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.
                                 Filed Pursuant to Rule 424(b)(4)
                                 Registration Nos. 333-01035-01 and 333-01035



                            3,000,000 Preferred Securities

                                    MP&L CAPITAL I
           8.05% Cumulative Quarterly Income Preferred Securities (QUIPSSM)*
                (Liquidation preference $25.00 per Preferred Security)
       Guaranteed to the extent MP&L Capital I has funds as set forth herein by

                           MINNESOTA POWER & LIGHT COMPANY

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

             The 8.05% Cumulative Quarterly Income Preferred Securities (the
     "Preferred Securities") offered hereby are being issued by and represent 
     undivided preferred beneficial interests in the assets of MP&L Capital I
     ("MP&L Capital"), a statutory business trust created under the laws of the
     State of Delaware. Minnesota Power & Light Company (the "Company"), a 
     Minnesota corporation, will be the owner of the undivided common beneficial
     interests in the assets represented by common securities of MP&L Capital 
     (the "Common Securities", together with the Preferred Securities herein 
     referred to as the "Trust Securities").  The Bank of New York is the 
     Property Trustee of MP&L Capital.  MP&L Capital exists for the sole purpose
     of issuing the Preferred Securities and the Common Securities and investing
     the proceeds thereof in 8.05% Junior Subordinated Debentures, Series A, 
     Due 2015, to be issued by the Company (the "Junior Subordinated 
     Debentures") in an aggregate principal amount equal to the aggregate 
     liquidation preference amount of the Trust Securities.  The Preferred 
     Securities will have a preference under certain circumstances with respect 
     to cash distributions and amounts payable on liquidation, redemption or 
     otherwise over the Common Securities.  See "Description of the Preferred 
     Securities -- Subordination of Common Securities."

                                             (cover continued on following page)

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

        See "Risk Factors," beginning on page 6, for certain information
     relevant to an investment in the Preferred Securities, including the period
     and circumstances during and under which payment of distributions on the
     Preferred Securities may be deferred and certain related federal income tax
     consequences.

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

     THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES  
        AND EXCHANGE COMMISSION OR BY 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.

                                ---------------------
                  
                          Initial
                          Public  
                          Offering        Underwriting     Proceeds to
                          Price           Commission(1)    Company(2)(3)
                          --------        -------------    -------------

     Per Preferred 
       Security......      $25.00              (2)            $25.00
     Total...........   $75,000,000            (2)         $75,000,000

     --------------------- 
     (1)  MP&L Capital and the Company have agreed to indemnify the several
          Underwriters against certain liabilities, including liabilities under
          the Securities Act of 1933, as amended. See "Underwriting."
     (2)  In view of the fact that the entire proceeds of the sale of the
          Preferred Securities will be used to purchase the Junior Subordinated
          Debentures, the Underwriting Agreement provides that the Company will
          pay to the Underwriters, as compensation for their arranging the
          investment therein of such proceeds, $0.7875 per Preferred Security
          (or $2,362,500 in the aggregate).  See "Underwriting."
     (3)  Expenses of the offering, which are payable by the Company, are
          estimated to be $275,000.

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

          The Preferred Securities offered hereby are offered severally by the
     Underwriters, as specified herein, and subject to receipt and acceptance by
     them and subject to their right to reject any order in whole or in part. 
     It is expected that delivery of the Preferred Securities will be made only
     in book-entry form through the facilities of DTC on or about March 20, 
     1996 against payment therefor in immediately available funds.

     ------------
     *QUIPS is a service mark of Goldman, Sachs & Co.

     GOLDMAN, SACHS & CO.                             PAINEWEBBER INCORPORATED

                  The date of this Prospectus is March 15, 1996.

     

     (cover continued)

        Registered owners (the "Holders") of the Preferred Securities will be
     entitled to receive preferential cumulative cash distributions accruing
     from the date of original issuance and payable quarterly in arrears on the
     last day of March, June, September and December of each year, commencing
     March 31, 1996, at the per annum rate of 8.05% of the liquidation 
     preference amount of $25 per Preferred Security (together, at any given 
     time, with any accrued but unpaid such amounts and interest thereon, if 
     any, "Distributions").  Interest on the Junior Subordinated Debentures is
     the sole source of income for MP&L Capital from which payment of 
     Distributions on the Preferred Securities can be made.  The Company has 
     the right to defer payments of interest on the Junior Subordinated 
     Debentures by extending the interest payment period thereon at any time 
     or from time to time for up to 20 consecutive quarters with respect to 
     each deferral period (each, an "Extension Period"), provided that any such
     Extension Period may not extend beyond the maturity of the Junior 
     Subordinated Debentures.  Upon the termination of any Extension Period and 
     the payment of all amounts then due, including interest on deferred 
     interest payments, the Company may select a new Extension Period, subject
     to the above requirements.

        If interest payments on the Junior Subordinated Debentures are deferred,
     Distributions on the Preferred Securities will also be deferred and the
     Company will not be permitted, subject to certain exceptions set forth
     herein, to (i) declare or pay dividends or distributions on (other than
     dividends or distributions paid in shares of Common Stock of the Company)
     or redeem, purchase, acquire or make a liquidation payment with respect to,
     any of its capital stock, or (ii) make any payment of principal of,
     interest or premium, if any, on, or repay, repurchase or redeem any
     indebtedness that is pari passu with the Junior Subordinated Debentures
     (including other Debt Securities, as defined herein) or make any guarantee
     payment with respect to the foregoing.  During an Extension Period,
     quarterly Distributions on the Preferred Securities will continue to accrue
     and Distributions that are in arrears will bear interest on the amount
     thereof at the per annum rate of 8.05% (to the extent permitted by 
     applicable law, compounded quarterly), and Holders of Preferred Securities
     will be required to accrue income for United States federal income tax 
     purposes.  See "Description of the Junior Subordinated Debentures -- Option
     to Extend Interest Payment Period" and "Certain United States Federal 
     Income Tax Consequences -- Potential Extension of Interest Payment Period 
     and Original Issue Discount."    Any Extension Period with respect to
     payment of interest on the Junior Subordinated Debentures, other Debt 
     Securities (as defined herein) or on any similar securities will apply to
     all such securities and will also apply to Distributions with respect to
     the Preferred Securities and all other securities with terms substantially
     the same as the Preferred Securities.  Based upon the Company's current
     financial condition and, in light of the restriction on payment of
     dividends on the Company's securities during an Extension Period, the
     Company believes that an extension of a distribution payment period on the
     Preferred Securities is currently unlikely and has no current intention to
     cause such an extension.  See "Description of the Preferred Securities --
     Distributions."

        The payment of Distributions and payments on liquidation of MP&L Capital
     or the redemption of Preferred Securities, in each case out of moneys held
     by MP&L Capital as set forth below, are guaranteed by the Company to the
     extent MP&L Capital has sufficient funds available to make such payments
     (the "Guarantee").  See "Description of the Guarantee."  If the Company
     fails to make interest payments on the Junior Subordinated Debentures held
     by MP&L Capital, MP&L Capital will have insufficient funds to pay
     Distributions on the Preferred Securities.  The Guarantee does not cover
     payment of Distributions when MP&L Capital does not have sufficient funds
     to pay such Distributions. In such event, the remedy of a Holder of
     Preferred Securities would be enforcement of the rights of MP&L Capital
     under the Junior Subordinated Debentures held by MP&L Capital.  See
     "Description of the Preferred Securities -- Voting Rights."  The Company's
     obligations under the Guarantee are subordinate and junior in right of
     payment to Senior Indebtedness of the Company except any liabilities that
     may be made pari passu expressly by their terms.  The Company has agreed in
     an Agreement as to Expenses and Liabilities (the "Expense Agreement") to
     provide funds to MP&L Capital as needed to pay obligations of MP&L Capital
     to parties other than Holders of Trust Securities.  The Junior Subordinated
     Debentures and the Guarantee, together with the obligations of the Company
     with respect to the Preferred Securities under the Indenture, the Trust
     Agreement (each as defined herein) and the Expense Agreement constitute a
     full and unconditional guarantee of the Preferred Securities by the
     Company.

         The Preferred Securities are subject to mandatory redemption upon
     repayment of the Junior Subordinated Debentures at maturity or upon their
     earlier redemption.  See "Description of the Preferred Securities --
     Redemption Procedures." The Company will have the option at any time on or
     after March 20, 2001, to redeem the Junior Subordinated Debentures, in
     whole or in part.  The Company also will have the option, upon the
     occurrence and during the continuation of a Special Event (as defined
     herein), (i) to redeem at any time the Junior Subordinated Debentures, in
     whole but not in part, which will result in the redemption of all the Trust
     Securities by MP&L Capital or (ii) to cause the termination of MP&L Capital
     and, in connection therewith, after satisfaction of creditors of MP&L
     
     

     (cover continued)

     Capital, if any, to cause the distribution of Junior Subordinated
     Debentures to the Holders of Preferred Securities and the Common
     Securities.  Any redemption of Trust Securities by MP&L Capital will be in
     amounts having an aggregate liquidation preference amount equal to the
     aggregate principal of Junior Subordinated Debentures to be redeemed and
     will be at a redemption price equal to 100% of such liquidation preference
     amount, plus accrued and unpaid Distributions, if any, to the redemption
     date (the "Redemption Price").  Each class of the Trust Securities will be
     redeemed in proportion to the percentage they represent of all the Trust
     Securities.  See "Description of the Junior Subordinated Debentures --
     Optional Redemption."

        The Junior Subordinated Debentures are subordinate and junior in right
     of payment to all Senior Indebtedness (as defined herein) of the Company.
     The terms of the Junior Subordinated Debentures place no limitation on the
     amount of Senior Indebtedness that may be incurred by the Company.  As of
     December 31, 1995, the Company had approximately $790 million of principal
     amount of indebtedness for borrowed money and capital lease obligations
     constituting Senior Indebtedness (as defined herein).   See "Description of
     the Junior Subordinated Debentures -- Subordination" and "Description of
     the Preferred Securities."

        In the event of the liquidation of MP&L Capital, the Holders of the
     Trust Securities will be entitled to receive either (i) Junior Subordinated
     Debentures in an aggregate principal amount of $25 per Preferred Security
     or (ii) a liquidation preference amount of $25 per Preferred Security, plus
     accrued and unpaid Distributions thereon to the date of payment, subject to
     certain limitations. See Description of the "Preferred Securities --
     Liquidation Distribution upon Termination."

        Application will be made to list the Preferred Securities on the New
     York Stock Exchange (the "NYSE").

        The Preferred Securities will be represented by global certificates
     registered in the name of The Depository Trust Company (the "DTC") or its
     nominee.  Beneficial interests in the Preferred Securities will be shown
     on, and transfers thereof will be effected only through, records maintained
     by participants in DTC.  Except as described herein, Preferred Securities
     in certificated form will not be issued in exchange for the global
     certificates.  See "Description of the Preferred Securities -- Book-Entry
     Only Issuance - The Depository Trust Company."


        IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR
     EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE
     PREFERRED SECURITIES OFFERED HEREBY AT LEVELS ABOVE THOSE WHICH MIGHT
     OTHERWISE PREVAIL IN THE OPEN MARKET.  SUCH TRANSACTIONS MAY BE EFFECTED ON
     THE NEW YORK STOCK EXCHANGE, IN THE OVER-THE-COUNTER MARKET OR OTHERWISE.
     SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
     
     

                                AVAILABLE INFORMATION

          The Company is subject to the informational requirements of the
     Securities Exchange Act of 1934 (the "1934 Act") and, in accordance
     therewith, files reports, proxy statements and other information with the
     Securities and Exchange Commission (the "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 Company's Common Stock is
     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, certain of
     the Company's preferred stocks are listed on the American Stock Exchange.
     Reports and other information concerning the Company may be inspected and
     copied at the office of such Exchange at 86 Trinity Place, New York, New
     York.

          No separate financial statements of MP&L Capital are included herein.
      The Company considers that such financial statements would not be material
     to Holders of the Preferred Securities because the Company is a reporting
     company under the 1934 Act and MP&L Capital has no independent operations,
     but exists for the sole purpose of issuing the Trust Securities and holding
     as trust assets the Junior Subordinated Debentures.

          MP&L Capital intends not to file separate reports under the 1934 Act
     but must apply for and be granted relief by the Commission to avoid the
     requirement to file such reports.  The Junior Subordinated Debentures and
     the Guarantee, together with the obligations of the Company with respect to
     the Preferred Securities under the Indenture, the Trust Agreement and the
     Expense Agreement constitute a full and unconditional guarantee of the
     Preferred Securities by the Company.  See "Description of the Junior
     Subordinated Debentures -- Additional Interest" and "Description of the
     Guarantee -- Events of Default."

                   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, 1994 (the "Company 1994 10-K") except for Items 7, 8
               and 14(a)(1) thereof;

          2.   The Company's Quarterly Reports on Form 10-Q for the quarters
               ended March 31, 1995, June 30, 1995 and September 30, 1995;

          3.   The Company's Current Reports on Form 8-K dated January 5, 1995,
               February 23, 1995, February 27, 1995 (as amended on Form 8-K/A
               dated May 25, 1995), March 3, 1995, July 12, 1995 (as amended on
               Form 8-K/A dated September 8, 1995), October 6, 1995, January 8,
               1996, February 16, 1996 and March 11, 1996.

          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 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 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.
     
     

                                  PROSPECTUS SUMMARY

          The following is a summary of certain information contained herein and
     should be read in conjunction with such information contained elsewhere in
     this Prospectus and is subject to and qualified by reference to such
     information.  Capitalized terms used herein have the respective meanings
     ascribed to them elsewhere in this Prospectus.

          THE COMPANY

          The Company was incorporated under the laws of the State of Minnesota
     in 1906 and is a diversified electric utility engaged in the generation,
     purchase, transmission, distribution and sale of electric energy wholly
     within the state of Minnesota.  The principal executive offices of the
     Company are located at 30 West Superior Street, Duluth, Minnesota 55802;
     and the telephone number is (218) 722-2641.

          MP&L CAPITAL

          MP&L Capital is a Delaware statutory business trust created for the
     exclusive purposes of (i) issuing the Preferred Securities and Common
     Securities representing undivided beneficial interests in the assets of
     MP&L Capital, (ii) holding as trust assets the Junior Subordinated
     Debentures and (iii) engaging in only those other activities necessary or
     incidental thereto.  Upon issuance of the Preferred Securities, the Holders
     thereof will own all of the issued and outstanding Preferred Securities. 
     The Company has agreed to acquire Common Securities in an amount equal to
     at least 3% of the total capital of MP&L Capital and will own all of the
     issued and outstanding Common Securities.  

          DESCRIPTION OF PREFERRED SECURITIES AND JUNIOR SUBORDINATED DEBENTURES

          The Preferred Securities are undivided preferred beneficial interests
     in the assets of MP&L Capital and will have a preference, under certain
     circumstances, with respect to cash Distributions and amounts payable on
     liquidation, redemption or otherwise over the trust interests represented
     by the Common Securities issued by MP&L Capital.

          Holders of the Preferred Securities will be entitled to receive
     cumulative cash Distributions accruing from the date of original issuance
     and payable quarterly in arrears on the last day of March, June, September
     and December of each year, commencing March 31, 1996, at the per annum
     rate of 8.05% of the liquidation preference amount thereof to the persons
     in whose names the Preferred Securities are registered at the close of
     business on the relevant record dates.  Such Distributions will originally
     accrue from, and include, the Closing Date and will accrue to, and include,
     the first distribution payment date, and thereafter will accrue from, and
     exclude, the last distribution payment date through which Distributions 
     have been paid.  In the event that any date on which a distribution is
     payable on the Preferred Securities is not a Business Day (as defined
     herein), then such distribution will be made on the next succeeding
     Business Day (and without any interest or other payment in respect of any
     such delay), except that, if such Business Day is in the next succeeding
     calendar year, such payment shall be made on the immediately preceding
     Business Day, in each case with the same force and effect as if made on
     such date.

          MP&L Capital will hold Junior Subordinated Debentures in an aggregate
     principal amount equal to the liquidation preference amount of the Trust
     Securities.  The Junior Subordinated Debentures are unsecured subordinated
     debt securities issued under an Indenture dated as of March 1, 1996,
     between the Company and The Bank of New York, as Trustee (the "Indenture").
     MP&L Capital will use interest payments on the Junior Subordinated
     Debentures to make Distributions on the Preferred Securities.  The Junior
     Subordinated Debentures will be subordinate to all Senior Indebtedness of
     the Company but are senior to all capital stock of the Company.

          The Company has the right to defer payments of interest on the Junior
     Subordinated Debentures during Extension Periods of up to 20 consecutive
     quarters, provided that no single distribution payment period, as extended,
     may exceed 20 consecutive quarterly interest payment periods or extend
     beyond the maturity of the Junior Subordinated Debentures.  Distributions
     on the Preferred Securities will accrue with interest, compounded     
     quarterly, but will not be payable, during an Extension Period.  The
     Company may prepay at any time all or any portion of the interest accrued
     during an Extension Period.  Based upon the Company's current financial
     condition and, in light of the restriction on payment of dividends during
     an Extension Period, the Company believes that an extension of a 
     distribution payment period on the Preferred Securities is unlikely 
     and has no current intention to cause such an extension of a distribution
     payment period.  Upon the termination of any Extension Period and the 
     payment of all amounts then due, the Company may elect another Extension 
     Period.  The Company will give MP&L Capital and the Debenture Trustee 
     notice of its election of an Extension Period prior to the earlier of 
     (i) one Business Day prior to the record date for the distribution which 
     would occur but for such election or (ii) the date the Company is required
     to give notice to the NYSE or other applicable self-regulatory 
     organization of such record date and will cause MP&L Capital to send 
     notice of such election to the Holders of Preferred Securities.

          If and to the extent the Company makes interest payments on the Junior
     Subordinated Debentures deposited in MP&L Capital as trust assets, the
     Property Trustee is obligated to make Distributions promptly on the
     Preferred Securities.  The payment of Distributions on the Preferred
     Securities and payments on liquidation of MP&L Capital and the redemption
     of Preferred Securities are guaranteed by the Company if and to the extent
     that MP&L Capital has funds available therefor.

          The Junior Subordinated Debentures are redeemable, in whole or in
     part, on or after March 20, 2001, or at any time upon the occurrence of a
     Special Event and in certain other circumstances, at the option of the
     Company.  Upon redemption of the Junior Subordinated Debentures, the    
     Preferred Securities and the Common Securities will be redeemed on a pro
     rata basis to the same extent as the Junior Subordinated Debentures are
     redeemed. 

