SEC Filing | OGE Energy Corporation

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934



Date of report (Date of earliest event reported)	December 18, 2015


OGE ENERGY CORP.
(Exact Name of Registrant as Specified in Its Charter)

Oklahoma
(State or Other Jurisdiction of Incorporation)

1-12579	73-1481638
(Commission File Number)	(IRS Employer Identification No.)

321 North Harvey, P.O. Box 321, Oklahoma City, Oklahoma		73101-0321
(Address of Principal Executive Offices)		(Zip Code)

405-553-3000
(Registrant's Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events

OGE Energy Corp. (the "Company") is the parent company of Oklahoma Gas and Electric Company ("OG&E"), a regulated electric utility with approximately 822,000 customers in Oklahoma and western Arkansas. In addition, the Company holds a 26.3 percent limited partner interest and a 50 percent general partner interest in Enable Midstream Partners, LP.

2015 Oklahoma Rate Case Filing

On December 18, 2015, OG&E filed a rate case with the Oklahoma Corporation Commission requesting a rate increase of $92.5 million. OG&E had previously disclosed its intent to file the general rate case. OG&E seeks to recover $1.6 billion of electric infrastructure additions since OG&E’s last general rate case in Oklahoma, the impact of the expiration of OG&E’s wholesale contracts and increased operating costs. The related press release and copy of the application are furnished as Exhibit 99.01 and 99.02, respectively, and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits



(d) Exhibits

Exhibit Number		Description

99.01		Press release dated December 18, 2015, announcing OG&E fuel cost reduction largely offsets rate increase request.
99.02		Copy of the application dated December 18, 2015.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



	OGE ENERGY CORP.
	(Registrant)

By:	/s/ Scott Forbes
	Scott Forbes
	Controller and Chief Accounting Officer

December 23, 2015

Exhibit

Exhibit 99.01

OG&E fuel cost reduction largely offsets rate increase request

OKLAHOMA CITY -- Oklahoma Gas and Electric Company today made two filings at the Oklahoma Corporation Commission. The first was a request to lower the amount the company collects from customers for the fuel used to generate electricity and the second was a request for a general rate case in 2016 to raise electric rates. If approved, customers will see their bills decrease in January and likely not see the rate increase before June of next year. Considered together, residential customers would see a net increase of about 47 cents per month.

Beginning in January 2016, OG&E residential customers' bills will drop approximately $6.75 per month largely as a result of declining fuel prices. OG&E passes fuel costs directly to the customer without markup. Due to the continuing drop in natural gas prices in recent months, OG&E fuel cost collections needed to be reduced, resulting in the need to true up costs and make a refund through lower charges on customer bills going forward.

In its general rate case filing, the company intends to seek a rate increase of $92.5 million. The company's current electric rates were last set in 2012. The proposed increase largely would be offset by the fuel decrease, resulting in a net monthly increase of approximately 47 cents per month. "The need for a rate increase is driven by three key things that are not covered in our current rates," said OG&E spokesman Randy Swanson. "We have added approximately $1.6 billion in electric infrastructure, we have terminated a wholesale generation contract for the benefit of our retail customers and we face increased operating costs. While OG&E has successfully kept most operating costs down, there has been a need to increase spending in certain areas related to system reliability such as vegetation management."

Since OG&E's last rate case, the company has added 700 miles of transmission lines, 5,500 miles of distribution lines, more than 11,000 transformers and twelve substations to better serve a growing number of customers. None of these facilities are being recovered in the rates customers pay today.

Swanson also explained the customer benefit from the termination of the wholesale contract. "OG&E supplied a significant amount of electricity to a wholesale customer for several decades," he said. "We terminated that arrangement in 2015 and that power is now benefitting our retail customers. We believe that this is a great move for customers since it delays the need to add new generation which would come at a significantly higher cost."

OG&E, a subsidiary of OGE Energy Corp. (NYSE: OGE), serves approximately 819,000 customers in a service territory spanning 30,000 square miles in Oklahoma and western Arkansas.

