ALLETE has entered an agreement to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners and start the process to become a private company. Learn more at www.ALLETEforward.com.


                                                  REGISTRATION NO.         
          =================================================================

                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C. 20549


                                  ------------------

                                       FORM S-3
               REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933


                                  ------------------

                           MINNESOTA POWER & LIGHT COMPANY
                (Exact name of registrant as specified in its charter)


                                  ------------------

                       MINNESOTA                     41-0418150
             (State or other jurisdiction          (IRS Employer 
           of incorporation or organization)     Identification No.)

                               30 WEST SUPERIOR STREET
                               DULUTH, MINNESOTA 55802
                                   (218) 722-2641
            (Address, including zip code, and telephone number, including
               area code, of registrant's principal executive offices)

                                  ------------------
             DAVID G. GARTZKE    PHILIP R. HALVERSON,    ROBERT J. REGER,
               Senior Vice               Esq.                JR., Esq.
            President-Finance      Vice President,       Reid & Priest LLP
           and Chief Financial   General Counsel and    40 West 57th Street
                 Officer              Secretary         New York, New York
             30 West Superior      30 West Superior            10019
                  Street                Street            (212) 603-2000
            Duluth, Minnesota     Duluth, Minnesota
                  55802                 55802
              (218) 722-2641        (218) 722-2641
            (Names, addresses, including zip codes, and telephone numbers,
                     including area codes, of agents for service)

                                  ------------------
                   It is respectfully requested that the Commission
              send copies of all notices, orders and communications to:
                                MICHAEL CONNOLLY, Esq.
                        Morrison Cohen Singer & Weinstein, LLP
                                 750 Lexington Avenue
                               New York, New York 10022
                                  ------------------
               APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE
          PUBLIC: As soon as practicable after the registration statement
          becomes effective.
               If the only securities being registered on this Form are
          being offered pursuant to dividend or interest reinvestment
          plans, please check the following box.[ ]
               If any of the securities being registered on this Form are
          to be offered on a delayed or continuous basis pursuant to Rule
          415 under the Securities Act of 1933, other than securities
          offered only in connection with dividend or interest reinvestment
          plans, check the following box.[X]
               If this Form is filed to register additional securities for
          an offering pursuant to Rule 462(b) under the Securities Act,
          please check the following box and list the Securities Act
          registration statement number of the earlier effective
          registration statement for the same offering.[ ]
               If this Form is a post-effective amendment filed pursuant
          to Rule 462(c) under the Securities Act, check the following box
          and list the Securities Act registration statement number of the
          earlier effective registration for the same offering.[ ]
               If delivery of the prospectus is expected to be made
          pursuant to Rule 434, please check the following box.[ ]


                                  ------------------
     

                           CALCULATION OF REGISTRATION FEE
     ========================================================================= 
                                         PROPOSED      PROPOSED
                                         MAXIMUM       MAXIMUM
     TITLE OF EACH CLASS   AMOUNT TO     OFFERING     AGGREGATE     AMOUNT OF
        OF SECURITIES          BE         PRICE       OFFERING    REGISTRATION
      TO BE REGISTERED     REGISTERED   PER UNIT(1)    PRICE(1)         FEE
     -------------------------------------------------------------------------
      Common Stock,        3,000,000     $40 3/32   $120,281,250     $35,483
      without par value      Shares
     -------------------------------------------------------------------------
      Preferred Share      3,000,000        ---          ---          ---(3)
      Purchase Rights      Rights(2)
     =========================================================================

          (1)  Estimated solely for the purpose of calculating the
               registration fee, pursuant to Rule 457(c), on the basis of
               the average of the high and low prices of the registrant's
               Common Stock on the New York Stock Exchange composite tape
               on May 5, 1998.
          (2)  The Preferred Share Purchase Rights ("Rights") are attached
               to and will trade with the Common Stock.  The value
               attributable to the Rights, if any, is reflected in the
               market price of the Common Stock.
          (3)  Since no separate consideration is paid for the Rights, the
               registration fee for such securities is included in the fee
               for the Common Stock.

               THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON
          SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE
          DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH
          SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL
          THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
          THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION STATEMENT
          SHALL THEREAFTER BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION,
          ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
          =================================================================


     


          Information contained herein is subject to completion or
          amendment.  A Registration Statement relating to these securities
          has been filed with the Securities and Exchange Commission. 
          These securities may not be sold nor may offers to buy be
          accepted prior to the time the Registration Statement becomes
          effective.  This prospectus shall not constitute an offer to sell
          or the solicitation of an offer to buy nor shall there be any
          sale of these securities in any jurisdiction in which such offer,
          solicitation, or sale would be unlawful prior to registration or
          qualification under the securities laws of any such jurisdiction.


          SUBJECT TO COMPLETION
          DATED MAY 8, 1998

          PROSPECTUS
          ----------



                                   3,000,000 SHARES

                           MINNESOTA POWER & LIGHT COMPANY

                                     COMMON STOCK

                                 (WITHOUT PAR VALUE)


                                 -------------------


               Minnesota Power & Light Company ("Company" or "Minnesota
          Power") intends to offer from time to time not to exceed
          3,000,000 shares of its Common Stock, without par value, ("Common
          Stock") and the preferred share purchase rights attached thereto
          ("Rights") (collectively, the "New Stock").  The New Stock will
          be offered on terms to be determined at the time of sale.  This
          Prospectus will be supplemented by a prospectus supplement
          ("Prospectus Supplement") which will set forth, as applicable,
          the number of shares, the purchase price and other specific terms
          of the New Stock in respect of which this Prospectus and the
          Prospectus Supplement are delivered ("Offered Stock").


                                ---------------------


            THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
              SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
              COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
                  OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
                    ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY 
                         REPRESENTATION TO THE CONTRARY IS A
                                  CRIMINAL OFFENSE.




                                ---------------------



               The New Stock may be sold directly by the Company or
          through agents designated from time to time or through dealers or
          underwriters.  If any agent of the Company or any underwriters
          are involved in the sales of the New Stock, the names of such
          agents or such underwriters and any applicable commissions or
          discounts and the net proceeds to the Company will be set forth
          in the Prospectus Supplement.




                                  ------------------



                   The date of this Prospectus is                 .


     

                                AVAILABLE INFORMATION

               The Company is subject to the informational requirements of
          the Securities Exchange Act of 1934, as amended ("1934 Act") and,
          in accordance therewith, files reports, proxy statements and
          other information with the Securities and Exchange Commission
          ("Commission"). Such reports, proxy statements and other
          information filed by the Company may be inspected and copied at
          the public reference facilities maintained by the Commission at
          450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at
          the following Regional Offices of the Commission:  New York
          Regional Office, 7 World Trade Center, 13th Floor, New York, New
          York 10048; and Chicago Regional Office, Citicorp Center, 500
          West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies
          of such material may also be obtained at prescribed rates from
          the Public Reference Section of the Commission at 450 Fifth
          Street, N.W., Washington, D.C. 20549. The Commission maintains a
          Web site (http://www.sec.gov) that contains reports, proxy
          statements and other information filed electronically by the
          Company.  The Common Stock and the Rights are listed on the New
          York Stock Exchange. Reports and other information concerning the
          Company may be inspected and copied at the office of such
          Exchange at 20 Broad Street, New York, New York. In addition, the
          Company's 5% Preferred Stock, $100 par value, is listed on the
          American Stock Exchange. Reports and other information concerning
          the Company may also be inspected and copied at the office of
          such Exchange at 86 Trinity Place, New York, New York.


                                ----------------------

                   INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

               The following documents, filed by the Company with the
          Commission pursuant to the 1934 Act, are hereby incorporated by
          reference:

               (1)  The Company's Annual Report on Form 10-K for
                    the year ended December 31, 1997 ("1997 Form
                    10-K").

               (2)  The Company's Quarterly Report on Form 10-Q
                    for the quarter ended March 31, 1998.

               Each document filed subsequent to the date of this
          Prospectus pursuant to Section 13(a), 13(c), 14 or 15(d) of the
          1934 Act prior to the termination of the offering made by this
          Prospectus shall be deemed to be incorporated by reference in
          this Prospectus and shall be a part hereof from the date of
          filing of such document; provided, however, that the documents
          enumerated above or subsequently filed by the Company pursuant to
          Section 13 or 15(d) of the 1934 Act prior to the filing with the
          Commission of the Company's most recent Annual Report on Form 10-
          K shall not be incorporated by reference in this Prospectus or be
          a part hereof from and after the filing of such most recent
          Annual Report on Form 10-K.  The documents which are incorporated
          by reference in this Prospectus are sometimes hereinafter
          referred to as the "Incorporated Documents."

               Any statement contained in a document incorporated or deemed
          to be incorporated by reference herein shall be deemed to be
          modified or superseded for purposes of this Prospectus to the
          extent that a statement contained herein or in any other
          subsequently filed document which is deemed to be incorporated by
          reference herein modifies or supersedes such statement. Any such
          statement so modified or superseded shall not be deemed, except
          as so modified or superseded, to constitute a part of this
          Prospectus.

               The Company will provide without charge to each person,
          including any beneficial owner, to whom a copy of this Prospectus
          is delivered, upon the written or oral request of any such
          person, a copy of any document referred to above which has been
          or may be incorporated in this Prospectus by reference, other
          than exhibits to such documents (unless such exhibits are
          specifically incorporated by reference into such documents).
          Requests for such copies should be directed to:  Shareholder
          Services, Minnesota Power, 30 West Superior Street, Duluth,
          Minnesota 55802, telephone number (218) 723-3974 or (800) 535-
          3056.


                                      2
     

                                     THE COMPANY

               Minnesota Power, a broadly diversified service company
          incorporated under the laws of the State of Minnesota in 1906,
          has operations in four business segments: (1) Electric
          Operations, which include electric and gas services, and coal
          mining; (2) Water Services, which include water and wastewater
          services; (3) Automotive Services, which include a network of
          vehicle auctions, a finance company and an auto transport
          company; and (4) Investments, which include a securities
          portfolio, a 21 percent equity investment in a financial guaranty
          reinsurance and insurance company, and real estate operations.
          Corporate Charges represent general corporate expenses, including
          interest, not specifically allocated to any one business segment.
          As of March 31, 1998 the Company and its subsidiaries had
          approximately 6,900 employees. The principal executive offices of
          the Company are located at 30 West Superior Street, Duluth,
          Minnesota 55802, telephone number (218) 722-2641.

                                                                (Unaudited)
                                                            Three Months Ended
                               Year Ended December 31            March 31
                           ----------------------------     ------------------
                            1997       1996       1995       1998       1997
     -------------------------------------------------------------------------
     MILLIONS
        
        OPERATING REVENUE
         AND INCOME
        Electric
         Operations        $541.9     $529.2    $503.5      $134.0    $131.5
        Water Services       95.5       85.2      66.1        20.8      20.6
        Automotive
         Services (a)       255.5      183.9      61.6        76.7      60.5
        Investments          60.9       49.9      43.7        15.2       9.5
        Corporate Charges    (0.2)      (1.3)     (2.0)       (0.1)      0.0
                           ------     ------    ------      ------    ------
                           $953.6     $846.9    $672.9      $246.6    $222.1
                           ======     ======    ======      ======    ======

        NET INCOME
        Electric
         Operations        $ 43.1     $ 39.4    $ 41.0      $  9.5   $  12.3
        Water Services        8.2        5.4      (1.0)        0.7       0.4
        Automotive
         Services (a)        14.0        3.7         -         5.4       3.2
        Investments          32.1       38.1      41.3         8.3       5.6
        Corporate Charges   (19.8)     (17.4)    (19.4)       (5.4)     (5.4)
                           ------     ------    ------      ------    ------
                             77.6       69.2      61.9        18.5      16.1
        Discontinued
         Operations (b)         -          -       2.8           -         -
                           ------     ------    ------      ------    ------
                           $ 77.6     $ 69.2    $ 64.7      $ 18.5    $ 16.1
                           ======     ======    ======      ======    ======

     -----------------------------------------------------------------------

     BASIC AND DILUTED
       EARNINGS PER SHARE
       OF COMMON STOCK
            Continuing
              Operations    $2.47      $2.28     $2.06        $.58      $.52
            Discontinued
              Operations        -          -       .10           -         -
                            -----      -----     -----       -----     -----
                            $2.47      $2.28     $2.16        $.58      $.52
                            =====      =====     =====       =====     =====

     AVERAGE SHARES OF
      COMMON STOCK -
      MILLIONS               30.6       29.3      28.5        31.1      30.3

     -----------------------------------------------------------------------

          (a)       The Company purchased 80 percent of ADESA, including
                    AFC and Great Rigs, on July 1, 1995, another 3 percent
                    in January 1996 and the remaining 17 percent in August
                    1996.
          (b)       On June 30, 1995 the Company sold its interest in a
                    paper and pulp business to Consolidated Papers, Inc.


                                      3
     


          ELECTRIC OPERATIONS

               Electric Operations generate, transmit, distribute and
          market electricity. Minnesota Power provides electricity to
          123,000 customers in northeastern Minnesota. MPEX, a division of
          Minnesota Power, is an expansion of the Company's inter-utility
          marketing group which has been a buyer and seller of capacity and
          energy for over 25 years in the wholesale power market. The
          customers of MPEX are other power suppliers in the Midwest and
          Canada. MPEX also contracts with its customers to provide hourly
          energy scheduling and power trading services. The Company's
          wholly owned subsidiary, Superior Water, Light and Power Company,
          sells electricity to 14,000 customers and natural gas to 11,000
          customers, and provides water to 10,000 customers in northwestern
          Wisconsin. BNI Coal, Ltd. ("BNI Coal"), another wholly owned
          subsidiary of the Company, owns and operates a lignite mine in
          North Dakota. Two electric generating cooperatives, Minnkota
          Power Cooperative, Inc. and Square Butte Electric Cooperative
          ("Square Butte"), presently consume virtually all of BNI Coal's
          production of lignite coal under coal supply agreements extending
          to 2027. Under an agreement with Square Butte, Minnesota Power
          purchases about 71 percent of the output from the Square Butte
          unit which is capable of generating up to 455 megawatts ("MW").

               In 1997 industrial customers contributed about half of the
          Company's electric operating revenue. The Company has large power
          contracts to sell power to eleven industrial customers (five
          taconite producers, four paper and pulp mills, and two pipeline
          companies) each requiring 10 MW or more of power. These
          contracts, which have termination dates ranging from April 2001
          to October 2008, require the Company to have a certain amount of
          generating capacity available.  In turn each customer is required
          to pay a minimum monthly demand charge that covers the fixed costs
          associated with having capacity available to serve the customer,
          including a return on common equity.  Under the contracts,
          industrial customers pay demand charges for the base portion of
          their capacity needs on a take-or-pay basis for the entire term
          of the contract, while most customers are permitted bi-annually
          (coincident with each power pool season) to establish their
          capacity needs above this base, thereby committing to additional
          demand charges.  In addition to the demand charge, each customer
          is billed an energy charge for each kilowatthour used that recovers
          the variable costs incurred in generating electricity.

          WATER SERVICES

               Water Services include regulated and non-regulated wholly
          owned subsidiaries of the Company. Florida Water Services
          Corporation, which is the largest investor owned water supplier
          in Florida, provides water to 119,000 customers and wastewater
          treatment services to 53,000 customers. Heater Utilities, Inc.
          provides water to 29,000 customers and wastewater treatment
          services to 2,000 customers in North Carolina. Instrumentation
          Services, Inc. ("ISI") provides predictive maintenance and
          instrumentation consulting services to water and wastewater
          utilities, and other industrial operations throughout the
          southeastern part of the United States as well as Texas and
          Minnesota. U.S. Maintenance and Management Services Corporation
          ("USM&M") was incorporated in 1997 to complement ISI's
          operations. USM&M provides maintenance services to water and
          wastewater utilities, and other industrial operations primarily
          in Florida. Americas' Water Services Corporation, which is
          headquartered near Chicago, Illinois, offers contract management,
          operations and maintenance services to governments and industries
          in the Americas.

