§ 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 § 301-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 13-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 § 1210 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.

Terms Used In N.Y. Public Service Law 66-H

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.