FPL Group, Inc. & Subsidiaries - Page 54

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          and 4 and St Lucie Units 1 and 2 lists the gross cost as                    
          $44,545,000.15                                                              
               FPL placed fuel assemblies in service with total capitalized           
          costs (tax basis) of $51,684,173, $70,782,440, and $133,263,604             
          in the 1988, 1989, and 1990 taxable years, respectively.                    
          B.  Miscellaneous Nuclear Property                                          
               1.  Main Steam Isolation Valve (MSIV) Air Accumulation                 
          System                                                                      
               The MSIV air accumulation system is a safety item, required            
          by the NRC, that shuts down a nuclear power plant and protects              
          the reactor core in an emergency.  FPL claims ITCs for the MSIV             
          air accumulation system in the 1989 and 1990 taxable years.                 
              On July 29, 1985, FPL issued a licensee event report                   
          (licensee event report),16 in which its engineering department              
          determined that the valves at Turkey Point Units 3 and 4 were               
          unable to close the MSIV in accordance with its original                    




               15 The budget item breaks down the expenditure as                      
          $36,836,000 in gross property additions and $7,709,000 for an               
          allowance of funds during construction.  This budget item was               
          approved on Oct. 14, 1985, and contemplates a projected 5-year              
          schedule for fabrication expenses as follows: $36,836,000 for               
          1986; $42,633,000 for 1987; $50,889,000 for 1988; $63,267,000 for           
          1989; and $54,725,000 for 1990.                                             
               16 A licensee event report is a document required to be                
          written and submitted to the NRC.  When something at the plant              
          does not meet design requirements, the report describes the                 
          problem and the corrective action taken.                                    





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