Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
Document Information [Line Items] | |
Entity Registrant Name | OKLAHOMA GAS & ELECTRIC CO |
Entity Central Index Key | 74,145 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 40,378,745 |
CONDENSED STATEMENTS OF INCOME
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING REVENUES | $ 586.4 | $ 551.4 | $ 1,042.4 | $ 984.5 |
COST OF SALES | 232.1 | 197.7 | 440.8 | 375.6 |
OPERATING EXPENSES | ||||
Other operation and maintenance | 116.5 | 124.8 | 242.6 | 241.1 |
Depreciation and amortization | 73.7 | 78.4 | 128.4 | 155.1 |
Taxes other than income | 20.2 | 19.1 | 42.5 | 42.7 |
Total operating expenses | 210.4 | 222.3 | 413.5 | 438.9 |
OPERATING INCOME | 143.9 | 131.4 | 188.1 | 170 |
OTHER INCOME (EXPENSE) | ||||
Allowance for equity funds used during construction | 8.5 | 3.7 | 15.4 | 5.3 |
Other income | 7.7 | 4.4 | 14.1 | 8.4 |
Other expense | (0.6) | (1.1) | (1) | (1.4) |
Net other income | 15.6 | 7 | 28.5 | 12.3 |
INTEREST EXPENSE | ||||
Interest on long-term debt | 38.6 | 35.4 | 74.1 | 70.9 |
Allowance for borrowed funds used during construction | (4.1) | (1.8) | (7.4) | (2.7) |
Interest on short-term debt and other interest charges | 1.1 | 1.4 | 2.5 | 2.3 |
Interest expense | 35.6 | 35 | 69.2 | 70.5 |
INCOME BEFORE TAXES | 123.9 | 103.4 | 147.4 | 111.8 |
INCOME TAX EXPENSE | 37.7 | 31.1 | 45 | 33.4 |
NET INCOME | 86.2 | 72.3 | 102.4 | 78.4 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME | $ 86.2 | $ 72.3 | $ 102.4 | $ 78.4 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 102.4 | $ 78.4 |
Adjustments to reconcile net income to net cash provided from operating activities | ||
Depreciation and amortization | 128.4 | 155.1 |
Deferred income taxes and investment tax credits, net | 46.5 | 32.7 |
Allowance for equity funds used during construction | (15.4) | (5.3) |
Stock-based compensation expense | 1.8 | 1.5 |
Regulatory assets | (15.6) | (4) |
Regulatory liabilities | (0.2) | (8.4) |
Other assets | (1) | 3.7 |
Other liabilities | 3.7 | (8.4) |
Change in certain current assets and liabilities | ||
Accounts receivable, net | (12) | 10 |
Accrued unbilled revenues | (27) | (37.4) |
Fuel, materials and supplies inventories | 1 | 11.2 |
Fuel clause under recoveries | (56.1) | 0 |
Other current assets | 8 | (18.2) |
Accounts payable | 2.1 | (42.6) |
Accounts payable - affiliates | 1 | 5.3 |
Income taxes payable - parent | 4.2 | 0.4 |
Fuel clause over recoveries | 0 | (20) |
Other current liabilities | (37.4) | (12.7) |
Net cash provided from operating activities | 134.4 | 141.3 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures (less allowance for equity funds used during construction) | (491.1) | (331.1) |
Proceeds from sale of assets | 0.3 | 0.2 |
Net cash used in investing activities | (490.8) | (330.9) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid on common stock | (65) | (60) |
Proceeds from long-term debt | 296.5 | 0 |
Proceeds from (Repayments of) Lines of Credit | 160 | 0 |
Payment of long-term debt | (0.1) | (110.1) |
Changes in advances with parent | (35) | 359.7 |
Net cash provided from financing activities | 356.4 | 189.6 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 0 | $ 0 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Accounts receivable, less reserve of $1.1 and $1.5, respectively | $ 185 | $ 173 |
Accrued unbilled revenues | 86.7 | 59.7 |
Advances to parent | 46 | 0 |
Fuel inventories | 77.5 | 79.8 |
Materials and supplies, at average cost | 81.6 | 80.3 |
Fuel clause under recoveries | 107.4 | 51.3 |
Other | 70.3 | 78.3 |
Total current assets | 654.5 | 522.4 |
OTHER PROPERTY AND INVESTMENTS | 5.9 | 6.6 |
PROPERTY, PLANT AND EQUIPMENT | ||
In service | 10,727.9 | 10,572.3 |
Construction work in progress | 797.9 | 495.1 |
Total property, plant and equipment | 11,525.8 | 11,067.4 |
Less accumulated depreciation | 3,447.7 | 3,385.6 |
Net property, plant and equipment | 8,078.1 | 7,681.8 |
DEFERRED CHARGES AND OTHER ASSETS | ||
Regulatory assets | 406.8 | 404.8 |
Other | 53.7 | 53.8 |
Total deferred charges and other assets | 460.5 | 458.6 |
TOTAL ASSETS | 9,199 | 8,669.4 |
CURRENT LIABILITIES | ||
Accounts payable - affiliates | 1.1 | 0.1 |
Accounts payable - other | 180.2 | 196.3 |
Advances from parent | 0 | 49.9 |
Customer deposits | 79.1 | 77.7 |
Accrued taxes | 39.2 | 40.8 |
Accrued interest | 43.5 | 40.2 |
Accrued compensation | 23.3 | 31.3 |
Long-term debt due within one year | 125 | 125 |
Other | 63.2 | 95.8 |
Total current liabilities | 554.6 | 657.1 |
LONG-TERM DEBT | 2,863 | 2,405.8 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Accrued benefit obligations | 164.8 | 167.7 |
Deferred income taxes | 1,797.1 | 1,752.3 |
Regulatory liabilities | 321.6 | 299.7 |
Other | 141.7 | 134.7 |
Total deferred credits and other liabilities | 2,425.2 | 2,354.4 |
Total liabilities | 5,842.8 | 5,417.3 |
COMMITMENTS AND CONTINGENCIES (NOTE 10) | ||
STOCKHOLDER'S EQUITY | ||
Common stockholder's equity | 1,025.8 | 1,024.1 |
Retained earnings | 2,330.4 | 2,228 |
Total stockholder's equity | 3,356.2 | 3,252.1 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 9,199 | $ 8,669.4 |
CONDENSED BALANCE SHEETS (Unau5
CONDENSED BALANCE SHEETS (Unaudited) Parenthetical - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for Doubtful Accounts Receivable | $ 1.1 | $ 1.5 |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Premium on Common Stock | Retained Earnings |
Balance at Dec. 31, 2015 | $ 3,155.7 | $ 100.9 | $ 920.9 | $ 2,133.9 |
Changes in Stockholders' Equity | ||||
Net income | 78.4 | 0 | 0 | 78.4 |
Dividends declared on common stock | (60) | 0 | 0 | (60) |
Stock-based compensation | 1.5 | 0 | 1.5 | 0 |
Balance at Jun. 30, 2016 | 3,175.6 | 100.9 | 922.4 | 2,152.3 |
Balance at Dec. 31, 2016 | 3,252.1 | 100.9 | 923.2 | 2,228 |
Changes in Stockholders' Equity | ||||
Net income | 102.4 | 0 | 0 | 102.4 |
Dividends declared on common stock | 0 | |||
Stock-based compensation | 1.7 | 0 | 1.7 | 0 |
Balance at Jun. 30, 2017 | $ 3,356.2 | $ 100.9 | $ 924.9 | $ 2,330.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Summary of Significant Accounting Policies Organization OG&E generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. Its operations are subject to regulation by the OCC, the APSC and the FERC. OG&E was incorporated in 1902 under the laws of the Oklahoma Territory . OG&E is the largest electric utility in Oklahoma, and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. OG&E sold its retail natural gas business in 1928 and is no longer engaged in the natural gas distribution business. OG&E is a wholly-owned subsidiary of OGE Energy, an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. Basis of Presentation The Condensed Financial Statements included herein have been prepared by OG&E, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, OG&E believes that the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments necessary to fairly present the financial position of OG&E at June 30, 2017 and December 31, 2016 , the results of its operations for the three and six months ended June 30, 2017 and 2016 and its cash flows for the six months ended June 30, 2017 and 2016 have been included and are of a normal, recurring nature except as otherwise disclosed. Management also has evaluated the impact of events occurring after June 30, 2017 up to the date of issuance of these Condensed Financial Statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation. Due to seasonal fluctuations and other factors , OG&E's operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or for any future period. The Condensed Financial Statements and Notes thereto should be read in conjunction with the audited Financial Statements and Notes thereto included in OG&E's 2016 Form 10-K. |
Schedule of Regulatory Assets and Liabilities [Text Block] | Accounting Records The accounting records of OG&E are maintained in accordance with the Uniform System of Accounts prescribed by the FERC and adopted by the OCC and the APSC. Additionally, OG&E, as a regulated utility, is subject to accounting principles for certain types of rate-regulated activities, which provide that certain incurred costs that would otherwise be charged to expense can be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense can be deferred as regulatory liabilities, based on the expected flowback to customers in future rates. Management's expected recovery of deferred costs and flowback of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment. OG&E records certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refund in future rates. The following table is a summary of OG&E's regulatory assets and liabilities at: June 30, December 31, (In millions) 2017 2016 Regulatory Assets Current Fuel clause under recoveries $ 107.4 $ 51.3 Oklahoma demand program rider under recovery (A) 45.1 51.0 SPP cost tracker under recovery (A) 12.7 10.0 Other (A) 5.8 9.5 Total current regulatory assets $ 171.0 $ 121.8 Non-current Benefit obligations regulatory asset $ 225.1 $ 232.6 Income taxes recoverable from customers, net 69.8 62.3 Deferred storm expenses 44.6 35.7 Smart Grid 36.4 43.2 Unamortized loss on reacquired debt 12.7 13.4 Other 18.2 17.6 Total non-current regulatory assets $ 406.8 $ 404.8 Regulatory Liabilities Current Other (B) $ 3.9 $ 12.3 Total current regulatory liabilities $ 3.9 $ 12.3 Non-current Accrued removal obligations, net $ 276.5 $ 262.8 Pension tracker 35.8 35.5 Other 9.3 1.4 Total non-current regulatory liabilities $ 321.6 $ 299.7 (A) Included in Other Current Assets on the Condensed Balance Sheets. (B) Included in Other Current Liabilities on the Condensed Balance Sheets. Management continuously monitors the future recoverability of regulatory assets. When in management's judgment future recovery becomes impaired, the amount of the regulatory asset is adjusted, as appropriate. If OG&E were required to discontinue the application of accounting principles for certain types of rate-regulated activities for some or all of its operations, it could result in writing off the related regulatory assets, which could have significant financial effects. |
