FPL Group, Inc. & Subsidiaries - Page 199

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            size and number of distribution substations that FPL needs for                              
            its distribution system.                                                                    
                  A development of regional impact (DRI) project is a large                             
            development project that has an impact beyond a particular                                  
            municipality and becomes subject to the requirements of the                                 
            Florida Administrative Code.  Examples of DRI projects include                              
            large housing developments and commercial construction projects                             
            (regional malls and stadiums).  Regional planning councils                                  
            throughout the State of Florida review DRI projects.  FPL claims                            
            ITCs for the acquisition and construction of property related to                            
            the DRI projects in the 1988, 1989, and 1990 taxable years.                                 
                  Before a developer of a DRI project is permitted to commence                          
            construction, the developer must submit an application for                                  
            development approval to the appropriate regional planning                                   
            council.  The application for development approval requires,                                
            inter alia, a statement or letter from the offsite source of                                
            electricity indicating its ability to provide electric service at                           
            all times during and after the development.90  To fulfill a                                 

                  90 Mr. Hernandez explained how FPL responded when a                                   
            developer requested power:                                                                  
                  We review it to see what work is going to be required                                 
                  in order to serve the project.  We establish a file on                                
                  the project.  We go ahead and determine an area of                                    
                  study including the project.  We look at the existing                                 
                  facilities we have within the area.  We look at the                                   
                  demand on those existing facilities.  We look at what                                 
                  other additional projects are coming on in service in                                 
                                                                          (continued...)                




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Last modified: May 25, 2011