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1989, and 1990 taxable years with tax bases of $1,464,901,
$3,609,855, and $4,832,205, respectively.
We do not think the exchange of these letters contained
sufficient specificity to constitute binding contracts. Rather,
they appear to merely state FPL’s belief that it would be able to
supply service in anticipated but unspecified amounts.
Assuming arguendo that the exchange of documents concerning
the DRI projects constitutes a TRA section 204(a)(3) contract, we
do not think that any of the property for which petitioner claims
ITCs is “readily identifiable” in those documents. The evidence
shows that, at the time of the supposed contract, FPL had only a
general idea of how much or what equipment it would need to meet
the developer’s expected requirements. For example, the record
contains a letter from FPL concerning a proposed DRI that states:
[FPL] anticipates no problem in providing electric
service to this project both during and after
development.
In one of the responses, FPL explained:
Electric service will be made available to the
above development * * *. The required installation of
either overhead or underground electric facilities will
be coordinated between the developer and * * * [FPL].
Upon presentation of required plats and load data,
the engineering required for the installation of
electric service will be initiated by * * * [FPL].
* * *
FPL had only a generalized idea of the DRI project demands for
power, and thus, only a general idea of the equipment that would
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