Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Accounting Records

The accounting records of OG&E are maintained in accordance with the Uniform System of Accounts prescribed by the FERC and adopted by the OCC and the APSC. Additionally, OG&E, as a regulated utility, is subject to accounting principles for certain types of rate-regulated activities, which provide that certain incurred costs that would otherwise be charged to expense can be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense can be deferred as regulatory liabilities, based on the expected flowback to customers in future rates. Management's expected recovery of deferred costs and flowback of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment.

OG&E records certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refund in future rates.

The following table presents a summary of OG&E's regulatory assets and liabilities.

	September 30,		December 31,
(In millions)	2022		2021
REGULATORY ASSETS
Current:
Oklahoma fuel clause under recoveries	$	467.0	$	140.4
Arkansas fuel clause under recoveries	40.2		11.5
SPP cost tracker under recovery (A)	0.2		9.3
Oklahoma Energy Efficiency Rider under recoveries (A)	—		11.7
Other (A)	6.7		9.7
Total current regulatory assets	$	514.1	$	182.6
Non-current:
Oklahoma Winter Storm Uri costs	$	—	$	747.9
Oklahoma deferred storm expenses	203.3		172.8
Benefit obligations regulatory asset	99.1		109.2
Arkansas Winter Storm Uri costs	80.6		88.9
Pension tracker	47.6		42.9
Sooner Dry Scrubbers	18.3		18.9
Arkansas deferred pension expenses	11.8		12.1
Unamortized loss on reacquired debt	8.3		8.9
COVID-19 impacts	8.0		8.2
Frontier Plant deferred expenses	5.6		6.7
Smart Grid	0.3		3.9
Other	11.0		10.4
Total non-current regulatory assets	$	493.9	$	1,230.8
REGULATORY LIABILITIES
Current:
Oklahoma investment tax credit rider under credit (B)	$	5.3	$	—
Oklahoma Energy Efficiency Rider over recoveries (B)	5.2		—
Other (B)	1.5		2.5
Total current regulatory liabilities	$	12.0	$	2.5
Non-current:
Income taxes refundable to customers, net	$	904.2	$	930.7
Accrued removal obligations, net	272.5		296.8
Other	2.0		3.6
Total non-current regulatory liabilities	$	1,178.7	$	1,231.1

(A)Included in Other Current Assets in the condensed balance sheets.

(B)Included in Other Current Liabilities in the condensed balance sheets.

Management continuously monitors the future recoverability of regulatory assets. When in management's judgment future recovery becomes impaired, the amount of the regulatory asset is adjusted, as appropriate. If OG&E were required to discontinue the application of accounting principles for certain types of rate-regulated activities for some or all of its operations, it could result in writing off the related regulatory assets or liabilities, which could have significant financial effects.

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Organization

OGE Energy is a holding company with investments in energy and energy services providers offering physical delivery and related services for electricity in Oklahoma and western Arkansas. Prior to September 30, 2022, OGE Energy also held investments in Enable and Energy Transfer, which offered natural gas, crude oil and NGL services. OGE Energy reports these activities through two business segments: (i) electric utility and (ii) natural gas midstream operations. The accounts of OGE Energy and its wholly-owned subsidiaries, including OG&E, are included in OGE Energy's condensed consolidated financial statements. All intercompany transactions and balances are eliminated in such consolidation. For periods prior to the December 2, 2021 closing of the Enable and Energy Transfer merger, OGE Energy accounted for its investment in Enable as an equity method investment and reported it within OGE Energy's natural gas midstream operations segment. For the period of December 2, 2021 through September 30, 2022, OGE Energy accounted for its investment in the Energy Transfer units it acquired in the merger as an investment in equity securities, as further discussed below. As of September 30, 2022, OGE Energy has sold all of its Energy Transfer limited partner units, becoming primarily an electric utility.

Electric Utility Operations. OGE Energy's electric utility operations are conducted through OG&E, which generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. OG&E's rates are subject to regulation by the OCC, the APSC and the FERC. OG&E was incorporated in 1902 under the laws of the Oklahoma Territory and is a wholly-owned subsidiary of OGE Energy. OG&E is the largest electric utility in Oklahoma, and its franchised service territory includes Fort Smith, Arkansas and the surrounding communities. OG&E sold its retail natural gas business in 1928 and is no longer engaged in the natural gas distribution business.

Natural Gas Midstream Operations. OGE Energy's natural gas midstream operations segment includes OGE Energy's investment in Energy Transfer's equity securities acquired in the merger and legacy Enable seconded employee pension and postretirement costs. Prior to OGE Energy's sale of all Energy Transfer limited partner units, the investment in Energy Transfer's equity securities was held through wholly-owned subsidiaries and ultimately OGE Holdings.

Basis of Accounting [Text Block]

Basis of Presentation

The condensed financial statements included herein have been prepared by the Registrants, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, the Registrants believe that the disclosures are adequate to prevent the information presented from being misleading.