          AUTOMOTIVE SERVICES

               Automotive Services include wholly owned subsidiaries
          operating as integral parts of the vehicle auction business:
          ADESA Corporation ("ADESA"), a network of vehicle auctions;
          Automotive Finance Corporation ("AFC"), a finance company; and
          Great Rigs Incorporated ("Great Rigs"), an auto transport
          company. ADESA is the third largest vehicle auction network in
          the United States. Headquartered in Indianapolis, Indiana, ADESA
          owns and operates 25 vehicle auction facilities in the United
          States and Canada through which used cars and other vehicles are
          purchased and sold to franchised automobile dealers and licensed
          used car dealers. In April 1998 ADESA reached agreements to
          purchase three additional vehicle auctions which will increase
          the number of facilities to 28.  Sellers at ADESA's auctions


                                      4
     


          include domestic and foreign auto manufacturers, car dealers,
          automotive fleet/lease companies, banks and finance companies.
          AFC provides inventory financing for wholesale and retail
          automobile dealers who purchase vehicles from ADESA auctions,
          independent auctions and other auction chains. AFC is
          headquartered in Indianapolis, Indiana, and has 57 loan
          production offices located at most ADESA auctions, as well as at
          or near independently owned auto auctions. From these offices car
          dealers obtain credit to purchase vehicles at any of the over 300
          auctions approved by AFC. Great Rigs is one of the nation's
          largest independent used automobile transport carriers with 140
          leased automotive carriers.  Headquartered in Moody, Alabama,
          Great Rigs offers customers pick up and delivery service through
          11 strategically located transportation hubs. Customers of Great
          Rigs include ADESA auctions, car dealerships, vehicle
          manufacturers, leasing companies, finance companies and other
          auctions.

          INVESTMENTS

               Minnesota Power's securities portfolio is managed by
          selected outside managers as well as internal managers. It is
          intended to provide stable earnings and liquidity, and is
          available for investment in existing businesses, acquisitions and
          other corporate purposes. The Company's objective is to maintain
          corporate liquidity between 7 percent and 10 percent of total
          assets ($150 million to $200 million). The Company plans to
          continue to concentrate in market-neutral investment strategies
          designed to provide stable and acceptable returns without
          sacrificing needed liquidity. The securities portfolio is
          structured to perform at an after-tax return between 7 percent
          and 9 percent. While these returns may seem modest compared to
          broader market indices over the past three years, the Company
          believes its investment strategy is a wise course in a volatile
          economic environment. Returns will continue to be partially
          dependent on general market conditions. The Company's investment
          in the securities portfolio at March 31, 1998 was approximately
          $190 million. 

               Minnesota Power owns 3.3 million shares of Capital Re
          Corporation ("Capital Re"), a specialty insurance and reinsurance
          business. Capital Re's product lines currently include financial
          guaranty, mortgage, title, financial, credit and specialty
          reinsurance, and specialty insurance through its participation in
          Lloyds of London. Capital Re trades on the New York Stock
          Exchange under the symbol KRE. Minnesota Power's ownership
          represents 21 percent of the 16 million total outstanding shares
          of Capital Re. The market value of the Company's investment in
          Capital Re was $210 million at March 31, 1998 based on a
          Capital Re share price of $64.25. The Company accounts for its
          investment in Capital Re under the equity method and the carrying
          value was $123 million at March 31, 1998.

               The Company owns 80 percent of Lehigh Acquisition
          Corporation ("Lehigh"), a real estate company in Florida. Lehigh
          owns 2,500 acres of land and approximately 4,000 home sites near
          Fort Myers, Florida; 1,000 home sites in Citrus County, Florida;
          and 2,700 home sites and 12,000 acres of residential, commercial
          and industrial land at Palm Coast, Florida.


                                   USE OF PROCEEDS

               The Company is offering a maximum of 3,000,000 shares of its
          New Stock.  The net proceeds to be received from the issuance and
          sale of the New Stock will be used for general corporate purposes
          which may include, among other things, acquisitions.

               Reference is made to the Incorporated Documents with respect
          to the Company's general capital requirements and general
          financing plans and capabilities.


                                      5
     

                              DIVIDENDS AND PRICE RANGE

               The following table sets forth the high and low sales prices
          per share of the Common Stock reported on the New York Stock
          Exchange composite tape as published in The Wall Street Journal
          and the dividends paid for the indicated periods.

                                               PRICE RANGE 
                                               -----------       DIVIDENDS
                                              HIGH        LOW    PER SHARE
                                              ----        ---    ---------
                                                              

           1996 First Quarter . . . . . . .   $29 3/4   $26 1/8   $  0.51  
                Second Quarter  . . . . . .    29        26          0.51  
                Third Quarter . . . . . . .    28 3/4    26          0.51  
                Fourth Quarter  . . . . . .    28 7/8    26 3/8      0.51  

           1997 First Quarter . . . . . . .   $29       $27 1/4   $  0.51  
                Second Quarter  . . . . . .    30 5/8    27          0.51  
                Third Quarter . . . . . . .    36 5/16   30 1/4      0.51  
                Fourth Quarter  . . . . . .    44        35 3/16     0.51  

           1998 First Quarter . . . . . . .   $43 7/16  $39 1/8   $  0.51 
                Second Quarter (through May    
                7, 1998)  . . . . . . . . .    42 15/16  39 3/16

               The last reported sale price of the Common Stock on the New
          York Stock Exchange composite tape on May 7, 1998, was $39.25
          per share.

               The Company has paid dividends without interruption on its
          Common Stock since 1948, the date of initial distribution of the
          Common Stock by American Power & Light Company, the former holder
          of all such stock.

               The Company has a Dividend Reinvestment and Stock Purchase
          Plan ("Plan"). The Plan provides investors ("Participants") with
          a convenient method of acquiring shares of Common Stock through
          (i) the reinvestment in Common Stock of all or a portion of the
          cash dividends payable on the Participant's holdings of Common
          Stock and Preferred Stocks, and/or (ii) the investment of
          optional cash payments pursuant to the terms of the Plan.  The
          Company reserves the right to suspend, modify, amend or terminate
          the Plan at any time and to interpret and regulate the Plan as it
          deems necessary or desirable in connection with the operation of
          the Plan.  Shares of Common Stock are offered for sale under the
          Plan only by means of a separate prospectus available upon
          request from the Company.


                             DESCRIPTION OF COMMON STOCK

               General.  The following statements relating to the Common
          Stock are merely an outline and do not purport to be complete. 
          They are qualified in their entirety by reference to the
          Company's Articles of Incorporation ("Articles of Incorporation")
          and the Mortgage and Deed of Trust of the Company.  Reference is
          also made to the laws of the State of Minnesota.

               The Company's authorized capital stock consists of
          65,000,000 shares of Common Stock, without par value, 116,000
          shares of 5% Preferred Stock, $100 par value, 1,000,000 shares of
          Serial Preferred Stock, without par value, and 2,500,000 shares
          of Serial Preferred Stock A, without par value.  The Company is
          proposing to amend the Articles of Incorporation to increase the
          number of authorized shares of Common Stock from 65,000,000 to
          130,000,000.  This proposal is being presented to the Company's
          shareholders for approval at the Annual Meeting of Shareholders
          to be held on May 12, 1998.

               Dividend Rights.  The Common Stock is entitled to all
          dividends after full provision for dividends on the issued and
          outstanding Preferred Stocks and the sinking fund requirements of
          the Serial Preferred Stock A, $7.125 Series and $6.70 Series.


                                      6
     

               The Articles of Incorporation provide that so long as any
          shares of the Company's Preferred Stocks are outstanding, cash
          dividends on Common Stock are restricted to 75 percent of
          available net income when Common Stock equity is or would become
          less than 25 percent but more than 20 percent of total
          capitalization.  This restriction becomes 50 percent when such
          equity is or would become less than 20 percent.  See Note 10 to
          Consolidated Financial Statements incorporated by reference in
          the Company's 1997 Form 10-K.

               Voting Rights (Non-Cumulative Voting).  Holders of Common
          Stock are entitled to notice of and to vote at any meeting of
          shareholders.  Each share of Common Stock, as well as each share
          of the issued and outstanding Preferred Stocks, is entitled to
          one vote.  Since the holders of such shares do not have
          cumulative voting rights, the holders of more than 50 percent of
          the shares voting can elect all the Company's directors, and in
          such event the holders of the remaining shares voting (less than
          50 percent) cannot elect any directors.  In addition, the
          Preferred Stocks are expressly entitled, as one class, to elect a
          majority of the directors (the Common Stock, as one class,
          electing the minority) whenever dividends on any of such
          Preferred Stocks shall be in default in the amount of four
          quarterly payments and thereafter until all such dividends in
          default shall have been paid.  The Articles of Incorporation
          include detailed procedures and other provisions relating to
          these rights and their termination, such as quorums, terms of
          directors elected, vacancies, class voting as between Preferred
          Stocks and Common Stock, meetings, adjournments and other
          matters.

               The Articles of Incorporation contain certain provisions
          which make it difficult to obtain control of the Company through
          transactions not having the approval of the Board of Directors,
          including:

               (1)  A provision requiring the affirmative vote of 75
                    percent of the outstanding shares of all classes of
                    capital stock of the Company, present and entitled to
                    vote, in order to authorize certain "Business
                    Combinations."  Any such Business Combination is
                    required to meet certain "fair price" and procedural
                    requirements.  Neither a 75 percent stockholder vote
                    nor "fair price" is required for any Business
                    Combination which has been approved by a majority of
                    the "Disinterested Directors."

               (2)  A provision permitting a majority of the Disinterested
                    Directors to determine whether the above requirements
                    have been satisfied.

               (3)  A provision providing that certain of the Articles of
                    Incorporation cannot be altered unless approved by 75
                    percent of the outstanding shares of all classes of
                    capital stock, present and entitled to vote, unless
                    such alteration is recommended to the shareholders by a
                    majority of the Disinterested Directors.

               Liquidation Rights.  After satisfaction of creditors and of
          the preferential liquidation rights of the outstanding Preferred
          Stocks ($100 per share plus unpaid accumulated dividends), the
          holders of the Common Stock are entitled to share ratably in the
          distribution of all remaining assets.

               Miscellaneous.  Holders of Common Stock have no preemptive
          or conversion rights.

               The Common Stock is listed on the New York Stock Exchange.

               The transfer agents and registrars for the Common Stock are
          Norwest Bank Minnesota, N.A. and the Company.


                    DESCRIPTION OF PREFERRED SHARE PURCHASE RIGHTS

               Reference is made to the Rights Agreement, dated as of July
          24, 1996 ("Rights Plan") between the Company and the Corporate
          Secretary of the Company, as Rights Agent.  The description of
          the Rights set forth below does not purport to be complete and is
          qualified in its entirety by reference to the Rights Plan. 
          Reference is also made to the laws of the State of Minnesota.


                                      7
     

               On July 24, 1996 the Board of Directors of the Company
          declared a dividend distribution of one Right for each
          outstanding share of Common Stock to shareholders of record at
          the close of business on July 24, 1996 ("Record Date") and
          authorized the issuance of one Right with respect to each share
          of Common Stock that becomes outstanding between the Record Date
          and July 23, 2006 or such earlier time as the Rights are
          redeemed.  Except as described below, each Right, when
          exercisable, entitles the registered holder to purchase from the
          Company one one-hundredth of a share of Junior Serial Preferred
          Stock A, without par value ("Serial Preferred"), at a price of
          $90 per one one-hundredth share ("Purchase Price"), subject to
          adjustment.

               No separate Right Certificates will be distributed.  The
          Rights will be evidenced by the Common Stock certificates
          together with a copy of the Summary of Rights Plan and not by
          separate certificates until the earlier to occur (i) 10 days
          following a public announcement that a person or group of
          affiliated or associated persons (an "Acquiring Person") has
          acquired, or obtained the right to acquire, beneficial ownership
          of 15 percent or more of the outstanding shares of Common Stock
          (the "Stock Acquisition Date") or (ii) 15 business days (or such
          later date as may be determined by action of the Board of
          Directors prior to the time that any person becomes an Acquiring
          Person) following the commencement of (or a public announcement
          of an intention to make) a tender or exchange offer if, upon
          consummation thereof, such person or group would be the
          beneficial owner of 15 percent or more of such outstanding shares
          of Common Stock (the earlier of such dates being called the
          "Distribution Date").

               Until the Distribution Date, the Rights will be transferred
          with and only with the Common Stock.  Until the Distribution Date
          (or earlier redemption, expiration or termination of the Rights),
          the transfer of any certificates for Common Stock, with or
          without a copy of the Summary of Rights Plan, will also
          constitute the transfer of the Rights associated with the Common
          Stock represented by such certificates.  As soon as practicable
          following the Distribution Date, separate certificates evidencing
          the Rights ("Right Certificates") will be mailed to holders of
          record of the Common Stock as of the close of business on the
          Distribution Date and, thereafter, such separate Right
          Certificates alone will evidence the Rights.

               Each whole share of Serial Preferred will have a minimum
          preferential quarterly dividend rate equal to the greater of $51
          per share or, subject to anti-dilution adjustment, 100 times the
          dividend declared on the Common Stock.  In the event of
          liquidation, no distribution will be made to the holders of
          Common Stock unless, prior thereto, the holders of the Serial
          Preferred have received a liquidation preference of $100 per
          share, plus accrued and unpaid dividends.  Holders of the Serial
          Preferred will be entitled to notice of and to vote at any
          meeting of the Company's shareholders.  Each whole share of
          Serial Preferred is entitled to one vote.  Such shares do not
          have cumulative voting rights.  The Serial Preferred, together
          with the issued and outstanding shares of the other Preferred
          Stocks of the Company, will be expressly entitled, as one class,
          to elect a majority of directors (the Common Stock electing the
          minority) whenever dividends on any of the Preferred Stocks shall
          be in default in the amount of four quarterly payments and
          thereafter until all such dividends in default shall have been
          paid.  In the event of any merger, consolidation or other
          transaction in which shares of Common Stock are exchanged for or
          converted into other securities and/or property, each whole share
          of Serial Preferred will be entitled to receive, subject to anti-
          dilution adjustment, 100 times the amount into which or for which
          each share of Common Stock is so exchanged or converted.  The
          shares of Serial Preferred are not redeemable by the Company.

               The Rights are not exercisable until the Distribution Date
          and will expire at the earliest of (i) July 23, 2006 ("Final
          Expiration Date"), (ii) the redemption of the Rights by the
          Company as described below, and (iii) the exchange of all Rights
          for Common Stock as described below.

               In the event that any person (other than the Company, its
          affiliates or any person receiving newly-issued shares of Common
          Stock directly from the Company) becomes the beneficial owner of
          15 percent or more of the then outstanding shares of Common
          Stock, each holder of a Right will thereafter have a right to
          receive, upon exercise at the then current exercise price of the
          Right, Common Stock (or, in certain circumstances, cash, property
          or other securities of the Company) having a value equal to two
          times the exercise price of the Right.  The Rights Plan contains
          an exemption for any issuance of Common Stock by the Company
          directly to any person (for example, in a private placement or an


                                      8
     


          acquisition by the Company in which Common Stock is used as
          consideration), even if that person would become the beneficial
          owner of 15 percent or more of the Common Stock, provided that
          such person does not acquire any additional shares of Common
          Stock.

               In the event that, at any time following the Stock
          Acquisition Date, the Company is acquired in a merger or other
          business combination transaction or 50 percent or more of the
          Company's assets or earning power are sold, proper provision will
          be made so that each holder of a Right will thereafter have the
          right to receive, upon exercise at the then current exercise
          price of the Right, common stock of the acquiring or surviving
          company having a value equal to two times the exercise price of
          the Right.

               Notwithstanding the foregoing, following the occurrence of
          any of the events set forth in the preceding two paragraphs (the
          "Triggering Events"), any Rights that are, or (under certain
          circumstances specified in the Rights Plan) were, beneficially
          owned by any Acquiring Person will immediately become null and
          void.

               The Purchase Price payable, and the number of shares of
          Serial Preferred or other securities or property issuable, upon
          exercise of the Rights, are subject to adjustment from time to
          time to prevent dilution, among other circumstances, in the event
          of a stock dividend on, or a subdivision, split, combination,
          consolidation or reclassification of, the Serial Preferred or the
          Common Stock, or a reverse split of the outstanding shares of
          Serial Preferred or the Common Stock.

               At any time after the acquisition by a person or group of
          affiliated or associated persons of beneficial ownership of 15
          percent or more of the outstanding Common Stock and prior to the
          acquisition by such person or group of 50 percent or more of the
          outstanding Common Stock, the Board of Directors may exchange the
          Rights (other than Rights owned by such person or group, which
          have become void), in whole or in part, at an exchange ratio of
          one share of Common Stock per Right (subject to adjustment).

