Section 66-H. Certain electric corporations; payment equivalent to tax  


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  • 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, 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 the sales and compensating use
      taxes imposed on such gas 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.