MN SF1047

Authorizes a public utility and the St. Paul district heating and cooling system cogeneration facility to file a power purchase agreement proposal by August 1, 2021, with the Public Utilities Commission, with the agreement expiring no later than December 31, 2024.

Requires any approved power purchase agreement to meet conditions including: electricity price not exceeding $98 per megawatt hour, demonstrated significant savings compared to existing agreement, and net benefit to utility customers or the state.

Mandates the proposal include an electrification plan evaluating conversion of the St. Paul district heating and cooling system to renewable energy technologies at three or more levels (10-100 percent), with implementation targeted by December 31, 2027.

Conditions ash waste wood fuel usage on compliance with Minnesota's Emerald Ash Borer quarantine requirements, either through agricultural department certification or by chipping wood to one inch or less within the county of origin.

Prohibits Commission approval of any power purchase agreement after December 31, 2024 unless an electrification project is approved, and allows the utility to recover electrification project costs through an automatic cost recovery mechanism outside of general rate cases.