Short-Term Debt and Credit Facility

6 Months Ended

Jun. 30, 2013

Short-term Debt [Abstract]

Short-Term Debt and Credit Facility

Short-Term Debt and CreditFacility

AtJune 30, 2013, there were$39.0 millionin net outstanding advances from OGE Energy as compared to$90.3 millionin net outstanding advances to OGE Energy atDecember 31, 2012. OG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to$400 millionof OGE Energy's revolving credit amount.Effective July 29, 2013, OG&E extended the termination date of this agreement toDecember 13, 2017.  AtJune 30, 2013, there werenointercompany borrowings under this agreement.OG&E has a$400 millionrevolving credit facility which isavailable to back up OG&E's commercial paper borrowings and to provide revolving credit borrowings.  This bank facility can also be used as a letter of credit facility.AtJune 30, 2013, there was$2.1 millionsupporting letters of credit at a weighted-average interest rate of0.53 percent. AtJune 30, 2013, OG&E had less than$0.1 millionin cash and cash equivalents.

In December 2011,OG&E entered intoanunsecured five-year revolving credit agreementfor$400 million. Thiscredit facilitycontainsan option, which may be exercised up to two times, to extend the term for an additional year, subject to consent of a specified percentage of the lenders. Effective July 29, 2013,OG&E utilized one of these one-year extensions, and received consent from all of the lenders, to extend the maturity ofitscredit agreementto December 13, 2017.

OGE Energy's and OG&E's ability to access the commercial paper market could be adversely impacted by a credit ratings downgrade or major market disruptions.Pricing grids associated withOGE Energy's and OG&E'screditfacilitiescould cause annual fees and borrowing rates to increase if an adverse ratings impact occurs.The impact of any future downgrade could include an increase in the costs ofOGE Energy's and OG&E'sshort-term borrowings, but a reduction inOGE Energy's and OG&E'scredit ratings would not result in any defaults or accelerations.Any future downgradeOG&Ecould also lead to higher long-term borrowing costs and, if below investment grade, would requireOG&Eto post cash collateral or letters of credit.

OG&E must obtain regulatory approval from the FERC in order to borrow on a short-term basis.OG&E has the necessary regulatory approvals to incur up to$800 millionin short-term borrowings at any one time for a two-year period beginning January 1, 2013 and ending December 31, 2014.