               With certain exceptions, no adjustment in the Purchase Price
          will be required until cumulative adjustments require an
          adjustment of at least one percent in the Purchase Price.  The
          Company will not be required to issue fractional shares of Serial
          Preferred or Common Stock (other than fractions in multiples of
          one one-hundredths of a share of Serial Preferred) and, in lieu
          thereof, an adjustment in cash may be made based on the market
          price of the Serial Preferred or Common Stock on the last trading
          date prior to the date of exercise.

               At any time after the date of the Rights Plan until the time
          that a person becomes an Acquiring Person, the Board of Directors
          may redeem the Rights in whole, but not in part, at a price of
          $.01 per Right ("Redemption Price"), which may (at the option of
          the Company) be paid in cash, shares of Common Stock or other
          consideration deemed appropriate by the Board of Directors.  Upon
          the effectiveness of any action of the Board of Directors
          ordering redemption of the Rights, the Rights will terminate and
          the only right of the holders of Rights will be to receive the
          Redemption Price.

               Issuance of Serial Preferred or Common Stock upon exercise
          of the Rights will be subject to any necessary regulatory
          approvals.  Until a Right is exercised, the holder thereof, as
          such, will have no rights as a shareholder of the Company,
          including, without limitation, the right to vote or to receive
          dividends.  One million shares of Serial Preferred were reserved
          for issuance in the event of exercise of the Rights.

               The provisions of the Rights Plan may be amended by the
          Company, except that any amendment adopted after the time that a
          person becomes an Acquiring Person may not adversely affect the
          interests of holders of Rights.

               The Rights have certain anti-takeover effects.  The Rights
          will cause substantial dilution to a person or group that
          attempts to acquire the Company without conditioning the offer on
          the Rights being redeemed or a substantial number of Rights being
          acquired, and under certain circumstances the Rights beneficially
          owned by such a person or group may become void.  The Rights


                                      9
     


          should not interfere with any merger or other business
          combination approved by the Board of Directors because, if the
          Rights would become exercisable as a result of such merger or
          business combination, the Board of Directors may, at its option,
          at any time prior to the time that any person becomes an
          Acquiring Person, redeem all (but not less than all) of the then
          outstanding Rights at the Redemption Price.


                                       EXPERTS

               The Company's consolidated financial statements incorporated
          in this Prospectus by reference to the Company's 1997 Form 10-K
          have been so incorporated in reliance on the report of Price
          Waterhouse LLP, independent accountants, given on the authority
          of said firm as experts in auditing and accounting.

               The statements as to matters of law and legal conclusions
          under "Description of Common Stock" and "Description of Preferred
          Share Purchase Rights" in this Prospectus and in the Incorporated
          Documents have been reviewed by Philip R. Halverson, Esq.,
          Duluth, Minnesota, Vice President, General Counsel and Secretary
          for Minnesota Power, and are set forth or incorporated herein by
          reference in reliance upon his opinion given upon his authority
          as an expert.

               As of April 30, 1998 Mr. Halverson owned 7,056 shares
          Minnesota Power Common Stock.  Mr. Halverson is acquiring
          additional shares of Minnesota Power Common Stock at regular
          intervals as a participant in the Company's Employee Stock
          Ownership Plan, Employee Stock Purchase Plan, Supplemental
          Retirement Plan and Dividend Reinvestment and Stock Purchase
          Plan.  In addition, Mr. Halverson has options to purchase 7,558
          shares of Minnesota Power Common Stock pursuant to the Company's
          Executive Long-Term Incentive Compensation Plan.


                                    LEGAL OPINIONS

               The legality of the New Stock will be passed upon for the
          Company by Mr. Halverson and by Reid & Priest LLP, New York, New
          York, counsel for the Company, and for any underwriter, dealer or
          agent by Morrison Cohen Singer & Weinstein, LLP.  Reid & Priest
          LLP and Morrison Cohen Singer & Weinstein, LLP may rely as to all
          matters of Minnesota law upon the opinion of Mr. Halverson.


                                 PLAN OF DISTRIBUTION

               The Company may sell the New Stock in any of three ways: (i)
          through underwriters or dealers; (ii) directly to a limited
          number of institutional purchasers or to a single purchaser; or
          (iii) through agents.  The Prospectus Supplement relating to the
          Offered Stock will set forth the terms of the offering of the
          Offered Stock, including the name or names of any underwriters,
          dealers or agents, the purchase price of the Offered Stock and
          the net proceeds to the Company from such sale, any underwriting
          discounts and other items constituting underwriters'
          compensation, any initial public offering price and any discounts
          or concessions allowed or reallowed or paid to dealers.  Any
          initial public offering price and any discounts or concessions
          allowed or reallowed or paid to dealers may be changed from time
          to time.

               If underwriters are used in any sale of the New Stock, the
          Offered Stock will be acquired by the underwriters for their own
          account and may be resold from time to time in one or more
          transactions, including negotiated transactions, at a fixed
          public offering price or at varying prices determined at the time
          of sale.  The underwriter or underwriters with respect to a
          particular underwritten offering of Offered Stock will be named
          in the Prospectus Supplement relating to such offering and, if an
          underwriting syndicate is used, the managing underwriter or
          underwriters will be set forth on the cover page of such
          Prospectus Supplement.  Unless otherwise set forth in the
          Prospectus Supplement, the obligations of the underwriter or
          underwriters to purchase the Offered Stock will be subject to
          certain conditions precedent and the underwriter or underwriters
          will be obligated to purchase all the Offered Stock if any is


                                      10
     


          purchased except that, in certain cases involving a default by
          one or more underwriters, less than all of the Offered Stock may
          be purchased.

               Offered Stock may be sold directly by the Company or through
          agents designated by the Company from time to time.  Any agent
          involved in the offer or sale of the Offered Stock in respect of
          which this Prospectus is delivered will be named, and any
          commissions payable by the Company to such agent will be set
          forth, in the Prospectus Supplement.  Unless otherwise indicated
          in the Prospectus Supplement, any such agent will be acting on a
          best efforts basis for the period of its appointment.

               If so indicated in the Prospectus Supplement, the Company
          will authorize agents, underwriters or dealers to solicit offers
          by certain specified institutions to purchase Offered Stock from
          the Company at the public offering price to be set forth in the
          Prospectus Supplement pursuant to delayed delivery contracts
          providing for payment and delivery on a specified date in the
          future.  Such contracts will be subject to those conditions set
          forth in the Prospectus Supplement, and the Prospectus Supplement
          will set forth the commission payable for solicitation of such
          contracts.

               Subject to certain conditions, agents and underwriters may
          be entitled under agreements entered into with the Company to
          indemnification by the Company against certain civil liabilities,
          including liabilities under the Securities Act of 1933, as
          amended, arising out of or based upon, among other things, any
          untrue statement or alleged untrue statement of a material fact
          contained in the registration statement, this Prospectus, a
          Prospectus Supplement or the Incorporated Documents or the
          omission or alleged omission to state therein a material fact
          required to be stated therein or necessary to make the statements
          therein, in light of the circumstances under which they were
          made, not misleading.  See the Prospectus Supplement.



                                  -----------------




                                      11
     


          =================================================================


             NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO
          MAKE ANY REPRESENTATIONS IN CONNECTION WITH THIS OFFERING OTHER
          THAN THOSE CONTAINED IN THIS PROSPECTUS OR ANY PROSPECTUS
          SUPPLEMENT AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION AND
          REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED
          BY THE COMPANY OR ANY UNDERWRITER.  NEITHER THE DELIVERY OF THIS
          PROSPECTUS OR ANY PROSPECTUS SUPPLEMENT NOR ANY SALE MADE HEREUN-
          DER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT
          THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE
          DATE HEREOF OR THEREOF OR THAT THE INFORMATION CONTAINED HEREIN
          OR THEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. 
          THIS PROSPECTUS AND ANY PROSPECTUS SUPPLEMENT DO NOT CONSTITUTE
          AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY
          SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH THEY
          RELATE.  THIS PROSPECTUS AND ANY PROSPECTUS SUPPLEMENT DO NOT
          CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY
          SUCH SECURITIES IN ANY CIRCUMSTANCES IN WHICH SUCH OFFER OR
          SOLICITATION IS UNLAWFUL.


                                   ---------------


                                  TABLE OF CONTENTS

                                                                       PAGE
                                                                       ----


          Available Information . . . . . . . . . . . . . . . . . . . .   2

          Incorporation of Certain Documents by Reference . . . . . . .   2

          The Company . . . . . . . . . . . . . . . . . . . . . . . . .   3

          Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . .   5

          Dividends and Price Range . . . . . . . . . . . . . . . . . .   6

          Description of Common Stock . . . . . . . . . . . . . . . . .   6

          Description of Preferred Share Purchase Rights  . . . . . . .   7

          Experts . . . . . . . . . . . . . . . . . . . . . . . . . . .  10

          Legal Opinions  . . . . . . . . . . . . . . . . . . . . . . .  10

          Plan of Distribution  . . . . . . . . . . . . . . . . . . . .  10



          =================================================================



          =================================================================






                                   3,000,000 SHARES




                                      MINNESOTA


                                    POWER & LIGHT


                                       COMPANY




                                     COMMON STOCK

                                 (WITHOUT PAR VALUE)




                                   ---------------

                                      PROSPECTUS

                                   ---------------








                                              , 199  
                                 --------- ---     --





          =================================================================


      

                   PART II. INFORMATION NOT REQUIRED IN PROSPECTUS

          ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.

             The expenses in connection with the issuance and distribution
          of the securities being registered are:

             Filing Fee - Securities and Exchange Commission     $ 35,483
             Stock exchange listing fee                            10,937
             Fees of Company's legal counsel*                     100,000
             Independent accountants' fees*                        25,000
             Printing, including Form S-3, 
               prospectus, exhibits, etc.*                         75,000
             Fees of transfer agent and registrar*                 10,000
             Miscellaneous expenses*                               33,580
                                                                 --------
                Total*                                           $290,000
                                                                 ========


          ------------
          *Estimated


          ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.

             Section 302A.521 of the Minnesota Business Corporation Act
          generally provides for the indemnification of directors, officers
          or employees of a corporation made or threatened to be made a
          party to a proceeding by reason of the former or present official
          capacity of the person against judgments, penalties and fines
          (including attorneys' fees and disbursements) where such person,
          among other things, has not been indemnified by another organiza-
          tion, acted in good faith, received no improper personal benefit
          and with respect to any criminal proceeding, had no reasonable
          cause to believe his conduct was unlawful.

             Section 13 of the Bylaws of the Company contains the following
          provisions relative to indemnification of directors and officers:

             "The Company shall reimburse or indemnify each present and
          future director and officer of the Company (and his or her heirs,
          executors and administrators) for or against all expenses reason-
          ably incurred by such director or officer in connection with or
          arising out of any action, suit or proceeding in which such
          director or officer may be involved by reason of being or having
          been a director or officer of the Company.  Such indemnification
          for reasonable expenses is to be to the fullest extent permitted
          by the Minnesota Business Corporation Act, Minnesota Statutes
          Chapter 302A.  By affirmative vote of the Board of Directors or
          with written approval of the Chairman and Chief Executive Offi-
          cer, such indemnification may be extended to include agents and
          employees who are not directors or officers of the Company, but
          who would otherwise be indemnified for acts and omissions under
          Chapter 302A of the Minnesota Business Corporation Act, if such
          agent or employee were an officer of the Company."

             "Reasonable expenses may include reimbursement of attorney's
          fees and disbursements, including those incurred by a person in
          connection with an appearance as a witness."

             "Upon written request to the Company and approval by the
          Chairman and Chief Executive Officer, an agent or employee for
          whom indemnification has been extended, or an officer or director
          may receive an advance for reasonable expenses if such agent,
          employee, officer or director is made or threatened to be made a
          party to a proceeding involving a matter for which indemnifica-
          tion is believed to be available under Minnesota Statutes Chapter
          302A."

             "The foregoing rights shall not be exclusive of other rights
          to which any director or officer may otherwise be entitled and
          shall be available whether or not the director or officer contin-
          ues to be a director or officer at the time of incurring such
          expenses and liabilities."


                                      II-1
     


             The Company has insurance covering its expenditures which
          might arise in connection with the lawful indemnification of its
          directors and officers for their liabilities and expenses, and
          insuring officers and directors of the Company against certain
          other liabilities and expenses.


          ITEM 16.  EXHIBITS

          EXHIBIT
          NUMBER
          ------

            1          - Form of Underwriting Agreement.

             *4(a)1    - Articles of Incorporation, restated as of July 27,
                         1988 (filed as Exhibit 3(a), File No. 33-24936).

             *4(a)2    - Certificate Fixing Terms of Serial Preferred Stock
                         A, $7.125 Series (filed as Exhibit 3(a)2, File No.
                         33-50143).

             *4(a)3    - Certificate Fixing Terms of Serial Preferred Stock
                         A, $6.70 Series (filed as Exhibit 3(a)3, File No.
                         33-50143).

             *4(b)     - Bylaws as amended January 23, 1991 (filed as
                         Exhibit 3(b), File No. 33-45549).

             *4(c)l    - Mortgage and Deed of Trust, dated as of September
                         1, 1945, between the Company and Irving Trust
                         Company (now The Bank of New York) and Richard H.
                         West (W.T. Cunningham, successor), Trustees (filed
                         as Exhibit 7(c), File No. 2-5865).

             *4(c)2    - Supplemental Indentures to Mortgage and Deed of
                         Trust:

                   NUMBER       DATED AS OF      REFERENCE FILE   EXHIBIT
                   ------       -----------      --------------   --------

                   First        March 1, 1949    2-7826            7(b)
                   Second       July 1, 1951     2-9036            7(c)
                   Third        March 1, 1957    2-13075           2(c)
                   Fourth       January 1, 1968  2-27794           2(c)
                   Fifth        April 1, 1971    2-39537           2(c)
                   Sixth        August 1, 1975   2-54116           2(c)
                   Seventh      September 1, 19762-57014           2(c)
                   Eighth       September 1, 19772-59690           2(c)
                   Ninth        April 1, 1978    2-60866           2(c)
                   Tenth        August 1, 1978   2-62852          2(d)2
                   Eleventh     December 1, 1982 2-56649          4(a)3
                   Twelfth      April 1, 1987    33-30224         4(a)3
                   Thirteenth   March 1, 1992    33-47438          4(b)
                   Fourteenth   June 1, 1992     33-55240          4(b)
                   Fifteenth    July 1, 1992     33-55240          4(c)
                   Sixteenth    July 1, 1992     33-55240          4(d)
                   Seventeenth  February 1, 1993 33-50143          4(b)
                   Eighteenth   July 1, 1993     33-50143          4(c)
                   Nineteenth   February 1, 1997 1-3548 
                                                 (1996 Form
                                                 10-K)             4(a)3
                   Twentieth    November 1, 1997 1-3548 
                                                 (1997 Form
                                                 10-K)             4(a)3


                                      II-2
     


          Exhibit
          Number
          ------

          *4(d)    -   Mortgage and Deed of Trust, dated as of March 1,
                       1943, between Superior Water, Light and Power
                       Company and Chemical Bank & Trust Company and Howard
                       B. Smith, as Trustees, both succeeded by First Bank
                       N.A., as Trustee (filed as Exhibit 7(c), File No. 2-
                       8668), as supplemented and modified by First
                       Supplemental Indenture thereto dated as of March 1,
                       1951 (filed as Exhibit 2(d)(1), File No. 2-59690),
                       Second Supplemental Indenture thereto dated as of
                       March 1, 1962 (filed as Exhibit 2(d)l, File No. 2-
                       27794), Third Supplemental Indenture thereto dated
                       July 1, 1976 (filed as Exhibit 2(e)l, File No. 2-
                       57478), Fourth Supplemental Indenture thereto dated
                       as of March 1, 1985 (filed as Exhibit 4(b), File No.
                       2-78641), Fifth Supplemental Indenture thereto dated
                       as of December 1, 1992 (filed as Exhibit 4(b)l to
                       Form 10-K for the year ended December 31, 1992, File
                       No. 1-3548), Sixth Supplemental Indenture, dated as
                       of March 24, 1994 (filed as Exhibit 4(b)l to Form
                       10-K for the year ended December 31, 1996, File No.
                       1-3548), Seventh Supplemental Indenture, dated as of
                       November 1, 1994 (filed as Exhibit 4(b)2 to Form 10-
                       K for the year ended December 31, 1996, File No. 1-
                       3548) and Eighth Supplemental Indenture, dated as of
                       January 1, 1997 (filed as Exhibit 4(b)3 to Form 10-K
                       for the year ended December 31, 1996, File No. 1-
                       3548).

