (531) |   | $ | (215) |   | **$** | **131** |   | $ | (260) |   | $ | 391 |   |
| UE        |                                                                               | **                      227**       |                                                                                         |   |                        353                                               |   |   | (126) |   |   | **(511)** |   |   | (492) |   |   |                    (19) |   |   | **265** |   |   |                    92 |   |   | 173 |   |
| CIPS      |                                                                               | **                        79** |                                                                                         |   |                          96                                    |   |   |                    (17) |   |   | **                   (23)** |   |   |                      - |   |   |                    (23) |   |   | **                   (55)** |   |   |                    (97) |   |   |                    42 |   |
| Genco     |                                                                               | **                        55** |                                                                                         |   |       132                                                      |   |   |                    (77) |   |   | **                   (56)** |   |   |  102 |   |   | (158) |   |   | **                     2** |   |   | (235) |   |   | 237 |   |
| CILCORP   |                                                                               | **     106**                   |                                                                                         |   |                          55                                    |   |   |                    51 |   |   | **                     -** |   |   |                    (64) |   |   |                    64 |   |   | **                   (86)** |   |   |                      5 |   |   |                    (91) |   |
| CILCO     |                                                                               | **                      113**       |                                                                                         |   |                          77                                    |   |   |                    36 |   |   | **                   (42)** |   |   |                    (67) |   |   |                    25 |   |   | **                   (51)** |   |   |                    (11) |   |   |                    (40) |   |
| IP        |                                                                               | **                        86** |                                                                                         |   |                        149                                          |   |   |                    (63) |   |   | **                   (83)** |   |   |                      8 |   |   |                    (91) |   |   | **                     (2)** |   |   | (157) |   |   | 155 |   |
| (a)**  ** | Includes                  amounts for Ameren registrant and nonregistrant subsidiaries and                  intercompany eliminations. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------|

**Cash        Flows from Operating Activities **

----

**Cash        Flows from Investing Activities**

----

**Cash        Flows from Financing Activities**

----

***Short-term        Borrowings and Liquidity***

----

| **Credit                  Facility**                    | **Expiration** |                          | **Amount                  Committed** |   | **Amount                  Available** |   |
|---------------------------------------------------------|----------------|-------------------------------|---------------------------------------|--------|---------------------------------------|--------|
| **Ameren:**                                             |           |                          |                                  |   |                                  |   |   |   |   |
| Multiyear                  revolving(a)(b)              |           | July                  2010    |                                  | $      | 1,150                                 |   | $ | 756 |   |
| Multiyear                  revolving(c)                 |           | July                  2006    |                                  |   |                     350     |   |   | 350 |   |
| **CIPS,                  CILCORP, CILCO, IP and AERG:** |           |                          |                                  |   |                                  |   |   |   |   |
| Multiyear                  revolving(d)            |           | January                  2010 |                                  |   |                     500     |   |   | 500 |   |

| (a)   | Ameren                  Companies may access this credit facility through intercompany                  borrowing                  arrangements. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | UE                  and Genco are also direct borrowers under this facility. CIPS,                  CILCO and                  IP were also direct borrowers under this agreement until July 13,                  2006.                  See Note 3 - Short-term Borrowings and Liquidity to our financial                  statements under Part I, Item 1, of this report for discussion                  of the                  amendment of this facility. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | This                  credit facility was terminated on July 14,                  2006. |
|-----------------|-----------------------------------------------------------------------------------------|

| (d)   | This                  credit facility was entered into on July 14, 2006. The maximum                  amount                  available to each borrower, including for issuance of letters of                  credit,                  is limited as follows: CIPS - $135 million, CILCORP - $50 million,                  CILCO -                  $150 million, IP - $150 million and AERG - $200 million. The ability                  of                  CIPS, CILCO, and IP to borrow under this facility is subject to                  the                  receipt of necessary regulatory approvals. See Note 3 - Short-term                  Borrowings and Liquidity to our financial statements under Part                  I, Item 1,                  of this report for discussion of the new credit                  facility. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Long-term        Debt and Equity***

----

|                                                         |                                                                     |    | **Six                  Months** |
|--------------------------------------------------------------|--------------------------------------------------------------------------|---------|---------------------------------|
|                                                         | **Month                  Issued, Redeemed, Repurchased or Matured** |    |  **2006**                  |   | **2005** |
| **Issuances**                                                |                                                                     |    |                            |   |   |   |   |   |
| *Long-term                  debt*                            |                                                                     |    |                            |   |   |   |   |   |
| **UE:****(a)**                                               |                                                                     |    |                            |   |   |   |   |   |
| 5.00%                  Senior secured notes due 2020         |                                                                     | January |                            | **$** | **                      -** |   | $ | 85 |
| **CIPS:**                                                    |                                                                     |    |                            |   |   |   |   |   |
| 6.70%                  Senior secured notes due 2036         |                                                                     | June    |                            |   | **                    61** |   |   |                     - |
| **CILCO:**                                                   |                                                                     |    |                            |   |   |   |   |   |
| 6.20%                  Senior secured notes due 2016         |                                                                     | June    |                            |   | **                    54** |   |   |                     - |
| 6.70%                  Senior secured notes due 2036         |                                                                     | June    |                            |   | **                    42** |   |   |                     - |
| **IP:**                                                      |                                                                     |    |                            |   |   |   |   |   |
| 6.25%                  Senior secured notes due 2016         |                                                                     | June    |                            |   | **                    75** |   |   |                     - |
| Total                  Ameren long-term debt issuances  |                                                                     |    |                            | **$** | **232** |   | $ | 85 |

