Short-Term Debt and Credit Facility

12 Months Ended

Dec. 31, 2014

Short-term Debt [Abstract]

Short-Term Debt and Credit Facility

Short-Term Debt and Credit Facility

AtDecember 31, 2014, there were$215.6 millionin advances to OGE Energy as compared to$87.2 millionin outstanding advances from OGE Energy in 2013. OG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to $400 million of OGE Energy's revolving credit amount.  Effective July 29, 2013, OG&E extended the termination date of this agreement to December 13, 2017.   At December 31, 2014, there were no intercompany borrowings under this agreement.  OG&E has a $400 million unsecured five-year revolving credit facility which is available 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. At December 31, 2014, there was $2.0 million supporting letters of credit at a weighted-average interest rate of0.95 percent.  There were no outstanding borrowings under this revolving credit agreement and no outstanding commercial paper borrowings at December 31, 2014. 

In December 2011,OG&E entered into an unsecured five-year revolving credit agreement for $400.0 million. This credit facility containedan option, which could be exercised up to two times, to extend the term for an additional year. In the third quarter of 2013,OG&E utilized one of these one-year extensions, and received consent from all of the lenders, to extend the maturity of its credit agreementfrom December 13, 2016 to December 13, 2017.In the second quarter of 2014,OG&E utilized its second extension to extend the maturity of its credit facility from December 13, 2017 to December 13, 2018. As ofDecember 31, 2014, the commitment of a single existing lender with respect to approximately$8.7 million of OG&E's credit facility, however, was not extended and, unless the non-extending lender is replaced in accordance with the terms of the credit facility, the commitment will expire December 13, 2017.

OGE Energy's and OG&E'sability 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 rating 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 downgradeof OGE Energy or OG&Ecould also lead to higher long-term borrowing costs and, if below investment grade, would requireOG&Eto post 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, 2015 and ending December 31, 2016.