Rev. Rul. 55-223

Advice has been requested whether the use of one uncompleted unit of a two-unit emergency facility, as defined in section 124A(d)(1) of the Internal Revenue Code of 1939, on an emergency basis for purposes other than those for which the facility was certified will operate to constitute the unit in use a separate emergency facility.

The facility covered by the certificate of necessity consists of a power house building, two generating units, boiler plant equipment, fuel handling equipment, and other equipment essential to the generation of electric power by the two units. A substantial portion of the construction work is common to both generating units.

In December 1953, the first generating unit was placed in operation on an emergency basis, without all parts and controls thereof being completed, to furnish emergency electric power to meet requirements resulting from the influx of imported workers engaged in construction of another project and to furnish construction power to the project of which this unit was a part. On January 1, 1954, there was work uncompleted common to both units. The entire facility was completed in June 1954. The returns of the taxpayer are filed on a calendar year basis.

Based on the foregoing facts, it is held that the establishment of emergency power from one of the generating units before completion for purposes other than those certified, as stated herein, does not operate to constitute that generating unit a separate emergency facility completed prior to January 1, 1954, within the mearning of section 124A of the Code of 1939