----

----

|                                                                                                                                            |                                                                      |   |   | **Six                    Months**                           |
|--------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------|
|                                                                                                                                       | **Month                  Issued, Redeemed, Repurchased or Matured**  |   |   | **2006**                                               |   |   | **2005**   |
| *Common                  stock*                                                                                                            |                                                                      |   |   |                                                        |   |   |   |
| **Ameren:**                                                                                                                                |                                                                      |   |   |                                                        |   |   |   |
| 7,402,320                  Shares at $46.61(b)                                                                                             | May                                                                       |   | **$**  | **                        -** |   | $ |                     345 |
| DRPlus                  and 401(k)(c)                                                                                                      | Various                                                                   |   |   | **                     57**                  |   |   |                       57 |
| Total                  common stock issuances                                                                                              |                                                                      |   | **$**  | **                     57**                  |   | $ |                     402 |
| Total                  Ameren long-term debt and common stock issuances                                                                    |                                                                      |   | **$**  | **                   289**                             |   | $ |                     487 |
| **Redemptions,                  Repurchases and Maturities**                                                                               |                                                                      |   |   |                                                        |   |   |   |
| *Long-term                  debt*                                                                                                          |                                                                      |   |   |                                                        |   |   |   |
| **Ameren:**                                                                                                                                |                                                                      |   |   |                                                        |   |   |   |
| Senior                  notes due 2007(d)                                                                                                  | February                                                                  |   | **$**  | **                      -**             |   | $ |                       95 |
| **CIPS:**                                                                                                                                  |                                                                      |   |   |                                                        |   |   |   |
| 7.05%                  First mortgage bonds due 2006                                                                                       | June                                                                      |   |   | **   20**                                    |   |   |                         - |
| 6.49%                  First mortgage bonds due 2005                                                                                       | June                                                                      |   |   | **                      -**             |   |   |                       20 |
| **CILCORP:**                                                                                                                               |                                                                      |   |   |                                                        |   |   |   |
| 9.375%                  Senior notes due 2029                                                                                    | March/April                                                               |   |   | **                    12**                        |   |   |     -  |
| 8.70%                  Senior notes due 2009                                                                                               | May                                                                       |   |   | **                      -**             |   |   |                        6 |
| **IP:**                                                                                                                                    |                                                                      |   |   |                                                        |   |   |   |
| 6.75%                  First mortgage bonds due 2005                                                                                       | March                                                                     |   |   | **                      -**             |   |   |                       70 |
| Notes                  payable to IP SPT                                                                                                   |                                                                      |   |   |                                                        |   |   |   |
| 5.54%                  Series due 2007                                                                                                     | Various                                                                   |   |   | **                    54**                        |   |   |                         - |
| 5.38%                  Series due 2005                                                                                                     | Various                                                                   |   |   | **                      -**             |   |   |                       46 |
| Total                  Ameren long-term debt and preferred stock redemptions, repurchases                  and                  maturities |                                                                      |   | **$**  | **                    86**                        |   | $ |                     237 |

| (a)   | Ameren’s                  and UE’s long-term debt increased $240 million as a result of the first                  quarter leasing transaction related to UE’s purchase of a 640-megawatt CT                  facility located in Audrain County, Missouri. No capital was raised                  as a                  result of UE’s assumption of the lease                  obligations. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Shares                  issued upon settlement of the purchase contracts, which were a                  component                  of the adjustable conversion-rate equity security units. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Includes                  issuances of common stock of 1.1 million shares during the six                  months                  ended June 30, 2006, under DRPlus and 401(k)                  plans. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Component                  of the adjustable conversion-rate equity security                  units. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

|         |   | **Effective****Date** |                          | **Authorized****Amount** |   | **Issued**                                                       |   | **Available** |
|--------------|--------|-----------------------|-------------------------------|--------------------------|--------|------------------------------------------------------------------|--------|---------------|
| Ameren  |   |                  | June                  2004    |                     | $      |                        2,000            |   | $             |                          459 |   | $ |                         1,541 |
| UE           |   |                  | October                  2005 |                     |   |                        1,000            |   |          |                          260 |   |   |                            740 |
| CIPS         |   |                  | May                  2001     |                     |   |                           250 |   |          |                          211 |   |   |                              39 |

**Indebtedness        Provisions and Other Covenants**

----

**Dividends**

----

|                                          | **Six                      Months** |    |
|-----------------------------------------------|-------------------------------------|---------|
|                                          | **2006**                            |    | **2005** |   |
| UE                                            | **$**                               | **84**  |   | $ | 135 |   |
| CIPS                                          |                                | **25**  |   |   | 9 |   |
| Genco                                         |                                | **71**  |   |   | 34 |   |
| CILCORP(a)                                    |                                | **50**  |   |   | 30 |   |
| IP                                            |                                | **-**   |   |   | 40 |   |
| Nonregistrants                                |                                | **30**  |   |   | 5 |   |
| Dividends                      paid by Ameren | **$**                               | **260** |   | $ | 253 |   |

| (a)   | CILCO                  paid dividends of $50 million and $20 million for the six months                  ended                  June 30, 2006 and 2005,                  respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Contractual        Obligations**

