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REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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MINNESOTA POWER & LIGHT COMPANY
(Exact name of registrant as specified in its charter)
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MINNESOTA 41-0418150
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
30 WEST SUPERIOR STREET
DULUTH, MINNESOTA 55802
(218) 722-2641
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
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DAVID G. GARTZKE PHILIP R. HALVERSON, Esq.
Senior Vice President-Finance Vice President, General Counsel
and Chief Financial Officer and Corporate Secretary
30 West Superior Street 30 West Superior Street
Duluth, Minnesota 55802 Duluth, Minnesota 55802
(218) 722-2641 (218) 722-2641
JAMES K. VIZANKO ROBERT J. REGER, JR., Esq.
Corporate Treasurer Reid & Priest LLP
30 West Superior Street 40 West 57th Street
Duluth, Minnesota 55802 New York, New York 10019
(218) 722-2641 (212) 603-2000
(Names, addresses, including zip codes, and telephone numbers, including
area codes, of agents for service)
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: As
soon as practicable after the registration statement becomes effective.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the
following box. [ ]
If any of the securities being registered on this Form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities
Act of 1933, other than securities offered only in connection with dividend
or interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act of 1933, please check the
following box and list the Securities Act of 1933 registration statement
number of the earlier effective registration statement for the same
offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act of 1933, check the following box and list the
Securities Act of 1933 registration statement number of the earlier
effective registration statement for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
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CALCULATION OF REGISTRATION FEE
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PROPOSED PROPOSED
MAXIMUM MAXIMUM
TITLE OF EACH CLASS OFFERING AGGREGATE AMOUNT OF
OF SECURITIES AMOUNT TO PRICE PER OFFERING REGISTRATION
TO BE REGISTERED BE REGISTERED UNIT* PRICE* FEE
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Common Stock, without
par value . . . . 5,000,000 shares $27.0625 $135,312,500 $46,660
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*Estimated solely for the purpose of calculating the registration fee,
pursuant to Rule 457(c), on the basis of the average of the high and low
prices of the registrant s Common Stock on the New York Stock Exchange
composite tape on March 26, 1996.
PURSUANT TO RULE 429 UNDER THE SECURITIES ACT OF 1933, THE PROSPECTUS
FILED AS PART OF THIS REGISTRATION STATEMENT WILL BE USED AS A COMBINED
PROSPECTUS IN CONNECTION WITH THIS REGISTRATION STATEMENT AND REGISTRATION
STATEMENT NO. 33-56134.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE
OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE
REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT
THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE
WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THIS REGISTRATION
STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING
PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
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SUBJECT TO COMPLETION
DATED APRIL 1, 1996
PROSPECTUS
MINNESOTA POWER & LIGHT COMPANY
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
5,545,634 Shares of Common Stock
(Without Par Value)
This Prospectus relates to an aggregate of 5,545,634 shares of the
common stock (Common Stock) of Minnesota Power & Light Company (Company)
available for purchase under the Company's Dividend Reinvestment and Stock
Purchase Plan, as amended and restated effective March 1, 1996 (Plan).
The Plan provides investors (Participants) with a convenient method of
acquiring shares of the Company's Common Stock through (i) the reinvestment
in Company Common Stock of all or a portion of the cash dividends payable
on a Participant's holdings of Common Stock and Preferred Stock of the
Company and/or (ii) the investment of optional cash payments pursuant to
the terms of the Plan. The Plan also provides a means for Participants to
deposit into the Plan for safekeeping, free of any service charges, share
certificates representing shares of Company Common Stock, whether or not
the depositor participates in any of the other features of the Plan.
Participation in the Plan is open to:
. Shareholders of the Company's Common Stock and/or
Preferred Stock enrolled in the Company's Automatic
Dividend Reinvestment and Stock Purchase Plan, as in
effect prior to its current amendment and restatement
(Prior Plan);
. Shareholders of record of the Company's Common Stock
and/or Preferred Stock not enrolled in the Prior Plan;
. Beneficial owners of Common Stock and/or Preferred
Stock whose shares are registered in names other than
their own, provided that some or all of such shares
are transferred to their own names or held in the name
of a third-party nominee (e.g., a brokerage firm or
----
bank) and such nominee is a Participant in the Plan; and
. Other interested investors, including Customers (as
defined herein), who are not shareholders but who
reside in states in which the Company has satisfied
the requirements of the state securities laws
applicable to the operation of the Plan.
Shareholders participating in the Prior Plan are automatically
enrolled in the Plan and may begin to participate immediately without
taking any further action to continue the reinvestment of their Common
Stock and/or Preferred Stock dividends. Shareholders who do not choose to
participate in the Plan will continue to receive cash dividends, as
declared, in the usual manner.
Common Stock acquired by Participants pursuant to the Plan will
consist of (i) shares purchased from Participants selling their shares
through the Plan and, at the option of the Company, either (ii) original
issue shares purchased from the Company or (iii) issued and outstanding
shares purchased on the open market by an agent independent of the Company
(Independent Agent). The price per share of Common Stock purchased from
Participants selling shares through the Plan will be the market closing
price of the Common Stock on the business day immediately preceding the
sale date. In the case of original issue shares, the price per share will
be the average of the reported closing prices on the composite tape on the
last three business days preceding the applicable Investment Date (as
defined herein). Shares purchased on the open market will have a price per
share equal to the weighted average price (excluding any related brokerage
fees, commissions or other service charges) at which such shares are
purchased by the Independent Agent with cash payments received and
dividends reinvested during the applicable Investment Period (as defined
herein). Since shares purchased by Participants generally will come from
more than one source (i.e., shares purchased from selling Participants
----
combined with original issue shares purchased from the Company or with
shares purchased on the open market), the price per share to the purchasing
Participants will be a weighted average of the prices for all shares
acquired for the Plan with cash payments received and dividends reinvested
during the applicable Investment Period. No brokerage fees, commissions or
other charges will be incurred by a Participant for purchases made under
the Plan. However, any such charges paid by the Company will be reported
to the Internal Revenue Service by the Company as income to the
Participant.
It is suggested that this Prospectus be retained for future reference.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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The date of this Prospectus is , 1996.
Information contained herein is subject to completion or amendment. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. These securities may not be sold nor
may offers to buy be accepted prior to the time the registration statement
becomes effective. This prospectus shall not constitute an offer to sell
or the solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (1934 Act) and, in accordance
therewith, files reports, proxy statements and other information with the
Securities and Exchange Commission (Commission). Such reports, proxy
statements and other information filed by the Company may be inspected and
copied at the public reference facilities maintained by the Commission at
450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at the
following Regional Offices of the Commission: New York Regional Office, 7
World Trade Center, 13th Floor, New York, New York 10048; and Chicago
Regional Office, Citicorp Center, 500 West Madison Street, Suite 1400,
Chicago, Illinois 60661. Copies of such material may also be obtained at
prescribed rates from the Public Reference Section of the Commission at 450
Fifth Street, N.W., Washington, D.C. 20549. The 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.
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The Company's Annual Report on Form 10-K for the year ended December
31, 1995 (1995 Form 10-K), filed by the Company with the Commission
pursuant to the 1934 Act, is hereby incorporated by reference.
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 1995
Form 10-K or the documents 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 most recent Annual Report on Form 10-K. The documents which
are incorporated by reference in this Prospectus are sometimes hereinafter
referred to as the "Incorporated Documents."
Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Prospectus to the extent that a statement
contained herein or in any other subsequently filed document which is
deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement so modified or superseded shall not be
deemed, except as so modified or superseded, to constitute a part of this
Prospectus.
The Company will provide without charge to each person, including any
beneficial owner, to whom a copy of this Prospectus is delivered, upon the
written or oral request of any such person, a copy of any document referred
to above which has been or may be incorporated in this Prospectus by
reference, other than exhibits to such documents (unless such exhibits are
specifically incorporated by reference into such documents). Requests for
such copies should be directed to: Shareholder Services, Minnesota Power,
30 West Superior Street, Duluth, Minnesota 55802, telephone number (218)
723-3974 or (800) 535-3056.