Asset Retirement Obligation Disclosure [Text Block] | Asset Retirement Obligations OG&E has asset retirement obligations primarily associated with the removal of company-owned wind turbines on leased land, as well as the removal of asbestos from certain power generating stations. The following table summarizes changes to OG&E's asset retirement obligations during the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, (In millions) 2017 2016 Balance at January 1 $ 69.6 $ 63.3 Accretion expense 1.5 1.4 Revisions in estimated cash flows 0.8 — Balance at June 30 $ 71.9 $ 64.7 |
Accounting Pronouncements
Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Accounting Pronouncements Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 2017. OG&E currently expects to apply the modified retrospective transition method. Currently, OG&E is not aware of any issues that would have a material impact on the timing of revenue recognition. OG&E is assessing the effect of this new guidance on its tariff-based sales, bundled arrangements and alternative revenue programs. At this time, OG&E has concluded that the new standard will not have a material impact on its results of operations and financial position but believes that it will change the income statement presentation of revenues and will require new disclosures. OG&E does not intend to early adopt the new guidance and will implement in the first quarter of 2018. Leases. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." The main difference between current lease accounting and Topic 842 is the recognition of right-to-use assets and lease liabilities by lessees for those leases classified as operating leases under current accounting guidance . Lessees, such as OG&E, will need to recognize a right-of-use asset and a lease liability for virtually all of their leases, other than leases that meet the definition of a short-term lease. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, Topic 842 retains a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense, while finance leases will result in a front-loaded expense pattern, similar to current capital leases. Classification of operating and finance leases will be based on criteria that are largely similar to those applied in current lease guidance but without the explicit thresholds. The new guidance is effective for fiscal years beginning after December 2018. The new guidance must be adopted using a modified retrospective transition and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. OG&E has started evaluating its current lease contracts. OG&E has not determined the amount of impact on its Condensed Financial Statements, but it anticipates an increase in the recognition of right-of-use assets and lease liabilities. Employee Share Based Payment Accounting. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which amends Accounting Standards Codification Topic 718, Compensation - Stock Compensation. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance, among other requirements, requires all of the tax effects related to share-based payments at settlement (or expiration) to be recorded through the income statement. Previously, tax benefits in excess of compensation cost, or windfalls, were recorded in equity, and tax deficiencies, or shortfalls, were recorded in equity to the extent of previous windfalls and then to the income statement. Under the new guidance, the windfall tax benefit is recorded when it arises, subject to normal valuation allowance considerations. This change is required to be applied on a modified retrospective basis, with a cumulative effect adjustment to opening retained earnings. All tax-related cash flows resulting from share-based payments are to be reported as operating activities on the statement of cash flows, which is a change from the previous requirement to present windfall tax benefits as an inflow from financing activities and an outflow from operating activities. OG&E adopted this standard in the first quarter of 2017 . Going forward, tax benefits in excess of compensation costs previously recorded in equity will be recorded within the income statement, and all tax-related cash flows resulting from share-based payments will be recorded as an operating activity within the statement of cash flows. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. In May 2017, the FASB issued ASU 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The new guidance is designed to improve the reporting of pension and other postretirement benefit costs by bifurcating the components of net benefit expense between those that are attributed to compensation for service and those that are not. The service cost component of benefit expense will continue to be presented within operating income, but entities will now be required to present the other components of benefit expense as non-operating within the income statement. Additionally, the new guidance only permits the capitalization of the service cost component of net benefit expense. The accounting change is required to be applied on a retrospective basis for the presentation of components of net benefit cost and on a prospective basis for the capitalization of only the service cost component of net benefit costs. The new guidance is effective for annual periods beginning after December 2017, including interim periods within those annual periods. Early adoption is permitted, subject to certain conditions. OG&E believes that the impact of the change in capitalization of only the service cost component of net periodic benefit costs will be immaterial from current practice. OG&E does not intend to early adopt the new guidance and will implement the change in the first quarter of 2018. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions OGE Energy charged operating costs to OG&E of $33.1 million and $34.9 million during the three months ended June 30, 2017 and 2016 , respectively, and $67.7 million and $66.9 million during the six months ended June 30, 2017 and 2016 , respectively. OGE Energy charges operating costs to OG&E based on several factors. Operating costs directly related to OG&E are assigned as such. Operating costs incurred for the benefit of OG&E are allocated either as overhead based primarily on labor costs or using the "Distrigas" method. Enable provides gas transportation services to OG&E pursuant to an agreement that expires in April 2019. This transportation agreement grants Enable the responsibility of delivering natural gas to OG&E’s generating facilities and performing an imbalance service. With this imbalance service, in accordance with the cash-out provision of the contract, OG&E purchases gas from Enable when Enable’s deliveries exceed OG&E’s pipeline receipts. Enable purchases gas from OG&E when OG&E’s pipeline receipts exceed Enable’s deliveries. The following table summarizes related party transactions between OG&E and Enable during the three and six months ended June 30, 2017 and 2016 . Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Operating revenues: Electricity to power electric compression assets $ 3.3 $ 3.0 $ 5.5 $ 5.3 Cost of sales: Natural gas transportation services $ 8.8 $ 8.8 $ 17.5 $ 17.5 Natural gas purchases/(sales) (0.4 ) 5.4 (0.8 ) 6.9 During the six months ended June 30, 2017 , OG&E declared no dividends to OGE Energy as compared to $60.0 million during the same period in 2016 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement [Text Block] | Fair Value Measurements The classification of OG&E's fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to quoted prices in active markets for identical unrestricted assets or liabilities (Level 1), and the lowest priority given to unobservable inputs (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels defined in the fair value hierarchy are as follows: Level 1 inputs are quoted prices in active markets for identical unrestricted assets or liabilities that are accessible at the measurement date. Level 2 inputs are inputs other than quoted prices in active markets included within Level 1 that are either directly or indirectly observable at the reporting date for the asset or liability for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are prices or valuation techniques for the asset or liability that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). OG&E had no financial instruments measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 . The fair value of OG&E's long-term debt is based on quoted market prices and estimates of current rates available for similar issues with similar maturities and is classified as Level 2 in the fair value hierarchy with the exception of the Tinker Debt which fair value is based on calculating the net present value of the monthly payments discounted by OG&E's current borrowing rate and is classified as Level 3 in the fair value hierarchy. The following table summarizes the fair value and carrying amount of OG&E's financial instruments at June 30, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 (In millions) Carrying Amount Fair Carrying Amount Fair Long-term Debt (including Long-term Debt due within one year) Senior Notes $ 2,682.8 $ 3,008.1 $ 2,385.5 $ 2,657.2 OG&E Revolving Credit Facility 160.0 160.0 — — OG&E Industrial Authority Bonds 135.4 135.4 135.4 135.4 Tinker Debt 9.8 9.6 9.9 9.5 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation The following table summarizes OG&E's pre-tax compensation expense and related income tax benefit during the three and six months ended June 30, 2017 and 2016 related to performance units and restricted stock for OG&E employees. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Performance units Total shareholder return $ 0.7 $ 0.4 $ 1.3 $ 1.0 Earnings per share 0.3 0.2 0.5 0.4 Total performance units 1.0 0.6 1.8 1.4 Restricted stock — — — — Total compensation expense $ 1.0 $ 0.6 $ 1.8 $ 1.4 Income tax benefit $ 0.4 $ 0.2 $ 0.7 $ 0.5 During the three and six months ended June 30, 2017 , OG&E issued an immaterial number of shares to satisfy restricted stock grants. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes OG&E is a member of an affiliated group that files consolidated income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. With few exceptions, OG&E is no longer subject to U.S. Federal tax examinations by tax authorities for years prior to 2013 or state and local tax examinations by tax authorities for years prior to 2012 . Income taxes are generally allocated to each company in the affiliated group based on its stand-alone taxable income or loss. Federal investment tax credits previously claimed on electric utility property have been deferred and are being amortized to income over the life of the related property. OG&E earns both Federal and Oklahoma state tax credits associated with production from its wind farms and earns Oklahoma state tax credits associated with its investments in electric generating facilities which further reduce OG&E's effective tax rate. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt [Text Block] | Long-Term Debt At June 30, 2017 , OG&E was in compliance with all of its debt agreements. Industrial Authority Bonds OG&E has tax-exempt pollution control bonds with optional redemption provisions that allow the holders to request repayment of the bonds on any business day. The bonds, which can be tendered at the option of the holder during the next 12 months, are as follows: SERIES DATE DUE AMOUNT (In millions) 0.65% - 0.98% Garfield Industrial Authority, January 1, 2025 $ 47.0 0.65% - 0.95% Muskogee Industrial Authority, January 1, 2025 32.4 0.66% - 0.97% Muskogee Industrial Authority, June 1, 2027 56.0 Total (redeemable during next 12 months) $ 135.4 All of these bonds are subject to an optional tender at the request of the holders, at 100 percent of the principal amount, together with accrued and unpaid interest to the date of purchase. The bond holders, on any business day, can request repayment of the bond by delivering an irrevocable notice to the tender agent stating the principal amount of the bond, payment instructions for the purchase price and the business day the bond is to be purchased. The repayment option may only be exercised by the holder of a bond for the principal amount. When a tender notice has been received by the trustee, a third-party remarketing agent for the bonds will attempt to remarket any bonds tendered for purchase. This process occurs once per week. Since the original issuance of these series of bonds in 1995 and 1997, the remarketing agent has successfully remarketed all tendered bonds. If the remarketing agent is unable to remarket any such bonds, OG&E is obligated to repurchase such unremarketed bonds. As OG&E has both the intent and ability to refinance the bonds on a long-term basis and such ability is supported by an ability to consummate the refinancing, the bonds are classified as Long-term Debt in OG&E's Condensed Financial Statements. OG&E believes that it has sufficient liquidity to meet these obligations. Issuance of New Long-Term Debt In March 2017, OG&E issued $300.0 million of 4.15 percent senior notes due April 1, 2047 . The proceeds from the issuance were used to repay short-term debt and were added to OG&E's general funds to be used for general corporate purposes, including to repay borrowings under the revolving credit facility, to fund the payment at maturity of OG&E's $125.0 million of 6.5 percent senior notes due July 15, 2017 and to fund ongoing capital expenditures and working capital. |
Short-Term Debt and Credit Faci
Short-Term Debt and Credit Facility | 6 Months Ended |
Jun. 30, 2017 | |
Short-term Debt [Abstract] | |
Short-Term Debt and Credit Facility [Text Block] | Short-Term Debt and Credit Facility On March 8, 2017, OG&E entered into a new unsecured $450.0 million five-year revolving credit facility. The new facility is scheduled to terminate on March 8, 2022 . However, OG&E has the right to request an extension of the revolving credit facility termination date under its facility for an additional one-year period, which can be exercised up to two times. All such extension requests are subject to majority lender group approval (and only the commitments of those lenders that consent to such extension (or that agree to replace any non-consenting lender) will be extended for such additional period). Borrowings under OG&E’s new facility shall bear interest at rates equal to either the eurodollar base rate (reserve adjusted, if applicable), plus a margin of 0.69 percent to 1.275 percent , or an alternate base rate, plus a margin of 0.0 percent to 0.275 percent . OG&E’s new facility has a facility fee that ranges from 0.06 percent to 0.225 percent . Interest rate margins and facility fees are based on OG&E’s then-current senior unsecured credit ratings. The new facility provides for issuance of letters of credit, provided that (i) the aggregate outstanding credit exposure shall not exceed the amount of the revolving credit facility and (ii) the aggregate outstanding stated amount of letters of credit issued under such facility shall not exceed a sublimit of $100.0 million . Advances under the new facility may be used to refinance existing indebtedness and for working capital and general corporate purposes, including commercial paper liquidity support, letters of credit, acquisitions and distributions. The new facility is unsecured and, under certain circumstances, may be increased by up to $150.0 million , to a maximum revolving commitment limit of $600.0 million . Advances of revolving loans and letters of credit under the new facility are subject to certain conditions precedent, including the accuracy of certain representations and warranties and the absence of any default or unmatured default. The new facility has a financial covenant requiring that OG&E maintain a maximum debt to capitalization ratio of 65 percent , as defined in the facility. OG&E's new facility also contains covenants which restrict, among other things, mergers and consolidations, sales of all or substantially all assets, incurrence of liens and transactions with affiliates. OG&E's new facility is subject to acceleration upon the occurrence of any default, including, among others, payment defaults on such facility, breach of representations, warranties and covenants, acceleration of indebtedness (other than intercompany and non-recourse indebtedness) of $100.0 million or more in the aggregate, change of control (as defined in the new facility), nonpayment of uninsured judgments in excess of $100.0 million and the occurrence of certain Employee Retirement Income Security Act and bankruptcy events, subject where applicable to specified cure periods. At June 30, 2017 , there was $46.0 million in advances to OGE Energy compared to $49.9 million in advances from OGE Energy at December 31, 2016 . OG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to $350.0 million of OGE Energy's revolving credit amount. This agreement has a termination date of March 8, 2022 . At June 30, 2017 , there were $1.5 million intercompany borrowings under this agreement. At June 30, 2017 , there were $0.3 million supporting letters of credit at a weighted-average interest rate of 0.95 percent . At June 30, 2017, there was $160.0 million in outstanding borrowings at a weighted-average interest rate of 1.92 percent under the revolving credit facility, which was classified as Long-term Debt in OG&E's Condensed Balance Sheet. There were no outstanding commercial paper borrowings at June 30, 2017 . OGE Energy's and OG&E's ability to access the commercial paper market could be adversely impacted by a credit ratings downgrade or major market disruptions. Pricing grids associated with OGE Energy's and OG&E's credit facilities could cause annual fees and borrowing rates to increase if an adverse rating impact occurs. The impact of any future downgrade could include an increase in the costs of OGE Energy's and OG&E's short-term borrowings, but a reduction in OGE Energy's and OG&E's credit ratings would not result in any defaults or accelerations. Any future downgrade of OG&E could also lead to higher long-term borrowing costs and, if below investment grade, would require OG&E to post collateral or letters of credit. OG&E must obtain regulatory approval from the FERC in order to borrow on a short-term basis. OG&E has the necessary regulatory approvals to incur up to $800.0 million in short-term borrowings at any one time for a two-year period beginning January 1, 2017 and ending December 31, 2018. |
