Related Party Transactions

9 Months Ended

Sep. 30, 2018

Related Party Transactions

OGE Energy charged operating costs to OG&E of $35.1 million and $30.2 million during the three months ended September 30, 2018 and 2017, respectively, and $102.6 million and $97.9 million during the nine months ended September 30, 2018 and 2017, respectively. OGE Energy charges operating costs to OG&E based on several factors, and 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, which is a three-factor formula that uses an equal weighting of payroll, net operating revenues and gross property, plant and equipment.

During the nine months ended September 30, 2018, OG&E declared $185.0 million dividends to OGE Energy as compared to $105.0 million during the same period in 2017.

Enable provides gas transportation services to OG&E pursuant to an agreement that expires in April 2019, if either party does not provide notice of termination to the other party at least 180 days prior to the expiration date in April 2019. In October 2018, OG&E and Enable agreed to waive the 180 days written notice and allow a 30 day extension so that the parties can negotiate the terms of a new agreement. 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 and nine months ended September 30, 2018 and 2017.



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2018		2017		2018		2017
Operating revenues:
Electricity to power electric compression assets	$	4.7	$	4.5	$	12.2	$	10.0
Cost of sales:
Natural gas transportation services	$	8.8	$	8.8	$	26.3	$	26.3
Natural gas purchases (sales)	$	0.1	$	0.4	$	2.6	$	(0.4	)