Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The items comprising income tax expense are as follows:



Year ended December 31 (In millions)	2013			2012			2011
Provision (Benefit) for Current Income Taxes
Federal	$	—		$	(9.1	)	$	(5.4	)
State	4.3			0.5			0.1
Total Provision (Benefit) for Current Income Taxes	4.3			(8.6		)	(5.3		)
Provision for Deferred Income Taxes, net
Federal	154.4			147.3			165.5
State	(26.4		)	(1.5		)	3.8
Total Provision for Deferred Income Taxes, net	128.0			145.8			169.3
Deferred Federal Investment Tax Credits, net	(2.0		)	(2.1		)	(3.3		)
Total Income Tax Expense	$	130.3		$	135.1		$	160.7

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following schedule reconciles the statutory Federal tax rate to the effective income tax rate:



Year ended December 31	2013		2012		2011
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
Amortization of net unfunded deferred taxes	0.6		0.8		0.7
State income taxes, net of Federal income tax benefit	0.4		(0.1	)	0.6
Federal investment tax credits, net	(0.4	)	(0.4	)	(0.7	)
401(k) dividends	(0.5	)	(0.5	)	(0.5	)
Income attributable to noncontrolling interest	(0.3	)	(1.6	)	(1.3	)
Federal renewable energy credit (A)	(7.2	)	(7.2	)	(3.4	)
Uncertain tax positions	1.5		—		—
Remeasurement of state deferred tax liabilities	(4.1	)	—		—
Other	(0.1	)	—		0.3
Effective income tax rate	24.9	%	26.0	%	30.7	%


(A)	Represents credits associated with the production from OG&E's wind farms.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The deferred tax provisions are recognized as costs in the ratemaking process by the commissions having jurisdiction over the rates charged by OG&E. The components of Deferred Income Taxes at December 31, 2013 and 2012, respectively, were as follows:



December 31 (In millions)	2013			2012
Current Deferred Income Tax Assets
Net operating losses	$	180.1		$	152.4
Accrued liabilities	22.3			27.1
Federal tax credits	8.0			6.0
Accrued vacation	4.7			3.8
Uncollectible accounts	0.7			1.0
Total Current Deferred Income Tax Assets	215.8			190.3
Current Accrued Income Tax Liabilities
Derivative instruments	—			(2.6		)
Total Current Accrued Income Tax Liabilities	—			(2.6		)
Current Deferred Income Tax Assets, net	$	215.8		$	187.7

Non-Current Deferred Income Tax Liabilities
Accelerated depreciation and other property related differences	$	1,753.3		$	1,660.3
Investment in Enogex Holdings	—			638.0
Investment in Enable Midstream Partners	630.5			—
Company pension plan	55.1			52.4
Income taxes refundable to customers, net	21.9			21.2
Regulatory asset	26.1			18.8
Bond redemption-unamortized costs	3.6			4.0
Derivative instruments	1.6			1.5
Total Non-Current Deferred Income Tax Liabilities	2,492.1			2,396.2
Non-Current Deferred Income Tax Assets
Federal tax credits	(105.2		)	(69.6		)
State tax credits	(92.6		)	(83.7		)
Postretirement medical and life insurance benefits	(62.8		)	(57.6		)
Regulatory liabilities	(61.3		)	(71.4		)
Asset retirement obligations	(20.8		)	—
Net operating losses	(18.8		)	(159.1		)
Other	(4.6		)	(4.5		)
Deferred Federal investment tax credits	(0.7		)	(1.5		)
Total Non-Current Deferred Income Tax Assets	(366.8		)	(447.4		)
Non-Current Deferred Income Tax Liabilities, net	$	2,125.3		$	1,948.8

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

Following is a reconciliation of the Company’s total gross unrecognized tax benefits as of the years ended December 31, 2013, 2012, and 2011.



(Millions)	2013		2012		2011
Balance at January 1	$	—	$	—	$	—
Tax positions related to current year:
Additions	2.7		—		—
Tax positions related to prior years:
Additions	5.1		—		—
Balance at December 31	$	7.8	$	—	$	—

Where applicable, the Company classifies income tax-related interest and penalties as interest expense and other operation and maintenance expense, respectively. During the year ended December 31, 2013, there were no income tax-related interest or penalties recorded with regard to uncertain tax positions.

Summary of Tax Credit Carryforwards [Table Text Block]

The Company sustained Federal and state tax operating losses through 2012 caused primarily by bonus depreciation and other book verses tax temporary differences. As a result, the Company had accrued Federal and state income tax benefits carrying into 2013. As the Company can no longer carry these losses back to prior periods, these losses are being carried forward for utilization in future years. In addition to the operating losses, the Company was unable to utilize the various tax credits that were generating during these years. These tax losses and credits are being carried as deferred tax assets and will be utilized in future periods. Under current law, the Company anticipates future taxable income will be sufficient to utilize all of the losses and credits before they begin to expire, accordingly no valuation allowance is considered necessary. The following table summarizes these carry forwards:



(In millions)	Carry Forward Amount		Deferred Tax Asset		Earliest Expiration Date
Net operating losses
State operating loss	$	893.6	$	32.8	2030
Federal operating loss	474.6		166.1		2030
Federal tax credits	113.2		113.2		2029
State tax credits
Oklahoma investment tax credits	106.1		69.0		N/A
Oklahoma capital investment board credits	7.3		7.3		N/A
Oklahoma zero emission tax credits	24.3		16.3		2020