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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) - JUNE 22, 1999
MINNESOTA POWER, INC.
A Minnesota Corporation
Commission File No. 1-3548
IRS Employer Identification No. 41-0418150
30 West Superior Street
Duluth, Minnesota 55802-2093
Telephone - (218) 722-2641
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ITEM 5. OTHER EVENTS.
Reference is made to the Annual Report on Form 10-K for the year ended December
31, 1998 (1998 Form 10-K) of Minnesota Power, Inc. (Minnesota Power or Company)
for background information on the following update. The cited reference is to
the Company's 1998 Form 10-K.
Ref. Page 6. - Regulatory Issues
Ref. Page 16. - Item 2 Properties - Electric Operations
Ref. Page 25. - Outlook - Electric Operations - Eighth Paragraph
On June 22, 1999 Minnesota Power announced plans to build a natural gas-fired
power plant near the city of Superior, Wisconsin. The combustion turbine power
generating station will be capable of producing approximately 90 megawatts of
electric power and cost approximately $35 million to $40 million to build.
Pending any regulatory approvals, construction of the plant would begin during
the year 2000 with completion scheduled in 2002.
Combustion turbines produce low emissions, making them an environmentally
advantageous way to generate electricity. The plant will help alleviate a
developing shortage of electricity during periods of peak electrical demand
during summer and winter months, thereby improving the dependability of the
electric system for the Company's customers. This facility will also help the
Company avoid purchasing higher cost power when other Company generating
facilities are down for maintenance.
Ref. Page 12. - Automotive Services - Second Paragraph
Ref. Page 17. - Automotive Services - Table
Ref. Page 26. - Outlook - Automotive Services - First Paragraph
On July 2, 1999 ADESA Canada, Inc., a wholly owned indirect subsidiary of the
Company, purchased the Vancouver Auto Auction of New Westminster, British
Columbia. This auction facility has six lanes and is situated on a 70-acre site.
The purchase of the Vancouver auction facility is a major component of the
Company's Canadian growth strategy. ADESA now operates 29 vehicle auction
facilities.
Ref. Page 13. - Investments - Real Estate Operations - Sixth Paragraph
Ref. Page 18. - Third Paragraph
Ref. Page 26. - Outlook - Investments - Second Paragraph
Ref. From 10-Q for the quarter ended March 31, 1999, Page 15. - Fourth Paragraph
On June 30, 1999 MP Real Estate Holdings, Inc., a wholly owned subsidiary of the
Company, purchased, for $45.0 million, certain real estate properties located in
Cape Coral, Florida, from a subsidiary of Avatar Holdings Inc., a publicly
traded developer and home builder headquartered in Coral Gables, Florida. Cape
Coral, located adjacent to Fort Myers, Florida, has a population of 100,000 and
is Florida's second largest municipality in land area. Properties purchased
include approximately 2,500 acres of commercial and residential zoned land,
including home sites, a golf resort, marina and commercial buildings. In
exchange for $8.8 million MP Real Estate Holdings, Inc. concurrently assigned to
a third party the rights to a shopping center and a portion of the vacant land.
The Company funded the net amount of this transaction with internally generated
funds and proceeds from the sale of certain investments in the Company's
securities portfolio.
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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, Inc.
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(Registrant)
July 7, 1999 D. G. Gartzke
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D. G. Gartzke
Senior Vice President - Finance
and Chief Financial Officer
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