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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

The following table presents the components of income tax expense (benefit).


	OGE Energy						OG&E
Year Ended December 31 (In millions)	2020		2019		2018		2020		2019		2018
Provision (benefit) for current income taxes:
Federal	$	8.4	$	(6.4)	$	(1.9)	$	(3.8)	$	(7.9)	$	(12.4)
State	0.5		5.1		(4.4)		(0.6)		4.1		(4.1)
Total provision (benefit) for current income taxes	8.9		(1.3)		(6.3)		(4.4)		(3.8)		(16.5)
Provision (benefit) for deferred income taxes, net:
Federal	(105.2)		48.5		74.7		45.7		37.7		53.7
State	(31.1)		(17.4)		3.7		(6.6)		(13.8)		2.7
Total provision (benefit) for deferred income taxes, net	(136.3)		31.1		78.4		39.1		23.9		56.4
Deferred federal investment tax credits, net	—		—		0.1		—		—		0.1
Total income tax expense (benefit)	$	(127.4)	$	29.8	$	72.2	$	34.7	$	20.1	$	40.0

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

The following table presents a reconciliation of the statutory tax rates to the effective income tax rate.


	OGE Energy						OG&E
Year Ended December 31	2020		2019		2018		2020		2019		2018
Statutory federal tax rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Impairment of OGE Energy's investment in Enable (A)	31.6		—		—		—		—		—
Remeasurement of state deferred tax liabilities	0.9		(0.8)		(0.4)		—		—		—

Executive compensation limitation	0.2		0.2		0.2		—		—		—
Other	0.1		(0.7)		0.4		0.1		(0.6)		(0.1)
Federal renewable energy credit (B)	(5.0)		(6.0)		(5.1)		(5.4)		(7.6)		(6.9)
Amortization of net unfunded deferred taxes	(4.4)		(4.5)		(2.1)		(4.8)		(5.6)		(2.9)
State income taxes, net of federal income tax benefit	(1.4)		(1.2)		0.4		(1.6)		(1.8)		(0.2)
Stock-based compensation	(0.3)		(1.2)		—		—		—		—
401(k) dividends	(0.4)		(0.4)		(0.3)		—		—		—
Federal deferred tax revaluation	—		—		0.4		—		—		—

Effective income tax rate	42.3	%	6.4	%	14.5	%	9.3	%	5.4	%	10.9	%

(A)As further discussed in Note 5, OGE Energy recorded a $780.0 million impairment on its investment in Enable in March 2020, which resulted in a tax benefit being recorded that caused a significant variance to the effective tax rate as compared to the prior year. This variance has been presented in the table as a single line item in order to facilitate comparability of other components of the effective tax rate.

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

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

The following table presents the components of Deferred Income Taxes at December 31, 2020 and 2019.
















	OGE Energy				OG&E
December 31 (In millions)	2020		2019		2020		2019
Deferred income tax liabilities, net:
Accelerated depreciation and other property related differences	$	1,721.2	$	1,656.8	$	1,721.2	$	1,656.8

Investment in Enable	302.6		478.2		—		—
Regulatory assets	52.3		28.4		52.3		28.4
Pension Plan	3.9		4.1		27.4		24.5
Bond redemption-unamortized costs	2.0		2.2		2.0		2.2
Derivative instruments	1.7		1.6		—		—


Federal tax credits	(236.6)		(238.0)		(236.6)		(238.0)
Income taxes recoverable from customers, net	(221.8)		(229.9)		(221.8)		(229.9)
State tax credits	(204.4)		(185.8)		(189.0)		(170.8)
Regulatory liabilities	(81.0)		(68.1)		(81.0)		(68.1)
Postretirement medical and life insurance benefits	(22.4)		(23.3)		(15.3)		(16.0)
Asset retirement obligations	(20.3)		(19.2)		(20.3)		(19.2)
Net operating losses	(12.0)		(16.6)		(1.4)		(5.7)
Accrued liabilities	(9.6)		(10.7)		(5.2)		(4.3)
Deferred federal investment tax credits	(2.7)		(1.8)		(2.7)		(1.8)
Accrued vacation	(2.2)		(2.1)		(1.6)		(1.6)
Other	(1.4)		0.4		(6.5)		(4.7)
Uncollectible accounts	(0.7)		(0.4)		(0.7)		(0.4)

Total deferred income tax liabilities, net	$	1,268.6	$	1,375.8	$	1,020.8	$	951.4

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

The following table presents a reconciliation of the Registrants' total gross unrecognized tax benefits as of the years ended December 31, 2020, 2019 and 2018.


(In millions)	2020		2019		2018
Balance at January 1	$	20.7	$	20.7	$	20.7
Tax positions related to current year:
Additions	1.2		—		—


Balance at December 31	$	21.9	$	20.7	$	20.7

Summary of Tax Credit Carryforwards [Table Text Block]

The following table presents a summary of these carry forwards.


	OGE Energy				OG&E
(In millions)	Carry Forward Amount		Deferred Tax Asset		Carry Forward Amount		Deferred Tax Asset		Earliest Expiration Date

State operating loss	$	268.0	$	12.0	$	21.5	$	1.4	2030
Federal tax credits	$	236.6	$	236.6	$	236.6	$	236.6	2032
State tax credits:
Oklahoma investment tax credits	$	205.6	$	162.3	$	186.1	$	147.0	N/A
Oklahoma capital investment board credits	$	12.7	$	12.7	$	12.7	$	12.7	N/A
Oklahoma zero emission tax credits	$	37.2	$	29.3	$	37.2	$	29.3	2021
Louisiana inventory credits	$	0.2	$	0.1	$	—	$	—	2021

N/A - not applicable