N.Y. Public Service Law § 66-h: Certain electric corporations; payment equivalent to tax

§ 66-h. Certain electric corporations; payment equivalent to tax. The

commission shall require each electric corporation that purchases

electricity from an energy business as defined in subdivision (c) of

section three hundred one-i of the tax law (1) that is a co-generation

facility, as such term is defined in subdivision two-a of section two of

this chapter, or (2) that is a qualifying facility, as such term is

defined by section two hundred one of the Public Utility Regulatory

Policies Act of 1978 (Public Law 95-617) that is a co-generation

facility, or (3) that has executed or will execute a contract for the

sale of electricity through negotiation with an electric corporation or

an auction conducted by an electric corporation pursuant to a

competitive bidding plan approved by the commission, to pay, in addition

to payments made for such purchased electricity under a contract with

such electric corporation, (i) an amount equal to the tax imposed under

article thirteen-A of the tax law with respect to each Mcf of natural

gas used to generate such electricity and (ii) with respect to contracts

for the sale of electricity and/or steam executed prior to January

first, two thousand, any sales and compensating use taxes imposed on

natural gas used in the production of electricity and/or steam by or

pursuant to the authority of section eleven hundred seven or subdivision

(a) of section twelve hundred ten of the tax law, unless such sales and

compensating use taxes imposed are otherwise accounted for in the

payments the electric corporation makes under that contract; provided,

however, that any such amount paid by such electric corporation shall be

recovered through a fuel adjustment mechanism authorized by the

commission; provided, further, that such amount shall not be recovered

from charges for residential use provided by such electric corporation.