Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Organization

The Company is 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. The Company conducts these activities through three business segments:  (i) electric utility, (ii) natural gas transportation and storage and (iii) natural gas gathering and processing.  All significant intercompany transactions have been eliminated in consolidation.

The electric utility segmentgenerates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas.  Its operations areconducted through OG&E and aresubject 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 the Fort Smith, Arkansas area.  OG&E sold its retail natural gas business in 1928 and is no longer engaged in the natural gas distribution business.

Enogex is a provider of integrated natural gas midstream services.Enogex is engaged in the business of gathering, processing, transporting and storing natural gas.  Most of Enogex's natural gas gathering, processing, transportation and storage assets are strategically located in the Arkoma and Anadarko basins of Oklahoma and the Texas Panhandle.Enogex's operations are organized into two business segments: (i) natural gas transportation and storage and (ii) natural gas gathering and processing.AtMarch 31, 2013, OGE Energy indirectly owns a79.9 percentmembership interest in Enogex Holdings, which in turn owns all of the membership interests in Enogex LLC, a Delaware single-member limited liability company.  At March 31, 2013, the Company consolidated Enogex Holdings in its Condensed Consolidated Financial Statements as OGE Energy had a controlling financial interest over the operations of Enogex Holdings.  Also, at March 31, 2013, Enogex LLC held a 50 percent ownership interest in Atoka.  At March 31, 2013, the Company consolidated Atoka in its Condensed Consolidated Financial Statements as Enogex acted as the managing member of Atoka and had control over the operations of Atoka.

On March 14, 2013,OGE Energy entered into a Master Formation Agreement withthe ArcLight groupand CenterPoint Energy, Inc., pursuant to which OGE Energy, the ArcLight groupand CenterPoint Energy, Inc., agreed to form the Midstream Partnership to own and operate the midstream businesses of OGE Energy and CenterPoint. This transaction closed on May 1, 2013.Pursuant to the Master Formation Agreement, OGE Energy and the ArcLight groupindirectlycontributedEnogex LLCto the Midstream Partnershipand CenterPoint Energy, Inc. contributed its midstream natural gas business to the Midstream Partnership.At May 1, 2013, OGE Energy holds28.5 percentof the limited partners interests, CenterPoint holds58.3 percentof the limited partner interests and the ArcLight group holds13.2 percentof the limited partner interests in the Midstream Partnership. The general partner of the Midstream Partnership is equally controlled by CenterPoint and OGE Energy, who each have50 percentof the management rights. Based on the 50/50 management ownership, with neither company having control, effective May 1, 2013, OGE Energy deconsolidated its interest in Enogex LLC and will account for its interest in the Midstream Partnership under the equity method of accounting.For additional information regarding the Midstream Partnership, see Note 3.

Basis of Presentation

The Condensed Consolidated Financial Statements included herein have been prepared by the Company, 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, the Company 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 consolidated financial position of the Company atMarch 31, 2013andDecember 31, 2012and the results of its operations and cash flows for the threemonths endedMarch 31, 2013and2012, have been included and are of a normal recurring nature except as otherwise disclosed.

Due to seasonal fluctuations and other factors, the Company'soperating results for the threemonths endedMarch 31, 2013are not necessarily indicative of the results that may be expected for the year endingDecember 31, 2013or for any future period.The Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company's 2012Form 10-K.

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 actual or anticipated 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 actual or anticipated costs and obligations as regulatory assets or liabilities if it is probable, based on regulatory orders or other available evidence, that the cost or obligation 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:

