SF999

The bill, labeled S.F. No. 999, aims to authorize natural gas utilities in Minnesota to issue extraordinary event bonds under specific conditions. These bonds are a type of financing that helps utilities cover costs resulting from unforeseen significant events such as natural disasters, acts of terrorism, or sudden spikes in natural gas prices. The bill outlines what constitutes an extraordinary event, the process for issuing the bonds, and how the funds raised will be used -- primarily for restoring or maintaining natural gas services affected by such events.

To manage and repay the bonds, the bill allows affected utilities to impose a special charge on all customers, separate from regular rates. This charge is defined as non-bypassable, meaning all customers in the utility's area must pay it. The revenue from this charge goes solely towards covering the costs of the extraordinary event.

In detail, the bill includes provisions for: - Definitions of various terms related to the bonds. - The establishment of an account and appropriation of funds for the utilities to manage and apply the proceeds of the bonds. - Regulations and oversight measures to ensure that the bonds and the resulting charges are handled responsibly and with transparency.

The legislation encompasses protective measures for customers and stipulates strict guidelines for the utilities to justify the costs and ensure fair distribution of the related financial burdens.