          *4(e)    -   Indenture, dated as of March 1, 1993, between
                       Southern States Utilities, Inc. (now Florida Water
                       Services Corporation) and Nationsbank of Georgia,
                       National Association (now SunTrust Bank, Central
                       Florida, N.A.), as Trustee (filed as Exhibit 4(d) to
                       Form 10-K for the year ended December 31, 1992, File
                       No. 1-3548), as supplemented and modified by First
                       Supplemental Indenture, dated as of March 1, 1993
                       (filed as Exhibit 4(c)l to Form 10-K for the year
                       ended December 31, 1996, File No. 1-3548), Second
                       Supplemental Indenture, dated as of March 31, 1997
                       (filed as Exhibit 4 to Form 10-Q for the quarter
                       ended March 31, 1997, File No. 1-3548) and Third
                       Supplemental Indenture, dated as of May 28, 1997
                       (filed as Exhibit 4 to Form 10-Q for the quarter
                       ended June 30, 1997, File No. 1-3548).

          *4(f)    -   Amended and Restated Trust Agreement, dated as of
                       March 1, 1996, relating to MP&L Capital I's 8.05%
                       Cumulative Quarterly Income Preferred Securities,
                       between the Company, as Depositor, and The Bank of
                       New York, The Bank of New York (Delaware), Philip R.
                       Halverson, David G. Gartzke and James K. Vizanko, as
                       Trustees (filed as Exhibit 4(a) to Form 10-Q for the
                       quarter ended March 31, 1996, File No. 1-3548).

           *4(g)   -   Amendment No. 1, dated April 11, 1996, to Amended
                       and Restated Trust Agreement, dated as of March 1,
                       1996, relating to MP&L Capital I's 8.05% Cumulative
                       Quarterly Income Preferred Securities (filed as
                       Exhibit 4(b) to Form 10-Q for the quarter ended
                       March 31, 1996, File No. 1-3548).

          *4(h)    -   Indenture, dated as of March 1, 1996, relating to
                       the Company's 8.05% Junior Subordinated Debentures,
                       Series A, Due 2015, between the Company and The Bank
                       of New York, as Trustee (filed as Exhibit 4(c) to
                       Form 10-Q for the quarter ended March 31, 1996, File
                       No. 1-3548).

          *4(i)    -   Guarantee Agreement, dated as of March 1, 1996,
                       relating to MP&L Capital I's 8.05% Cumulative
                       Quarterly Income Preferred Securities, between the
                       Company, as Guarantor, and The Bank of New York, as
                       Trustee (filed as Exhibit 4(d) to Form 10-Q for the
                       quarter ended March 31, 1996, File No. 1-3548).

          *4(j)    -   Agreement as to Expenses and Liabilities, dated as
                       of March 20, 1996, relating to MP&L Capital I's
                       8.05% Cumulative Quarterly Income Preferred


                                      II-3
     

                       Securities, between the Company and MP&L Capital I
                       (filed as Exhibit 4(e) to Form 10-Q for the quarter
                       ended March 31, 1996, File No. 1-3548).

          *4(k)    -   Officer's Certificate, dated March 20, 1996, estab-
                       lishing the terms of the 8.05% Junior Subordinated
                       Debentures, Series A, Due 2015 issued in connection
                       with the 8.05% Cumulative Quarterly Income Preferred
                       Securities of MP&L Capital I (filed as Exhibit 4(i)
                       to Form 10-K for the year ended December 31, 1996,
                       File No. 1-3548).

          *4(l)    -   Rights Agreement dated as of July 24, 1996, between
                       Minnesota Power & Light Company and the Corporate
                       Secretary of Minnesota Power & Light Company, as
                       Rights Agent (filed as Exhibit 4 to Form 8-K dated
                       August 2, 1996, File No. 1-3548).

          *4(m)    -   Indenture, dated as of May 15, 1996, relating to the
                       ADESA Corporation's 7.70% Senior Notes, Series A,
                       Due 2006, between ADESA Corporation and The Bank of
                       New York, as Trustee (filed as Exhibit 4(k) to Form
                       10-K for the year ended December 31, 1996, File No.
                       1-3548).

           *4(n)   -   Guarantee of Minnesota Power & Light Company, dated
                       as of May 30, 1996, relating to the ADESA
                       Corporation's 7.70% Senior Notes, Series A, Due 2006
                       (filed as Exhibit 4(i) to Form 10-K for the year
                       ended December 31, 1996, File No. 1-3548).

           *4(o)   -   ADESA Corporation Officer's Certificate 1-D-1, dated
                       May 30, 1996, relating to the ADESA Corporation's
                       7.70% Senior Notes, Series A, Due 2006 (filed as Ex-
                       hibit 4(m) to Form 10-K for the year ended December
                       31, 1996, File No. 1-3548).

          5(a)     -   Opinion and Consent of Philip R. Halverson, Esq.,
                       Vice President, General Counsel and Secretary of the
                       Company.

          5(b)     -   Opinion and Consent of Reid & Priest LLP.

          23(a)    -   Consent of Price Waterhouse LLP.

          23(b)    -   Consents of Philip R. Halverson, Esq., and Reid &
                       Priest LLP are contained in Exhibits 5(a) and 5(b),
                       respectively.

          24       -   Power of Attorney (see page II-7).


          ---------------

          *Incorporated herein by reference as indicated.


                                      II-4
     


          ITEM 17.  UNDERTAKINGS.

             The undersigned registrant hereby undertakes:

             (1)   To file, during any period in which offers or sales are
                   being made, a post-effective amendment to this regis-
                   tration statement:

                   (i) To include any prospectus required by
                       section 10(a)(3) of the Securities Act
                       of 1933;

                  (ii) To reflect in the prospectus any facts
                       or events arising after the effective
                       date of the registration statement (or
                       the most recent post-effective amend-
                       ment thereof) which, individually or in
                       the aggregate, represent a fundamental
                       change in the information set forth in
                       the registration statement.  Notwith-
                       standing the foregoing, any increase or
                       decrease in volume of securities of-
                       fered (if the total dollar value of
                       securities offered would not exceed
                       that which was registered) and any de-
                       viation from the low or high end of the
                       estimated maximum offering range may be
                       reflected in the form of prospectus
                       filed with the Commission pursuant to
                       Rule 424(b) if, in the aggregate, the
                       changes in volume and price represent
                       no more than a 20 percent change in
                       maximum aggregate offering price set
                       forth in the "Calculation of Registra-
                       tion Fee" table in the effective regis-
                       tration statement;

                 (iii) To include any material information
                       with respect to the plan of distribu-
                       tion not previously disclosed in the
                       registration statement or any material
                       change to such information in the reg-
                       istration statement.

               Provided, however, that paragraphs (i) and (ii) do not
               apply if the registration statement is on Form S-3 or Form
               S-8 and the information required to be included in a post-
               effective amendment by those paragraphs is contained in
               periodic reports filed with or furnished to the Commission
               by the registrant pursuant to section 13 or section 15(d)
               of the Securities Exchange Act of 1934 that are incorporat-
               ed by reference in the registration statement.

         (2)   That, for the purpose of determining any liability
               under the Securities Act of 1933, each such post-effective
               amendment shall be deemed to be a new registration state-
               ment relating to the securities offered therein, and the
               offering of such securities at that time shall be deemed to
               be the initial bona fide offering thereof.

         (3)   To remove from registration by means of a post-effec-
               tive amendment any of the securities being registered
               which remain unsold at the termination of the offering.

         (4)   That, for purposes of determining any liability under
               the Securities Act of 1933, each filing of the registr-
               ant's annual report pursuant to section 13(a) or sec-
               tion 15(d) of the Securities Exchange Act of 1934 that
               is incorporated by reference in the registration state-
               ment shall be deemed to be a new registration statement
               relating to the securities offered therein, and the
               offering of such securities at that time shall be
               deemed to be the initial bona fide offering thereof.

         (5)   Insofar as indemnification for liabilities arising
               under the Securities Act of 1933 may be permitted to
               directors, officers and controlling persons of the
               registrant pursuant to the foregoing provisions, or
               otherwise, the registrant has been advised that in the
               opinion of the Securities and Exchange Commission such
               indemnification is against public policy as expressed
               in the Act and is, therefore, unenforceable.  In the
               event that a claim for indemnification against such
               liabilities (other than the payment by the registrant
               of expenses incurred or paid by a director, officer or
               controlling person of the registrant in the successful
               defense of any action, suit or proceeding) is asserted
               by such director, officer or controlling person in
               connection with the securities being registered, the


                                      II-5
     

               registrant will, unless in the opinion of its counsel
               the matter has been settled by controlling precedent,
               submit to a court of appropriate jurisdiction the ques-
               tion whether such indemnification by it is against
               public policy as expressed in the Act and will be gov-
               erned by the final adjudication of such issue.




                                      Ii-6
      

                                  POWER OF ATTORNEY

             Each person whose signature appears below hereby authorizes
          any agent for service named in this registration statement to
          execute in the name of each such person, and to file with the
          Securities and Exchange Commission, any and all amendments,
          including post-effective amendments, to the registration state-
          ment, and appoints any such agent for service as attorney-in-fact
          to sign in each such person's behalf individually and in each
          capacity stated below and file any such amendments to the regis-
          tration statement and the registrant hereby also appoints each
          such agent for service as its attorney-in-fact with like authori-
          ty to sign and file any such amendments in its name and behalf.


                                      SIGNATURES

             Pursuant to the requirements of the Securities Act of 1933,
          the registrant certifies that it has reasonable grounds to
          believe that it meets all of the requirements for filing on Form
          S-3 and has duly caused this registration statement to be signed
          on its behalf by the undersigned, thereunto duly authorized, in
          the City of Duluth, State of Minnesota, on May 8, 1998.


                                       MINNESOTA POWER & LIGHT COMPANY
                                                  (Registrant)


                                       By     /s/ Edwin L. Russell
                                         --------------------------------
                                                Edwin L. Russell
                                             Chairman, President and
                                             Chief Executive Officer

               Pursuant to the requirements of the Securities Act of 1933,
          this registration statement has been signed by the following
          persons in the capacities and on the dates indicated.


                  SIGNATURE                 TITLE                 DATE
                  ---------                 -----                 ----


         /s/ Edwin L. Russell      Chairman, President,        May 8, 1998
       -------------------------  Chief Executive Officer          
             Edwin L. Russell          and Director
           Chairman, President,
          Chief Executive Officer
               and Director                  


           /s/ D. G. Gartzke      Senior Vice President-       May 8, 1998
       -------------------------       Finance and
               D. G. Gartzke      Chief Financial Officer
           Senior Vice President
                 -Finance
            and Chief Financial
                  Officer


          /s/ Mark A. Schober           Controller             May 8, 1998
       -------------------------
              Mark A. Schober                
                Controller


                                      II-7
     

                  SIGNATURE                 TITLE                 DATE
                  ---------                 -----                 ----



          /s/ Kathleen A. Brekken        Director              May 8, 1998
       ---------------------------
            Kathleen A. Brekken


           /s/ Merrill K. Cragun         Director              May 8, 1998
       ---------------------------
             Merrill K. Cragun


           /s/ Dennis E. Evans           Director              May 8, 1998
       ---------------------------
              Dennis E. Evans


          /s/ Peter J. Johnson            Director             May 8, 1998
       ---------------------------
             Peter J. Johnson


          /s/ George L. Mayer             Director             May 8, 1998
       ---------------------------
              George L. Mayer


           /s/ Paula F. McQueen          Director              May 8, 1998
       ---------------------------
             Paula F. McQueen


          /s/ Robert S. Nickoloff        Director              May 8, 1998
       ---------------------------
            Robert S. Nickoloff


            /s/ Jack I. Rajala           Director              May 8, 1998
       ---------------------------
              Jack I. Rajala


          /s/ Arend J. Sandbulte         Director              May 8, 1998
       ---------------------------
            Arend J. Sandbulte


              /s/ Nick Smith             Director              May 8, 1998
       ---------------------------
                Nick Smith


          /s/ Bruce W. Stender           Director              May 8, 1998
       ---------------------------
             Bruce W. Stender


         /s/ Donald C. Wegmiller         Director              May 8, 1998
       ---------------------------
            Donald C. Wegmiller


                                      II-8
     


                                  EXHIBIT INDEX 


           Exhibit                    Description
           -------                    -----------


              1        - Form of Underwriting Agreement.

             *4(a)1    - Articles of Incorporation, restated as of July 27,
                         1988 (filed as Exhibit 3(a), File No. 33-24936).

             *4(a)2    - Certificate Fixing Terms of Serial Preferred Stock
                         A, $7.125 Series (filed as Exhibit 3(a)2, File No.
                         33-50143).

             *4(a)3    - Certificate Fixing Terms of Serial Preferred Stock
                         A, $6.70 Series (filed as Exhibit 3(a)3, File No.
                         33-50143).

             *4(b)     - Bylaws as amended January 23, 1991 (filed as
                         Exhibit 3(b), File No. 33-45549).

             *4(c)l    - Mortgage and Deed of Trust, dated as of September
                         1, 1945, between the Company and Irving Trust
                         Company (now The Bank of New York) and Richard H.
                         West (W.T. Cunningham, successor), Trustees (filed
                         as Exhibit 7(c), File No. 2-5865).

             *4(c)2    - Supplemental Indentures to Mortgage and Deed of
                         Trust:

                   NUMBER       DATED AS OF      REFERENCE FILE   EXHIBIT
                   ------       -----------      --------------   --------

                   First        March 1, 1949    2-7826            7(b)
                   Second       July 1, 1951     2-9036            7(c)
                   Third        March 1, 1957    2-13075           2(c)
                   Fourth       January 1, 1968  2-27794           2(c)
                   Fifth        April 1, 1971    2-39537           2(c)
                   Sixth        August 1, 1975   2-54116           2(c)
                   Seventh      September 1, 19762-57014           2(c)
                   Eighth       September 1, 19772-59690           2(c)
                   Ninth        April 1, 1978    2-60866           2(c)
                   Tenth        August 1, 1978   2-62852          2(d)2
                   Eleventh     December 1, 1982 2-56649          4(a)3
                   Twelfth      April 1, 1987    33-30224         4(a)3
                   Thirteenth   March 1, 1992    33-47438          4(b)
                   Fourteenth   June 1, 1992     33-55240          4(b)
                   Fifteenth    July 1, 1992     33-55240          4(c)
                   Sixteenth    July 1, 1992     33-55240          4(d)
                   Seventeenth  February 1, 1993 33-50143          4(b)
                   Eighteenth   July 1, 1993     33-50143          4(c)
                   Nineteenth   February 1, 1997 1-3548 
                                                 (1996 Form
                                                 10-K)             4(a)3
                   Twentieth    November 1, 1997 1-3548 
                                                 (1997 Form
                                                 10-K)             4(a)3


          *4(d)    -   Mortgage and Deed of Trust, dated as of March 1,
                       1943, between Superior Water, Light and Power
                       Company and Chemical Bank & Trust Company and Howard
                       B. Smith, as Trustees, both succeeded by First Bank
                       N.A., as Trustee (filed as Exhibit 7(c), File No. 2-
                       8668), as supplemented and modified by First
                       Supplemental Indenture thereto dated as of March 1,
                       1951 (filed as Exhibit 2(d)(1), File No. 2-59690),
                       Second Supplemental Indenture thereto dated as of
                       March 1, 1962 (filed as Exhibit 2(d)l, File No. 2-
                       27794), Third Supplemental Indenture thereto dated
                       July 1, 1976 (filed as Exhibit 2(e)l, File No. 2-
                       57478), Fourth Supplemental Indenture thereto dated
                       as of March 1, 1985 (filed as Exhibit 4(b), File No.
                       2-78641), Fifth Supplemental Indenture thereto dated
                       as of December 1, 1992 (filed as Exhibit 4(b)l to
                       Form 10-K for the year ended December 31, 1992, File
                       No. 1-3548), Sixth Supplemental Indenture, dated as
                       of March 24, 1994 (filed as Exhibit 4(b)l to Form
                       10-K for the year ended December 31, 1996, File No.
                       1-3548), Seventh Supplemental Indenture, dated as of
                       November 1, 1994 (filed as Exhibit 4(b)2 to Form 10-
                       K for the year ended December 31, 1996, File No. 1-
                       3548) and Eighth Supplemental Indenture, dated as of
                       January 1, 1997 (filed as Exhibit 4(b)3 to Form 10-K
                       for the year ended December 31, 1996, File No. 1-
                       3548).

