FPL Group, Inc. & Subsidiaries - Page 167

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               2.  Condensate Polisher Tie Line                                       
               A condensate polisher purifies the feedwater that enters the           
          steam generator to protect the generator from corrosion.  The               
          design for each of the reactors at the St. Lucie plant included a           
          condensate polisher.  FPL claims ITCs for the condensate polisher           
          tie line in the 1989 and 1990 taxable years.                                
               Apparently, in 1982 there was a plan change or modification            
          for St. Lucie Unit 1.  An engineering study, dated November 13,             
          1985, recommended the use of cross-tie piping to protect the                
          generator from corrosion.  The recommended system would purify              
          the feedwater in the second unit by using the polishers at the              
          first unit.  The system uses the cross-tie lines to purify the              
          feedwater by passing the water discharged from the condensate               
          pumps at St. Lucie Unit 2 to the condensate polishers at St.                
          Lucie Unit 1.  After passing through the condensate polisher, the           
          water returns to the condensate system at St. Lucie Unit 2 via              
          the cross-tie lines, and then the water feeds through the steam             
          generators.58                                                               
               ER No. 6195, processed on June 22, 1983, authorized the                
          expenditure of $15,243,000 as part of the “backfit program” on              
          St. Lucie Unit 2.  The ER states:                                           

               58 In a letter dated Jan. 9, 1986, Mr. Paduano recommended             
          the installation of the cross-tie option for St. Lucie Unit 2.              
          The record contains numerous letters describing the design                  
          process for going forward with the condensate polisher cross-tie            
          line for St. Lucie Unit 2.                                                  




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