Retirement Plans and Postretire
Retirement Plans and Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Plans and Postretirement Benefit Plans The details of net periodic benefit cost, before consideration of capitalized amounts, of OG&E's portion of OGE Energy's Pension Plan, the Restoration of Retirement Income Plan and the postretirement benefit plans included in the Condensed Financial Statements are as follows: Net Periodic Benefit Cost Pension Plan Restoration of Retirement Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In millions) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 2.4 $ 2.3 $ 5.1 $ 5.1 $ — $ — $ — $ — Interest cost 4.9 4.6 9.7 9.6 0.1 (0.1 ) 0.1 — Expected return on plan assets (8.1 ) (8.2 ) (16.4 ) (16.6 ) — — — — Amortization of net loss 3.5 3.0 6.5 6.2 0.1 0.1 0.2 0.1 Settlement — — — — — 0.4 — 0.4 Net periodic benefit cost $ 2.7 $ 1.7 $ 4.9 $ 4.3 $ 0.2 $ 0.4 $ 0.3 $ 0.5 (A) In addition to the $2.9 million and $2.1 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016 , respectively , OG&E recognized the following: • an increase in pension expense during the three months ended June 30, 2017 and 2016 of $2.9 million and $2.6 million , respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.) ; • a deferral of pension expense during the three months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013 ; • a deferral of pension expense during the three months ended June 30, 2016 of $0.6 million , which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and • a deferral of pension expense during the three months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million . (B) In addition to the $5.2 million and $4.8 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016 , respectively , OG&E recognized the following: • an increase in pension expense during the six months ended June 30, 2017 and 2016 of $5.8 million and $4.9 million , respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.) ; • a deferral of pension expense during the six months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013 ; • a deferral of pension expense during the six months ended June 30, 2016 of $0.6 million , which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million , in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and • a deferral of pension expense during the six months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million . Postretirement Benefit Plans Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Service cost $ 0.1 $ 0.2 $ 0.2 $ 0.3 Interest cost 1.6 1.9 3.3 3.7 Expected return on plan assets (0.5 ) (0.5 ) (1.0 ) (1.0 ) Amortization of net loss 0.2 0.8 0.8 1.3 Amortization of unrecognized prior service cost (A) — (1.6 ) — (3.1 ) Net periodic benefit cost $ 1.4 $ 0.8 $ 3.3 $ 1.2 (A) Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment. (B) In addition to the $1.4 million and $0.8 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016 , respectively, OG&E recognized an increase in postretirement medical expense in the three months ended June 30, 2017 and 2016 of $1.0 million and $2.0 million , respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). (C) In addition to the $3.3 million and $1.2 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016 , respectively, OG&E recognized an increase in postretirement medical expense in the six months ended June 30, 2017 and 2016 of $2.1 million and $4.0 million , respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Capitalized portion of net periodic pension benefit cost $ 1.0 $ 0.6 $ 1.8 $ 1.4 Capitalized portion of net periodic postretirement benefit cost 0.5 0.2 1.1 0.4 Postretirement Benefit Plans OGE Energy provides certain medical and life insurance benefits for eligible retired members. Regular, full-time, active employees hired prior to February 1, 2000 whose age and years of credited service total or exceed 80 or have attained at least age 55 with 10 or more years of service at the time of retirement are entitled to postretirement medical benefits while employees hired on or after February 1, 2000 are not entitled to postretirement medical benefits. Eligible retirees must contribute such amount as OGE Energy specifies from time to time toward the cost of coverage for postretirement benefits. The benefits are subject to deductibles, co-payment provisions and other limitations. OG&E charges postretirement benefit costs to expense and includes an annual amount as a component of the cost-of-service in future ratemaking proceedings. In August 2017, OGE Energy adopted an amendment to the retiree medical plan. Effective January 1, 2018, OGE Energy will reduce the amount of supplemental Medicare coverage for Medicare-eligible retirees, providing a fixed stipend based on current market analysis. OGE Energy will continue to allow those Medicare-eligible retirees to acquire coverage from a company-provided third-party administrator. The effect of these plan amendments will be reflected in OGE Energy’s September 30, 2017 Condensed Consolidated Balance Sheet as a reduction to the postretirement benefit obligation of $45.0 million . In August 2017, OGE Energy settled the retiree life plan in its entirety and will pay 27.9 million to participants in August 2017. No gain or loss will be recognized upon settlement, and the effect of the settlement will be reflected in OGE Energy’s September 30, 2017 Condensed Consolidated Balance Sheet as a reduction in plan assets of 27.9 million with a corresponding reduction in the benefit obligation. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Except as set forth below, in Note 11 and under "Environmental Laws and Regulations" in Item 2 of Part I, and in Item 1 of Part II of this Form 10-Q, the circumstances set forth in Notes 12 and 13 to OG&E's Financial Statements included in OG&E's 2016 Form 10-K appropriately represent, in all material respects, the current status of OG&E's material commitments and contingent liabilities. Public Utility Regulatory Policy Act of 1978 As previously disclosed in OG&E’s 2016 Form 10-K, OG&E has a QF contract with AES-Shady Point, Inc. ("AES") whereby OG&E purchases 100 percent of the electricity generated from AES’s 320 MW facility. The QF contract expires on January 15, 2023; however, OG&E had the option beginning in July 2017 to provide notice to AES to terminate the contract in January 2018. On July 17, 2017, OG&E and AES amended the agreement to allow OG&E the ability, through July 17, 2018, to provide AES a termination notice that would terminate the agreement on January 15, 2019. Environmental Laws and Regulations The activities of OG&E are subject to numerous stringent and complex Federal, state and local laws and regulations governing environmental protection. These laws and regulations can change, restrict or otherwise impact OG&E's business activities in many ways including the handling or disposal of waste material, future construction activities to avoid or mitigate harm to threatened or endangered species and requiring the installation and operation of emissions pollution control equipment. Failure to comply with these laws and regulations could result in the assessment of administrative, civil and criminal penalties, the imposition of remedial requirements and the issuance of orders enjoining future operations. Management believes that all of its operations are in substantial compliance with current Federal, state and local environmental standards. Environmental regulation can increase the cost of planning, design, initial installation and operation of OG&E's facilities. Compliance with these environmental standards is expected to increase the cost of conducting business. OG&E is managing several potentially material uncertainties about the scope and timing for the acquisition, installation and operation of additional pollution control equipment and compliance costs for a variety of the EPA rules that are being challenged in court. OG&E is unable to predict the financial impact of these matters with certainty at this time. Management continues to evaluate its compliance with existing and proposed environmental legislation and regulations and implement appropriate environmental programs in a competitive market. Air Quality Control System On September 10, 2014, OG&E executed a contract for the design, engineering and fabrication of two circulating Dry Scrubber systems to be installed at Sooner Units 1 and 2. OG&E entered into an agreement on February 9, 2015 to install the Dry Scrubber systems. The Dry Scrubbers are scheduled to be completed by 2019. More detail regarding the ECP can be found under "Pending Regulatory Matters" in Note 11. Other In the normal course of business, OG&E is confronted with issues or events that may result in a contingent liability. These generally relate to lawsuits or claims made by third parties, including governmental agencies. When appropriate, management consults with legal counsel and other experts to assess the claim. If, in management's opinion, OG&E has incurred a probable loss as set forth by GAAP, an estimate is made of the loss, and the appropriate accounting entries are reflected in OG&E's Condensed Financial Statements. At the present time, based on currently available information, OG&E believes that any reasonably possible losses in excess of accrued amounts arising out of pending or threatened lawsuits or claims would not be quantitatively material to its financial statements and would not have a material adverse effect on OG&E's financial position, results of operations or cash flows. |