----

**Credit        Ratings**

----

|                                    | **From** | **To** |
|-----------------------------------------|----------|--------|
| **UE:**                                 |     |   |
| Secured                  debt      | A1       | A2     |
| Unsecured                  debt    | A2       | A3     |
| Commercial                  paper  | P-1      | P-2    |
| **CIPS:**                               |     |   |
| Secured                  debt      | A3       | Baa2   |
| Unsecured                  debt    | Baa1     | Baa3   |
| **CILCORP:**                            |     |   |
| Unsecured                  debt    | Baa3     | Ba1    |
| **CILCO:**                              |     |   |
| Secured                  debt      | A3       | Baa1   |
| Unsecured                  debt    | Baa1     | Baa2   |

| ·   | Weaker                  financial metrics due to higher operating costs and large capital                  expenditures for environmental compliance that are not currently                  being                  recovered from customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                  likelihood that if the operating cash flow for Ameren’s Illinois utilities                  declines, Ameren may need to rely on UE and Ameren’s unregulated                  operations for a larger share of upstreamed dividends to meet parent                  company obligations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A                  difficult political and regulatory environment in Illinois associated                  with                  the recovery of higher purchased power costs by electric utilities                  commencing January 1, 2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Moody’s                  expectation that the outcome in Illinois will involve a material                  regulatory deferral of recovery of higher power procurement                  costs. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**OUTLOOK**

| ·   | On                  July 19, 2006 and July 21, 2006, UE’s, CIPS’ and IP’s service territories                  were hit by severe storms, which included tornados, that resulted                  in the                  loss of power to approximately 700,000 customers combined. Through                  the                  dedication of a work force of 5,200, including our employees, contractors                  and utility workers from 13 states, we restored service to all                  of our                  customers within nine days. The full financial impact of these                  storms has                  not yet been determined, but UE, CIPS and IP have incurred unanticipated                  costs and the loss of electric margins as a result of these devastating                  storms. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Revenues***

| ·   | By                  the end of 2006, electric rates for Ameren’s operating subsidiaries will                  have been fixed or declining for periods ranging from 15 years                  to 25                  years. In 2006, electric rate adjustment moratoriums and power                  supply                  contracts expire in Ameren’s regulatory jurisdictions. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                  July 2006, UE, CIPS and Genco mutually consented to terminate the                  JDA on                  December 31, 2006. Upon termination of the JDA, Genco will no longer                  receive the margins on sales that were supplied with power from                  UE.                  However, Genco will still have access to its own generation and                  expects to                  be able to sell this power at higher average prices than this power                  was                  sold for in 2005 because of the expiration of its power supply                  contract                  with CIPS and the expiration of contracts to supply other wholesale                  and                  retail customers on or before December 31, 2006. Ameren’s and UE’s                  earnings will be affected by the termination of the JDA when UE’s rates                  are adjusted by the MoPSC. UE’s requested electric rate increase filed in                  July 2006 is net of the decrease in its revenue requirement resulting                  from                  increased margins expected to result from the termination of the                  JDA.                  Termination of the JDA will require acceptance by FERC.  See Note 2 -                  Rate and Regulatory Matters and Note 7 - |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | In                  January 2006, the ICC approved a framework for CIPS, CILCO and                  IP to                  procure power for use by their customers in 2007 through an auction.                  This                  approval is subject to court appeal. Power supplied by Genco and                  AERG to                  CIPS and CILCO, respectively, have been subject to below-market-priced                  contracts. Most of Genco’s other wholesale and retail electric power                  supply agreements also expire during 2006 and substantially all                  of these                  are below market prices for similar contracts in 2006. Genco currently                  expects to generate approximately 17.5 million megawatthours of                  power in                  2007. By 2007, only 5.2 million megawatthours of power covered                  by                  wholesale and retail electric power supply agreements that were                  in effect                  in 2005 will remain outstanding. These agreements have an average                  embedded                  selling price of $36 per megawatthour. All other power supply agreements                  in effect in 2005 will expire by the end of 2006 and any available                  generation in 2007 will be sold at prevailing market prices. AERG                  currently expects to generate approximately 7.0 million megawatthours                  of                  power in 2007 compared to 5.9 million megawatthours of power that                  was                  generated in 2005 at an average cost of approximately $15 per                  megawatthour. In 2005, this power was sold principally to CILCO                  at an                  average price of $32 per megawatthour. In addition, AERG sold 1                  million                  net megawatthours of power in the interchange market at an average                  price                  of $38 per megawatthour in 2005. In 2007, all of AERG’s power will be sold                  at prevailing market prices. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ameren                  expects the average residential electric rates for CIPS, CILCO                  and IP to                  increase significantly following the expiration of a rate freeze                  at the                  end of 2006. The amount of the increase will depend on outcomes                  for CIPS’,                  CILCO’s and IP’s pending electric delivery services revenue increase                  requests to the ICC and power supply costs that result from the                  proposed                  Illinois power procurement auction, among other                  things.   |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Certain                  Illinois legislators, the Illinois attorney general, the Illinois                  governor, and other parties have sought and continue to seek various                  methods, including rate freeze legislation, to block the power                  procurement                  auction and/or the recovery of related costs for power supply resulting                  from the auction through rates to customers. Any decision or action                  that                  impairs CIPS’, CILCO’s and IP’s ability to fully recover purchased power                  costs from their electric customers in a timely manner could result                  in                  material adverse consequences for these companies and for Ameren.                  CIPS,                  CILCO and IP are willing to work with stakeholders to ease the                  burden of                  higher energy prices on residential customers through a rate increase                  phase-in plan, as long as such plan allows for the full and timely                  recovery of costs and does not adversely impact credit ratings.                  In March                  2006, legislation was introduced in the Illinois House of Representatives                  that would allow the deferral of a portion of the power procurement                  costs                  and would authorize the ICC to permit a utility with fewer than                  one                  million retail customers to form special purpose finance vehicles                  to issue                  securitization bonds to recover the deferred costs, with interest.                  CIPS,                  CILCO and IP each have less than one million retail customers.                  In June                  2006, CIPS, CILCO and IP filed a rate increase phase-in and revenue                  securitization plan with the ICC that was based on this proposed                  legislation that would relate to the deferral of power supply costs                  for                  2007 and 2008. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                  Ameren Illinois utilities filed proposed new tariffs with the ICC                  in                  December 2005 that would increase annual revenues from electric                  delivery                  services, effective January 2, 2007, by $156 million (CIPS - $14                  million,                  CILCO - $33 million, IP - $109 million) per year commencing in                  2007 and an                  additional $46 million (CILCO - $10 million, IP - $36 million)                  per year                  commencing in 2008. In June 2006, the ICC staff filed rebuttal                  testimony                  recommending increases in revenues for electric delivery services                  for the                  Ameren Illinois utilities aggregating $120 million (CIPS - $1 million,                  CILCO - $30 million and IP - $89 million). In April 2006, the Illinois                  attorney general and CUB recommended net increases in revenues                  for                  electric delivery services of $71 million for the Ameren Illinois                  utilities (CIPS - $7 million decrease, CILCO - $19 million increase                  and IP                  - $59 million increase). In subsequent testimony, the Illinois                  attorney                  general accepted certain of the Ameren Illinois utilities’                  positions increasing the estimated aggregate recommended revenue                  increase to $100 million. Other parties also made recommendations in                  the case. The ICC has until November 2006 to render a decision                  in these                  rate cases. See Note 2 - Rate and Regulatory Matters to our financial                  statements under Part I, Item 1, of this                  report. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                  July 2006, UE filed requests with the MoPSC for an increase in                  electric                  rates of $361 million and in natural gas delivery rates of $11                  million.                  The MoPSC staff and other stakeholders will review UE’s rate adjustment                  requests and, after their analyses, may also make recommendations                  as to                  rate adjustments. Generally, a proceeding to change rates in Missouri                  could take up to 11 months.  See Note 2 - Rate and Regulatory Matters                  to our financial statements under Part I, Item 1, of this                  report. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                  expect continued economic growth in our service territory to benefit                  energy demand in 2006 and beyond, but higher energy prices could                  result in                  reduced demand from consumers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | UE,                  Genco and CILCO are seeking to raise the equivalent availability                  and                  capacity factors of their power plants through a process improvement                  program. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Very                  volatile power prices in the Midwest affect the amount of revenues                  UE,                  Genco and CILCO (through AERG) can generate by marketing power                  into the |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | On                  April 1, 2005, the MISO Day Two Energy Market began operating.                  The MISO                  Day Two Energy Market presents an opportunity for increased power                  sales                  from UE, Genco and CILCO power plants and improved access to power                  for UE,                  CIPS, CILCO and IP. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Fuel        and Purchased Power***

