OG&E 2009 Annual Report Download - page 19

Less than
1 year 1-3 years 3-5 years More than
(In millions) Total (2010) (2011-2012) (2013-2014) 5 years
Base Transmission $ 150 $ 45 $ 40 $ 40 $ 25
Base Distribution 1,320 235 430 435 220
Base Generation 205 30 70 70 35
Other 150 25 50 50 25
Total Base Transmission, Distribution,
Generation and Other 1,825 335 590 595 305
Known and Committed Projects:
Transmission Projects:
Sunnyside-Hugo (345 kV) 120 30 90 --- ---
Sooner-Rose Hill (345 kV) 65 10 55 --- ---
Windspeed (345 kV) 25 25 --- --- ---
Balanced Portfolio 3E Projects 300 10 170 120 ---
Total Transmission Projects 510 75 315 120 ---
Other Projects:
Smart Grid Program (A) 230 40 120 60 10
System Hardening 35 20 15 --- ---
OU Spirit 10 10 --- --- ---
Other 30 20 10 --- ---
Total Other Projects 305 90 145 60 10
Total Known and Committed Projects 815 165 460 180 10
Total (B) $ 2,640 $ 500 $ 1,050 $ 775 $ 315
(A) These capital expenditures are contingent upon OCC approval of the Company’s Positive Energy Smart Grid program and are net
of the Smart Grid $130 million grant approved by the DOE.
(B) The Base Capital Expenditure Plan above excludes any environmental expenditures associated with Best Available Retrofit
Technology (“BART”) requirements due to the uncertainty regarding BART costs. As discussed in “Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations – Environmental Laws and Regulations,” pursuant to a proposed
regional haze agreement the Company has agreed to install low nitrogen oxide (“NOX”) burners and related equipment at the three
affected generating stations. Preliminary estimates indicate the cost will be approximately $100 million (plus or minus 30 percent).
For further information, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations –
Environmental Laws and Regulations.”
Additional capital expenditures beyond those identified in the table above, including incremental growth opportunities in
transmission assets and wind generation assets, will be evaluated based upon their impact upon achieving the Company’s financial
objectives.
Pension and Postretirement Benefit Plans
During each of 2009 and 2008, OGE Energy made contributions to its pension plan of approximately $50.0 million to help
ensure that the pension plan maintains an adequate funded status, of which approximately $47.0 million in each of 2009 and 2008 was
the Company’s portion. During 2010, OGE Energy may contribute up to $50.0 million to its pension plan, of which approximately
$47.0 million is expected to be the Company’s portion. See “Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations – Liquidity and Capital Requirements” for a discussion of OGE Energy’s pension and postretirement
benefit plans.
Future Sources of Financing
Management expects that cash generated from operations, proceeds from the issuance of long and short-term debt and funds
received from OGE Energy (from proceeds from the sales of its common stock to the public through OGE Energy’s Automatic
Dividend Reinvestment and Stock Purchase Plan or other offerings) will be adequate over the next three years to meet anticipated cash
needs. The Company utilizes short-term borrowings (through a combination of bank borrowings, commercial paper and borrowings
from OGE Energy) to satisfy temporary working capital needs and as an interim source of financing capital expenditures until
permanent financing is arranged.
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