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v3.22.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Taxes [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense (benefit).
|  | OGE Energy |  |  | OG&E |
Year Ended December 31 (In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2022 |  |  | 2021 |  |  | 2020 |
Provision (benefit) for current income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 250.8 |  |  | $ | 16.4 |  |  | $ | 8.4 |  |  | $ | (141.2 | ) |  | $ | (9.0 | ) |  | $ | (3.8 | )
State |  |  | 28.8 |  |  |  | 1.7 |  |  |  | 0.5 |  |  |  | (0.9 | ) |  |  | 9.0 |  |  |  | (0.6 | )
Total provision (benefit) for current income taxes |  |  | 279.6 |  |  |  | 18.1 |  |  |  | 8.9 |  |  |  | (142.1 | ) |  |  | — |  |  |  | (4.4 | )
Provision (benefit) for deferred income taxes, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (110.8 | ) |  |  | 133.1 |  |  |  | (105.2 | ) |  |  | 219.9 |  |  |  | 58.3 |  |  |  | 45.7 |
State |  |  | (45.2 | ) |  |  | (10.0 | ) |  |  | (31.1 | ) |  |  | (1.4 | ) |  |  | (16.5 | ) |  |  | (6.6 | )
Total provision (benefit) for deferred income taxes, net |  |  | (156.0 | ) |  |  | 123.1 |  |  |  | (136.3 | ) |  |  | 218.5 |  |  |  | 41.8 |  |  |  | 39.1 |
Total income tax expense (benefit) |  | $ | 123.6 |  |  | $ | 141.2 |  |  | $ | (127.4 | ) |  | $ | 76.4 |  |  | $ | 41.8 |  |  | $ | 34.7 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the statutory tax rates to the effective income tax rate.
|  | OGE Energy |  |  | OG&E |
Year Ended December 31 |  | 2022 |  | 2021 |  | 2020 |  |  | 2022 |  | 2021 |  | 2020 |
Statutory federal tax rate |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | % |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit |  |  | (1.0 | ) |  | 0.9 |  |  | (1.4 | ) |  |  | (0.4 | ) |  | (1.4 | ) |  | (1.6 | )
Stock-based compensation |  |  | — |  |  | 0.1 |  |  | (0.3 | ) |  |  | — |  |  | — |  |  | — |
Executive compensation limitation |  |  | 0.1 |  |  | 0.1 |  |  | 0.2 |  |  |  | — |  |  | — |  |  | — |
Amortization of net unfunded deferred taxes |  |  | (3.2 | ) |  | (2.1 | ) |  | (4.4 | ) |  |  | (5.0 | ) |  | (4.6 | ) |  | (4.8 | )
Federal renewable energy credit (A) |  |  | — |  |  | (2.0 | ) |  | (5.0 | ) |  |  | — |  |  | (4.4 | ) |  | (5.4 | )
Remeasurement of state deferred taxes due to Energy Transfer merger (B) |  |  | — |  |  | (1.1 | ) |  | — |  |  |  | — |  |  | — |  |  | — |
Remeasurement of state deferred tax liabilities |  |  | (0.6 | ) |  | (0.6 | ) |  | 0.9 |  |  |  | — |  |  | — |  |  | — |
401(k) dividends |  |  | (0.2 | ) |  | (0.2 | ) |  | (0.4 | ) |  |  | — |  |  | — |  |  | — |
Impairment of OGE Energy's investment in Enable (C) |  |  | — |  |  | — |  |  | 31.6 |  |  |  | — |  |  | — |  |  | — |
Other |  |  | (0.4 | ) |  | — |  |  | 0.1 |  |  |  | (0.8 | ) |  | (0.2 | ) |  | 0.1 |
Effective income tax rate |  |  | 15.7 | % |  | 16.1 | % |  | 42.3 | % |  |  | 14.8 | % |  | 10.4 | % |  | 9.3 | %
(A) Represents credits primarily associated with the production from OG&E's wind farms. (B) In connection with the Enable and Energy Transfer merger, the state income tax rates were expected to decrease, as Energy Transfer operates in significantly more states with generally lower tax rates than the historic Enable operating area. (C) As discussed in Note 1, OGE Energy recorded a $780.0 million impairment on its investment in Enable in March 2020, which resulted in a tax benefit being recorded that caused a significant variance to the effective tax rate. This variance has been presented in the table as a single line item in order to facilitate comparability of other components of the effective tax rate.
Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of Deferred Income Taxes at December 31, 2022 and 2021.
|  | OGE Energy |  |  | OG&E |
December 31 (In millions) |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Deferred income tax liabilities, net: |  |  |  |  |  |  |  |  |  |  |  |
Accelerated depreciation and other property related differences |  | $ | 1,714.5 |  |  | $ | 1,677.3 |  |  | $ | 1,714.5 |  |  | $ | 1,677.3 |
Investment in Energy Transfer's equity securities |  |  | — |  |  |  | 363.5 |  |  |  | — |  |  |  | — |
Regulatory assets |  |  | 54.8 |  |  |  | 52.1 |  |  |  | 54.7 |  |  |  | 52.1 |
Pension Plan |  |  | 18.0 |  |  |  | 10.7 |  |  |  | 35.4 |  |  |  | 32.0 |
Other |  |  | (5.1 | ) |  |  | 7.4 |  |  |  | (5.8 | ) |  |  | (4.7 | )
Derivative instruments |  |  | 2.4 |  |  |  | 2.2 |  |  |  | — |  |  |  | — |
Bond redemption-unamortized costs |  |  | 1.6 |  |  |  | 1.8 |  |  |  | 1.6 |  |  |  | 1.8 |
Income taxes recoverable from customers, net |  |  | (216.7 | ) |  |  | (225.8 | ) |  |  | (216.7 | ) |  |  | (225.8 | )
State tax credits |  |  | (221.2 | ) |  |  | (221.2 | ) |  |  | (208.5 | ) |  |  | (205.9 | )
Federal tax credits |  |  | — |  |  |  | (208.4 | ) |  |  | — |  |  |  | (209.8 | )
Regulatory liabilities |  |  | (60.8 | ) |  |  | (72.0 | ) |  |  | (60.8 | ) |  |  | (72.0 | )
Asset retirement obligations |  |  | (18.8 | ) |  |  | (19.4 | ) |  |  | (18.8 | ) |  |  | (19.4 | )
Postretirement medical and life insurance benefits |  |  | (19.2 | ) |  |  | (19.2 | ) |  |  | (12.7 | ) |  |  | (13.0 | )
Accrued liabilities |  |  | (11.2 | ) |  |  | (9.5 | ) |  |  | (7.3 | ) |  |  | (7.3 | )
Deferred federal investment tax credits |  |  | (2.9 | ) |  |  | (3.1 | ) |  |  | (2.9 | ) |  |  | (3.1 | )
Net operating losses |  |  | — |  |  |  | (1.0 | ) |  |  | — |  |  |  | — |
Accrued vacation |  |  | (1.4 | ) |  |  | (1.5 | ) |  |  | (1.1 | ) |  |  | (1.2 | )
Uncollectible accounts |  |  | (0.5 | ) |  |  | (0.6 | ) |  |  | (0.5 | ) |  |  | (0.6 | )
Total deferred income tax liabilities, net |  | $ | 1,233.5 |  |  | $ | 1,333.3 |  |  | $ | 1,271.1 |  |  | $ | 1,000.4 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table presents a reconciliation of the Registrants' total gross unrecognized tax benefits as of the years ended December 31, 2022, 2021 and 2020.
(In millions) |  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at January 1 |  | $ | 22.4 |  |  | $ | 21.9 |  |  | $ | 20.7 |
Tax positions related to current year: |  |  |  |  |  |  |  |  |
Additions |  |  | — |  |  |  | 1.7 |  |  |  | 1.2 |
Reductions |  |  | (1.7 | ) |  |  | (1.2 | ) |  |  | — |
Balance at December 31 |  | $ | 20.7 |  |  | $ | 22.4 |  |  | $ | 21.9 |
Summary of Tax Credit Carryforwards | The following table presents a summary of these carry forwards.
|  | OGE Energy |  |  | OG&E |  |  |
(In millions) |  | Carry Forward Amount |  |  | Deferred Tax Asset |  |  | Carry Forward Amount |  |  | Deferred Tax Asset |  |  | Earliest Expiration Date
State tax credits: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oklahoma investment tax credits |  | $ | 242.8 |  |  | $ | 191.8 |  |  | $ | 226.7 |  |  | $ | 179.1 |  |  | N/A
Oklahoma capital investment board credits |  | $ | 12.8 |  |  | $ | 12.8 |  |  | $ | 12.8 |  |  | $ | 12.8 |  |  | N/A
Oklahoma zero emission tax credits |  | $ | 22.6 |  |  | $ | 16.6 |  |  | $ | 22.6 |  |  | $ | 16.6 |  |  | 2023
N/A - not applicable

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