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Stock Based Compensation
12 Months Ended
Dec. 31, 2021
Stock-Based Compensation [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Stock-Based Compensation
In 2013, OGE Energy adopted, and its shareholders approved, the Stock Incentive Plan. Under the Stock Incentive Plan, restricted stock, restricted stock units, stock options, stock appreciation rights and performance units may be granted to officers, directors and other key employees of OGE Energy and its subsidiaries, including OG&E. OGE Energy has authorized the issuance of up to 7,400,000 shares under the Stock Incentive Plan.

The following table presents the Registrants' pre-tax compensation expense and related income tax benefit for the years ended December 31, 2021, 2020 and 2019 related to performance units and restricted stock units for the Registrants' employees.
OGE EnergyOG&E
Year Ended December 31 (In millions)
202120202019202120202019
Performance units:   
Total shareholder return$7.5 $7.9 $8.7 $1.8 $2.3 $3.0 
Earnings per share 1.0 4.3  0.3 1.5 
Total performance units7.5 8.9 13.0 1.8 2.6 4.5 
Restricted stock units2.3 0.9 0.9 0.4 0.4 0.4 
Total compensation expense$9.8 $9.8 $13.9 $2.2 $3.0 $4.9 
Income tax benefit$2.5 $2.5 $3.6 $0.6 $0.8 $1.3 

During the year ended December 31, 2020, OGE Energy purchased 405,000 shares of its common stock, and 154,523 and 247,252 of these shares were used during December 31, 2021 and 2020, respectively, to satisfy payouts of earned performance units and restricted stock unit grants to the Registrants' employees pursuant to OGE Energy's Stock Incentive Plan. The shares were purchased at an average cost of $38.04 and $33.14 per share on the open market during March 2020 and August 2020, respectively. OGE Energy records treasury stock purchases at cost. Treasury stock is presented as a reduction of stockholders' equity in OGE Energy's balance sheets.

During the year ended December 31, 2020, there was an immaterial number of shares of new common stock issued pursuant to OGE Energy's Stock Incentive Plan to satisfy restricted stock unit grants to employees. During the year ended December 31, 2019, OGE Energy issued 443,900 shares of new common stock to satisfy payouts of earned performance units and restricted stock unit grants to the Registrants' employees.

Performance Units
 
Under the Stock Incentive Plan, OGE Energy has issued performance units which represent the value of one share of OGE Energy's common stock. The performance units provide for accelerated vesting if there is a change in control (as defined in the Stock Incentive Plan). Each performance unit is subject to forfeiture if the recipient terminates employment with OGE Energy or a subsidiary prior to the end of the primarily three-year award cycle for any reason other than death, disability or retirement. In the event of death, disability or retirement, a participant will receive a prorated payment based on such participant's number of full months of service during the award cycle, further adjusted based on the achievement of the performance goals during the award cycle. The Registrants estimate expected forfeitures in accounting for performance unit compensation expense.
 
The performance units granted based on total shareholder return are contingently awarded and will be payable in shares of OGE Energy's common stock subject to the condition that the number of performance units, if any, earned by the employees upon the expiration of a primarily three-year award cycle (i.e., three-year cliff vesting period) is dependent on OGE Energy's total shareholder return ranking relative to a peer group of companies. The performance units granted based on earnings per share were contingently awarded and will be payable in shares of OGE Energy's common stock based on OGE Energy's earnings per share growth over a primarily three-year award cycle (i.e., three-year cliff vesting period) compared to a target set at the time of the grant by the Compensation Committee of OGE Energy's Board of Directors. All of these performance units are classified as equity in the balance sheets. If there is no or only a partial payout for the performance units at the end of the award cycle, the unearned performance units are cancelled. Payout requires approval of the Compensation Committee of OGE Energy's Board of Directors. Payouts, if any, are all made in common stock and are considered made when the payout is approved by the Compensation Committee.
Performance Units – Total Shareholder Return
 
