Related Party Transactions

9 Months Ended

Sep. 30, 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 $35.1 million during the three months ended September 30, 2019 and 2018, respectively, and $109.9 million and $102.6 million during the nine months ended September 30, 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 and nine months ended September 30, 2019 and 2018.



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In millions)	2019			2018		2019			2018
Operating revenues:
Electricity to power electric compression assets	$	4.5		$	4.7	$	12.1		$	12.2
Cost of sales:
Natural gas transportation services	$	9.4		$	8.8	$	33.5		$	26.3
Natural gas (sales) purchases	$	(1.1	)	$	0.1	$	(5.4	)	$	2.6