<PAGE>
EXHIBIT 12.1
<TABLE>
<CAPTION>
DYNEGY HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ($ IN 000'S)
------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------
1999 1998 1997 1996 1995
-----------------------------------------------------------------------------
Computation of Earnings:
<S> <C> <C> <C> <C> <C>
Pre-tax income (loss) from continuing operations $226,526 $158,691 $(149,895) $169,645 $65,234
Undistributed income from equity investees 13,754 6,477 4,073 21,729 9,169
-----------------------------------------------------------------------------
Computed Earnings (Loss) 212,772 152,214 (153,968) 147,916 56,065
Fixed Charges:
Interest costs:
Expensed 75,730 73,672 63,455 46,202 34,475
Capitalized 16,695 7,591 8,800 1,200 1,028
Minority interest in income of a subsidiary 16,632 16,632 9,841 - -
Amortization of financing costs 2,434 1,320 943 772 1,132
Preferred Stock Dividend - - - - -
Tax Gross-up on Preferred Dividends - - - - -
Amortization of Premium - (2,568) (6,768) (4,892) (3,216)
Rental expense representative of interest factor 24,732 20,698 13,572 4,171 3,719
-----------------------------------------------------------------------------
Total Fixed Charges 136,223 117,345 89,843 47,453 37,138
-----------------------------------------------------------------------------
Earnings Before Income Taxes and Fixed Charges $332,300 $261,968 $ (72,925) $194,169 $92,175
=============================================================================
Ratio of Earnings to Fixed Charges 2.43 2.23 (a) 4.09 2.48
(a) Earnings are inadequate to cover fixed charges for the year ended December 31, 1997, by approximately $72.9 million.
</TABLE>