In the opinion of management, all adjustments necessary to fairly present the financial position of the Registrants at September 30, 2022 and December 31, 2021, the results of the Registrants' operations for the three and nine months ended September 30, 2022 and 2021 and the Registrants' cash flows for the nine months ended September 30, 2022 and 2021 have been included and are of a normal, recurring nature except as otherwise disclosed. Management also has evaluated the impact of events occurring after September 30, 2022 up to the date of issuance of these condensed financial statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation.

Due to seasonal fluctuations and other factors, the Registrants' operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any future period. The condensed financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto included in the Registrants' 2021 Form 10-K.

Schedule of Regulatory Assets and Liabilities

Management continuously monitors the future recoverability of regulatory assets. When in management's judgment future recovery becomes impaired, the amount of the regulatory asset is adjusted, as appropriate. If OG&E were required to discontinue the application of accounting principles for certain types of rate-regulated activities for some or all of its operations, it could result in writing off the related regulatory assets or liabilities, which could have significant financial effects.

Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the components of accumulated other comprehensive income (loss) attributable to OGE Energy during the nine months ended September 30, 2022 and 2021. All amounts below are presented net of tax.

(In millions)	Pension Plan and Restoration of Retirement Income Plan		Postretirement Benefit Plans		Total
Balance at December 31, 2021	$	(26.1)	$	1.3	$	(24.8)
Other comprehensive income (loss) before reclassifications	—		—		—
Amounts reclassified from accumulated other comprehensive income	1.0		(0.1)		0.9
Settlement cost	9.5		—		9.5
Balance at September 30, 2022	$	(15.6)	$	1.2	$	(14.4)

(In millions)	Pension Plan and Restoration of Retirement Income Plan		Postretirement Benefit Plans		Other Comprehensive Gain (Loss) from Unconsolidated Affiliates		Total
Balance at December 31, 2020	$	(34.1)	$	3.3	$	(1.3)	$	(32.1)
Other comprehensive income before reclassifications	—		—		0.6		0.6
Amounts reclassified from accumulated other comprehensive income (loss)	1.3		(0.9)		—		0.4
Settlement cost	4.8		—		—		4.8
Balance at September 30, 2021	$	(28.0)	$	2.4	$	(0.7)	$	(26.3)

The following table presents significant amounts reclassified out of accumulated other comprehensive income (loss) attributable to OGE Energy by the respective line items in net income during the three and nine months ended September 30, 2022 and 2021.

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)								Affected Line Item in OGE Energy's Statements of Income
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2022		2021		2022		2021
Amortization of Pension Plan and Restoration of Retirement Income Plan items:
Actuarial losses	$	(0.4)	$	(0.6)	$	(1.2)	$	(1.8)	(A)
Prior service cost	(0.1)		(0.1)		(0.2)		(0.1)		(A)
Settlement cost	(1.9)		(1.4)		(12.4)		(6.7)		(A)
	(2.4)		(2.1)		(13.8)		(8.6)		Income Before Taxes
	(0.6)		(0.5)		(3.3)		(2.5)		Income Tax Expense
	$	(1.8)	$	(1.6)	$	(10.5)	$	(6.1)	Net Income
Amortization of postretirement benefit plans items:
Prior service credit	$	0.2	$	0.4	$	0.2	$	1.3	(A)
Actuarial losses	—		—		—		(0.1)		(A)
	0.2		0.4		0.2		1.2		Income Before Taxes
	0.1		0.1		0.1		0.3		Income Tax Expense
	$	0.1	$	0.3	$	0.1	$	0.9	Net Income
Total reclassifications for the period, net of tax	$	(1.7)	$	(1.3)	$	(10.4)	$	(5.2)	Net Income

(A)These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 11 for additional information).

Allowance for Credit Losses

Allowance for Uncollectible Accounts Receivable

Customer balances are generally written off if not collected within six months after the final billing date. The allowance for uncollectible accounts receivable for OG&E is generally calculated by multiplying the last six months of electric revenue by the provision rate, which is based on a 12-month historical average of actual balances written off and is adjusted for current conditions and supportable forecasts as necessary. To the extent the historical collection rates, when incorporating forecasted conditions, are not representative of future collections, there could be an effect on the amount of uncollectible expense recognized, such as in response to COVID-19 impacts. Also, a portion of the uncollectible provision related to fuel within the Oklahoma jurisdiction is being recovered through the fuel adjustment clause. The allowance for uncollectible accounts receivable is a reduction to Accounts Receivable in the condensed balance sheets and is included in Other Operation and Maintenance Expense in the condensed statements of income.

New business customers are required to provide a security deposit in the form of cash, bond or irrevocable letter of credit that is refunded when the account is closed. New residential customers whose outside credit scores indicate an elevated risk are required to provide a security deposit that is refunded based on customer protection rules defined by the OCC and the APSC. The payment behavior of all existing customers is continuously monitored, and, if the payment behavior indicates sufficient risk within the meaning of the applicable utility regulation, customers will be required to provide a security deposit.

Reclassifications [Text Block]

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.