| *·  * | In                  2005, 86% of Ameren’s electric generation (UE - 80%, Genco - 96%, CILCO -                  99%) was supplied by its coal-fired power plants. About 88% of                  the coal                  used by these plants (UE - 96%, Genco - 67%, CILCO - 77%) was                  delivered by railroads from the Powder River Basin in Wyoming.                  In May                  2005, the joint Burlington Northern-Union Pacific rail line in                  the Powder                  River Basin suffered two derailments due to unstable track conditions.                  As                  a result, the Federal Rail Administration placed slow orders, or                  speed                  restrictions, on sections of the line until the track could be                  made safe.                  Because of the railroad delivery problems, UE, Genco and CILCO                  received                  only about 90% to 95% of scheduled deliveries of Powder River Basin                  coal                  in 2005. The impact of the coal delivery issues on inventory levels                  was                  exacerbated by warm summer weather and high power prices, which                  caused UE,                  Genco and CILCO plants to run more and to burn record amounts of                  coal.                  Maintenance on the rail lines into the Powder River Basin is continuing                  in                  2006, but is expected to have less of an impact on deliveries than                  in                  2005. Further disruptions in coal deliveries could cause UE, Genco                  and                  CILCO to pursue a strategy that could include reducing sales of                  power                  during low-margin periods, utilizing higher-cost fuels to generate                  required electricity and purchasing                  power. |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ameren’s                  coal and related transportation costs are expected to increase                  10% to 15%                  in 2006 and an additional 15% to 20% in 2007.                  In                  addition, power generation from higher-cost gas-fired plants is                  expected                  to increase in the next few years. See Item 3 - Quantitative and                  Qualitative Disclosures about Market Risk for information about                  the                  percentage of fuel and transportation requirements that are price-hedged                  for 2006 through 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                  MISO Day Two Energy Market resulted in significantly higher MISO-related                  costs in 2005. In part, these higher charges were due to volatile                  summer                  weather patterns and related loads. In addition, we attribute some                  of                  these higher charges to the relative infancy of the MISO Day Two                  Energy                  Market, suboptimal dispatching of power plants, and price volatility.                  We                  will continue to optimize our operations and work closely with                  MISO to                  ensure that the MISO Day Two Energy Market operates more efficiently                  and                  effectively in the future. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                  July 2005, a new law was enacted that enables the MoPSC to put in                  place fuel, purchased power, and environmental cost recovery mechanisms                  for Missouri’s utilities. The law also includes rate case filing                  requirements, a 2.5% annual rate increase cap for the environmental                  cost                  recovery mechanism, and prudency reviews, among other things. Detailed                  rules for the fuel and purchased power cost recovery mechanism                  are                  expected to be effective in the second half of 2006. We are unable                  to                  predict when rules implementing the environmental cost recovery                  mechanism                  will be formally proposed and adopted. As part of its electric                  rate case                  filing in July 2006, UE requested the use of the fuel, purchased                  power,                  and environmental cost recovery                  mechanisms. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Other        Costs***

