100826--3/1/2007--CENTRAL_ILLINOIS_PUBLIC_SERVICE_CO

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{cost, contract, operation}
{debt, indebtedness, cash}
{loss, insurance, financial}
{capital, credit, financial}
{property, intellectual, protect}
If Illinois electric rates are frozen at 2006 levels or if the ability of CIPS, CILCO and IP to recover post-2006 power supply costs or increase electric delivery service rates is otherwise impaired, there may be a material adverse effect on Ameren, UE and Genco in addition to the Ameren Illinois Utilities and CILCORP. Our counterparties may not meet their obligations to us. Increased federal and state environmental regulation will require UE, Genco, CILCO (through AERG) and EEI to incur large capital expenditures and to incur increased operating costs. Future limits on greenhouse gas emissions could result in significant increases in capital and operating expenditures. Increasing costs associated with our defined benefit retirement plans, health care plans, and other employee-related benefits may adversely affect our results of operations, financial position, or liquidity. UE s, Genco s, AERG s, Medina Valley s and EEI s electric generating facilities are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses, liability, and increased purchased power costs. The breach of the upper reservoir of UE s Taum Sauk pumped-storage hydroelectric facility could continue to have an adverse effect on Ameren s and UE s results of operations, liquidity, and financial condition. Genco s, AERG s, and EEI s electric generating facilities must compete for the sale of energy and capacity, which exposes them to price risk. UE s ownership and operation of a nuclear generating facility creates business, financial, and waste disposal risks. Our energy risk management strategies may not be effective in managing fuel and electricity pricing risks, which could result in unanticipated liabilities or increased volatility in our earnings.

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