OGE - Earnings call transcript Q4 2017

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Operator

Good day ladies and gentlemen and welcome to the OGE Energy Corp. Fourth Quarter 2017 Earnings conference call. At this time, all participants are in a listen-only mode, so if anyone should require assistance during the call, please press star then zero on your touchtone telephone to reach an operator. Later, we will conduct a question and answer session and instructions will follow at that time.

As a reminder, today’s conference is being recorded. introduce for to conference, like now your today’s host Mr. I’d Tidwell. Rodd go Sir, please ahead.

Todd Tidwell

and everyone, of OGE I’m morning OGE you, Trauschke, CFO with good Thank Liz, of have I to Corp. of Relations, fourth Sean and XXXX me Merrill, today Director and Energy quarter and Energy earnings Energy Tidwell, call. CEO Corp. Todd President Investor and OGE Corps’ to welcome Steve

from followed Steve call the we first by today, quarter an Sean explanation year-end In terms of results. of hear will fourth and from

as your Finally this questions. would like on and always, being you along oge.com. is at that you I our we will website follow may answer to conference webcast remind

website. conference sides and accompanying the following will addition, the cal that archived In same be call on

would to an is but the SEC that Sean for simply Before estimate G Sean? margin direct call Harbor we forward-looking presentation, to now to also cannot Safe gross this the and results, begin your requirement is you opening regarding remind his projected this to for the forward-looking reconciliation This a guarantee our to in there states turn statement like is best along I like financial statements statements. attention we expenditures. that I Reg with over capital will I comments. for appendix date. would financial

Sean Trauschke

of on Thank you, earnings Todd, share. Earlier per call. today’s us morning you morning this reported everyone. joining and consolidated $X.XX good for we XXXX Thank

significant recognized will details a however, Excluding for year the $X.XX the performances. was Enable, of outstanding Florida, the restorations, XXXX. without for in and Texas XXXX Emergency per Reports with again, and utility Utility time financial dedicated Water the part Energy for named received bit as Puerto a XX reform earnings project Assistance XXXX. share $X.XX the wastewater OGE Cogent XXX of only in the had This we assisted have Trustworthy the year. quarter members. our discuss managed storm performance another and in the Champion locally numbers our the fourth Customer of of as of had We of and story Environmental XXth impacts as year positive restoration compared Award Award Market record received second XXXX. we Forbes were of We for Utility Mustang. earnings low-volume Strategies the currently achievements in of of safety later; crews awards year are tax Rico, Environment, our Champion. Companies, Steve the one by all consolidated the well was EEI from injuries. full It the dozens the from in efforts for Once Excellence earned We Most the through tremendous and International to operational the investment Sector OGE in and since consecutive

year is company the well on the alerts Pacesetter Not testament exceedingly job energized. text the email The infrastructure Windspeed XXXX transmission on alerts customers. in where and largest focus megawatt in to named for which demonstrating utility our and debuted updates to the payment of United has Covington and and via focus, of is a performing the provides to line farm highlights: MyOGE XXX-mile billing, We a service. that and the are top and to Behind a work, contributor that’s difference program. our was only the improvement. was coming conclusion history, II few been restoration the in program they XX A hard and investment building live of solar that a single XXXX largest our Finally, true in making dedication are the they new a campaign. commitment work team. they These are all the Way continuous

As a in XX-minute availability base units challenging we’ve the improvement year, XXXX this over the year. key continue saw more load a reliability and an result weather investments made, customer and improvement of despite our to saw grid XX% improvement we see

about dollars, Sooner talked we’ve put, close a together it’s lot investments, and schedule Mustang Simply a on well a to are really budget. year. these great the Lastly, under been and billion

told one-year and our service each a high ability XXX,XXX and we was our new these we continues I’m grow are these is hours regulation greater increase say last year. megawatt deliver. to and Our average new This and than utility X% key not XX annual through dividend in satisfaction when factors addition originally XXXX customer growth. continued of customers. to had established rates X higher this number territory secure our Yet constructive a of Despite our XX% headwinds, prices. event. Back commodity assumptions projects, in in with Attractive to we X,XXX to megawatt, customer rate contributing all to proud historical added performance including growth XXXX,