          Upon the occurrence and during the continuation of a Special Event,
     the Company may elect (i) to redeem the Junior Subordinated Debentures at
     any time, in whole but not in part, in which event all of the Trust
     Securities will be redeemed or (ii) to cause the termination of MP&L
     Capital, in which event, after the satisfaction of creditors of MP&L
     Capital, if any, the Junior Subordinated Debentures will be distributed to
     the Holders of the Preferred Securities and the Common Securities on a pro
     rata basis.  If at any time MP&L Capital is not or will not be taxed as a
     grantor trust but a Tax Event in respect of the Preferred Securities has
     not occurred, the Company has the right to terminate MP&L Capital and cause
     the Junior Subordinated Debentures to be distributed to the Holders of the
     Preferred Securities in liquidation of MP&L Capital.  If the Junior
     Subordinated Debentures are distributed to the Holders of the Preferred
     Securities, the Company will use its best efforts to have the Junior
     Subordinated Debentures listed on the New York Stock Exchange or on such
     other exchange as the Preferred Securities are then listed.  See
     "Description of the Preferred Securities -- Special Event Redemption or
     Distribution."

          The Company will guarantee payment, where applicable, of accrued and
     unpaid Distributions, the Redemption Price and amounts due upon
     liquidation, to the extent MP&L Capital has funds available therefor.

          The Trust Agreement (as defined herein) provides that the Company
     shall pay for all debts and obligations (other than with respect to the
     Trust Securities) and all costs and expenses of MP&L Capital, including any
     taxes and all costs and expenses with respect thereto, to which MP&L    
     Capital may become subject, except for United States withholding taxes.

          No sinking fund will be established for the benefit of the Preferred
     Securities.

                                     RISK FACTORS

          Prospective purchasers of Preferred Securities should carefully review
     the information contained elsewhere herein and should particularly consider
     the following risk factors with respect to the Preferred Securities:

     Ranking of Subordinated Obligations Under the Guarantee and the Junior
     Subordinated Debentures

          The Company's obligations under the Guarantee issued by the Company
     for the benefit of the Holders of the Preferred Securities are unsecured
     and rank subordinate and junior in right of payment to Senior Indebtedness
     of the Company, except any liabilities that may be made pari passu
     expressly by their terms. The obligations of the Company under the Junior
     Subordinated Debentures are subordinate and junior in right of payment to
     Senior Indebtedness of the Company.  As of December 31, 1995, Senior
     Indebtedness of the Company aggregated approximately $790 million.  There
     are no terms of the Preferred Securities, the Junior Subordinated
     Debentures or the Guarantee that limit the Company's ability to incur
     additional indebtedness, including indebtedness that would rank senior to
     the Junior Subordinated Debentures and the Guarantee.  See "Description of
     the Guarantee -- Status of the Guarantee" and "Description of the Junior
     Subordinated Debentures -- Subordination."

          The ability of MP&L Capital to pay amounts due on the Preferred
     Securities is solely dependent upon the Company making payments on the
     Junior Subordinated Debentures as and when required.

     Option to Extend Interest Payment Period; Tax Consequences

          The Company has the right under the Indenture to extend the interest
     payment period at any time and from time to time on the Junior Subordinated
     Debentures, for a period not exceeding 20 consecutive quarters.  As a
     consequence of any such extension, quarterly Distributions on the Preferred
     Securities would be deferred by MP&L Capital during such Extension Period,
     but would continue to accumulate additional Distributions thereon at the
     rate of 8.05% per annum.  In the event that the Company exercises this
     right, during any Extension Period the Company may not (i) declare or pay
     dividends or distributions (other than dividends or distributions in Common
     Stock of the Company) on, or redeem, purchase, acquire, or make a     
     liquidation payment with respect to any of its capital stock, or (ii) make
     any payment of principal, interest or premium, if any, on or repay,
     repurchase or redeem any indebtedness that is pari passu with the Junior
     Subordinated Debentures (including other Debt Securities, as defined
     herein) or make any guarantee payment with respect to the foregoing.  Prior
     to the termination of any such Extension Period, the Company may further
     extend the interest payment period, provided that such Extension Period
     together with all such previous and further extensions thereof may not
     exceed 20 consecutive quarters and that such extended interest payment
     period may not extend beyond the maturity date of the Junior Subordinated
     Debentures. Any Extension Period with respect to payment of interest on the
     Junior Subordinated Debentures, other Debt Securities or on any similar
     securities will apply to all such securities and will also apply to
     distributions with respect to the Preferred Securities and all other
     securities with terms substantially the same as the Preferred Securities. 
     See "Description of the Preferred Securities -- Distributions" and
     "Description of the Junior Subordinated Debentures -- Option to Extend
     Interest Payment Period."

          Because the Company has the right to extend the interest payment
     period on the Junior Subordinated Debentures, the Junior Subordinated
     Debentures will be treated as having been issued with original issue
     discount ("OID") for United States federal income tax purposes.  As a
     result, Holders of Preferred Securities will be required to include in
     their gross income Distributions as they accrue, rather than when they are
     paid, regardless of the Holder's regular method of accounting.  OID on the
     Preferred Securities will be treated as interest and will generally be
     equal to the Distributions on the Preferred Securities each year.  Should
     an Extension Period occur, a Holder of Preferred Securities will continue
     to accrue interest (in the form of OID) in income in respect of its pro
     rata share of the Junior Subordinated Debentures held by MP&L Capital for
     United States federal income tax purposes.  As a result, a Holder of
     Preferred Securities will include such interest in gross income for United
     States federal income tax purposes in advance of the receipt of cash, and
     will not receive the cash related to such income from MP&L Capital if the
     Holder disposes of the Preferred Securities prior to the record date for
     the payment of Distributions.  See "Certain United States Federal Income
     Tax Considerations -- Potential Extension of Interest Payment Period and
     Original Issue Discount."

          The Company has no current intention of exercising its right to defer
     payments of interest by extending the interest payment period on the Junior
     Subordinated Debentures.  However, should the Company elect to exercise
     such right in the future, the market price of the Preferred Securities is
     likely to be affected.  A Holder that disposes of its Preferred Securities
     during an Extension Period, therefore, might not receive the same return on
     its investment as a Holder that continues to hold its Preferred Securities.
     In addition, as a result of the existence of the Company's right to defer
     interest payments, the market price of the Preferred Securities (which
     represent a preferred undivided beneficial interest in the Junior
     Subordinated Debentures) may be more volatile than other securities on
     which original issue discount accrues that do not have such rights.

     Special Event Redemption or Distribution; Potential Adverse Effect on
     Market Price

          Upon the occurrence and continuation of a Special Event, the Company
     has the right to (i) redeem the Junior Subordinated Debentures, in whole
     but not in part, and therefore cause a mandatory redemption of all the
     Preferred Securities at the Redemption Price within 90 days following the
     occurrence of such Special Event or (ii) cause the termination of MP&L
     Capital and, in connection therewith, after satisfaction of creditors of
     MP&L Capital, if any, cause the Junior Subordinated Debentures to be
     distributed to the Holders of Trust Securities at the Redemption Price
     within 90 days following the occurrence of such Special Event.  If at any
     time MP&L Capital is not or will not be taxed as a grantor trust but a Tax
     Event (as defined herein) in respect of the Preferred Securities has not
     occurred, the Company has the right to terminate MP&L Capital and cause the
     Junior Subordinated Debentures to be distributed to the Holders of the
     Preferred Securities in liquidation of MP&L Capital.  There can be no
     assurance as to the market prices for the Junior Subordinated Debentures
     which may be distributed in exchange for Preferred Securities if a
     termination and liquidation of MP&L Capital were to occur.  Accordingly,
     such Junior Subordinated Debentures could, if distributed, trade at a
     discount to the price of the Preferred Securities exchanged.  See
     "Description of the Preferred Securities -- Special Event Redemption or
     Distribution" and "Certain United States Federal Income Tax Consequences."

          On December 7, 1995, the U.S. Treasury Department proposed certain tax
     law changes that, among other things, would generally deny interest
     deductions to corporate issuers of debt if the debt instrument has a term
     exceeding 20 years and is not reflected as indebtedness on the issuer's
     balance sheet.  As described in the Treasury Department's proposal, the
     proposed changes would not affect the ability of the Company to deduct
     interest on the Junior Subordinated Debentures because the term of the
     Junior Subordinated Debentures is less than 20 years.  However, there can
     be no assurance that subsequent proposals or final legislation will not
     affect the ability of the Company to deduct interest on the Junior
     Subordinated Debentures, which in turn could give rise to a Tax Event, as
     described more fully under "Description of the Preferred Securities --
     Special Event Redemption or Distribution."  Accordingly, there can be no
     assurance that a Special Event will not occur.

          There can be no assurance as to the market prices for Preferred
     Securities or Junior Subordinated Debentures that may be distributed in
     exchange for Preferred Securities if a dissolution or liquidation of MP&L
     Capital were to occur.  Accordingly, the Preferred Securities that an
     investor may purchase, whether pursuant to the offer made hereby or in the
     secondary market, or the Junior Subordinated Debentures that a Holder of
     Preferred Securities may receive on termination and liquidation of the MP&L
     Capital, may trade at a discount to the price that the investor paid to
     purchase the Preferred Securities offered hereby.  Because Holders of
     Preferred Securities may receive Junior Subordinated Debentures upon the
     occurrence of a Special Event, prospective purchasers of Preferred
     Securities are also making an investment decision with regard to the Junior
     Subordinated Debentures and should carefully review all the information
     regarding the Junior Subordinated Debentures contained herein.  See
     "Description of the Preferred Securities -- Special Event Redemption or
     Distribution" and "Description of the Junior Subordinated Debentures --
     General" in the accompanying Prospectus.

     Rights Under the Guarantee; Limitation as to Funds Available to MP&L
     Capital

          The Guarantee will be qualified as an indenture under the Trust
     Indenture Act of 1939, as amended (the "Trust Indenture Act").  The Bank of
     New York will act as indenture trustee under the Guarantee for the purposes
     of compliance with the Trust Indenture Act (the "Guarantee Trustee") and
     will hold the Guarantee for the benefit of the Holders of the Preferred
     Securities.  The Bank of New York will also act as trustee for the Junior
     Subordinated Debentures and as Property Trustee under the Trust Agreement.

          The Guarantee guarantees to the Holders of the Preferred Securities to
     the extent not paid by MP&L Capital, the payment (but not the collection)
     of (i) any accrued and unpaid Distributions required to be paid on the
     Preferred Securities, to the extent MP&L Capital has funds available
     therefor, (ii) the Redemption Price with respect to Preferred Securities
     called for redemption by MP&L Capital, to the extent MP&L Capital has funds
     available therefor and (iii) upon a voluntary or involuntary dissolution,
     winding-up or termination of MP&L Capital (unless the Junior Subordinated
     Debentures are distributed to Holders of the Preferred Securities), the
     lesser of (a) the aggregate of the liquidation preference amount and all
     accrued and unpaid Distributions on the Preferred Securities to the date of
     payment and (b) the amount of assets of MP&L Capital remaining available
     for distribution to Holders of the Preferred Securities in liquidation of
     MP&L Capital. The Holders of not less than a majority in aggregate
     liquidation preference amount of the Preferred Securities have the right to
     direct the time, method and place of conducting any proceeding for any
     remedy available to the Guarantee Trustee or to direct the exercise of any
     trust power conferred upon the Guarantee Trustee under the Guarantee.  Any
     Holder of Preferred Securities may institute a legal proceeding directly
     against the Company to enforce its rights under the Guarantee without first
     instituting a legal proceeding against MP&L Capital, the Guarantee Trustee
     or any other person or entity.  If the Company were to default on its
     obligations under the Junior Subordinated Debentures, MP&L Capital would
     lack available funds for the payment of Distributions or amounts payable on
     redemption of the Preferred Securities or otherwise, and in such event
     Holders of the Preferred Securities would not be able to rely upon the
     Guarantee for payment of such amounts.  If the Property Trustee fails to
     enforce its rights under the Junior Subordinated Debentures or the Trust
     Agreement, any Holder of Preferred Securities may institute a legal
     proceeding directly against the Company to enforce the Property Trustee's
     rights under the Junior Subordinated Debentures or the Trust Agreement, to
     the fullest extent permitted by law, without first instituting any legal
     proceeding against the Property Trustee or any other person or entity.  
     Notwithstanding the foregoing, a Holder of Preferred Securities may 
     directly institute a proceeding for enforcement of payment to such Holder
     directly of principal of or interest on the Junior Subordinated Debentures
     having a principal amount equal to the aggregate liquidation preference 
     amount of the Preferred Securities of such Holder on or after the due 
     dates specified in the Junior Subordinated Debentures.  See "Description 
     of the Guarantee --  Status of the Guarantee" and "Description of the 
     Junior Subordinated Debentures -- Subordination" herein. The Trust 
     Agreement pursuant to which MP&L Capital has been formed provides that 
     each Holder of Preferred Securities by acceptance thereof agrees to the 
     provisions of the Guarantee and the Indenture.

          The Preferred Securities are subject to mandatory redemption upon
     repayment of the Junior Subordinated Debentures at maturity or upon their
     earlier redemption.  See "Description of the Preferred Securities --
     Redemption Procedures." The Company will have the option at any time on or
     after March 20, 2001 upon not less than 45 days' notice, to redeem the
     Junior Subordinated Debentures, in whole or in part.

     Limited Voting Rights

          Holders of Preferred Securities will generally have limited voting
     rights relating only to the modification of the Preferred Securities and
     the dissolution, winding-up or termination of MP&L Capital.  Holders of
     Preferred Securities will not be entitled to vote to appoint, remove or
     replace the Property Trustee or the Delaware Trustee, which voting rights
     are vested exclusively in the Holder of the Common Securities except upon
     the occurrence of certain events described herein.  The Administrative
     Trustees and the Company may amend the Trust Agreement to ensure that MP&L
     Capital will be classified for United States federal income tax purposes as
     a grantor trust without the consent of Holders, even if such action
     adversely affects the interests of Holders.  See "Description of the
     Preferred Securities -- Voting Rights", "-- Amendments" and "-- Co-Trustees
     and Separate Property Trustees."

     Trading Characteristics of Preferred Securities

          The Preferred Securities constitute a new issue of securities with no
     established trading market.  While the Company will apply to list the
     Preferred Securities on the NYSE, a minimum of 400 beneficial holders and
     1,000,000 outstanding securities is required for listing a new class of
     securities on the NYSE.  Accordingly, no assurance can be given as to the
     liquidity of, or the development and maintenance of trading markets for,
     the Preferred Securities.  If approved for listing, the Preferred
     Securities may trade at a price that does not fully reflect the value of
     accrued but unpaid interest with respect to the underlying Junior
     Subordinated Debentures.  A Holder that disposes of Preferred Securities
     between record dates for payments of Distributions thereon will be required
     to include accrued but unpaid interest on the Junior Subordinated
     Debentures through the date of disposition in income as ordinary income and
     to add such amount to such Holder's adjusted tax basis in such Holder's pro
     rata share of the underlying Junior Subordinated Debentures deemed disposed
     of.  To the extent the selling price is less than such Holder's adjusted
     tax basis (which will include, in the form of OID, all accrued and unpaid
     interest), such Holder will recognize a capital loss.  Subject to certain
     limited exceptions, capital losses cannot be applied to offset ordinary
     income for United States federal income tax purposes.  See "Certain United
     States Federal Income Tax Consequences -- Potential Extension of Interest
     Payment Period and Original Issue Discount" and "-- Sale, Exchange and
     Redemption of the Preferred Securities."
     
                                     THE COMPANY

        The Company is an operating public utility incorporated under the laws
     of the State of Minnesota since 1906. Its principal executive office is at
     30 West Superior Street, Duluth, Minnesota 55802, and its telephone number
     is (218) 722-2641.  The Company has operations in four business segments:
     (1) electric operations, which include electric and gas services, and coal
     mining; (2) water operations, which include water and wastewater services;
     (3) automobile auctions, which also include a finance company and an auto
     transport company; and (4) investments, which include real estate
     operations, a 22.1 percent equity investment in a financial guaranty
     reinsurance company, and a securities portfolio.  As of December 31, 1995,
     the Company and its subsidiaries had approximately 5,600 employees.

     SUMMARY OF EARNINGS PER SHARE
                                                       YEAR ENDED DECEMBER 31,
                                                       ------------------------
                                                      1993       1994     1995
                                                      ----       ----     ----

        CONSOLIDATED EARNINGS PER SHARE
           Continuing Operations                    $ 2.27     $ 1.99   $ 2.06
           Discontinued Operations(*)                (.07)       .07      .10
                                                     ------    ------   ------
             Total                                  $ 2.20     $ 2.06   $ 2.16

        PERCENTAGE OF EARNINGS BY BUSINESS SEGMENT
           Continuing Operations
             Electric Operations                       63%        63%     61%
             Water Operations                           4         23     ( 2)
             Automobile Auctions                        -          -       0
             Investments                               36         11      36
           Discontinued Operations(*)                ( 3)         3       5
                                                      ----       ----    ----
                                                      100%       100%    100%
                                                      ====       ====    ====
     ------------------------

     (*)  On June 30,1995, the Company sold its interest in its paper and pulp
          business to Consolidated Papers, Inc.  ("CPI") for $118 million in
          cash, plus CPI's assumption of certain debt and lease obligations. 
          The Company is still committed to a maximum guarantee of $90 million
          to ensure a portion of a $33.4 million annual lease obligation for
          paper mill equipment under an operating lease extending to 2012.  CPI
          has agreed to indemnify the Company for any payments the Company may
          make as a result of the Company's obligation relating to this
          operating lease.

     Electric Operations

        Electric operations generate, transmit, distribute and sell electricity.
     The Company provides electricity to 122,000 customers in northern
     Minnesota, while 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.  Another wholly owned subsidiary, BNI Coal, Ltd. 
     ("BNI Coal") 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, the
     Company purchases 71 percent of the output from the Square Butte unit which
     is capable of generating up to 470 megawatts.

        In 1995 large 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, five paper companies and a pipeline company) each requiring 10
     megawatts or more of power.  These contracts, which have termination dates
     ranging from April 1997 to December 2005, require the payment of minimum
     monthly demand charges that cover most of the fixed costs, including a
     return on common equity, associated with having the capacity available to
     serve these customers.

     Water Operations

        Water operations include Southern States Utilities, Inc. ("SSU") and
     Heater Utilities, Inc. ("Heater"), both wholly owned subsidiaries of the
     Company.  SSU is the largest private water supplier in Florida.  At
     December 31, 1995, SSU provided water to 117,000 customers and wastewater
     treatment services to 53,000 customers in Florida.  At December 31, 1995,
     Heater provided water to 26,000 customers and wastewater treatment services
     to 3,000 customers in North Carolina and South Carolina.  These water
     operations have been upgrading existing facilities and building new
     facilities.

