Bill > SF999

This bill allows natural gas utilities in Minnesota to issue "extraordinary event bonds" to help finance recovery costs after significant, unforeseen events like natural disasters, storms, or extreme price fluctuations in natural gas. The bill creates a comprehensive framework for how these bonds can be issued, defining key terms and establishing a process for utilities to obtain approval from the state's Public Utilities Commission (PUC). Under this legislation, a utility can apply for a financing order to issue bonds that would be repaid through a special, non-bypassable charge on customer bills. The bonds would have specific requirements, such as a maximum 30-year maturity and a high credit rating, and would be designed to help utilities more quickly and efficiently recover extraordinary event costs while potentially lowering overall costs for customers. The bill includes detailed provisions about how the bonds will be structured, how revenues will be collected and managed, and provides protections for bondholders and customers. Importantly, the extraordinary event bonds would not be considered state debt, and the state pledges not to impair the value of the bonds or the associated revenue streams. The legislation aims to provide a flexible, market-based mechanism for utilities to manage unexpected financial challenges while maintaining service reliability and minimizing rate impacts for consumers.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0999&ssn=0&y=2025