TABLE OF CONTENTS
PAGE
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AVAILABLE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . 2
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE . . . . . . . . . . . . 2
THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
THE PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Purpose of the Plan . . . . . . . . . . . . . . . . . . . . . . . . 6
Participants in the Plan . . . . . . . . . . . . . . . . . . . . . . 6
Plan Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Plan Administration . . . . . . . . . . . . . . . . . . . . . . . . 8
Source and Price of Purchased Shares . . . . . . . . . . . . . . . . 9
Plan Enrollment . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Investment of Dividends on Shares . . . . . . . . . . . . . . . . . 9
Cash Payments to Purchase Shares . . . . . . . . . . . . . . . . . . 10
Timing of Share Purchases . . . . . . . . . . . . . . . . . . . . . 10
Number of Common Shares Purchased for Participants . . . . . . . . . 11
Costs Under the Plan . . . . . . . . . . . . . . . . . . . . . . . . 11
Certificates for Shares; Deposits and Withdrawals . . . . . . . . . 11
Change in Manner of Participation . . . . . . . . . . . . . . . . . 11
Transfer or Assignment of Common Stock held in a Plan Account . . . 12
Shares Pledged . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Shareholder Voting . . . . . . . . . . . . . . . . . . . . . . . . . 12
Sale of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Withdrawal from Plan Participation . . . . . . . . . . . . . . . . . 12
Sale or Transfer if a Participant Dies . . . . . . . . . . . . . . . 13
Safekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Statements of Account; Shareholder Communications . . . . . . . . . 14
Responsibility of the Company and its Agents Under the Plan . . . . 14
Participant Responsibilities Under the Plan . . . . . . . . . . . . 14
Rights Offering and Stock Split . . . . . . . . . . . . . . . . . . 14
Modification or Termination of Plan; Termination of Participants . . 15
Participants' Income Tax Withholding . . . . . . . . . . . . . . . . 15
FEDERAL INCOME TAX CONSEQUENCES . . . . . . . . . . . . . . . . . . . . 15
DESCRIPTION OF COMMON STOCK . . . . . . . . . . . . . . . . . . . . . 16
EXPERTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
LEGAL OPINIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
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NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS IN CONNECTION WITH THIS OFFERING OTHER THAN THOSE CONTAINED
IN THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION AND
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE
COMPANY. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE
HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE
HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR
THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT
TO ITS DATE. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OTHER THAN THE REGISTERED
SECURITIES TO WHICH IT RELATES. THIS PROSPECTUS DOES NOT CONSTITUTE AN
OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES IN ANY
CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL.
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 21 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.
YEAR ENDED DECEMBER 31,
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Summary of Earnings Per Share 1995 1994 1993
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CONSOLIDATED EARNINGS PER SHARE
Continuing Operations $ 2.06 $ 1.99 $ 2.27
Discontinued Operations* .10 .07 (.07)
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Total $ 2.16 $ 2.06 $ 2.20
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PERCENTAGE OF EARNINGS BY BUSINESS SEGMENT
Continuing Operations
Electric Operations 61% 63% 63%
Water Operations (2) 23 4
Automobile Auctions 0 - -
Investments 36 11 36
Discontinued Operations* 05 03 (3)
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100% 100% 100%
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* 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 $95 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.
AUTOMOBILE 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 Company's 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 executives 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 21 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.
USE OF PROCEEDS
Unless shares of Common Stock are purchased directly from the Company,
the Company will receive no proceeds from the offering of Common Stock
through the Plan. To the extent that shares are purchased directly from
the Company, the net proceeds are expected to be used for general corporate
purposes. The Company has no basis for estimating either the number of
shares of Common Stock that may be sold under the Plan, the prices at which
such shares will be sold or the number of shares that will be purchased
directly from the Company.
THE PLAN
The Company's Dividend Reinvestment and Stock Purchase Plan, as amended
and restated effective March 1, 1996 (Plan), is set forth below. The
definitions of certain capitalized terms are provided under the heading
"Plan Definitions".
PURPOSE OF THE PLAN
The purpose of the Plan is to provide Participants with a convenient
method of acquiring shares of the Company's Common Stock through (i) the
reinvestment in Company Common Stock of all or a portion of the cash
dividends payable on the Participant's holdings of Company Common Stock and
Preferred Stock, and/or (ii) the making of Optional Cash Payments. The
Plan also provides a means for Participants to deposit share certificates
representing shares of Company Common Stock into the Plan for Safekeeping,
free of any service charges, whether or not the depositor participates in
any of the other features of the Plan.
PARTICIPANTS IN THE PLAN
The Plan is available to the following persons:
1) SHAREHOLDERS OF THE COMPANY'S COMMON STOCK AND/OR PREFERRED STOCK
ENROLLED IN THE COMPANY'S AUTOMATIC DIVIDEND REINVESTMENT AND STOCK
PURCHASE PLAN, AS IN EFFECT PRIOR TO ITS CURRENT AMENDMENT AND
RESTATEMENT. Such shareholders are automatically enrolled in the
Plan and may begin to participate immediately without taking any
further action to continue the reinvestment of their Common Stock
and Preferred Stock dividends.
2) SHAREHOLDERS OF THE COMPANY'S COMMON STOCK AND/OR PREFERRED STOCK
WITH SHARES REGISTERED IN THEIR OWN NAMES AND WHO ARE NOT ALREADY
ENROLLED IN PLAN AS IN EFFECT PRIOR TO ITS CURRENT AMENDMENT AND
RESTATEMENT. Such shareholders may commence participation by
returning a properly executed Shareholder Authorization Form to the
Plan Administrator.
3) BENEFICIAL OWNERS OF SHARES OF THE COMPANY'S COMMON STOCK AND/OR
PREFERRED STOCK WHOSE SHARES ARE REGISTERED IN NAMES OTHER THAN
THEIR OWN. In order to be eligible to participate in the Plan,
such beneficial owners must become shareholders of record by having
some or all of such shares transferred to their names.
Alternatively, to the extent that a beneficial owner's shares are
held in street name by their broker or other similar third-party
nominee or agent, such beneficial owner may participate in the
dividend reinvestment portion of the Plan by certificating their
shares and enrolling in the Plan or by registering their shares
with a broker who participates in the Depository Trust Company
(DTC) dividend reinvestment program. The Company and DTC have made
arrangements to allow investors whose shares are registered by
their broker with DTC to participate in the Plan. DTC has joined
the Plan and completed a Letter of Agreement on behalf of brokers
who both register shares with DTC and participate in DTC's dividend
reinvestment program. Beneficial owners participating in the Plan
through their broker must contact their broker to change their
method of participation or to terminate participation.
Reinvestment of dividends through broker participation is limited
to the purchase of whole shares. Optional Cash Payments may not be
made to the extent participation in the Plan is through a broker.
4) OTHER INTERESTED INVESTORS, INCLUDING CUSTOMERS, WHO ARE NOT
ALREADY SHAREHOLDERS OF THE COMPANY'S COMMON STOCK AND/OR PREFERRED
STOCK. Such investors may participate in the Plan by making a
minimum Initial Cash Investment to purchase Common Stock through
the Plan and returning a properly executed Initial Investment Form
to the Plan Administrator. Except with respect to Customers (as
defined herein), such minimum investment is $250. Customers are
permitted to make a minimum investment of $10. In certain
jurisdictions, applicable laws require that shares of Common Stock
offered under the Plan to persons, including Customers, not
presently record holders of Common Stock be offered only through
a registered broker-dealer. No offers or sales will be effected
in those jurisdictions unless the Company has satisfied the
requirements of the state securities laws applicable to the
operation of the Plan.
PLAN DEFINITIONS
Account: The Plan Administrator's record of a Participant's
Plan activity.
Administrator: Minnesota Power Shareholder Services.
Company: Minnesota Power & Light Company.
Customer: Any person who is (i) a customer of the Company,
Superior Water, Light and Power Company, Heater
Utilities Incorporated or Southern States
Utilities, Inc. or (ii) a lessee of real property
owned by the Company or (iii) a member of another
category of persons with an ongoing business
relationship with the Company as such category may
be approved for Customer status under the Plan by
the Company's Board of Directors from time to
time.
Custodian: Minnesota Power Shareholder Services.
Dividend Payment Date: The date on which dividends are payable, as
determined by the Company's Board of Directors.
These dates are normally the first day of March,
June, September and December for the Company's
Common Stock and the first day of January, April,
July and October for the Company's Preferred
Stock.
Dividend Record Date: The date on which shareholders, including Plan
Participants, must be shareholders in order to
receive dividends on their shares. Generally, the
Dividend Record Date is the 15th of the month
preceding the Dividend Payment Date. If the 15th
falls on Saturday, then the Dividend Record Date
is the 14th; if the 15th falls on Sunday, then the
Dividend Record Date is the 16th.
Ex-Dividend Date: A date prior to the Dividend Record Date, based on
industry regulations, necessary to allow for the
settlement of securities traded through a broker
by the Dividend Record Date. Stock purchased from
a broker after the Ex-Dividend Date is not
entitled to the succeeding dividend.
