Mesquite v. Ador

Summary

The court held that income from the Power Purchase Agreement is not automatically excluded from an income-based valuation of the power plant, but may be considered only to the extent it reflects income derivable from the plant itself. The court also held that the statutory requirement to include current usage does not independently require consideration of the agreement because the agreement does not change the plant’s use as a base load power plant. The court reversed the tax court’s judgment, remanded for new valuation evidence, and vacated the court of appeals’ opinion.