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lines. We agree with respondent that “a granted application only
constitutes permission to proceed” with the construction of the
transmission lines, not a binding contract to incur the
construction costs. Petitioner further relies on Mr. Saunders’s
testimony that it was “not likely” that FPL would abandon the
completion of the transmission lines after its certificate
received approval. While it may have been unlikely that FPL
would have abandoned these plans to construct the transmission
lines at issue, Mr. Saunders’s testimony does not indicate that
FPL had incurred any costs or had a binding obligation to incur
these costs.
Additionally, TRA section 203(b)(1)(B) mandates that a
taxpayer begin construction as of December 31, 1985, to receive
an ITC under the “self-constructed property” transitional rule.
FPL generally does not begin construction before an expenditure
requisition has been authorized. The expenditure requisitions
that relate to these items indicate that petitioner authorized
the construction of the transmission lines after December 31,
1985.124
124 The following table lists the transmission components at
issue and the authorization dates stated on the expenditure
requests:
Transmission Line Component Year Authorized Expenditure Requisition
Crane-Turnpike 230- 1989 ER 5366
kV line
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