This bill authorizes Minnesota natural gas utilities to issue extraordinary event bonds to recover costs from unforeseen events that significantly impact their operations, such as natural disasters or spikes in wholesale natural gas prices. It establishes a clear framework for defining key terms related to these bonds and outlines the criteria for what constitutes an extraordinary event. Utilities must submit detailed applications to the commission for financing orders, which will include information about the extraordinary event, estimated costs, and customer charge methodologies. The bill ensures that extraordinary event charges are nonbypassable, requiring all customers in the utility's service area to contribute.

Additionally, the legislation specifies that extraordinary event bonds are not considered state debt and do not obligate the state to levy taxes for repayment. It protects the value of extraordinary event property from claims by the utility's creditors and mandates that successors to a utility must fulfill obligations under financing orders. The bill also allows the commission to hire outside experts for cost reviews and emphasizes the importance of regulatory oversight and customer protection throughout the financing process. Overall, the bill aims to create a structured and transparent approach for utilities to manage financial impacts from extraordinary events while safeguarding customer interests.