Rate Matters and Regulation
Rate Matters and Regulation | 6 Months Ended |
Jun. 30, 2017 | |
Regulated Operations [Abstract] | |
Rate Matters and Regulation [Text Block] | Rate Matters and Regulation Except as set forth below, the circumstances set forth in Note 13 to OG&E's Financial Statements included in OG&E's 2016 Form 10-K appropriately represent, in all material respects, the current status of OG&E's regulatory matters. Completed Regulatory Matters Arkansas Rate Case Filing On August 25, 2016, OG&E filed a general rate case with the APSC. The rate filing requested a $16.5 million rate increase based on a 10.25 percent return on equity. The rate increase was based on a June 30, 2016 test year and included a recovery of over $3.0 billion of electric infrastructure additions since the last Arkansas general rate case in 2011. The increase also reflects increases in operation and maintenance expenses, including vegetation management and increased recovery of depreciation and dismantlement costs. I n May 2017, the APSC approved a settlement between OG&E and the staff of the APSC and other intervenors. The settlement provides for a $7.1 million annual rate increase and a 9.5 percent return on equity on a 50.0 percent equity capital structure. The settlement also provides that OG&E will be regulated under a formula rate rider, which should result in a more efficient process as the return on equity, depreciation rates and capital structure should not change from what is approved by the APSC in the current rate case proceeding. The formula rate rider provides for an adjustment to rates if the earned rate of return falls outside of a plus or minus 50 basis point dead-band around the allowed return on equity. Adjustments are limited to plus or minus four percent of revenue for each rate class for the 12 months preceding the projected year. The initial term for the formula rate rider is not to exceed five years, unless additional approval is obtained from the APSC. OG&E expects to make its first filing under the Arkansas Formula Rate Rider in October 2018. Pending Regulatory Matters Set forth below is a list of various proceedings pending before state or federal regulatory agencies. Unless stated otherwise, OG&E cannot predict when the regulatory agency will act or what action the regulatory agency will take. OG&E's financial results are dependent in part on timely and adequate decisions by the regulatory agencies that set OG&E's rates. Environmental Compliance Plan On August 6, 2014, OG&E filed an application with the OCC for approval of its plan to comply with the EPA’s MATS and Regional Haze Rule FIP while serving the best long-term interests of customers in light of future environmental uncertainties. The application sought approval of the ECP and for a recovery mechanism for the associated costs. The ECP includes installing Dry Scrubbers at Sooner Units 1 and 2 and the conversion of Muskogee Units 4 and 5 to natural gas. The application also asked the OCC to predetermine the prudence of its Mustang Modernization Plan, which calls for replacing OG&E's soon-to-be retired Mustang steam turbines with 462 MWs of new, efficient combustion turbines at the Mustang site and approval for a recovery mechanism for the associated costs. On December 2, 2015, OG&E received an order from the OCC denying its plan to comply with the environmental mandates of the Federal Clean Air Act, Regional Haze Rule and MATS. The OCC also denied OG&E's request for pre-approval of its Mustang Modernization Plan, revised depreciation rates for both the retirement of the Mustang units and the replacement combustion turbines and pre-approval of early retirement and replacement of generating units at its Mustang site, including cost recovery through a rider. On February 12, 2016, OG&E filed an application requesting the OCC to issue an order approving its decision to install Dry Scrubbers at the Sooner facility. OG&E's application did not seek approval of the costs of the Dry Scrubber project. Instead, the reasonableness of the costs would be considered after the project is completed, and OG&E seeks recovery in its rates. On April 28, 2016, the OCC approved the Dry Scrubber project. Two parties appealed the OCC's decision to the Oklahoma Supreme Court. OG&E is unable to predict what action the Oklahoma Supreme Court may take or the timing of any such action. OG&E anticipates the total cost of Dry Scrubbers will be $542.4 million , including allowance for funds used during construction and capitalized ad valorem taxes. As of June 30, 2017 , OG&E had invested $323.4 million of construction work in progress on the Dry Scrubbers. OG&E anticipates the total cost for the Mustang Modernization Plan will be $390.0 million , including allowance for funds used during construction and capitalized ad valorem taxes and expects the project to be completed in late 2017 . As of June 30, 2017 , OG&E had invested $276.3 million on the Mustang Modernization Plan. Integrated Resource Plans In October 2015, OG&E finalized the 2015 IRP and submitted it to the OCC. The 2015 IRP updated certain assumptions contained in the IRP submitted in 2014 but did not make any material changes to the ECP and other parts of the plan. Currently, OG&E is scheduled to update its IRP in Arkansas by October 1, 2017 and in Oklahoma by October 1, 2018. In July 2017, OG&E requested the APSC to consider an extension of time to file the IRP in Arkansas to no later than October 31, 2018. Oklahoma Rate Case Filing On December 18, 2015, OG&E filed a general rate case with the OCC requesting a rate increase of $92.5 million and a 10.25 percent return on equity based on a common equity percentage of 53 percent . The rate case was based on a June 30, 2015 test year and included recovery of $1.6 billion of electric infrastructure additions since its last general rate case in Oklahoma. On July 1, 2016, OG&E implemented an annual interim rate increase of $69.5 million , subject to refund for amounts in excess of the rates approved by the OCC. In December 2016, the ALJ issued a report and recommendations in the case. The ALJ's recommendations included, among other things, the use of OG&E's actual capital structure of 53.0 percent equity and 47.0 percent long-term debt and a return on equity of 9.87 percent resulting in an annual increase in OG&E's revenues of $40.7 million . On March 20, 2017, the OCC held hearings and issued a final order. The final order results in an annual net increase of approximately $8.8 million in OG&E's rates to its Oklahoma retail customers. Although the final order adopted certain recommendations set forth in the ALJ report, it differs in certain key respects. The primary adjustments to the ALJ report consist of: (i) Oklahoma retail authorized rate of return on equity of 9.50 percent , (ii) depreciation expense is reduced by approximately $28.6 million from the ALJ report or $36.4 million from current rates on an annual basis, (iii) recovery of 50.0 percent of short-term incentive compensation and no recovery of long-term incentive compensation, (iv) recovery of OG&E's requested vegetation management expenses and (v) recovery of production tax credits expiring in 2017 and air quality control systems consumable costs through the fuel adjustment clause. The order maintained OG&E's existing capital structure of 53.0 percent equity and 47.0 percent long-term debt . As a result of the final order, OG&E recorded, in the first quarter of 2017, adjustments to depreciation expense, amortization of regulatory assets and liabilities and impacts to the fuel adjustment clause effective July 1, 2016. On May 1, 2017, OG&E implemented new rates and began refunding excess amounts that it had collected in interim rates. As of June 30, 2017 , OG&E had refunded $15.3 million of the $47.5 million expected refund from the interim rate increase. Additionally, OG&E has reserved $5.6 million , pending resolution of a dispute with PUD staff, regarding recovery of certain lost revenues associated with energy efficiency incurred prior to the March 20, 2017 rate order. These lost revenues are included within the total Demand Program Rider regulatory asset balance of $45.1 million as disclosed in Note 1. OG&E is unable to predict what actions the OCC may take regarding the unrecovered lost revenue or the timing of any actions. The remaining reserve for the interim rate refund and the lost revenues reserve are included in Other Current Liabilities on OG&E's Condensed Balance Sheets. Fuel Adjustment Clause Review for Calendar Year 2015 On September 8, 2016, the OCC staff filed an application to review OG&E’s fuel adjustment clause for calendar year 2015, including the prudence of OG&E’s electric generation, purchased power and fuel procurement costs. At a hearing on March 30, 2017, the PUD staff recommended to the OCC that the 2015 fuel costs be found prudent. In the second quarter of 2017, the ALJ report was issued, and in exceptions subsequently filed by an intervenor, recommendations were made to address concerns regarding future cases. These recommendations were requested to be included in the order; however, there were no proposed changes to the amounts of recoverable fuel costs. OG&E expects a final order to be issued by year-end. Oklahoma Rate Case Filing - 2017 OG&E intends to file a general rate case in Oklahoma with the OCC during the fourth quarter of 2017. The rate case will be based on a June 30, 2017 test year. