FPL Group, Inc. & Subsidiaries - Page 87

                                       - 17 -                                         
               FPL developed or established an action item20 to oversee the           
          development of a surveillance program, which is a system that               
          monitors the heat exchangers.21  In a request for engineering               
          assistance, dated November 5, 1985, Turkey Point requested a                
          modification of its plant.22                                                
               ER No. 3811, dated March 1988, and supplemented in October             
          1988, discussed upgrading the surveillance system at Turkey Point           
          Unit 3.  Similarly, ER No. 3854, dated April 1988, with                     
          supplements dated October 1988 and May 1991, discussed the same             
          scope of work with respect to Turkey Point Unit 4.                          
               With respect to the acquisition and installation of the                
          surveillance system, petitioner incurred capitalized costs (tax             
          basis) of $123,742 and $324,668 for equipment placed in service             
          during the 1989 and 1990 taxable years, respectively.                       



               20 An action item is the method by which FPL tracks its                
          commitments to the NRC.                                                     
               21 Mr. Bible testified that there is typically a 3-year lag            
          time to comply with the NRC requirements.                                   
               22 Mr. Bible testified that a “Request for engineering                 
          assistance is how engineering gets a turn on to perform a project           
          here.”  He explained:                                                       
                    What will happen is engineering will produce a                    
               design package, which is how you install things.  It                   
               will show drawings, specifications from buying                         
               equipment, instructions from the field as to how to                    
               install that equipment and update all the associated                   
               designs for the power plant.                                           





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