        Responding to a Florida Supreme Court decision addressing the issue of
     retroactive ratemaking with respect to another company, on March 5, 1996,
     the Florida Public Service Commission ("FPSC") voted to reconsider an
     October 1995 order (the "Refund Order") which would have required SSU to
     refund about $10 million, including interest, to customers who paid more
     since October 1993 under uniform rates than they would have paid under
     stand-alone rates.  Under the Refund Order, the collection of the $10
     million from customers who paid less under uniform rates would not be
     permitted.  The Refund Order was in response to the Florida First District
     Court of Appeals reversal in April 1995 of the 1993 FPSC order which
     approved uniform rates for most of SSU's service areas in Florida.  With
     "uniform rates," all customers in the uniform rate areas pay the same rates
     for water and wastewater services.  Uniform rates are an alternative to
     "stand-alone" rates which are calculated based on the cost of serving each
     service area.  The FPSC will reconsider the Refund Order at an undetermined
     date.  SSU continues to believe that it would be improper for the FPSC to
     order a refund to one group of customers without permitting recovery of a
     similar amount from the remaining customers since the First District Court
     of Appeals affirmed SSU's total revenue requirement for operations in
     Florida.  No provision for refund has been recorded.

        In June 1995 SSU filed a request with the FPSC for an $18.1 million
     annual increase in water and wastewater treatment rates.  On November 1,
     1995, the FPSC denied SSU's original $12 million interim rate request for
     two reasons: (1) it was based on uniform rates which were deemed improper
     by a court order subsequent to the SSU's original filing, and (2) the FPSC
     had not yet formulated a policy on allowable investments and expenses to be
     included in a forward-looking interim test year.  SSU submitted additional
     information to support interim rate approval of $12 million based on a
     forward-looking test year and $8.4 million based on a historical test year.
     On January 4, 1996, the FPSC permitted SSU to implement an interim rate
     increase (based on a historical test year) of $7.9 million, on an
     annualized basis, over revenue previously collected under a uniform rate
     structure.  Interim rates went into effect on January 23, 1996.  Final
     rates are anticipated to become effective in the fourth quarter of 1996.

     Autmobile Auctions

        The Company has an 83 percent ownership interest in ADESA Corporation
     ("ADESA"), the third largest automobile auction business in the United
     States.  ADESA, headquartered in Indianapolis, Indiana, owns and operates
     19 automobile auctions in the United States and Canada through which used
     cars and other vehicles are sold to franchised automobile dealers and
     licensed used car dealers.  Two wholly owned subsidiaries of ADESA,
     Automotive Finance Company and ADESA Auto Transport, perform related
     services.  Sellers at ADESA's auctions include domestic and foreign auto
     manufacturers, car dealers, fleet/lease companies, banks and finance 
     companies.

        The Company acquired 80 percent of ADESA on July 1, 1995, for $167
     million in cash.  Proceeds from the sale of the paper and pulp business
     combined with proceeds from the sale of securities investments were used to
     fund this acquisition.  Acquired goodwill and other intangible assets
     associated with this acquisition are being amortized on a straight line
     basis over periods not exceeding 40 years.  In January 1996 the Company
     provided an additional $15 million of capital in exchange for 1,982,346
     original issue common stock shares of ADESA.  This capital contribution
     increased the Company's ownership interest in ADESA to 83 percent.  Put and
     call agreements with ADESA's four top managers provide ADESA management the
     right to sell to the Company, and the Company the right to purchase, ADESA
     management's 17 percent retained ownership interest in ADESA, in increments
     during the years 1997, 1998 and 1999, at a price based on ADESA's financial
     performance.

     Investments

        The Company owns 80 percent of Lehigh Acquisition Corporation, a real
     estate company which owns various real estate properties and operations in
     Florida.

        The Company has a 22.1 percent equity investment in Capital Re
     Corporation ("Capital Re").  Capital Re is a Delaware holding company
     engaged primarily in financial and mortgage guaranty reinsurance through
     its wholly owned subsidiaries, Capital Reinsurance Company and Capital
     Mortgage Reinsurance Company.  Capital Reinsurance Company is a reinsurer
     of financial guarantees of municipal and non-municipal debt obligations. 
     Capital Mortgage Reinsurance Company is a reinsurer of residential mortgage
     guaranty insurance.  The Company's equity investment in Capital Re at
     December 31, 1995, was $93 million.

        As of December 31, 1995, the Company had approximately $106 million
     invested in a securities portfolio.  The majority of the securities are
     investment grade stocks of other utility companies and are considered by
     the Company to be conservative investments.  Additionally, the Company
     sells common stock securities short and enters into short sales of treasury
     futures contracts as part of an overall investment portfolio hedge
     strategy.
     
                                     MP&L CAPITAL

        MP&L Capital is a statutory business trust created under Delaware law
     pursuant to (i) a trust agreement executed by the Company, as depositor for
     MP&L Capital, the Property Trustee, the Delaware Trustee (each as defined
     herein) and an Administrative Trustee, an employee of the Company (together
     with such other Administrative Trustees from time to time appointed by the
     Company, the "Administrative Trustees") of such trust (the "Original Trust
     Agreement") and (ii) the filing of a certificate of trust with the Delaware
     Secretary of State on February 15, 1996.  Such trust agreement will be
     amended and restated in its entirety (as so amended and restated, the
     "Trust Agreement") substantially in the form filed as an exhibit to the
     Registration Statement of which this Prospectus forms a part.  The Trust
     Agreement will be qualified as an indenture under the Trust Indenture Act. 
     MP&L Capital exists for the exclusive purposes of (i) issuing Trust
     Securities representing undivided beneficial interests in the assets of
     MP&L Capital, (ii) holding the Junior Subordinated Debentures as trust
     assets and (iii) engaging in only those other activities necessary or
     incidental thereto.  All of the Common Securities will be owned by the
     Company.  The Common Securities will rank pari passu, and payments will be
     made thereon pro rata, with the Preferred Securities, except that upon the
     occurrence and continuance of a default under the Indenture, the rights of
     the Holder of the Common Securities to payment in respect of Distributions
     and payments upon liquidation, redemption and otherwise will be
     subordinated to the rights of the Holders of the Preferred Securities.  The
     Company will acquire Common Securities having an aggregate liquidation
     preference amount equal to 3% of the total capital of MP&L Capital.  MP&L
     Capital has a term of approximately 25 years, but may terminate earlier as
     provided in the Trust Agreement.  MP&L Capital's business and affairs will
     be conducted by the Administrative Trustees.  The office of the Delaware
     Trustee in the State of Delaware is White Clay Center, Route 273, Newark,
     Delaware 19711.  The principal place of business of MP&L Capital is c/o
     Minnesota Power & Light Company, 30 West Superior Street, Duluth, Minnesota
     55802.

                           MINNESOTA POWER & LIGHT COMPANY
                            SUMMARY FINANCIAL INFORMATION

                                        HISTORICAL              PRO FORMA (1)
                               ---------------------------    -----------------
                                            YEAR ENDED DECEMBER 31,
                                1993      1994       1995      1994       1995
                                ----      ----       ----      ----       ----
                                    (In thousands except per share amounts) 
    INCOME STATEMENT DATA:
       Operating revenue
         and income           $582,495  $582,167  $672,917   $674,696  $729,674
       Income
         Continuing
           operations         $ 64,374  $ 59,465  $ 61,857   $ 61,771  $ 61,422
         Discontinued
            operations          (1,753) $  1,868  $  2,848   $  1,868  $  2,848
                              --------  --------  --------   --------  --------
           Net Income         $ 62,621  $ 61,333  $ 64,705   $ 63,639  $ 64,270
       Earnings per share
           of common stock
         Continuing
           operations         $   2.27  $   1.99  $   2.06   $   2.07  $   2.04
         Discontinued
           operations         $   (.07) $    .07  $    .10   $    .07  $    .10
                              --------  --------  --------   --------  --------
           Total              $   2.20  $   2.06  $   2.16   $   2.14  $   2.14

                                                    DECEMBER 31, 1995   PERCENT
                                                    -----------------   -------
                                                     (In thousands)
     BALANCE SHEET DATA:
       Common stock equity                             $  584,072          46%
       Preferred stock not subject to mandatory
         redemption                                        28,547           2
       Preferred stock subject to mandatory
         redemption                                        20,000           2
       Long-term debt (excluding current maturities)   $  639,548          50
                                                       ----------         ----
         Total capitalization                          $1,272,167         100%


                       RATIOS OF EARNINGS TO FIXED CHARGES (2)

                                                  YEAR ENDED DECEMBER 31,
                                            -----------------------------------
                                            1991    1992    1993    1994   1995
                                            ----    ----    ----    ----   ----
     Ratios of Earnings to Fixed Charges    2.55    2.60    2.52    2.17   1.90


               SUPPLEMENTAL RATIOS OF EARNINGS TO FIXED CHARGES (2)(3)

                                                  YEAR ENDED DECEMBER 31,
                                            -----------------------------------
                                            1991    1992    1993    1994   1995
                                            ----    ----    ----    ----   ----
     Supplemental Ratios of Earnings to
       Fixed Charges                        2.20    2.25    2.19    1.95   1.73


           RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (2)

                                                  YEAR ENDED DECEMBER 31,
                                            -----------------------------------
                                            1991    1992    1993    1994   1995
                                            ----    ----    ----    ----   ----
     Ratios of Earnings to Fixed Charges
       and Preferred Dividends              2.32    2.38    2.32    2.03   1.76


                   SUPPLEMENTAL RATIOS OF EARNINGS TO FIXED CHARGES
                               AND PREFERRED DIVIDENDS (2)(3)

                                                  YEAR ENDED DECEMBER 31,
                                            -----------------------------------
                                            1991    1992    1993    1994   1995
                                            ----    ----    ----    ----   ----
     Supplemental Ratios of Earnings to
       Fixed Charges and Preferred
       Dividends                            2.04    2.10    2.05    1.84   1.63
     ----------
     (1) Presents unaudited pro forma consolidated results as if ADESA was
     acquired on January 1, 1994.  See Note 3 to the Company's Consolidated
     Financial Statements in the Company's Form 8-K dated February 16, 1996,
     incorporated herein by reference.

     (2) Ratios for prior periods have been restated to reflect discontinued
     operations.

     (3) The supplemental ratio of earnings to fixed charges includes the
     Company's obligation under a contract with Square Butte which extends
     through 2007, pursuant to which the Company is purchasing 71 percent of the
     output of a generating unit capable of generating up to 470 megawatts.  The
     Company is obligated to pay Square Butte all of Square Butte's leasing,
     operating and debt service costs (less any amounts collected from the sale
     of power or energy to others) that shall not have been paid by Square Butte
     when due.  See Note 12 to the Company's Consolidated Financial Statements
     in the Company's Form 8-K dated February 16, 1996, incorporated herein by
     reference.

                                   USE OF PROCEEDS

        The proceeds to be received by MP&L Capital from the sale of the
     Preferred Securities will be used to purchase Junior Subordinated
     Debentures of the Company.  The proceeds of such purchase will be applied
     by the Company for general corporate purposes, which may include the
     acquisition of outstanding securities of the Company.

                       DESCRIPTION OF THE PREFERRED SECURITIES

        MP&L Capital was authorized and created by the Original Trust Agreement.
     The Preferred Securities and the Common Securities will be created pursuant
     to the terms of the Trust Agreement.  The Preferred Securities will
     represent undivided beneficial interests in the assets of MP&L Capital and
     entitle the Holders thereof to a preference over the Common Securities in
     certain circumstances with respect to Distributions and amounts payable on
     redemption or liquidation, as well as other benefits as described in the
     Trust Agreement.  The following summaries of certain provisions of the
     Trust Agreement do not purport to be complete and are subject to, and are
     qualified in their entirety by reference to, the provisions of the Trust
     Agreement, including the definitions therein of certain terms, and the
     Trust Indenture Act.  Wherever particular sections or defined terms of the
     Trust Agreement are referred to, such sections or defined terms are
     incorporated herein by reference.  The Trust Agreement has been filed as an
     exhibit to the Registration Statement of which this Prospectus forms a
     part.

        General

        All of the Common Securities are owned by the Company.  The Common
     Securities will rank pari passu, and payments will be made thereon pro
     rata, with the Preferred Securities based on the liquidation preference
     amount of the Trust Securities, except as described under "Subordination of
     Common Securities." (Section 4.03).  The Junior Subordinated Debentures
     will be owned by MP&L Capital and held by the Property Trustee in trust for
     the benefit of the Holders of the Trust Securities. (Section 2.09).  The
     Junior Subordinated Debentures and the Guarantee, together with the
     obligations of the Company with respect to the Preferred Securities under
     the Indenture, the Trust Agreement and the Expense Agreement constitute a
     full and unconditional guarantee of the Preferred Securities by the
     Company.

        Distributions

        The Distributions payable on the Preferred Securities will be fixed at a
     rate per annum of 8.05% of the stated liquidation preference amount
     thereof.  The term "Distributions" as used herein includes interest payable
     on overdue Distributions, unless otherwise stated.  The amount of
     Distributions payable for any period will be computed on the basis of a
     360-day year of twelve 30-day months and for any period shorter than a full
     month, on the basis of the actual number of days elapsed. 
     (Section 4.01(b)).  Distributions that are in arrears will bear interest on
     the amount thereof at the per annum rate of 8.05% (to the extent permitted
     by applicable law, compounded quarterly).

        Distributions on the Preferred Securities will be cumulative, will
     accrue from the date of initial issuance thereof, and will be payable
     quarterly in arrears, on March 31, June 30, September 30 and December 31 of
     each year, commencing March 31, 1996, except as otherwise described
     below.  Such Distributions will originally accrue from, and include, the
     date of initial issuance and will accrue to, and include, the first
     distribution payment date, and thereafter will accrue from, and exclude,
     the last distribution payment date through which Distributions have been
     paid.  In the event that any date on which Distributions are otherwise
     payable on the Preferred Securities is not a Business Day, payment of the
     distribution payable on such date will be made on the next succeeding
     Business Day (and without any interest or other payment in respect of any
     such delay) except that, if such Business Day is in the next succeeding
     calendar year, payment of such distribution shall be made on the
     immediately preceding Business Day, in each case with the same force and
     effect as if made on such date (each date on which Distributions are
     otherwise payable in accordance with the foregoing, a distribution payment
     date).  (Section 4.01(a)).  A Business Day is used herein to mean any day
     other than a Saturday or a Sunday or a day on which banking institutions in
     The City of New York are authorized or required by law or executive order
     to remain closed or a day on which the Corporate Trust Office of the
     Property Trustee or the Debenture Trustee (as defined herein) is closed for
     business.

        The Company has the right under the Indenture pursuant to which it will
     issue the Junior Subordinated Debentures to extend the interest payment
     period at any time or from time to time on the Junior Subordinated
     Debentures to a period not exceeding 20 consecutive quarters, with the
     consequence that quarterly Distributions on the Preferred Securities would
     be deferred (but would continue to accrue with interest payable on unpaid
     Distributions at the rate per annum set forth above, compounded quarterly)
     by MP&L Capital during any such Extension Period.  In the event that the
     Company exercises this right, during such period the Company may not
     (i) declare or pay dividends or distributions (other than dividends or
     distributions in Common Stock of the Company) on, or redeem, purchase,
     acquire, or make a liquidation payment with respect to any of its capital
     stock, or (ii) make any payment of principal of, interest or premium, if
     any, on, or repay, repurchase or redeem any indebtedness that is pari passu
     with the Junior Subordinated Debentures (including other Debt Securities)
     or make any guarantee payment with respect to the foregoing.  Prior to the
     termination of any such Extension Period, the Company may further extend
     the interest payment period, provided that such Extension Period together
     with all such previous and further extensions thereof may not exceed 20
     consecutive quarters and that such Extension Period may not extend beyond
     the maturity date of the Junior Subordinated Debentures.  Any Extension
     Period with respect to payment of interest on the Junior Subordinated
     Debentures, other Debt Securities or on any similar securities will apply
     to all such securities and will also apply to Distributions with respect to
     the Preferred Securities and all other securities with terms substantially
     the same as the Preferred Securities.  Upon the termination of any
     Extension Period and the payment of all amounts then due, the Company may
     select a new extended interest payment period, subject to the foregoing
     requirements. See "Description of the Junior Subordinated Debentures --
     Interest" and "-- Option to Extend Interest Payment Period."

        It is anticipated that the income of MP&L Capital available for
     distribution to the Holders of the Preferred Securities will be limited to
     payments on the Junior Subordinated Debentures to be purchased by MP&L
     Capital with the proceeds of the sale of the Preferred Securities.  See
     "Description of the Junior Subordinated Debentures."  If the Company does
     not make interest payments on the Junior Subordinated Debentures, the
     Property Trustee will not have funds available to pay Distributions on the
     Preferred Securities and the Common Securities.  The payment of
     Distributions (if and to the extent MP&L Capital has sufficient funds
     available for the payment of such Distributions) is guaranteed by the
     Company as set forth herein under "Descriptions of the Guarantee."

        Distributions on the Preferred Securities will be payable to the Holders
     thereof as they appear on the register of MP&L Capital on the relevant
     record dates, which as long as the Preferred Securities remain in book-
     entry form, will be one Business Day prior to the relevant Distribution
     Date.  Subject to any applicable laws and regulations and the Trust
     Agreement, each such payment will be made as described under "-- Book-Entry
     Only Issuance - The Depository Trust Company."  In the event any Preferred
     Securities are not in book-entry form, the relevant record date for such
     Preferred Securities shall be the date 15 days prior to the relevant
     Distribution Date or if such date is not a Business Day, the next
     succeeding Business Day.  (Section 4.01(d)).

        Redemption

        The Junior Subordinated Debentures will mature on December 31, 2015, and
     the Company has the right to redeem the Junior Subordinated Debentures
     (a) in whole or in part, on or after March 20, 2001, or (b) at any time, 
     in whole but not in part, upon the occurrence of a Tax Event or an 
     Investment Company Event (each, as defined below, a "Special Event"), 
     subject to the conditions described under "Description of the Junior 
     Subordinated Debentures -- Optional Redemption."

        Mandatory Redemption

        Upon the repayment of the Junior Subordinated Debentures, whether at
     maturity or upon earlier redemption as provided in the Indenture, the
     proceeds from such repayment shall be applied by the Property Trustee to
     redeem a Like Amount (as defined herein) of Trust Securities, upon not less
     than 30 nor more than 60 days' notice, at the Redemption Price.  See
     "Description of the Junior Subordinated Debentures -- Optional Redemption."

