Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions

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.

OGE Energy charged operating costs to OG&E of $37.0 million and $33.6 million during the three months ended March 31, 2019 and 2018, respectively.

As discussed in OG&E's 2018 Form 10-K, Enable provides gas transportation services to OG&E pursuant to an agreement that 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, 2019 and 2018.



	Three Months Ended
	March 31,
(In millions)	2019			2018
Operating revenues:
Electricity to power electric compression assets	$	3.8		$	4.0
Cost of sales:
Natural gas transportation services	$	14.8		$	8.8
Natural gas (sales) purchases	$	(1.0	)	$	0.3