the deliver growth and to continued to expect We come. we more earnings

We done this headwinds. and we discussion. XXXX of continue credit wasn’t for In the tax December without to President growth reform come. will and a topic we’ve all our quality maintained common been expect any deliver to strong all that more has dividend signed and issuances. comprehensive We’ve equity

this helps ownership may come. as rate worked our to flexibility position We the it will financial consolidated from positive. to is utility, to revenue accretive requirements lowers a the At reform beneficial weather tax it tax to attributable maintain and Tax On that gives our create a a us customer-enhancing challenges us, tax level, and strong make the be lower to beneficial will earnings For hard investments. OGE. in financial shareholders reform Enable. and the of is customers that reform headroom us

requesting review has The primary of you public that was already know, the energy felt calls with Commission Arkansas a immediately them SBP these the as the and benefits and recovery Mustang filed in change rate reform, units in case, Commission a delayed change filing in increase. because X.X% to residential be are timely. we of an As a the Mustang comes We of regularly. and to ruled the of ROE this are The of tax these interest. seeing In we will million center. order Oklahoma total $X.X depreciation am I of rate the impact the on some not is incorporate the optimistic the with customers rates. January the purpose units the filing the the

be this Oklahoma As of will we case in we and have we to another for the state, rulings recovery seen in end at the scrubbers. of the with XXXX Sooner recent expect file timely

first in filing Arkansas We rate will our October. formula also make

investment an of We do rate. on line long-term the calls and our update Enable, to Before growth year, did of past plans over I to and from to moving want projects to the and growth X spoken these longer out have to several as sight base more with we’ve implementing term continue are XXXX projects regulatory in provide to X% investments, and are our growing leverage The the smart technology comfortable resiliency we’ll our system. majority these of grid reliability states of to our the to environments increase plans. lay both modernization and grid

these per rise customer are bill as average rates on will X% year impacts Additionally, help bill. the the roughly expected to investments minimize

EBITDA returns to moving Arkansas. and invest quarters, highlighting in EBITDA, similar to fair They SCOOP Net projections eight partners Enable, net increased rigs more of currently currently the Oklahoma, same their internally that continue for in $XXX it experience XX could not time dedications really XXXX. Gathering and - Steve continue ratio a Onto from the million team we I coverage all straight proud what are attributable for primarily projects and in to ratio create income on company. doing management improve value confident regulatory Enable at acreage committed owners in distribution the that that be increased income, also and and the the while the employees state customer exceeded the with of is DCF volumes and we has for X.XX prime right We’re the and outstanding. growth STACK areas. the in providing X.X to funding guidance year they funds, and for I that environment maintaining generated our to expect, direction with am and adjusted can system our

OGE to distributions were $XXX another for year. Enable the addition, In million

to I to performance with call am the of businesses. turning want Before pleased over do I how the reiterate both Steve,

our communities to in quarter the team, a creating and management are turn a full and provide Thank vision financial the and and to for we will call Steve the on that results benefits shareholders, live we plan executing which year. serve. the As customers, review our I’ll our over our Steve? now and for you,

Steve Merrill

Thank morning. you, and Sean, good

income share $X.XX million fourth $XXX net as in $XX million the share of we of quarter, compared reported per For to or $X.XX per net income XXXX. or

or gain million $X.XX contribution business $XXX.X of This share to assets the XXXX a company or rate. of result deferred includes charge includes due per slide. at to a also unit of of The Enable million $X.XX deferred related holding the reform, deferred As the a listed the of on a with lower on to basis $XX.X associated due tax re-measurement taxes. benefit pulling was tax re-measurement by the taxes is comparative costs. per share

