Related-Party Transactions Related-Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

OGE Energy charged operating costs to OG&E of $149.8 million, $140.9 million and $134.4 million in 2019, 2018 and 2017, 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.

In 2019, no dividends were declared from OG&E to OGE Energy, compared to $185.0 million and $105.0 million in 2018 and 2017, respectively.

Enable provides gas transportation services to OG&E pursuant to an agreement, which expires in May 2024, 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. Further, an additional gas transportation services contract with Enable became effective in December 2018 related to the project to convert Muskogee Units 4 and 5 from coal to natural gas. The following table summarizes related party transactions between OG&E and Enable during the years ended December 31, 2019, 2018 and 2017.


	Year Ended December 31,
(In millions)	2019		2018		2017
Operating revenues:
Electricity to power electric compression assets	$	15.9	$	16.3	$	14.0
Cost of sales:
Natural gas transportation services	$	41.2	$	37.9	$	35.0

Natural gas (sales) purchases	$	(6.0)	$	(3.2)	$	(2.1)