Section 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, 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.