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VALENCIA ENERGY v. DEPT. OF REVENUE

No. TX 93-00277.

178 Ariz. 251 (1994)

872 P.2d 206

VALENCIA ENERGY COMPANY v. ARIZONA DEPARTMENT OF REVENUE.

Tax Court of Arizona.

April 4, 1994.

Attorney(s) appearing for the Case

Stephen C. Newmark, Phoenix, for plaintiff.

Attorney Gen. by James M. Susa, Phoenix, for defendant.

OPINION

SCHAFER, Judge.

Tucson Electric Power Company (TEP) built a coal-fired electric plant in Springerville, Arizona which the Alamito Company runs. The Valencia Energy Company, a wholly owned subsidiary of TEP, contracted with Alamito to supply all the coal needed to operate Alamito's burner. The contract requires the coal to be a certain size and to have limited amounts of moisture, ash, and sulfur.

Valencia buys the coal from mines in New Mexico...

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