S T A T E   O F   N E W   Y O R K
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                                  5210

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 11, 2009
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to amend the public service law, in relation to payments equiv-
  alent to tax by certain electric corporations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  66-h  of  the  public service law, as amended by
section 15 of part SS-1 of chapter 57 of the laws of 2008, is amended to
read as follows:
  S 66-h. Certain electric corporations; payment equivalent to tax.  The
commission  shall require each electric corporation that purchases elec-
tricity 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 corpo-
ration, 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, WITH RESPECT TO CONTRACTS EXECUTED PRIOR TO  JANU-
ARY FIRST, TWO THOUSAND, 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  corpo-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07492-01-9
              

A. 5210                             2

ration 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.
  S 2. This act shall take effect immediately.