        Special Event Redemption or Distribution

        If a Special Event shall occur and be continuing with respect to the
     Preferred Securities, the Company has the right to (i) redeem the Junior
     Subordinated Debentures in whole, but not in part, and therefore cause a
     mandatory redemption of all the Preferred Securities at the Redemption
     Price within 90 days following the occurrence of such Special Event, or
     (ii) cause the termination of MP&L Capital and in connection therewith,
     after satisfaction of MP&L creditors, if any, cause the Junior Subordinated
     Debentures to be distributed to the Holders of the Trust Securities at the
     Redemption Price within 90 days following the occurrence of such Special
     Event.  If at any time MP&L Capital is not or will not be taxed as a
     grantor trust but a Tax Event has not occurred, the Company has the right
     to terminate MP&L Capital and cause the Junior Subordinated Debentures to
     be distributed to the holders of the Preferred Securities in liquidation of
     MP&L Capital.  See "Certain United States Federal Income Tax Consequences -
     - Receipt of Junior Subordinated Debentures or Cash Upon Liquidation of
     MP&L Capital."  If the Company does not elect either option (i) or (ii)
     above, the Preferred Securities will remain outstanding and, in the event a
     Tax Event has occurred and is continuing, Additional Interest (as defined
     below) will be payable on the Junior Subordinated Debentures. 

        "Like Amount" means (i) with respect to a redemption of Trust
     Securities, Preferred Securities and Common Securities, each in amounts
     having a liquidation value equal to the proportion all such securities have
     to the liquidation value of all the Trust Securities, together having an
     aggregate liquidation value equal to the principal amount of Junior
     Subordinated Debentures to be contemporaneously redeemed in accordance with
     the Indenture, the proceeds of which are to be used to pay the Redemption
     Price of such Trust Securities and (ii) with respect to a distribution of
     Junior Subordinated Debentures to Holders of Trust Securities in connection
     with a liquidation of MP&L Capital upon the occurrence of a Special Event
     or the bankruptcy, termination or liquidation of the Company or an order
     for judicial termination of MP&L Capital having been entered by a court of
     competent jurisdiction, Junior Subordinated Debentures having a principal
     amount equal to the liquidation value of the Trust Securities of the
     Holders to which such Junior Subordinated Debentures are distributed.

        "Tax Event" means the receipt by MP&L Capital of an opinion of counsel
     (which may be counsel to the Company or an affiliate but not an employee
     thereof and which must be acceptable to the Property Trustee) experienced
     in such matters to the effect that, as a result of any amendment to, or
     change (including any announced prospective change) in, the laws (or any
     regulations thereunder) of the United States or any political subdivision
     or taxing authority thereof or therein affecting taxation, or as a result
     of any official administrative or judicial decision interpreting or
     applying such laws or regulations, which amendment or change is effective
     or such pronouncement or decision is announced on or after the date of
     original issuance of the Preferred Securities, there is more than an
     insubstantial risk that (i) MP&L Capital is, or will be within 90 days of
     the date thereof, subject to United States federal income tax with respect
     to income received or accrued on the Junior Subordinated Debentures, (ii)
     interest payable by the Company on the Junior Subordinated Debentures, is
     not, or within 90 days of the date thereof, will not be, deductible, in
     whole or in part, for United States federal income tax purposes, or (iii)
     MP&L Capital is, or will be within 90 days of the date thereof, subject to
     more than a de minimis amount of other taxes, duties or other governmental
     charges.

        "Investment Company Event" means the occurrence of a change in law or
     regulation or a change in interpretation or application of law or
     regulation by any legislative body, court, governmental agency or
     regulatory authority ("Change in 1940 Act Law") to the effect that MP&L
     Capital is or will be considered an "investment company" that is required
     to be registered under the Investment Company Act of 1940, as amended,
     which Change in 1940 Act Law becomes effective on or after the date of
     original issuance of the Preferred Securities.

        On December 7, 1995, the U.S. Treasury Department proposed certain tax
     law changes that, among other things, would generally deny interest
     deductions to corporate issuers of debt if the debt instrument has a term
     exceeding 20 years and is not reflected as indebtedness on the issuer's
     balance sheet.  As described in the Treasury Department's proposal, the
     proposed changes would not affect the ability of the Company to deduct
     interest on the Junior Subordinated Debentures, because the term of the
     Junior Subordinated Debentures is less than 20 years.  However, there can
     be no assurance that subsequent proposals or final legislation will not
     affect the ability of the Company to deduct interest on the Junior
     Subordinated Debentures, which in turn could give rise to a Tax Event.
     Accordingly, there can be no assurance that a Special Event will not 
     occur.

        On the date fixed for any distribution of Junior Subordinated
     Debentures, upon termination of MP&L Capital (i) the Preferred Securities
     and the Common Securities will no longer be deemed to be outstanding, (ii)
     DTC or its nominee, as the record holder of such Preferred Securities, will
     receive a registered global certificate or certificates representing the
     Junior Subordinated Debentures to be delivered upon such distribution and
     (iii) certificates representing Preferred Securities will be deemed to
     represent Junior Subordinated Debentures having an aggregate principal
     amount equal to the stated liquidation preference amount of, and bearing
     accrued and unpaid interest equal to accrued and unpaid Distributions on,
     such Preferred Securities until such certificates are presented to the
     Company or its agent for transfer or reissuance.

        There can be no assurance as to the market price for the Junior
     Subordinated Debentures which may be distributed in exchange for Preferred
     Securities if a termination and liquidation of MP&L Capital were to occur. 
     Accordingly, the Junior Subordinated Debentures which an investor may
     subsequently receive on termination and liquidation of MP&L Capital, may
     trade at a discount to the price of the Preferred Securities exchanged.  If
     the Junior Subordinated Debentures are distributed to the Holders of
     Preferred Securities upon the dissolution of MP&L Capital, the Company will
     use its best efforts to list the Junior Subordinated Debentures on the NYSE
     or on such other exchange on which the Preferred Securities are then
     listed.

        Redemption Procedures

        The Company may not redeem fewer than all the Junior Subordinated
     Debentures and MP&L Capital may not redeem fewer than all the outstanding
     Preferred Securities unless all accrued and unpaid Distributions have been
     paid on all Preferred Securities for all quarterly distribution periods
     terminating on or prior to the date of redemption or if a partial
     redemption of the Preferred Securities  would result in the delisting of
     the Preferred Securities by any national securities exchange on which the
     Preferred Securities are then listed.

        Preferred Securities redeemed on each Redemption Date shall be redeemed
     at the Redemption Price with the proceeds from the contemporaneous
     redemption of Junior Subordinated Debentures.  Redemptions of the Preferred
     Securities shall be made and the Redemption Price shall be deemed payable
     on each date selected for redemption (the "Redemption Date") only to the
     extent that MP&L Capital has funds available for the payment of such 
     Redemption Price.  (Section 4.02(c)).  See also "Subordination of Common
     Securities."

        If MP&L Capital gives a notice of redemption in respect of Preferred
     Securities (which notice will be irrevocable), then, on or before the
     Redemption Date, MP&L Capital will irrevocably deposit with DTC funds
     sufficient to pay the applicable Redemption Price and will give DTC
     irrevocable instructions and authority to pay the Redemption Price to the
     beneficial holders of such Preferred Securities.  If such Preferred
     Securities are no longer in book-entry form, MP&L Capital, to the extent
     funds are available, will irrevocably deposit with the paying agent for
     such Preferred Securities funds sufficient to pay the applicable Redemption
     Price and will give such paying agent irrevocable instructions and
     authority to pay the Redemption Price to the Holders thereof upon surrender
     of their certificates evidencing such Preferred Securities.
     Notwithstanding the foregoing, Distributions payable on or prior to the
     Redemption Date for any Preferred Securities called for redemption shall be
     payable to the Holders of such Preferred Securities on the relevant record
     dates for the related distribution payment dates.  If notice of redemption
     shall have been given and funds deposited as required, then on the
     Redemption Date, all rights of Holders of such Preferred Securities so
     called for redemption will cease, except the right of the Holders of such
     Preferred Securities to receive the Redemption Price, but without interest
     thereon, and such Preferred Securities will cease to be outstanding.  In
     the event that any date fixed for redemption of Preferred Securities is not
     a Business Day, then payment of the amount payable on such date will be
     made on the next succeeding day which is a Business Day (and without any
     interest or other payment in respect of any such delay).  In the event that
     payment of the Redemption Price in respect of Preferred Securities called
     for redemption is improperly withheld or refused and not paid either by
     MP&L Capital or by the Company pursuant to the Guarantee described herein
     under "Description of the Guarantee", Distributions on such Preferred
     Securities will continue to accrue at the then applicable rate, from the
     original Redemption Date to the date of payment, in which case the actual
     payment date will be considered the date fixed for redemption for purposes
     of calculating the Redemption Price.

        Subject to applicable law (including, without limitation, United States
     federal securities law), the Company may at any time and from time to time
     purchase outstanding Preferred Securities by tender, in the open market or
     by private agreement.

        If less than all the Trust Securities are to be redeemed on a Redemption
     Date, then the aggregate liquidation preference of such securities to be
     redeemed shall be allocated on a pro rata basis to the Common Securities
     and the Preferred Securities.  The particular Preferred Securities to be
     redeemed shall be selected not more than 60 days prior to the Redemption
     Date by the Property Trustee from the outstanding Preferred Securities not
     previously called for redemption, by such method as the Property Trustee
     shall deem fair and appropriate and which may provide for the selection for
     redemption of Preferred Securities in liquidation preference amounts equal
     to $25 or integral multiples thereof.  The Property Trustee shall promptly
     notify the security registrar in writing of the Preferred Securities
     selected for redemption and, in the case of any Preferred Securities
     selected for partial redemption, the liquidation preference amount thereof
     to be redeemed.  For all purposes of the Trust Agreement, unless the
     context otherwise requires, all provisions relating to the redemption of
     Preferred Securities shall relate, in the case of any Preferred Securities
     redeemed or to be redeemed only in part, to the portion of the liquidation
     preference amount of Preferred Securities that has been or is to be
     redeemed.  (Section 4.02(f)).

        Subordination of Common Securities

        Payment of Distributions on, and the Redemption Price of, the Trust
     Securities, shall be made pro rata based on the Liquidation Amount of the
     Trust Securities; provided, however, that if on any distribution payment
     date or Redemption Date an Event of Default under the Indenture (as
     described below, see "Events of Default; Notice") under the Trust Agreement
     shall have occurred and be continuing, no payment of any Distribution on,
     or Redemption Price of, any Common Security, and no other payment on
     account of the redemption, liquidation or other acquisition of Common
     Securities, shall be made unless payment in full in cash of all accrued and
     unpaid Distributions on all outstanding Preferred Securities for all
     distribution periods terminating on or prior thereto, or in the case of
     payment of the Redemption Price, the full amount of such Redemption Price
     on all outstanding Preferred Securities, shall have been made or provided
     for, and all funds available to the Property Trustee shall first be applied
     to the payment in full, in cash, of all Distributions on, or Redemption
     Price of, Preferred Securities then due and payable.  (Section 4.03(a)).

        In the case of any default under the Trust Agreement resulting from an
     Event of Default under the Indenture, the Company as Holder of the Common
     Securities will be deemed to have waived any such default under the Trust
     Agreement until the effect of all such Defaults with respect to the
     Preferred Securities have been cured, waived or otherwise eliminated. 
     Until any such default under such Trust Agreement with respect to the
     Preferred Securities has been so cured, waived or otherwise eliminated, the
     Property Trustee shall act solely on behalf of the Holders of the Preferred
     Securities and not the Holders of the Common Securities, and only Holders
     of Preferred Securities will have the right to direct the Property Trustee
     to act on their behalf.  (Section 4.03(b)).

        Liquidation Distribution upon Termination

        Pursuant to the Trust Agreement, MP&L Capital shall terminate and shall
     be liquidated by the Property Trustee on the first to occur of: (i)
     December 31, 2020, the expiration of the term of MP&L Capital; (ii) the
     bankruptcy, dissolution or liquidation of the Company; (iii) the redemption
     of all of the Preferred Securities, (iv) the termination and liquidation of
     MP&L Capital upon (a) the occurrence of a Special Event or (b) in the event
     MP&L Capital is not or will not be taxed as a grantor trust under the
     United States federal income tax law, but a Tax Event has not occurred,
     and, in either such case, the Company as Depositor has given written
     direction to the Property Trustee to terminate MP&L Capital within 90 days
     of such event (which direction is optional and wholly within the discretion
     of the Company as Depositor) and (v) an order for judicial termination of
     MP&L Capital having been entered by a court of competent jurisdiction.
     (Sections 9.01 and 9.02).

        If an early termination occurs as described in clause (ii), (iii), (iv)
     or (v) above, MP&L Capital shall be liquidated by the Property Trustee as
     expeditiously as the Property Trustee determines to be appropriate by
     adequately providing for the satisfaction of liabilities of creditors, if
     any, and by distributing to each Holder of Preferred Securities and Common
     Securities a Like Amount of Junior Subordinated Debentures, unless such
     distribution is determined by the Property Trustee not to be practical, in
     which event such Holders will be entitled to receive, out of the assets of
     MP&L Capital available for distribution to Holders after adequate
     provision, as determined by the Property Trustee, has been made for the
     satisfaction of liabilities of creditors, if any, an amount equal to, in
     the case of Holders of Preferred Securities, the aggregate liquidation
     preference of the Preferred Securities plus accrued and unpaid
     Distributions thereon to the date of payment (such amount being the
     "Liquidation Distribution").  If such Liquidation Distribution can be paid
     only in part because MP&L Capital has insufficient assets available to pay
     in full the aggregate Liquidation Distribution, then the amounts payable
     directly by MP&L Capital on the Preferred Securities shall be paid on a pro
     rata basis.  The Company, as Holder of the Common Securities, will be
     entitled to receive Distributions upon any such termination pro rata with
     the Holders of the Preferred Securities, except that if default has
     occurred and is continuing under the Indenture, the Preferred Securities
     shall have a preference over the Common Securities.  (Sections 9.04(a) and
     9.04(d)).  If an early termination occurs as described in clause (v) above,
     the Junior Subordinated Debentures will be subject to optional redemption
     in whole but not in part.

        Events of Default; Notice

        Any one of the following events constitutes an Event of Default under
     the Trust Agreement (whatever the reason for such Event of Default and
     whether it shall be voluntary or involuntary or be effected by operation of
     law or pursuant to any judgment, decree or order of any court or any order,
     rule or regulation of any administrative or governmental body):

          (i) the occurrence of an Event of Default as defined in Section 801 of
        the Indenture (see "Description of the Junior Subordinated Debentures --
        Events of Default"); or

          (ii) default by MP&L Capital in the payment of any distribution when
        it becomes due and payable, and continuation of such default for a
        period of 30 days; or

          (iii) default by MP&L Capital in the payment of any Redemption Price,
        of any Trust Security when it becomes due and payable; or

          (iv) default in the performance, or breach, in any material respect,
        of any covenant or warranty of the Trustees in the Trust Agreement
        (other than a covenant or warranty a default in the performance of which
        or the breach of which is specifically dealt with in clause (ii) or
        (iii) above), and continuation of such default or breach for a period of
        60 days after there has been given, by registered or certified mail, to
        the Property Trustee by the Holders of Preferred Securities having at
        least 10% of the total liquidation preference amount of the outstanding
        Preferred Securities, a written notice specifying such default or breach
        and requiring it to be remedied and stating that such notice is a Notice
        of Default thereunder; or

          (v) the occurrence of certain events of bankruptcy or insolvency with
        respect to MP&L Capital;

        Within five Business Days after the occurrence of any Event of Default,
     the Property Trustee shall transmit to the Holders of Trust Securities and
     the Company notice of any such Event of Default actually known to the
     Property Trustee, unless such Event of Default shall have been cured or
     waived.

        Merger or Consolidation of the Property Trustee or the Delaware Trustee

        Any entity into which the Property Trustee or the Delaware Trustee may
     be merged or with which it may be consolidated, or any entity resulting
     from any merger, conversion or consolidation to which the Property Trustee
     or the Delaware Trustee shall be a party, or any entity succeeding to all
     or substantially all the corporate trust business of the Property Trustee
     or the Delaware Trustee, shall be the successor to the Property Trustee or
     the Delaware Trustee under the Trust Agreement, provided such entity shall
     be otherwise qualified and eligible.  (Section 8.12).

        Book-Entry Only Issuance -- The Depository Trust Company

        The Depository Trust Company (the "DTC") will act as securities
     depositary for all of the Preferred Securities.  The Preferred Securities
     will be issued only as fully-registered securities registered in the name
     of Cede & Co. ("DTC's nominee").  One or more fully-registered global
     Preferred Securities certificates, representing the aggregate number of
     Preferred Securities, will be issued and will be deposited with DTC.

        DTC is a limited-purpose trust company organized under the New York
     Banking Law, a "banking organization" within the meaning of the New York
     Banking Law, a member of the Federal Reserve System, a "clearing
     corporation" within the meaning of the New York Uniform Commercial Code and
     a "clearing agency" registered pursuant to the provisions of Section 17A of
     the 1934 Act.  DTC holds securities that its participants ("Participants")
     deposit with DTC.  DTC also facilitates the settlement among Participants
     of securities transactions, such as transfers and pledges, in deposited
     securities through electronic computerized book-entry changes in
     Participants' accounts, thereby eliminating the need for physical movement
     of securities certificates.  Direct Participants include securities brokers
     and dealers, banks, trust companies, clearing corporations and certain
     other organizations ("Direct Participants").  DTC is owned by a number of
     its Direct Participants and by the New York Stock Exchange, the American
     Stock Exchange, Inc., and the National Association of Securities Dealers,
     Inc.  Access to the DTC system is also available to others, such as
     securities brokers and dealers, banks and trust companies that clear
     transactions through or maintain a direct or indirect custodial
     relationship with a Direct Participant ("Indirect Participants").  The
     rules applicable to DTC and its Direct Participants and Indirect
     Participants are on file with the Commission.

        Purchases of Preferred Securities within the DTC system must be made by
     or through Direct Participants, which will receive a credit for the
     Preferred Securities on DTC's records.  The ownership interest of each
     actual purchaser of each Preferred Security (the "Beneficial Owner") is in
     turn to be recorded on the Participants' records.  Beneficial Owners will
     not receive written confirmation from DTC of their purchases, but
     Beneficial Owners are expected to receive written confirmations providing
     details of the transactions, as well as periodic statements of their
     holdings, from the Participants through which the Beneficial Owners
     purchased Preferred Securities.  Transfers of ownership interests in the
     Preferred Securities are to be accomplished by entries made on the books of
     Participants acting on behalf of Beneficial Owners.  Beneficial Owners will
     not receive certificates representing their ownership interests in the
     Preferred Securities, except in the event that use of the book-entry system
     for the Preferred Securities is discontinued.

