MN SF4630

Authorizes a new power purchase agreement between a public utility and the St. Paul district heating and cooling system cogeneration facility, effective through December 31, 2023, with option for extensions until completion of an electrification project.

Requires the cogeneration facility to continue using waste wood as its primary fuel source and comply with emerald ash borer quarantine requirements when using ash tree waste, either through regulatory compliance documentation or by chipping waste to one inch or less within the originating county.

Requires the electricity price to be comparable to the average cost the utility pays for refuse-derived fuel electricity purchased for sale in Minnesota, as determined by the Public Utilities Commission.

Mandates that any proposal include an electrification project plan to convert the St. Paul district heating and cooling system to renewable energy technologies, with analysis of 30, 60, and 100 percent electrification levels by December 31, 2027, including cost estimates, greenhouse gas reduction projections, and operational impacts.

Allows the public utility to recover prudently incurred electrification project costs through an automatic cost recovery mechanism outside of general rate cases, with reasonable return on capital, limited to Minnesota electric service customers.