Independent Agent: The broker or other agent selected by the Plan
Administrator to purchase and/or sell shares of
Company Common Stock on the open market for Plan
Participants.
Initial Cash Investment: A payment made to the Company to purchase shares
of Common Stock to open a Plan Account. The
minimum Initial Cash Investment is $250 for
interested investors who are not shareholders
(except for those interested investors who are
Customers, in which case the minimum is $10).
Initial Investment Form: A form available from the Plan Administrator which
allows new investors to enroll in the Plan and
designate the method of receiving dividends on
their shares.
Investment Date: The date on which the weighted average purchase
price for all shares of Common Stock purchased
with respect to a particular Investment Period is
determined. In the event that original issue
shares are purchased under the Plan, the
Investment Date will be the first day of the month
following the end of the Investment Period. If
open market purchases are made, the Investment
Date will be the later of (i) the first day of the
month following the end of the Investment Period
or (ii) the day following the end of the
Investment Period on which all purchases on the
open market are completed by the Independent
Agent. Purchased shares are credited to a
Participant's Account on the Investment Date.
Investment Period: The period during which cash payments are accepted
from Participants for investment in Common Stock
to be credited to Plan Accounts on the Investment
Date. The Investment Period begins on the first
business day following the last day of the prior
Investment Period (which last day is the fifth
business day from the end of the prior month) and
ends on the last day of the current Investment
Period (which last day is the fifth business day
from the end of the current month).
Optional Cash Payments: Cash payments sent at any time to the Plan
Administrator by a Participant to purchase
additional shares of Common Stock under the Plan.
Safekeeping: The depositing of Common Stock share certificates
with the Plan Administrator for the benefit of a
Plan Participant.
Shareholder Authoriza- A form available from the Plan Administrator
tion Form: which allows a current shareholder to become a
Participant, to direct investment and reinvestment
of dividends on shares held in the Plan, and to
express other directions with respect to the
Participant's Account and participation in the
Plan.
Statement of Account: Written reports and summaries of a Participant's
Plan activity mailed by the Plan Administrator to
the Participant.
PLAN ADMINISTRATION
The Company is the Plan Administrator through its Shareholder Services
department. The Plan Administrator administers the Plan for Participants,
keeps records, sends Statements of Account to Participants and performs
other duties relating to the Plan.
Should the Plan purchase shares on the open market, the Company will
appoint the Independent Agent to act as the independent agent of
Participants. The Company, as Custodian under the Plan, holds shares
acquired under the Plan and shares deposited into the Plan for Safekeeping.
The Company may resign as Plan Administrator or as Custodian at any time
upon the appointment of a successor. The Company believes that its
position as Plan Administrator, as compared with that of a registered
broker-dealer or federally insured banking institution, poses no material
risk to Participants.
All communications concerning the Plan should be directed by mail or
telephone to the Plan Administrator as follows:
Shareholder Services
Minnesota Power
30 West Superior Street
Duluth, Minnesota 55802
Telephone: (218) 723-3974 or (800) 535-3056
Fax: (218) 720-2502
SOURCE AND PRICE OF PURCHASED SHARES
Common Stock acquired by Participants pursuant to the Plan will consist
of (i) shares sold through the Plan by Participants and, at the Company's
option, either (ii) authorized but unissued shares of Common Stock
purchased from the Company or (iii) issued and outstanding shares purchased
by the Independent Agent in the open market. The Company has sole
discretion as to the method by which Common Stock is purchased under the
Plan for Participants.
The price per share for shares purchased from Participants selling
shares through the Plan will be the market closing price of the Company's
Common Stock on the business day immediately preceding the sale date. In
the case of original issue shares purchased from the Company, the price per
share will be the average of the reported closing prices on the composite
tape on the last three business days prior to the applicable Investment
Date. Shares purchased on the open market will have a price per share
equal to the weighted average price (excluding any related brokerage fees,
commissions or other service charges) at which such shares are purchased by
the Independent Agent with cash payments received and dividends reinvested
during the applicable Investment Period. Since shares purchased by
Participants will come from more than one source (i.e., shares purchased
---
from selling Participants combined with original issue shares purchased
from the Company or with shares purchased on the open market), the price
per share to the purchasing Participants will be a weighted average of the
prices paid for all shares acquired for the Plan with cash payments
received and dividends reinvested during the applicable Investment Period.
Subject to any limitations imposed by Federal or state securities laws,
the Independent Agent will have full discretion as to all matters relating
to open market purchases, including the determination of the number of
shares, if any, to be purchased on any day or at any time of day, the price
paid for such shares, the markets on which such shares are to be purchased
and the persons (including other brokers and dealers) from or through whom
such purchases are made. Neither the Company or any of its affiliates, nor
any Participant, may exercise any control or influence over the timing,
price, amount or manner of purchases of the Common Stock purchased by the
Independent Agent.
The Company cannot change more than once in any twelve month period its
determination that shares will be purchased on the open market or directly
from the Company. Such change will be documented by the Company in the
form of a resolution from the Board of Directors or by order of the
Company's Chief Financial Officer. No purchases under the Plan will be
made merely for the purpose of creating trading activity in order to raise
the price of the Company's Common Stock.
PLAN ENROLLMENT
Shareholders who own Common Stock and/or Preferred Stock and
shareholders who have shares registered in more than one name will receive
a Shareholder Authorization Form for each registration. If this occurs,
the shareholder has the choice of signing and returning any or all of the
Shareholder Authorization Forms, but must return all Shareholder
Authorization Forms in order to have dividends on all shares reinvested.
All shareholders must sign the Shareholder Authorization Form in the name
in which their shares are registered.
Customers not already owning Company Common Stock or Preferred Stock may
enroll in the Plan by making an Initial Cash Investment of at least $10.
Other interested investors who are not Company stockholders may become
Participants by making an Initial Cash Investment of at least $250.
Customers and other interested investors wishing to purchase shares through
the Plan should contact the Plan Administrator for an Initial Investment
Form.
INVESTMENT OF DIVIDENDS ON SHARES
A Participant may choose to have cash dividends on all or a portion of
such Participant's shares of Common Stock (including shares held in the
Participant's Account) and/or Preferred Stock paid directly to the
Participant or, alternatively, may have the Participant's Account credited
with full and fractional shares of Common Stock purchased with cash
dividends on all or a portion of such shares. Reinvested dividends will be
credited to Participants' Accounts as of the Dividend Payment Date. See
"Timing of Share Purchases" below. A Participant may change the method of
receiving dividends upon written notification to the Plan Administrator at
any time without withdrawing from the Plan. No interest will be paid on
any cash dividends held by the Company pending investment in the Plan.
CASH PAYMENTS TO PURCHASE SHARES
After enrollment in the Plan and the purchase of shares through the
Initial Cash Investment, Participants may purchase additional shares under
the Plan through Optional Cash Payments delivered to the Plan
Administrator. A Participant may cease making Optional Cash Payments at
any time without withdrawing from the Plan. A Participant may choose to
make an Optional Cash Payment by returning an Optional Cash Payment Form
and enclosing a check or money order payable to Minnesota Power. Payments
may vary in amount, but may not be less than $10 per payment nor more than
$100,000 per year. Optional Cash Payment Forms are included with each
Statement of Account or will be sent to Participants by the Plan
Administrator upon request. Optional Cash Payments received by the Company
are transmitted promptly to a segregated escrow account when purchases are
to be made by the Independent Agent. Any interest earned on the account
will be used to defray costs of administering the Plan. No interest will
be paid on any Initial Cash Investments and Optional Cash Payments held by
the Company pending investment in the Plan. See "Timing of Share
Purchases" below. Initial Cash Investments and Optional Cash Payments will
not be returned to Participants unless a written request is received by the
Plan Administrator no later than five business days prior to the end of the
month in which received.
TIMING OF SHARE PURCHASES
Initial Cash Investments and Optional Cash Payments received during an
Investment Period will be used to purchase shares of Common Stock to be
credited to the Participant's Account as of the Investment Date following
the end of such Investment Period. If an Initial Cash Investment or
Optional Cash Payment is received by the Company during the last four
business days of the month, the shares to be purchased will be purchased
and credited to the Participant's Account as of the second following
Investment Date.
If any Shareholder Authorization Form directing reinvestment of
dividends is received by the Plan Administrator on or prior to a Dividend
Record Date, that dividend is reinvested in shares of Common Stock in
accordance with the Participant's instructions and such shares are credited
to the Participant's Account. If the Shareholder Authorization Form is
received by the Plan Administrator after such Dividend Record Date, that
dividend is paid in cash and reinvestment begins with the next dividend.
