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Leases, Codification Topic 842
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lessee, Operating Leases Leases
Based on their evaluation of all contracts under ASC 842, as described in Note 1, the Registrants concluded they have operating lease obligations for OG&E's railcar leases, testing equipment and wind farm land leases. OGE Energy also has an operating lease obligation for its office space lease.

Operating Leases

OG&E Railcar Lease Agreement

Effective February 1, 2019, OG&E renewed a railcar lease agreement for 780 rotary gondola railcars to transport coal from Wyoming to OG&E's coal-fired generation units. Rental payments are charged to fuel expense and are recovered through OG&E's fuel adjustment clauses. On February 1, 2024, OG&E has the option to either purchase the railcars at a stipulated fair market value or renew the lease. If OG&E chooses not to purchase the railcars or renew the lease agreement and the actual fair value of the railcars is less than the stipulated fair market value, OG&E would be responsible for the difference in those values up to a maximum of $6.8 million.

OG&E Testing Equipment Lease Agreement

Effective January 1, 2020, OG&E entered into a noncancellable engineering testing equipment lease agreement, with a term of January 1, 2020 to December 31, 2022.

OG&E Wind Farm Land Lease Agreements

OG&E has operating leases related to land for OG&E's Centennial, OU Spirit and Crossroads wind farms with terms of 25 to 30 years. The Centennial lease has rent escalations which increase annually based on the Consumer Price Index. While lease liabilities are not remeasured as a result of changes to the Consumer Price Index, changes to the Consumer Price Index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The OU Spirit and Crossroads leases have rent escalations which increase after five and 10 years. Although the leases are cancellable, OG&E is required to make annual lease payments as long as the wind turbines are located on the land. OG&E does not expect to terminate the leases until the wind turbines reach the end of their useful life.
OGE Energy Office Space Lease

OGE Energy has a noncancellable office space lease agreement, with a term from September 1, 2018 to August 31, 2021, that allows for leasehold improvements.

Financial Statement Information and Maturity Analysis of Lease Liabilities

OGE Energy's operating lease cost was $6.4 million, $6.0 million and $4.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. OG&E's operating lease cost was $5.5 million, $5.1 million and $4.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

The following table presents amounts recognized for operating leases in the Registrants' cash flow statements and balance sheets and supplemental information related to those amounts recognized.
OGE EnergyOG&E
Year Ended December 31,Year Ended December 31,
(In millions)2020201920202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$6.4$5.6$5.5$4.8
Right-of-use assets obtained in exchange for new operating lease liabilities$1.4$10.7$1.4$10.7
(Dollars in millions)December 31, 2020December 31, 2019December 31, 2020December 31, 2019
Right-of-use assets at period end (A)$37.6$40.9$37.0$39.6
Operating lease liabilities at period end (B)$42.3$45.8$41.7$44.3
Operating lease weighted-average remaining lease term (in years)
12.513.112.713.5
Operating lease weighted-average discount rate3.9 %3.9 %3.9 %3.9 %
(A)Included in Property, Plant and Equipment in the Registrants' balance sheets.
(B)Included in Other Deferred Credits and Other Liabilities in the Registrants' balance sheets.

The following table presents a maturity analysis of the Registrants' operating lease liabilities.
Future minimum operating lease payments as of December 31:OGE EnergyOG&E
(In millions)
2021$6.3 $5.7 
20225.7 5.7 
20235.1 5.1 
20243.2 3.2 
20253.0 3.0 
Thereafter31.7 31.7 
Total future minimum lease payments55.0 54.4 
Less: Imputed interest12.7 12.7 
Present value of net minimum lease payments$42.3 $41.7