Exhibit

Exhibit 99.02

Application – Cause No. PUD 201500273 1 of 5

BEFORE THE CORPORATION COMMISSION OF OKLAHOMA



IN THE MATTER OF THE APPLICATION OF	)
OKLAHOMA GAS AND ELECTRIC COMPANY	)
FOR AN ORDER OF THE COMMISSION	)
AUTHORIZING APPLICANT TO MODIFY ITS	)	CAUSE NO. PUD 201500273
RATES, CHARGES, AND TARIFFS FOR RETAIL	)
ELECTRIC SERVICE IN OKLAHOMA	)

APPLICATION

COMES NOW Oklahoma Gas and Electric Company, hereinafter referred to as "Applicant," “OG&E,” or “Company,” and in accordance with 17 O.S. §152 and the Commission's rules promulgated thereunder, alleges and shows as follows:

I. Parties.

OG&E is an investor owned electric public utility with plant, property, and other assets dedicated to and for the generation, production, transmission, distribution and sale of electric power and energy at wholesale and retail levels within the states of Oklahoma and Arkansas. OG&E is incorporated within the State of Oklahoma, is subject to the regulatory authority of this Commission with respect to its retail rates and charges within the State of Oklahoma, and has the following address as its principal place of business:

321 N. Harvey Avenue

Oklahoma City, Oklahoma 73102

Applicant is represented for the purpose of these proceedings by the following named individuals whose addresses are reflected below:

Kimber L. Shoop, OBA No. 19571

Patrick D. Shore, OBA No. 8205

William J. Bullard, OBA No. 1302

Oklahoma Gas and Electric Company

P.O. Box 321

Application – Cause No. PUD 201500273 2 of 5

Oklahoma City, Oklahoma 73101

405-553-3023

405-553-3198 (Facsimile)

shoopkl@oge.com

shorepd@oge.com

bullarwj@oge.com

All correspondence, pleadings and communications with respect to this proceeding should be directed to all named counsel at their respective addresses.

II. Facts.

A. Applicant’s current base rates and charges were approved by the Commission in Cause No. PUD 201100087 by its Order No. 599558 issued July 9, 2012 based on a test year ending December 31, 2010. Applicant is not earning sufficient operating income to produce a fair and reasonable return on capital or a fair and reasonable return on the value of its plant, property and other assets dedicated to public utility service within the state of Oklahoma. Applicant must have increased rates and consequent additional revenues if Applicant is to continue to provide adequate and reliable electric service and earn a fair, just and reasonable rate of return on its investment.

B. On July 28, 2015, pursuant to OAC 165:70-3-7 of the Commission's Minimum Standard Filing Requirements, OG&E filed its Notice of Intent, advising the Commission of its intent to file an Application seeking Commission review of OG&E’s rates, charges and tariffs for retail electric service within the State of Oklahoma.

C. OG&E brings this Application, based upon a test year ending June 30, 2015, to initiate proceedings to review the rates, charges and tariffs of OG&E, and for the establishment of fair and reasonable rates and charges upon completion of the Commission’s review. OG&E tenders with the filing of this Application its complete Application Package as required by OAC 165:70-3-1,

Application – Cause No. PUD 201500273 3 of 5

and following the filing of the Application Package, the Company will provide the Public Utility Division its Supplemental Package as required by OAC 165:70-5-20.

D. OG&E is requesting a change in its rates that will result in an increase of $92.5 million when compared to OG&E’s rates that were implemented in August of 2012. OG&E expects this change will be effective no later than June 2016. The request is for rates sufficient to achieve a 10.25 percent return on 53% percent equity, which Applicant believes to be a fair, just and reasonable rate.

E. OG&E also proposes to: (i) include approximately $2.2 billion in rate base for capital investments made since rates were last approved based on a 2010 test year; (ii) recognize O&M expenses that have increased since rates were last approved; and (iii) recognize all known and measurable changes and other requests for relief as outlined in testimony.

III. Legal Authority.

The Commission has jurisdiction in these proceedings by virtue of Article IX, Sections 18 through 35 of the Constitution of the State of Oklahoma, the Oklahoma statutes, including 17 O.S. §151 et seq.,17 O.S. §250 et seq.,and the Commission’s rules.

IV. Relief Requested.

WHEREFORE, premises considered, OG&E requests that the Commission, issue an order authorizing Applicant to adjust its retail rates subject to the jurisdiction of the Commission by the amount hereinabove set forth, authorizing Applicant to file changes in tariffs and terms and conditions of service, as well as all other relief requested in the testimony and exhibits filed by OG&E in this cause and for such other and further relief as the Commission deems appropriate under the circumstances.

Application – Cause No. PUD 201500273 4 of 5

Respectfully submitted,

OKLAHOMA GAS AND ELECTRIC COMPANY

By /s/Kimber L. Shoop