FPL Group, Inc. & Subsidiaries - Page 164

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               1.  Underwater Intrusion System                                        
               An underwater intrusion system protects a power plant using            
          a barrier system.54  Mr. Paduano testified that “The system                 
          consists of a bridge across the intake canal with a suspension of           
          a barrier, and underwater and surface detection devices.”  FPL              
          claims an ITC regarding the underwater intrusion detection system           
          for the 1990 taxable year.                                                  
               On October 25, 1984, the NRC sent a letter to FPL concerning           
          St. Lucie’s physical security plan.  The letter stated in                   
          pertinent part:                                                             
                    Other changes which were in response to NRR’s                     
               letter of June 5, 1984, relative to the Underwater                     
               Intrusion Detection System (UIDS), are in need of                      
               additional clarification.  However, this additional                    
               information request does not delay the acceptance of                   
               your proposed UIDS.  You should commence implementation                
               of that system upon receipt of this letter.[55]                        
               In response to an FPL letter and a meeting regarding the               
          intake canal barrier and intrusion detection system, on November            
          14, 1985, the NRC sent a letter to FPL concerning St. Lucie Units           
          1 and 2 physical security plan.  The letter stated in part:                 
                    We have determined that the proposal presented by                 
               Florida Power and Light Company * * * is technically                   
               insufficient in that the underwater portion does not                   
               satisfy the requirements of 10 CFR 73.55(c)(4) * * *                   


               54 Harry Paduano, a former manager with FPL, testified that            
          the underwater intrusion system was required by the NRC.                    
               55 Mr. Paduano testified that this letter in effect required           
          FPL to modify the underwater intrusion system.                              




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