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | Basis of Presentation The Condensed Financial Statements included herein have been prepared by OG&E, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, OG&E believes that the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments necessary to fairly present the financial position of OG&E at June 30, 2017 and December 31, 2016 , the results of its operations for the three and six months ended June 30, 2017 and 2016 and its cash flows for the six months ended June 30, 2017 and 2016 have been included and are of a normal, recurring nature except as otherwise disclosed. Management also has evaluated the impact of events occurring after June 30, 2017 up to the date of issuance of these Condensed Financial Statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation. Due to seasonal fluctuations and other factors , OG&E's operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or for any future period. The Condensed Financial Statements and Notes thereto should be read in conjunction with the audited Financial Statements and Notes thereto included in OG&E's 2016 Form 10-K. |
Public Utilities, Policy [Policy Text Block] | Accounting Records The accounting records of OG&E are maintained in accordance with the Uniform System of Accounts prescribed by the FERC and adopted by the OCC and the APSC. Additionally, OG&E, as a regulated utility, is subject to accounting principles for certain types of rate-regulated activities, which provide that certain incurred costs that would otherwise be charged to expense can be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense can be deferred as regulatory liabilities, based on the expected flowback to customers in future rates. Management's expected recovery of deferred costs and flowback of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment. OG&E records certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refund in future rates. Management continuously monitors the future recoverability of regulatory assets. When in management's judgment future recovery becomes impaired, the amount of the regulatory asset is adjusted, as appropriate. If OG&E were required to discontinue the application of accounting principles for certain types of rate-regulated activities for some or all of its operations, it could result in writing off the related regulatory assets, which could have significant financial effects. |
Related Party Transactions [Policy Text Block] | OGE Energy charges operating costs to OG&E based on several factors. Operating costs directly related to OG&E are assigned as such. Operating costs incurred for the benefit of OG&E are allocated either as overhead based primarily on labor costs or using the "Distrigas" method. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Level 1 inputs are quoted prices in active markets for identical unrestricted assets or liabilities that are accessible at the measurement date. Level 2 inputs are inputs other than quoted prices in active markets included within Level 1 that are either directly or indirectly observable at the reporting date for the asset or liability for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are prices or valuation techniques for the asset or liability that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). The fair value of OG&E's long-term debt is based on quoted market prices and estimates of current rates available for similar issues with similar maturities and is classified as Level 2 in the fair value hierarchy with the exception of the Tinker Debt which fair value is based on calculating the net present value of the monthly payments discounted by OG&E's current borrowing rate and is classified as Level 3 in the fair value hierarchy. |
Income Tax, Policy [Policy Text Block] | Income taxes are generally allocated to each company in the affiliated group based on its stand-alone taxable income or loss. Federal investment tax credits previously claimed on electric utility property have been deferred and are being amortized to income over the life of the related property. OG&E earns both Federal and Oklahoma state tax credits associated with production from its wind farms and earns Oklahoma state tax credits associated with its investments in electric generating facilities which further reduce OG&E's effective tax rate. OG&E is a member of an affiliated group that files consolidated income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Regulatory Assets and Liabilities [Table Text Block] | The following table is a summary of OG&E's regulatory assets and liabilities at: June 30, December 31, (In millions) 2017 2016 Regulatory Assets Current Fuel clause under recoveries $ 107.4 $ 51.3 Oklahoma demand program rider under recovery (A) 45.1 51.0 SPP cost tracker under recovery (A) 12.7 10.0 Other (A) 5.8 9.5 Total current regulatory assets $ 171.0 $ 121.8 Non-current Benefit obligations regulatory asset $ 225.1 $ 232.6 Income taxes recoverable from customers, net 69.8 62.3 Deferred storm expenses 44.6 35.7 Smart Grid 36.4 43.2 Unamortized loss on reacquired debt 12.7 13.4 Other 18.2 17.6 Total non-current regulatory assets $ 406.8 $ 404.8 Regulatory Liabilities Current Other (B) $ 3.9 $ 12.3 Total current regulatory liabilities $ 3.9 $ 12.3 Non-current Accrued removal obligations, net $ 276.5 $ 262.8 Pension tracker 35.8 35.5 Other 9.3 1.4 Total non-current regulatory liabilities $ 321.6 $ 299.7 (A) Included in Other Current Assets on the Condensed Balance Sheets. (B) Included in Other Current Liabilities on the Condensed Balance Sheets. |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following table summarizes changes to OG&E's asset retirement obligations during the six months ended June 30, 2017 and 2016 . Six Months Ended June 30, (In millions) 2017 2016 Balance at January 1 $ 69.6 $ 63.3 Accretion expense 1.5 1.4 Revisions in estimated cash flows 0.8 — Balance at June 30 $ 71.9 $ 64.7 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarizes related party transactions between OG&E and Enable during the three and six months ended June 30, 2017 and 2016 . Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Operating revenues: Electricity to power electric compression assets $ 3.3 $ 3.0 $ 5.5 $ 5.3 Cost of sales: Natural gas transportation services $ 8.8 $ 8.8 $ 17.5 $ 17.5 Natural gas purchases/(sales) (0.4 ) 5.4 (0.8 ) 6.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair value and carrying amount of OG&E's financial instruments at June 30, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 (In millions) Carrying Amount Fair Carrying Amount Fair Long-term Debt (including Long-term Debt due within one year) Senior Notes $ 2,682.8 $ 3,008.1 $ 2,385.5 $ 2,657.2 OG&E Revolving Credit Facility 160.0 160.0 — — OG&E Industrial Authority Bonds 135.4 135.4 135.4 135.4 Tinker Debt 9.8 9.6 9.9 9.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | The following table summarizes OG&E's pre-tax compensation expense and related income tax benefit during the three and six months ended June 30, 2017 and 2016 related to performance units and restricted stock for OG&E employees. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2017 2016 2017 2016 Performance units Total shareholder return $ 0.7 $ 0.4 $ 1.3 $ 1.0 Earnings per share 0.3 0.2 0.5 0.4 Total performance units 1.0 0.6 1.8 1.4 Restricted stock — — — — Total compensation expense $ 1.0 $ 0.6 $ 1.8 $ 1.4 Income tax benefit $ 0.4 $ 0.2 $ 0.7 $ 0.5 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | OG&E has tax-exempt pollution control bonds with optional redemption provisions that allow the holders to request repayment of the bonds on any business day. The bonds, which can be tendered at the option of the holder during the next 12 months, are as follows: SERIES DATE DUE AMOUNT (In millions) 0.65% - 0.98% Garfield Industrial Authority, January 1, 2025 $ 47.0 0.65% - 0.95% Muskogee Industrial Authority, January 1, 2025 32.4 0.66% - 0.97% Muskogee Industrial Authority, June 1, 2027 56.0 Total (redeemable during next 12 months) $ 135.4 |
Retirement Plans and Postreti24
