Centerior Fuel Corp. v. Zaino

These two cases have been consolidated for review. The appellees, Centerior Fuel Corporation (“CFC”) and OES Fuel, Inc. (“OES Fuel”) (“fuel companies”), are nonutilities that lease nuclear fuel rods to public utilities that are part owners of either the Perry nuclear power plant in Lake County or the Davis-Besse nuclear power plant in Ottawa County. The tax years at issue are 1990-1995.

CFC leases fuel rods to the Cleveland Electric Illuminating Company and the Toledo Edison Company. OES Fuel leases fuel rods to Ohio Edison Company and Pennsylvania Power Company.

In order to raise the millions…