| ·   | In                  December 2005, there was a breach of the upper reservoir at UE’s Taum Sauk                  pumped-storage hydroelectric facility. This resulted in significant                  flooding in the local area, which damaged a state park. The incident                  is                  being investigated by FERC and state authorities. The facility                  will remain                  out of service until reviews by FERC and state authorities are                  concluded,                  further analyses are completed, and input is received from key                  stakeholders as to how and whether to rebuild the facility. Should                  the                  decision be made to rebuild the Taum Sauk plant, UE would expect                  it to be                  out of service through most, if not all, of 2008. UE                  has accepted responsibility for the effects of the incident. At                  this time,                  UE believes that substantially all of the damage and liabilities                  caused by                  the breach will be covered by insurance. UE expects the total cost                  for                  damage and liabilities resulting from the Taum Sauk incident to                  range from                  $63 million to $83 million. As of June 30, 2006, UE had paid $27                  million                  and accrued a $36 million liability, while expensing $11 million,                  and                  recording a $52 million receivable due from insurance companies.                  No                  amounts have been recognized in the financial statements relating                  to                  estimated costs to repair or rebuild the facility. Under UE’s insurance                  policies, all claims by or against UE are subject to                  review by its insurance carriers. As a result of this breach, UE                  may be                  subject to litigation by private parties or by state or federal                  authorities. Until the reviews conducted by state and                  federal authorities have concluded, the insurance review is completed,                  a                  decision whether the plant will be rebuilt is made, and future                  regulatory                  treatment for the plant is determined, among                  other                  things, we are unable to determine the impact the breach may have                  on                  Ameren’s and UE’s results of operations, financial position, or liquidity beyond those amounts                  already                  recognized. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | UE’s                  Callaway nuclear plant’s next scheduled refueling and maintenance outage                  is in 2007. During an outage, which occurs every 18 months, maintenance                  and purchased power costs increase, and the amount of |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Over                  the next few years, we expect rising employee benefit costs as                  well as                  higher insurance and security costs associated with additional                  measures we                  have taken, or may need to take, at UE’s Callaway nuclear plant and our                  other facilities. Insurance premiums may also increase as a result                  of the                  Taum Sauk incident. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We                  are currently undertaking cost reduction and control initiatives                  associated with the strategic sourcing of purchases and streamlining                  of                  all aspects of our business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Capital        Expenditures***

| ·   | The                  EPA has issued more stringent emission limits on all coal-fired                  power                  plants. Between 2006 and 2016, Ameren expects that certain Ameren                  Companies will be required to invest between $2.7 billion and $3.4                  billion                  to retrofit their power plants with pollution control equipment.                  More                  stringent state regulations could increase these costs. These investments                  will also result in higher ongoing operating expenses. Approximately                  50%                  of this investment will be in Ameren’s regulated UE operations, and                  therefore it is expected to be recoverable from ratepayers. The                  recoverability of amounts expended in non-rate-regulated operations                  will                  depend on whether market prices for power adjust as a result of                  this                  increased investment. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In                  March 2006, UE completed the purchase of three gas-fired CT facilities                  with a capacity of nearly 1,500 megawatts in transactions valued                  at $292                  million. The purchase of these facilities is designed to meet UE’s                  increased generating capacity needs and to provide additional flexibility                  in determining future baseload generating capacity additions. UE                  continues                  to evaluate its longer-term needs for new baseload and peaking                  electric                  generation capacity. At this time, UE does not expect to require                  new                  baseload generation capacity until at least 2015. However, due                  to the                  significant time required to plan, acquire permits for and build                  a                  baseload power plant, UE is actively studying future plant alternatives,                  including those utilizing coal or nuclear                  power. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Affiliate        Transactions***

| ·   | Due                  to a MoPSC order issued in conjunction with the transfer of UE’s Illinois                  service territory to CIPS, UE, CIPS, and Genco amended the JDA                  effective                  in January 2006. If such an amendment had been in effect in 2005,                  we                  believe it would have resulted in a transfer of electric margins                  from                  Genco to UE of $35 million to $45 million based on certain assumptions                  and                  historical results. On July 7, 2006, UE, CIPS and Genco mutually                  consented                  to waive the one-year termination notice requirement and agreed                  to                  terminate the JDA on December 31, 2006. As a result of the termination                  of                  the JDA, UE and Genco will no longer have the obligation to provide                  power                  to each other. UE will retain the power it was transferring under                  the JDA                  to Genco at incremental cost and be able to sell any excess power                  it has                  at market prices. Genco will no longer receive the margins on sales                  that                  it made, which were supplied with power from UE. Termination of                  the JDA                  will require acceptance by FERC. Ameren’s and UE’s earnings will be                  affected by the termination of the JDA when UE’s rates are adjusted by the                  MoPSC. See Risk Factors under Part II, Item 1A and Note 2 - Rate                  and                  Regulatory Matters and Note 7 - Related Party Transactions to our                  financial statements under Part I, Item 1, of this report for a                  discussion                  of the modification to the JDA ordered by the MoPSC and the effects                  of                  terminating the JDA. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                  December 31, 2005, a power supply agreement with EEI for UE, CIPS                  (which                  resold its entitlement to Marketing Company) and IP expired. Power                  supplied under the agreement by EEI to UE, Marketing Company and                  IP was                  priced at EEI’s cost-based rates. Power previously supplied under this                  agreement to UE, Marketing Company and IP is being sold at market                  prices                  in 2006, which are above EEI’s cost-based rates and will continue to be                  sold at market prices in 2007. However, in 2006, UE, Genco (which                  supplies                  Marketing Company) and IP are replacing power previously received                  from EEI                  either through the use of their own higher-cost generation or higher-cost                  power purchases. In 2005, EEI generated 7.9 million megawatthours                  of                  power. UE, CIPS (which resold the power to Marketing Company) and                  IP                  purchased 3.0 million, 2.0 million and 1.2 million megawatthours,                  respectively, from EEI at an average price of $20 per megawatthour.                  The                  remaining generation was sold to EEI’s minority owner. The expiration of                  this agreement and the resulting decrease in                  UE’s margins and increase in its revenue requirement were reflected                  in                  UE’s July 2006 request to the MoPSC to increase electric                  rates. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Recent        Acquisitions***

| ·   | Ameren,                  CILCORP, CILCO and IP expect to focus on realizing integration                  synergies                  associated with these acquisitions, including utilizing more economical                  fuels at CILCORP and CILCO and reducing administrative and operating                  expenses at IP. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Other***

| ·   | In                  August 2005, President George W. Bush signed into law the Energy                  Policy                  Act of 2005. This legislation includes several provisions that affect                  the Ameren Companies, including the repeal of PUHCA 1935 (under |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**REGULATORY        MATTERS**