Retirement Plans and Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plan [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The details of net periodic benefit cost, before consideration of capitalized amounts, of OG&E's portion of OGE Energy's Pension Plan, the Restoration of Retirement Income Plan and the postretirement benefit plans included in the Condensed Financial Statements are as follows: Net Periodic Benefit Cost Pension Plan Restoration of Retirement Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In millions) 2017 2016 2017 2016 2017 2016 2017 2016 Service cost $ 2.4 $ 2.3 $ 5.1 $ 5.1 $ — $ — $ — $ — Interest cost 4.9 4.6 9.7 9.6 0.1 (0.1 ) 0.1 — Expected return on plan assets (8.1 ) (8.2 ) (16.4 ) (16.6 ) — — — — Amortization of net loss 3.5 3.0 6.5 6.2 0.1 0.1 0.2 0.1 Settlement — — — — — 0.4 — 0.4 Net periodic benefit cost $ 2.7 $ 1.7 $ 4.9 $ 4.3 $ 0.2 $ 0.4 $ 0.3 $ 0.5 (A) In addition to the $2.9 million and $2.1 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016 , respectively , OG&E recognized the following: • an increase in pension expense during the three months ended June 30, 2017 and 2016 of $2.9 million and $2.6 million , respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.) ; • a deferral of pension expense during the three months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013 ; • a deferral of pension expense during the three months ended June 30, 2016 of $0.6 million , which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and • a deferral of pension expense during the three months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million . (B) In addition to the $5.2 million and $4.8 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016 , respectively , OG&E recognized the following: • an increase in pension expense during the six months ended June 30, 2017 and 2016 of $5.8 million and $4.9 million , respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.) ; • a deferral of pension expense during the six months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013 ; • a deferral of pension expense during the six months ended June 30, 2016 of $0.6 million , which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million , in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and • a deferral of pension expense during the six months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million . Postretirement Benefit Plans Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Service cost $ 0.1 $ 0.2 $ 0.2 $ 0.3 Interest cost 1.6 1.9 3.3 3.7 Expected return on plan assets (0.5 ) (0.5 ) (1.0 ) (1.0 ) Amortization of net loss 0.2 0.8 0.8 1.3 Amortization of unrecognized prior service cost (A) — (1.6 ) — (3.1 ) Net periodic benefit cost $ 1.4 $ 0.8 $ 3.3 $ 1.2 (A) Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment. (B) In addition to the $1.4 million and $0.8 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016 , respectively, OG&E recognized an increase in postretirement medical expense in the three months ended June 30, 2017 and 2016 of $1.0 million and $2.0 million , respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). (C) In addition to the $3.3 million and $1.2 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016 , respectively, OG&E recognized an increase in postretirement medical expense in the six months ended June 30, 2017 and 2016 of $2.1 million and $4.0 million , respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). |
Schedule of Capitalized Pension and Postretirement Cost [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (In millions) 2017 2016 2017 2016 Capitalized portion of net periodic pension benefit cost $ 1.0 $ 0.6 $ 1.8 $ 1.4 Capitalized portion of net periodic postretirement benefit cost 0.5 0.2 1.1 0.4 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies, Regulated Operations (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Fuel clause under recoveries | $ 107.4 | $ 51.3 | |
Current Regulatory Assets | 171 | 121.8 | |
Non-Current Regulatory Assets | 406.8 | 404.8 | |
Current Regulatory Liabilities | 3.9 | 12.3 | |
Non-Current Regulatory Liabilities | 321.6 | 299.7 | |
Other Regulatory Liability[Member] | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Current Regulatory Liabilities | [1] | 3.9 | 12.3 |
Non-Current Regulatory Liabilities | 9.3 | 1.4 | |
Accrued removal obligations, net | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liabilities | 276.5 | 262.8 | |
Pension tracker | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Liabilities | 35.8 | 35.5 | |
Oklahoma demand program rider under recovery (A) | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Current Regulatory Assets | [2] | 45.1 | 51 |
SPP cost tracker under recovery (A) | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Current Regulatory Assets | [2] | 12.7 | 10 |
Other Regulatory Asset [Member] | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Current Regulatory Assets | [2] | 5.8 | 9.5 |
Non-Current Regulatory Assets | 18.2 | 17.6 | |
Benefit obligations regulatory asset | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Assets | 225.1 | 232.6 | |
Income taxes recoverable from customers, net | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Assets | 69.8 | 62.3 | |
Deferred storm expenses | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Assets | 44.6 | 35.7 | |
Smart Grid | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Assets | 36.4 | 43.2 | |
Unamortized loss on reacquired debt | |||
Schedule of Regulatory Assets and Liabilities [Line Items] | |||
Non-Current Regulatory Assets | $ 12.7 | $ 13.4 | |
[1] | Included in Other Current Liabilities on the Condensed Balance Sheets. | ||
[2] | Included in Other Current Assets on the Condensed Balance Sheets. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies Asset Retirement Obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at January 1 | $ 69.6 | $ 63.3 |
Accretion expense | 1.5 | 1.4 |
Revisions in estimated cash flows | 0.8 | 0 |
Balance at June 30 | $ 71.9 | $ 64.7 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Dividends, Common Stock | $ 0 | $ 60 | ||
Operating Costs Charged [Member] | OG&E [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 33.1 | $ 34.9 | 67.7 | 66.9 |
OG&E [Member] | Enable Midstream Partners [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 3.3 | 3 | 5.5 | 5.3 |
OG&E [Member] | Natural Gas Transportation [Member] | Enable Midstream Partners [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | 8.8 | 8.8 | 17.5 | 17.5 |
OG&E [Member] | Natural Gas Purchases [Member] | Enable Midstream Partners [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | $ (0.4) | $ 5.4 | $ (0.8) | $ 6.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Lines of Credit, Fair Value Disclosure | $ 160 | $ 0 |
OG&E Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | 2,682.8 | 2,385.5 |
Long-term Debt, Fair Value | 3,008.1 | 2,657.2 |
OG&E Industrial Authority Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | 135.4 | 135.4 |
Long-term Debt, Fair Value | 135.4 | 135.4 |
OG&E Tinker Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | 9.8 | 9.9 |
Long-term Debt, Fair Value | 9.6 | 9.5 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Og and E [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Line of Credit | $ 160 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit | $ 0.4 | $ 0.2 | $ 0.7 | $ 0.5 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 1 | 0.6 | 1.8 | 1.4 |
Stock Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 1 | 0.6 | 1.8 | 1.4 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0 | 0 | 0 | 0 |
Total Shareholder Return [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0.7 | 0.4 | 1.3 | 1 |
Performance Units Related to Earnings Per Share [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0.3 | $ 0.2 | $ 0.5 | $ 0.4 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Percent of Principal Amount Subject to Optional Tender | 100.00% |
Garfield Industrial Authority Bond [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | Jan. 1, 2025 |
Muskogee Industrial Authority Bond Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | Jan. 1, 2025 |
Muskogee Industrial Authority Bond Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Maturity Date | Jun. 1, 2027 |
Redeemable during the next 12 months [Member] | |
Debt Instrument [Line Items] | |
Total (redeemable during next 12 months) | $ 135.4 |
OG&E [Member] | Redeemable during the next 12 months [Member] | Garfield Industrial Authority Bond [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, gross | 47 |
OG&E [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, gross | 32.4 |
OG&E [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Long-term debt, gross | $ 56 |
Minimum [Member] | Redeemable during the next 12 months [Member] | Garfield Industrial Authority Bond [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.65% |
Minimum [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.65% |
Minimum [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.66% |
Maximum [Member] | Redeemable during the next 12 months [Member] | Garfield Industrial Authority Bond [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.98% |
Maximum [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.95% |
