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Investment in Unconsolidated Affiliate and Related Party Transactions | 12 Months Ended
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Dec. 31, 2018
Schedule of Equity Method Investments [Line Items] |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Unconsolidated Affiliate and Related Party Transactions In 2013, the Company, CenterPoint and the ArcLight group formed Enable as a private limited partnership, and 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 recorded the contribution at historical cost. 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 was allocated to the assets acquired and liabilities assumed based on their fair value. Enogex Holdings' assets, liabilities and equity were accordingly adjusted to estimated fair value, resulting in an increase to Enable's equity of $2.2 billion. Since the contribution of Enogex LLC to Enable was recorded 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. At December 31, 2018, the Company owned 111.0 million common units, or 25.6 percent, of Enable's outstanding common units. On December 31, 2018, Enable's common unit price closed at $13.53. The Company recorded equity in earnings of unconsolidated affiliates of $152.8 million, $131.2 million and $101.8 million for the years ended December 31, 2018, 2017 and 2016, 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 the net assets of Enable and is also adjusted for the elimination of the Enogex Holdings fair value adjustments. The basis difference is being amortized, beginning in 2013, 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. Summarized unaudited financial information for 100 percent of Enable is presented below as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016.
Balance Sheet | December 31,
(In millions) | 2018 | 2017
Current assets | $ | 449 |  | $ | 416 |
Non-current assets | $ | 11,995 |  | $ | 11,177 |
Current liabilities | $ | 1,615 |  | $ | 1,279 |
Non-current liabilities | $ | 3,211 |  | $ | 2,660 |
Income Statement | Year Ended December 31,
(In millions) | 2018 | 2017 | 2016
Total revenues | $ | 3,431 |  | $ | 2,803 |  | $ | 2,272 |
Cost of natural gas and NGLs | $ | 1,819 |  | $ | 1,381 |  | $ | 1,017 |
Operating income | $ | 648 |  | $ | 528 |  | $ | 385 |
Net income | $ | 485 |  | $ | 400 |  | $ | 290 |
The following table reconciles OGE Energy's equity in earnings of its unconsolidated affiliates for the years ended December 31, 2018, 2017 and 2016, respectively.
| Year Ended December 31,
(In millions) | 2018 | 2017 | 2016
Enable net income | $ | 485.3 |  | $ | 400.3 |  | $ | 289.5 |
Distributions senior to limited partners | — |  | — |  | (9.1 | )
Differences due to timing of OGE Energy and Enable accounting close | — |  | — |  | (12.2 | )
Enable net income used to calculate OGE Energy's equity in earnings | $ | 485.3 |  | $ | 400.3 |  | $ | 268.2 |
OGE Energy's percent ownership at period end | 25.6 | % | 25.7 | % | 25.7 | %
OGE Energy's portion of Enable net income | $ | 124.4 |  | $ | 102.7 |  | $ | 70.7 |
Impairments recognized by Enable associated with OGE Energy's basis difference | — |  | — |  | 2.6 |
OGE Energy's share of Enable net income | 124.4 |  | 102.7 |  | 73.3 |
Amortization of basis difference | 11.2 |  | 11.3 |  | 11.6 |
Elimination of Enable fair value step up | 17.2 |  | 17.2 |  | 16.9 |
Equity in earnings of unconsolidated affiliates | $ | 152.8 |  | $ | 131.2 |  | $ | 101.8 |
The difference between OGE Energy's investment in Enable and its underlying equity in the net assets of Enable was $680.3 million as of December 31, 2018. The following table reconciles the basis difference in Enable from December 31, 2017 to December 31, 2018.
(In millions) |
Basis difference at December 31, 2017 | $ | 714.2 |
Change in Enable basis difference | (5.5 | )
Amortization of basis difference | (11.2 | )
Elimination of Enable fair value step up | (17.2 | )
Basis difference at December 31, 2018 | $ | 680.3 |
On February 8, 2019, Enable announced a quarterly dividend distribution of $0.31800 per unit on its outstanding common units, which is unchanged from the previous quarter. If cash distributions to Enable's unitholders exceed $0.330625 per unit in any quarter, the general partner will receive increasing percentages, up to 50 percent, of the cash Enable distributes in excess of that amount. The Company is entitled to 60 percent of those "incentive distributions." In certain circumstances, the general partner has the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable's cash distributions at the time of the exercise of this reset election. Distributions received from Enable were $141.2 million, $141.2 million and $141.2 million during the years ended December 31, 2018, 2017 and 2016, respectively. Related Party Transactions - the Company and Enable The Company and Enable are currently parties to several agreements whereby the Company provides specified support services to Enable, such as certain information technology, payroll and benefits administration. Under these agreements, the Company charged operating costs to Enable of $0.6 million, $2.3 million and $4.7 million for December 31, 2018, 2017 and 2016, 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. Pursuant to a seconding agreement, the Company provides seconded employees to Enable to support Enable's operations. As of December 31, 2018, 90 employees that participate in the Company's defined benefit and retirement plans are seconded to Enable. The Company billed Enable for reimbursement of $27.5 million, $29.5 million and $28.7 million in 2018, 2017 and 2016, respectively, under the Transitional Seconding Agreement for employment costs. If the seconding agreement was terminated, and those employees were no longer employed by the Company, and lump sum payments were made to those employees, the Company would recognize a settlement or curtailment of the pension/retiree health care charges, which would increase expense at the Company by $20.4 million. Settlement and curtailment charges associated with the Enable seconded employees are not reimbursable to the Company by Enable. The seconding agreement can be terminated by mutual agreement of the Company and Enable or solely by the Company upon 120 day notice. The Company had accounts receivable from Enable for amounts billed for transitional services, including the cost of seconded employees, of $1.7 million and $2.0 million as of December 31, 2018 and 2017, respectively, which are included in Accounts Receivable on the Company's Consolidated Balance Sheets. Related Party Transactions - OG&E and Enable Enable provides gas transportation services to OG&E pursuant to an agreement that expires in April 2019. In October 2018, OG&E and Enable agreed to a new contract that will be effective as of April 2019 for a five year period ending May 2024. 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. In 2016, OG&E entered into an additional gas transportation services contract with Enable that 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, 2018, 2017 and 2016.
| Year Ended December 31,
(In millions) | 2018 | 2017 | 2016
Operating revenues: |  |  |
Electricity to power electric compression assets | $ | 16.3 |  | $ | 14.0 |  | $ | 11.5 |
Cost of sales: |  |  |
Natural gas transportation services | $ | 37.9 |  | $ | 35.0 |  | $ | 35.0 |
Natural gas (sales) purchases | $ | (3.2 | ) | $ | (2.1 | ) | $ | 11.2 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + 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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