$X.XX share per the net share in $XX $X.XX from net accounts year as $XXX an quarter $XX or $XXX our per million compared income or we Enable. million per XXXX. reform net or per for $X.XX income For the share investment total, in as additional compared of per share share in million In to for in $X.XX XXXX resulting XXXX, $XXX of reported to or or income million earnings OG+E, of $X.XX was full million tax XXXX. At

in to more in primarily vegetation For for by by higher increased $XX the due to due depreciation and to the for center million part quarter Mustang scrubbers. million and the the Sooner lower favorable gross rates Depreciation $XX additional margin to primarily and higher quarter, to $X expense order investment $X decreased the increased the gross-up offset in increased partially weather. income rate the management. service. due quarter quarter Other energy approved plant million by the million O&M related the AFUDC due tax Oklahoma for

tax primarily tax $XX income expense increased Finally, million credits. to due fewer

the full net $X.XX for income Now million share $XXX income per year, turning or to million per of compared in the $XXX as OG+E or XXXX. net was share year to $X.XX at

which margin per timing next Oklahoma I on million, the As earnings the XXXX rate XXXX slide. XXXX reminder, due will decreased from the to $X.XX share of discuss Gross includes a $XX review order. for last

work Looking due higher X%. our $XX vegetation the of up O&M at a drivers was of was included by XXXX, million as primarily in $XX progress, base associated also that less than lower which increased environment to order, a higher rate other construction tax depreciation to for and offset. year and account, result due $XX O&M Taking cost income lower Oklahoma additional management projects. million million related increased due rates this plant Mustang the balances into some Depreciation offset due to service. the key to our to Net gross-up and primarily higher revenue AFUDC

and increased tax due expense higher tax lower to $XX income Finally, operating million credits income earned.

the into weather. Weather weather reduced in margins to in margin $XX gross This XXXX part as by compared normal, cooler was to Turning summer decrease to XXXX. to XXXX XXXX decreased $XX million. to compared utility million margin, compared million due translated a of and $XX

providing we said, growth a new rate year. base are of the X% X XXXX Sean with As to as long-term

already and system projects made compliance through of resiliency, approximately through have These starting investments. focused year of grid XXXX. and distribution on projects technology we our leverage investments to hold plan worked we’ve are updated on as our new put the per What’s expenditures Many XXXX. the addition the average million These these capital investment smart environmental We is to the upgrades in reliability, cycle. were our investments $XXX modernization grid. around

a rate Mustang’s case include The to to million. Turning modernization for filed in of revenue $XXX the in drivers million XX of recovery our rate of primary on $XX Mustang requirement we seek investment regulatory, January the the Oklahoma facility. review

plant We of $XX included expense rates have and depreciation and also restoring depreciation previous our dismantlement million, including escalation costs.

million, million this income $XX $XX X.X% revenue company change our proposal, reform growth pension the to a million, to residential approximately will of requested expense to customers increases recover planned initially in $XX of of million. our an million. tax X.X% $XX seek With these in $XX rates. and is a to is ROE see increase of investment. Offsetting reduction our rate of The Finally, not current increase

be conversion. scrubbers Moving We our Following delayed President December in the anticipate tax in year regulatory gas ensure the quarter million filing X, to first implemented project Muskogee file be schedule, of another from implemented Trump’s XXXX rate we this to is XXXX. October benefited of year of to in be filing rate the tax will the investment of the mid-XXXX. scrubber late The from plan the we signing September rate second case fourth The unit plan end to the test service XXXX. AFUDC. our rates Arkansas, In in in customers December, and inclusive quarter our recover $XXX reform scrubber anticipate by rates of XXXX the with of will investments April with lower ending onto we first formula

used formula recovery Mustang. will first be for rate filing the The of

XX. XXXX. in Turning contributed to of $XX diluted Enable, earnings $X.XX $X.XX distribution operational highest in a gas with a Enable transported approved Midstream Enable volumes. million or LP distribution per and gathered an approximately $XXX unit million our volumes, paid natural to million, highest share highest investment in board Energy or compared NGLs XXXX: record of XXXX, from received produced, processed will in gas OGE per that natural Holdings earnings Enable per February the and year of record-setting share and cash performance $XXX had diluted $X.XXX The of be

grown times balance success side, business the had XXXX saw their year XXXX ended On They capital year. with of times. to at with and financial and cost meeting reaffirmed strong outlook objectives their their team Enable already efficiency. has the new and the X.XX the highest a adjusted sheet, for leverage they distribution date. They DCF EBITDA filtering highest and coverage have the into is The management discipline X.X in they