        To facilitate subsequent transfers, all the Preferred Securities
     deposited by Direct Participants with DTC are registered in the name of
     DTC's nominee, Cede & Co.  The deposit of Preferred Securities with DTC and
     their registration in the name of Cede & Co. effect no change in beneficial
     ownership.  DTC has no knowledge of the actual Beneficial Owners of the
     Preferred Securities; DTC's records reflect only the identity of the Direct
     Participants to whose accounts such Preferred Securities are credited,
     which may or may not be the Beneficial Owners.  The Participants will
     remain responsible for keeping account of their holdings on behalf of 
     their customers.

        Conveyance of notices and other communications by DTC to Direct
     Participants, by Direct Participants to Indirect Participants and by
     Participants to Beneficial Owners will be governed by arrangements among
     them, subject to any statutory or regulatory requirements that may be in
     effect from time to time.

        Redemption notices shall be sent to Cede & Co. as the registered Holder
     of Preferred Securities.  If less than all of the Preferred Securities are
     being redeemed, DTC's current practice is to determine by lot the amount of
     the interest of each Direct Participant in such issue to be redeemed.

        Although voting with respect to the Preferred Securities is limited, in
     those cases where a vote is required, neither DTC nor Cede & Co. will
     itself consent or vote with respect to Preferred Securities.  Under its
     usual procedures, DTC would mail an Omnibus Proxy to MP&L Capital as soon
     as possible after the record date.  The Omnibus Proxy assigns Cede & Co.
     consenting or voting rights to those Direct Participants to whose accounts
     the Preferred Securities are credited on the record date (identified in a
     listing attached to the Omnibus Proxy).  The Company and MP&L Capital
     believe that the arrangements among DTC, Direct and Indirect Participants,
     and Beneficial Owners will enable the Beneficial Owners to exercise rights
     equivalent in substance to the rights that can be directly exercised by a
     holder of a beneficial interest in MP&L Capital.

        Distribution payments on the Preferred Securities will be made to DTC. 
     DTC's practice is to credit Direct Participants' accounts on the relevant
     payment date in accordance with their respective holdings shown on DTC's
     records unless DTC has reason to believe that it will not receive payments
     on such payment date.  Payments by Participants to Beneficial Owners will
     be governed by standing instructions and customary practices, as is the
     case with securities held for the account of customers in bearer form or
     registered in "street name," and such payments will be the responsibility
     of such Participant and not of DTC, the Property Trustee, MP&L Capital or
     the Company, subject to any statutory or regulatory requirements to the
     contrary that may be in effect from time to time.  Payment of Distributions
     to DTC is the responsibility of MP&L Capital, disbursement of such payments
     to Direct Participants is the responsibility of DTC, and disbursement of
     such payments to the Beneficial Owners is the responsibility of
     Participants.

        Except as provided herein, a Beneficial Owner will not be entitled to
     receive physical delivery of Preferred Securities.  Accordingly, each
     Beneficial Owner must rely on the procedures of DTC to exercise any rights
     under the Preferred Securities.

        DTC may discontinue providing its services as securities depositary with
     respect to the Preferred Securities at any time by giving reasonable notice
     to MP&L Capital and the Company.  Under such circumstances, in the event
     that a successor securities depositary is not obtained, Preferred
     Securities certificates are required to be printed and delivered. 
     Additionally, the Administrative Trustees (with the consent of the Company)
     may decide to discontinue use of the system of book-entry transfers through
     DTC (or any successor depositary) with respect to the Preferred Securities.
     In that event, certificates for the Preferred Securities will be printed
     and delivered.

        The information in this section concerning DTC and DTC's book-entry
     system has been obtained from sources that the Company and MP&L Capital
     believe to be reliable, but neither the Company nor MP&L Capital takes
     responsibility for the accuracy thereof.

        Voting Rights

        Holders of Trust Securities shall be entitled to one vote for each $25
     in liquidation preferences represented by their Trust Securities in respect
     of any matter as to which such Holders of Trust Securities are entitled to
     vote.  Except as described below and under "-- Amendments," and under
     "Description of the Guarantee -- Amendments and Assignment" and as
     otherwise required by law and the Trust Agreement, the Holders of the
     Preferred Securities will have no voting rights.  (Section 6.01(a)).

        So long as any Junior Subordinated Debentures are held by the Property
     Trustee, the Property Trustee shall not (i) direct the time, method and
     place of conducting any proceeding for any remedy available to the
     Debenture Trustee, or executing any trust or power conferred on the
     Debenture Trustee with respect to the Junior Subordinated Debentures, (ii)
     waive any past default which is waivable under Section 813 of the
     Indenture, (iii) exercise any right to rescind or annul a declaration that
     the principal of all the Junior Subordinated Debentures shall be due and
     payable or (iv) consent to any amendment, modification or termination of
     the Indenture or the Junior Subordinated Debentures, where such consent
     shall be required, without, in each case, obtaining the prior approval of
     the Holders of Preferred Securities having of at least 66 2/3% of the
     liquidation preference amount of the outstanding Preferred Securities;
     provided, however, that where a consent under the Indenture would require
     the consent of each Holder of Junior Subordinated Debentures affected
     thereby, no such consent shall be given by the Property Trustee without the
     prior consent of each Holder of Preferred Securities.  The Property Trustee
     shall not revoke any action previously authorized or approved by a vote of
     the Preferred Securities.  If the Property Trustee fails to enforce its
     rights under the Junior Subordinated Debentures or the Trust Agreement, any
     Holder of Preferred Securities may institute a legal proceeding directly
     against the Company to enforce the Property Trustee's rights under the
     Junior Subordinated Debentures or the Trust Agreement, to the fullest
     extent permitted by law, without first instituting any legal proceeding
     against the Property Trustee or any other person or entity.  The Property
     Trustee shall notify all Holders of the Preferred Securities of any notice
     of default received from the Debenture Trustee.  In addition to obtaining
     the foregoing approvals of the Holders of the Preferred Securities, prior
     to taking any of the foregoing actions, the Property Trustee shall receive
     an opinion of counsel experienced in such matters to the effect that MP&L
     Capital will be classified as a "grantor trust" and will not be classified
     as an association taxable as a corporation for United States federal income
     tax purposes on account of such action.  (Section 6.01(b)).  
     Notwithstanding the foregoing, a Holder of Preferred Securities may 
     institute a proceeding for enforcement of payment to such Holder directly
     of principal of or interest on the Junior Subordinated Debentures having 
     a principal amount equal to the aggregate liquidation preference amount of
     the Preferred Securities of such Holder on or after the due dates specified
     in the Junior Subordinated Debentures. 

        Any required approval of Holders of Preferred Securities may be given at
     a separate meeting of Holders of Preferred Securities convened for such
     purpose or pursuant to written consent.  The Administrative Trustees will
     cause a notice of any meeting at which Holders of Preferred Securities are
     entitled to vote, or of any matter upon which action by written consent of
     such Holders is to be taken, to be given to each Holder of Preferred
     Securities in the manner set forth in the Trust Agreement.  (Section 6.02).

        No vote or consent of the Holders of Preferred Securities will be
     required for MP&L Capital to redeem and cancel Preferred Securities in
     accordance with the Trust Agreement.

        Notwithstanding that Holders of Preferred Securities are entitled to
     vote or consent under any of the circumstances described above, any of the
     Preferred Securities that are owned by the Company, the Property Trustee or
     any affiliate of the Company or the Property Trustee, shall, for purposes
     of such vote or consent, be treated as if they were not outstanding.

        Amendments

        The Trust Agreement may be amended from time to time by MP&L Capital (on
     approval of a majority of the Administrative Trustees) and the Company,
     without the consent of any Holders of Trust Securities, (i) to cure any
     ambiguity, correct or supplement any provision therein which may be
     inconsistent with any other provision therein, or to make any other
     provisions with respect to matters or questions arising under the Trust
     Agreement, which shall not be inconsistent with the other provisions of the
     Trust Agreement, provided, however, that any such amendment shall not
     adversely affect in any material respect the interests of any Holder of
     Trust Securities or (ii) to modify, eliminate or add to any provisions of
     the Trust Agreement to such extent as shall be necessary to ensure that
     MP&L Capital will not be classified for United States federal income tax
     purposes as an association taxable as a corporation at any time that any
     Trust Securities are outstanding or to ensure MP&L Capital's exemption from
     the status of an "investment company" under the Investment Company Act of
     1940, as amended (the "1940 Act"); provided, however, that, except in the
     case of clause (ii), such action shall not adversely affect in any material
     respect the interests of any Holder of Trust Securities and, in the case of
     clause (i), any amendments of the Trust Agreement shall become effective
     when notice thereof is given to the Holders of Trust Securities.

        Except as provided below, any provision of the Trust Agreement may be
     amended by the Trustees and the Company with (i) the consent of Holders of
     Trust Securities representing not less than a majority in liquidation
     preference of the Trust Securities then outstanding and (ii) receipt by the
     Trustees of an opinion of counsel to the effect that such amendment or the
     exercise of any power granted to the Trustees in accordance with such
     amendment will not affect MP&L Capital's status as a grantor trust for
     United States federal income tax purposes or affect MP&L Capital's
     exemption from status of an "investment company" under the 1940 Act. 

        Without the consent of each affected Holder of Trust Securities, the
     Trust Agreement may not be amended to (i) change the amount or timing of
     any distribution with respect to the Trust Securities or otherwise
     adversely affect the amount of any distribution required to be made in
     respect of the Trust Securities as of a specified date or (ii) restrict the
     right of a Holder of Trust Securities to institute suit for the enforcement
     of any such payment on or after such date.

        Removal of Property Trustee

        Unless an Event of Default under the Indenture shall have occurred and
     be continuing, the Property Trustee may be removed at any time by act of
     the Holder of the Common Securities.  If an Event of Default under the
     Indenture has occurred and is continuing, the Property Trustee may be
     removed at such time by act of the Holders of Preferred Securities having a
     majority of the liquidation preference of the Preferred Securities.  In no
     event will the Holders of the Preferred Securities have the right to vote
     to appoint, remove or replace the Administrative Trustees, which voting
     rights are vested exclusively in the Company as the Holder of the Common
     Securities.  No resignation or removal of the Property Trustee and no
     appointment of a successor trustee shall be effective until the acceptance
     of appointment by the successor Property Trustee in accordance with the
     provisions of the Trust Agreement.  (Section 8.10).

        Co-trustees and Separate Property Trustee

        Unless an Event of Default under the Indenture shall have occurred and
     be continuing, at any time or times, for the purpose of meeting the legal
     requirements of the Trust Indenture Act or of any jurisdiction in which any
     part of the Trust Property (as defined in the Trust Agreement) may at the
     time be located, the Holder of the Common Securities and the Property
     Trustee shall have power to appoint, and upon the written request of the
     Property Trustee, the Company, as Depositor, shall for such purpose join
     with the Property Trustee in the execution, delivery and performance of all
     instruments and agreements necessary or proper to appoint one or more
     persons approved by the Property Trustee either to act as co-trustee,
     jointly with the Property Trustee, of all or any part of such Trust
     Property, or to act as separate trustee of any such property, in either
     case with such powers as may be provided in the instrument of appointment,
     and to vest in such person or persons in such capacity, any property,
     title, right or power deemed necessary or desirable, subject to the
     provisions of the Trust Agreement.  If the Company, as Depositor, does not
     join in such appointment within 15 days after the receipt by it of a
     request so to do, or in case an Event of Default under the Indenture has
     occurred and is continuing, the Property Trustee alone shall have power to
     make such appointment.  (Section 8.09).

        Form, Exchange, and Transfer

        Preferred Securities will be issuable only in fully registered form each
     having a liquidation preference amount of $25 and any integral multiple
     thereof.

        At the option of the Holder, subject to the terms of the Trust
     Agreement, Preferred Securities will be exchangeable for other Preferred
     Securities, of any authorized denomination and of like tenor and aggregate
     liquidation preference.

        Subject to the terms of the Trust Agreement, Preferred Securities may be
     presented for exchange as provided above or for registration of transfer
     (duly endorsed or accompanied by a duly executed instrument of transfer) at
     the office of the Transfer Agent designated for such purpose.  The
     Administrative Trustees may designate the Company as Transfer Agent and as
     Registrar.  No service charge will be made for any registration of transfer
     or exchange of Preferred Securities, but the Company may require payment of
     a sum sufficient to cover any tax or other governmental charge payable in
     connection therewith.  Such transfer or exchange will be effected upon the
     Transfer Agent being satisfied with the documents of title and identity of
     the person making the request.  The Administrative Trustees may at any time
     designate additional Transfer Agents or rescind the designation of any
     Transfer Agent or approve a change in the office through which any Transfer
     Agent acts.

        MP&L Capital will not be required to (i) issue, register the transfer
     of, or exchange any Preferred Securities during a period beginning at the
     opening of business 15 calendar days before the day of mailing of a notice
     of redemption of any Preferred Securities called for redemption and ending
     at the close of business on the day of such mailing or (ii) register the
     transfer of or exchange any Preferred Securities so selected for
     redemption, in whole or in part, except the unredeemed portion of any such
     Preferred Securities being redeemed in part.

        Registrar and Transfer Agent

        Initially, The Bank of New York will act as Registrar and Transfer Agent
     for the Preferred Securities.

        Registration of transfers of Preferred Securities will be effected
     without charge by or on behalf of MP&L Capital, but upon payment (with the
     giving of such indemnity as MP&L Capital or the Company may require) in
     respect of any tax or other governmental charges which may be imposed in
     relation to it.

        MP&L Capital will not be required to register or cause to be registered
     any transfer of Preferred Securities after they have been called for
     redemption except the unredeemed portion of any Preferred Securities being
     redeemed in part.

        Concerning the Property Trustee

        The Company maintains deposit accounts and conducts other banking
     transactions with the Property Trustee in the ordinary course of their
     businesses.  The Property Trustee also acts as the Guarantee Trustee under
     the Guarantee, the Debenture Trustee under the Indenture and trustee under
     the Company's Mortgage and Deed of Trust with respect to all of the
     electric generating plants and other materially important physical
     properties of the Company and substantially all other properties described
     in the Mortgage as owned by the Company, subject to certain exceptions.

        Miscellaneous

        Application will be made to list the Preferred Securities on the New
     York Stock Exchange.

        The Delaware Trustee will act as the resident trustee in the State of
     Delaware and will have no other significant duties.  The Property Trustee
     will hold the Junior Subordinated Debentures on behalf of MP&L Capital and
     will maintain a payment account with respect to the Trust Securities, and
     will also act as trustee under the Trust Agreement for the purposes of the
     Trust Indenture Act.  See "Events of Default; Notice."  The Administrative
     Trustees will administer the day to day operations of MP&L Capital.  See
     "Voting Rights."

        The Administrative Trustees are authorized and directed to conduct the
     affairs of MP&L Capital and to operate MP&L Capital so that MP&L Capital
     will not be deemed to be an "investment company" required to be registered
     under the 1940 Act or taxed as a corporation for United States federal
     income tax purposes and so that the Junior Subordinated Debentures will be
     treated as indebtedness of the Company for United States federal income tax
     purposes.  In this connection, the Administrative Trustees and the Company
     are authorized to take any action, not inconsistent with applicable law,
     the certificate of trust or the Trust Agreement, that the Administrative
     Trustees and the Company determine in their discretion to be necessary or
     desirable for such purposes, as long as such action does not materially
     adversely affect the interests of the Holders of the Preferred Securities.

        Holders of the Preferred Securities have no preemptive or similar
     rights.

                             DESCRIPTION OF THE GUARANTEE

        Set forth below is a summary of information concerning the Guarantee
     that will be executed and delivered by the Company for the benefit of the
     Holders from time to time of Preferred Securities.  The Guarantee will be
     qualified as an indenture under the Trust Indenture Act.  The Bank of New
     York will act as Guarantee Trustee under the Guarantee for the purposes of
     compliance with the Trust Indenture Act.  The terms of the Guarantee will
     be those set forth in such Guarantee and those made part of such Guarantee
     by the Trust Indenture Act.  The summary does not purport to be complete
     and is subject in all respects to the provisions of, and is qualified in
     its entirety by reference to, the Guarantee, which is filed as an exhibit
     to the Registration Statement of which this Prospectus forms a part, and
     the Trust Indenture Act.  The Guarantee Trustee will hold the Guarantee for
     the benefit of the Holders of the Preferred Securities.

        General

        The Company will fully and unconditionally agree, to the extent set
     forth herein, to pay the Guarantee Payments (as defined herein) in full to
     the Holders of the Preferred Securities (except to the extent paid by or on
     behalf of MP&L Capital), as and when due, regardless of any defense, right
     of set-off or counterclaim that the Company may have or assert.  The
     following payments with respect to the Preferred Securities, to the extent
     not paid by or on behalf of MP&L Capital (the "Guarantee Payments"), will
     be subject to the Guarantee (without duplication): (i) any accrued and
     unpaid Distributions required to be paid on the Preferred Securities, to
     the extent the Property Trustee has available in the payment account
     sufficient funds to make such payment, (ii) the Redemption Price with
     respect to any Preferred Securities called for redemption by MP&L Capital,
     to the extent the Property Trustee has available in the payment account
     sufficient funds to make such payment and (iii) upon a voluntary or
     involuntary dissolution, winding-up or termination of MP&L Capital (other
     than in connection with a redemption of all of the Preferred Securities),
     the lesser of (a) the aggregate of the liquidation preference amount and
     all accrued and unpaid Distributions on the Preferred Securities to the
     date of payment and (b) the amount of assets of MP&L Capital remaining
     available for distribution to Holders of Preferred Securities in
     liquidation of MP&L Capital.  The Company's obligation to make a Guarantee
     Payment may be satisfied by direct payment of the required amounts by the
     Company to the Holders of Preferred Securities or by causing MP&L Capital
     to pay such amounts to such Holders.

        The Guarantee will be a guarantee with respect to the Preferred
     Securities issued by MP&L Capital from the time of issuance of the
     Preferred Securities, but will not apply to (i) any payment of
     Distributions if and to the extent that MP&L Capital does not have funds
     available to make such payments, or (ii) collection of payment.  If the
     Company does not make interest payments on the Junior Subordinated
     Debentures held by MP&L Capital, MP&L Capital will not have funds available
     to pay Distributions on the Preferred Securities.  The Guarantee will rank
     subordinate and junior in right of payment to all liabilities of the
     Company (except those made pari passu by their terms).  See "Status of the
     Guarantee."  The Company has agreed in the Expense Agreement to provide
     funds to MP&L Capital as needed to pay obligations of MP&L Capital to
     parties other than Holders of Trust Securities.  The Junior Subordinated
     Debentures and the Guarantee, together with the obligations of the Company
     with respect to the Preferred Securities under the Indenture, the Trust
     Agreement, the Guarantee and the Expense Agreement constitute a full and
     unconditional guarantee of the Preferred Securities by the Company.  No
     single document standing alone or operating in conjunction with fewer than
     all of the other documents constitutes such guarantee.  It is only the
     combined operation of these documents that has the effect of providing a
     full and unconditional guarantee by the Company of the Preferred
     Securities.

