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property/equipment that they purchased for the restaurant. The
Court disagreed and quoted the legislative history confirming
that, for the exception to apply, the subject of the “binding
contract” must be the “construction, reconstruction, or
acquisition of property for use at that premises.” Id.
Despite petitioner’s protestations, the subject matter of
the interchange contract and the amendments was not the
construction, reconstruction, or acquisition of property.
Instead, this contract defined the relationship between the
parties and the sale and exchange of electricity between them.
Although we agree that the interchange contract acknowledged that
FPL was responsible for providing the property or equipment to
facilitate the exchange of power (at least on its side of the
Florida State line), we do not believe that that provision was
the subject matter of the contract.
Similarly, the subject matter of the amended power agreement
is to provide the terms for the purchase and sale of electricity.
While the amended power agreement includes a provision that
describes the internal transmission lines that FPL would
construct, these transmission lines were completed by January 1,
1985. Rather than serving as the subject matter of the amended
power agreement, the provision relating to the construction of
the transmission lines describes how FPL shall satisfy its
obligation to purchase the power.
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