The Dividend Record Dates for the payment of dividends on the Company's
Common Stock and Preferred Stock are customarily fifteen days prior to the
Dividend Payment Dates. Common Stock Dividend Payment Dates usually are
the first day of March, June, September and December. The Dividend Payment
Dates for the Preferred Stock usually are the first day of January, April,
July and October.
For example, in the case of a Common Stock dividend paid by the Company
on March 1, for which the record date was February 15, if the Shareholder
Authorization Form directing reinvestment is received by the Plan
Administrator on or prior to February 15, the March 1 dividend will be
reinvested in shares of Common Stock which will be credited to the
Participant's Account as of the Investment Date following such record date.
However, if the Shareholder Authorization Form is received by the Plan
Administrator after February 15, the March 1 dividend will be paid in cash
and reinvestment will not begin until the next dividend. Optional Cash
Payments received after February 15 and no later than five business days
before the end of February also will be invested in shares of Common Stock
which will be credited to the Participant s Account as of the Investment
Date following the Investment Period in which such payments are received,
although the March 1 dividend will not be paid on these newly acquired
shares because they were not held on the Dividend Record Date. Optional
Cash Payments received by the Plan Administrator during the last four
business days of February will be held and invested with all other Optional
Cash Payments received during the period commencing the day after the fifth
business day prior to the end of February and ending on the fifth business
day prior to the end of March and will be credited to the Participant's
Account as of the Investment Date immediately following the last day of
March.
NUMBER OF COMMON SHARES PURCHASED FOR PARTICIPANTS
Shares of Common Stock purchased under the Plan by a Participant and
shares of Common Stock represented by certificates deposited by a
Participant for Safekeeping in the Plan will be credited to that
Participant's Account under the Plan. The number of shares purchased for
each Participant with respect to any Investment Period depends upon (a) the
amount of the Participant s dividends to be reinvested and Optional Cash
Payments to be invested, and (b) the price of the shares of Common Stock
purchased. Each Participant's Account is credited with that number of
shares, including any fractional share computed to three decimal places,
equal to the total amount of dividends reinvested or Optional Cash Payments
invested on such Participant's behalf divided by the applicable price per
share. Other than the $100,000 maximum cash investment per year, the Plan
does not limit the number of shares of Common Stock which any Participant
may purchase. THE MANNER IN WHICH THE PLAN OPERATES DOES NOT PERMIT THE
PLAN ADMINISTRATOR TO HONOR A REQUEST THAT A SPECIFIC NUMBER OF SHARES BE
PURCHASED.
COSTS UNDER THE PLAN
No brokerage fees, commissions or other charges will be incurred by
Participants for shares purchased for their Plan Accounts. However, any
such charges paid by the Company will be reported to the Internal Revenue
Service (IRS) by the Company as income to the Participant. Because of the
volume of shares purchased through the Plan, commissions that the Company
pays on behalf of Participants should be less than those which Participants
would otherwise pay should they purchase, individually, the same number
shares on the open market.
If a Participant requests the Plan Administrator to sell shares of
Common Stock through the Plan (other than a request for the sale of less
than one share), the Participant will pay a nominal administrative fee and
applicable taxes. There are no other service charges for participating in
the Plan. All costs of administration of the Plan are paid by the Company.
However, the Company reserves the right at any time to charge an
administrative fee for costs that are reasonably related to actual
administrative costs incurred by the Company as Plan Administrator. These
costs include printing and mailing costs for prospectuses, brochures and
forms, administrative handling fees for paperwork pursuant to Participant
instructions, and other similar costs. Should the Company determine to
charge such fees, Participants will be notified ninety days prior to their
effective date.
CERTIFICATES FOR SHARES; DEPOSITS AND WITHDRAWALS
Participants can request stock certificates for any number of full
shares credited to their Plan Accounts, and may make such requests without
withdrawing from the Plan. There is no charge for this service. A written
request must be made to the Plan Administrator by (i) completing the change
in participation form on the reverse side of the Optional Cash Payment
Form, or (ii) by submitting a letter of instruction indicating the Account
number and registration. The request should indicate the number of shares
to be certificated and must be signed by ALL Account owners. A separate
request must be made each time a certificate is requested. Requests are
processed as soon as practicable after receipt. Generally, the
certificates are issued within five business days after the Company
receives the request. Any remaining full and fractional shares will
continue to be held in Participants' Accounts. Certificates for fractional
shares will not be issued under any circumstances. If a Participant
requests the issuance of certificates for shares credited to his or her
Plan Account, dividends on such shares will continue to be reinvested in
full unless the Participant requests that dividends not be reinvested and
instead be paid by check in full or, alternatively, be partially reinvested
with the amount not reinvested paid by check. Such requests must be in
writing, directed to Shareholder Services and received by Shareholder
Services not later than the Dividend Record Date for a dividend payment in
order to stop the reinvestment of that payment in full.
CHANGE IN MANNER OF PARTICIPATION
A Participant may, without withdrawing from the Plan, request the Plan
Administrator to stop the reinvestment of any cash dividends on shares of
Common Stock and/or Preferred Stock registered in the Participant's name by
giving written notice to the Plan Administrator. In order to stop the
reinvestment of a cash dividend payment, such written notice must be
received by the Plan Administrator not later than the Dividend Record Date
for such dividend payment.
TRANSFER OR ASSIGNMENT OF COMMON STOCK HELD IN A PLAN ACCOUNT
A Participant may instruct the Plan Administrator to transfer or assign
Plan shares to another Account or to a new Account. Such instructions must
be accompanied by appropriate documentation and must comply with transfer
regulations and applicable laws. Participants may call the Plan
Administrator for specifics as to requirements for transfer.
SHARES PLEDGED
Shares held in a Plan Account may not be pledged as collateral.
Participants wishing to use their Shares in the Plan as collateral must
have certificates issued for the shares. See "Certificates for Shares;
Deposits and Withdrawals" above. The certificates can then be delivered as
collateral. A Participant does not withdraw from the Plan if shares are
certificated in this manner.
SHAREHOLDER VOTING
For each meeting of shareholders, Participants receive proxy cards
covering total full and fractional shares held, including shares held
directly and shares held under the Plan. If a proxy card is returned
properly signed and marked for voting, the shares covered are voted as
marked. If a proxy card is returned properly signed, but without
instructions as to the manner shares are to be voted with respect to any
item thereon, the shares covered are voted in accordance with the
recommendations of the Company's Board of Directors. If the proxy card is
not returned, or if it is returned unexecuted or improperly executed, the
shares covered are not voted unless the Participant votes in person.
SALE OF SHARES
The Plan allows Participants to sell up to 99.999 shares of Common Stock
credited to their Accounts in one transaction per year under the Plan.
This includes shares of Common Stock deposited in the Plan for Safekeeping.
The Company will not charge the Participant an administrative and/or broker
commission fee for this service if less than one share is sold under this
feature of the Plan. The Company will charge the nominal administrative
costs of sales of one or more shares and less than 100 shares. If the
Participant wishes to sell more than once per year or 100 or more shares,
the Participant can request that a certificate be issued for the shares.
Once a certificate is received, an order can be placed to sell through a
broker. Shares acquired through and held in the Plan, as well as shares
surrendered for Safekeeping, may be sold or certificated in this manner.
Shares held outside the Plan may not be sold through the Plan. A written
request must be made to the Plan Administrator (i) by completing the
change in participation form on the reverse side of the Optional Cash
Payment Form, or (ii) by submitting a letter of instruction indicating the
account number and registration. The request should indicate the number of
shares to be sold and must be signed by ALL Account owners.
Plan shares will generally be sold or certificated by the Company within
five business days following receipt of the request. Sale requests
received during the dividend processing period, however, may be delayed
until the dividend processing is completed. The Independent Agent or the
Plan Administrator will have full discretion in all matters related to the
sale, including the time of sale, sale price and the markets or persons
through whom the shares are sold. Participants cannot specify a price at
which to sell their shares. A check will be issued for the proceeds of the
sale minus the applicable administrative fee and taxes, and will be made
payable to the registered owners only.
