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Previous cases have looked to H. Conf. Rept. 99-841 (1986),
1986-3 C.B. (Vol. 4) at 60, for guidance in interpreting the
phrase “readily identifiable with and necessary to carry out” in
section 204(a)(3) of TRA 1986. Id.; United States v.
Commonwealth Energy Sys., 235 F.3d 11 (1st Cir. 2000); Bell Atl.
Corp. v. United States, 224 F.3d 220 (3d Cir. 2000). H. Conf.
Rept. 99-841 (1986), 1986-3 C.B. (Vol. 4) at 60, states:
This transitional rule is applicable only where
the specifications and the amount of the property are
readily ascertainable from the terms of the contract,
or from related documents. A supply or service
contract or agreement to lease must satisfy the
requirements of a binding contract * * * [Emphasis
added.]
Petitioner contends that the fuel assemblies placed in
service in 1990 qualify as transition property under the
provision for supply or service contracts in section 204(a)(3) of
TRA 1986, because the fuel assemblies were readily identifiable
in documents related to the power contracts and necessary to
carry out the power contracts. Petitioner acknowledges that
there were no documented specifications for the fuel assemblies
in the power contracts; however, petitioner argues that the
operating license and amendments and appendices thereto are
documents related to the power contracts and that these “related
documents” provide the amount and specifications of the nuclear
fuel assemblies.
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