(In millions)	March 31, 2013		December 31, 2012
Regulatory Assets
Current
Crossroads wind farm rider under recovery (A)	$	13.4	$	14.9
Oklahoma demand program rider under recovery (A)	9.4		9.2
Fuel clause under recoveries	0.4		—
Other (A)	7.6		2.9
Total Current Regulatory Assets	$	30.8	$	27.0
Non-Current
Benefit obligations regulatory asset	$	364.1	$	370.6
Income taxes recoverable from customers, net	54.9		54.7
Smart Grid	42.9		42.8
Unamortized loss on reacquired debt	12.7		13.0
Deferred storm expenses	12.3		12.7
Deferred pension expenses	3.4		4.5
Other	12.3		12.3
Total Non-Current Regulatory Assets	$	502.6	$	510.6
Regulatory Liabilities
Current
Fuel clause over recoveries	$	81.6	$	109.2
Smart Grid rider over recovery (B)	21.6		24.1
Other (B)	6.5		7.8
Total Current Regulatory Liabilities	$	109.7	$	141.1
Non-Current
Accrued removal obligations, net	$	219.4	$	218.2
Deferred pension credits	14.9		17.7
Pension tracker	11.2		9.2
Total Non-Current Regulatory Liabilities	$	245.5	$	245.1

(A) Included in Other Current Assets on theCondensed Consolidated Balance Sheets.

(B) Included in Other Current Liabilities on theCondensed Consolidated 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

The following table summarizes changes to the Company's asset retirement obligations during thethreemonths endedMarch 31, 2013and2012.

	Three Months Ended
	March 31,
(In millions)	2013			2012
Balance at January 1	$	54.0		$	24.8
Liabilities settled	(0.1		)	—
Accretion expense	0.6			0.4
Revisions in estimated cash flows (A)	—			26.7
Balance at March 31	$	54.5		$	51.9

(A) Due to changes to OG&E's asset retirement obligations related to its wind farms due to a change in the assumption related to the timing of removal used in the valuation of the asset retirement obligations.

Accumulated Other Comprehensive Income (Loss)

In February 2013, the Financial Accounting Standards Board issued "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The new standard requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, the new standard requires an entity to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items in net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The Company adopted the new standard effective January 1, 2013 and these disclosures have been included below.

The following table summarizes changes in the components of accumulated other comprehensive loss attributable to OGE Energy during thethreemonths endedMarch 31, 2013. At both March 31, 2013 and December 31, 2012, there was no accumulated other comprehensive loss related to Enogex's noncontrolling interest in Atoka. All amounts below are presented net of tax and noncontrolling interest.

	Pension Plan and Restoration of Retirement Income Plan					Postretirement Benefit Plans
	Net loss			Prior service cost		Net loss			Prior service cost			Deferred commodity contracts hedging gains			Deferred interest rate swap hedging losses			Noncontrolling interest			Total
Balance at December 31, 2012	$	(49.3	)	$	0.1	$	(15.7	)	$	7.2		$	0.1		$	(0.5	)	$	(9.0	)	$	(49.1	)
Amounts reclassified from accumulated other comprehensive income (loss)	0.9			—		0.5			(0.5		)	(0.1		)	0.1			0.1			0.8
Balance at March 31, 2013	$	(48.4	)	$	0.1	$	(15.2	)	$	6.7		$	—		$	(0.4	)	$	(8.9	)	$	(48.3	)

The following table summarizes significant amounts reclassified out of accumulated other comprehensive loss by the respective line items in net income during thethreemonths endedMarch 31, 2013.

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss			Affected Line Item in the Statement Where Net Income is Presented
Gains (losses) on cash flow hedges
Commodity contracts	$	0.2		Cost of goods sold
Interest rate swap	(0.2		)	Interest expense
	$	—		Total before tax
Amortization of defined benefit pension items
Actuarial gains (losses)	$	(1.3	)	(A)
	(1.3		)	Total before tax
	(0.4		)	Tax benefit
	(0.9		)	Net of tax
	(0.1		)	Noncontrolling interest
	$	(0.8	)	Net of tax and noncontrolling interest
Amortization of postretirement benefit plan items
Actuarial gains (losses)	$	(0.8	)	(A)
Prior service cost	0.8			(A)
	—			Total before tax
Total reclassifications for the period	$	(0.8	)	Net of tax and noncontrolling interest

(A) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 12 for additional information).

Reclassifications

As discussed in Note 13, during the third quarter of 2012, the operations and activities of EER were fully integrated with those of Enogex through the creation of a new commodity management organization.The operations of EER, including asset management activities, have been included in the natural gas transportation and storage segment and have been restated for all prior periods presented to conform to the 2013 presentation.