Short-Term Debt and Credit Facility

3 Months Ended

Mar. 31, 2016

Short-term Debt [Abstract]

Short-Term Debt and Credit Facility

Short-Term Debt and Credit Facility

AtMarch 31, 2016 and December 31, 2015, there were$72.3 millionand$333.6 millionin advances to OGE Energy. OG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to $400.0 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 March 31, 2016, there were no intercompany borrowings under this agreement.  OG&E has a $400.0 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 March 31, 2016, there was $1.7 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 March 31, 2016. 

As of March 31, 2016, the commitment of $8.7 million of OG&E's credit facility 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$800.0 millionin short-term borrowings at any one time for a two-year period beginning January 1, 2015 and ending December 31, 2016.