Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions

OGE Energy charged operating costs to OG&E of $34.6 million and $31.9 million during the three months ended March 31, 2017 and 2016, respectively. OGE Energy charges operating costs to OG&E based on several factors. Operating costs directly related to OG&E are assigned as such. Operating costs incurred for the benefit of OG&E are allocated either as overhead based primarily on labor costs or using the "Distrigas" method.

Enable provides gas transportation services to OG&E pursuant to an agreement that expires in April 2019. This transportation agreement grants Enable the responsibility of delivering natural gas to OG&E’s generating facilities and performing an imbalance service. With this imbalance service, in accordance with the cash-out provision of the contract, OG&E purchases gas from Enable when Enable’s deliveries exceed OG&E’s pipeline receipts. Enable purchases gas from OG&E when OG&E’s pipeline receipts exceed Enable’s deliveries. The following table summarizes related party transactions between OG&E and Enable during the three months ended March 31, 2017 and 2016.



	Three Months Ended
	March 31,
(In millions)	2017			2016
Operating Revenues:
Electricity to power electric compression assets	$	2.2		$	2.3
Cost of Sales:
Natural gas transportation services	$	8.8		$	8.8
Natural gas purchases/(sales)	(0.4		)	1.5

During the three months ended March 31, 2017, OG&E declared no dividends to OGE Energy as compared to $30.0 million during the same period in 2016.