Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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

The items comprising income tax expense are as follows:



Year ended December 31 (In millions)	2013			2012			2011
Provision (Benefit) for Current Income Taxes
Federal	$	(3.2	)	$	(9.0	)	$	23.4
State	0.6			0.3			(0.5		)
Total Provision (Benefit) for Current Income Taxes	(2.6		)	(8.7		)	22.9
Provision for Deferred Income Taxes, net
Federal	106.4			111.4			98.0
State	11.7			(5.9		)	0.3
Total Provision for Deferred Income Taxes, net	118.1			105.5			98.3
Deferred Federal Investment Tax Credits, net	(2.0		)	(2.2		)	(3.3		)
Total Income Tax Expense	$	113.5		$	94.6		$	117.9

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

The following schedule reconciles the statutory Federal tax rate to the effective income tax rate:



Year ended December 31	2013		2012		2011
Statutory Federal tax rate	35.0	%	35.0	%	35.0	%
Amortization of net unfunded deferred taxes	0.8		1.0		0.9
Medicare Part D subsidy	—		—		0.4
Federal investment tax credits, net	(0.5	)	(0.6	)	(0.9	)
State income taxes, net of Federal income tax benefit	—		(0.7	)	0.1
Federal renewable energy credit (A)	(9.2	)	(9.4	)	(4.4	)
Uncertain tax positions	2.0		—		—
Other	(0.2	)	(0.1	)	(0.2	)
Effective income tax rate	27.9	%	25.2	%	30.9	%


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

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

The deferred tax provisions are recognized as costs in the ratemaking process by the commissions having jurisdiction over the rates charged by OG&E. The components of Deferred Income Taxes at December 31, 2013 and 2012, respectively, were as follows:



December 31 (In millions)	2013			2012
Current Deferred Income Tax Assets
Net operating losses	$	168.7		$	113.8
Accrued liabilities	9.0			14.0
Federal tax credits	8.0			6.0
Accrued vacation	2.8			3.1
Uncollectible accounts	0.7			1.0
Derivative instruments	—			0.8
Total Current Deferred Income Tax Assets	$	189.2		$	138.7

Non-Current Deferred Income Tax Liabilities
Accelerated depreciation and other property related differences	$	1,747.0		$	1,648.5
OG&E pension plan	84.7			102.2
Regulatory asset	26.0			18.8
Income taxes refundable to customers, net	21.9			21.2
Bond redemption-unamortized costs	3.6			4.0
Total Non-Current Deferred Income Tax Liabilities	1,883.2			1,794.7
Non-Current Deferred Income Tax Assets
Federal tax credits	(101.9		)	(69.5		)
State tax credits	(86.1		)	(78.1		)
Regulatory liabilities	(61.3		)	(71.4		)
Postretirement medical and life insurance benefits	(45.2		)	(42.1		)
Asset retirement obligations	(20.8		)	—
Net operating losses	(17.6		)	(150.0		)
Deferred Federal investment tax credits	(0.7		)	(1.5		)
Other	(4.4		)	(4.3		)
Total Non-Current Deferred Income Tax Assets	(338.0		)	(416.9		)
Non-Current Deferred Income Tax Liabilities, net	$	1,545.2		$	1,377.8

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

Following is a reconciliation of the OG&E’s total gross unrecognized tax benefits as of the years ended December 31, 2013, 2012, and 2011.



(Millions)	2013		2012		2011
Balance at January 1	$	—	$	—	$	—
Tax positions related to current year:
Additions	2.7		—		—
Tax positions related to prior years:
Additions	5.1		—		—
Balance at December 31	$	7.8	$	—	$	—

Summary of Tax Credit Carryforwards [Table Text Block]

Other

OG&E sustained Federal and state tax operating losses through 2012 caused primarily by bonus depreciation and other book verses tax temporary differences. As a result, OG&E had accrued Federal and state income tax benefits carrying into 2013. As OG&E can no longer carry these losses back to prior periods, these losses are being carried forward for utilization in future years. In addition to the operating losses, OG&E was unable to utilize the various tax credits that were generating during these years. These tax losses and credits are being carried as deferred tax assets and will be utilized in future periods. Under current law, OG&E anticipates future taxable income will be sufficient to utilize all of the losses and credits before they begin to expire, accordingly no valuation allowance is considered necessary. The following table summarizes these carry forwards:



(In millions)	Carry Forward Amount		Deferred Tax Asset		Earliest Expiration Date
Net operating losses
State operating loss	$	656.3	$	24.2	2030
Federal operating loss	463.1		162.1		2030
Federal tax credits	109.9		109.9		2029
State tax credits
Oklahoma investment tax credits	96.3		62.6		N/A
Oklahoma capital investment board credits	7.3		7.3		N/A
Oklahoma zero emission tax credits	24.1		16.2		2020