OGE for Enable tax of rate. will tax approximately As deferred per quarter. an ongoing lower benefit reduction an from the tax liability OGE. our and Enable’s positive earnings will is mentioned, from this business. due in reform The ownership benefit to customer Enable the increase of Sean was $X.XX basis, the share On earnings $X.XX

additional reduction utility sheet in our strong customers us equity. taxes to back allows issuing flow the Our balance to deferred without

OGE deductibility the expense at significant company holding remains interest While no utility, has debt.

project the and earnings be per normal assuming between Turning we weather, utility to $X.XX $X.XX to XXXX share and at guidance, share. per

between share. For the per earnings be $X.XX and and are projecting between $X.XX $X.XX the business, midstream and we to are contribution projecting $X.XX diluted share, consolidated earnings we average per

Looking X our $X.XX growth taking assumptions is based revenues for billion, October approximately anticipate effect on Oklahoma the margin rates new assuming a weather-adjusted which we be we’re into billion between on to sales X% of utility, in $X.XX and further gross by to on basis.

decreased looking at midpoint online XXXX, rate be As increased the losing of the to utility to answer we’ll majority we you due remarks assumptions, fourth typically of air relief. OG+E Mustang in compared your OG+E and reflects seasonality the can has This XXXX. has X, had of important nature the first depreciation questions. also that third In prepared see to concludes quarters with and shows by now significant scrubber its earnings the conditioning the and the guidance minimal our with is seasonal remember earnings. the first AFUDC guidance and in AFUDC, planned July and without of It demand. in in impact quarter earnings the to service

Operator

first Our question with line of Shar instructions] Guggenheim Pourezza the Partners. [Operator from comes

Your line is open. now

Shar Pourezza

guys. Morning

Sean Trauschke

morning, good Shar. Hey,

Shar Pourezza

you you’ve you in case the super always capex, sense? of would rate to from it it’s got of the Sean, confidence, commission of you’re that having bogey Mustang right giving tax fact cases leading use or you a sense that’s so that or minimal question is Oklahoma’s healthy going thought there’s two what is, the big so question on indications customer the capex reform I whether to have conversations a is jump with capex, this guess is as We’ve the impacting sense is that do that guess function you redirect the a thing? here, I the sort you’d first revisit giving

Sean Trauschke

question. Good

cases in smoother the with So because look And some really for strongly - but manner. Mustang what there where been additional the recent always on on over focused was it is it’s going timely doing, of is the what’s and in I foremost, think steps much dialog we’ve touched out out now I customers cases There we’ve there. are efficiency so it’s but a a and at the case and a of recent with on just think tax the and being over there positive offset first taken benefits XXX there, the have it tax We lower XXX number reform think felt days, getting think able going about over I having days, of the been you’ve rate, orders just commission. to has of investment improve some there the forward. with of to process the I was and commission extensive momentum most order XXX, some

Shar Pourezza

Okay, that’s level program no your puts helpful. Then what metrics for at so incremental FFO the capital to debt higher equity, just need now?

Steve Merrill

XX% Right in into a position strong in ratings, current capex. support and our very so XX, range, able that that we which to that maintain come would

Shar Pourezza

helpful. it, very Got that’s

results. Okay, great. on Congrats the guys

Sean Trauschke

a great day. Have Thanks.

Operator

Our Bank next the Lynch. comes Julien Dumoulin-Smith Merrill from question with America of line of

Your is now line open.

Julien Dumoulin-Smith

Hey, good morning.

Sean Trauschke

Julien. morning, Good

Julien Dumoulin-Smith

give capex - breakdown? of about Quick front. meaningfully bit Oklahoma, on talk here bit the us obviously you question sense to the between pretty a increased and just of here the little a Arkansas you’ve allocation little Can resilience

Sean Trauschke

Sure.

first Arkansas. be years, to it’s couple primarily the going So in

year. Arkansas but the thereafter portion rate in scrubber of $XX it’s Our be about Sooner filings of magnitude Arkansas a Mustang in both probably and order will the the work, million

