OG&E 2013 Annual Report Download - page 47

OG&E records certain actual or anticipated costs and obligations
as regulatory assets or liabilities if it is probable, based on regulatory
orders or other available evidence, that the cost or obligation will be
included in amounts allowable for recovery or refund in future rates.
The following table is a summary of OG&E’s regulatory assets and
liabilities at:
(In millions, December 31) 2013 2012
Regulatory assets
Current
Fuel clause under recoveries $÷26.2 $÷÷÷«–
Oklahoma demand program rider under recovery(A) 10.6 9.2
Crossroads wind farm rider under recovery(A) 4.7 14.9
Other(A) 7.3 2.9
Total current regulatory assets $÷48.8 $÷27.0
Non-current
Benefit obligations regulatory asset $227.4 $370.6
Income taxes recoverable from customers, net 56.5 54.7
Smart Grid 44.2 42.8
Deferred storm expenses 21.6 12.7
Unamortized loss on reacquired debt 11.8 13.0
Pension tracker 1.4 –
Other 16.2 16.8
Total non-current regulatory assets $379.1 $510.6
Regulatory liabilities
Current
Smart Grid rider over recovery(B) $÷16.7 $÷24.1
Fuel clause over recoveries 0.4 109.2
Other(B) 3.1 7.8
Total current regulatory liabilities $÷20.2 $141.1
Non-Current
Accrued removal obligations, net $227.7 $218.2
Deferred pension credits 6.5 17.7
Pension tracker –9.2
Total non-current regulatory liabilities $234.2 $245.1
(A) Included in Other Current Assets on the Consolidated Balance Sheets.
(B) Included in Other Current Liabilities on the Consolidated Balance Sheets.
OG&E recovers a return on the capital expenditures along with
operation and maintenance expense and depreciation expense related
to the Crossroads wind farm through riders established by the OCC
and APSC. OG&E began recovery in the fourth quarter of 2011 in
Oklahoma and June of 2013 in Arkansas, and believes the rider will
continue until new rates are implemented in OG&E’s next general rate
case in each jurisdiction.
OG&E recovers program costs related to the Demand and Energy
Efficiency Program. An extension of the demand program rider was
approved in December 2012, which allows for the recovery of demand
program costs, lost revenues associated with certain achieved energy,
demand savings and performance based incentives and the recovery of
costs associated with research and development investments through
December 2015.
Fuel clause under recoveries are generated from under recoveries
from OG&E’s customers when OG&E’s cost of fuel exceeds the amount
billed to its customers. Fuel clause over recoveries are generated from
over recoveries from OG&E’s customers when the amount billed to its
customers exceeds OG&E’s cost of fuel. OG&E’s fuel recovery clauses
are designed to smooth the impact of fuel price volatility on customers’
bills. As a result, OG&E under recovers fuel costs in periods of rising
fuel prices above the baseline charge for fuel and over recovers fuel
costs when prices decline below the baseline charge for fuel. Provisions
in the fuel clauses are intended to allow OG&E to amortize under and
over recovery balances.
The benefit obligations regulatory asset is comprised of expenses
recorded which are probable of future recovery and that have not yet
been recognized as components of net periodic benefit cost, including
net loss, prior service cost and net transition obligation. These expenses
are recorded as a regulatory asset as OG&E had historically recovered
and currently recovers pension and postretirement benefit plan expense
in its electric rates. If, in the future, the regulatory bodies indicate a
change in policy related to the recovery of pension and postretirement
benefit plan expenses, this could cause the benefit obligations reg -
ulatory asset balance to be reclassified to Accumulated other
comprehensive income.
The following table is a summary of the components of the benefit
obligations regulatory asset at:
(In millions, December 31) 2013 2012
Pension plan and restoration
of retirement income plan
Net loss $178.4 $278.6
Prior service cost 2.5 4.5
Postretirement benefit plans
Net loss 79.9 134.6
Prior service cost (33.4) (47.1)
Total $227.4 $370.6
The following amounts in the benefit obligations regulatory asset at
December 31, 2013 are expected to be recognized as components of
net periodic benefit cost in 2014:
(In millions)
Pension plan and restoration
of retirement income plan
Net loss $«11.4
Prior service cost 2.0
Postretirement benefit plans
Net loss 11.0
Prior service cost (13.7)
Total $«10.7
OGE Energy Corp. 41