...Regulated Operations Drive Performance: OGE Energy Corp. (OGE) obtains approximately 80% of consolidated earnings from its regulated utility subsidiary Oklahoma Gas & Electric Company (OG&E, A/Stable). Earnings from its investments in Enable Midstream Partners, LP (Enable, BBB/Stable) contribute 20%. Scrubber Installation Approved: OG&E is required to comply with the EPA's federal implementation plan regarding regional haze by January 2019. In April 2016, the Oklahoma Corporation Commission (OCC) approved OG&E's request to install dry scrubbers at Sooner coal units 1 and 2, which Fitch Ratings views favorably. However, recovery of costs associated with the scrubbers and other environmental projects will be addressed in rate case filings. Relatively Supportive Regulations: Fitch views the overall regulatory compact in Oklahoma as supportive, although we are concerned with the lack of predictability of the OCC and the lengthy review process of the initial environmental compliance plan (ECP)....
