This bill, H.F. No. 1226, introduced in the Minnesota House of Representatives, proposes allowing natural gas utilities to issue "extraordinary event bonds" in response to significant unforeseen events that impose substantial costs on customers. Key provisions include:

• Definitions: The bill defines terms related to extraordinary events, including types of bonds, financing mechanisms, and eligible costs.
• Extraordinary Events: These events may include natural disasters, extreme weather, cyberattacks, terrorism, or significant spikes in natural gas prices.
• Bond Issuance: Utilities would be authorized to issue long-term debt securities (extraordinary event bonds) to recover costs associated with responding to extraordinary events.
• Financing Orders: Utilities must seek approval from the Minnesota Public Utilities Commission to issue bonds, ensuring that costs covered are necessary, prudent, and reasonable.
• Charges to Customers: Customers would pay a nonbypassable charge separate from base rates to repay the bonds and associated costs.
• Use of Funds: The financing covers infrastructure repair, system restoration, and related expenses, excluding penalties, fines, or other regulatory costs.

The bill establishes a framework for utilities to manage financial risks from extraordinary events and ensures cost recovery while protecting ratepayers.