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constitute separate property. Petitioner makes no argument that
the distribution and transmission substation components at issue
qualify as self-constructed property independently from the
substations.
As a result, we find that petitioner did not incur or commit
$1 million or 5 percent of the construction costs by December 31,
1985. Even though petitioner’s original plan for these
substations included the components at issue, petitioner provided
no evidence that it actually incurred any costs for these
components before 1986. Also, petitioner failed to offer any
evidence showing that it had a binding obligation, or a
commitment, to pay the construction costs for these components.
Similarly, we find that petitioner failed to establish that
the construction of the distribution and transmission substation
components began by December 31, 1985. For example, the ER
authorizing the construction of the second transformer at the
Alva substation was not authorized until late 1986/early 1987.
Mr. Veronee testified that petitioner did not begin construction
of a component before the budget items and expenditure
requisitions were authorized. Further, petitioner did not
provide any evidence to suggest that it did not follow this
procedure when it installed the components at issue. As a
result, we find that petitioner did not begin construction at the
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