oge8k062811.htm
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)
June 22, 2011

   
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 785,000 customers in Oklahoma and western Arkansas, and OGE Enogex Holdings LLC and its subsidiaries, a midstream natural gas pipeline business with principal operations in Oklahoma.

On June 22, 2011, OG&E reached a settlement agreement with all the parties to the Arkansas Public Service Commission (“APSC”) consideration of OG&E’s December 2010 application for pre-approval for system-wide deployment of smart grid technology and a recovery rider, including a credit for the Smart Grid grant awarded by the Department of Energy (“DOE”) under the American Recovery and Reinvestment Act of 2009.  The settlement is subject to approval by the APSC.

OG&E and the other parties in this matter agreed to ask the APSC to approve the settlement agreement including the following:

 
·
Pre-approval of system-wide deployment of smart grid technology in Arkansas and authorization for OG&E to begin recovering the prudently incurred costs of the Arkansas system-wide deployment of smart grid technology through a rider mechanism that will become effective in accordance with the order approving the settlement agreement;
 
·
Cost recovery through the rider would commence when all of the smart meters to be deployed in Arkansas are in service;
 
·
OG&E guarantees that customers will receive certain operations and maintenance cost reductions resulting from the smart grid deployment as a credit to the recovery rider; and
 
·
The stranded costs associated with OG&E’s existing meters which are being replaced by smart meters will be accumulated in a regulatory asset and recovered in base rates beginning after an order is issued in OG&E’s next general rate case.
 
OG&E currently expects to spend approximately $14 million, net of funds from the DOE grant, in capital expenditures to implement smart grid in Arkansas pursuant to the settlement agreement.
 
The Settlement Agreement is filed as Exhibit 99.01 hereto and is incorporated herein by reference.

Item 9.01.  Financial Statements and Exhibits

                   (d) Exhibits    
    
     
                   Exhibit Number
  
Description
     
                          99.01
  
Copy of Settlement Agreement dated June 22, 2011.

 
 
 
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
     




June 28, 2011