MN SF53

Authorizes a public utility and the St. Paul district heating and cooling system cogeneration facility to file a joint proposal with the Public Utilities Commission for a new power purchase agreement by December 31, 2021, effective through December 31, 2023, with possible extension until an electrification project completion date.

Requires the cogeneration facility to continue using waste wood as its primary fuel source and establishes compliance requirements for ash tree waste from emerald ash borer quarantine areas, including certification through agricultural certificates or shipping documents, or chipping waste to one inch or less in two dimensions.

Mandates that the power purchase agreement electricity price be comparable to the utility's average cost for refuse-derived fuel and must not increase total costs to ratepayers.

Requires the proposal to include an electrification project plan that evaluates converting the St. Paul district heating and cooling system to 30, 60, and 100 percent renewable energy-powered electricity by December 31, 2027, with analysis of costs, customer bill impacts, greenhouse gas emission reductions, and operational impacts.

Allows the Public Utilities Commission to approve an automatic cost recovery mechanism for prudently incurred electrification project costs if the power purchase agreement provides net benefit to utility customers or the state; costs are recovered only from Minnesota electric service customers.