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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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