Bill > HF1226

This bill provides a comprehensive framework for natural gas utilities to issue "extraordinary event bonds" to recover costs associated with significant, unforeseen events that damage infrastructure or impose substantial financial burdens. The bill defines an extraordinary event as something like a natural disaster, cybersecurity attack, or significant wholesale price increase that could impose significant costs on customers. Natural gas utilities can apply to the Minnesota Public Utilities Commission for a financing order that would allow them to issue bonds to cover these extraordinary event costs, with several key provisions: the bonds must have a maximum 30-year maturity, be rated AA or higher, and be designed to lower overall customer costs or mitigate rate impacts. The extraordinary event charges to repay these bonds would be non-bypassable, meaning all customers in the utility's service area would be required to pay them as a separate line item on their monthly bills. The bill also includes strong protections for bondholders, stipulating that the state cannot take actions that would impair the value of the extraordinary event property or reduce the charges used to repay the bonds. Additionally, the bill provides detailed guidelines for how these bonds can be structured, sold, and managed, and includes provisions for the Public Utilities Commission to use outside experts in reviewing and implementing these financing mechanisms.

Agriculture and Natural Resources

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF1226&ssn=0&y=2025