The fair value of the performance units based on total shareholder return was estimated on the grant date using a lattice-based valuation model that factors in information, including the expected dividend yield, expected price volatility, risk-free interest rate and the probable outcome of the market condition, over the expected life of the performance units. Compensation expense for the performance units is a fixed amount determined at the grant date fair value and is recognized over the primarily three-year award cycle regardless of whether performance units are awarded at the end of the award cycle. Dividends are accrued on a quarterly basis pending achievement of payout criteria and are included in the fair value calculations. Expected price volatility is based on the historical volatility of OGE Energy's common stock for the past three years and is simulated using the Geometric Brownian Motion process. The risk-free interest rate for the performance unit grants is based on the three-year U.S. Treasury yield curve in effect at the time of the grant. The expected life of the units is based on the non-vested period since inception of the award cycle. There are no post-vesting restrictions related to OGE Energy's performance units based on total shareholder return. The following table presents the number of performance units granted based on total shareholder return and the assumptions used to calculate the grant date fair value of the performance units based on total shareholder return.
OGE EnergyOG&E
 202120202019202120202019
Number of units granted249,909201,552208,64768,72067,97568,396
Fair value of units granted$38.14$38.03$47.00$38.14$38.03$47.00
Expected dividend yield4.7 %3.5 %4.0 %4.7 %3.5 %4.0 %
Expected price volatility29.0 %15.0 %17.0 %29.0 %15.0 %17.0 %
Risk-free interest rate0.22 %1.17 %2.47 %0.22 %1.17 %2.47 %
Expected life of units (in years)
2.842.852.862.852.852.86

Performance Units – Earnings Per Share

In 2019, the Compensation Committee of OGE Energy's Board of Directors voted to grant restricted stock units in lieu of performance units based on earnings per share. The last outstanding grant of performance units based on earnings per share paid out during 2021. Prior to payout, OGE Energy reassessed at each reporting date whether achievement of the performance condition was probable and accrued compensation expense if and when achievement of the performance condition was probable. As a result, the compensation expense recognized for these performance units varied from period to period. There are no post-vesting restrictions related to OGE Energy's performance units based on earnings per share.

Restricted Stock Units
 
Under the Stock Incentive Plan, OGE Energy has issued restricted stock units to certain existing non-officer employees as well as other executives upon hire to attract and retain individuals to be competitive in the marketplace, and as of the 2019 grant cycle, restricted stock units are granted in lieu of performance units based on earnings per share. The restricted stock units vest primarily in a three-year award cycle (i.e., three-year cliff vesting period). Prior to vesting, each restricted stock unit is subject to forfeiture if the recipient ceases to render substantial services to OGE Energy or a subsidiary. These restricted stock units may not be sold, assigned, transferred or pledged and are subject to a risk of forfeiture.

The fair value of the restricted stock units was based on the closing market price of OGE Energy's common stock on the grant date. Compensation expense for the restricted stock units is a fixed amount determined at the grant date fair value and is recognized as services are rendered by employees over a primarily three-year vesting period. Also, for those restricted stock units that vest in one-third annual increments over a three-year cycle, OGE Energy treats its restricted stock units as multiple separate awards by recording compensation expense separately for each tranche whereby a substantial portion of the expense is recognized in the earlier years in the requisite service period.
Dividends will only be paid on restricted stock unit awards that vest; therefore, only the present value of dividends expected to vest are included in the fair value calculations. The expected life of the restricted stock units is based on the non-vested period since inception of the primarily three-year award cycle. There are no post-vesting restrictions related to OGE Energy's restricted stock units. The following table presents the number of restricted stock units granted and the grant date fair value.
OGE EnergyOG&E
 202120202019202120202019
Restricted stock units granted89,197 67,193 75,929 22,911 22,665 26,141 
Fair value of restricted stock units granted$31.11 $43.69 $41.71 $30.91 $43.69 $41.63 

