MN SF2363

Reduces Minnesota's biomass electric energy mandate from 125 megawatts to 110 megawatts.

Requires Public Utilities Commission approval for a pending power purchase agreement to be reduced from 50 megawatts to 35 megawatts while maintaining energy prices at or below $104 per megawatt-hour.

Permits assignment of the power purchase agreement to two municipal utilities north of Constitutional Route No. 8 that propose to retrofit coal-fired facilities to use biomass fuel.

Establishes a fuel cost adjustment clause allowing reimbursement for fuel procurement and transportation costs exceeding $3.40 per million BTU, including loading, transport, equipment depreciation, and unloading costs.

Specifies that public utilities cannot recover costs not actually and reasonably incurred, and requires full payment for energy delivered provided delivery does not exceed 110 percent annually or 105 percent on average over five-year periods; effective retroactively from January 1, 2014.