<ARTICLE>                                           UT
<LEGEND>
          This schedule  contains summary financial  information  extracted from
          the  balance  sheet,  income  statement,  and cash flow  statement  of
          Illinois  Power  Company and is qualified in its entirety by reference
          to the balance  sheet,  income  statement,  and cash flow statement of
          Illinois Power Company.
</LEGEND>
<MULTIPLIER>                                   1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   JUN-30-1998
<BOOK-VALUE>                                   PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                      4700
<OTHER-PROPERTY-AND-INVEST>                    5
<TOTAL-CURRENT-ASSETS>                         423
<TOTAL-DEFERRED-CHARGES>                       221
<OTHER-ASSETS>                                 0
<TOTAL-ASSETS>                                 5349
<COMMON>                                       1180
<CAPITAL-SURPLUS-PAID-IN>                      0
<RETAINED-EARNINGS>                            27
<TOTAL-COMMON-STOCKHOLDERS-EQ>                 1207
<PREFERRED-MANDATORY>                          197
<PREFERRED>                                    57
<LONG-TERM-DEBT-NET>                           1510
<SHORT-TERM-NOTES>                             80
<LONG-TERM-NOTES-PAYABLE>                      0
<COMMERCIAL-PAPER-OBLIGATIONS>                 288
<LONG-TERM-DEBT-CURRENT-PORT>                  12
<PREFERRED-STOCK-CURRENT>                      0
<CAPITAL-LEASE-OBLIGATIONS>                    100
<LEASES-CURRENT>                               29
<OTHER-ITEMS-CAPITAL-AND-LIAB>                 1869
<TOT-CAPITALIZATION-AND-LIAB>                  5349
<GROSS-OPERATING-REVENUE>                      957
<INCOME-TAX-EXPENSE>                           (26)
<OTHER-OPERATING-EXPENSES>                     931
<TOTAL-OPERATING-EXPENSES>                     905
<OPERATING-INCOME-LOSS>                        52
<OTHER-INCOME-NET>                             3
<INCOME-BEFORE-INTEREST-EXPEN>                 55
<TOTAL-INTEREST-EXPENSE>                       65
<NET-INCOME>                                   (10)
<PREFERRED-STOCK-DIVIDENDS>                    10
<EARNINGS-AVAILABLE-FOR-COMM>                  (20)
<COMMON-STOCK-DIVIDENDS>                       43
<TOTAL-INTEREST-ON-BONDS>                      53
<CASH-FLOW-OPERATIONS>                         247
<EPS-PRIMARY>                                  0
<EPS-DILUTED>                                  0