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Investment in Unconsolidated Affiliate and Related Party Transactions | 3 Months Ended
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Mar. 31, 2016
Schedule of Equity Method Investments [Line Items] |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Unconsolidated Affiliate The Company's investment in Enable is considered to be a variable interest entity because the owners of the equity at risk in this entity have disproportionate voting rights in relation to their obligations to absorb the entity's expected losses or to receive its expected residual returns. However, the Company is not considered the primary beneficiary of Enable since it does not have the power to direct the activities of Enable that are considered most significant to the economic performance of Enable. The Company accounts for its investment in Enable using the equity method of accounting. Under the equity method, the investment will be adjusted each period for contributions made, distributions received and the Company's share of the investee's comprehensive income adjusted for basis differences. The Company's maximum exposure to loss related to Enable is limited to the Company's equity investment in Enable as presented on the Company's Condensed Consolidated Balance Sheets at March 31, 2016. The Company evaluates its equity method investments for impairment when events or changes in circumstances indicate there is a loss in value of the investment that is other than a temporary decline. The Company considers distributions received from Enable, which do not exceed cumulative equity in earnings subsequent to the date of investment, to be a return on investment which are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. The Company considers distributions received from Enable in excess of cumulative equity in earnings subsequent to the date of investment to be a return of investment which are classified as investing activities in the Condensed Consolidated Statements of Cash Flows. Investment in Unconsolidated Affiliate and Related Party Transactions On March 14, 2013, the Company entered into a Master Formation Agreement with the ArcLight group and CenterPoint pursuant to which the Company, the ArcLight group and CenterPoint, agreed to form Enable to own and operate the midstream businesses of the Company and CenterPoint that was initially structured as a private limited partnership. This transaction closed on May 1, 2013. Pursuant to the Master Formation Agreement, the Company and the ArcLight group indirectly contributed 100 percent of the equity interests in Enogex LLC to Enable. The Company determined that its contribution of Enogex LLC to Enable met the requirements of being in substance real estate and was recorded at historical cost. In April 2014, Enable completed an initial public offering of 25.0 million common units resulting in Enable becoming a publicly traded Master Limited Partnership. At March 31, 2016, the Company owned 111.0 million common units, or 26.3 percent, of which 68.2 million units were subordinated. CenterPoint and the Company also own a 40 percent and 60 percent interest, respectively, in any incentive distribution rights to be held by the general partner of Enable following the initial public offering. Distributions received from Enable were $35.3 million and $34.3 million during the three months ended March 31, 2016 and 2015, respectively. Related Party Transactions Operating costs charged and related party transactions between the Company and its affiliate, Enable, are discussed below. The Company's interest in Enogex Holdings was deconsolidated on May 1, 2013. On May 1, 2013, the Company and Enable entered into a Services Agreement, Employee Transition Agreement, and other agreements whereby the Company agreed to provide certain support services to Enable such as accounting, legal, risk management and treasury functions for an initial term ending on April 30, 2016. As of December 31, 2015, Enable terminated all support services except certain information technology, payroll and benefits administration. Under these agreements, the Company charged operating costs to Enable of $1.3 million and $2.8 million for three months ended March 31, 2016 and 2015, respectively. The Company charges operating costs to OG&E and Enable based on several factors. Operating costs directly related to OG&E and Enable are assigned as such. Operating costs incurred for the benefit of OG&E and Enable are allocated either as overhead based primarily on labor costs or using the "Distrigas" method. Additionally, the Company agreed to provide seconded employees to Enable to support its operations for an initial term ending on December 31, 2014. In October 2014, CenterPoint, the Company and Enable agreed to continue the secondment to Enable for 192 employees that participate in the Company's defined benefit and retirement plans, beyond December 31, 2014. The Company billed Enable for reimbursement of $7.1 million and $10.0 million in the three months ended March 31, 2016 and 2015, respectively, under the Transitional Seconding Agreement for employment costs. The Company had accounts receivable from Enable of $2.9 million as of March 31, 2016 and $1.7 million as of December 31, 2015, for amounts billed for transitional services, including the cost of seconded employees. Related Party Transactions with Enable OG&E entered into a contract with Enable to provide gas transportation services effective May 1, 2014. 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, 2016, and 2015.
| Three Months Ended March 31,
(In millions) | 2016 | 2015
Operating Revenues: |  |
Electricity to power electric compression assets | $ | 2.3 |  | $ | 3.1 |
Cost of Sales: |  |
Natural gas transportation services | $ | 8.8 |  | $ | 8.8 |
Natural gas purchases/(sales) | 1.5 |  | 2.5 |
Summarized Financial Information of Enable Summarized unaudited financial information for 100 percent of Enable is presented below as of March 31, 2016 and December 31, 2015.
Balance Sheet | March 31, | December 31,
(In millions) | 2016 | 2015
Current assets | $ | 379 |  | $ | 381 |
Non-current assets | 10,870 |  | 10,857 |
Current liabilities | 279 |  | 615 |
Non-current liabilities | 3,123 |  | 3,092 |
Income Statement | Three Months Ended March 31,
(In millions) | 2016 | 2015
Operating revenues | $ | 509 |  | $ | 616 |
Cost of NGLs | 195 |  | 292 |
Operating income | 103 |  | 104 |
Net income | 86 |  | 91 |
The formation of Enable was considered a business combination, and CenterPoint was the acquirer of Enogex Holdings for accounting purposes. Under this method, the fair value of the consideration paid by CenterPoint for Enogex Holdings is allocated to the assets acquired and liabilities assumed on May 1, 2013 based on their fair value. Enogex Holdings' assets, liabilities and equity have accordingly been adjusted to estimated fair value as of May 1, 2013, resulting in an increase to Enable's equity of $2.2 billion. Due to the contribution of Enogex LLC to Enable meeting the requirements of being in substance real estate and the recording the initial investment at historical cost, the effects of the amortization and depreciation expense associated with the fair value adjustments on Enable's results of operations have been eliminated in the Company's recording of its equity in earnings of Enable. The Company recorded equity in earnings of unconsolidated affiliates of $28.3 million and $31.7 million for the three months ended March 31, 2016 and 2015, respectively. Equity in earnings of unconsolidated affiliates includes the Company's share of Enable earnings adjusted for the amortization of the basis difference of the Company's original investment in Enogex LLC and its underlying equity in net assets of Enable. The basis difference is the result of the initial contribution of Enogex LLC to Enable in May 2013, and subsequent issuances of equity by Enable, including the initial public offering in April 2014 and the issuance of common units for the acquisition of CenterPoint's 24.95 percent interest in Southeast Supply Header, LLC. The basis difference is being amortized over approximately 30 years, the average life of the assets to which the basis difference is attributed. Equity in earnings of unconsolidated affiliates is also adjusted for the elimination of the Enogex Holdings fair value adjustments, as described above. The difference between the Company's investment in Enable and its underlying equity in the net assets of Enable was $775.5 million as of March 31, 2016. The following table reconciles the Company's equity in earnings of its unconsolidated affiliates for the three months ended March 31, 2016 and 2015.
| Three Months Ended March 31,
(In millions) | 2016 | 2015
OGE's share of Enable Net Income | $ | 21.3 |  | $ | 23.8 |
Amortization of basis difference | 2.9 |  | 3.5 |
Elimination of Enogex Holdings fair value and other adjustments | 4.1 |  | 4.4 |
Equity in earnings of unconsolidated affiliates | $ | 28.3 |  | $ | 31.7 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
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- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
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