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binding on” December 31, 1985. The conference report clarifies
that “The general binding contract rule applies only to contracts
in which the construction, reconstruction, erection, or
acquisition of property is itself the subject matter of the
contract.” H. Conf. Rept. 99-841 (Vol. II), supra at II-55,
1986-3 C.B. (Vol. 4) at 55.
The agreement for the SJRPP, dated April 2, 1982, is
entitled “Agreement for Joint Ownership, Construction and
Operation of St. John’s River Power Park Coal Units #1 and #2
Between Jacksonville Electric Authority and Florida Power & Light
Company”. The agreement states part of its purpose as:
“WHEREAS, the parties desire to provide for the construction and
operation of Coal Units 1 and 2 by JEA and FPL in accordance with
this Agreement”. Section 2.1.4 of the agreement states that
“This Agreement * * * [constitutes] legal, valid and binding
obligations of FPL enforceable against it in accordance with
their terms”.
Section 3 of the agreement describes the ownership and
construction of the SJRPP. Subsection 3.7 states:
At or before Closing, JEA, as agent, shall establish a
separate account or accounts in the name of the Co-
owners (the “Construction and Plant Account”)
* * *. The Co-owners shall pay into the Construction
and Plant Account (i) in proportion to their Ownership
Interests amounts of Costs of Construction * * *. Such
payment into the Construction and Plant Account shall
be made in accordance with Section 3.8 hereof. * * *
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