Short-Term Debt and Credit Facilities

6 Months Ended

Jun. 30, 2014

Short-term Debt [Abstract]

Short-Term Debt and Credit Facilities

Short-Term Debt and CreditFacilities

The Company borrows on a short-term basis, as necessary, by the issuance of commercial paper and by borrowings under its revolving credit agreements.The short-term debt balance was$386.6 millionand$439.6 millionatJune 30, 2014 and December 31, 2013, respectively. The following table provides information regarding the Company's revolving credit agreements at June 30, 2014.

	Aggregate		Amount		Weighted-Average
Entity	Commitment		Outstanding (A)		Interest Rate			Maturity
	(In millions)
OGE Energy (B)	$	750.0	$	386.6	0.28	%	(D)	December 13, 2018	(E)
OG&E (C)	400.0		2.0		0.47	%	(D)	December 13, 2018	(E)
Total	$	1,150.0	$	388.6	0.29	%

(A) Includes direct borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit at June 30, 2014.

(B) This bank facility is available to back up OGE Energy's commercial paper borrowings and to provide revolving credit borrowings.  This bank facility can also be used as a letter of credit facility.  

(C) This bank facility is available to back up OG&E's commercial paper borrowings and to provide revolving credit borrowings.  This bank facility can also be used as a letter of credit facility.

(D) Represents the weighted-average interest rate for the outstanding borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit.

(E) In December 2011, the Company and OG&E entered into unsecured five-year revolving credit agreements to total in the aggregate$1,150 million ($750 millionfor the Company and$400 millionfor OG&E). Each of the facilities contained an option, which could be exercised up to two times, to extend the term of the respective facility for an additional year. Effective July 29, 2013, the Company and OG&E utilized one of those extensions to extend the maturity of their respective credit facility from December 13, 2016 to December 13, 2017. Effective June 24, 2014, the Company and OG&E utilized their second extension to extend the maturity of their respective credit facility from December 13, 2017 to December 13, 2018. Commitments of a single existing lender with respect to approximately$65.2 million and $34.8 millionof the Company’s and OG&E’s credit facilities, respectively, however, were not extended and, unless the non-extending lender is replaced in accordance with the terms of the credit facility, such commitments will expire December 13, 2017.

The Company'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 the Company's credit facilities could cause annual fees and borrowing rates to increase if an adverse ratings impact occurs. The impact of any future downgrade could include an increase in the costs of the Company's short-term borrowings, but a reduction in the Company's credit ratings would not result in any defaults or accelerations.Any future downgradecould also lead to higher long-term borrowing costs and, if below investment grade, would require the Company to post cash 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 millionin short-term borrowings at any one time for a two-year period beginning January 1, 2013 and ending December 31, 2014.