FPL Group, Inc. & Subsidiaries - Page 98

                                       - 18 -                                         
               3.  Reactor Vessel Probes                                              
               A reactor vessel probe measures the water level in a nuclear           
          reactor core.  A reactor vessel probe is custom made and takes up           
          to 45 weeks to obtain.  FPL claims ITCs for the reactor vessel              
          probes in the 1988 taxable year.23                                          
               As a result of an accident at the Three Mile Island nuclear            
          facility (TMI),24 the NRC imposed “Action Plan Requirements”,               
          known as “NUREG-0737”, to prevent similar accidents at other                
          nuclear plants.  One of the regulatory guidelines25 that resulted           
          from the TMI accident was the requirement that nuclear plants               
          monitor coolant inventory.  FPL’s nuclear plants were designed              
          before this guideline and did not have reactor vessel probes; as            
          a result, FPL installed reactor vessel level monitoring                     
          instrumentation.  On July 18, 1986, FPL sent a letter to the                
          Office of Nuclear Reactor Regulation, which detailed the                    
          technical specifications concerning its proposed reactor vessel             
          monitoring system.  On December 5, 1986, the NRC sent FPL a                 

               23 In the taxable years 1989 and 1990, petitioner claims               
          reductions in the amount of the ITC, which resulted from                    
          reductions in the amount of the qualified costs (tax basis) of              
          the property.                                                               
               24 The TMI nuclear plant failed to maintain the proper water           
          level in the nuclear reactor, which resulted in a partial                   
          meltdown in its core.                                                       
               25 Many of the guidelines were embodied in Regulatory                  
          Guideline 1.97, Instrumentation for Light-Water-Cooled Nuclear              
          Power Plants to Assess Plant and Environs Conditions During and             
          Following an Accident, issued by the NRC and dated May 1983.                





Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011