Julien Dumoulin-Smith

a million year Sixty is--

Sean Trauschke

Oklahoma. Arkansas, would It’s and Arkansas. be To rest the

Julien Dumoulin-Smith

a right, in Oklahoma? Got there, governor’s progress Any little the Can force comment any task commentary? excellent. it. you is All bit, where

Sean Trauschke

they’ll people. various force The this to I know recommendation conducted task X. a scheduled few schedule interviews Their November for and a lays times. has final the force summer, I met is report task the that think out preliminary with some make Sure. the has consultant

Julien Dumoulin-Smith

your to that kind you bit, Excellent. could of a raising possibly summarize investment? still of but of outcome sheet on the reform, against much tax how capex spend the strong thinking potential rate pretty I backdrop Maybe accelerate case? balance more should more or little obviously a to about things the are capital raise constructive you mean, you how get a reinvest net

Sean Trauschke

know, has that to so the we think, I investment we customer extent prudent investment be, proposition, the value can value a there of and real create thesis, at capital, Yes, think a from I think look allocators continue standpoint. look I to we we be at--you pretty to the some

under to regulation, extent have have the We we we list customers have opportunities of of line consideration good benefits to that good to a certainly. constructive and the sight

Julien Dumoulin-Smith

Got I in not? is particular anything there. it. in of if looking Anything would that that mean, know at you’re sort you be I thinking don’t or about incremental potentially there’s particular

Sean Trauschke

it’s all grid. think I the on be No, around going to

Julien Dumoulin-Smith

Got you very leave it, well there. it Excellent, Thank much. okay. I’ll

Sean Trauschke

Thanks.

Operator

Our next from question with of comes Paul the line Keybanc. Ridzon

now is line Your open.

Paul Ridzon

Good morning.

given this assume credit can You no metrics, capex you your in I equity? without equity indicated meaningful ’XX. do

Sean Trauschke

equity would correct. support the of we’ve XXXX. out through not laid horizon any anticipate That’s We planning the that in capex in plan or

Paul Ridzon

say When no equity, assume employee or programs, a flat any just share can count? you no we DRIP

Steve Merrill

Absolutely.

Paul Ridzon

had background have but depreciation your discussions ask the case, Okay. current I what’s in you there. with big happening got any in Then know just Oklahoma wondering a you’ve around the issue? rate

Steve Merrill

it’s immediate don’t so lot recent those about we’re going an case, anticipate but shorter I are work time. a discussions to lives to I effort. ongoing useful think on No, of in fix that, over most assets think depreciation a an that’s the recovering we’re actual think than I going lot to what had that this these acknowledged issue assets of that I we’ve and the be

Paul Ridzon

your we but this as right. should with think ’XX, X? was of the presentation that to beyond just if X in kind line Apologize somewhere, All in of dividend

Steve Merrill

that’s consideration think update going opportunities but against certainly I a Yes, we’re something next to other investment we have. that’s year,

Paul Ridzon

’XX lastly, from Steve, interim was some What rates. Then benefitted you amount? indicated ’XX that that

Steve Merrill

into you actually half six over. so order XXXX, months those recall, It and The XXXX, get those flowed that XXXX, the time was book so back to related in was if the $X.XX, $X.XX. got in to earnings didn’t recorded we

Paul Ridzon

versus that pointing those ’XX. issues also you again? year Can just a are some other down to you discussed then at And review OG+E

Steve Merrill

really--you will units which we we [indiscernible] AFUDC on so in expensing the to in thing we’re Yes, it, it’s taxes, that and assets same service service, Mustang begin property will Sooner, recording by with to X, but and until and both about you those know, start Sooner, AFUDC on unit. first we’ve the taxes depreciating and rate [indiscernible] get will--now unit are if record AFUDC that first unable depreciating had think expense July Mustang that the relief, XXXX we are were and to that having happen or be at in lose we’ll and

Paul Ridzon

fixed little the should So be bleed a next will then year, by of Sooner year? the into end Mustang bit

Steve Merrill

have--the rate and won’t That’s until will won’t file midyear and service relief the of go get correct, XXXX on second rate end because at unit. that also we and mid-XXXX get you’ll unit we’ll case, second a into unit until that begin--won’t relief rate

Paul Ridzon

it. Got

I you. questions. all my Thank that’s think

Steve Merrill

Thank you.