Maximum [Member] | Redeemable during the next 12 months [Member] | Muskogee Industrial Authority Bond Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.97% |
Senior Notes [Member] | OG&E [Member] | Series due April 1, 2047 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 4.15% |
Long-term debt, gross | $ 300 |
Debt Instrument, Maturity Date | Apr. 1, 2047 |
Senior Notes [Member] | OG&E [Member] | Series Due July 15, 2017 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% |
Long-term debt, gross | $ 125 |
Debt Instrument, Maturity Date | Jul. 15, 2017 |
Short-Term Debt and Credit Fa31
Short-Term Debt and Credit Facilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Line of Credit Facility, Expiration Date | Mar. 8, 2022 | |
Advances from parent | $ 0 | $ 49.9 |
Advances to parent | $ 46 | 0 |
Ratio of Consolidated Debt to Consolidated Capitalization | 65.00% | |
Letters of Credit Outstanding | $ 0.3 | |
Weighted Average Interest Rate | 0.95% | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.92% | |
OG&E [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 450 | |
Debt Restriction Maximum Letters of Credit | 100 | |
Available Optional Increase of Borrowing Capacity in Credit Facility | 150 | |
Intercomany Borrowings, Maximum Borrowing Capacity | 350 | |
Outstanding Intercompany Borrowings | 1.5 | |
Aggregate Commitment - Revolving Credit Facility | $ 600 | |
Intercompany Borrowing Agreement, Expiration Date | Mar. 8, 2022 | |
Long-term Line of Credit | $ 160 | $ 0 |
Commercial Paper | 0 | |
Short Term Borrowing Capacity That Has Regulatory Approval | $ 800 | |
Period For Which Regulatory Approval Has Been Given to Acquire Short Term Debt | 2 years | |
Acceleration of Debt [Member] | OG&E [Member] | ||
Short-term Debt [Line Items] | ||
Acceleration of Indebtedness of Credit Facility | $ 100 | |
Uninsured Judgements [Member] | OG&E [Member] | ||
Short-term Debt [Line Items] | ||
Acceleration of Indebtedness of Credit Facility | $ 100 |
Retirement Plans and Postreti32
Retirement Plans and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | ||||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 27.9 | |||||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 45 | |||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Net periodic benefit cost | $ 2.9 | $ 2.1 | 5.2 | $ 4.8 | ||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 27.9 | |||||||||
Other Pension Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Service cost | 0 | 0 | 0 | 0 | ||||||
Interest cost | 0.1 | (0.1) | 0.1 | 0 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization of net loss | 0.1 | 0.1 | 0.2 | 0.1 | ||||||
Net periodic benefit cost | 0.2 | [1] | 0.4 | [1] | 0.3 | [2] | 0.5 | [2] | ||
Settlement | 0 | 0.4 | 0 | 0.4 | ||||||
Pension Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Service cost | 2.4 | 2.3 | 5.1 | 5.1 | ||||||
Interest cost | 4.9 | 4.6 | 9.7 | 9.6 | ||||||
Expected return on plan assets | (8.1) | (8.2) | (16.4) | (16.6) | ||||||
Amortization of net loss | 3.5 | 3 | 6.5 | 6.2 | ||||||
Net periodic benefit cost | 2.7 | [1] | 1.7 | [1] | 4.9 | [2] | 4.3 | [2] | ||
Settlement | 0 | 0 | 0 | 0 | $ 22.4 | |||||
Capitalized Portion of Net Periodic Benefit Cost | 1 | 0.6 | 1.8 | 1.4 | ||||||
Other Postretirement Benefits Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Service cost | 0.1 | 0.2 | 0.2 | 0.3 | ||||||
Interest cost | 1.6 | 1.9 | 3.3 | 3.7 | ||||||
Expected return on plan assets | (0.5) | (0.5) | (1) | (1) | ||||||
Amortization of net loss | 0.2 | 0.8 | 0.8 | 1.3 | ||||||
Amortization of unrecognized prior service cost | [3] | 0 | (1.6) | 0 | (3.1) | |||||
Net periodic benefit cost | 1.4 | [4] | 0.8 | [4] | 3.3 | [5] | 1.2 | [5] | ||
Capitalized Portion of Net Periodic Benefit Cost | 0.5 | 0.2 | 1.1 | 0.4 | ||||||
OKLAHOMA | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Additional Pension Expense to Meet State Requirements | 2.9 | 2.6 | 5.8 | 4.9 | ||||||
OKLAHOMA | Other Postretirement Benefits Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Additional Pension Expense to Meet State Requirements | 1 | $ 2 | 2.1 | 4 | ||||||
ARKANSAS | Other Pension Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Settlement | $ 0.1 | |||||||||
ARKANSAS | Pension Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Settlement | 2.3 | 2.3 | ||||||||
OGE Energy [Member] | Other Pension Plan [Member] | ||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||||||||
Settlement | $ 0.6 | $ 0.6 | ||||||||
[1] | In addition to the $2.9 million and $2.1 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016, respectively, OG&E recognized the following: •an increase in pension expense during the three months ended June 30, 2017 and 2016 of $2.9 million and $2.6 million, respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.);•a deferral of pension expense during the three months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013;•a deferral of pension expense during the three months ended June 30, 2016 of $0.6 million, which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and•a deferral of pension expense during the three months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million. | |||||||||
[2] | In addition to the $5.2 million and $4.8 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016, respectively, OG&E recognized the following:•an increase in pension expense during the six months ended June 30, 2017 and 2016 of $5.8 million and $4.9 million, respectively, to maintain the allowable amount to be recovered for pension expense in the Oklahoma jurisdiction, which are included in the pension tracker regulatory liability (See Note 1.);•a deferral of pension expense during the six months ended June 30, 2017 of $2.3 million related to the Arkansas jurisdictional portion of the pension settlement charge of $22.4 million in 2013;•a deferral of pension expense during the six months ended June 30, 2016 of $0.6 million, which includes a portion of OGE Energy's pension settlement charge, related to the pension settlement charge of $0.4 million, in accordance with the Oklahoma pension tracker regulatory liability (See Note 1.); and•a deferral of pension expense during the six months ended June 30, 2016 of $0.1 million related to the Arkansas jurisdictional portion of the pension settlement charge of $0.4 million. | |||||||||
[3] | Unamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment. | |||||||||
[4] | In addition to the $1.4 million and $0.8 million of net periodic benefit cost recognized during the three months ended June 30, 2017 and 2016, respectively, OG&E recognized an increase in postretirement medical expense in the three months ended June 30, 2017 and 2016 of $1.0 million and $2.0 million, respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). | |||||||||
[5] | In addition to the $3.3 million and $1.2 million of net periodic benefit cost recognized during the six months ended June 30, 2017 and 2016, respectively, OG&E recognized an increase in postretirement medical expense in the six months ended June 30, 2017 and 2016 of $2.1 million and $4.0 million, respectively, to maintain the allowable amount to be recovered for postretirement medical expense in the Oklahoma jurisdiction which are included in the pension tracker regulatory liability (See Note 1.). |
Rate Matters and Regulation (De
Rate Matters and Regulation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Public Utilities, Approved Equity Capital Structure, Percentage | 53.00% | ||
Public Utilities, Approved Debt Capital Structure, Percentage | 47.00% | ||
Current Regulatory Assets | $ 171 | $ 121.8 | |
Amount of Interim Rate Increase Refunded | 15.3 | ||
Interim Rate Refund Amount | 47.5 | ||
Dry Scrubber Project [Member] | |||
Estimated Environmental Capital Costs | 542.4 | ||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 323.4 | ||
Mustang Modernization [Member] | |||
Estimated Environmental Capital Costs | 390 | ||
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 276.3 | ||
OKLAHOMA | |||
Approved Depreciation Reduction from ALJ Recommendation | $ 28.6 | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 92.5 | ||
Public Utilities, Requested Return on Equity, Percentage | 10.25% | ||
Public Utilities, Requested Equity Capital Structure, Percentage | 53.00% | ||
Investments Since Last Rate Case | $ 1,600 | ||
Public Utilities, Interim Rate Increase (Decrease), Amount | $ 69.5 | ||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 8.8 | ||
Public Utilities, Approved Return on Equity, Percentage | 9.50% | ||
ALJ Depreciation Recommendation | $ 36.4 | ||
Approved Recovery of Short-term Incentive Comp | 50.00% | ||
Approved Recovery of Long-term Incentive Comp | 0.00% | ||
Interim Rate Revenue Reserved | 5.6 | ||
ARKANSAS | |||
Settlement of Return on Equity, Percentage | 9.50% | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 16.5 | ||
Public Utilities, Requested Return on Equity, Percentage | 10.25% | ||
Investments Since Last Rate Case | $ 3,000 | ||
Settlement of Rate Increase | $ 7.1 | ||
Settlement of Equity Capital Structure, Percentage | 50.00% | ||
Administrative Law Judge [Member] | |||
Recommended Return on Equity | 9.87% | ||
Recommended Increase (Decrease) in Revenue | $ 40.7 | ||
Recommended Capital Structure, Equity Percentage | 53.00% | ||
Recommended Capital Structure, Debt Percentage | 47.00% |