**ITEM        3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET        RISK.**

**Interest        Rate Risk**

----

|    | **Interest                  Expense** |                                   | **Net                  Income****(a)** |
|---------|---------------------------------------|----------------------------------------|----------------------------------------|
| Ameren  | $                                     | 13       |                                   | $                    | (8)      |
| UE      |                                  |  8       |                                   |   | (5)      |
| CIPS    |                                  | (b)                |                                   |   | (b)      |
| Genco   |                                  | 3                       |                                   |   | (2)      |
| CILCORP |                                  | 2                       |                                   |   | (1)      |
| CILCO   |                                  | 1                       |                                   |   | (1)      |
| IP      |                                  | 4                       |                                   |   | (2)      |

**Credit          Risk**

----

**Equity        Price Risk**

**Commodity        Price Risk **

----

|                                             | **2006** |                                               | **2007** |   | **2008**-**2010**                                   |
|--------------------------------------------------|----------|----------------------------------------------------|----------|--------|-----------------------------------------------------|
| **Ameren:**                                      |     |                                               |     |   |                                                |
| Coal                                             |     | **                      100%** |     |   |                        95% |   |   |                     58% |
| Coal                  transportation             |     | **100**                                            |     |   |                    95                          |   |   | 60 |
| Nuclear                  fuel                    |     | **100**                                            |     |   | 100                                                 |   |   | 70 |
| Natural                  gas for generation      |     | **                   66**                     |     |   |                    12                          |   |   |                    2 |
| Natural                  gas for distribution(a) |     | **                   (a)**                    |     |   |                    33                          |   |   |                    7 |
| **UE:**                                          |     |                                               |     |   |                                                |   |   |   |
| Coal                                        |     | **                      100%** |     |   |      95%                   |   |   |    54% |
| Coal                  transportation             |     | **100**                                            |     |   |                    99                          |   |   | 79 |
| Nuclear                  fuel                    |     | **100**                                            |     |   | 100                                                 |   |   | 70 |
| Natural                  gas for generation      |     | **                   43**                     |     |   |                     5                     |   |   |                    1 |
| Natural                  gas for distribution(a) |     | **                   (a)**                    |     |   |  22                                            |   |   |                    5 |
| **CIPS:**                                        |     |                                               |     |   |                                                |   |   |   |
| Natural                  gas for distribution(a) |     | **                   (a)**                    |     |   |                      40%             |   |   |                      15% |
| Purchased                  power(b)              |     | **100**                                            |     |   |                     -                     |   |   |                    - |
| **Genco:**                                       |     |                                               |     |   |                                                |   |   |   |
| Coal                                        |     | **                      100%** |     |   |                      92%             |   |   |                      69% |
| Coal                  transportation             |     | **100**                                            |     |   |  95                                            |   |   | 39 |
| Natural                  gas for generation      |     | **100**                                            |     |   |  12                                            |   |   |                    2 |
| **CILCORP/CILCO:**                               |     |                                               |     |   |                                                |   |   |   |
| Coal                                        |     | **                      100%** |     |   |                       97%       |   |   |                      56% |
| Coal                  transportation             |     | **100**                                            |     |   |  69                                            |   |   | 44 |
| Natural                  gas for distribution(a) |     | **                   (a)**                    |     |   |  37                                            |   |   |                    6 |
| Purchased                  power(b)              |     | **100**                                            |     |   |                    -                           |   |   |                    - |

----

----

|   | **2006** |   | **2007** |   | **2008**-**2010** |
|--------|----------|--------|----------|--------|-------------------|

| **IP:**                                          |   |                            |   |   |                                    |   |   |                                   |
|--------------------------------------------------|--------|---------------------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------|
| Natural                  gas for distribution(a) |   | **                   (a)** |   |   |                      30% |   |   |                      5% |
| Purchased                  power(b)              |   | **                   90**  |   |   |                    -               |   |   |  -                                |

| (a)   | Represents                  the percentage of natural gas price-hedged for the peak winter                  season of                  November through March. The year 2006 represents the period January                  2006                  through March 2006 and therefore is non-applicable for this report.                  The                  year 2007 represents November 2006 through March 2007. This continues                  each                  successive year through March 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Beginning                  in 2007, CIPS, CILCO and IP are expected to purchase all electric                  capacity                  and energy through a power procurement auction process approved                  by the                  ICC. See Note 2 - Rate and Regulatory Matters to our financial                  statements                  under Part I, Item 1, of this report for a discussion of this                  matter. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|          | **Coal**            |   | **Transportation**       |
|---------------|---------------------|--------|--------------------------|
|          | **Fuel****Expense** |   | **Net****Income****(a)** |   | **Fuel****Expense** |   | **Net****Income****(a)** |
| Ameren        | $                   | 8      |                     | $ | (5) |   | $ | 10 |   | $ | (6) |
| UE            |                | 5      |                     |   | (3) |   |   |                    3 |   |   | (2) |
| Genco         |                | 2      |                     |   | (1) |   |   |                    4 |   |   | (2) |
| CILCORP/CILCO |                | 1      |                     |   | (1) |   |   |                    2 |   |   | (1) |

| (a)   | Calculations                  are based on an effective tax rate of                  38%. |
|-----------------|-------------------------------------------------------------------------------------------|