          *4(e)    -   Indenture, dated as of March 1, 1993, between
                       Southern States Utilities, Inc. (now Florida Water
                       Services Corporation) and Nationsbank of Georgia,
                       National Association (now SunTrust Bank, Central
                       Florida, N.A.), as Trustee (filed as Exhibit 4(d) to
                       Form 10-K for the year ended December 31, 1992, File
                       No. 1-3548), as supplemented and modified by First
                       Supplemental Indenture, dated as of March 1, 1993
                       (filed as Exhibit 4(c)l to Form 10-K for the year
                       ended December 31, 1996, File No. 1-3548), Second
                       Supplemental Indenture, dated as of March 31, 1997
                       (filed as Exhibit 4 to Form 10-Q for the quarter
                       ended March 31, 1997, File No. 1-3548) and Third
                       Supplemental Indenture, dated as of May 28, 1997
                       (filed as Exhibit 4 to Form 10-Q for the quarter
                       ended June 30, 1997, File No. 1-3548).

          *4(f)    -   Amended and Restated Trust Agreement, dated as of
                       March 1, 1996, relating to MP&L Capital I's 8.05%
                       Cumulative Quarterly Income Preferred Securities,
                       between the Company, as Depositor, and The Bank of
                       New York, The Bank of New York (Delaware), Philip R.
                       Halverson, David G. Gartzke and James K. Vizanko, as
                       Trustees (filed as Exhibit 4(a) to Form 10-Q for the
                       quarter ended March 31, 1996, File No. 1-3548).

           *4(g)   -   Amendment No. 1, dated April 11, 1996, to Amended
                       and Restated Trust Agreement, dated as of March 1,
                       1996, relating to MP&L Capital I's 8.05% Cumulative
                       Quarterly Income Preferred Securities (filed as
                       Exhibit 4(b) to Form 10-Q for the quarter ended
                       March 31, 1996, File No. 1-3548).

          *4(h)    -   Indenture, dated as of March 1, 1996, relating to
                       the Company's 8.05% Junior Subordinated Debentures,
                       Series A, Due 2015, between the Company and The Bank
                       of New York, as Trustee (filed as Exhibit 4(c) to
                       Form 10-Q for the quarter ended March 31, 1996, File
                       No. 1-3548).

          *4(i)    -   Guarantee Agreement, dated as of March 1, 1996,
                       relating to MP&L Capital I's 8.05% Cumulative
                       Quarterly Income Preferred Securities, between the
                       Company, as Guarantor, and The Bank of New York, as
                       Trustee (filed as Exhibit 4(d) to Form 10-Q for the
                       quarter ended March 31, 1996, File No. 1-3548).

          *4(j)    -   Agreement as to Expenses and Liabilities, dated as
                       of March 20, 1996, relating to MP&L Capital I's
                       8.05% Cumulative Quarterly Income Preferred
                       Securities, between the Company and MP&L Capital I
                       (filed as Exhibit 4(e) to Form 10-Q for the quarter
                       ended March 31, 1996, File No. 1-3548).

          *4(k)    -   Officer's Certificate, dated March 20, 1996, estab-
                       lishing the terms of the 8.05% Junior Subordinated
                       Debentures, Series A, Due 2015 issued in connection
                       with the 8.05% Cumulative Quarterly Income Preferred
                       Securities of MP&L Capital I (filed as Exhibit 4(i)
                       to Form 10-K for the year ended December 31, 1996,
                       File No. 1-3548).

          *4(l)    -   Rights Agreement dated as of July 24, 1996, between
                       Minnesota Power & Light Company and the Corporate
                       Secretary of Minnesota Power & Light Company, as
                       Rights Agent (filed as Exhibit 4 to Form 8-K dated
                       August 2, 1996, File No. 1-3548).

          *4(m)    -   Indenture, dated as of May 15, 1996, relating to the
                       ADESA Corporation's 7.70% Senior Notes, Series A,
                       Due 2006, between ADESA Corporation and The Bank of
                       New York, as Trustee (filed as Exhibit 4(k) to Form
                       10-K for the year ended December 31, 1996, File No.
                       1-3548).

           *4(n)   -   Guarantee of Minnesota Power & Light Company, dated
                       as of May 30, 1996, relating to the ADESA
                       Corporation's 7.70% Senior Notes, Series A, Due 2006
                       (filed as Exhibit 4(i) to Form 10-K for the year
                       ended December 31, 1996, File No. 1-3548).

           *4(o)   -   ADESA Corporation Officer's Certificate 1-D-1, dated
                       May 30, 1996, relating to the ADESA Corporation's
                       7.70% Senior Notes, Series A, Due 2006 (filed as Ex-
                       hibit 4(m) to Form 10-K for the year ended December
                       31, 1996, File No. 1-3548).

          5(a)     -   Opinion and Consent of Philip R. Halverson, Esq.,
                       Vice President, General Counsel and Secretary of the
                       Company.

          5(b)     -   Opinion and Consent of Reid & Priest LLP.

          23(a)    -   Consent of Price Waterhouse LLP.

          23(b)    -   Consents of Philip R. Halverson, Esq., and Reid &
                       Priest LLP are contained in Exhibits 5(a) and 5(b),
                       respectively.

          24       -   Power of Attorney (see page II-7).


          ---------------

          *Incorporated herein by reference as indicated.





                                                                  EXHIBIT 1


                               [               ] SHARES
                               ---------------         

                           MINNESOTA POWER & LIGHT COMPANY

                                     COMMON STOCK


                                UNDERWRITING AGREEMENT

                                                         [          , 199 ]
                                                          -----------    - 
                                                         New York, New York


          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          Dear Sirs:

               Minnesota Power & Light Company  (the "Company") proposes to
          issue and sell to you (each, an "Underwriter" and, collectively,
          the "Underwriters") an aggregate of [           ] shares of the
                                               -----------
          Company's Common Stock, without par value (the "Common Stock"),
          and the preferred share purchase rights attached thereto (the
          "Rights") (collectively referred to as "Firm Shares") .  The
          Company has also agreed to grant to the Underwriters an option
          (the "Option") to purchase up to an additional [                ]
                                                          ----------------
          shares of Common Stock and the attached Rights (collectively
          referred to as the "Option Shares") on the terms and for the
          purposes set forth in Section 1(b).  The Firm Shares and the
          Option Shares are collectively referred to as the "Shares."

               The initial public offering price per share for the Shares
          and the purchase price per share for the Shares to be paid by the
          several Underwriters shall be agreed upon by the Company and the
          Underwriters, and such agreement shall be set forth in a separate
          written instrument substantially in the form of Annex A hereto
          (the "Price Determination Agreement").  The Price Determination
          Agreement may take the form of an exchange of any standard form
          of written telecommunication among the Company and the
          Underwriters and shall specify such applicable information as is
          indicated in Annex A hereto.  The offering of the Shares shall be
          governed by this Agreement, as supplemented by the Price
          Determination Agreement.  From and after the date of the
          execution and delivery of the Price Determination Agreement, this
          Agreement shall be deemed to incorporate, and, unless the context
          otherwise indicates, all references contained herein to "this
          Agreement" and the phrase "herein" shall be deemed to include the
          Price Determination Agreement.

               The Company confirms as follows its agreements with the
          several Underwriters.

               1.   Agreement to Sell and Purchase.
                    ------------------------------

                    (a)  The Company agrees to issue and sell to each
          Underwriter, and each Underwriter, severally and not jointly,
          agrees to purchase from the Company at the purchase price per
          share for the Firm Shares to be agreed upon by the Underwriters
          and the Company and set forth in the Price Determination
          Agreement, the number of Firm Shares set forth opposite the name
          of such Underwriter in Schedule 1 thereto, plus such additional
          number of Firm Shares such Underwriter may become obligated to
          purchase pursuant to Section 10 hereof.  The obligations of the
          Underwriters under this Agreement are several and not joint.  The
          obligations of the Company and the Underwriters under this
          Agreement are undertaken on the basis of the representations and
          are subject to the conditions of this Agreement.

                    (b)  Subject to all the terms and conditions in this
          Agreement, the Company grants  the Option to the Underwriters,
          severally and not jointly, to purchase up to [                ] 
                                                        ----------------
          Option Shares from the Company at the same price per share as the
          Underwriters shall pay for the Firm Shares.  The Option may be
          exercised only to cover over-allotments in the sale of the Firm
          Shares by the several Underwriters and may be exercised in whole
          or in part at any time (but not more than once), upon written or
          telegraphic notice (the "Option Share Notice") by the
          Underwriters to the Company on or before the 30th day after the
          date of this Agreement setting forth the aggregate number of
          Option Shares to be purchased and the time and date for such
          purchase (the "Option Closing Date"), which Option Closing Date
          may be the same as the Closing Date (as defined in Section 2) but
          in no event shall the Option Closing Date be earlier than the
          Closing Date nor later than five business days after the giving
          of the Option Shares Notice.  On the Option Closing Date, the
          Company shall issue and sell to the several Underwriters the
          number of Option Shares set forth in the Option Shares Notice,
          and each Underwriter shall purchase such percentage of the Option
          Shares as is equal to the percentage of Firm Shares that such
          Underwriter is purchasing, as adjusted by the Underwriters in
          such manner as they deem advisable to avoid fractional shares.

                    (c)  The initial public offering price per share for
          the Firm Shares and the purchase price per share for the Firm
          Shares to be paid by the several Underwriters shall be agreed
          upon and set forth in the Price Determination Agreement, which
          shall be dated the date hereof.

               2.   Payment and Delivery.  Delivery of the Firm Shares 
                    --------------------
          shall be made to the Underwriters in New York, New York, against
          payment of the purchase price by wire transfer of immediately
          available funds to an account designated in writing by the
          Company to the Underwriters at least one business day prior to
          the Closing Date (as hereinafter defined).  Such payment shall be
          made at 10:00 a.m., New York City time, on [          , 199 ] or
                                                      ----------     -
          at such time on such other date as may be agreed upon by the
          Company and the Underwriters (such date is hereinafter referred
          to as the "Closing Date").

                    To the extent that the Option is exercised, delivery of
          the Option Shares against payment by the Underwriters (in the
          manner specified above) shall take place in the manner specified
          above for the Closing Date at the time and date (which may be the
          Closing Date) specified in the Option Shares Notice.

                    Certificates evidencing the Shares shall be in
          definitive form and shall be registered in such names and in such
          denominations as the Underwriters shall request in writing at
          least three business days prior to the Closing Date or the Option
          Closing Date, as the case may be.  If no such request is received
          by said time, the Company shall have the right to deliver the
          Shares in the name of the Underwriters in such denominations as
          the Company may determine.  For the purpose of expediting the
          checking and packaging of certificates for the Shares, the
          Company agrees to make such certificates available for inspection
          at least one full business day prior to the Closing Date or the
          Option Closing Date, as the case may be.

                    3.   Registration Statement and Prospectus; Public
                         ---------------------------------------------
           Offering.  The Company has filed with the Securities and
          ---------
          Exchange Commission (the "Commission"), pursuant to provisions of
          the Securities Act of 1933 (the "Act") and the published rules
          and regulations adopted by the Commission thereunder (the "Rules
          and Regulations"), a registration statement (No. 333-     ) on
                                                               -----
          Form S-3, relating to the registration of 3,000,000 shares of the
          Company's Common Stock, without par value.  Such registration
          statement was declared effective on [          , 199 ].  The term
                                               ----------     -
          "preliminary prospectus" as used herein means any preliminary
          prospectus as contemplated by Rule 430 of the Rules and
          Regulations included at any time as a part of such registration
          statement.  Copies of such registration statement and any 
          amendments thereto and of each preliminary prospectus included as
          part of such registration statement have been delivered to the
          Underwriters.  Such registration statement, as it may be amended
          to the date of this Agreement, including financial statements and
          all exhibits, and the prospectus, as supplemented by a prospectus
          supplement relating to the Shares proposed to be filed
          electronically pursuant to Rule 424 are hereinafter respectively
          referred to as the "Registration Statement" and the "Prospectus."
          Any reference herein to the Registration Statement, any
          preliminary prospectus or the Prospectus shall be deemed to refer
          to and include the documents incorporated by reference therein
          pursuant to Item 12 of Form S-3 of the Act (the "Incorporated
          Documents") which were filed under the Securities Exchange Act of
          1934, as amended (the "Exchange Act"), on or before the Effective
          Date or the date of such preliminary prospectus or the
          Prospectus, as the case may be. Any reference herein to the terms
          "amend," "amendment" or "supplement" with respect to the
          Registration Statement, any preliminary prospectus or the
          Prospectus shall be deemed to refer to and include the filing of
          any document under the Exchange Act after the Effective Date, or
          the date of any preliminary prospectus or the Prospectus, as the
          case may be, and incorporated in such document by reference if
          such filing is made prior to the Closing Date.  Any reference
          herein to the term "Effective Date" shall be deemed to refer to
          the later of the time and date the Registration Statement was
          declared effective or the time and date of the filing of the
          Company's most recent Annual Report on Form 10-K if such filing
          is made prior to the Closing Date.

                    The Company understands that the Underwriters propose
          to make a public offering of the Firm Shares, as described in the
          Prospectus, as soon after the date of the Price Determination
          Agreement as the Underwriters deem advisable.  The Company
          confirms that the Underwriters and dealers have been authorized
          to distribute each preliminary prospectus, if any, and are
          authorized to distribute the Prospectus and any amendments or
          supplements to it.

                    4.   Representations of the Company.  The Company 
                         ------------------------------
          represents to the Under-writers as follows:

                         (a)  The Company meets the requirements for use of
          Form S-3 under the Act.

                         (b)  On the Effective Date, and at the Closing
          Date, the Registration Statement and, at the date of the filing
          of the Prospectus, and at the Closing Date, and, if later, the
          Option Closing Date, the Prospectus, as each may be amended or
          supplemented, fully complied or will fully comply in all material
          respects with the applicable provisions of the Act and the Rules
          and Regulations, or pursuant to the Rules and Regulations shall
          be deemed to comply therewith.  On the Effective Date and Closing
          Date and, if later, the Option Closing Date, the Registration
          Statement, as it may be amended or supplemented, did not or will
          not contain an untrue statement of a material fact or omit to
          state a material fact required to be stated therein or necessary
          to make the statements therein not misleading.  On the date of
          filing of the Prospectus and the Closing Date, and, if later, the
          Option Closing Date, the Prospectus, as it may be amended or
          supplemented, will not contain an untrue statement of a material
          fact or omit to state a material fact necessary in order to make
          the statements therein, in the light of the circumstances under
          which they were made, not misleading.   On the date of filing of
          the Prospectus and the Closing Date, and, if later, the Option
          Closing Date, the Incorporated Documents did or will fully comply
          in all material respects with the applicable provisions of the
          Exchange Act and the rules and regulations of the Commission
          thereunder (the "Exchange Act Rules and Regulations"), and, when
          read together with the Prospectus, as it may be amended or
          supplemented, will not contain an untrue statement of a material
          fact or omit to state a material fact required to be stated
          therein or necessary to make the statements therein not
          misleading.  The foregoing representations do not apply to
          statements or omissions made in reliance on and in conformity
          with information relating to any Underwriter furnished in writing
          to the Company by such Underwriter expressly for use in the
          Registration Statement or the Prospectus, as they may be amended
          or supplemented. 

                         (c)  Since the respective dates as of which
          information is given in the Registration Statement and the
          Prospectus, as they may be amended or supplemented, there has not
          been any material adverse change in the management, business,
          properties, financial condition or results of operations of the
          Company and its subsidiaries taken as a whole, and there has not
          been any material transaction entered into by the Company or its
          subsidiaries, other than transactions in the ordinary course of
          business and transactions set forth in or contemplated by the
          Registration Statement and the Prospectus, as they may be amended
          or supplemented.  The Company and its subsidiaries have no
          material contingent obligation which is not disclosed in the
          Registration Statement and the Prospectus, as they may be amended
          or supplemented.

                         (d)  Any Incorporated Documents filed and incorpo-
          rated by reference prior to the Closing Date will, when they are
          filed with the Commission, conform in all material respects with
          the requirements of the Exchange Act and the Exchange Act Rules
          and Regulations.

