...Supportive Regulations: Oklahoma Gas & Electric Co. (OG&E) enjoys regulatory mechanisms that provide stable earnings and partially offset the lowered authorized return on equity (ROE) of 10.2% in Oklahoma in the rate case settlement in 2012. Various recovery mechanisms include timely recovery of fuel and purchased power costs, pre-approval of projects, and storm and demand program riders. Oklahoma legislation allows utilities to recover environmental compliance costs incurred to meet both state and federal mandates. Stringent Environmental Mandates: OG&E's rating stability depends on continued regulatory support for environmental capex on a timely basis. OG&E produces over 60% of electricity from coal-fired generating plants. In 2014, OG&E filed a $1.1 billion environmental compliance plan. In June 2015, the administrative law judge (ALJ) recommended a general rate case for recovery instead of rider recovery. An order from the Oklahoma Corporation Commission (OCC) is expected later this...
