EXHIBIT 99.2

Dec. 12, 2002

Media:     John Sousa or David Byford
           (713) 767-5800

Analysts:  Katie Pipkin or Christina Cavarretta
           (713) 507-6466

                ILLINOIS POWER FILES FORM 8-K IN CONNECTION WITH
                           PROPOSED FINANCING ACTIVITY

HOUSTON (Dec. 12, 2002) - Dynegy Inc. (NYSE:DYN) today announced that its
subsidiary, Illinois Power Company, a regulated energy delivery company located
in Decatur, Ill., filed a Current Report on Form 8-K with the SEC in connection
with its previously announced plans to pursue financings through the private
sale of mortgage bonds. The filing was made to update Illinois Power's
disclosure since the filing of its third quarter Form 10-Q pursuant to the
requirements of Regulation FD.

     The company will provide additional information on the proposed transaction
if and when it is completed.

     This announcement is neither an offer to sell nor a solicitation of an
offer to buy securities. Illinois Power's securities have not been registered
under the Securities Act of 1933, as amended, or any state securities laws.
Unless so registered, the securities may not be offered or sold in the United
States except pursuant to an exemption from the registration requirements of the
Securities Act and applicable state securities laws.

     Illinois Power serves more than 650,000 natural gas and electricity
customers in a 15,000-square-mile area across Illinois.

     Dynegy Inc. owns operating divisions engaged in power generation, natural
gas liquids, regulated energy delivery and communications. Through these
business units, the company serves customers by delivering value-added solutions
to meet their energy and communications needs. The company's website is
www.dynegy.com.

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