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underwater intrusion system constitutes separate property, the
system must satisfy the requirements of TRA section 203(b)(1)(B)
independently from St. Lucie Units 1 and 2.
As a result, we find that petitioner failed to incur or
commit $1 million or 5 percent of the construction costs of the
redesigned underwater intrusion system before December 31, 1985.
ER 4866, which was not approved until late 1988/early 1989,
authorized FPL to construct the underwater intrusion system. We
find that FPL did not begin construction before December 31,
1985, because petitioner did not receive authorization for the
redesigned underwater intrusion system until late 1988/early
1989. We find that the underwater intrusion system does not
qualify for an ITC under the self-constructed property rule
because petitioner failed to incur or commit $1 million or 5
percent of the construction costs as of December 31, 1985, and
petitioner did not begin construction of the system as of
December 31, 1985.
b. Condensate Polisher Tie Line
Petitioner contends that the condensate polisher tie line
qualifies for an ITC under the self-constructed property
transitional rule. Petitioner asserts that the condensate
polisher tie line and St. Lucie Unit 2 constitute a single unit
of property. Respondent argues that these items constitute
separate property, and that petitioner is not entitled to an ITC
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