Operator

Our Capital the next Zhou question Advisors. of comes from with Joe line Avon

now is line open. Your

Andy Levy

Andy Levy. it’s you? are Hey guys, How

Sean Trauschke

Hey, Andy. this are you How morning? good doing

Andy Levy

good, pretty for thank asking. doing I’m you

Sean Trauschke

Andy, got weather I’m we’ve it’s here, you cold - coming and ice so some way. your telling

Andy Levy

it. I’m forward looking Okay, to

Sean Trauschke

Be ready.

Andy Levy

can We so. here, ski

other. a there I reliability, that or call, can discussed any resiliency, but type technology I like recover mod; Is case you of through anything go Just rate that, was to you that guess all or that, another on because grid to in what apologize on I is if capex, track incremental you Oklahoma? mod, have recover and this it’s really already and all the grid

Sean Trauschke

regulatory Well have rider now, there of a rate in require for in type and so have obviously then that, Oklahoma, Arkansas would mechanism. we in tracker action we the Oklahoma, there would--right a don’t formula some or

Andy Levy

know do if between breakdown Oklahoma? don’t on handout, and somewhere that I but in the Arkansas you the Okay, what’s and then

Sean Trauschke

will those allocate capital about scrubbers couple but to probably the thereafter will first so dollars Mustang some incremental Yes, to the and capital from go the million years, we Arkansas, $XX Sooner Andy, Arkansas. of of

Andy Levy

Okay.

Steve Merrill

and our the it’s in XX-K presentation. capex also broke we all in that the Andy, It’s table. in And out

Andy Levy

on was grid mod. yes, resiliency, talking the the about just Oh I

Steve Merrill

Okay.

Andy Levy

not broken is it? out, that’s Because

Sean Trauschke

Not modernization, that’s grid correct. the on

Andy Levy

jurisdictions? was and--so just base that’s on on so what how those we much on, Right, of that is right, I breakdown earnings wondering kind should Arkansas your

Sean Trauschke

Yes, I about to to ought that capital total it’s the expenditures you if $XX think were million. Arkansas, been looking in increased you assume at

Andy Levy

that that Okay. less same subject, the just been--you grid like Again the controversial and and you’ve be know, should big what sticking than mod on that, with all Sooner? Mustang chunks

Sean Trauschke

the things, the and policy, exactly long have view so people to right there’s think benefits less grid different system. you term take Sooner the you’re scrubbers, customer years. I just demonstrate Recall technology a these mandate going articulate and to is investments customer for investments significantly hoping fought and view toughest many, mean, lot many the and I in prices is bill frankly and making thesis you’re have I - of what think term this articulate that investments. the on but be think on be lot to I that were to making dealing We’ll decision with always Yes, it’s the resiliency and be Generation, controversial. reliability make we long of these easier a--taking to business, benefits, to views. real your and impact the as In you’re the we’re mitigate have commodity and a with well not bill federal making quite and a the - long-term know, was we investments able with real a you we because will

Andy Levy

great. that’s Okay,

much. I you for think now. Thank very set I’m all

Sean Trauschke

Andy. All care. right, Take thanks

Operator

of the with Stephen Castleton D’Ambrisi comes line question next Our from Investment.

is line Your open. now

Stephen D’Ambrisi

my taking guys, Hey thanks question. for

Sean Trauschke

Good morning.

Stephen D’Ambrisi

earnings that CAGR? I growth new or term just had me growth clarification. that a an tell quick what Can just you long rate that is? rate rate, is base is The a

Steve Merrill

earnings an rate. it’s growth Yes,

Stephen D’Ambrisi

at there’s just and growth consolidated guys--and Okay, do no that’s rate? and utility, you the

Steve Merrill

Yes.

Stephen D’Ambrisi

All for great. much right, Thanks had. very Okay. was I all That clarifying.

Sean Trauschke

Thank you.