Performance Units and Restricted Stock Units Activity

The following tables present a summary of the activity for the Registrants' performance units and restricted stock units for the year ended December 31, 2021. The table designated as "OGE Energy" below includes the OG&E standalone activity, as OGE Energy represents consolidated results.
OGE EnergyPerformance UnitsRestricted
Stock Units
Total Shareholder ReturnEarnings Per Share
(Dollars in millions)Number
of Units
Aggregate Intrinsic ValueNumber
of Units
Aggregate Intrinsic ValueNumber
of Shares
Aggregate Intrinsic Value
Units/shares outstanding at 12/31/20612,262 79,002 124,919 
Granted249,909 (A) 89,197 
Converted(236,990)(B)$5.4 (79,002)(B)$2.7  
VestedN/AN/A(53,274)$2.2 
Forfeited(43,929) (27,171)
Units/shares outstanding at 12/31/21581,252 $17.5  $ 133,671 $5.1 
Units/shares fully vested at 12/31/21172,748 $  $ 47,907$2.0 
OG&EPerformance UnitsRestricted
Stock Units
Total Shareholder ReturnEarnings Per Share
(Dollars in millions)Number
of Units
Aggregate Intrinsic ValueNumber
of Units
Aggregate Intrinsic ValueNumber
of Shares
Aggregate Intrinsic Value
Units/shares outstanding at 12/31/20182,363 25,235 34,130 
Granted68,720 (A) 22,911 
Converted(75,693)(B)$1.7 (25,235)(B)$0.8  
VestedN/AN/A(12,461)$0.6 
Forfeited(14,132) (8,986)
Employee migration52 (C) (C)19 (C)
Units/shares outstanding at 12/31/21161,310 $4.8  $ 35,613 $1.4 
Units/shares fully vested at 12/31/2148,195 $  $ 11,241$0.5 
(A)For performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.
(B)These amounts represent performance units that vested at December 31, 2020 which were settled in February 2021.
(C)Due to certain employees transferring between OG&E and OGE Energy.
The following tables present a summary of the activity for the Registrants' non-vested performance units and restricted stock units for the year ended December 31, 2021. The table designated as "OGE Energy" below includes the OG&E standalone activity, as OGE Energy represents consolidated results.
OGE EnergyPerformance Units -Restricted
Stock Units
Total Shareholder Return
Number
of Units
Weighted-Average
Grant Date
Fair Value
Number
of Shares
Weighted-Average
Grant Date
Fair Value
Units/shares non-vested at 12/31/20375,272 $42.51 124,919 $42.69 
Granted249,909 (A)$38.14 89,197 $31.11 
Vested(172,748)$47.00 (53,274)$41.59 
Forfeited(43,929)$41.02 (27,171)$42.37 
Units/shares non-vested at 12/31/21408,504 $38.05 133,671 $35.64 
OG&EPerformance Units -Restricted
Stock Units
Total Shareholder Return
Number
of Units
Weighted-Average
Grant Date
Fair Value
Number
of Shares
Weighted-Average
Grant Date
Fair Value
Units/shares non-vested at 12/31/20106,670 $42.49 34,130 $42.67 
Granted68,720 (A)$38.14 22,911 $30.91 
Vested(48,195)$47.00 (12,461)$45.67 
Forfeited(14,132)$41.12 (8,986)$42.51 
Employee migration52 (B)$41.01 19 (B)$37.71 
Units/shares non-vested at 12/31/21113,115 $38.10 35,613 $35.52 
(A)For performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.
(B)Due to certain employees transferring between OG&E and OGE Energy.

Fair Value of Vested Performance Units and Restricted Stock Units

The following table presents a summary of the Registrants' fair value for vested performance units and restricted stock units.
OGE EnergyOG&E
Year Ended December 31 (In millions)
202120202019202120202019
Performance units:
Total shareholder return$8.1 $8.7 $9.3 $2.3 $2.8 $3.2 
Earnings per share$ $2.5 $5.2 $ $0.8 $0.9 
Restricted stock units$2.2 $0.1 $0.1 $0.5 $0.1 $— 
Unrecognized Compensation Cost

The following table presents a summary of the Registrants' unrecognized compensation cost for non-vested performance units and restricted stock units and the weighted-average periods over which the compensation cost is expected to be recognized.
OGE EnergyOG&E
December 31, 2021
Unrecognized Compensation Cost (In millions)
Weighted Average to be Recognized (In years)
Unrecognized Compensation Cost (In millions)
Weighted Average to be Recognized (In years)
Performance units - total shareholder return$7.5 1.71$2.0 1.72
Restricted stock units3.5 1.480.8 1.39
Total unrecognized compensation cost$11.0 $2.8