                         (e)  The Company has full corporate power and
          authority to enter into this Agreement.  This Agreement has been
          duly authorized, executed and delivered by the Company and is a
          valid and binding agreement of the Company enforceable against it
          in accordance with its terms.

                         (f)  The consummation of the transactions contem-
          plated by this Agreement and the fulfillment of its terms will
          not result in a breach of any of the terms or provisions of, or 
          constitute a default under, any indenture, mortgage, deed of
          trust, or other material agreement or instrument to which the
          Company is now a party.

                         (g)  The outstanding shares of Common Stock have
          been, and the Shares to be issued and sold by the Company upon
          such issuance will be, duly authorized, validly issued, fully
          paid and nonassessable and will not be subject to any preemptive
          or similar right; and the Rights will be validly issued.

                         (h)  The description of the Common Stock in the
          Registration Statement and the Prospectus, as they may be amended
          or supplemented, is, and at the Closing Date and, if later, the
          Option Closing Date, will be, complete and accurate in all
          material respects.  Except for shares issuable under the
          Company's Automatic Dividend Reinvestment and Stock Purchase
          Plan, the Minnesota Power and Affiliated Companies Employee Stock
          Purchase Plan or any compensation plan disclosed in the Company's
          Proxy Statement with respect to the Company's [     ] Annual 
                                                         -----
          Meeting of Shareholders (collectively referred to as the "Stock
          Purchase and Compensation Plans"), the Company does not have
          outstanding, and at the Closing Date and, if later, the Option
          Closing Date, will not have outstanding, any options to purchase,
          or any rights or warrants to subscribe for, or any securities or
          obligations convertible into, or any contracts or commitments to
          issue or sell, any shares of Common Stock, any shares of capital
          stock of any subsidiary or any such warrants, convertible
          securities or obligations.

                         (i)  The Company has filed a Petition for Certif-
          ication of Capital Structure with the Minnesota Public Utilities
          Commission ("Minnesota Commission") pursuant to the Minnesota
          Public Utilities Act with respect to the issuance and sale by the
          Company of the Shares.  The Minnesota Commission has entered an
          authorizing order approving the capital structure including the
          issuance and sale of the Shares.  Apart from such authorizing
          order of the Minnesota Commission, no consent, approval, authori-
          zation or order of, or any filing or declaration with, any court
          or governmental agency or body is required for the consummation
          by the Company of the transactions on its part herein contem-
          plated, except such as have been obtained under the Act or the
          Rules and Regulations and such as may be required under state
          securities or "Blue Sky" laws or the by-laws and rules of the
          National Association of Securities Dealers, Inc. (the "NASD") in
          connection with the purchase and distribution by the Underwriters
          of the Shares.

                         (j)  The Company is duly registered as a transfer
          agent within the meaning of the Exchange Act with respect to the
          Common Stock and is in compliance with the Exchange Act Rules and
          Regulations with respect to its activities as transfer agent.

                         (k)  Neither the Company nor any of its directors,
          officers or controlling persons has taken, directly or
          indirectly, any action intended, or which might reasonably be
          expected, to cause or result, under the Act or otherwise, in, or
          which has constituted, stabilization or manipulation of the price
          of any security of the Company to facilitate the sale or resale
          of the Shares.

                         (l)  No holder of securities of the Company has
          rights to the registration of any securities of the Company
          because of the filing of the Registration Statement.

                    5.   Agreements of the Company.  
                         -------------------------

                         (a)  The Company will not file any amendment
          or supplement to the Registration Statement or the Prospectus
          unless a copy has first been submitted to the Underwriters a
          reasonable time before its filing and the Underwriters have not
          reasonably objected to it in writing within a reasonable time
          after receiving the copy.

                         (b)  The Company will promptly advise the
          Underwriters (i) of the initiation or threatening of any proceed-
          ings for, or receipt by the Company of any notice with respect
          to, the suspension of the qualification of the Shares for sale in
          any jurisdiction or the issuance of any order by the Commission
          suspending the effectiveness of the Registration Statement and
          (ii) of receipt by the Company or any representative or attorney
          of the Company of any other communication from the Commission
          relating to the Company, the Registration Statement, any prelimi-
          nary prospectus or the Prospectus or to the transactions contem-
          plated by this Agreement.  The Company will make every reasonable
          effort to prevent the issuance of an order suspending the effec-
          tiveness of the Registration Statement and, if any such order is
          issued, to obtain its lifting as soon as possible. 

                         (c)  The Company will furnish to the Underwriters
          without charge one signed copy of the Registration Statement and
          of any amendments thereto (including all exhibits filed with any
          such document) and as many conformed copies of the Registration
          Statement as each of the Underwriters may reasonably request.

                         (d)  During such period as a prospectus is re-
          quired by law to be delivered by the Underwriters or a dealer,
          the Company will deliver, without charge, to the Underwriters and
          to dealers, at such office or offices as the Underwriters may
          designate, as many copies of the Prospectus as each of the
          Underwriters may reasonably request, and, during such period (not
          exceeding nine months) after the Effective Date if any event
          occurs as a result of which it is necessary to amend or supple-
          ment the Prospectus in order to make the statements in it, in the
          light of the circumstances existing when the Prospectus is
          delivered to a purchaser, not misleading in any material respect,
          or if during such period it is necessary to amend or supplement
          the Prospectus to comply with the Act or Rules and Regulations,
          the Company will promptly prepare, submit to the Underwriters,
          file, subject to Section 5(a),with the Commission and deliver,
          without charge, to each of the Underwriters and to dealers (whose
          names and addresses the Underwriters will furnish to the Company)
          to whom Shares may have been sold by the Underwriters, and to
          other dealers on request, amendments or supplements to the
          Prospectus so that the statements in the Prospectus, as so
          amended or supplemented, will not, in the light of the
          circumstances existing when the Prospectus is delivered to a
          purchaser, be misleading in any material respect and will comply
          with the Act and the Rules and Regulations; provided, however,
          that should such event relate solely to the activities of any of
          the Underwriters, then such Underwriter will assume the expense
          of preparing and furnishing any such amendment or supplement.  In
          case the Underwriters are required to deliver a Prospectus after
          the expiration of nine months from the Effective Date, the
          Company, upon the request of any of the Underwriters, will
          furnish to such Underwriter, at the expense of such Underwriter,
          a reasonable quantity of an amendment or supplement complying
          with Section 10(a) of the Act.  Delivery by the Underwriters of
          any such amendments or supplements to the Prospectus will not
          constitute a waiver of any of the conditions in Section 6.

                         (e)  The Company will make generally available to
          the Company's security holders, as soon as practicable but in no
          event later than the last day of the 15th full calendar month 
          following the calendar quarter in which the Effective Date falls,
          an earnings statement satisfying the provisions of Section 11(a)
          of the Act and Rule 158 of the Rules and Regulations.

                         (f)  The Company will take such actions as the
          Underwriters reasonably designate in order to qualify the Shares
          for offer and sale under the securities or "Blue Sky" laws of
          such jurisdictions as the Underwriters reasonably designate.

                         (g)  The Company will pay, or reimburse if paid by
          the Underwriters, whether or not the transactions contemplated by
          this Agreement are consummated or this Agreement is terminated,
          all costs and expenses incident to the performance of the obliga-
          tions of the Company under this Agreement, including costs and
          expenses relating to (i) the preparation, printing and filing of
          the Registration Statement and exhibits thereto, each preliminary
          prospectus, the Prospectus, all amendments and supplements to the
          Registration Statement and the Prospectus, except as provided in
          Section 5(d), (ii) the preparation and delivery of certificates
          representing the Shares, (iii) the registration or qualification
          of the Shares for offer and sale under the securities or "Blue
          Sky" laws of the jurisdictions referred to in Section 5(f) and
          the determination of the legality of the Shares for investment,
          including the reasonable fees and disbursements of counsel for
          the Underwriters (not to exceed $10,000) in that connection, and
          the preparation and printing of preliminary and supplemental
          "Blue Sky" memoranda and legal investment memoranda, (iv) except
          as provided in Section 5(d), the furnishing (including costs of
          shipping and mailing) to the Underwriters and to dealers of
          copies of the Registration Statement, each preliminary prospec-
          tus, the Prospectus, and all amendments or supplements to the
          Prospectus, and of the other documents required by this Section 5
          to be so furnished, (v) all transfer taxes, if any, with respect
          to the sale and delivery of the Shares by the Company to the
          Underwriters, (vi) the listing of the Shares on the New York
          Stock Exchange,  (vii) any filings required to be made by the
          Underwriters with the NASD, including the reasonable fees and
          disbursements of counsel for the Underwriters in that connection,
          and (viii) the transfer agent for the Shares.

                         (h)  During the period of two years commencing on
          the Effective Date, the Company will furnish to each Underwriter
          who may so request copies of such financial statements and other
          periodic and special reports as the Company may from time to time
          distribute generally to the holders of any class of its capital
          stock, and will furnish to each Underwriter who may so request a
          copy of each annual or other report it will be required to file
          with the Commission.

                         (i)  The Company will not at any time, directly or
          indirectly, take any action intended, or which might reasonably
          be expected, to cause or result in, or which will constitute,
          stabilization of the price of the shares of Common Stock to
          facilitate the sale or resale of any of the Shares.

                         (j)  Unless otherwise agreed to in writing by the
          Company and the Underwriters, the Company will not for a period
          of [  ] days after the commencement of public offering of the 
              --
          Shares sell or otherwise dispose of any shares of Common Stock,
          rights to acquire shares of Common Stock or securities
          convertible into shares of Common Stock other than to the
          Underwriters pursuant to this Agreement and other than in
          connection with the Stock Purchase and Compensation Plans.

                    6.   Conditions of the Underwriters' Obligation.  The 
                         ------------------------------------------
          obligation of each  Underwriter to purchase the Shares is subject
          to the accuracy, on the date of this Agreement and on the Closing 
          Date and, if later, the Option Closing Date, of the
          representations of the Company in this Agreement, to the accuracy
          and completeness of all statements made by the Company or any of
          its officers in any certificate delivered to the Underwriters or
          their counsel pursuant to this Agreement, to performance by the
          Company of its obligations under this Agreement and to each of
          the following additional conditions:

                         (a)  All filings required by Rule 424 of the Rules
          and Regulations must have been made.

                         (b)  No stop order suspending the effectiveness of
          the Registration Statement may be in effect and no proceedings
          for such purpose may be pending before or threatened by the
          Commission and any requests for additional information on the
          part of the Commission (to be included in the Registration
          Statement or the Prospectus or otherwise) must have been complied
          with.

                         (c)  Since the respective dates as of which such
          information is given in the Registration Statement and the
          Prospectus, as they may be amended or supplemented, (i) there
          must not have been any material change in the capital stock or
          long-term debt of the Company and its subsidiaries, taken as a
          whole, (ii) there must not have been any material adverse change
          in the management, business, properties, financial condition, or
          results of operations of the Company and its subsidiaries, taken
          as a whole, other than transactions in the ordinary course of
          business and transactions set forth in or contemplated by the
          Prospectus, and (iii) there must not have occurred any event that
          makes untrue or incorrect in any material respect any statement
          or information contained in the Prospectus or that is not re-
          flected in the Prospectus but should be reflected in it in order
          to make the statements or information in it not misleading in any
          material respect; and in the judgment of the Underwriters, any
          such development referred to in clause (i), (ii) or (iii) makes
          it impracticable or inadvisable to consummate the sale and
          delivery of the Shares by the Underwriters at the initial public
          offering price.

                         (d)  The Underwriters must receive on the Closing
          Date and, with respect to the Option Shares, on the Option
          Closing Date, a certificate, dated such date, of the chief execu-
          tive officer, the chief operating officer or the chief financial
          officer of the Company certifying that (i) the signer has care-
          fully examined the Registration Statement and the Prospectus
          (including any Incorporated Documents) and this Agreement, (ii)
          the representations of the Company in this Agreement are accurate
          on and as of the date of the certificate, (iii) there has not
          been any material adverse change in the management, business,
          properties, financial condition or results of operations of the
          Company and its subsidiaries, taken as a whole, other than
          transactions in the ordinary course of business and transactions
          set forth in or contemplated in the Prospectus, (iv) to the
          knowledge of such officer, no order suspending the effectiveness
          of the Registration Statement or prohibiting the sale of the
          Shares has been issued and no proceedings for such purpose are
          pending before or threatened by the Commission, (v) there has
          been no document required to be filed under the Exchange Act and
          the Exchange Act Rules and Regulations that upon such filing
          would be deemed to be an Incorporated Document that has not been
          so filed, and (vi) the Company has performed all agreements that
          this Agreement requires it to perform by the Closing Date.

                         (e)  The Underwriters must receive on the Closing
          Date and, with respect to the Option Shares, the Option Closing
          Date, opinions dated the Closing Date substantially in the form
          of Annex B-1 and B-2 to this Agreement from Reid & Priest LLP,
          counsel to the Company, and Philip R. Halverson, Esq., general
          counsel of the Company, respectively.

                         (f)  The Underwriters must receive on the Closing
          Date from Morrison Cohen Singer & Weinstein, LLP, their counsel,
          an opinion dated the Closing Date and, with respect to the Option
          Shares, the Option Closing Date, with respect to the Company, the
          Shares, the Registration Statement, the Prospectus, this
          Agreement and the form and sufficiency of all proceedings taken
          in connection with the sale and delivery of the Shares.  Such
          opinion and proceedings will be satisfactory in all respects to
          the Underwriters.  The Company must have furnished to such
          counsel such documents as they may reasonably request for the
          purpose of enabling them to render such opinion.

                         (g)  On the Closing Date and, with respect to the
          Option Shares, the Option Closing Date, Price Waterhouse LLP must
          furnish to the Underwriters a letter, addressed to the
          Underwriters and in form and substance reasonably satisfactory to
          the Underwriters, confirming that they are independent
          accountants with respect to the Company as required by the Act
          and the Rules and Regulations and with respect to the financial
          and other statistical and numerical information contained in the
          Registration Statement or incorporated by reference therein. 

                         (h)  Prior to the Closing Date, the Shares must be
          duly authorized for listing by the New York Stock Exchange upon
          official notice of issuance.

                    All opinions, letters, evidence and certificates
          mentioned above or elsewhere in this Agreement will comply with
          this Agreement only if they are in form and scope satisfactory to
          counsel for the Underwriters.

                    7.   Indemnification.
                         ---------------

                         (a)       The Company shall indemnify and hold
          harmless each Underwriter, the directors, officers, employees and
          agents of each Underwriter, and each person, if any, who controls
          each Underwriter, within the meaning of Section 15 of the Act or
          Section 20 of the Exchange Act, against any and all losses,
          claims, damages and liabilities, joint or several (including any
          investigation, legal or other expenses reasonably incurred in
          connection with, and any amount paid in settlement of, any
          action, suit or proceeding or any claim asserted), to which they,
          or any of them, may become subject under the Act, the Exchange
          Act or other Federal or state statutory law or regulation, at
          common law or otherwise, insofar as such losses, claims, damages
          or liabilities arise out of or are based on any untrue statement
          or alleged untrue statement of a material fact contained in any
          preliminary prospectus, the Registration Statement or the Pro-
          spectus or any amendment or supplement to the Registration
          Statement or the Prospectus (including any Incorporated
          Document), or the omission or alleged omission to state in it a
          material fact required to be stated in it or necessary to make
          the statements in it not misleading; provided, however, that the
          Company shall not be liable to the extent that such loss, claim,
          damage, or liability arises from the sale of the Shares in the
          public offering to any person by any Underwriter and is based on
          an untrue statement or omission or alleged untrue statement or
          omission (i) made in reliance on and in conformity with informa-
          tion furnished in writing to the Company by such Underwriter
          expressly for use in the document or (ii) in a preliminary pro-
          spectus if the Prospectus corrects the untrue  statement or
          omission or alleged untrue statement or omission which is the
          basis of the loss, claim, damage or liability for which indemni-
          fication is sought and a copy of the Prospectus was not sent or
          given to such person at or before the confirmation of the sale to
          such person in any case where such delivery is required by the
          Act, unless such failure to deliver the Prospectus was a result
          of noncompliance by the Company with Section 5(d).  This
          indemnity agreement shall be in addition to any liability that
          the Company might otherwise have.

