**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)** |                                    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
|                                                                                                                                                                                                                                                          |                                    |   |    |   |
|                                                                                                                                                                                                                                                          |                                    |   |    |   |
|                                                                                                                                                                                                                                                          | **3                Months Ended**  |   |  **Year                Ended** |   |
|                                                                                                                                                                                                                                                          | **March                31,**       |   |  **December                31,** |   |
|                                                                                                                                                                                                                                                          | **2007**                                |   |  **2006** |   |
| Net                income from continuing operations                                                                                                                                                                                                          | $                                       | 12,501 |   | $ | 56,659 |   |
| Add-                Taxes based on income                                                                                                                                                                                                                     |                                    | 8,229 |   |   | 37,246 |   |
| Net                income before income taxes                                                                                                                                                                                                                 |                                    | 20,730 |   |   | 93,905 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Add-                fixed charges:                                                                                                                                                                                                                            |                                    |   |   |   |   |   |
| Interest                on long term debt                                                                                                                                                                                                                     |                                    | 14,485 |   |   | 46,167 |   |
| Estimated                interest cost within rental expense                                                                                                                                                                                                  |                                    | 60 |   |   | 205 |   |
| Amortization                of net debt premium, discount,expenses                and losses                                                                                                                                                                  |                                    | 2,079 |   |   | 3,537 |   |
| Total                fixed charges                                                                                                                                                                                                                            |                                    | 16,624 |   |   | 49,909 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Earnings                available for fixed charges                                                                                                                                                                                                           |                                    | 37,354 |   |   | 143,814 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Ratio                of earnings to fixed charges                                                                                                                                                                                                             |                                    | 2.24 |   |   | 2.88 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Earnings                required for combined fixedcharges                and preferred stock dividends:                                                                                                                                                      |                                    |   |   |   |   |   |
| Preferred                stock dividends                                                                                                                                                                                                                      |                                    | 574 |   |   | 2,294 |   |
| Adjustment                to pre-tax basis                                                                                                                                                                                                                    |                                    | 378 |   |   | 1,508 |   |
|                                                                                                                                                                                                                                                          |                                    | 952 |   |   | 3,802 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Combined                fixed charges and preferred stockdividend                requirements                                                                                                                                                                 | $                                       | 17,576 |   | $ | 53,711 |   |
|                                                                                                                                                                                                                                                          |                                    |   |   |   |   |   |
| Ratio                of earnings to combined fixed chargesand                preferred stock dividend requirements                                                                                                                                            |                                    | 2.12 |   |   | 2.67 |   |