New York Laws
Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity
66-C - Conservation of Energy.

(1) If any such subsidiary shall obtain the use of transmission
facilities or any services necessary for the sale or purchase of the
energy generated from its co-generation, small hydro or alternate energy
production facilities from any affiliated gas, electric or steam
corporation, it shall do so only pursuant to a tariff filed with the
commission by such gas, electric or steam corporation;
(2) Any such subsidiary corporation shall operate independently from
any affiliated gas, electric or steam corporation in the establishment
and operation of co-generation, small hydro or alternate energy
production facilities and in the sale of energy produced from such
facilities. It shall maintain its own books of account, have separate
officers, utilize separate operating, marketing, installation, and
maintenance personnel, and utilize separate computer facilities;
(3) Any such subsidiary corporation shall deal with any affiliated
gas, electric or steam corporation only on an arm's length basis;
(4) All transactions between such a subsidiary corporation and an
affiliated gas, electric or steam corporation which involve the
transfer, either directly or by accounting or other record entries, of
money, personnel, resources, other assets or anything of value, shall be
reduced to writing. A copy of any contract, agreement, or other
arrangement entered into between such entities shall be filed by the
affiliated gas, electric or steam corporation with the commission within
thirty days after the contract, agreement, or other arrangement is made.
This provision shall not apply to any transaction governed by the
provision of any existing state or federal law, regulation or tariff.
(b) Any gas, electric or steam corporation affiliated with such a
subsidiary corporation shall:
(1) not engage in promoting the sale of energy from the subsidiary's
co-generation, small hydro or alternate energy production facilities;
and
(2) not provide to any such subsidiary corporation any customer
proprietary information, unless such information is made available to
any member of the public upon request on the same terms and conditions
under which such information is made available to the subsidiary.
(c) The rate of return for any gas, electric or steam corporation
affiliated with any such subsidiary corporation shall not be based in
whole or in part on the capitalization of such subsidiary nor shall the
revenue requirements for any such gas, electric or steam corporation be
based on any transactions between the gas, electric or steam corporation
and its subsidiary which are not in compliance with paragraph a of this
subdivision.
5. A subsidiary corporation established pursuant to the authorization
of subdivision three of this section may have as an additional purpose
the ownership and/or operation, in whole or in part, of one or more
facilities located outside this state for the production of electric
power and/or thermal energy, together with any land, work, system,
building, improvement, instrumentality or thing necessary or convenient
to the construction, completion or operation of any such facility,
including also such transmission or distribution facilities located
outside this state as may be necessary to conduct electricity or useful
thermal energy to users located at or near a project site. Except as
expressly provided herein, nothing in this subdivision shall be
construed to modify, alter, limit, restrict, abrogate or enlarge the
application of any other provision of this section. For the purposes of
this subdivision, the term "facilities located outside this state for
the production of electrical power and/or thermal energy" shall mean and
include each of the following:
(i) Any "small hydro facility" as defined in subdivision two-c of
section two of this chapter;
(ii) Any solar, wind turbine, waste management resource recovery,
refuse-derived fuel or wood-burning facility which produces electricity,
gas or useful thermal energy;
(iii) Any facility which is fueled by coal, gas, wood, alcohol, solid
waste refuse-derived fuel, water or oil to the extent oil is used as a
backup fuel for such facility, and which simultaneously or sequentially
produces either electrical or shaft horsepower and useful thermal energy
which is used solely for industrial and/or commercial purposes; and
(iv) Any facility which is fueled by coal, gas, wood, alcohol, solid
waste refuse-derived fuel, water or oil, and which produces electrical
power, shaft horsepower or thermal energy which is used solely for
industrial and/or commercial purposes.

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