**Fair        Value of Contracts **

----

|                                                                                                                                |   | **Ameren****(a)** |                        | **UE** |   | **CIPS** |   |  **Genco** |   | **CILCORP/****CILCO** |   | **IP** |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------------------------|--------|--------|----------|--------|-----------------|--------|-----------------------|--------|--------|--------|
| **Three                  Months**                                                                                                   |   |              |                        |   |   |     |   |            |   |                  |   |   |   |
| Fair                  value of contracts at beginning of period, net                                                                |   | $                 |  30                    |   | $      | (3)      |   | $               | 6      |                  | $      | -      |   | $ | 24 |   | $ | 2 |   |
| Contracts                  realized or otherwise settled during the period                                                          |   |              | (14)                        |   |   | (2)      |   |            | (2)    |                  |   | 1      |   |   |                    (5) |   |   | (1) |   |
| Changes                  in fair values attributable to changes in valuation technique and                  assumptions   |   |              |                    -   |   |   | -        |   |            | -      |                  |   | -      |   |   |                    - |   |   | - |   |
| Fair                  value of new contracts entered into during the period                                                         |   |              |                    -   |   |   | -        |   |            | -      |                  |   | -      |   |   |                    - |   |   | - |   |
| Other                  changes in fair value                                                                                        |   |              |  27                    |   |   | 3        |   |            | -      |                  |   | -      |   |   |                    (1) |   |   | 1 |   |
| Fair                  value of contracts outstanding at end of period, net                                                          |   | $                 |  43                    |   | $      | (2)      |   | $               | 4      |                  | $      | 1      |   | $ | 18 |   | $ | 2 |   |
| **Six                  Months**                                                                                                     |   |              |                        |   |   |     |   |            |   |                  |   |   |   |   |   |   |   |   |   |
| Fair                  value of contracts at beginning of period, net                                                                |   | $                 |  69                    |   | $      | (5)      |   | $               | 12     |                  | $      | -      |   | $ | 50 |   | $ | (2) |   |
| Contracts                  realized or otherwise settled during the period                                                          |   |              | (26)                        |   |   | (4)      |   |            | (5)    |                  |   | 1      |   |   |                    (9) |   |   | (2) |   |
| Changes                  in fair values attributable to changes in valuation technique and                  assumptions   |   |              |                    -   |   |   | -        |   |            | -      |                  |   | -      |   |   |                    - |   |   | - |   |
| Fair                  value of new contracts entered into during the period                                                         |   |              |                    1   |   |   | 1        |   |            | -      |                  |   | -      |   |   |                    - |   |   | - |   |
| Other                  changes in fair value                                                                                        |   |              |                    (1) |   |   | 6        |   |            | (3)    |                  |   | -      |   |   |  (23) |   |   | 6 |   |
| Fair                  value of contracts outstanding at end of period, net                                                          |   | $                 | 43                          |   | $      | (2)      |   | $               | 4      |                  | $      | 1      |   | $ | 18 |   | $ | 2 |   |

| (a)   | Includes                  amounts for Ameren registrant and nonregistrant subsidiaries and                  intercompany eliminations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM        4. CONTROLS AND PROCEDURES.**

| (a)   | Evaluation                  of Disclosure Controls and                  Procedures |
|-----------------|------------------------------------------------------------------------------------|

| (b)   | Change                  in Internal Controls |
|-----------------|----------------------------------------------|

**PART        II. OTHER INFORMATION**

**ITEM        1. LEGAL PROCEEDINGS.**

**ITEM          1A. RISK FACTORS.**

**The          electric and gas rates that certain Ameren Companies are allowed to charge          in          Missouri and Illinois are largely set through 2006 and are currently the          subject          of various rate case proceedings. The outcome of these rate case proceedings,          along with other actions of lawmakers and regulators that can significantly          adversely affect our prospective earnings, liquidity, or business activities,          are largely outside our control.**

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**ITEM        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS.**

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|  **Period**                          |   | **(a)                  Total Number****of                  Shares****(or                  Units)****Purchased****(a)** |                        | **(b)                  Average Price****Paid                  per Share****(or                  Unit)** |   | **(c)                  Total Number of Shares (or****Units)                  Purchased as Part of****Publicly                  Announced Plans or****Programs** |   | **(d)                  Maximum Number (or Approximate Dollar Value) of Shares (or Units) that                  May                  Yet Be Purchased Under the Plans or Programs** |   |
|-------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| April                  1 - April 30, 2006 |   |                                                                                                                   | 1,551                       |                                                                                                    | $      | 50.47                                                                                                                                                           |   |                                                                                                                                                                               | -      |   |   | - |   |
| May                  1 - May 31, 2006     |   |                                                                                                                   |                    428 |                                                                                                    |   | 49.87                                                                                                                                                           |   |                                                                                                                                                                               | -      |   |   | - |   |
| June                  1 - June 30, 2006   |   |                                                                                                                   | 2,700                       |                                                                                                    |   | 50.44                                                                                                                                                           |   |                                                                                                                                                                               | -      |   |   | - |   |
| Total                                     |   |                                                                                                                   | 4,679                       |                                                                                                    | $      | 50.40                                                                                                                                                           |   |                                                                                                                                                                               | -      |   |   | - |   |

| (a)                       | Included                  in April was 1 share of Ameren common stock purchased to satisfy                  an                  employee’s tax obligation incurred with the vesting of a performance share                  unit and share distribution under Ameren’s Long-term Incentive Plan of                  1998 upon the employee’s death.  Included in May were 428 shares of                  Ameren common stock purchased in connection with the satisfaction                  of                  employee tax obligations incurred by the release of restricted                  shares of                  Ameren common stock under the Long-term Incentive Plan of 1998.  The                  remaining shares of Ameren common stock were purchased in open-market                  transactions in satisfaction of Ameren’s obligation upon the exercise by                  employees of options issued under Ameren’s Long-term Incentive Plan of                  1998.  Ameren does not have any publicly announced equity securities                  repurchase plans or programs. |
|---------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM        4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.**

