2.2.0.25falsefalse006110 - Disclosure - Rate Matters and Regulationtruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011
USD ($)
$c20110101to20110331http://www.sec.gov/CIK0000074145duration2011-01-01T00:00:002011-03-31T00:00:00U001Standardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2true0ogec_RateMattersAndRegulationAbstractogecfalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0ogec_RateMattersAndRegulationTextBlockogecfalsenadurationDescribes all of the specific events that have or may impact rates and amortization of regulatory assets and liabilities (for...falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">11.        Rate Matters and Regulation</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">Except as set forth below, the circumstances set forth in Note 13 to the Company's Financial Statements included in the Company's 2010 Form 10-K appropriately represent, in all material respects, the current status of any regulatory matters.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Completed Regulatory Matter</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">SPP Cost Tracker</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">On October 7, 2010, the Company filed an application with the OCC seeking recovery of the Oklahoma jurisdictional portion of (i) costs associated with transmission upgrades and facilities that have been approved by the SPP in its regional planning processes and constructed by other non-Company transmission owners throughout the SPP that have been allocated to the Company through the FERC-approved transmission rates and (ii) SPP administrative fees. The Company requested authorization to implement a cost tracker in order to recover from its retail customers the third-party project costs discussed above and to collect its administrative SPP cost assessment levied under Schedule 1A of the SPP open access transmission tariff, which is currently recovered in base rates.  The Company also requested authorization to establish a regulatory asset effective January 1, 2011 in order to give the Company the opportunity to recover such costs that will be paid but not recovered until the cost tracker is made effective. On February 8, 2011, all parties signed a settlement agreement in this matter which would allow the Company to recover the costs discussed in (i) above through a recovery rider effective January 1, 2011. The Company anticipates recovering $1.8 million of incremental revenues in 2011 through the rider. Rather than including the costs of the SPP administrative fee assessment in the recovery rider, the stipulating parties agreed to allow the Company to include the projected 2012 level of the SPP administrative fee assessment in its anticipated Oklahoma rate case to be filed in the summer of 2011. The settlement agreement also stated that in the Company's 2011 Oklahoma general rate case filing, the Company would propose that recovery in base rates for the costs of transmission projects it constructs and owns and that are authorized by the SPP in its regional planning processes should be limited to the Oklahoma retail jurisdictional share of the costs for such projects allocated to the Company by the SPP.  On March 28, 2011, the OCC issued an order in this matter approving the settlement agreement.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Pending Regulatory Matters</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">2010 Arkansas Rate Case Filing</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">On September 28, 2010, the Company filed a rate case with the APSC requesting a rate increase of $17.7 million, to recover the cost of significant electric system expansions and upgrades, including high-voltage transmission lines and wind energy, that have been completed since the last rate filing in August 2008, as well as rising operating costs. The Company </font><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">also sought recovery, through a rider, of the Arkansas jurisdictional portion of (i) costs associated with transmission upgrades and facilities that have been approved by the SPP in its regional planning processes and constructed by other non-Company transmission owners throughout the SPP that have been allocated to the Company through the FERC-approved transmission rates and (ii) SPP administrative fees.  On March 15, 2011, the APSC Staff filed its recommendation, which included a $4.8 million rate increase and approval of the SPP rider for third-party transmission charges and SPP administrative fees.  The Company filed its rebuttal testimony on April 5, 2011.  On April 26, 2011, the APSC Staff filed surrebuttal testimony, which included support for an $8.8 million rate increase and recommended approval of an SPP rider for recovery of third-party transmission charges and SPP administrative fees of $0.8 million.  <font style="display: inline; font-family: Times New Roman; font-size: 12pt;">The Arkansas office of the Attorney General and other parties to the proceeding have not agreed to the $9.6 million rate increase recommended by the APSC Staff.  </font>A hearing in this matter is scheduled for May 24, 2011.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Review of the Company's Fuel Adjustment Clause for Calendar Year 2009</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">On October 29, 2010, the OCC Staff filed an application for a public hearing to review and monitor the Company's application of the 2009 fuel adjustment clause.  On December 28, 2010, the Company responded by filing the necessary information and documents to satisfy the OCC's minimum filing requirement rules. An intervenor representing a group of the Company's industrial customers filed testimony on March 11, 2011 seeking a $15.5 million refund related to (i) a purported failure by the Company to maximize the use of its coal-fired power plants and (ii) an inappropriate extension of the existing natural gas supply agreement between the Company and Enogex.  The Company filed rebuttal testimony on April 4, 2011 in opposition to the claims of the intervenor.  A hearing in this matter is scheduled for June 23, 2011.</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Smart Grid Project</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">As previously reported in the Company's 2010 Form 10-K, on December 17, 2010, the Company filed an application with the APSC requesting pre-approval for system-wide deployment of smart grid technology and a recovery rider, including a credit for the Smart Grid grant. A hearing in this matter is scheduled for June 27, 2011. The Company expects to receive a decision from the APSC during the third quarter of 2011.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">FERC Transmission Rate Incentive Filing</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">On February 18, 2011, the Company submitted to the FERC a request seeking limited transmission rate incentives for five transmission projects.  This February 18, 2011 request is in addition to the October 12, 2010 request described in the Company's 2010 Form 10-K.  The Company requested recovery of 100 percent of all prudently incurred construction work in progress in rate base for five 345 kV EHV transmission projects to be constructed and owned by the Company within the SPP's region.  The Company also requested to recover 100 percent of all prudently incurred development and construction costs if the transmission projects are abandoned or cancelled, in whole or in part, for reasons beyond the Company's control. On April 19, 2011, the FERC granted these incentives for the <font style="display: inline; font-family: Times New Roman; font-size: 12pt;">Sooner-Rose Hill, Sunnyside-Hugo and Balanced Portfolio 3E </font>transmission projects discussed in Note 13 of the Company's 2010 Form 10-K.</font></div><div align="justify" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Pension Tracker Modification Filing</font></div><div style="text-indent: 0pt; display: block;"> </div><div style="text-align: justify; text-indent: 36pt; display: block;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;"> On February 22, 2011, the Company filed an application with the OCC requesting that the Company's pension tracker be modified to include the difference between the level of retiree medical costs authorized in the Company's last rate case and the current level of these expenses as a regulatory liability, effective January 1, 2011.  A procedural schedule has not been established in this matter.</font></div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"> </div><div align="left" style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="font-style: italic; display: inline; font-family: Times New Roman; font-size: 12pt; font-weight: bold;">Demand and Energy Efficiency Program Filing</font></div><div style="text-indent: 0pt; display: block;"><br /></div><div align="justify" style="text-indent: 40pt; display: block; margin-left: 0pt; margin-right: 0pt;"><font style="display: inline; font-family: Times New Roman; font-size: 12pt;">To build on the success of its earlier programs and further promote energy efficiency and conservation for each class of Company customers, on March 15, 2011, the Company filed an application with the APSC seeking approval of several programs, ranging from residential weatherization to commercial lighting.  In seeking approval of these programs, the Company also seeks recovery of the program and related costs through a rider that would be added to customers' electric bills.  In Arkansas, the Company's program is expected to cost $7 million over a three-year period and is expected to increase the average residential electric bill by $1.47 per month.  A hearing in this matter is scheduled for May 16, 2011.</font></div></div>11.        Rate Matters and Regulation Except as set forth below, the circumstances set forth in Note 13 to thefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescribes all of the specific events that have or may impact rates and amortization of regulatory assets and liabilities (for example, pending or recently concluded regulatory proceedings). 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