MN SF4262

Natural gas utilities may apply to the Public Utilities Commission for authorization to issue "extraordinary event bonds" (rated AA/Aa2 or better, up to 30-year maturity) to recover costs from events like storms, natural disasters, cyberattacks, terrorism, or temporary wholesale price spikes that damage infrastructure or impose significant costs on customers

The Commission must find that bond issuance provides tangible customer benefits exceeding traditional financing, significantly lowers costs or mitigates rate impacts, and constitutes a prudent mechanism before approving a financing order

Customers would pay a nonbypassable "extraordinary event charge" as a separate line item on monthly bills to repay the bonds and financing costs, with the charge applying to all current and future customers in the utility's service area

Financing orders are irrevocable once issued and remain in effect until bonds are fully repaid; the state pledges not to take any action that impairs the value of extraordinary event property or reduces the charges collected for bondholders

The Commission may hire outside consultants and temporary staff experienced in securitized utility bond financing, with those costs treated as financing costs included in customer charges