FPL Group, Inc. & Subsidiaries - Page 32

                                       - 12 -                                         
          other than [Region] XN-1 for convenience by giving Seller notice            
          of such termination no later than seventeen (17) months prior to            
          the * * * [preliminary scheduled delivery date] that is to be               
          terminated.”                                                                
               FPL budgeted the costs associated for each step in the fuel            
          assembly process.  Carl R. Bible, Jr., an FPL engineering                   
          manager, testified that “Budget items are used to authorize funds           
          to be expended on various activities.”  A 1986 Capital                      
          Expenditures Budget Item (budget item or BI) No. 562 lists the              
          gross cost of expenses to convert uranium concentrates to UF6 as            
          $1,925,000.9  A 1986 BI No. 563 lists the gross cost of                     
          enrichment services as $21,397,000.10  A 1986 BI No. 564 for                
          fabrication of nuclear fuel for St. Lucie Unit 1 (including                 
          engineering and design work) lists the gross cost as $600,000.11            

               9 The budget item breaks down the expenditure as $1,717,000            
          in gross property additions and $208,000 for an allowance of                
          funds during construction.  This budget item was approved on Oct.           
          14, 1985, and contemplated a projected 5-year schedule for                  
          conversion as follows:  $1,717,000 for 1986; $2,282,000 for 1987;           
          $2,794,000 for 1988; $4,097,000 for 1989; and $3,673,000 for                
          1990.                                                                       
               10 The budget item breaks down the expenditure as                      
          $19,266,000 in gross property additions and $2,131,000 for an               
          allowance of funds during construction.  This budget item was               
          approved on Oct. 14, 1985, and contemplated a projected 5-year              
          schedule for enrichment as follows:  $19,266,000 for 1986;                  
          $20,318,000 for 1987; $43,826,000 for 1988; $29,544,000 for 1989;           
          and $33,786,000 for 1990.                                                   
               11 The date that this budget item was approved is illegible            
          on the Court’s copy.  The budget item contemplated a projected 5-           
                                                             (continued...)           





Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011