OG&E 2012 Annual Report Download - page 54

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Enogex Cox City Plant Fire
On December 8, 2010, a fire occurred at Enogex’s Cox City natural
gas processing plant destroying major components of one of the four
processing trains, representing 120 MMcf/d of the total 180 MMcf/d
of capacity, at that facility. The damaged train was replaced and the
facility was returned to full service in September 2011. The total cost
necessary to return the facility back to full service was $29.6 million.
In the fourth quarter of 2011, Enogex received a partial insurance reim-
bursement of $7.4 million and recognized a gain of $3.0 million on
insurance proceeds. In March 2012, Enogex reached a settlement
agreement with its insurers in this matter. As a result of the settlement
agreement, Enogex received additional reimbursements of $7.6 million
and recognized a gain of $7.5 million on insurance proceeds in 2012.
In a period in which the Company has an event that results in the
recognition of a material gain or loss on an event that is covered by
insurance proceeds, the Company records an impairment loss for the
book value of the damaged asset and an offsetting gain for insurance
proceeds if recovery of the loss is considered probable. To the extent
proceeds from an insurance settlement exceed recognized losses, the
Company records a gain on insurance proceeds in earnings as the
receipts of proceeds are determined to be probable.
OGE Energy Consolidated
The Company’s property, plant and equipment and related accumulated
depreciation are divided into the following major classes at:
Total Property, Net Property,
Plant and Accumulated Plant and
(In millions, December 31) Equipment Depreciation Equipment
2012
OGE Energy (holding company)
Property, plant and equipment $÷÷«142.1 $÷«103.2 $÷÷«38.9
OGE Energy property,
plant and equipment 142.1 103.2 38.9
OG&E
Distribution assets 3,222.7 969.6 2,253.1
Electric generation assets(A) 3,446.6 1,242.4 2,204.2
Transmission assets(B) 1.712.6 359.8 1,352.8
Intangible plant 50.2 25.0 25.2
Other property and equipment 317.6 108.8 208.8
OG&E property,
plant and equipment 8,749.7 2,705.6 6,044.1
Enogex
Natural gas transportation
and storage assets 988.6 292.7 695.9
Natural gas gathering
and processing assets 2,011.5 445.6 1,565.9
Enogex property,
plant and equipment 3,000.1 738.3 2,261.8
Total property,
plant and equipment $11,891.9 $3,547.1 $8,344.8
(A) This amount includes a plant acquisition adjustment of $148.3 million and accumulated
amortization of $23.3 million.
(B) This amount includes a plant acquisition adjustment of $3.3 million and accumulated
amortization of $0.3 million.
Total Property, Net Property,
Plant and Accumulated Plant and
(In millions, December 31) Equipment Depreciation Equipment
2011
OGE Energy (holding company)
Property, plant and equipment $÷÷«124.6 $÷÷«90.6 $÷÷«34.0
OGE Energy property,
plant and equipment 124.6 90.6 34.0
OG&E
Distribution assets 2,981.3 920.3 2,061.0
Electric generation assets(A) 3,360.6 1,215.8 2,144.8
Transmission assets(B) 1,464.2 339.6 1,124.6
Intangible plant 43.2 20.3 22.9
Other property and equipment 293.9 96.3 197.6
OG&E property,
plant and equipment 8,143.2 2,592.3 5,550.9
Enogex
Natural gas transportation
and storage assets 967.0 277.0 690.0
Natural gas gathering
and processing assets 1,580.1 381.0 1,199.1
Enogex property,
plant and equipment 2,547.1 658.0 1,889.1
Total property,
plant and equipment $10,814.9 $3,340.9 $7,474.0
(A) This amount includes a plant acquisition adjustment of $148.3 million and accumulated
amortization of $17.9 million.
(B) This amount includes a plant acquisition adjustment of $3.3 million and accumulated
amortization of $0.2 million.
The following table summarizes the Company’s unamortized
computer software costs.
(In millions, December 31) 2012 2011
OGE Energy (holding company) $11.6 $14.0
OG&E 17.6 6.7
Enogex 3.9 4.4
Total $33.1 $25.1
The following table summarized the Company’s amortization
expense for computer software costs.
(In millions, year ended December 31) 2012 2011 2010
OGE Energy (holding company) $÷6.8 $6.4 $÷5.3
OG&E 4.2 1.8 2.6
Enogex 3.1 1.0 2.2
Total $14.1 $9.2 $10.1
Intangible Assets
Enogex
The following table below summarizes Enogex’s intangible assets and
related accumulated amortization at:
Total Net
Intangible Accumulated Intangible
(In millions) Assets Amortization Assets
December 31, 2012
Customer contract/acreage dedication $141.9 $14.5 $127.4
December 31, 2011
Customer contract/acreage dedication $141.9 $÷4.9 $137.0
52 OGE Energy Corp.