**Ameren**

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| **Name**                               | **For**     | **Withheld** | **Broker                  Non-Votes****(a)** |
|----------------------------------------|-------------|--------------|----------------------------------------------|
| Susan                  S. Elliott      | 170,433,601 | 3,399,101    | -                                            |
| Gayle                  P.W. Jackson    | 170,555,732 | 3,276,970    | -                                            |
| James                  C. Johnson      | 170,503,619 | 3,329,083    | -                                            |
| Richard                  A. Liddy      | 169,543,114 | 4,289,588    | -                                            |
| Gordon                  R. Lohman      | 169,700,926 | 4,131,776    | -                                            |
| Richard                  A. Lumpkin    | 169,743,607 | 4,089,095    | -                                            |
| Charles                  W. Mueller    | 170,429,775 | 3,402,927    | -                                            |
| Douglas                  R. Oberhelman | 169,918,926 | 3,913,776    | -                                            |
| Gary                  L. Rainwater     | 170,153,917 | 3,678,785    | -                                            |
| Harvey                  Saligman       | 169,812,589 | 4,020,113    | -                                            |
| Patrick                  T. Stokes     | 170,012,820 | 3,819,882    | -                                            |

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| **For**     | **Against** | **Abstain** | **Broker                  Non-Votes****(a)** |
|-------------|-------------|-------------|----------------------------------------------|
| 113,160,592 | 11,497,749  | 3,295,718   | 65,213,786                                   |

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| **For**     | **Against** | **Abstain** | **Broker                  Non-Votes****(a)** |
|-------------|-------------|-------------|----------------------------------------------|
| 167,748,938 | 2,015,561   | 1,822,316   | 21,553,105                                   |

| (a)   | Broker                  shares included in the quorum but not voting on the                  item. |
|-----------------|----------------------------------------------------------------------------------------------------|

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| **For**   | **Against** | **Abstain** | **Broker                  Non-Votes****(a)** |
|-----------|-------------|-------------|----------------------------------------------|
| 9,084,767 | 106,585,670 | 12,364,615  | 65,132,792                                   |

| (a)   | Broker                  shares included in the quorum but not voting on the                  item. |
|-----------------|----------------------------------------------------------------------------------------------------|

**UE**

**CIPS**

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**CILCO**

**IP**

**GENCO        and CILCORP**

**ITEM        6. EXHIBITS.**

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| **Exhibit                    Designation**                                    | **Registrant(s)**                   | **Nature                    of Exhibit**                                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Material                    Contracts**                                     |
| 10.1                                                                     | Ameren                    Companies | June                    9, 2006 Revised Schedule 1 to Amended and Restated Ameren Corporation                    Change                    of Control Severance Plan previously filed as Exhibit 10.5 to                    February 16,                    2006                    Form 8-K |
| **Statement                    re: Computation of                    Ratios** |                                |                                                                                                                                                                                                                                                                                         |

| 12.1 | Ameren  | Ameren’s                    Statement of Computation of Ratio of Earnings to Fixed Charges                                                                                                                                              |
|------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.2 | UE      | UE’s                    Statement of Computation of Ratio of Earnings to Fixed Charges                    and                    Combined                    Fixed Charges and Preferred Stock Dividend Requirements                    |
| 12.3 | CIPS    | CIPS’                    Statement of Computation of Ratio of Earnings to Fixed Charges                    and                    Combined                    Fixed Charges and Preferred Stock Dividend Requirements                   |
| 12.4 | Genco   | Genco’s                    Statement of Computation of Ratio of Earnings to Fixed                    Charges                                                                                                                            |
| 12.5 | CILCORP | CILCORP’s                    Statement of Computation of Ratio of Earnings to Fixed                    Charges                                                                                                                          |
| 12.6 | CILCO   | CILCO’s                    Statement of Computation of Ratio of Earnings to Fixed Charges                    and                    Combined                    Fixed Charges and Preferred Stock Dividend Requirements                 |
| 12.7 | IP      | IP’s                    Statement of Computation of Ratio of Earnings to Fixed Charges                    and                    Combined                    Fixed Charges and Preferred Stock Dividend                    Requirements |

| **Rule                    13a-14(a) / 15d-14(a) Certifications** |
|------------------------------------------------------------------|
| 31.1                                                             | Ameren | Rule                    13a-14(a)/15d-14(a) Certification of Principal Executive Officer                    of                    Ameren |
| 31.2                                                             | Ameren | Rule                    13a-14(a)/15d-14(a) Certification of Principal Financial Officer                    of                    Ameren |
| 31.3                                              | UECIPSCILCORPCILCOIP | Rule                    13a-14(a)/15d-14(a) Certification of Principal Executive Officer                    of UE,                    CIPS, CILCORP,                    CILCO and IP |
| 31.4                                         | UECIPSGencoCILCORPCILCOIP | Rule                    13a-14(a)/15d-14(a) Certification of Principal Financial Officer                    of UE,                    CIPS, Genco,                    CILCORP, CILCO and IP |
| 31.5                                                             | Genco | Rule                    13a-14(a)/15d-14(a) Certification of Principal Executive Officer                    of                    Genco |

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| **Exhibit                    Designation** | **Registrant(s)** | **Nature                    of Exhibit** |
|--------------------------------------------|-------------------|------------------------------------------|

| **Section                    1350 Certifications** |
|----------------------------------------------------|
| 32.1                           | AmerenUECIPSCILCORPCILCOIP | Section                    1350 Certification of Principal Executive Officer and Principal                    Financial                    Officer                    of Ameren, UE, CIPS, CILCORP, CILCO and IP |
| 32.2                                               | Genco | Section                    1350 Certification of Principal Executive Officer and Principal                    Financial                    Officer                    of Genco |

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**SIGNATURES**

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