**Exhibit      12.7**

| **Illinois                  Power Company****Computation                  of Ratios of Earnings to Fixed Charges and Combined****Fixed                  Charges and Preferred Stock Dividend Requirements****(Thousands                  of Dollars, Except Ratios)** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                  |   |   |   |   |
|                                                                                                                                                                                                                                                                  | **Nine                  Months** |   | **Year** |   |
|                                                                                                                                                                                                                                                                  | **Ended** |   | **Ended** |   |
|                                                                                                                                                                                                                                                                  | **September                  30,** |   | **December                  31,** |   |
|                                                                                                                                                                                                                                                                  | **2006** |   | **2005** |   |
| Net                  income from continuing operations                                                                                                                                                                                                                | $ | 62,920 |   | $ | 97,039 |   |
| Add-                  Taxes based on income                                                                                                                                                                                                                           |   | 42,422 |   |   | 65,171 |   |
| Net                  income before income taxes                                                                                                                                                                                                                       |   | 105,342 |   |   | 162,210 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Add-                  fixed charges:                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Interest                  on long term debt                                                                                                                                                                                                                           |   | 34,184 |   |   | 41,028 |   |
| Estimated                  interest cost within rental expense                                                                                                                                                                                                        |   | 144 |   |   | 1,290 |   |
| Amortization                  of net debt premium, discount,expenses                  and losses                                                                                                                                                                      |   | 2,601 |   |   | 2,315 |   |
| Total                  fixed charges                                                                                                                                                                                                                                  |   | 36,929 |   |   | 44,633 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Earnings                  available for fixed charges                                                                                                                                                                                                                 |   | 142,271 |   |   | 206,843 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Ratio                  of earnings to fixed charges                                                                                                                                                                                                                   |   | 3.85 |   |   | 4.63 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Earnings                  required for combined fixedcharges                  and preferred stock dividends:                                                                                                                                                          |   |   |   |   |   |   |
| Preferred                  stock dividends                                                                                                                                                                                                                            |   | 1,529 |   |   | 2,294 |   |
| Adjustment                  to pre-tax basis                                                                                                                                                                                                                          |   | 1,031 |   |   | 1,542 |   |
|                                                                                                                                                                                                                                                                  |   | 2,560 |   |   | 3,836 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Combined                  fixed charges and preferred stockdividend                  requirements                                                                                                                                                                     | $ | 39,489 |   | $ | 48,469 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |
| Ratio                  of earnings to combined fixed chargesand                  preferred stock dividend requirements                                                                                                                                                |   | 3.60 |   |   | 4.26 |   |
|                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |