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certain property that was not “intimately connected to the
generation of power at the plant”. Id. at 61. Property that was
too tenuously tied to generation of the new power commitment
reflected in the contracts as of December 31, 1985, was held not
to qualify under the supply or service transition rule.
Under Wometco's argument, most if not all of its otherwise
eligible property costs incurred after December 31, 1985, and
before January 1, 1991, would likely qualify under the supply or
service transition rule because all improvements to its systems
arguably would be readily identifiable with and necessary to
carry out the broad franchise agreements that were in effect as
of December 31, 1985. As we read the supply or service
transition rule, however, the plain meaning of the statute does
not permit this interpretation. Congress granted only limited,
transition relief to businesses that, as of December 31, 1985,
had binding commitments to undertake specific investments in
qualified property. See Bell Atl. Corp. v. United States, 82
AFTR 2d at 98-7378, 99-1 USTC at 87,036; H. Conf. Rept. 99-841
(Vol. II), 1986-3 C.B. (Vol. 4) 60.
Much like the franchise agreements involved in Bell Atl.
Corp. v. United States, supra, the general language of Wometco's
franchise agreements, without more, reflects only broad industry
standards, not specific contractual commitments to undertake
rebuilds.
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