101 STAT. 1330-454
PUBLIC LAW 100-203—DEC. 22, 1987
"(3) EXCEPTION FOR PROPERTY ACQUIRED TO PROVIDE OUTPUT TO
CERTAIN AREAS.—For purposes of paragraph (1)— "(A) IN GENERAL.—The term 'nongovernmental output property' shall not include any property which is to be used in connection with an output facility 95 percent or more of the output of which will be consumed in— "(i) a qualified service area of the governmental unit acquiring the property, or "(ii) a qualiHed annexed area of such unit. "(B) DEFINITIONS.—For purposes of subparagraph (A)— "(i) QuAUFiED SERVICE AREA.—The term 'qualified service area' means, with respect to the governmental unit acquiring the property, any area throughout which such unit provided (at all times during the 10year period ending on the date such property is acquired by such unit) output of the same type as the output to be provided by such property. For purposes of the preceding sentence, the period before October 14, .FT^i n. 1987, shall not be taken into account. "(ii) QuAUFiED ANNEXED AREA.—The term 'qualified r., •: annexed area' means, with respect to the governmental unit acquiring the property, any area if— (I) such area is contiguous to, and annexed for general governmental purposes into, a qualified service area of such unit, "(II) output from such property is made available to all members of the general public in the annexed area, and
"(III) the annexed area is not greater than 10 percent of such qualified service area. iv; j
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"(C) LIMITATION ON SIZE OF ANNEXED AREA NOT TO APPLY WHERE O U T P U T CAPACITY DOES NOT INCREASE BY MORE THAN
10 PERCENT.—Subclause (III) of subparagraph (B)(ii) shall not apply to an annexation of an area by a governmental unit if the output capacity of the property acquired in connection with the annexation, when added to the output capacity of all other property which is not treated as nongovernmental output property by reason of subparagraph (A)(ii) with respect to such annexed area, does not exceed 10 percent of the output capacity of the property providing output of the same type to the qualified service area into which it is annexed.
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u^jy^ RULES FOR DETERMINING RELATIVE SIZE, ETC.—For
purposes of subparagraphs (B)(ii) and (C)— "(i) The size of any qualified service area and the output capacity of property serving such area shall be determined as the close of the calendar year preceding the calendar year in which the acquisition of nongovernmental output property or the annexation occurs. "(ii) A qualified annexed area shall be treated as part of the qualified service area into which it is annexed for purposes of determining whether any other area an nexed in a later year is a qualified annexed area. "(4)
EXCEPTION FOR PROPERTY CONVERTED TO NONOUTPUT
USE.—For purposes of paragraph (1)—
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