...Rating Derivation versus Peers Peer Comparison OGE is unique among its peers as a hybrid utility holding company with an integrated electric utility combined with gas midstream service business through its Enable ownership. OGE's integrated electric utility operation through OG&E is subject to stringent environmental mandates due to its coal-dependent generation, similar to American Electric Power (BBB+/Stable). In 2016 OG&E produced 53% of energy delivered from coal generation compared to AEP's Public Service Company of Oklahoma's 61%. OGE is much less diversified and smaller than AEP and its commodity sensitive midstream investment is riskier than AEP's fully regulated operations. However, OGE's business risk is partially offset by its consistent customer growth in Oklahoma and stronger credit metrics (three-year average FFO-adjusted leverage of 3.5x compared to AEP's 4x). OGE and CenterPoint Energy Inc. (CNP, BBB/Positive) are both exposed to the commodity sensitive midstream business...