        Amendments and Assignment

        Except with respect to any changes that do not materially adversely
     affect the rights of Holders of Preferred Securities (in which case no vote
     will be required), the terms of the Guarantee may be changed only with the
     prior approval of the Holders of Preferred Securities having at least 66
     2/3% of the liquidation preference amount of the outstanding Preferred
     Securities.  All guarantees and agreements contained in the Guarantee shall
     bind the successors, assigns, receivers, trustees and representatives of
     the Company and shall inure to the benefit of the Holders of the Preferred
     Securities then outstanding.

        Events of Default

        An event of default under the Guarantee will occur upon the failure of
     the Company to perform any of its payment obligations thereunder.  The
     Holders of Preferred Securities having a majority of the liquidation
     preference of the Preferred Securities have the right to direct the time,
     method and place of conducting any proceeding for any remedy available to
     the Guarantee Trustee in respect of the Guarantee or to direct the exercise
     of any trust or power conferred upon the Guarantee Trustee under the
     Guarantee.

        Any Holder of Preferred Securities may institute a legal proceeding
     directly against the Company to enforce its rights under the Guarantee
     without first instituting a legal proceeding against MP&L Capital, the
     Guarantee Trustee or any other person or entity.

        The Company, as Guarantor, will be required to provide annually to the
     Guarantee Trustee a statement as to the performance by the Company of
     certain of its obligations under the Guarantee and as to any default in
     such performance and an officer's certificate as to the Company's
     compliance with all conditions under the Guarantee.

        Information Concerning the Guarantee Trustee

        The Guarantee Trustee, prior to the occurrence of a default by the
     Company in performance of the Guarantee, has undertaken to perform only
     such duties as are specifically set forth in the Guarantee and, after
     default with respect to the Guarantee, must exercise the same degree of
     care as a prudent individual would exercise in the conduct of his or her
     own affairs.  Subject to this provision, the Guarantee Trustee is under no
     obligation to exercise any of the powers vested in it by the Guarantee at
     the request of any Holder of Preferred Securities unless it is offered
     reasonable indemnity against the costs, expenses and liabilities that might
     be incurred thereby.  See "Description of the Preferred Securities --
     Concerning the Property Trustee."

        Termination of the Guarantee

        The Guarantee will terminate and be of no further force and effect upon
     full payment of the Redemption Price of all Preferred Securities, the
     distribution of Junior Subordinated Debentures to Holders of Preferred
     Securities in exchange for all of the Preferred Securities or full payment
     of the amounts payable upon liquidation of MP&L Capital.  The Guarantee
     will continue to be effective or will be reinstated, as the case may be, if
     at any time any Holder of Preferred Securities must restore payment of any
     sums paid under the Preferred Securities or the Guarantee.

        Status of the Guarantee

        The Guarantee will constitute an unsecured obligation of the Company and
     will rank (i) subordinate and junior in right of payment to all liabilities
     of the Company (except liabilities that may be made pari passu by their
     terms), (ii) pari passu with the most senior preferred or preference stock
     now or hereafter issued by the Company and with any guarantee now or
     hereafter entered into by the Company in respect of any preferred or
     preference stock of any affiliate of the Company and (iii) senior to the
     Company's common stock.  The Trust Agreement provides that each Holder of
     Preferred Securities by acceptance thereof agrees to the subordination
     provisions and other terms of the Guarantee.

        The Guarantee will constitute a guarantee of payment and not of
     collection (i.e., the guaranteed party may institute a legal proceeding
     directly against the Guarantor to enforce its rights under the Guarantee
     without first instituting a legal proceeding against any other person or
     entity).

        Governing Law

        The Guarantee will be governed by and construed in accordance with the
     laws of the State of New York.

                  DESCRIPTION OF THE JUNIOR SUBORDINATED DEBENTURES

        Set forth below is a description of the specific terms of the Junior
     Subordinated Debentures which MP&L Capital will hold as trust assets.  The
     following description does not purport to be complete and is qualified in
     its entirety by reference to the description in the Indenture between the
     Company and the Trustee with respect to the Junior Subordinated Debentures
     (the "Debenture Trustee"), which is filed as an exhibit to the Registration
     Statement of which this Prospectus forms a part.  Whenever particular
     provisions or defined terms in the Indenture are referred to herein, such 
    provisions or defined terms are incorporated by reference herein.  Section
     references used herein are references to provisions of the Indenture unless
     otherwise noted.

        The Indenture provides for the issuance of debentures (including the
     Junior Subordinated Debentures), notes or other evidence of indebtedness by
     the Company (each a "Debt Security") in an unlimited amount from time to
     time.  The Junior Subordinated Debentures constitute a separate series
     under the Indenture.

        General

        The Junior Subordinated Debentures will be limited in aggregate
     principal amount to the sum of the aggregate liquidation preference amount
     of the Preferred Securities and the consideration paid by the Company for
     the Common Securities and will have terms similar to the terms of the
     Preferred Securities.  The Junior Subordinated Debentures are unsecured,
     subordinated obligations of the Company which rank junior to all of the
     Company's Senior Indebtedness.  The Junior Subordinated Debentures will
     bear interest at the same rate, payable at the same times, as the
     distributions payable on the Trust Securities, and will have a maturity and
     redemption provisions correlative to those of the Trust Securities.

        The entire outstanding principal amount of the Junior Subordinated
     Debentures will become due and payable, together with any accrued and
     unpaid interest thereon, including Additional Interest (as defined herein),
     if any, on December 31, 2015.  The amounts payable as principal and
     interest on the Junior Subordinated Debentures will be sufficient to
     provide for payment of Distributions payable on the Trust Securities. 

        The Articles of Incorporation of the Company limit the amount of
     unsecured indebtedness with a maturity of more than one year that the
     Company may create or assume, without the consent of the Holders of a
     majority of the total number of shares of preferred stock then outstanding,
     to not more than 25% of the aggregate of the sum of the principal amount of
     the secured indebtedness of the Company and the capital stock and surplus
     of the Company as stated on the Company's books of account.  At December
     31, 1995, the Company could have issued approximately $249 million of
     unsecured indebtedness (such as the Junior Subordinated Debentures) without
     violating this provision.

          Also under the Articles of Incorporation, the creation or assumption
     of unsecured indebtedness with a maturity of more than one year requires
     that net earnings available for the payment of interest for 12 consecutive
     out of the preceding 15 months be at least twice the annual interest
     requirements on all outstanding indebtedness of the Company, including the
     indebtedness to be created or assumed.  At December 31, 1995, the Company
     could have issued an additional $141 million of unsecured indebtedness,
     including the Junior Subordinated Debentures, at an assumed annual interest
     rate of 7.75%, without violating this provision.

        If Junior Subordinated Debentures are distributed to Holders of
     Preferred Securities in a termination of MP&L Capital, such Junior
     Subordinated Debentures will be issued in fully registered certificated
     form in denominations of $25 and integral multiples thereof and may be
     transferred or exchanged at the offices described below.

        Payments of principal and interest on Junior Subordinated Debentures
     will be payable, the transfer of Junior Subordinated Debenture will be
     registrable, and Junior Subordinated Debentures will be exchangeable for
     Junior Subordinated Debentures of other denominations of a like aggregate
     principal amount, at the corporate trust office of the Debenture Trustee in
     The City of New York; provided that payment of interest may be made at the
     option of the Company by check mailed to the address of the persons
     entitled thereto and that the payment in full of principal with respect to
     any Junior Subordinated Debenture will be made only upon surrender of such
     Junior Subordinated Debenture to the Debenture Trustee.

        Optional Redemption

        On or after March 20, 2001, the Company will have the right, at any
     time and from time to time, to redeem the Junior Subordinated Debentures,
     in whole or in part, at a redemption price equal to 100% of the principal
     amount of the Junior Subordinated Debentures being redeemed, together with
     any accrued but unpaid interest, including Additional Interest, if any, to
     the Redemption Date.

        If a Special Event shall occur and be continuing, the Company shall have
     the right to redeem the Junior Subordinated Debentures, in whole but not in
     part, at a redemption price equal to 100% of the principal amount of Junior
     Subordinated Debentures then outstanding plus any accrued and unpaid
     interest, including Additional Interest, if any, to the Redemption Date. 
     The Junior Subordinated Debentures will be subject to optional redemption
     in whole but not in part upon the termination and liquidation of MP&L
     Capital pursuant to an order for the dissolution, termination or
     liquidation of MP&L Capital entered by a court of competent jurisdiction.

        For so long as MP&L Capital is the Holder of all the outstanding Junior
     Subordinated Debentures, the proceeds of any such redemption will be used
     by MP&L Capital to redeem Preferred Securities and Common Securities in
     accordance with their terms.  The Company may not redeem less than all the
     Junior Subordinated Debentures unless all accrued and unpaid interest
     (including any Additional Interest) has been paid in full on all
     outstanding Junior Subordinated Debentures for all quarterly interest
     periods terminating on or prior to the date of redemption.

        Any optional redemption of Junior Subordinated Debentures shall be made
     upon not less than 30 nor more than 60 days' notice from the Debenture
     Trustee to the Holders of Junior Subordinated Debentures, as provided in
     the Indenture.  All notices of redemption shall state the Redemption Date,
     the redemption price plus accrued and unpaid distributions, if less than
     all the Junior Subordinated Debentures are to be redeemed, the
     identification of those to be redeemed and the portion of the principal
     amount of any Junior Subordinated Debentures to be redeemed in part; that
     on the Redemption Date, subject to the Debenture Trustee's receipt of the
     redemption monies, the redemption price plus accrued and unpaid
     distributions will become due and payable upon each such Junior
     Subordinated Debentures to be redeemed and that interest thereon will cease
     to accrue on and after said date; and the place or places where such
     securities are to be surrendered for payment of the redemption price plus
     accrued and unpaid distributions.

        Interest

        The Junior Subordinated Debentures shall bear interest at the rate of  
     8.05% per annum.  Such interest is payable quarterly in arrears on March
     31, June 30, September 30 and December 31 of each year (each, an "Interest
     Payment Date"), commencing March 31, 1996, to the person in whose name
     each Junior Subordinated Debenture is registered, by the close of business
     on the Business Day 15 days preceding such Interest Payment Date.  It is
     anticipated that MP&L Capital will be the sole Holder of the Junior
     Subordinated Debentures.

        The amount of interest payable for any period will be computed on the
     basis of a 360-day year of twelve 30-day months and for any period shorter
     than a full month, on the basis of the actual number of days elapsed
     (Section 310).  In the event that any date on which interest is payable on
     the Junior Subordinated Debentures is not a Business Day, then payment of
     the interest payable on such date will be made on the next succeeding day
     which is a Business Day (and without any interest or other payment in
     respect of any such delay), except that, if such Business Day is in the
     next succeeding calendar year, such payment shall be made on the
     immediately preceding Business Day, in each case with the same force and
     effect as if made on the date the payment was originally payable (Section
     113).

        Option to Extend Interest Payment Period

        The Company has the right under the Indenture to extend the interest
     payment period from time to time on the Junior Subordinated Debentures to a
     period not exceeding 20 consecutive quarters during which period interest
     will be compounded quarterly.  At the end of an Extension Period, the
     Company must pay all interest then accrued and unpaid (together with
     interest thereon at the rate specified for the Junior Subordinated
     Debentures compounded quarterly, to the extent permitted by applicable
     law).  However, during any such Extension Period, the Company shall not (i)
     declare or pay any dividend or distribution (other than a dividend or
     distribution in Common Stock of the Company) on, or redeem, purchase,
     acquire or make a liquidation payment with respect to, any of its capital
     stock or (ii) make any payment of principal of, interest or premium, if
     any, on, or repay, repurchase or redeem any indebtedness that is pari passu
     with the Junior Subordinated Debentures (including other Debt Securities),
     or make any guarantee payments with respect to the foregoing.  Prior to the
     termination of any such Extension Period, the Company may further extend
     the interest payment period, provided that such Extension Period together
     with all such previous and further extensions thereof shall not exceed 20
     consecutive quarters at any one time or extend beyond the maturity date of
     the Junior Subordinated Debentures.  Any extension period with respect to
     payment of interest on the Junior Subordinated Debentures, other Debt
     Securities or on any similar securities will apply to all such securities
     and will also apply to Distributions with respect to the Preferred
     Securities and all other securities with terms substantially the same as
     the Preferred Securities.  Upon the termination of any such Extension
     Period and the payment of all amounts then due, the Company may select a
     new Extension Period, subject to the above requirements.  No interest shall
     be due and payable during an Extension Period, except at the end thereof. 
     The Company will give MP&L Capital and the Debenture Trustee notice of its
     election of an Extension Period prior to the earlier of (i) one Business
     Day prior to the record date for the distribution which would occur but for
     such election or (ii) the date the Company is required to give notice to
     the NYSE or other applicable self-regulatory organization of the record
     date and will cause MP&L Capital to send notice of such election to the
     Holders of Preferred Securities.

        Additional Interest

        So long as any Preferred Securities remain outstanding, if MP&L Capital
     would be required to pay, with respect to its income derived from the
     interest payments on the Junior Subordinated Debentures any amounts for or
     on account of any taxes, duties, assessments or governmental charges of
     whatever nature imposed by the United States, or any other taxing
     authority, then, in any such case, the Company will pay as interest on such
     Junior Subordinated Debentures such additional interest (the "Additional
     Interest") as may be necessary in order that the net amounts received and
     retained by MP&L Capital after the payment of such taxes, duties,
     assessments or governmental charges shall result in the MP&L Capital's
     having such funds as it would have had in the absence of the payment of
     such taxes, duties, assessments or governmental charges.

        Defeasance

        The principal amount of any series of Debt Securities issued under the
     Indenture will be deemed to have been paid for purposes of the Indenture
     and the entire indebtedness of the Company in respect thereof will be
     deemed to have been satisfied and discharged, if there shall have been
     irrevocably deposited with the Debenture Trustee or any paying agent, in
     trust:  (a) money in an amount which will be sufficient, or (b) in the case
     of a deposit made prior to the maturity of the Junior Subordinated
     Debentures, Government Obligations (as defined herein), which do not
     contain provisions permitting the redemption or other prepayment thereof at
     the option of the issuer thereof, the principal of and the interest on
     which when due, without any regard to reinvestment thereof, will provide
     moneys which, together with the money, if any, deposited with or held by
     the Debenture Trustee, will be sufficient, or (c) a combination of (a) and
     (b) which will be sufficient, to pay when due the principal of and premium,
     if any, and interest, if any, due and to become due on the Debt Securities
     of such series that are outstanding.  For this purpose, Government
     Obligations, include direct obligations of, or obligations unconditionally
     guaranteed by, the United States of America entitled to the benefit of the
     full faith and credit thereof and certificates, depositary receipts or
     other instruments which evidence a direct ownership interest in such
     obligations or in any specific interest or principal payments due in
     respect thereof.

        It is possible that for United States federal income tax purposes any
     deposit contemplated in the preceding paragraph could be treated as a
     taxable exchange of the Junior Subordinated Debentures outstanding for an
     issue of obligations of MP&L Capital or a direct interest in the cash and
     securities held by MP&L Capital.  In that case, Holders of the Junior
     Subordinated Debentures outstanding would recognize a gain or loss for
     federal income tax purposes, as if their share of MP&L Capital obligations
     or the cash or securities deposited, as the case may be, had actually been
     received by them in exchange for their Junior Subordinated Debentures.  In
     addition, such Holders thereafter would be required to include in income a
     share of the income, gain or loss of MP&L Capital.  The amount so required
     to be included in income could be different from the amount that would be
     includable in the absence of such deposit.  Prospective investors are urged
     to consult their own tax advisors as to the specific consequences to them
     of any such deposit.

        Subordination

        The Junior Subordinated Debentures will be subordinate and junior in
     right of payment to all Senior Indebtedness of the Company to the extent
     provided in the Indenture.  No payment of principal of (including
     redemption and sinking fund payments), or interest on, the Junior
     Subordinated Debentures may be made (i) upon the occurrence of certain
     events of bankruptcy, insolvency or reorganization, (ii) if any Senior
     Indebtedness is not paid when due, (iii) if any other default has occurred
     pursuant to which the Holders of Senior Indebtedness have accelerated the
     maturity thereof and with respect to (ii) and (iii), such default has not
     been cured or waived, or (iv) if the maturity of any series of Debt
     Securities has been accelerated, because of an event of default with
     respect thereto, which remains uncured.  Upon any payment or distribution
     of assets of the Company to creditors upon any dissolution, winding-up,
     liquidation or reorganization, whether voluntary or involuntary or in
     bankruptcy, insolvency, receivership or other proceedings, all principal
     of, and premium, if any, and interest due or to become due on, all Senior
     Indebtedness must be paid in full before the Holders of the Junior
     Subordinated Debentures are entitled to receive or retain any payment
     thereon. (Section 1502).  Subject to the prior payment of all Senior
     Indebtedness, the rights of the Holders of the Junior Subordinated
     Debentures will be subrogated to the rights of the Holders of Senior
     Indebtedness to receive payments or distributions applicable to Senior
     Indebtedness until all amounts owing on the Junior Subordinated Debentures
     are paid in full. (Section 1504).

        The term Senior Indebtedness is defined in the Indenture to mean all
     obligations (other than non-recourse obligations and the indebtedness
     issued under the Indenture) of, or guaranteed or assumed by, the Company
     for borrowed money, including both senior and subordinated indebtedness for
     borrowed money (other than the Debt Securities), or for the payment of
     money relating to any lease which is capitalized on the consolidated
     balance sheet of the Company and its subsidiaries in accordance with
     generally accepted accounting principles as in effect from time to time, or
     evidenced by bonds, debentures, notes or other similar instruments, and in
     each case, amendments, renewals, extensions, modifications and refundings
     of any such indebtedness or obligations, whether existing as of the date of
     this Indenture or subsequently incurred by the Company unless, in the case
     of any particular indebtedness, renewal, extension or refunding, the
     instrument creating or evidencing the same or the assumption or guarantee
     of the same expressly provides that such indebtedness, renewal, extension
     or refunding is not superior in right of payment to or is pari passu with
     the Junior Subordinated Debentures; provided that the Company's obligations
     under the Guarantee shall not be deemed to be Senior Indebtedness. (Section
     101).

        The Indenture does not limit the aggregate amount of Senior Indebtedness
     that may be issued.  As of December 31, 1995, the Company had approximately
     $790 million principal amount of indebtedness for borrowed money
     constituting Senior Indebtedness.

