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Oklahoma Gas And Electric

OG&E generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. OG&E furnishes retail electric service in 267 communities and their contiguous rural and suburban areas. The service area covers 30,000 square miles in Oklahoma and western Arkansas including Oklahoma City, the largest city in Oklahoma, and Fort Smith, Arkansas, the second largest city in that state. Of the 267 communities that OG&E serves, 241 are located in Oklahoma, and 26 are in Arkansas. OG&E derived 92 percent of its total electric operating revenues in 2019 from sales in Oklahoma and the remainder from sales in Arkansas. OG&E does not currently serve wholesale customers in either state.

Calendar

3 Aug 22
19 Aug 22
31 Dec 22
Quarter (USD) Dec 21 Sep 21 Jun 21 Mar 21
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Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
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Financial report summary

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Risks
  • The Registrants' profitability depends to a large extent on the ability of OG&E to fully recover its costs, including its cost of capital, from its customers in a timely manner, and there may be changes in the regulatory environment that impair its ability to recover costs from its customers.
  • OG&E's rates are subject to rate regulation by the states of Oklahoma and Arkansas, as well as by a federal agency, whose regulatory paradigms and goals may not be consistent.
  • Costs of compliance with environmental laws and regulations are significant, and the cost of compliance with future environmental laws and regulations may adversely affect our results of operations, financial position or liquidity.
  • We are subject to financial risks associated with climate change and the transition to a lower carbon economy.
  • We may not be able to recover the costs of our substantial investments in capital improvements and additions.
  • The regional power market in which OG&E operates has changing transmission regulatory structures, which may affect the transmission assets and related revenues and expenses.
  • Increased competition resulting from efforts to restructure utility and energy markets could have a significant financial impact on us and consequently impact our revenue.
  • We are subject to substantial utility and energy regulation by governmental agencies. Compliance with current and future utility and energy regulatory requirements and procurement of necessary approvals, permits and certifications may result in significant costs to us.
  • Our results of operations may be impacted by disruptions to fuel supply or the electric grid that are beyond our control.
  • OG&E's electric generation, transmission and distribution assets are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses, increased purchased power costs, accidents and third-party liability.
  • Weather conditions such as tornadoes, thunderstorms, ice storms, wind storms, flooding, earthquakes, prolonged droughts and the occurrence of wildfires, as well as seasonal temperature variations may adversely affect our financial position, results of operations and cash flows.
  • Market performance, increased retirements, changes in retirement plan regulations and increasing costs associated with our Pension Plan, health care plans and other employee-related benefits may adversely affect our financial position, results of operations or cash flows.
  • OGE Energy is a holding company with its primary assets being investments in its subsidiary, OG&E, and in its ownership of a portion of the equity securities of Energy Transfer.
  • OGE Energy does not control Energy Transfer and therefore is not able to cause or prevent actions by Energy Transfer.
  • Changes in Energy Transfer's fair value could adversely affect OGE Energy's net income.
  • OGE Energy's operating cash flow is derived partially from cash distributions it receives from Energy Transfer.
  • Income from Energy Transfer's midstream, transportation, terminalling and storage operations is exposed to risks due to fluctuations in the demand for and price of natural gas, NGLs, crude oil and refined products that are beyond Energy Transfer's control.
  • Economic conditions could negatively impact our business and our results of operations.
  • We are subject to cybersecurity risks and increased reliance on processes dependent on technology.
  • The failure of our technology infrastructure, or the failure to enhance existing technology infrastructure and implement new technology, could adversely affect our business.
  • Terrorist attacks, and the threat of terrorist attacks, have resulted in increased costs to our business and could impact our ability to operate critical infrastructure. Continued hostilities or sustained military campaigns may adversely impact our financial position, results of operations and cash flows.
  • We face certain human resource risks associated with the availability of trained and qualified labor to meet our future staffing requirements.
  • Certain provisions in our charter documents have anti-takeover effects.
  • We may be able to incur substantially more indebtedness, which may increase the risks created by our indebtedness.
  • Our debt levels may limit our flexibility in obtaining additional financing and in pursuing other business opportunities.
  • We are exposed to the credit risk of our key customers and counterparties, and any material nonpayment or nonperformance by our key customers and counterparties could adversely affect our financial position, results of operations and cash flows.
Management Discussion
  • (A)Other operations primarily includes the operations of the holding company and consolidating eliminations. For the three and six months ended June 30, 2022, other operations includes a $6.1 million tax expense and a $5.8 million tax benefit, respectively, due to a consolidating tax adjustment, primarily related to mark-to-market activity and the gain on sale of Energy Transfer limited partner units, that is expected to eliminate over the remainder of the year.
  • (A)Decreased during the six months ended June 30, 2022 primarily due to both elevated pricing from Winter Storm Uri and higher market prices related to increased natural gas prices in 2021.
  • (B)Degree days are calculated as follows: The high and low degrees of a particular day are added together and then averaged. If the calculated average is above 65 degrees, then the difference between the calculated average and 65 is expressed as cooling degree days, with each degree of difference equaling one cooling degree day. If the calculated average is below 65 degrees, then the difference between the calculated average and 65 is expressed as heating degree days, with each degree of difference equaling one heating degree

Content analysis

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H.S. sophomore Avg
New words: affirmed, alter, analogy, ASU, consignment, contest, coupled, enterprise, failed, flexibility, floating, HANA, hardening, intervening, opposition, partly, reclassification, reply, retrospective, SAP, submittal, tied, warmer
Removed: deemed, expire, fly, identify, strength, strike