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Date
of report (Date of earliest event reported)
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May
27, 2010
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OGE
ENERGY CORP.
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(Exact
Name of Registrant as Specified in Its Charter)
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Oklahoma
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(State
or Other Jurisdiction of Incorporation)
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1-12579
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73-1481638
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(Commission
File Number)
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(IRS
Employer Identification No.)
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321
North Harvey, P.O. Box 321, Oklahoma City, Oklahoma
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73101-0321
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(Address
of Principal Executive Offices)
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(Zip
Code)
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405-553-3000
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(Registrant’s
Telephone Number, Including Area Code)
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(Former
Name or Former Address, if Changed Since Last Report)
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o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17
CFR 240.14d-2(b))
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o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17
CFR 240.13e-4(c))
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●
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Pre-approval
for system-wide deployment of smart grid technology and authorization for
OG&E to begin recovering the costs of the system-wide deployment of
smart grid technology through a rider mechanism that will become
effective in accordance with the order approving the settlement
agreement;
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●
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OG&E’s
total project costs eligible for recovery (those costs expended or accrued
by OG&E prior to the termination of the period authorized by the DOE
as eligible for grant funds) shall be capped at $366.4 million (“Smart
Grid Cost”), inclusive of the DOE grant award amount. The Smart Grid Cost
includes the cost of implementing the Norman, Oklahoma smart grid pilot
program previously authorized by the OCC. Under the terms of
the settlement, the Smart Grid Cost would be deemed to represent an
investment that is fair, just and reasonable and in the public interest
and to be prudent and will be recognized in OG&E’s 2013 general rate
case;
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●
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To
the extent that OG&E’s total expenditure for system-wide deployment of
smart grid technology during the eligible period exceeds the Smart Grid
Cost, OG&E shall be entitled to offer evidence and seek to establish
that the excess above the Smart Grid Cost was prudently incurred and any
such contention may be addressed in OG&E’s 2013 rate
case;
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●
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Implementation
of the recovery rider would commence with the first billing cycle in July
2010;
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●
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Continued
utilization of a return on equity previously approved by the OCC for other
various recovery riders;
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●
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The
recovery rider shall be designed to collect, on a levelized basis, the
revenue requirement associated with the estimated project cost of $357.4
million and shall be subject to a true-up in 2014 after the recovery rider
expires, including a true-up for project costs, if any, in excess of
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$357.4
million but less than the Smart Grid Cost. Any over/under recovery
remaining will be passed or credited through OG&E’s fuel adjustment
clause;
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●
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OG&E
guarantees that customers will receive the benefit of
certain operations and maintenance cost reductions resulting
from the smart grid deployment as a credit to the recovery
rider;
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●
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Beginning
January 1, 2011, OG&E shall make available the smart grid web portal
to all customers having a smart meter. OG&E shall expend funds to
educate customers regarding the best use of the information available on
the portal. In addition, OG&E shall make available to all customers
who do not have internet access the opportunity to receive a monthly home
energy report. This report shall be made available, free of charge, to
customers eligible for the Company’s Low Income Home Energy Assistance
Program and/or Senior Citizen program who are without internet service.
The incremental costs for web portal access, education and the providing
of home energy reports free of charge are to be accumulated as a
regulatory asset in an amount up to $6.9 million and recovered in base
rates beginning in 2014; and
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●
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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 in
2014.
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(d) Exhibits
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|||
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Exhibit
Number
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Description
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99.01
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Press
release dated May 28, 2010, announcing OG&E Announces Smart Grid
Agreements.
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99.02
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Copy
of Settlement Agreement dated May 27,
2010.
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OGE
ENERGY CORP.
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(Registrant)
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By:
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/s/
Scott Forbes
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Scott
Forbes
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||
| Controller and Chief Accounting Officer | ||