WITHDRAWAL FROM PLAN PARTICIPATION
A Participant may withdraw from the Plan at any time. Participants must
notify the Plan Administrator in writing of their intention to terminate
participation in the Plan. The written request must be made to the Plan
Administrator by completing the change in participation form on the reverse
side of the Optional Cash Payment Form attached to the periodic Statement
of Account or by submitting a letter of instruction indicating the Account
number and registration. The request should indicate that the Participant
wishes to terminate participation in the Plan. All Account owners must
sign the request and indicate whether they wish to receive a stock
certificate or sell their shares. As set forth above, Participants may
terminate participation in the Plan either by selling all the shares in
their Plan Account through the Plan (if such number of shares is less than
100 and the Participant has not sold any other shares credited to his or
her Plan Account in the year of termination) or by having a certificate
issued for a specific number of whole shares in their Account and selling
the fractional balance of shares. Certificates will not be issued for
fractional shares; fractional shares will be sold when terminating
participation in the Plan. Optional Cash Payments received prior to the
request to terminate Plan participation will be invested during the next
Investment Period unless the Participant timely requests the return of that
investment. The termination of Plan participation will be delayed if the
request is received during the dividend processing period or if a
Participant has made an Optional Cash Payment which has not yet been
allocated to his or her Plan Account.
A Participant s withdrawal from the Plan will stop all investment under
the Plan if, in the case of the reinvestment of dividends, notification of
withdrawal is received not later than the Dividend Record Date for a cash
dividend payment normally reinvested by the Participant or, in the case of
Optional Cash Payments, the fifth business day prior to the end of the
month in which the Optional Cash Payment is received by the Plan
Administrator. Any cash dividend or Optional Cash Payment received for
which investment has been stopped by timely notification of withdrawal from
the Plan will be paid by the Plan Administrator to the Participant without
interest.
If the Plan Administrator is not requested to sell shares of Common
Stock held in the Participant's Account upon notification of a
Participant's withdrawal from the Plan, certificates for whole shares
credited to the Participant's Account under the Plan will be issued to the
Participant and a cash payment will be made for any fractional share. The
cash payment for any fractional share will be based on the sale price as
indicated under the heading "Sales of Shares" above. If a Participant
sells or otherwise disposes of all the shares of stock registered in the
Participant's name in certificate form, the Plan Administrator will
continue to reinvest the dividends on the shares credited to the
Participant's Account until the Participant notifies the Company in writing
of its intent to withdraw from the Plan.
Participants terminating their Plan participation will receive a Plan
History Statement detailing the current Plan Account history. THE PLAN
HISTORY STATEMENT SHOULD BE RETAINED FOR TAX PURPOSES.
SALE OR TRANSFER IF A PARTICIPANT DIES
If a Participant dies, cash dividends which the Participant had directed
to be reinvested in Common Stock under the Plan (including all dividends on
shares credited to the Participant's Account under the Plan) will continue
to be reinvested until such time as an authorized representative of the
Participant's estate instructs the Plan Administrator to sell or
certificate shares of the Common Stock credited to the Participant's
Account or requests withdrawal from the Plan. Reinvestment of cash
dividends on shares of Common Stock credited to the Participant's Account
will continue until the Plan Administrator is otherwise instructed by an
authorized representative of the Participant's estate. Optional Cash
Payments sent prior to a Participant's death will be invested in shares of
Common Stock unless, prior to investment, an authorized representative of
the Participant's estate instructs the Plan Administrator not to make the
investment. All instructions and requests by authorized representatives of
a deceased Participant's estate must be accompanied by appropriate
documentation and must comply with the transfer requirements and any
applicable laws. Representatives of a Participant's estate should contact
the Plan Administrator for specific information.
SAFEKEEPING
A Participant may deposit certificates representing shares of the
Company's Common Stock registered in his or her name into his or her Plan
Account for Safekeeping. Certificates representing shares to be deposited
for Safekeeping should be sent, together with a completed Shareholder
Authorization Form, to the Plan Administrator. It is suggested that
Participants use certified or registered mail when sending stock
certificates, declaring a value equal to 2% of the market value of the
shares on the date of mailing. This amount is the approximate cost of
replacing the certificates should they be lost in the mail. CERTIFICATES
SURRENDERED FOR SAFEKEEPING SHOULD NOT BE ENDORSED. A Shareholder
Authorization Form may be obtained at any time by request to the Plan
Administrator.
It is the responsibility of the Participant to retain records relative
to the cost of any shares represented by certificates deposited for
Safekeeping. Participants may submit certificates for Safekeeping at any
time while participating in the Plan. Notification will be sent confirming
receipt of certificates surrendered for Safekeeping. COMMON STOCK
SURRENDERED FOR SAFEKEEPING WILL BE TREATED IN THE SAME MANNER AS SHARES
PURCHASED THROUGH THE PLAN.
STATEMENTS OF ACCOUNT; SHAREHOLDER COMMUNICATIONS
The Plan Administrator maintains an Account for each Participant. All
shares purchased for a Participant under the Plan or delivered by a
Participant for Safekeeping are credited to, and held in, such
Participant's Account. Shares are withdrawn from a Participant's Account
when certificates for shares are issued to, or shares are sold for, a
Participant. In addition to a quarterly statement of his or her Account,
each Participant receives a monthly statement for each of the following
transactions: (i) purchase of additional shares with Optional Cash
Payments, (ii) deposit of shares into the Plan for Safekeeping, (iii) sale
of shares held in the Plan, (iv) withdrawal of Plan shares in certificate
form, (v) transfer of shares into another Account, and (vi) upon
termination of the Plan. THE STATEMENTS OF ACCOUNT ARE A PARTICIPANT'S
CONTINUING RECORD OF THE COST OF SHARES PURCHASED, THEIR BASIS FOR FEDERAL
INCOME TAX PURPOSES, THE PROCEEDS OF SALES AND THE AMOUNT OF DIVIDENDS
REPORTABLE FOR FEDERAL INCOME TAX PURPOSES, AND SHOULD BE RETAINED FOR
INCOME TAX PURPOSES. Each Participant also receives copies of the same
communications sent to all holders of the Company's Common Stock and
Preferred Stock, including the Company's Annual Report and any Quarterly
Reports to Shareholders, Notice of Annual Meeting and Proxy Statement and
tax information for reporting dividends paid.
RESPONSIBILITY OF THE COMPANY AND ITS AGENTS UNDER THE PLAN
Neither the Company, in its individual capacity or as Plan Administrator
or Custodian, nor any independent agent appointed by the Company pursuant
to the Plan will be liable for any act done in good faith or for any good
faith omission to act with respect to the Plan, including, without
limitation, any claim of liability (i) arising out of failure to terminate
a Participant's Account upon such Participant's death prior to receipt of
notice in writing of such death, (ii) with respect to the prices or times
at which, or sources from which, shares are purchased or sold for
Participants, or (iii) with respect to any fluctuation in market value
before or after any purchase or sale of shares.
PARTICIPANTS MUST RECOGNIZE THAT THE COMPANY CANNOT ASSURE THEM A
PROFIT, OR PROTECT THEM AGAINST LOSSES, ON SHARES PURCHASED PURSUANT TO THE
PLAN. THE MARKET PRICE OF COMMON STOCK CAN FLUCTUATE SUBSTANTIALLY.
PARTICIPANTS ACCEPT THE RISKS AS WELL AS THE BENEFITS OF THE PLAN.
PARTICIPANT RESPONSIBILITIES UNDER THE PLAN
Plan shares are subject to escheatment to the state in which the
Participant resides in the event that such shares are deemed, under such
state's laws, to have been abandoned by the Participant. Participants,
therefore, should notify the Plan Administrator promptly in writing of any
change of address. Statements of Account and other communications to
Participants will be addressed to them at the last address of record
provided by Participants to the Plan Administrator.
RIGHTS OFFERING AND STOCK SPLIT
In a rights offering, warrants representing rights on all shares held
directly by each Participant, including those credited to the Participant's
Account under the Plan, will be mailed directly to the Participant in the
same manner as to shareholders not participating in the Plan.
Rights based on a fractional share held in the Plan will be sold by the
Plan Administrator and the proceeds will be credited to the Participant's
Account under the Plan and applied as cash dividends to purchase Common
Stock to be credited to the Participant's Account as of the Investment Date
following the next Investment Period in which Common Stock is purchased
with reinvested dividends.
Any shares issued pursuant to a stock split distributed by the Company
on shares credited to the Participant's Account under the Plan will be
added to the Participant's Account. Shares issued pursuant to a stock
split distributed on any certificated shares registered in the name of the
Participant will be mailed directly to the Participant in the same manner
as to shareholders who are not participating in the Plan.
