EXHIBIT 99.2
                     FORM OF NOTICE OF GUARANTEED DELIVERY
                   (Not to be used for Signature Guarantees)

                               ELWOOD ENERGY LLC

                                 EXCHANGE OFFER
                               TO HOLDERS OF ITS
                      8.159% SENIOR SECURED BONDS DUE 2026
                         NOTICE OF GUARANTEED DELIVERY

     As set forth in the Prospectus dated _______________, 2002 (the
"Prospectus") of Elwood Energy LLC (the "Issuer") under "The Exchange Offer--
Procedures for Tendering the Existing Bonds" and in the Letter of Transmittal
for 8.159% Senior Secured Bonds due 2026 (the "Letter of Transmittal"), this
form or one substantially equivalent hereto must be used to accept the Exchange
Offer (as defined below) of the Issuer if: (i) certificates for the above-
referenced Bonds (the "Senior Bonds") are not immediately available; or (ii)
time will not permit all required documents to reach the Exchange Agent (as
defined below) on or before the Expiration Date of the Exchange Offer. The form
may be delivered by hand or transmitted by telegram, telex, facsimile
transmission or letter to the Exchange Agent.

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             THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE
                       AT 5:00 P.M., NEW YORK CITY TIME,
                        ON                       , 2002
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                            The Exchange Agent is:

                  Bank One Trust Company, National Association


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     By Facsimile:   By Registered or Certified Mail:    By Hand/Overnight Delivery:
     (312) 407-8853    Bank One Trust Company, N.A.      Bank One Trust Company, N.A.
                             1 Bank One Plaza               One North State Street
                           Mail Suite IL1-0134                   9/th/ Floor
                       Chicago, Illinois 60670-0134        Chicago, Illinois 60602
                        Attention: Exchange Floor            Attention: Exchanges
                     Global Corporate Trust Services
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                             Confirm by telephone:
                                 (800) 524-9472


For Information Call: (800) 524-9472


DELIVERY OF THIS INSTRUMENT TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR
TRANSMITTAL OF THIS INSTRUMENT TO A FACSIMILE OTHER THAN AS SET FORTH ABOVE DOES
NOT CONSTITUTE A VALID DELIVERY.


Ladies and Gentlemen:

     The undersigned hereby tenders to the Issuer, upon the terms and conditions
set forth in the Prospectus and the Letter of Transmittal (which together
constitute the "Exchange Offer"), receipt of which are hereby acknowledged, the
aggregate principal amount of Senior Bonds set forth below under the guaranteed
delivery procedure described in the Prospectus and the Letter of Transmittal.

                   Sign Here

Principal Amount of Senior BondsTendered* ________________

Signature(s) _____________________________________________

             _____________________________________________


Please Print the Following Information:


Certificate Nos. (if available) ____________

Name(s) __________________________________________________

        __________________________________________________

Total Principal Amount Represented by Senior Bonds:

Certificate(s) _____________________

Address __________________________________________________

        __________________________________________________

Area Code and Tel. No(s). ________________________________

Account Number ___________________________________________

Dated: ________________________, 2002

_____________
*Must be in a minimum denomination of $100,000 and in multiples of $100.00 in
excess of that amount.


     The undersigned, an Eligible Institution within the meaning of Rule 17(A)
(d)-15 under the Securities Exchange Act of 1934, as amended, hereby guarantees
that delivery to the Exchange Agent of certificates tendered hereby, in proper
form for transfer, or delivery of such certificates under the procedure for
book-entry transfer, in either case with delivery of a properly completed and
duly executed Letter of Transmittal (or facsimile thereof) and any other
required documents, is being made within three New York Stock Exchange trading
days after the date of execution of a Notice of Guaranteed Delivery of the
above-named person.

__________________________________________________
Name of Firm


__________________________________________________
Authorized Signature

__________________________________________________
Number and Street or P.O. Box

__________________________________________________
City             State                   Zip Code

__________________________________________________
Area Code and Tel. No.

Dated: _____________________, 2002