                         (b)  Each Underwriter shall indemnify and hold
          harmless the Company, its officers and directors, and each
          person, if any, who controls any thereof within the meaning of
          Section 15 of the Act or Section 20 of the Exchange Act, to the
          same extent as the foregoing indemnity from the Company to each
          Underwriter, but only insofar as losses, claims, damages or
          liabilities arise out of or are based on any untrue statement or
          omission or alleged untrue statement or omission made in or in
          reliance on and in conformity with information furnished in
          writing to the Company by such Underwriter expressly for use in
          preparation of the documents in which the statement or omission
          is made or alleged to be made.  The Company acknowledges that for
          all purposes of this Agreement, the amounts of the selling
          commission and reallowance set forth in the Prospectus and 
          [                        ] constitute the only information 
           -----------------------
          furnished in writing to the Company by  any Underwriter expressly
          for use in the Registration Statement, any preliminary prospectus
          or the Prospectus.  This indemnity agreement shall be in addition
          to any liability that the Underwriters might otherwise have.

                         (c)  Any party that proposes to assert the right
          to be indemnified under this Section 7 shall, promptly after
          receipt of notice of commencement of any action against such
          party in respect of which a claim is to be made against an
          indemnifying party or parties under this Section 7, notify in
          writing each such indemnifying party of the commencement of such
          action, enclosing a copy of all papers served, but the omission
          so to notify such indemnifying party shall not relieve it from
          any liability that it may have to any indemnified party otherwise
          than under this Section 7.  If any such action is brought against
          any indemnified party and it notifies the indemnifying party of
          its commencement, the indemnifying party shall be entitled to
          participate in, and, to the extent that it elects by delivering
          written notice to the indemnified party promptly after receiving
          notice of the commencement of the action from the indemnified
          party, jointly with any other indemnifying party similarly
          notified, to assume the defense of the action, with counsel
          satisfactory to the indemnified party, and, after notice from the
          indemnifying party to the indemnified party of its election to
          assume the defense, the indemnifying party shall not be liable to
          the indemnified party for any legal or other expenses except as
          provided below and except for the reasonable costs of
          investigation subsequently incurred by the indemnified party in
          connection with the defense.  The indemnified party shall have
          the right to employ its counsel in any such action, but the fees
          and expenses of such counsel shall be at the expense of such
          indemnified party unless (i) the employment of counsel by the
          indemnified party has been authorized in writing by the
          indemnifying party, (ii) the indemnified party has been advised
          by such counsel employed by it that there may be legal defenses
          available to it involving potential conflict with the interests
          of an indemnifying party (in which case the indemnifying party
          shall not have the right to direct the defense of such action on
          behalf of the indemnified party) or (iii) the indemnifying party
          has not in fact employed counsel to assume the defense of such
          action within a reasonable time after receiving notice of the
          commencement of the action, in each of which cases the fees and
          expenses of counsel shall be at the expense of the indemnifying
          party or parties and all such fees and expenses shall be
          reimbursed promptly as they are incurred.  An indemnifying party
          shall not be liable for any settlement of any action or claim
          effected without its written consent or, in connection with any
          proceeding or related proceeding in the same jurisdiction, for
          the fees and expenses of more than one separate counsel for all
          indemnified parties.

                    8.   Contribution.  If recovery is not available under 
                         ------------
          the foregoing indemnification provisions of Section 7, for any
          reason other than as specified therein, the parties entitled to 
          indemnification by the terms thereof shall be entitled to contri-
          bution to liabilities and expenses, except to the extent that
          contribution is not permitted under Section 11(f) of the Act.  In
          determining the amount of contribution to which the respective
          parties are entitled, there shall be considered the relative
          benefits received by each party from the offering of the Shares
          (taking into account the portion of the proceeds of the offering
          realized by each), the parties' relative knowledge and access to
          information concerning the matter with respect to which the claim
          was asserted, the opportunity to correct and prevent any
          statement or omission, and any other equitable considerations
          appropriate under the circumstances.  The Company and the Under-
          writers agree that it would not be equitable if the amount of
          such contribution were determined by pro rata or per capita
          allocation.  No person found guilty of fraudulent misrepresenta-
          tion (within the meaning of Section 11(f) of the Act) shall be
          entitled to contribution from any person who was not guilty of
          such fraudulent misrepresentation.

                    9.   Termination.  This Agreement may be terminated by
                         -----------
          Underwriters who have agreed to purchase in the aggregate 50% or
          more of the Firm Shares by notifying the Company at any time

                         (a)  at or before the Closing Date (or, with
          respect to the Option Shares, at or before the Option Closing
          Date) if, in the judgment of such Underwriters, payment for the
          delivery of the Shares is rendered impracticable or inadvisable
          because (i) trading in the equity securities of the Company is
          suspended by the Commission or the New York Stock Exchange, (ii)
          additional material governmental restrictions, not in force on
          the date of this Agreement, are imposed upon trading in
          securities generally or minimum or maximum prices have been
          generally established on the New York Stock Exchange or on the
          American Stock Exchange or trading in securities generally has
          been suspended or limited on either such exchange or a general
          banking moratorium has been established by Federal or New York
          authorities, or (iii) any outbreak or material escalation of
          hostilities or other calamity or crisis occurs the effect of
          which is such as to make it impracticable to market the Shares,
          or

                         (b)  at or before the Closing Date (or, with
          respect to the Option Shares, at or before the Option Closing
          Date), if any of the conditions specified in Section 6 have not
          been fulfilled when and as required by this Agreement.

                    If this Agreement is terminated pursuant to any of its
          provisions, except as otherwise provided, the Company will not be
          under any liability to any of the Underwriters and the
          Underwriters will not be under any liability to the Company,
          except that (1) if this Agreement is terminated by the
          Underwriters because of any failure or refusal on the part of the
          Company to comply with the terms of this Agreement or because any
          of the conditions in Section 6 are not satisfied, the Company
          will reimburse the Underwriters for all reasonable out-of-pocket
          expenses (including the fees and disbursements of their counsel)
          reasonably incurred by them in connection with the proposed
          purchase and sale of the Shares, and (2) if the Underwriters fail
          or refuse to purchase the Shares agreed to be purchased by them
          under this Agreement, without some reason sufficient to justify
          cancellation or termination of its obligations under this
          Agreement, they will not be relieved of liability to the Company
          for damages occasioned by their default.

                    The Company will not in any event be liable to the
          Underwriters for damages on account of loss of anticipated prof-
          its.

                    10.  Substitution of Underwriters.  If one or more of
                         ----------------------------
          the Underwriters shall, for any reason permitted hereunder,
          cancel its obligation to purchase hereunder and to take up and
          pay for the Firm Shares to be purchased by such one or more
          Underwriters, the Company shall immediately notify the remaining
          Underwriters, and  the remaining Underwriters shall have the
          right, within 24 hours of receipt of such notice, either to take
          up and pay for (in such proportion as may be agreed upon among
          them) or to substitute another underwriter or underwriters,
          satisfactory to the Company, to take up and pay for the number of
          Firm Shares that such one or more Underwriters did not purchase. 
          If one or more Underwriters shall, for any reason other than a
          reason permitted hereunder, fail to take up and pay for the Firm
          Shares to be purchased by such one or more Underwriters, the
          Company shall immediately notify the remaining Underwriters, and
          the remaining Underwriters shall be obligated to take up and pay
          for (in addition to the respective number of Firm Shares set
          forth opposite their respective names in Schedule 1), the number
          of Firm Shares that such defaulting Underwriter or Underwriters
          failed to take up and pay for, up to a number thereof equal to,
          in the case of each such remaining Underwriter, ten percent (10%)
          of the number of Firm Shares set forth opposite the name of such
          remaining Underwriter in Schedule 1, and such remaining
          Underwriters shall have the right, within 24 hours of receipt of
          such notice, either to take up and pay for (in such proportion as
          may be agreed upon among them), or to substitute another
          underwriter or underwriters, satisfactory to the Company, to take
          up and pay for, the remaining number of the Firm Shares that the
          defaulting Underwriter or Underwriters agreed but failed to
          purchase.  If any unpurchased Firm Shares still remain, then the
          Company or the Underwriters shall be entitled to an additional
          period of 24 hours within which to procure another party or
          parties, who are members of the NASD (or if not members of the
          NASD, who are not eligible for membership in the NASD and who
          agree (i) to make no sales within the United States, its
          territories or its possessions or to persons who are citizens
          thereof or residents therein and (ii) in making sales to comply
          with the NASD's Rules of Fair Practice) and satisfactory to the
          Company, to purchase or agree to purchase such unpurchased Firm
          Shares on the terms herein set forth.  In any such case, either
          the remaining Underwriters or the Company shall have the right to
          postpone the Closing Date for a period not to exceed seven full
          business days from the date agreed upon in accordance with this
          Section 10, in order that the necessary changes in the
          Registration Statement and Prospectus and any other documents and
          arrangements may be effected.  If the Underwriters and the
          Company shall fail to procure a satisfactory party or parties as
          above provided to purchase or agree to purchase such unpurchased
          Firm Shares, then the Company may either (i) require the
          remaining Underwriters to purchase the number of Firm Shares that
          they are obligated to purchase hereunder (but no more than such
          number of Firm Shares) or (ii) terminate this Agreement by giving
          prompt notice to the Underwriters.  In the event that neither the
          remaining Underwriters nor the Company has arranged for the
          purchase of such unpurchased Firm Shares by another party or
          parties as above provided and the Company has not elected to
          require the remaining Underwriters to purchase the number of Firm
          Shares that they are obligated to purchase hereunder, then this
          Agreement shall terminate without any liability on the part of
          any such Underwriter or the Company for the purchase or sale of
          any Shares under this Agreement.  Any action taken pursuant to
          this Section 10 shall not relieve any defaulting Underwriter from
          liability in respect of any default of such Underwriters under
          this Agreement.

                    11.  Miscellaneous.  The reimbursement, indemnification
                         -------------
          and contribution agreements in Sections 5, 7, 8 and 9 and the
          representations and agreements of the Company and the Under-
          writers in this Agreement will remain in full force and effect
          regardless of any termination of this Agreement, any investiga-
          tion made by or on behalf of the Underwriters, the Company, or
          any controlling person and delivery of and payment for the
          Shares.

                    This Agreement is for the benefit of the several
          Underwriters, the Company, and their successors and assigns, and,
          to the extent expressed in this Agreement, for the benefit of
          persons controlling the several Underwriters or the Company,
          directors and officers of the Company and directors, officers,
          employees and agents of the several Underwriters, and their
          respective successors and assigns, and no other persons,
          partnership, association or corporation will acquire or have any
          right under or by virtue of this Agreement.  The term "successors
          and assigns" does not include any purchaser of Shares from any of
          the Underwriters merely because of such purchase.

                    All notices and communications under this Agreement
          shall be in writing and mailed or delivered, by messenger,
          facsimile transmission or otherwise, to the Underwriters at 
          [                                ] Attention: Corporate Finance 
           --------------------------------
          Department, and to the Company, at 30 West Superior Street,
          Duluth, Minnesota 55802, Attention: Chief  Financial Officer. 
          Any such notice or communication shall take effect upon receipt
          thereof.

                    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
          ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
          TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE.

                    This Agreement may be signed in two or more
          counterparts with the same effect as if the signatures thereto
          and hereto were upon the same instrument.

                    This Agreement may not be amended or otherwise modified
          or any provision hereof waived except by an instrument in writing
          signed by the Underwriters and the Company.


     

                    Please confirm that the foregoing correctly sets forth
          the agreement between us.

                                        Very truly yours,

                                        MINNESOTA POWER & LIGHT COMPANY


                                        By:                                 
                                            -------------------------------
                                               Name:
                                               Title:


          Confirmed:

          [                     ]
           ---------------------


          By:                                             
              --------------------------------------------
                 Name:
                 Title:

          [                     ]
           ---------------------


          By:                                             
              --------------------------------------------
                 Name:
                 Title:

          [                     ]
           ---------------------


          By:                                             
              --------------------------------------------
                 Name:
                 Title:








                        UNDERWRITING AGREEMENT SIGNATURE PAGE


     

                                                                    ANNEX A


                        FORM OF PRICE DETERMINATION AGREEMENT


                                                  [              , 199 ]
                                                   --------------     -


          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          Dear Sirs:

                    Reference is made to the Underwriting Agreement, dated
          [              , 199 ] (the "Underwriting Agreement"), among
           --------------     -
          Minnesota Power & Light Company, a public utility incorporated
          under the laws of Minnesota (the "Company"), and you as the
          Underwriters (collectively, the "Underwriters").  The
          Underwriting Agreement provides for the purchase by the several
          Underwriters from the Company subject to the terms and conditions
          set forth therein, of an aggregate of [               ] shares of
                                                 ---------------
          the Company's Common Stock, without par value ("Common Stock"),
          and the preferred share purchase rights attached thereto (the
          "Rights") (collectively referred to as the "Firm Shares").
          Subject to the terms and conditions set forth in the Underwriting
          Agreement, the Company has also granted to the Underwriters an
          option (the "Option") to purchase up to an additional 
          [               ] shares of Common Stock and the Rights attached
           ---------------
          thereto (collectively referred to as the "Option Shares").  This
          Agreement is the Price Determination Agreement referred to in the
          Underwriting Agreement.

                    Pursuant to Section 1 of the Underwriting Agreement,
          the undersigned agrees with the Underwriters as follows:

                    1.   The initial public offering price per share for
          the Firm Shares and, if the Option is exercised, the Option
          Shares, shall be $[       ].
                             -------

                    2.   The purchase price per share for the Firm Shares
          and, if the Option is exercised, the Option Shares to be paid by
          the several Underwriters shall be $[       ], representing an
                                              -------
          amount equal to the initial public offering price set forth
          above, less $[       ] per share.
                        -------

                    The Company represents and warrants to each of the
          Underwriters that the representations and warranties of the
          Company set forth in Section 4 of the Underwriting Agreement are
          accurate as though expressly made at and as of the date hereof.

                    As contemplated by the Underwriting Agreement, attached
          as Schedule 1 is a completed list of the several Underwriters,
          which shall be a part of this Agreement and the Underwriting
          Agreement.

                    THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
          ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
          TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE.


     

                    If the foregoing is in accordance with your
          understanding of the agreement among the Underwriters and the
          Company, please sign and return to the Company a counterpart
          hereof, whereupon this instrument along with all counterparts and
          together with the Underwriting Agreement shall be a binding
          agreement among the Underwriters and the Company in accordance
          with its terms and the terms of the Underwriting Agreement.

                                        Very truly yours,

                                        MINNESOTA POWER & LIGHT COMPANY


                                        By:                                
                                            -------------------------------
                                               Name:
                                               Title:


          Confirmed:

          [                     ]
           ---------------------


          By:                                             
              --------------------------------------------
                 Name:
                 Title:

          [                     ]
           ---------------------

          By:                                             
              --------------------------------------------
                 Name:
                 Title:

          [                     ]
           ---------------------


          By:                                             
              --------------------------------------------
                 Name:
                 Title:




                    PRICE DETERMINATION AGREEMENT SIGNATURE PAGE


     


          SCHEDULE 1

                                     UNDERWRITERS


                                                  Number of Firm
          Name of Underwriter                     Shares to be Purchased
          -------------------                     ----------------------




     
                                                                  ANNEX B-1


                         FORM OF OPINION OF REID & PRIEST LLP


                                                  [              , 199 ]
                                                   --------------     -


          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          Dear Sirs:

                    Reference is made to the sale by Minnesota Power &
          Light Company (the "Company") of an aggregate of 
          [               ] shares of its Common Stock, without par value 
           ---------------
          (the "Common Stock"), and the preferred share purchase rights
          attached thereto (the "Rights") (the Common Stock and the Rights
          being collectively referred to as the "Shares").  We advise you
          that we have acted as counsel to the Company in connection with
          such issuance and sale and have participated in the preparation
          of (a) Registration Statement No. [333-     ], as filed by the 
                                                 -----
          Company with the Securities and Exchange Commission for the
          registration of the Shares under the Securities Act of 1933, as
          amended (the "Act") (such registration statement, as amended at
          the Effective Date (as such term is defined in the Agreement
          referred to below), being hereinafter referred to as the
          "Registration Statement"); (b) the prospectus constituting part
          of the Registration Statement, as amended and supplemented by a
          prospectus supplement dated [          , 199 ], relating to the
                                       ----------     -
          Shares (such prospectus, as so amended and supplemented, being
          hereinafter referred to as the "Prospectus"); and (c) the
          Underwriting Agreement dated [          , 199 ], between the 
                                        ----------     -
          Company and you (the"Agreement").  In addition, we have reviewed
          the petition filed by the Company with the Minnesota Public
          Utilities Commission seeking authorization to issue the Shares,
          and the order issued by said Commission in response to said
          petition.