        Consolidation, Merger, and Sale of Assets

        Under the terms of the Indenture, the Company may not consolidate with
     or merge into any other entity or convey, transfer or lease its properties
     and assets substantially as an entirety to any entity, unless (i) the
     corporation formed by such consolidation or into which the Company is
     merged or the entity which acquires by conveyance or transfer, or which
     leases, the property and assets of the Company substantially as an entirety
     shall be a entity organized and validly existing under the laws of any
     domestic jurisdiction and such entity expressly assumes the Company's
     obligations on all Debt Securities and under the Indenture,
     (ii) immediately after giving effect to the transaction, no Event of
     Default, and no event which, after notice or lapse of time or both, would
     become an Event of Default, shall have occurred and be continuing, and
     (iii) the Company shall have delivered to the Debenture Trustee an
     Officer's Certificate and an Opinion of Counsel as provided in the
     Indenture. (Section 1101).

        Events of Default

        Each of the following will constitute an Event of Default under the
     Indenture with respect to the Debt Securities of any series:  (a) failure
     to pay any interest on the Debt Securities of such series within 30 days
     after the same becomes due and payable, provided that deferral of payment
     during an Extension Period will not constitute an Event of Default; (b)
     failure to pay principal or premium, if any, on the Debt Securities of such
     series when due and payable; (c) failure to perform, or breach of, any
     other covenant or warranty of the Company in the Indenture (other than a
     covenant or warranty of the Company in the Indenture solely for the benefit
     of one or more series of Debt Securities other than such series) for 60
     days after written notice to the Company by the Debenture Trustee, or to
     the Company and the Debenture Trustee by the Holders of at least 33% in
     principal amount of the Debt Securities of such series outstanding under
     the Indenture as provided in the Indenture; (d) the entry by a court having
     jurisdiction in the premises of (1) a decree or order for relief in respect
     of the Company in an involuntary case or proceeding under any applicable
     Federal or state bankruptcy, insolvency, reorganization or other similar
     law or (2) a decree or order adjudging the Company a bankrupt or insolvent,
     or approving as properly filed a petition by one or more Persons other than
     the Company seeking reorganization, arrangement, adjustment or composition
     of or in respect of the Company under any applicable Federal or state law,
     or appointing a custodian, receiver, liquidator, assignee, trustee,
     sequestrator or other similar official for the Company or for any
     substantial part of its property, or ordering the winding up or liquidation
     of its affairs, and any such decree or order for relief or any such other
     decree or order shall have remained unstayed and in effect for a period of
     90 consecutive days; and (e) the commencement by the Company of a voluntary
     case or proceeding under any applicable Federal or state bankruptcy,
     insolvency, reorganization or other similar law or of any other case or
     proceeding to be adjudicated a bankrupt or insolvent, or the consent by it
     to the entry of a decree or order for relief in respect of the Company in a
     case or other similar proceeding or to the commencement of any bankruptcy
     or insolvency case or proceeding against it under any applicable Federal or
     state law or the filing by it of a petition or answer or consent seeking
     reorganization or relief under any applicable Federal or state law, or the
     consent by it to the filing of such petition or to the appointment of or
     taking possession by a custodian, receiver, liquidator, assignee, trustee,
     sequestrator or similar official of the Company or of any substantial part
     of its property, or the making by it of an assignment for the benefit of
     creditors, or the admission by it in writing of its inability to pay its
     debts generally as they become due, or the authorization of such action by
     the Board of Directors. (Section 801).

        An Event of Default with respect to the Debt Securities of a particular
     series may not necessarily constitute an Event of Default with respect to
     Debt Securities of any other series issued under the Indenture.

        If an Event of Default due to the default in payment of principal of or
     interest on any series of Debt Securities or due to the default in the
     performance or breach of any other covenant or warranty of the Company
     applicable to the Debt Securities of such series but not applicable to all
     series occurs and is continuing, then either the Trustee or the Holders of
     33% in principal amount of the outstanding Debt Securities of such series
     may declare the principal of all of the Debt Securities of such series and
     interest accrued thereon to be due and payable immediately (subject to the
     subordination provisions of the Indenture).  If an Event of Default due to
     the default in the performance of any other covenants or agreements in the
     Indenture applicable to all outstanding Debt Securities or due to certain
     events of bankruptcy, insolvency or reorganization of the Company has
     occurred and is continuing, either the Trustee or the Holders of not less
     than 33% in principal amount of all outstanding Debt Securities, considered
     as one class, and not the Holders of the Debt Securities of any one of such
     series may make such declaration of acceleration (subject to the
     subordination provisions of the Indenture).

        At any time after the declaration of acceleration with respect to the
     Debt Securities of any series has been made and before a judgment or decree
     for payment of the money due has been obtained, the Event or Events of
     Default giving rise to such declaration of acceleration will, without
     further act, be deemed to have been waived, and such declaration and its
     consequences will, without further act, be deemed to have been rescinded
     and annulled, if

        (a)  the Company has paid or deposited with the Debenture Trustee a sum
     sufficient to pay

          (1)  all overdue interest on all Debt Securities of such series;

          (2)  the principal of and premium, if any, on any Debt Securities of
     such series which have become due otherwise than by such declaration of
     acceleration and interest thereon at the rate or rates prescribed therefor
     in such Debt Securities;

          (3)  interest upon overdue interest at the rate or rates prescribed
     therefor in such Debt Securities, to the extent that payment of such
     interest is lawful; and

          (4)  all amounts due to the Debenture Trustee under the Indenture; and

        (b)  any other Event or Events of Default with respect to Debt
     Securities of such series, other than the nonpayment of the principal of
     the Debt Securities of such series which has become due solely by such
     declaration of acceleration, have been cured or waived as provided in the
     Indenture. (Section 802).

        Subject to the provisions of the Indenture relating to the duties of the
     Debenture Trustee in case an Event of Default shall occur and be
     continuing, the Debenture Trustee will be under no obligation to exercise
     any of its rights or powers under the Indenture at the request or direction
     of any of the Holders of the Junior Subordinated Debentures, unless such
     Holders shall have offered to the Debenture Trustee reasonable indemnity.
     (Section 903).  If an Event of Default has occurred and is continuing in
     respect of a series of Debt Securities, subject to such provisions for the
     indemnification of the Debenture Trustee, the Holders of a majority in
     principal amount of the outstanding Debt Securities of such series will
     have the right to direct the time, method and place of conducting any
     proceeding for any remedy available to the Debenture Trustee, or exercising
     any trust or power conferred on the Debenture Trustee, with respect to the
     Debt Securities of such series; provided, however, that if an Event of
     Default occurs and is continuing with respect to more than one series of
     Debt Securities, the Holders of a majority in aggregate principal amount of
     the outstanding Debt Securities of all such series, considered as one
     class, will have the right to make such direction, and not the Holders of
     the Debt Securities of any one of such series; and provided, further, that
     such direction will not be in conflict with any rule of law or with the
     Indenture. (Section 812).

        No Holder of Debt Securities of any series will have any right to
     institute any proceeding with respect to the Indenture, or for the
     appointment of a receiver or a trustee, or for any other remedy thereunder,
     unless (i) such Holder has previously given to the Debenture Trustee
     written notice of a continuing Event of Default with respect to the Debt
     Securities of such series, (ii) the Holders of not less than a majority in
     aggregate principal amount of the outstanding Debt Securities of all series
     in respect of which an Event of Default shall have occurred and be
     continuing, considered as one class, have made written request to the
     Debenture Trustee, and such Holder or Holders have offered reasonable
     indemnity to the Debenture Trustee to institute such proceeding in respect
     of such Event of Default in its own name as trustee and (iii) the Debenture
     Trustee has failed to institute any proceeding, and has not received from
     the Holders of a majority in aggregate principal amount of the outstanding
     Debt Securities of such series a direction inconsistent with such request,
     within 60 days after such notice, request and offer. (Section 807). 
     However, such limitations do not apply to a suit instituted by a Holder of
     a Debt Security for the enforcement of payment of the principal of or any
     premium or interest on such Debt Security on or after the applicable due
     date specified in such Debt Security. (Section 808).

        The Company will be required to furnish to the Debenture Trustee
     annually a statement by an appropriate officer as to such officer's
     knowledge of the Company's compliance with all conditions and covenants
     under the Indenture, such compliance to be determined without regard to any
     period of grace or requirement of notice under the Indenture. (Section
     606).

        Modification and Waiver

        Without the consent of any Holder of Debt Securities, the Company and
     the Debenture Trustee may enter into one or more supplemental indentures
     for any of the following purposes: (a) to evidence the assumption by any
     permitted successor to the Company of the covenants of the Company in the
     Indenture and in the Debt Securities; or (b) to add one or more covenants
     of the Company or other provisions for the benefit of the Holders of
     outstanding Debt Securities or to surrender any right or power conferred
     upon the Company by the Indenture; or (c) to add any additional Events of
     Default with respect to outstanding Debt Securities; or (d) to change or
     eliminate any provision of the Indenture or to add any new provision to the
     Indenture, provided that if such change, elimination or addition will 
     adversely affect the interests of the Holders of Debt Securities of any
     series in any material respect, such change, elimination or addition will
     become effective with respect to such series only (1) when the consent of
     the Holders of Debt Securities of such series has been obtained in
     accordance with the Indenture, or (2) when no Debt Securities of such
     series remain outstanding under the Indenture; or (e) to provide collateral
     security for all but not part of the Debt Securities; (f) to establish the
     form or terms of Debt Securities of any other series as permitted by the
     Indenture; or (g) to provide for the authentication and delivery of bearer
     securities and coupons appertaining thereto representing interest, if any,
     thereon and for the procedures for the registration, exchange and
     replacement thereof and for the giving of notice to, and the solicitation
     of the vote or consent of, the Holders thereof, and for any and all other
     matters incidental thereto; or (h) to evidence and provide for the
     acceptance of appointment of a successor Debenture Trustee under the
     Indenture with respect to the Debt Securities of one or more series and to
     add to or change any of the provisions of the Indenture as shall be
     necessary to provide for or to facilitate the administration of the trusts
     under the Indenture by more than one trustee; or (i)  to provide for the
     procedures required to permit the utilization of a noncertificated system
     of registration for the Debt Securities of all or any series; or (j) to
     change any place where (1) the principal of and premium, if any, and
     interest, if any, on all or any series of Debt Securities shall be payable,
     (2) all or any series of Debt Securities may be surrendered for
     registration of transfer or exchange and (3) notices and demands to or upon
     the Company in respect of Debt Securities and the Indenture may be served;
     or (k) to cure any ambiguity or inconsistency or to add or change any other
     provisions with respect to matters and questions arising under the
     Indenture, provided such changes or additions shall not adversely affect
     the interests of the Holders of Debt Securities of any series in any
     material respect. (Section 1201).

        The Holders of at least a majority in aggregate principal amount of the
     Debt Securities of all series then outstanding may waive compliance by the
     Company with certain restrictive provisions of the Indenture. (Section
     607).  The Holders of not less than a majority in principal amount of the
     outstanding Debt Securities of any series may waive any past default under
     the Indenture with respect to such series, except a default in the payment
     of principal, premium, or interest and certain covenants and provisions of
     the Indenture that cannot be modified or be amended without the consent of
     the Holder of each outstanding Debt Security of such series affected.
     (Section 813).

        Without limiting the generality of the foregoing, if the Trust Indenture
     Act is amended after the date of the Indenture in such a way as to require
     changes to the Indenture or the incorporation therein of additional
     provisions or so as to permit changes to, or the elimination of, provisions
     which, at the date of the Indenture or at any time thereafter, were
     required by the Trust Indenture Act to be contained in the Indenture, the
     Indenture will be deemed to have been amended so as to conform to such
     amendment of the Trust Indenture Act or to effect such changes, additions
     or elimination, and the Company and the Debenture Trustee may, without the
     consent of any Holders, enter into one or more supplemental indentures to
     evidence or effect such amendment. (Section 1201).

        Except as provided above, the consent of the Holders of not less than a
     majority in aggregate principal amount of the Debt Securities of all series
     then outstanding, considered as one class, is required for the purpose of
     adding any provisions to, or changing in any manner, or eliminating any of
     the provisions of, the Indenture or modifying in any manner the rights of
     the Holders of such Debt Securities under the Indenture pursuant to one or
     more supplemental indentures; provided, however, that if less than all of
     the series of Debt Securities outstanding are directly affected by a
     proposed supplemental indenture, then the consent only of the Holders of a
     majority in aggregate principal amount of outstanding Debt Securities of
     all series so directly affected, considered as one class, will be required;
     and provided further, that no such amendment or modification may (a) change
     the Stated Maturity of the principal of, or any installment of principal of
     or interest on, any Debt Security, or reduce the principal amount thereof
     or the rate of interest thereon (or the amount of any installment of
     interest thereon) or change the method of calculating such rate or reduce
     any premium payable upon the redemption thereof, or change the coin or
     currency (or other property) in which any Debt Security or any premium or
     the interest thereon is payable, or impair the right to institute suit for
     the enforcement of any such payment on or after the Stated Maturity of any
     Debt Security (or, in the case of redemption, on or after the Redemption
     Date) without, in any such case, the consent of the Holder of such Debt
     Security, (b) reduce the percentage in principal amount of the outstanding
     Debt Security of any series, (or, if applicable, in liquidation preference
     of Preferred Securities) the consent of the Holders of which is required
     for any such supplemental indenture, or the consent of the Holders of which
     is required for any waiver of compliance with any provision of the
     Indenture or any default thereunder and its consequences, or reduce the
     requirements for quorum or voting, without, in any such case, the consent
     of the Holder of each outstanding Debt Security of such series, or (c)
     modify certain of the provisions of the Indenture relating to supplemental
     indentures, waivers of certain covenants and waivers of past defaults with
     respect to the Debt Security of any series, without the consent of the
     Holder of each outstanding Junior Subordinated Debenture affected thereby. 
     A supplemental indenture which changes or eliminates any covenant or other
     provision of the Indenture which has expressly been included solely for the
     benefit of one or more particular series of Debt Securities, or modifies
     the rights of the Holders of Debt Securities of such series with respect to
     such covenant or other provision, will be deemed not to affect the rights
     under the Indenture of the Holders of the Debt Securities of any other
     series. (Section 1202).

        The Indenture provides that in determining whether the Holders of the
     requisite principal amount of the outstanding Debt Securities have given
     any request, demand, authorization, direction, notice, consent or waiver
     under the Indenture, or whether a quorum is present at the meeting of the
     Holders of Debt Securities, Debt Securities owned by the Company or any
     other obligor upon the Debt Securities or any affiliate of the Company or
     of such other obligor (unless the Company, such affiliate or such obligor
     owns all Debt Securities outstanding under the Indenture, determined
     without regard to this provision) shall be disregarded and deemed not to 
     be outstanding.

        If the Company shall solicit from Holders any request, demand,
     authorization, direction, notice, consent, election, waiver or other Act,
     the Company may, at its option, fix in advance a record date for the
     determination of Holders entitled to give such request, demand,
     authorization, direction, notice, consent, waiver or other such act, but
     the Company shall have no obligation to do so.  If such a record date is
     fixed, such request, demand, authorization, direction, notice, consent,
     waiver or other Act may be given before or after such record date, but only
     the Holders of record at the close of business on such record date shall be
     deemed to be Holders for the purposes of determining whether Holders of the
     requisite proportion of the outstanding Debt Securities have authorized or
     agreed or consented to such request, demand, authorization, direction,
     notice, consent, waiver or other Act, and for that purpose the outstanding
     Debt Securities shall be computed as of the record date.  Any request,
     demand, authorization, direction, notice, consent, election, waiver or
     other Act of a Holder shall bind every future Holder of the same Debt
     Security and the Holder of every Debt Security issued upon the registration
     of transfer thereof or in exchange therefor or in lieu thereof in respect
     of anything done, omitted or suffered to be done by the Debenture Trustee
     or the Company in reliance thereon, whether or not notation of such action
     is made upon such Debt Security. (Section 104).

        Resignation of Debenture Trustee

        The Debenture Trustee may resign at any time by giving written notice
     thereof to the Company or may be removed at any time by Act of the Holders
     of a majority in principal amount of all series of Debt Securities then
     outstanding delivered to the Debenture Trustee and the Company.  No
     resignation or removal of the Debenture Trustee and no appointment of a
     successor trustee will become effective until the acceptance of appointment
     by a successor trustee in accordance with the requirements of the
     Indenture.  So long as no Event of Default or event which, after notice or
     lapse of time, or both, would become an Event of Default has occurred and
     is continuing and except with respect to a Debenture Trustee appointed by
     Act of the Holders, if the Company has delivered to the Debenture Trustee a
     resolution of its Board of Directors appointing a successor trustee and
     such successor has accepted such appointment in accordance with the terms
     of the Indenture, the Trustee will be deemed to have resigned and the
     successor will be deemed to have been appointed as trustee in accordance
     with the Indenture. (Section 910).

        Notices

        Notices to Holders of Debt Securities will be given by mail to the
     addresses of such Holders as they may appear in the security register
     therefor.

        Title

        The Company, the Debenture Trustee, and any agent of the Company or the
     Debenture Trustee, may treat the Person in whose name Debt Securities are
     registered as the absolute owner thereof (whether or not such Debt
     Securities may be overdue) for the purpose of making payments and for all
     other purposes irrespective of notice to the contrary.

        Governing Law

        The Indenture and the Debt Securities will be governed by, and construed
     in accordance with, the laws of the State of New York.

        Concerning the Debenture Trustee

        The Debenture Trustee under the Indenture is The Bank of New York.  In
     addition, The Bank of New York acts as Property Trustee under the Trust
     Agreement and as Guarantee Trustee under the Guarantee.  The Bank of New
     York (Delaware) acts as the Delaware Trustee under the Trust Agreement. 
     See "Description of the Preferred Securities -- Concerning the Property
     Trustee."

                CERTAIN UNITED STATES FEDERAL INCOME TAX CONSEQUENCES

        The following summary describes certain United States federal income tax
     consequences relevant to the purchase, ownership and disposition of
     Preferred Securities as of the date hereof and represents the opinion of
     Reid & Priest LLP, counsel to the Company, insofar as it relates to matters
     of law or legal conclusions.  Except where noted, it deals only with
     Preferred Securities held as capital assets and does not deal with special
     situations, such as those of dealers in securities or currencies, financial
     institutions, life insurance companies, persons holding Preferred
     Securities as a part of a hedging or conversion transaction or a straddle,
     United States Holders (as defined herein) whose "functional currency" is
     not the U.S. dollar, or persons who are not United States Holders.  In
     addition, this discussion does not address the tax consequences to persons
     who purchase Preferred Securities other than pursuant to their initial
     issuance and distribution.  Furthermore, the discussion below is based upon
     the provisions of the Internal Revenue Code of 1986, as amended (the
     "Code"), and regulations, rulings and judicial decisions thereunder as of
     the date hereof, and such authorities may be repealed, revoked or modified
     at any time so as to result in United States federal income tax
     consequences different from those discussed below.  These authorities are
     subject to various interpretations and it is therefore possible that the
     United States federal income tax treatment of the Preferred Securities may
     differ from the treatment described below.