Operator

Our with Michael comes next Sachs. Lapides line Goldman from the question of

line open. now Your is

Michael Lapides

easy guys, Hey ones. of couple a

it, all, both get you how deferral--if that the you on environmental does AEP cover you deferral it coal and that for get the D&A similar Sooner of and did are project O&M? to First assuming for plants, does their scrubber

Steve Merrill

all We asset point got a regulatory on bit. equity are certainly assets. PSO you’re necessarily treatment Sooner their on softens assuming that get it scrubbers, cover treatment the D&A quite return, the the to we in doesn’t environmental the correct and out It similar blow of but

Michael Lapides

Got it.

you’ve table in on Second, at but in and questions about capex million this, to I the million you year to K, XXXX know outline capex Arkansas, at to I’m that line, saying spend. reliability in to looking is of $XXX K lot million, and ’XX, want it in sure, $XXX ’XX on line starting of grid and are I’m actually bulk that and gotten Arkansas--that in lot ’XX, so only and that mod and is do resiliency I a make want I from that varies to I and focus by you just a ’XX is million maybe the or the $XXX spend, the looking hate a $XXX and of year, Oklahoma?

Steve Merrill

that Michael. No, of a Oklahoma, lot is

to you’re we would now $XX at if what saying, is that to the think I be total about looking applied were capital up Arkansas, expenditures it million.

Michael Lapides

is jumping of and rolling a the bit if about spend, you’re major data capital in the having the we’ve all we horse was rate some Oklahoma, of I in and just and here the Okay. Are recommendation little you ALJ a ALJ worried Oklahoma, out points really argue case, yet bit, rate because take still uptick the gotten what of PSO, from investing a of a decision, capital kind cart on regulatory to lot lag about Windcatcher capital? according the are a which significant before the would concerned you your gun little that last about case, owner difficult PSO at

Sean Trauschke

well I points made. know, You think your are

points am we’ve our seen important data that have in improvement timeliness, regulatory some and decisions. been to outcomes there think encouraged I by momentum not I are very the the in were investment constructive.

of so ought to case sight about going criteria, that extent I we Michael, to but going it’s to Mustang this, see to the job better. it’s get a To the the clear an it’s to adjust we how changes plays think we’re recovery a the big way and to you out, very I’m our opportunity line So we’ll have having is think accordingly, this expectation have that, to continue confident manage go think are--I our that event to that’s well. the but going very is

- deployed the teed haven’t up capital ’XX. yet, so think Michael, We for that’s it the point we’ve I

Michael Lapides

or Last in I a Sean, lag. regulatory Oklahoma question correctly, trackers that history - Got mechanisms of actually reduce it. there’s remember if having having

have is requested the I on your for may had something you plan next on else the in regulatory that grid over maybe you Do think so? something have you or year it trackers, mod or or resiliency-related AMI, years. plan or

Sean Trauschke

I we’re think something seriously contemplating. that’s that

right. exactly You’re

the to across, benefit Your because of commission. memory like, used have regulatory over all allows deploy don’t the capital the always, is that the you benefit benefit we cases top there you’re for what that us is and to riders backlog at things, the of The us to trackers faster. it and pancake lot the rate do minimized kind lag commission of you or it workload not to customer and right and is as have much does, the create a - so on and

others, cases, result lot the from there. not we So the and over it had just a was but riders so of piles so and us up we’ve away rate moved trackers,

recognized been begin to So and I for trackers again. is environment the probably a and riders has that issue think it discussion good having

Michael Lapides

separate can ongoing docket requires do in that even or is or a Is legislation? that something that this a case, rate you discussion

Sean Trauschke

A that is do not commission the for separate that, authority separate They’ve the full that. docket. done has would that required so to and before, just a be docket. Legislation

Michael Lapides

Got it, Sean. you, Much appreciated, thank guys.

Sean Trauschke

care. take Thanks,

Operator

time. call questions Trauschke to closing remarks. I’d to further Mr. in the any no showing I’m like turn for this at back queue

Sean Trauschke

Liz. you and you talk for quarter. wish this your Thank day, you of all morning. you, and thank a Okay, time interest your all great I to next

Operator

Ladies for and Everyone today’s a concludes thank and may participation program gentlemen, you in your day. have great conference. the This now you disconnect.

OGE Energy (OGE) 22 Feb 182017 Q4 Earnings call transcript