Exhibit 12
Minnesota Power & Light Company
Computation of Ratios of Earnings to Fixed Charges and
Supplemental Ratios of Earnings to Fixed Charges <F1>
For the Year Ended
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December 31,
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1991 1992 1993 1994 1995
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(In thousands except ratios)
Income from continuing operations $ 70,854 $ 67,821 $ 64,374 $ 59,465 $ 61,857
per consolidated statement of income
Add (deduct)
Current income tax expense 16,371 29,147 29,277 24,116 13,356
Deferred income tax expense (benefit) 9,734 (1,113) 1,084 (981) (11,336)
Deferred investment tax credits (1,615) (1,568) (2,035) (2,478) (865)
Undistributed income from less than
50% owned equity investments (4,941) (5,733) (6,009) (7,547) (9,124)
Minority interest (129) 2,684 (83) (879) 260
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90,274 91,238 86,608 71,696 54,148
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Fixed charges
Interest on long-term debt 44,516 44,008 44,647 48,137 45,713
Capitalized interest -- 422 3,010 -- 1,395
Other interest charges - net 8,008 6,455 1,501 7,382 7,934
Interest component of all rentals 5,695 5,728 5,729 5,737 3,670
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Total fixed charges 58,219 56,613 54,887 61,256 58,712
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Earnings before income taxes and fixed
charges (excluding capitalized interest) $ 148,493 $ 147,429 $ 138,485 $ 132,952 $ 111,465
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Ratio of earnings to fixed charges 2.55 2.60 2.52 2.17 1.90
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Earnings before income taxes and fixed
charges (excluding capitalized interest) $ 148,493 $ 147,429 $ 138,485 $ 132,952 $ 111,465
Supplemental charges 16,846 16,017 15,149 14,370 13,519
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Earnings before income taxes and fixed
and supplemental charges (excluding
capitalized interest) $ 165,339 $ 163,446 $ 153,634 $ 147,322 $ 124,984
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Total fixed charges $ 58,219 $ 56,613 $ 54,887 $ 61,256 $ 58,712
Supplemental charges 16,846 16,017 15,149 14,370 13,519
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Fixed and supplemental charges $ 75,065 $ 72,630 $ 70,036 $ 75,626 $ 72,231
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Supplemental ratio of earnings to fixed
charges <F2> 2.20 2.25 2.19 1.95 1.73
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<FN>
<F1> Ratios for prior periods have been restated to reflect discontinued operations.
<F2> The supplemental ratio of earnings to fixed charges includes the Company's obligation under a contract with Square
Butte Electric Cooperative (Square Butte) which extends through 2007, pursuant to which the Company is purchasing 71
percent of the output of a generating unit capable of generating up to 470 megawatts. The Company is
obligated to pay Square Butte all of Square Butte's leasing and operating and debt service costs, less any amount
collected from the sale of power or energy to others, which shall not have been paid by Square Butte when due. See
Note 12 to the Company's 1995 Consolidated Financial Statements incorporated herein by reference from the Minnesota
Power 1995 Annual Report.
</FN>