                    We have reviewed all corporate proceedings taken by the
          Company in respect of the issuance and sale of the Shares.

                    Upon the basis of our familiarity with these transac-
          tions, we are of the opinion that:

                    1.   The Shares when paid for by the Underwriters in
          accordance with the terms of the Agreement will be, duly
          authorized, validly issued, fully paid and non-assessable and
          will not be subject to any preemptive or similar right; and the
          Rights will be validly issued.

                    2.   An authorizing order has been issued by the Minne-
          sota Public Utilities Commission certifying the Company's capital
          structure and authorizing the issuance and sale of the Shares,
          and, to the best of our knowledge, said order is still in full
          force and effect; and no further approval, authorization, consent
          or order of any public board or body (other than in connection or
          in compliance with the provisions of the securities or "Blue Sky"
          laws of any jurisdiction) is legally required for the authoriza-
          tion of the issuance and sale of the Shares.

                    3.   The Registration Statement and the Prospectus
          (except as to the financial statements, statement of income and
          other financial or statistical data contained therein, upon which
          we do not pass) comply as to form in all material respects with
          the requirements of the Act and the applicable instructions,
          rules and regulations of the Securities and Exchange Commission
          thereunder; the Registration Statement has become, and at the
          date hereof  the Registration Statement is, effective under the
          Act, and, to the best of our knowledge, no proceedings for a stop
          order with respect thereto are pending or threatened under
          Section 8 of the Act.

                    4.   The statements set forth in the Prospectus under
          the captions "Description of Common Stock" and "Description of
          Preferred Share Purchase Rights," insofar as they purport to
          constitute a summary of the securities, documents and instruments
          therein described, are accurate and fairly present the
          information contained therein in all material respects.

                    5.   The Agreement has been duly and validly autho-
          rized, executed and delivered by the Company and is a valid and
          legally binding obligation of the Company.

                    In passing upon the forms of the Registration Statement
          and the Prospectus, we necessarily assume the correctness and
          completeness of the statements made or included therein by the
          Company and take no responsibility therefor, except insofar as
          such statements relate to us and as set forth in the Prospectus
          under the heading "Legal Opinions" and in paragraph 4 above.  In
          the course of the preparation by the Company of the Registration
          Statement and the Prospectus, we have had conferences with
          certain of its officers and representatives, with other counsel
          for the Company and with Price Waterhouse LLP, the independent
          certified public accountants who examined certain of the
          Company's financial statements incorporated by reference in the
          Registration Statement.  Our examination of the Registration
          Statement and the Prospectus, and our discussions in the
          above-mentioned conferences did not disclose to us any informa-
          tion which gives us reason to believe that, at the Effective
          Date, the Registration Statement contained an untrue statement of
          a material fact or omitted to state a material fact required to
          be stated therein or necessary to make the statements therein not
          misleading or that the Prospectus at the time it was filed
          electronically with the Commission pursuant to Rule 424, and the
          Prospectus, as amended or supplemented at the date hereof,
          contained or contains an untrue statement of a material fact or
          omitted or omits to state a material fact necessary in order to
          make the statements therein, in the light of the circumstances
          under which they were made, not misleading.  We do not express
          any opinion or belief as to the financial statements, statement
          of income or other financial or statistical data contained in the
          Registration Statement or in the Prospectus.

                    We are members of the New York Bar and do not hold
          ourselves out as experts on the laws of Minnesota.  As to all
          matters of Minnesota law (and as to the incorporation of the 
          Company, titles to property and franchises, upon which we do not
          pass), we have relied with your consent upon the opinion of even
          date herewith addressed to you by Philip R. Halverson, Esq., Vice
          President, General Counsel and Corporate Secretary for the
          Company.

                                        Very truly yours,


                                        REID & PRIEST LLP


     

                                                                  ANNEX B-2


                              FORM OF OPINION OF
                           PHILIP R. HALVERSON, ESQ.
                        VICE PRESIDENT, GENERAL COUNSEL
                          AND CORPORATE SECRETARY OF
                        MINNESOTA POWER & LIGHT COMPANY


                                                  [              , 199 ]
                                                   --------------     -


          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          [                    ]
           --------------------
          [                    ]
           --------------------
          [                    ]
           --------------------

          Dear Sirs:

                    Reference is made to the sale by Minnesota Power &
          Light Company (the "Company") of an aggregate of 
          [               ] shares of its Common Stock, without par value 
           ---------------
          (the "Common Stock"), and the preferred share purchase rights
          attached thereto (the "Rights") (the Common Stock and the Rights
          being collectively referred to as the "Shares").  I  advise you
          that I have acted as counsel to the Company in connection with
          such issuance and sale and have participated in the preparation
          of (a) Registration Statement No. [333-     ], as filed by the
                                                 -----
          Company with the Securities and Exchange Commission for the
          registration of the Shares under the Securities Act of 1933, as
          amended (the "Act") (such registration statement, as amended at
          the Effective Date (as such term is defined in the Agreement
          referred to below), being hereinafter referred to as the
          "Registration Statement"); (b) the prospectus constituting part
          of the Registration Statement, as amended and supplemented by a
          prospectus supplement dated [          , 199 ], relating to the 
                                       ----------     -
          Shares (such prospectus, as so amended and supplemented, being
          hereinafter referred to as the "Prospectus"); and (c) the
          Underwriting Agreement dated [          , 199 ], between the 
                                        ----------     -
          Company and you (the"Agreement").  In addition, I have reviewed
          the petition filed by the Company with the Minnesota Public
          Utilities Commission seeking authorization to issue the Shares,
          and the order issued by said Commission in response to said
          petition.

                    I have reviewed all corporate proceedings taken by the
          Company in respect of the issuance and sale of the Shares.

                    Upon the basis of my familiarity with these transac-
          tions and with the Company's properties and affairs generally, I
          am of the opinion that:

                    1.   The Shares, when paid for by the Underwriters in
          accordance with the terms of the Agreement, will be duly
          authorized, validly issued, fully paid and non-assessable and
          will not be subject to any preemptive or similar right; and the
          Rights will be validly issued.

                    2.   An authorizing order has been issued by the Minne-
          sota Public Utilities Commission certifying the Company's capital
          structure and authorizing the issuance and sale of the Shares,
          and, to the best of my knowledge, said order is still in full
          force and effect; and no further approval, authorization, consent
          or order of any public board or body (other than in connection or
          in compliance with the provisions of the securities or "Blue Sky"
          laws of any jurisdiction) is legally required for the authoriza-
          tion of the issuance and sale of the Shares.

                    3.   The Registration Statement and the Prospectus
          (except as to the financial statements, statement of income and
          other financial or statistical data contained therein, upon which
          I do not pass) comply as to form in all material respects with
          the requirements of the Act and the applicable instructions,
          rules and regulations of the Securities and Exchange Commission
          thereunder; the Registration Statement has become, and at the
          date hereof  the Registration Statement is, effective under the
          Act, and, to the best of my knowledge, no proceedings for a stop
          order with respect thereto are pending or threatened under
          Section 8 of the Act.

                    4.   The statements set forth in the Prospectus under
          the captions "Description of Common Stock" and "Description of
          Preferred Share Purchase Rights," insofar as they purport to
          constitute a summary of the securities, documents and instruments
          therein described, are accurate and fairly present the
          information contained therein in all material respects.

                    5.   The Agreement has been duly and validly autho-
          rized, executed and delivered by the Company and is a valid and
          legally binding obligation of the Company.

                    6.   The Company is a validly organized and existing
          corporation under the laws of the State of Minnesota and is duly
          qualified to do business, and is doing business, in that State.

                    7.   The Company is a public utility corporation duly
          authorized by its Articles of Incorporation to conduct the
          business which it is now conducting as set forth in the Prospec-
          tus and the Company holds valid and subsisting franchises,
          licenses and permits authorizing it to carry on the utility
          business in which it is engaged.

                    8.   Each subsidiary of the Company is a validly
          organized and existing corporation under the laws of the State of
          its incorporation and is duly qualified to do business, and is
          doing business, in such State and in each other State in which
          the failure to qualify as a foreign corporation would be material
          to the Company and its subsidiaries, taken as a whole.

                    9.   Other than as stated in the Registration Statement
          and the Prospectus there are no pending legal proceedings to
          which the Company or any subsidiary is a party or of which
          property of the Company or any subsidiary is the subject, which
          depart from the ordinary routine litigation incident to the kind
          of business conducted by the Company or any such subsidiary, and
          which is material to the Company and its subsidiaries, taken as a
          whole, and, to the best of my knowledge, no such proceedings are
          known to be contemplated by governmental authorities.

                    10.  The portions of the answers to the items of the
          Registration Statement and the portions of the information
          contained in the Prospectus, which are stated therein to have
          been made on my authority as General Counsel of the Company, have
          been reviewed by me and, as to matters of law and legal
          conclusions, are correct.

                    11.  Neither the issue and sale by the Company of the
          Shares as contemplated by the Agreement nor the consummation by
          the Company of the other transactions contemplated by the Agree-
          ment conflicts with, or results in a breach of, the charter or
          by-laws of the Company or any subsidiary or any agreement or
          instrument known to me to which the Company or any subsidiary is
          a party or by which the Company or any subsidiary is bound, any
          law or regulation or, so far as is known to me, any order or
          regulation of any court, governmental instrumentality or arbitra-
          tor.

                    12.  To the best of my knowledge, the Company is not
          currently in breach of, or in default under, any material written
          agreement or instrument to which it is a party or by which it or
          its property is bound or affected, and which breach or default is
          material to the Company and its subsidiaries, taken as a whole.

                    In passing upon the forms of the Registration Statement
          and the Prospectus, I necessarily assume the correctness and
          completeness of the statements made or included therein by the
          Company and take no responsibility therefor, except insofar as
          such statements relate to me and as set forth in the Prospectus
          under the headings "Experts" and "Legal Opinions" and in
          paragraphs 4 and 10 above.  In the course of the preparation by
          the Company of the Registration Statement and the Prospectus, I
          had conferences with certain of its officers and representatives,
          with other counsel for the Company and with Price Waterhouse LLP,
          the independent certified public accountants who examined certain
          of the Company's financial statements incorporated by reference
          in the Registration Statement.  My examination of the
          Registration Statement and the Prospectus, and my discussions in
          the above-mentioned conferences did not disclose to me any
          information which gives me reason to believe that, at the Effec-
          tive Date, the Registration Statement contained an untrue state-
          ment of a material fact or omitted to state a material fact
          required to be stated therein or necessary to make the statements
          therein not misleading or that the Prospectus at the time it was
          filed electronically with the Commission pursuant to Rule 424,
          and the Prospectus, as amended or supplemented at the date
          hereof, contained or contains an untrue statement of a material
          fact or omitted or omits to state a material fact necessary in
          order to make the statements therein, in the light of the circum-
          stances under which they were made, not misleading.  I do not
          express any opinion or belief as to the financial statements,
          statement of income or other financial or statistical data
          included in the Registration Statement or in the Prospectus.

                                             Very truly yours,



                                             Philip R. Halverson



                                                            Exhibit 5(a)

                           MINNESOTA POWER & LIGHT COMPANY
                               30 West Superior Street
                               Duluth, Minnesota  55802

          Philip R. Halverson - Vice President,
           General Counsel and Corporate Secretary


                                             May 8, 1998


          Minnesota Power & Light Company
          30 West Superior Street
          Duluth, Minnesota 55802


          Dear Sirs:

               Referring to the proposed issuance and sale by Minnesota
          Power & Light Company (Company) of not to exceed 3,000,000 shares
          of the Company's Common Stock, without par value (Stock) and the
          Preferred Share Purchase Rights attached thereto (Rights) (the
          Stock and the Rights being collectively referred to as the
          "Shares"), as contemplated in the registration statement to be
          filed by the Company on or about the date hereof with the
          Securities and Exchange Commission under the Securities Act of
          1933, as amended, I am of the opinion that:

          1.   The Company is a corporation validly organized and existing
               under the laws of the State of Minnesota.

          2.   All action necessary to make the Stock validly issued, fully
               paid and non-assessable and the Rights validly issued will
               have been taken when:

               a)   At a meeting or meetings of the Company's Board of
                    Directors (or the Executive Committee of the Board of
                    Directors) favorable action shall have been taken to
                    approve and authorize the issuance and sale of the
                    Shares and any other action necessary to the
                    consummation of the proposed issuance and sale of the
                    Shares;

               b)   The Minnesota Public Utilities Commission shall have
                    authorized the issuance and sale of the Shares;

               c)   The Stock shall have been issued and delivered for the
                    consideration contemplated in the registration
                    statement; and

               d)   The Rights shall have been issued in accordance with
                    the terms of the Rights Agreement dated as of July 24,
                    1996 between the Company and the Corporate Secretary of
                    the Company, as Rights Agent.

               I hereby consent to the use of my name in such registration
          statement and to the use of this opinion as an exhibit thereto.


                                             Sincerely,

                                             /s/ Philip R. Halverson

                                             Philip R. Halverson


                                                               Exhibit 5(b)
                                  REID & PRIEST LLP
                                 40 West 57th Street
                              New York, N.Y.  10019-4097
                                Telephone 212 603-2000
                                   Fax 212 603-2001


                                             New York, New York
                                             May 8, 1998


          Minnesota Power & Light Company
          30 West Superior Street
          Duluth, Minnesota 55802


          Dear Sirs:

                    Referring to the proposed issuance and sale by
          Minnesota Power & Light Company ("Company") of not to exceed
          3,000,000 shares of the Company's Common Stock, without par value
          ("Stock") and the Preferred Share Purchase Rights attached
          thereto ("Rights") (the Stock and the Rights being collectively
          referred to as the "Shares"), as contemplated in the registration
          statement to be filed by you on or about the date hereof with the
          Securities and Exchange Commission under the Securities Act of
          1933, as amended, we are of the opinion that:

                    1.   The Company is a corporation validly organized and
          existing under the laws of the State of Minnesota.

                    2.   All action necessary to make the Stock validly
          issued, fully paid and non-assessable and the Rights validly
          issued will have been taken when:

                         a)   At a meeting or meetings of the Company's
          Board of Directors (or the Executive Committee of the Board of
          Directors) favorable action shall have been taken to approve and
          authorize the issuance and sale of the Shares and any other
          action necessary to the consummation of the proposed issuance and
          sale of the Shares;

                         b)   The Minnesota Public Utilities Commission
          shall have authorized the issuance and sale of the Shares;

                         c)   The Stock shall have been issued and
          delivered for the consideration contemplated in the registration
          statement; and

                         d)   The Rights shall have been issued in
          accordance with the terms of the Rights Agreement dated as of
          July 24, 1996 between the Company and the Corporate Secretary of
          the Company, as Rights Agent.

                    We are members of the New York Bar and do not hold
          ourselves out as experts on the laws of the State of Minnesota. 
          As to all matters of Minnesota law, we have relied with your
          consent upon an opinion of even date herewith addressed to you by
          Philip R. Halverson, Esq., Vice President, General Counsel and
          Secretary to the Company.

                    We hereby consent to the use of our name in such
          registration statement and to the use of this opinion as an
          exhibit thereto.


                                             Very truly yours,

                                             /s/ REID & PRIEST LLP

                                             REID & PRIEST LLP




                                                              EXHIBIT 23(A)


                          CONSENT OF INDEPENDENT ACCOUNTANTS


          We hereby consent to the incorporation by reference in the
          Prospectus constituting part of this Registration Statement on
          Form S-3 of our report dated January 26, 1998, which appears on
          page 32 of the 1997 Annual Report to Shareholders of Minnesota
          Power & Light Company, which is incorporated by reference in
          Minnesota Power & Light Company's Annual Report on Form 10-K for
          the year ended December 31, 1997.  We also consent to the
          incorporation by reference of our report on the Financial
          Statement Schedule, which appears on page 31 of such Annual
          Report on Form 10-K.  We also consent to the reference to us
          under the heading "Experts" in such Prospectus.


          /s/ PRICE WATERHOUSE LLP
          ------------------------
          PRICE WATERHOUSE LLP
          Minneapolis, Minnesota
          May 7, 1998