EX-12.7 8 dex127.htm IP'S STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES IP's Statement of Computation of Ratio of Earnings to Fixed Charges

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)

 

     Year Ended December 31,
     2001    2002    2003     2004(1)    2005

Net income from continuing operations

    $ 168,473    $ 162,989    $ 117,113     $ 137,538    $ 97,039

Less- Change in accounting principle

      -      -      (2,294 )     -      -

Add- Taxes based on income

      117,221      104,209      76,023       87,591      65,171
                                   

Net income before income taxes and change in accounting principle

      285,694      267,198      195,430       225,129      162,210

Add- fixed charges:

              

Interest on long term debt

      104,861      94,738      146,045       112,616      41,028

Estimated interest cost within rental expense

      2,250      2,442      1,895       1,696      1,290

Amortization of net debt premium, discount, expenses and losses

      18,638      18,135      17,751       18,772      2,315
                                   

Total fixed charges

      125,749      115,315      165,691       133,084      44,633
                                   

Earnings available for fixed charges

      411,443      382,513      361,121       358,213      206,843
                                   

Ratio of earnings to fixed charges

      3.27      3.31      2.17       2.69      4.63
                                   

Earnings required for combined fixed charges and preferred stock dividends:

              

Preferred stock dividends

      2,294      2,294      2,294       2,294      2,294

Adjustment to pre-tax basis

      1,597      1,466      1,434       1,461      1,542
                                   
     3,891      3,760      3,728       3,755      3,836
                                   

Combined fixed charges and preferred stock dividend requirements

    $ 129,640    $ 119,075    $ 169,419     $ 136,839    $ 48,469
                                   

Ratio of earnings to combined fixed charges and preferred stock dividend requirements

      3.17      3.21      2.13       2.61      4.26
                                   

 

(1) Ameren Corporation purchased Illinois Power Company on September 30, 2004, amounts include combined predecessor and successor financial information.