<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MINNESOTA
POWER'S CONSOLIDATED BALANCE SHEET, STATEMENT OF INCOME, AND STATEMENT OF CASH
FLOW FOR THE PERIODS ENDED DECEMBER 31, 1997 AND 1996, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000,000
       
                                                  
<PERIOD-TYPE>                   YEAR                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997             DEC-31-1996
<PERIOD-START>                             JAN-01-1997             JAN-01-1996
<PERIOD-END>                               DEC-31-1997             DEC-31-1996
<BOOK-VALUE>                                  PER-BOOK                PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                        1,106                   1,120
<OTHER-PROPERTY-AND-INVEST>                        420                     404
<TOTAL-CURRENT-ASSETS>                             369                     332
<TOTAL-DEFERRED-CHARGES>                            64                      83
<OTHER-ASSETS>                                     213                     207
<TOTAL-ASSETS>                                   2,172                   2,146
<COMMON>                                           416                     394
<CAPITAL-SURPLUS-PAID-IN>                            0                       0
<RETAINED-EARNINGS>                                296                     283
<TOTAL-COMMON-STOCKHOLDERS-EQ>                     651                     611
<PREFERRED-MANDATORY>                               75                      75
<PREFERRED>                                         32                      32
<LONG-TERM-DEBT-NET>                               685                     694
<SHORT-TERM-NOTES>                                 129                     156
<LONG-TERM-NOTES-PAYABLE>                            0                       0
<COMMERCIAL-PAPER-OBLIGATIONS>                       0                       0
<LONG-TERM-DEBT-CURRENT-PORT>                        5                       7
<PREFERRED-STOCK-CURRENT>                            0                       0
<CAPITAL-LEASE-OBLIGATIONS>                          0                       0
<LEASES-CURRENT>                                     0                       0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                     534                     505
<TOT-CAPITALIZATION-AND-LIAB>                    2,172                   2,146
<GROSS-OPERATING-REVENUE>                          954                     847
<INCOME-TAX-EXPENSE>                                47                      20
<OTHER-OPERATING-EXPENSES>                         774                     703
<TOTAL-OPERATING-EXPENSES>                         838                     765
<OPERATING-INCOME-LOSS>                            130                      94
<OTHER-INCOME-NET>                                   9<F1>                   7<F2>
<INCOME-BEFORE-INTEREST-EXPEN>                     142                     131
<TOTAL-INTEREST-EXPENSE>                            64                      62
<NET-INCOME>                                        78                      69
<PREFERRED-STOCK-DIVIDENDS>                          2                       2
<EARNINGS-AVAILABLE-FOR-COMM>                       76                      67
<COMMON-STOCK-DIVIDENDS>                            63                      60
<TOTAL-INTEREST-ON-BONDS>                           49                      51
<CASH-FLOW-OPERATIONS>                             117                      77
<EPS-PRIMARY>                                     2.47                    2.28
<EPS-DILUTED>                                     2.47                    2.28
<FN>
<F1> Includes $15 million of Income from Equity Investments and $6 million for
Distributions on Redeemable Preferred Securities of Subsidiary.
<F2> Includes $12 million of Income from Equity Investments and $5 million for
Distributions on Redeemable Preferred Securities of Subsidiary.
</FN>