MODIFICATION OR TERMINATION OF PLAN; TERMINATION OF PARTICIPANTS
The Company reserves the right to suspend, modify, amend or terminate
the Plan at any time and to interpret and regulate the Plan as it deems
necessary or desirable in connection with the operation of the Plan. The
Company also reserves the right, at its discretion, to terminate
Participants who no longer actively participate in the Plan. All affected
Participants will receive notice of any such suspension, modification or
termination. In the event of any such termination, affected Participants'
shares held under the Plan will be delivered or sold in the manner
described under the heading "Withdrawal from Plan Participation" above.
In addition, the Company may terminate a Participant's participation in
the Plan if it believes that such participation may be contrary to the
general intent of the Plan or in violation of applicable law. The
Participant will receive a certificate for whole shares and a check for the
cash value of the fractional share in his or her Plan Account.
PARTICIPANTS' INCOME TAX WITHHOLDING
In the case of a participating foreign stockholder whose dividends are
subject to United States income tax withholding, or a domestic stockholder
subject to backup tax withholding, the tax required to be withheld will be
deducted from the amount of any cash dividend otherwise to be applied to
the purchase of shares for the Participant s Account under the Plan, and
the amount of dividend after such deduction will be applied to the purchase
of additional shares. The regular Statements of Account sent to such
Participants will indicate the amount of tax withheld. Income tax withheld
by the Company may not be refunded by the Company but may be claimed as a
credit on an individual s Federal income tax return. In addition,
withholding will occur on any sale of shares if a Participant s Account is
subject to income tax withholding. The check sent to the Participant will
be reduced by the amount of tax withheld and any applicable administrative
fees or broker commissions.
FEDERAL INCOME TAX CONSEQUENCES
With respect to reinvested cash dividends used to purchase authorized
but unissued shares from the Company, a Participant will be treated for
Federal income tax purposes as having received a distribution in an amount
equal to the fair market value on the Dividend Payment Date of the full and
fractional number of shares purchased with reinvested dividends. The fair
market value of such shares on the Dividend Payment Date will be treated as
dividend income to the Participant. The tax basis of the shares so
purchased will be equal to the fair market value of such shares on the
Dividend Payment Date.
With respect to reinvested cash dividends used to purchase shares in the
open market, a Participant will be treated for Federal income tax purposes
as having received a dividend distribution in an amount equal to the cash
dividend reinvested plus brokerage fees, commissions or other service
charges if paid by the Company to obtain the shares. The cash dividend
reinvested plus such charges will be treated as dividend income to the
Participant. The tax basis of the shares so purchased will be equal to the
amount of the dividend distribution.
A Participant who purchases shares with Optional Cash Payments will
recognize no taxable income upon such purchases except to the extent of
brokerage fees, commissions or other service charges paid by the Company to
obtain the shares. The tax basis of shares purchased in this manner will
be the amount of the Optional Cash Payment plus such charges as may be paid
by the Company, if applicable.
The holding period for shares acquired under the Plan begins on the day
after the shares are allocated and credited to Participants Accounts. A
Participant s dividend distribution and any additional income, such as
brokers commission the Company pays on a Participant's behalf, will be
reported on the Participant s year-end Form 1099-DIV.
For a foreign shareholder of the Company s Common Stock and/or Preferred
Stock whose cash dividends are subject to United States income tax
withholding or a shareholder of the Company s Common Stock and/or Preferred
Stock who is subject to backup withholding who elects to have cash
dividends on all or a portion of the Participant s Common Stock and/or
Preferred Stock reinvested, (i) the amount reinvested will be reduced by
the amount of tax required to be withheld and (ii) the amount of tax so
withheld will be included for IRS reporting purposes in the dividend income
of the foreign Participant or Participant subject to backup withholding.
The statements confirming purchases for the foreign Participants, and
Participants subject to backup withholding, will indicate the net cash
dividend payment reinvested.
Foreign shareholders, and Participants subject to backup withholding,
who elect to participate through the Optional Cash Payment feature only
will continue to receive cash dividends on shares registered in their names
in the same manner as if they were not participating in the Plan. Optional
Cash Payments received from foreign shareholders must be in United States
dollars and will be invested in accordance with the Plan procedures.
A Participant will not realize any taxable income whenever certificates
for whole shares credited to the Participant s Account under the Plan are
issued to the Participant. However, a Participant will realize a gain or
loss whenever shares are sold. In addition, a Participant will realize a
gain or loss upon receipt of a cash payment for full or fractional shares
credited to the Participant's Account. The amount of any such gain or loss
will be the difference between the amount which the Participant receives
for the share(s) and the Participant's tax basis thereof.
The information set forth above is only a summary and does not purport
to be a complete description of all tax consequences of participation in
the Plan. The description may be affected by future legislation, IRS
rulings and regulations, or court decisions. In addition, the taxation of
foreign shareholders, except as noted, is not discussed in this Prospectus.
Accordingly, Participants should consult with their own tax advisors with
respect to the Federal, state, local and foreign tax consequences of
participation in the Plan. The foregoing discussion assumes that all
dividend distributions are supported by earnings and profits of the
Company.
DESCRIPTION OF COMMON STOCK
General. The following statements relating to the Common Stock are
merely an outline and do not purport to be complete. They are qualified in
their entirety by reference to the Company's Articles of Incorporation
(Articles of Incorporation) and the Mortgage and Deed of Trust of the
Company. Reference is also made to the laws of the State of Minnesota.
The Company's authorized capital stock consists of 65,000,000 shares of
Common Stock, without par value, 116,000 shares of 5% Preferred Stock, $100
par value, 1,000,000 shares of Serial Preferred Stock, without par value,
and 2,500,000 shares of Serial Preferred Stock A, without par value.
Dividend Rights. The Common Stock is entitled to all dividends after
full provision for dividends on the issued and outstanding Preferred Stocks
and the sinking fund requirements of the Serial Preferred Stock A of the
$7.125 Series and $6.70 Series.
The Articles of Incorporation provide that so long as any shares of the
Company's Preferred Stocks are outstanding, cash dividends on Common Stock
are restricted to 75 percent of available net income when Common Stock
equity is or would become less than 25 percent but more than 20 percent of
total capitalization. This restriction becomes 50 percent when such equity
is or would become less than 20 percent. See Note 8 to Consolidated
Financial Statements incorporated by reference in the Company's 1995 Form
10-K.
Voting Rights (Non-Cumulative Voting). Holders of Common Stock are
entitled to notice of and to vote at any meeting of shareholders. Each
share of the Common Stock, as well as each share of the issued and
outstanding Preferred Stocks, is entitled to one vote. Since the holders of
such shares do not have cumulative voting rights, the holders of more than
50 percent of the shares voting can elect all the Company s directors, and
in such event the holders of the remaining shares voting (less than
50 percent) cannot elect any directors. In addition, the Preferred Stocks
are expressly entitled, as one class, to elect a majority of the directors
(the Common Stock, as one class, electing the minority) whenever dividends
on any of such Preferred Stocks shall be in default in the amount of four
quarterly payments and thereafter until all such dividends in default shall
have been paid. The Articles of Incorporation include detailed procedures
and other provisions relating to these rights and their termination, such
as quorums, terms of directors elected, vacancies, class voting as between
Preferred Stocks and Common Stock, meetings, adjournments and other
matters.
The Articles of Incorporation contain certain provisions which make it
difficult to obtain control of the Company through transactions not having
the approval of the Board of Directors, including:
(1) A provision requiring the affirmative vote of 75 percent of the
outstanding shares of all classes of capital stock of the Company,
present and entitled to vote, in order to authorize certain
"Business Combinations." Any such Business Combination is required
to meet certain "fair price" and procedural requirements. Neither a
75 percent stockholder vote nor "fair price" is required for any
Business Combination which has been approved by a majority of the
"Disinterested Directors."
(2) A provision permitting a majority of the Disinterested Directors to
determine whether the above requirements have been satisfied.
(3) A provision providing that certain of the Articles of Incorporation
cannot be altered unless approved by 75 percent of the outstanding
shares of all classes of capital stock, present and entitled to
vote, unless such alteration is recommended to the shareholders by
a majority of the Disinterested Directors.
Liquidation Rights. After satisfaction of creditors and of the
preferential liquidation rights of the outstanding Preferred Stocks ($100
per share plus unpaid accumulated dividends), the holders of the Common
Stock are entitled to share ratably in the distribution of all remaining
assets.
Miscellaneous. Holders of Common Stock have no preemptive or conversion
rights.
The Common Stock is listed on the New York Stock Exchange.
The transfer agents for the Common Stock are Norwest Bank Minnesota,
N.A. and the Company. The registrars for the Common Stock are Norwest Bank
Minnesota, N.A. and First Bank, National Association.
