FPL Group, Inc. & Subsidiaries - Page 188

                                                - 73 -                                                  
            capacitor banks to the Poinsett substation.  A section of the ER                            
            labeled “purpose and necessity” states, in part:                                            
                  an increased load demand coincident with the nuclear                                  
                  units at Turkey Point out of service and insufficient                                 
                  reactive support will reduce the transfer capability of                               
                  the FPL ties with Southern to scheduled firm                                          
                  interchanges in the 1988 to 1990 time frame.  * * *                                   
                             *     *     *     *     *     *     *                                      
                        Installation of these capacitor banks and                                       
                  associated equipment * * * will provide an increase in                                
                  transfer capability of the ties with Southern * * *.                                  
            ER No. 3623, approved in early 1988, authorized the expenditure                             
            of $992,000 to add a second 230-kV capacitor bank to the Levee                              
            substation.81  ER No. 3219, approved in 1988, authorized the                                
            expenditure of $1,182,715 to add two 88 MVAR 230-kV capacitor                               
            banks to the Duval substation.                                                              
                  A 1986 BI No. 129, approved in 1985, budgeted $13.1 million                           
            to install high initial response exciters.82  ER No. 9327,                                  
            approved in 1986, authorized the expenditure of $1,225,000 to                               
            install a high initial response excitation system at Turkey Point                           
            Unit 2.  ER No. 9334, approved in 1986, authorized the                                      
            expenditure of $740,000 to install a high initial response                                  



                  81 The purpose and necessity stated in this ER is very                                
            similar to that stated in ER No. 3216.                                                      
                  82 Mr. Sanders testified that the installation or                                     
            construction of the high initial response exciters was required                             
            by the interchange contract to effectively utilize the interface.                           





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