The Minnesota Senate today approved emergency legislation to protect ratepayers from surges in their utility bills related to the February polar vortex, which caused unprecedented spikes in natural gas prices from Texas all through the Midwest. Senate File 1018 will provide zero-interest loans through a new Polar Vortex Loan Account to municipal gas utilities (Munis), the nonprofit utilities owned and operated by 33 municipalities throughout Minnesota.

“Folks in Owatonna and dozens of other greater Minnesota communities are looking at massive price surges on their utility bills after last month’s polar vortex,” said Sen. John Jasinski (R-Faribault). “Municipal utilities are nonprofits that don’t have the capacity to handle such a significant, unexpected disruption. These interest-free loans will help utilities and ratepayers avoid a potential economic catastrophe.”

Estimates predict an impact to ratepayer bills between $250 and $500 for a typical residence for the time of the polar vortex alone. A business that typically spends $12,500 a month on gas could be facing a bill of $125,000 due to the spike. 

Minnesota’s largest natural gas provider, Centerpoint, reported a dekatherm of natural gas jumped from $3 to $263 in a little more than a week due to the polar vortex. Every natural gas provider was affected by the surge, which coincided with higher customer usage due to a cold snap here.

Minnesota has two types of utilities: investor-owned natural gas utilities (IOUs) and municipal-owned gas utilities (munis). IOUs can work with the Public Utilities Commission between now and September to determine a plan that will keep their customers’ bills affordable. Munis do not enjoy the same extended timeline, so bills are already being sent to customers for the time of the price surge.