EXPERTS
The Company's consolidated financial statements incorporated in this
Prospectus by reference to the Company's 1995 10-K, except as they relate
to ADESA, have been audited by Price Waterhouse LLP, independent
accountants, and, insofar as they relate to ADESA, by Ernst & Young LLP,
independent auditors. 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's 1995 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 for the period from July
1, 1995 to December 31, 1995 which are included in the consolidated
financial statements of the Company incorporated in this Prospectus by
reference to the Company's 1995 Form 10-K have been audited by Ernst &
Young LLP, independent auditors, as set forth in their report thereon
included in said 1995 Form 10-K. Such report is given upon the authority
of such firm as experts in accounting and auditing.
The statements as to matters of law and legal conclusions under
"Description of Common Stock" in this Prospectus and under "Item 1.
Business", in the Company's 1995 Form 10-K incorporated herein by
reference, have been reviewed by Philip R. Halverson, Esq., Duluth,
Minnesota, Vice President, General Counsel and Corporate Secretary for the
Company. The statements under "Federal Income Tax Consequences" in this
Prospectus have been reviewed by Reid & Priest LLP, New York, New York.
All of such statements and conclusions are set forth or incorporated by
reference herein in reliance upon the opinions of said individual and firm,
respectively, as experts.
As of March 1, 1996, Mr. Halverson owned approximately 4,088 shares of
the Common Stock of the Company. Mr. Halverson is acquiring additional
shares of Common Stock at regular interludes as a participant in the
Company's Employee Stock Purchase Plan, Employee Stock Ownership Plan and
Supplemental Retirement Plan.
LEGAL OPINIONS
The legality of the shares of Common Stock offered hereby will be passed
upon for the Company by Mr. Halverson and by Reid & Priest LLP, New York,
New York, counsel for the Company. Reid & Priest LLP may rely as to all
matters of Minnesota law upon the opinion of Mr. Halverson.
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The expenses in connection with the offering of the securities being
registered are:
Filing fee - Securities and Exchange Commission....... $ 46,660
Stock exchange listing fee............................ 3,500
Fees of Company's legal counsel*...................... 25,000
Auditors' fees*....................................... 3,000
Printing, including registration statement, prospectus,
exhibits, etc.*...................................... 20,000
Miscellaneous expenses*............................... 1,840
--------
*Total................................................ $100,000
========
---------------------------------
* Estimated
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 302A.521 of the Minnesota Business Corporation Act generally
provides for the indemnification of directors, officers or employees of a
corporation made or threatened to be made a party to a proceeding by reason
of the former or present official capacity of the person against judgments,
penalties and fines (including attorneys' fees and disbursements) where
such person, among other things, has not been indemnified by another
organization, acted in good faith, received no improper personal benefit
and with respect to any criminal proceeding, had no reasonable cause to
believe his conduct was unlawful.
Section 13 of the Bylaws of the Company contains the following
provisions relative to indemnification of directors and officers:
"The Company shall reimburse or indemnify each present and future
director and officer of the Company (and his or her heirs, executors and
administrators) for or against all expenses reasonably incurred by such
director or officer in connection with or arising out of any action, suit
or proceeding in which such director or officer may be involved by reason
of being or having been a director or officer of the Company. Such
indemnification for reasonable expenses is to be to the fullest extent
permitted by the Minnesota Business Corporation Act, Minnesota Statutes
Chapter 302A. By affirmative vote of the Board of Directors or with written
approval of the Chairman and Chief Executive Officer, such indemnification
may be extended to include agents and employees who are not directors or
officers of the Company, but who would otherwise be indemnified for acts
and omissions under Chapter 302A of the Minnesota Business Corporation
Act, if such agent or employee were an officer of the Company."
"Reasonable expenses may include reimbursement of attorney's fees and
disbursements, including those incurred by a person in connection with an
appearance as a witness."
"Upon written request to the Company and approval by the Chairman and
Chief Executive Officer, an agent or employee for whom indemnification has
been extended, or an officer or director may receive an advance for
reasonable expenses if such agent, employee, officer or director is made or
threatened to be made a party to a proceeding involving a matter for which
indemnification is believed to be available under Minnesota Statutes
Chapter 302A."
"The foregoing rights shall not be exclusive of other rights to which
any director or officer may otherwise be entitled and shall be available
whether or not the director or officer continues to be a director or
officer at the time of incurring such expenses and liabilities."
The Company has insurance covering its expenditures which might arise
in connection with the lawful indemnification of its directors and officers
for their liabilities and expenses, and insuring officers and directors of
the Company against certain other liabilities and expenses.
ITEM 16. EXHIBITS.
+4(a)1 - Articles of Incorporation, restated as of July 27, 1988
(filed as Exhibit 3(a), File No. 33-24936).
+4(a)2 - Certificate Fixing Terms of Serial Preferred Stock A,
$7.125 Series (filed as Exhibit 3(a)2, File No. 33-
50143).
+4(a)3 - Certificate Fixing Terms of Serial Preferred Stock A,
$6.70 Series (filed as Exhibit 3(a)3, File No. 33-
50143).
+4(b) - Bylaws as amended January 23, 1991 (filed as Exhibit
3(b), File No. 33-45549).
+4(c)1 - Mortgage and Deed of Trust, dated as of September 1,
1945, between the Company and Irving Trust Company (now
The Bank of New York) and Richard H. West (W. T.
Cunningham, successor), Trustees (filed as Exhibit
7(c), File No. 2-5865).
+4(c)2 - Supplemental Indentures to Mortgage and Deed of Trust:
Reference
---------
Number Dated as of File Exhibit
----- ---------- -------- -------
First............... March 1, 1949 2-7826 7(b)
Second.............. July 1, 1951 2-9036 7(c)
Third............... March 1, 1957 2-13075 2(c)
Fourth.............. January 1, 1968 2-27794 2(c)
Fifth............... April 1, 1971 2-39537 2(c)
Sixth............... August 1, 1975 2-54116 2(c)
Seventh............. September 1, 1976 2-57014 2(c)
Eighth.............. September 1, 1977 2-59690 2(c)
Ninth............... April 1, 1978 2-60866 2(c)
Tenth............... August 1, 1978 2-62852 2(d)2
Eleventh............ December 1, 1982 2-56649 4(a)3
Twelfth............. April 1, 1987 33-30224 4(a)3
Thirteenth.......... March 1, 1992 33-47438 4(b)
Fourteenth.......... June 1, 1992 33-55240 4(b)
Fifteenth........... July 1, 1992 33-55240 4(c)
Sixteenth........... July 1, 1992 33-55240 4(d)
Seventeenth......... February 1, 1993 33-50143 4(b)
Eighteenth.......... July 1, 1993 33-50143 4(c)
+4(d) - Mortgage and Deed of Trust, dated as of March 1, 1943,
between Superior Water, Light and Power Company and
Chemical Bank & Trust Company (Chemical Bank,
successor) and Howard B. Smith (Steven F. Lasher,
successor), as Trustees (filed as Exhibit 7(c), File
No. 2-8668), as supplemented and modified by First
Supplemental Indenture thereto dated as of March 1,
1951 (filed as Exhibit 2(d)(1), File No. 2-59690),
Second Supplemental Indenture thereto dated as of March
1, 1962 (filed as Exhibit 2(d)1, File No. 2-27794),
Third Supplemental Indenture thereto dated as of
July 1, 1976 (filed as Exhibit 2(e)1, File No. 2-
57478), Fourth Supplemental Indenture thereto dated as
of March 1, 1985 (filed as Exhibit 4(b), File No. 2-
78641), and Fifth Supplemental Indenture thereto, dated
as of December 1, 1992 (filed as Exhibit 4(b)1 to Form
10-K for the year ended December 31, 1992, File No. 1-
3548).
5(a) - Opinion and Consent of Philip R. Halverson, Esq., Vice
President, General Counsel and Corporate Secretary of
the Company.
5(b)
and 8 - Opinion and Consent of Reid & Priest LLP.
23(a) - Consent of Price Waterhouse LLP.
23(b) - Consent of Ernst & Young LLP.
23(c) - Consents of Philip R. Halverson, Esq., and Reid &
Priest LLP are contained in Exhibits 5(a) and 5(b),
respectively.
24 - Power of Attorney (see page II-5).
--------------------------------
+ Incorporated herein by reference as indicated.
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by section
10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration
statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent
a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the
total dollar value of securities offered would not exceed
that which was registered) and any deviation from the low or
high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20%
change in the maximum aggregate offering price set forth in
the "Calculation of Registration Fee" table in the effective
registration statement;
(iii) To include any material information with
respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such
information in the registration statement.
