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Securities and Exchange Commission
Washington, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) - November 19, 1997
Minnesota Power & Light Company
A Minnesota Corporation
Commission File No. 1-3548
IRS Employer Identification No. 41-0418150
30 West Superior Street
Duluth, Minnesota 55802
Telephone - (218) 722-2641
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Minnesota Power & Light Company
Index
Item 7. Financial Statements and Exhibits
Financial Statements
None
Exhibits
12 - Computation of Ratios of Earnings to Fixed Charges and
Supplemental Ratios of Earnings to Fixed Charges.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Minnesota Power & Light Company
-----------------------------------
(Registrant)
November 19, 1997 D. G. Gartzke
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D. G. Gartzke
Senior Vice President - Finance
and Chief Financial Officer
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Exhibit 12
<TABLE>
Minnesota Power & Light Company
Computation of Ratios of Earnings to Fixed Charges and
Supplemental Ratios of Earnings to Fixed Charges
<CAPTION>
For the Year Ended
-------------------------------------------------------------------
December 31,
------------------------------------------------------------------- Nine Months Ended
1992 1993 1994 1995 1996 September 30, 1997
----------- ------------ ------------ ------------ ------------ ------------------
(In thousands except ratios)
<S> <C> <C> <C> <C> <C> <C>
Income from continuing operations $ 67,821 $ 64,374 $ 59,465 $ 61,857 $ 69,221 $ 58,029
per consolidated statement
of income
Add (deduct)
Current income tax expense 29,147 29,277 24,116 13,356 31,395 37,450
Deferred income tax expense
(benefit) (1,113) 1,084 (981) (11,336) (9,770) 856
Deferred investment tax credits (1,568) (2,035) (2,478) (865) (1,986) (1,352)
Undistributed income from less than
50% owned equity investments (5,733) (6,009) (7,547) (9,124) (10,994) (10,216)
Minority interest 2,684 (83) (879) 260 3,269 1,440
----------- ------------ ------------ ------------ ------------ ----------
91,238 86,608 71,696 54,148 81,135 86,207
----------- ------------ ------------ ------------ ------------ ----------
Fixed charges
Interest on long-term debt 44,008 44,647 48,137 45,713 52,386 38,988
Capitalized interest 422 3,010 - 1,395 1,450 396
Other interest charges - net 6,455 1,501 7,382 7,934 10,193 10,621
Interest component of all rentals 5,728 5,729 5,737 3,670 2,541 2,607
Distributions on redeemable
preferred securities of
subsidiary - - - - 4,729 4,528
----------- ------------ ------------ ------------ ------------ ----------
Total fixed charges 56,613 54,887 61,256 58,712 71,299 57,140
----------- ------------ ------------ ------------ ------------ ----------
Earnings before income taxes and fixed
charges (excluding capitalized
interest) $147,429 $138,485 $132,952 $111,465 $150,984 $142,951
=========== ============ ============ ============ ============ ==========
Ratio of earnings to fixed charges 2.60 2.52 2.17 1.90 2.12 2.50
=========== ============ ============ ============ ============ ==========
Earnings before income taxes and fixed
charges (excluding capitalized
interest) $147,429 $138,485 $132,952 $111,465 $150,984 $142,951
Supplemental charges 16,017 15,149 14,370 13,519 14,431 9,044
----------- ------------ ------------ ------------ ------------ ----------
Earnings before income taxes and fixed
and supplemental charges
(excluding capitalized interest) $163,446 $153,634 $147,322 $124,984 $165,415 $151,995
=========== ============ ============ ============ ============ ==========
Total fixed charges $ 56,613 $ 54,887 $ 61,256 $ 58,712 $ 71,299 $ 57,140
Supplemental charges 16,017 15,149 14,370 13,519 14,431 9,044
----------- ------------ ------------ ------------ ------------ ----------
Fixed and supplemental charges $ 72,630 $ 70,036 $ 75,626 $ 72,231 $ 85,730 $ 66,184
=========== ============ ============ ============ ============ ==========
Supplemental ratio of earnings to fixed
charges <F1>
2.25 2.19 1.95 1.73 1.93 2.30
=========== ============ ============ ============ ============ ==========
<FN>
<F1> The supplemental ratio of earnings to fixed charges includes Minnesota Power's (Company) obligation under a contract with
Square Butte Electric Cooperative (Square Butte) which extends through 2007, pursuant to which the Company is purchasing
71 percent of the output of a generating unit capable of generating up to 470 megawatts. The Company is obligated to pay
Square Butte all of Square Butte's leasing and operating and debt service costs, less any amount collected from the sale
of power or energy to others, which shall not have been paid by Square Butte when due. (See Note 17 to the Company's 1996
Consolidated Financial Statements incorporated by reference in the Company's 1996 Annual Report on Form 10-K.)
</FN>
</TABLE>
