OG&E 2012 Annual Report Download - page 86

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August 31, 2012, OG&E filed an application with the APSC requesting
approval to recover the Arkansas portion of the costs of the Crossroads
wind farm through a rider until such costs are included in OG&E’s base
rates as part of its next general rate proceeding. On December 14, 2012,
the APSC Staff filed testimony recommending that the APSC find that the
Crossroads wind farm is in the public interest and that it approve interim
recovery through the Energy Cost Recovery Rider effective August 31,
2012. OG&E concurred with the APSC Staff’s recommendations. On
January 16, 2013, the APSC granted a motion made by OG&E and
the APSC Staff to cancel the hearing previously scheduled and issue
an order based on the filed record. On February 22, 2013, the APSC
directed OG&E to respond to two questions in order to complete the
record upon which they may rule. OG&E believes it is reasonable to
expect a final order from the APSC by the end of the first quarter.
OG&E Fuel Adjustment Clause Review for Calendar Year 2009
Related to Enogex Gas Transportation and Storage Agreement
As previously reported, under the terms of a settlement agreement
reached in 2011 regarding the prudency of OG&E’s fuel adjustment
clause for 2009, OG&E agreed to hire a third party expert to evaluate
its prospective gas transportation and storage needs and to identify
options for meeting those needs. Upon completion of the third party
evaluation, OG&E agreed to file a cause to address the third party’s
evaluation, recommendations and conclusions. On January 31, 2013,
OG&E filed a cause that included OG&E’s response to the final
evaluations and conclusions of the third party consultant, Black &
Veatch, and OG&E’s assessment of transportation and storage
needs for the next three to five years.
Also, as part of this matter, on August 9, 2012, OG&E filed an
application with the OCC requesting: (i) an order finding that a one-year
extension to April 30, 2014 of OG&E’s gas transportation and storage
agreement with Enogex is prudent, (ii) a waiver of the OCC’s competi-
tive procurement rules and (iii) finding that the one-year extension
of the gas transportation and storage agreement complies with the
OCC’s affiliate transaction rules. On September 14, 2012, OG&E filed
a settlement agreement in which all parties to this matter agreed to
the one-year extension of the Enogex contract and cost recovery from
ratepayers at the rates currently in effect. On October 25, 2012, the
OCC issued an order approving the settlement agreement.
18. Quarterly Financial Data (Unaudited)
Due to the seasonal fluctuations and other factors of the Company’s
businesses, the operating results for interim periods are not necessar-
ily indicative of the results that may be expected for the year. In the
Company’s opinion, the following quarterly financial data includes all
adjustments, consisting of normal recurring adjustments, necessary
to fairly present such amounts. Summarized consolidated quarterly
unaudited financial data is as follows:
84 OGE Energy Corp.
(In millions, except per share data, quarter ended) March 31 June 30 September 30 December 31 Total
Operating revenues
2012 $840.7 $855.0 $1,113.4 $862.1 $3,671.2
2011 $840.5 $978.1 $1,212.1 $885.2 $3,915.9
Operating income
2012 $÷98.3 $177.3 $÷«304.0 $÷97.3 $÷«676.9
2011 $÷67.9 $182.2 $÷«299.7 $÷96.9 $÷«646.7
Net income
2012 $÷47.5 $101.6 $÷«192.4 $÷43.5 $÷«385.0
2011 $÷29.7 $109.3 $÷«181.4 $÷43.2 $÷«363.6
Net income attributable to OGE Energy
2012 $÷37.1 $÷93.9 $÷«185.5 $÷38.5 $÷«355.0
2011 $÷24.8 $103.0 $÷«178.7 $÷36.4 $÷«342.9
Basic earnings per average common share
attributable to OGE Energy common shareholders(A)
2012 $÷0.38 $÷0.95 $÷÷«1.88 $÷0.39 $÷÷«3.60
2011 $÷0.25 $÷1.05 $÷«÷1.82 $÷0.37 $÷÷«3.50
Diluted earnings per average common share
attributable to OGE Energy common shareholders(A)
2012 $÷0.38 $÷0.95 $÷÷«1.87 $÷0.39 $÷÷«3.58
2011 $÷0.25 $÷1.04 $÷÷«1.80 $÷0.37 $÷÷«3.45
(A) Due to the impact of dilution on the earnings per share calculation, quarterly earnings per share amounts may not add to the total.