Provided, however, that paragraphs (i) and (ii) do not apply if
the registration statement is on Form S-3 or Form S-8 and the
information required to be included in a post-effective amendment
by those paragraphs is contained in periodic reports filed by the
registrant pursuant to section 13 or section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by
reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain
unsold at the termination of the offering.
(4) That, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant's annual
report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 that is incorporated by reference
in the registration statement shall be deemed to be a new
registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or
paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
POWER OF ATTORNEY
Each person whose signature appears below hereby authorizes any agent
for service named in this registration statement to execute in the name of
each such person, and to file with the Securities and Exchange Commission,
any and all amendments, including post-effective amendments, to the
registration statement, and appoints any such agent for service as
attorney-in-fact to sign in each such person's behalf individually and in
each capacity stated below and file any such amendments to the registration
statement and the registrant hereby also appoints each such agent for
service as its attorney-in-fact with like authority to sign and file any
such amendments in its name and behalf.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-3 and has duly caused
this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the City of Duluth, State of Minnesota, on
March 28, 1996.
MINNESOTA POWER & LIGHT COMPANY
(Registrant)
By /s/ Edwin L. Russell
------------------------------
Edwin L. Russell
President and
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the dates indicated.
Signature Title Date
--------- ----- ----
/s/ Edwin L. Russell President, March 28, 1996
------------------- Chief Executive Officer
Edwin L. Russell and Director
President,
Chief Executive Officer
and Director
/s/ D. G. Gartzke Senior Vice President- March 28, 1996
------------------ Finance and
D. G. Gartzke Chief Financial Officer
Senior Vice President-Finance
and Chief Financial
Officer
/s/ Mark A. Schober Corporate Controller March 28, 1996
--------------------
Mark A. Schober
Corporate Controller
/s/ Merrill K. Cragun Director March 28, 1996
----------------------
Merrill K. Cragun
/s/ Dennis E. Evans Director March 28, 1996
----------------------
Dennis E. Evans
/s/ Sister Kathleen Hofer Director March 28, 1996
----------------------
Sister Kathleen Hofer
/s/ D. Michael Hockett Director March 28, 1996
----------------------
D. Michael Hockett
/s/ Peter J. Johnson Director March 28, 1996
----------------------
Peter J. Johnson
/s/ Jack R. Kelly, Jr. Director March 28, 1996
----------------------
Jack R. Kelly, Jr.
/s/ Paula F. McQueen Director March 28, 1996
----------------------
Paula F. McQueen
/s/ Robert S. Nickoloff Director March 28, 1996
----------------------
Robert S. Nickoloff
/s/ Jack I. Rajala Director March 28, 1996
----------------------
Jack I. Rajala
/s/ Charles A. Russell Director March 28, 1996
----------------------
Charles A. Russell
/s/ Arend J. Sandbulte Chairman and Director March 28, 1996
----------------------
Arend J. Sandbulte
/s/ Nick Smith Director March 28, 1996
----------------------
Nick Smith
/s/ Bruce W. Stender Director March 28, 1996
----------------------
Bruce W. Stender
/s/ Donald C. Wegmiller Director March 28, 1996
----------------------
Donald C. Wegmiller
EXHIBIT INDEX
Exhibit Description
------- -----------
5(a) Opinion and Consent of Philip R. Halverson,
Esq., Vice President, General Counsel and
Corporate Secretary of the Company
5(b) and 8 Opinion and Consent of Reid & Priest LLP
23(a) Consent of Price Waterhouse LLP
23(b) Consent of Ernst & Young LLP
24 Power of Attorney (see page II-5)
EXHIBIT 5(a)
MINNESOTA POWER & LIGHT COMPANY
30 West Superior Street
Duluth, Minnesota 55802
Philip R. Halverson - Vice President,
General Counsel and Corporate Secretary
New York, New York
March 28, 1996
Minnesota Power & Light Company
30 West Superior Street
Duluth, Minnesota 55802
Dear Sirs:
With reference to the Registration Statement on Form S-3 to be
filed on or about the date hereof with the Securities and Exchange
Commission by Minnesota Power & Light Company (Company) under the
Securities Act of 1933, as amended (Act) and pursuant to which the Company
intends to register 5,000,000 shares of its common stock, without par value
(Stock) for offer and sale in connection with its Dividend Reinvestment and
Stock Purchase Plan (Plan), I am of the opinion that:
1. The Company is a corporation validly organized and existing
under the laws of the State of Minnesota.
2. All action necessary to make the authorized but unissued
Stock legally issued, fully paid and non-assessable will have been taken
when:
a. The Minnesota Public Utilities Commission shall have
authorized the issuance and sale of the Stock;
b. The Board of Directors or the Executive Committee thereof
shall have taken all actions as may be necessary to
consummate the authorization of the proposed issuance and
sale of the Stock; and
c. The Stock shall have been issued and delivered for the
consideration contemplated in the Registration Statement.
3. Stock purchased on the open market is validly issued, fully
paid and non-assessable.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement and to the use of my name therein.
Very truly yours,
/s/ Philip R. Halverson
-----------------------
Philip R. Halverson
EXHIBIT 5(b) and 8
REID & PRIEST LLP
40 West 57th Stret
New York, New York 10019
New York, New York
March 28, 1996
Minnesota Power & Light Company
30 West Superior Street
Duluth, Minnesota 55802
Dear Sirs:
With reference to the Registration Statement on Form S-3 to be
filed on or about the date hereof with the Securities and Exchange
Commission by Minnesota Power & Light Company (Company) under the
Securities Act of 1933, as amended (Act) and pursuant to which the Company
intends to register 5,000,000 shares of its common stock, without par value
(Stock) for offer and sale in connection with its Dividend Reinvestment and
Stock Purchase Plan (Plan), we are of the opinion that:
1. The Company is a corporation validly organized and existing
under the laws of the State of Minnesota.
2. All action necessary to make the authorized but unissued
Stock legally issued, fully paid and non-assessable will have been taken
when:
a. The Minnesota Public Utilities Commission shall have
authorized the issuance and sale of the Stock;
b. Your Board of Directors or the Executive Committee thereof
shall have taken all actions as may be necessary to
consummate the authorization of the proposed issuance and
sale of the Stock; and
c. The Stock shall have been issued and delivered for the
consideration contemplated in the Registration Statement.
Minnesota Power & Light Company
March 28, 1996
Page 2
3. Stock purchased on the open market is validly issued, fully
paid and non-assessable.
We are further of the opinion that the statements made in the
Registration Statement under the heading "Federal Income Tax Consequences"
constitute an accurate description of the Federal income tax consequences
to participants in the Plan.
We are members of the New York Bar and do not hold ourselves out
as experts on the laws of the State of Minnesota. Accordingly, as to all
matters of Minnesota law we have relied upon the opinion of even date
herewith addressed to you by Philip R. Halverson, Esq., Vice President,
General Counsel and Corporate Secretary of the Company.
We hereby consent to the use of this opinion as an exhibit to
your Registration Statement and to the use of our name therein.
Very truly yours,
/s/ REID & PRIEST LLP
------------------------
REID & PRIEST LLP
EXHIBIT 23(a)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-3 of our report
dated January 22, 1996, which appears on page 21 of the 1995 Annual Report
to Shareholders of Minnesota Power & Light Company, which is incorporated
by reference in Minnesota Power & Light Company's Annual Report on Form 10-
K for the year ended December 31, 1995. We also consent to the
incorporation by reference of our report on the Financial Statement
Schedule, which appears on page 37 of such Annual Report on Form 10-K. We
also consent to the reference to us under the heading "Experts" in such
Prospectus.
/s/ PRICE WATERHOUSE LLP
--------------------------
PRICE WATERHOUSE LLP
Minneapolis, Minnesota
March 28, 1996
EXHIBIT 23(b)
ERNST & YOUNG LLP One Indiana Square Phone: 317 681-7000
Suite 3400 Fax: 317 681-7216
Indianapolis, Indiana 46204-2094
Consent of Independent Auditors
We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3 No. 333-_____) and related Prospectus of
Minnesota Power & Light Company with respect to its Dividend Reinvestment
and Stock Purchase Plan and to the incorporation by reference therein of
our report dated January 17, 1996 (except Note 13, as to which the date is
January 19, 1996), with respect to the consolidated financial statements of
ADESA Corporation for the six months ended December 31, 1995 (not presented
separately therein) which are included in the consolidated financial
statements of Minnesota Power & Light Company that are incorporated by
reference in its Annual Report (Form 10-K) for the year ended
December 31, 1995, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
March 28, 1996