Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

OGE Energy is a holding company whose primary investment provides electricity in Oklahoma and western Arkansas. OGE Energy's electric company operations are conducted through its wholly-owned subsidiary, OG&E, which generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas and are reported through OGE Energy's electric company business segment. OG&E's rates are subject to regulation by the OCC, the APSC and the FERC. OG&E was incorporated in 1902 under the laws of the Oklahoma Territory and is the largest electric company in Oklahoma, with a franchised service territory that includes Fort Smith, Arkansas and the surrounding communities. OG&E sold its retail natural gas business in 1928 and is no longer engaged in the natural gas distribution business.

The accounts of OGE Energy and its wholly-owned subsidiaries, including OG&E, are included in OGE Energy's condensed consolidated financial statements. All intercompany transactions and balances are eliminated in such consolidation.

Basis of Presentation

The condensed financial statements included herein have been prepared by the Registrants, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, the Registrants believe that the disclosures are adequate to prevent the information presented from being misleading.

In the opinion of management, all adjustments necessary to fairly present the financial position of the Registrants at June 30, 2026 and December 31, 2025, the results of the Registrants' operations for the three and six months ended June 30, 2026 and 2025 and the Registrants' cash flows for the six months ended June 30, 2026 and 2025 have been included and are of a normal, recurring nature except as otherwise disclosed. Management also has evaluated the impact of events occurring after June 30, 2026 up to the date of issuance of these condensed financial statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation.

Due to seasonal fluctuations and other factors, the Registrants' operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026 or for any future period. The condensed financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto included in the Registrants' 2025 Form 10-K.

Accounting Records

The accounting records of OG&E are maintained in accordance with the Uniform System of Accounts prescribed by the FERC and adopted by the OCC and the APSC. Additionally, OG&E, as a regulated electric company, is subject to accounting principles for certain types of rate-regulated activities, which provide that certain incurred costs that would otherwise be charged to expense can be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense can be deferred as regulatory liabilities, based on the expected flowback to customers in future rates. Management's expected recovery of deferred costs and flowback of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment.

OG&E records certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refund in future rates. The following table presents a summary of OG&E's regulatory assets and liabilities.


	June 30,		December 31,
(In millions)	2026		2025
REGULATORY ASSETS
Current:
SPP cost tracker under recoveries (A)	$	6.0	$	7.1
Other (A)		6.7		4.3
Total current regulatory assets	$	12.7	$	11.4
Non-current:
Oklahoma deferred storm expenses	$	207.1	$	224.7
Pension tracker		84.2		88.7
Benefit obligations regulatory asset		82.7		85.6
Oklahoma PISA deferred costs, net		64.5		22.9
Arkansas Winter Storm Uri costs		50.0		54.2
Oklahoma SAP S/4 HANA deferred expenses		16.3		16.5
Sooner Dry Scrubbers		15.1		15.5
Oklahoma vegetation management program deferred costs		9.0		13.9
Arkansas deferred pension expenses		8.4		9.3
Arkansas capacity power purchase agreements		7.7		6.7
Unamortized loss on reacquired debt		5.1		5.5
COVID-19 impacts		3.5		4.1
Other		8.8		9.6
Total non-current regulatory assets	$	562.4	$	557.2
REGULATORY LIABILITIES
Current:
Oklahoma fuel clause over recoveries	$	131.8	$	15.7
Arkansas fuel clause over recoveries		20.2		11.4
Oklahoma Energy Efficiency Rider over recoveries (B)		10.2		5.8
Other (B)		1.7		2.0
Total current regulatory liabilities	$	163.9	$	34.9
Non-current:
Income taxes refundable to customers, net	$	689.9	$	718.9
Accrued removal obligations, net		241.3		234.7
Other		4.4		3.5
Total non-current regulatory liabilities	$	935.6	$	957.1

(A)

Included in Other Current Assets in the condensed balance sheets.

