Lykes Energy, Inc. and Subsidiaries - Page 4




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               People's undertook the following programs to comply with               
          FEECA:                                                                      
                    (1) SINGLE FAMILY RESIDENTIAL HOME BUILDER                        
               PROGRAM.--Under this program, which was designed to                    
               increase the number of gas customers in the new                        
               residential construction market, People's paid builders                
               to install gas appliances in new residential                           
               developments.  For the respective taxable years in                     
               issue, expenditures for this program were $165,077,                    
               $155,636, $198,027, $232,213, $829,481, $1,915,006, and                
               $2,824,892.                                                            
                    (2) RESIDENTIAL CONSERVATION SERVICE PROGRAM.--                   
               Under this program, which was designed to help existing                
               residential customers reduce energy consumption,                       
               People's paid contractors to perform energy efficiency                 
               audits and recommend energy saving steps.  Expenditures                
               for this program were $20,131 in 1988 and $4,974 in                    
               1989.                                                                  
                    (3) REPLACEMENT OF OIL HEATING PROGRAM.--Under                    
               this program, which was targeted at customers mainly                   
               interested in converting oil heat to gas heat, People's                
               paid for part of the cost of installing gas appliances.                
               For the respective taxable years in issue, expenditures                
               for this program were $179,788, $102,230, $81,036,                     
               $92,772, $72,360, $64,756, and $51,810.                                
                    (4) APPLIANCE ENERGY SAVINGS PAYBACK PROGRAM.--                   
               Under this program, which was designed to encourage gas                
               customers to replace existing gas appliances with new,                 
               more energy-efficient appliances, People's generally                   
               subsidized the purchase of new, more energy-efficient                  
               models.  For the respective taxable years in issue,                    
               expenditures for this program were $171,339, $152,505,                 
               $219,728, $160,032, $151,424, $387,110, and $386,070.                  
                    (5) COGENERATION PROMOTION AND FEASIBILITY AUDIT                  
               PROGRAM.--Under this program, which was designed to                    
               encourage industrial, commercial, and institutional                    
               users to generate electricity on-site using natural gas                
               fired generators, People's provided free feasibility                   
               audits to customers considering installing cogeneration                
               facilities.  Expenditures for this program totaled $118                
               in 1989 and $12,500 in 1992.                                           






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Last modified: May 25, 2011