        PROSPECTIVE PURCHASERS OF PREFERRED SECURITIES, INCLUDING PERSONS WHO
     ARE NOT UNITED STATES HOLDERS AND PERSONS WHO PURCHASE PREFERRED SECURITIES
     IN THE SECONDARY MARKET, ARE ADVISED TO CONSULT WITH THEIR TAX ADVISORS AS
     TO THE UNITED STATES FEDERAL INCOME TAX CONSEQUENCES OF THE PURCHASE,
     OWNERSHIP AND DISPOSITION OF PREFERRED SECURITIES IN LIGHT OF THEIR
     PARTICULAR CIRCUMSTANCES, AS WELL AS THE EFFECT OF ANY STATE, LOCAL OR
     OTHER TAX LAWS.

        United States Holders

        As used herein, a "United States Holder" means a Holder that is a
     citizen or resident of the United States, a corporation, partnership or
     other entity created or organized in or under the laws of the United States
     or any political subdivision thereof, or an estate or trust the income of
     which is subject to United States federal income taxation regardless of its
     source.

        Classification of MP&L Capital

        Reid & Priest LLP, counsel to the Company and MP&L Capital, is of the
     opinion that, under current law and assuming full compliance with the terms
     of the Indenture and the instruments establishing MP&L Capital (and certain
     other documents), MP&L Capital will be classified as a "grantor trust" for
     United States federal income tax purposes and will not be classified as an
     association taxable as a corporation.  Each Holder will be treated as
     owning an undivided beneficial interest in the Junior Subordinated
     Debentures.  Accordingly, each Holder will be required to include in its
     gross income interest (in the form of OID) accrued with respect to its
     allocable share of Junior Subordinated Debentures as described below.  No
     amount included in income with respect to the Preferred Securities will be
     eligible for the dividends received deduction.  Investors should be aware
     that the opinion of Reid & Priest LLP does not address any other issue and
     is not binding on the Internal Revenue Service or the courts.

        Classification of the Junior Subordinated Debentures

        Based on the advice of its counsel, the Company believes and intends to
     take the position that the Junior Subordinated Debentures will constitute
     indebtedness for United States federal income tax purposes.  No assurance
     can be given that such position will not be challenged by the Internal
     Revenue Service or, if challenged, that such a challenge will not be
     successful.  By purchasing and accepting Preferred Securities, each Holder
     covenants to treat the Junior Subordinated Debentures as indebtedness and
     the Preferred Securities as evidence of an indirect beneficial ownership in
     the Junior Subordinated Debentures.  The remainder of this discussion
     assumes that the Junior Subordinated Debentures will be classified as
     indebtedness of the Company for United States federal income tax purposes. 

        On December 7, 1995, the U.S. Treasury Department proposed certain tax
     law changes that, among other things, would generally deny interest
     deductions to corporate issuers of debt if the debt instrument has a term
     exceeding 20 years and is not reflected as indebtedness on the issuer's
     balance sheet.  As described in the Treasury Department's proposal, the
     proposed changes would not affect the ability of the Company to deduct
     interest on the Junior Subordinated Debentures because the term of the
     Junior Subordinated Debentures is less than 20 years.  However, there can
     be no assurance that subsequent proposals or final legislation will not
     affect the ability of the Company to deduct interest on the Junior
     Subordinated Debentures, which in turn could give rise to a Tax Event,
     which would permit the Company to cause a redemption of the Preferred
     Securities or a distribution of the Junior Subordinated Debentures in
     liquidation of MP&L Capital, as described more fully in the Prospectus
     under "Description of the Preferred Securities -- Special Event Redemption
     or Distribution."

        Potential Extension of Interest Payment Period and Original Issue
        Discount

        Under the terms of the Junior Subordinated Debentures, the Company has
     the option to defer payments of interest for up to 20 consecutive quarterly
     distribution payment periods and to pay as a lump sum at the end of such
     period all of the interest that has accrued during such period.  During any
     such Extension Period, Distributions on the Preferred Securities will also
     be deferred.  Because of this option to extend the interest payment
     periods, the Junior Subordinated Debentures will be treated as having been
     issued with OID for United States federal income tax purposes.  As a
     result, United States Holders will be required to accrue interest income
     (in the form of OID) on an economic accrual basis even if they use the cash
     method of tax accounting.  In the event of an Extension Period, a United
     States Holder will be required to continue to include OID in income
     notwithstanding that MP&L Capital will not make any Distribution on the
     Preferred Securities during such Extension Period.  As a result, any Holder
     who disposes of Preferred Securities prior to the record date for the
     payment of Distributions following such Extension Period will include
     interest in gross income but will not receive any Distributions related
     thereto from MP&L Capital.  The tax basis of a Preferred Security will be
     increased by the amount of any OID that is included in income, and will be
     decreased when and if Distributions are subsequently received from MP&L
     Capital by such Holders.

        Receipt of Junior Subordinated Debentures or Cash Upon Liquidation of
        MP&L Capital

        Under certain circumstances, as described under the caption "Description
     of the Preferred Securities -- Special Event Redemption or Distribution,"
     Junior Subordinated Debentures may be distributed to Holders of Preferred
     Securities in exchange for the Preferred Securities and in liquidation of
     MP&L Capital.  Under current law, for United States federal income tax
     purposes, if MP&L Capital is treated as a grantor trust at the time of
     distribution, such a distribution would be treated as a non-taxable event
     to each United States Holder, and each United States Holder would receive
     an aggregate tax basis in the Junior Subordinated Debentures equal to such
     Holder's aggregate tax basis in its Preferred Securities.  A United States
     Holder's holding period for the Junior Subordinated Debentures received in
     liquidation of MP&L Capital would include the period during which such
     Holder held the Preferred Securities.

        Under certain circumstances, as described under the caption "Description
     of the Preferred Securities --  Redemption of Preferred Securities," the
     Junior Subordinated Debentures may be redeemed for cash and the proceeds of
     such redemption distributed to Holders of Preferred Securities in
     redemption of the Preferred Securities.  Under current law, such a
     redemption would, for United States federal income tax purposes, constitute
     a taxable disposition of the Preferred Securities, and a Holder would
     recognize gain or loss as if such Holder had sold such redeemed Preferred
     Securities.  See "Sale, Exchange and Redemption of the Preferred
     Securities."

        Sale, Exchange and Redemption of the Preferred Securities

        Upon the sale, exchange or redemption of Preferred Securities, a United
     States Holder will recognize gain or loss equal to the difference between
     the amount realized upon the sale, exchange or redemption and such Holder's
     adjusted tax basis in the Preferred Securities.  A United States Holder's
     adjusted tax basis will, in general, be the issue price of the Preferred
     Securities, increased by the OID previously included in income by the
     United States Holder and reduced by any Distributions on the Preferred
     Securities.  Such gain or loss will be capital gain or loss and will be
     long-term capital gain or loss if at the time of sale, exchange or
     redemption, the Preferred Securities have been held for more than one year.
     Under current law, net capital gains of individuals are, under certain
     circumstances, taxed at lower rates than items of ordinary income.  The
     deductibility of capital losses is subject to limitations.

        Information Reporting and Backup Withholding

        Subject to the qualification discussed below, income on the Preferred
     Securities will be reported to holders on Form 1099, which should be mailed
     to such Holders by January 31, following each calendar year.

        MP&L Capital will be obligated to report annually to Cede & Co., as
     holder of record of the Preferred Securities, the OID related to the Junior
     Subordinated Debentures that accrued during the year.  MP&L Capital
     currently intends to report such information on Form 1099 prior to January
     31, following each calendar year.  The Underwriters have indicated to MP&L
     Capital that, to the extent that they hold Preferred Securities as nominees
     for beneficial holders, they currently expect to report the OID that
     accrued during the calendar year on such Preferred Securities to such
     beneficial holders on Forms 1099 by January 31, following each calendar
     year.  Under current law, holders of Preferred Securities who hold as
     nominees for beneficial holders will not have any obligation to report
     information regarding the beneficial holders to MP&L Capital.  MP&L
     Capital, moreover, will not have any obligation to report to beneficial
     holders who are not also record holders.  Thus, beneficial holders of
     Preferred Securities who hold their Preferred Securities through the
     Underwriters will receive Forms 1099 reflecting the income on their
     Preferred Securities from such nominee holders rather than from MP&L
     Capital.

        Payments made in respect of, and proceeds from the sale of, Preferred
     Securities (or Junior Subordinated Debentures distributed to holders of
     Preferred Securities) may be subject to "backup" withholding tax of 31%
     unless the holder complies with certain identification requirements or
     fails to report in full dividend and interest income.  Any withheld amounts
     will be allowed as a refund or a credit against the holder's United Stated
     federal income tax liability, provided the required information is provided
     to the Internal Revenue Service.

        These information reporting and backup withholding tax rules are subject
     to temporary Treasury Regulations.  Accordingly, the application of such
     rules to the Preferred Securities could be changed.

                                       EXPERTS

        The Company's financial statements incorporated in this Prospectus by
     reference to the Company's Current Report on Form 8-K, dated February 16,
     1996, except as they relate to ADESA (an 80% owned subsidiary of the
     Company), have been audited by Price Waterhouse LLP, independent
     accountants, and, insofar as they relate to ADESA, by Ernst & Young LLP,
     independent auditors.  The report of Price Waterhouse LLP thereon appears
     on page 10 of such Form 8-K.  Such financial statements, except as they
     relate to ADESA, have been so incorporated in reliance on the report of
     Price Waterhouse LLP, given on the authority of said firm as experts in
     auditing and accounting.

        The financial statement schedule incorporated in this Prospectus by
     reference to the Company 1994 10-K has 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 consolidated financial statements of ADESA appearing in the
     Company's Current Report on Form 8-K, dated July 12, 1995, for the year
     ended December 31, 1994, have been audited by Ernst & Young LLP,
     independent auditors, as set forth in their report thereon included in said
     Current Report on Form 8-K and incorporated herein by reference in reliance
     upon such report given upon the authority of such firm as experts in
     accounting and auditing.

        The consolidated financial statements of ADESA for the period from July
     1, 1995 to December 31, 1995 which are included in the consolidated
     financial statements of the Company contained in the Company's Current
     Report on Form 8-K, dated February 16, 1996 have been audited by Ernst &
     Young LLP, independent auditors, as set forth in their report thereon
     included in said Current Report on Form 8-K.  Such report is given upon the
     authority of such firm as experts in accounting and auditing.

        The statements made in the Company 1994 10-K under Part I, Item 1 --
     Business-Regulation and Rates and Environmental Matters, incorporated
     herein by reference, have been reviewed by Philip R. Halverson, Esq.,
     Duluth, Minnesota, General Counsel for the Company.  All of such statements
     are set forth or incorporated by reference herein in reliance upon the
     opinion of Mr. Halverson given upon his authority as an expert.  At
     December 31, 1995, Mr. Halverson owned approximately 4001 shares of the
     common stock of the Company.  Statements as to United States federal income
     taxation under "Certain United States Federal Income Tax Consequences"
     herein have been passed upon for the Company and MP&L Capital by Reid &
     Priest LLP, New York, New York, counsel to the Company.

                                       LEGALITY

        Certain matters of Delaware law relating to the validity of the
     Preferred Securities, the enforceability of the Trust Agreement and the
     creation of MP&L Capital are being passed upon by Richards, Layton &
     Finger, Special Delaware counsel for the Company and MP&L Capital.  The
     legality of the other securities offered hereby will be passed upon for the
     Company and MP&L Capital by Philip R. Halverson, Esq. and by Reid & Priest
     LLP, and for the Underwriters by Lane & Mittendorf LLP, New York, New York.
     However, all matters pertaining to incorporation of the Company and all
     other matters of Minnesota law will be passed upon only by Philip R.
     Halverson, Esq.

                                     UNDERWRITING
                    
          Subject to the terms and conditions of the Underwriting Agreement, the
     Company and MP&L Capital have agreed that MP&L Capital will issue and sell
     to each of the Underwriters named below, and each of the Underwriters, for
     whom Goldman, Sachs & Co. and PaineWebber Incorporated are acting as
     Representatives, has severally agreed to purchase from MP&L Capital the
     respective number of Preferred Securities set forth opposite its name
     below:


                                                        NUMBER OF
          UNDERWRITER                             PREFERRED SECURITIES  
          -----------                             --------------------

     Goldman, Sachs & Co. .................             975,000
     PaineWebber Incorporated .............             975,000
     Alex. Brown & Sons Incorporated.......              70,000
     Dain Bosworth Incorporated............              70,000
     A.G. Edwards & Sons, Inc. ............              70,000
     EVEREN Securities, Inc. ..............              70,000
     Piper Jaffray Inc. ...................              70,000
     Prudential Securities Incorporated....              70,000
     Advest, Inc. .........................              35,000
     Robert W. Baird & Co. Incorporated....              35,000
     Fahnestock & Co. Inc. ................              35,000
     Janney Montgomery Scott Inc. .........              35,000
     Legg Mason Wood Walker, 
      Incorporated ........................              35,000
     McDonald & Company Securities, Inc. ..              35,000
     McGinn, Smith & Co., Inc. ............              35,000
     Morgan Keegan & Company, Inc. ........              35,000
     The Ohio Company .....................              35,000
     Olde Discount Corporation ............              35,000
     Principal Financial Securities, 
      Inc. ................................              35,000
     Raymond James & Associates, Inc. .....              35,000
     The Robinson-Humphrey Company, Inc. ..              35,000
     Roney & Co., LLC .....................              35,000
     Trilon International Inc. ............              35,000
     Tucker Anthony Incorporated ..........              35,000
     U.S. Clearing Corp. ..................              35,000
     Wheat, First Securities, Inc. ........              35,000
                                                      ---------

       Total...............................           3,000,000 
                                                      =========


        Subject to the terms and conditions of the Underwriting Agreement, the
     Underwriters are committed to take and pay for all the Preferred Securities
     offered hereby, if any are taken.

        The Underwriters propose to offer the Preferred Securities in part
     directly to the public at the initial public offering price set forth on
     the cover page of this Prospectus, and in part to certain securities
     dealers at such price less a concession of $0.50 per Preferred Security.  
     The Underwriters may allow, and such dealers may reallow, a concession 
     not in excess of $0.30 per Preferred Security to certain brokers and 
     dealers.  After the Preferred Securities are released for sale to the 
     public, the offering price and other selling terms may from time to time
     be varied by the Representatives.

        In view of the fact that the proceeds of the sale of the Preferred
     Securities will be used to purchase the Junior Subordinated Debentures, the
     Underwriting Agreement provides that the Company will pay as compensation,
     for the Underwriters' arranging the investment therein of such proceeds, an
     amount of $0.7875 per Preferred Security for the accounts of the several
     Underwriters.

        The Company and MP&L Capital have agreed that, during the period
     beginning from the date of the Underwriting Agreement and continuing to and
     including the earlier of (i) the date on which the distribution of the
     Preferred Securities ceases, as determined by the Representatives, and (ii)
     90 days after the issuance of the Preferred Securities, neither will offer,
     sell, contract to sell or otherwise dispose of, any other beneficial
     interests in MP&L Capital or any other securities of MP&L Capital or the
     Company, as the case may be, that are substantially similar to the
     Preferred Securities (including any guarantee of such securities) or any
     securities that are convertible into or exchangeable for, or that represent
     the right to receive, any such substantially similar securities of either
     MP&L Capital or the Company, without the prior written consent of Goldman,
     Sachs & Co.; provided that this restriction shall specifically not
     apply to the Company's common stock, preferred stock, secured indebtedness
     and unsecured indebtedness which is not subordinated.

        Prior to this offering, there has been no public market for the
     Preferred Securities. Application will be made to list the Preferred
     Securities on the NYSE.  In order to meet one of the requirements for
     listing the Preferred Securities on the NYSE, the Underwriters will
     undertake to sell lots of 100 or more Preferred Securities to a minimum of
     400 beneficial holders.  Trading of the Preferred Securities on the NYSE is
     expected to commence within a seven-day period after the initial delivery
     of the Preferred Securities.  The Representatives have advised the Company
     that they intend to make a market in the Preferred Securities prior to
     commencement of trading on the NYSE, but are not obligated to do so and may
     discontinue any such market making at any time without notice.
     
        The Company and MP&L Capital have agreed to indemnify the Underwriters
     against certain liabilities, including liabilities under the Securities Act
     of 1933, as amended.     

        Certain of the Underwriters or their affiliates have provided from time
     to time, and expect to provide in the future, services to the Company and
     its affiliates, in the ordinary course of business, for which such
     Underwriters or their affiliates have received or will receive customary
     fees and commissions.
     
     

     ===================================   ===================================
        No person has been authorized to
     give any information or to make any
     representations other than those 
     contained in this Prospectus and,        3,000,000 Preferred Securities
     if given or made, such information 
     or representations must not be relied             MP&L CAPITAL I
     upon as having been authorized.  This   
     Prospectus does not constitute an
     offer to sell or the solicitation       
     of an offer to buy any securities      8.05% Cumulative Quarterly Income
     other than the securities described      Preferred Securities(QUIPSsm)
     in this Prospectus or an offer to        
     sell or the solicitation of any              
     offer to buy such securities in               Guaranteed to the extent 
     any circumstances in which such             MP&L Capital I has funds as
     offer or solicitation is unlawful.               set forth herein
     Neither the delivery of this Prospectus 
     nor any sale made hereunder shall, 
     under any circumstances, create any          
     implication that the information             
     contained herein or therein is correct 
     as of any time subsequent to the date 
     of such information. 
                                                      MINNESOTA POWER
              ------------------                      & LIGHT COMPANY

              TABLE OF CONTENTS                        
                                   Page
                                   ----

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

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

     Prospectus Summary.................. 4          -------------------------

     Risk Factors........................ 6                 PROSPECTUS  
                                                  
     The Company........................ 10          -------------------------

     MP&L Capital....................... 12
     
     Summary Financial Information...... 13            GOLDMAN, SACHS & CO.
                                                      PAINEWEBBER INCORPORATED
     Use of Proceeds.................... 14

     Description of the 
       Preferred Securities............. 14              Representatives 
                                                       of the Underwriters
     Description of the Guarantee....... 25

     Description of the Junior 
       Subordinated Debentures.......... 27

     Certain United States Federal 
     Income Tax Consequences............ 36

     Experts............................ 38

     Legality........................... 39 
    
     Underwriting....................... 39
    

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