(B)

Included in Other Current Liabilities in the condensed balance sheets.

Management continuously monitors the future recoverability of regulatory assets. When in management's judgment future recovery becomes impaired, the amount of the regulatory asset is adjusted, as appropriate. If OG&E were required to discontinue the

application of accounting principles for certain types of rate-regulated activities for some or all of its operations, it could result in writing off the related regulatory assets or liabilities, which could have significant financial effects.

Allowance for Uncollectible Accounts Receivable

Customer balances are generally written off if not collected within six months after the final billing date. The allowance for uncollectible accounts receivable for OG&E is generally calculated by multiplying the last six months of electric revenue by the provision rate, which is based on a historical average of actual balances written off and is adjusted for current conditions and supportable forecasts as necessary. To the extent the historical collection rates, when incorporating forecasted conditions, are not representative of future collections, there could be an effect on the amount of uncollectible expense recognized. Also, a portion of the uncollectible provision related to fuel within the Oklahoma jurisdiction is being recovered through the fuel adjustment clause. The allowance for uncollectible accounts receivable is a reduction to Accounts Receivable in the condensed balance sheets and is included in Other Operation and Maintenance Expense in the condensed statements of income.

New business customers are required to provide a security deposit in the form of cash, bond or irrevocable letter of credit that is refunded when the account is closed or when certain requirements are met. New residential customers whose outside credit scores indicate an elevated risk are required to provide a security deposit that is refunded based on customer protection rules defined by the OCC and the APSC. The payment behavior of all existing customers is continuously monitored, and, if the payment behavior indicates sufficient risk within the meaning of the applicable utility regulation, customers will be required to provide a security deposit.

Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the components of accumulated other comprehensive income (loss) attributable to OGE Energy during the six months ended June 30, 2026 and 2025. All amounts below are presented net of tax.


(In millions)	Pension Plan and Restoration of Retirement Income Plan			Postretirement Benefit Plans			Total
Balance at December 31, 2025	$	(10.0	)	$	7.4		$	(2.6	)
Amounts reclassified from accumulated other comprehensive income (loss)		0.3			(0.2	)		0.1
Balance at June 30, 2026	$	(9.7	)	$	7.2		$	(2.5	)


(In millions)	Pension Plan and Restoration of Retirement Income Plan			Postretirement Benefit Plans		Total
Balance at December 31, 2024	$	(8.8	)	$	6.1	$	(2.7	)
Amounts reclassified from accumulated other comprehensive income (loss)		0.2			—		0.2
Balance at June 30, 2025	$	(8.6	)	$	6.1	$	(2.5	)

The following table presents significant amounts reclassified out of accumulated other comprehensive income (loss) attributable to OGE Energy by the respective line items in net income during the three and six months ended June 30, 2026 and 2025.


Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)												Affected Line Item in OGE Energy's Statements of Income
	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2026			2025			2026			2025
Amortization of Pension Plan and Restoration of Retirement Income Plan items:
Actuarial losses	$	(0.1	)	$	(0.1	)	$	(0.2	)	$	(0.2	)	(A)
Prior service cost		(0.1	)		—			(0.2	)		(0.1	)	(A)
		(0.2	)		(0.1	)		(0.4	)		(0.3	)	Income Before Taxes
		—			—			(0.1	)		(0.1	)	Income Tax Expense
	$	(0.2	)	$	(0.1	)	$	(0.3	)	$	(0.2	)	Net Income

Amortization of postretirement benefit plans items:
Actuarial gains	$	0.1		$	—		$	0.2		$	0.1		(A)
		0.1			—			0.2			0.1		Income Before Taxes
		—			—			—			0.1		Income Tax Expense
	$	0.1		$	—		$	0.2		$	—		Net Income

Total reclassifications for the period, net of tax	$	(0.1	)	$	(0.1	)	$	(0.1	)	$	(0.2	)	Net Income

(A)

These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 10 for additional information).