{"url_path":"/sec/oge/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements and Supplementary Data.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-18","source_url":"https://www.sec.gov/Archives/edgar/data/1021635/0001193125-26-055414-index.html","accession_number":"0001193125-26-055414","cik":"0001021635","ticker":"OGE","issuer_name":"OGE ENERGY CORP.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1021635/0001193125-26-055414-index.html","primary_entity_key":"0001021635","primary_entity_name":"OGE ENERGY CORP."},"word_count":28725,"has_tables":true,"body_markdown":"Item 8. Financial Statements and Supplementary Data.\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED STATEMENTS OF INCOME\n\nYear Ended December 31 (In millions except per share data)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOPERATING REVENUES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenues from contracts with customers\n\n \n\n$\n\n3,190.9\n\n \n\n \n\n$\n\n2,916.6\n\n \n\n \n\n$\n\n2,607.3\n\n \n\nOther revenues\n\n \n\n \n\n69.2\n\n \n\n \n\n \n\n68.7\n\n \n\n \n\n \n\n67.0\n\n \n\nOperating revenues\n\n \n\n \n\n3,260.1\n\n \n\n \n\n \n\n2,985.3\n\n \n\n \n\n \n\n2,674.3\n\n \n\nFUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE\n\n \n\n \n\n1,259.9\n\n \n\n \n\n \n\n1,076.4\n\n \n\n \n\n \n\n911.7\n\n \n\nOPERATING EXPENSES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther operation and maintenance\n\n \n\n \n\n531.6\n\n \n\n \n\n \n\n514.4\n\n \n\n \n\n \n\n502.6\n\n \n\nDepreciation and amortization\n\n \n\n \n\n559.8\n\n \n\n \n\n \n\n539.5\n\n \n\n \n\n \n\n506.6\n\n \n\nTaxes other than income\n\n \n\n \n\n109.4\n\n \n\n \n\n \n\n109.7\n\n \n\n \n\n \n\n103.2\n\n \n\nOperating expenses\n\n \n\n \n\n1,200.8\n\n \n\n \n\n \n\n1,163.6\n\n \n\n \n\n \n\n1,112.4\n\n \n\nOPERATING INCOME\n\n \n\n \n\n799.4\n\n \n\n \n\n \n\n745.3\n\n \n\n \n\n \n\n650.2\n\n \n\nOTHER INCOME (EXPENSE)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for equity funds used during construction\n\n \n\n \n\n26.0\n\n \n\n \n\n \n\n25.5\n\n \n\n \n\n \n\n19.4\n\n \n\nOther net periodic benefit (expense) income\n\n \n\n \n\n(11.0\n\n)\n\n \n\n \n\n(2.2\n\n)\n\n \n\n \n\n5.6\n\n \n\nOther income\n\n \n\n \n\n39.4\n\n \n\n \n\n \n\n30.6\n\n \n\n \n\n \n\n48.2\n\n \n\nOther expense\n\n \n\n \n\n(23.0\n\n)\n\n \n\n \n\n(24.1\n\n)\n\n \n\n \n\n(29.0\n\n)\n\nNet other income\n\n \n\n \n\n31.4\n\n \n\n \n\n \n\n29.8\n\n \n\n \n\n \n\n44.2\n\n \n\nINTEREST EXPENSE\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest on long-term debt\n\n \n\n \n\n261.0\n\n \n\n \n\n \n\n228.3\n\n \n\n \n\n \n\n205.0\n\n \n\nAllowance for borrowed funds used during construction\n\n \n\n \n\n(15.8\n\n)\n\n \n\n \n\n(14.6\n\n)\n\n \n\n \n\n(7.1\n\n)\n\nInterest on short-term debt and other interest charges\n\n \n\n \n\n25.1\n\n \n\n \n\n \n\n40.8\n\n \n\n \n\n \n\n23.5\n\n \n\nInterest expense\n\n \n\n \n\n270.3\n\n \n\n \n\n \n\n254.5\n\n \n\n \n\n \n\n221.4\n\n \n\nINCOME BEFORE TAXES\n\n \n\n \n\n560.5\n\n \n\n \n\n \n\n520.6\n\n \n\n \n\n \n\n473.0\n\n \n\nINCOME TAX EXPENSE\n\n \n\n \n\n89.8\n\n \n\n \n\n \n\n79.1\n\n \n\n \n\n \n\n56.2\n\n \n\nNET INCOME\n\n \n\n$\n\n470.7\n\n \n\n \n\n$\n\n441.5\n\n \n\n \n\n$\n\n416.8\n\n \n\nBASIC AVERAGE COMMON SHARES OUTSTANDING\n\n \n\n \n\n201.9\n\n \n\n \n\n \n\n200.8\n\n \n\n \n\n \n\n200.3\n\n \n\nDILUTED AVERAGE COMMON SHARES OUTSTANDING\n\n \n\n \n\n202.5\n\n \n\n \n\n \n\n201.3\n\n \n\n \n\n \n\n200.9\n\n \n\nBASIC EARNINGS PER AVERAGE COMMON SHARE\n\n \n\n$\n\n2.33\n\n \n\n \n\n$\n\n2.20\n\n \n\n \n\n$\n\n2.08\n\n \n\nDILUTED EARNINGS PER AVERAGE COMMON SHARE\n\n \n\n$\n\n2.32\n\n \n\n \n\n$\n\n2.19\n\n \n\n \n\n$\n\n2.07\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n47\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNet income\n\n \n\n$\n\n470.7\n\n \n\n \n\n$\n\n441.5\n\n \n\n \n\n$\n\n416.8\n\n \n\nOther comprehensive income (loss), net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPension Plan and Restoration of Retirement Income Plan:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization of prior service cost, net of tax of $0.1, $0.1 and $0.1, respectively\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\nAmortization of deferred net loss, net of tax of $0.1, $0.1 and $0.2, respectively\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.9\n\n \n\nNet (loss) gain arising during the period, net of tax of $(0.5), $0.0 and $1.0, respectively\n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n3.3\n\n \n\nRegulatory classification of certain pension costs, net of tax of $0.0, $1.2 and $0.0, respectively\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3.9\n\n \n\n \n\n \n\n—\n\n \n\nSettlement cost, net of tax of $0.0, $0.0 and $0.4, respectively\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.2\n\n \n\nPostretirement benefit plans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization of deferred net gain, net of tax of $(0.1), $(0.1) and $(0.1), respectively\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(0.1\n\n)\n\nNet gain (loss) arising during the period, net of tax of $0.4, $0.2 and $(0.2), respectively\n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n(0.8\n\n)\n\nOther comprehensive income, net of tax\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n4.5\n\n \n\n \n\n \n\n4.7\n\n \n\nComprehensive income\n\n \n\n$\n\n470.8\n\n \n\n \n\n$\n\n446.0\n\n \n\n \n\n$\n\n421.5\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n48\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCASH FLOWS FROM OPERATING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n470.7\n\n \n\n \n\n$\n\n441.5\n\n \n\n \n\n$\n\n416.8\n\n \n\nAdjustments to reconcile net income to net cash provided from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n559.8\n\n \n\n \n\n \n\n539.5\n\n \n\n \n\n \n\n506.6\n\n \n\nDeferred income taxes and other tax credits, net\n\n \n\n \n\n59.5\n\n \n\n \n\n \n\n15.6\n\n \n\n \n\n \n\n11.6\n\n \n\nAllowance for equity funds used during construction\n\n \n\n \n\n(26.0\n\n)\n\n \n\n \n\n(25.5\n\n)\n\n \n\n \n\n(19.4\n\n)\n\nStock-based compensation expense\n\n \n\n \n\n14.0\n\n \n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n13.1\n\n \n\nRegulatory assets\n\n \n\n \n\n(66.9\n\n)\n\n \n\n \n\n(52.4\n\n)\n\n \n\n \n\n(92.1\n\n)\n\nRegulatory liabilities\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n(2.8\n\n)\n\n \n\n \n\n(12.2\n\n)\n\nOther assets\n\n \n\n \n\n(32.5\n\n)\n\n \n\n \n\n(16.8\n\n)\n\n \n\n \n\n—\n\n \n\nOther liabilities\n\n \n\n \n\n39.4\n\n \n\n \n\n \n\n30.6\n\n \n\n \n\n \n\n5.0\n\n \n\nOther\n\n \n\n \n\n(8.7\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nChange in certain current assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable and accrued unbilled revenues, net\n\n \n\n \n\n(108.8\n\n)\n\n \n\n \n\n(33.6\n\n)\n\n \n\n \n\n42.8\n\n \n\nIncome taxes receivable\n\n \n\n \n\n(37.3\n\n)\n\n \n\n \n\n18.2\n\n \n\n \n\n \n\n2.5\n\n \n\nFuel, materials and supplies inventories\n\n \n\n \n\n81.9\n\n \n\n \n\n \n\n25.7\n\n \n\n \n\n \n\n(122.8\n\n)\n\nFuel recoveries\n\n \n\n \n\n130.5\n\n \n\n \n\n \n\n(123.9\n\n)\n\n \n\n \n\n535.4\n\n \n\nOther current assets\n\n \n\n \n\n17.1\n\n \n\n \n\n \n\n(30.1\n\n)\n\n \n\n \n\n44.6\n\n \n\nAccounts payable\n\n \n\n \n\n34.9\n\n \n\n \n\n \n\n(14.7\n\n)\n\n \n\n \n\n(136.3\n\n)\n\nOther current liabilities\n\n \n\n \n\n9.0\n\n \n\n \n\n \n\n29.8\n\n \n\n \n\n \n\n36.7\n\n \n\nNet cash provided from operating activities\n\n \n\n \n\n1,137.1\n\n \n\n \n\n \n\n812.8\n\n \n\n \n\n \n\n1,232.3\n\n \n\nCASH FLOWS FROM INVESTING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCapital expenditures (less allowance for equity funds used during construction)\n\n \n\n \n\n(1,054.4\n\n)\n\n \n\n \n\n(1,090.9\n\n)\n\n \n\n \n\n(1,178.2\n\n)\n\nCost of removal and other\n\n \n\n \n\n(72.2\n\n)\n\n \n\n \n\n(70.3\n\n)\n\n \n\n \n\n(93.9\n\n)\n\nNet cash used in investing activities\n\n \n\n \n\n(1,126.6\n\n)\n\n \n\n \n\n(1,161.2\n\n)\n\n \n\n \n\n(1,272.1\n\n)\n\nCASH FLOWS FROM FINANCING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from long-term debt\n\n \n\n \n\n344.4\n\n \n\n \n\n \n\n706.3\n\n \n\n \n\n \n\n788.3\n\n \n\nPayment of long-term debt\n\n \n\n \n\n(32.6\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(1,000.1\n\n)\n\n(Decrease) increase in short-term debt\n\n \n\n \n\n(177.3\n\n)\n\n \n\n \n\n(29.9\n\n)\n\n \n\n \n\n499.2\n\n \n\nDividends paid on common stock\n\n \n\n \n\n(341.9\n\n)\n\n \n\n \n\n(338.5\n\n)\n\n \n\n \n\n(333.2\n\n)\n\nProceeds (costs) from issuance of common stock\n\n \n\n \n\n203.8\n\n \n\n \n\n \n\n17.1\n\n \n\n \n\n \n\n—\n\n \n\nCash paid for employee equity-based compensation\n\n \n\n \n\n(7.3\n\n)\n\n \n\n \n\n(6.1\n\n)\n\n \n\n \n\n(2.3\n\n)\n\nNet cash (used in) provided from financing activities\n\n \n\n \n\n(10.9\n\n)\n\n \n\n \n\n348.8\n\n \n\n \n\n \n\n(48.1\n\n)\n\nNET CHANGE IN CASH AND CASH EQUIVALENTS\n\n \n\n \n\n(0.4\n\n)\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(87.9\n\n)\n\nCASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR\n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n88.1\n\n \n\nCASH AND CASH EQUIVALENTS AT END OF YEAR\n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.6\n\n \n\n \n\n$\n\n0.2\n\n \n\nSUPPLEMENTAL CASH FLOW INFORMATION\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid during the period for:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest (net of interest capitalized of $15.8, $14.6 and $7.1, respectively)\n\n \n\n$\n\n268.7\n\n \n\n \n\n$\n\n251.1\n\n \n\n \n\n$\n\n202.4\n\n \n\nFederal income taxes (net of income tax refunds)\n\n \n\n$\n\n73.9\n\n \n\n \n\n$\n\n44.0\n\n \n\n \n\n$\n\n44.0\n\n \n\nState income taxes (net of income tax refunds)\n\n \n\n$\n\n1.2\n\n \n\n \n\n$\n\n(7.1\n\n)\n\n \n\n$\n\n(2.5\n\n)\n\nNON-CASH INVESTING AND FINANCING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPower plant long-term service agreement\n\n \n\n$\n\n3.4\n\n \n\n \n\n$\n\n6.4\n\n \n\n \n\n$\n\n0.7\n\n \n\nTinker Air Force Base distribution assets purchase\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2.6\n\n \n\n \n\n$\n\n—\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n49\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED BALANCE SHEETS\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT ASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.6\n\n \n\nAccounts receivable, less reserve of $4.1 and $2.0, respectively\n\n \n\n \n\n347.8\n\n \n\n \n\n \n\n240.6\n\n \n\nAccrued unbilled revenues\n\n \n\n \n\n76.2\n\n \n\n \n\n \n\n74.6\n\n \n\nIncome taxes receivable\n\n \n\n \n\n37.3\n\n \n\n \n\n \n\n—\n\n \n\nFuel inventories\n\n \n\n \n\n112.0\n\n \n\n \n\n \n\n148.3\n\n \n\nMaterials and supplies, at average cost\n\n \n\n \n\n212.7\n\n \n\n \n\n \n\n229.4\n\n \n\nFuel clause under recoveries\n\n \n\n \n\n—\n\n \n\n \n\n \n\n112.7\n\n \n\nOther\n\n \n\n \n\n71.7\n\n \n\n \n\n \n\n88.9\n\n \n\nTotal current assets\n\n \n\n \n\n857.9\n\n \n\n \n\n \n\n895.1\n\n \n\nOTHER PROPERTY AND INVESTMENTS\n\n \n\n \n\n \n\n \n\n \n\n \n\nOther\n\n \n\n \n\n129.4\n\n \n\n \n\n \n\n124.2\n\n \n\nTotal other property and investments\n\n \n\n \n\n129.4\n\n \n\n \n\n \n\n124.2\n\n \n\nPROPERTY, PLANT AND EQUIPMENT\n\n \n\n \n\n \n\n \n\n \n\n \n\nIn service\n\n \n\n \n\n17,203.0\n\n \n\n \n\n \n\n16,254.6\n\n \n\nConstruction work in progress\n\n \n\n \n\n744.9\n\n \n\n \n\n \n\n814.2\n\n \n\nTotal property, plant and equipment\n\n \n\n \n\n17,947.9\n\n \n\n \n\n \n\n17,068.8\n\n \n\nLess: accumulated depreciation\n\n \n\n \n\n5,217.5\n\n \n\n \n\n \n\n4,982.2\n\n \n\nNet property, plant and equipment\n\n \n\n \n\n12,730.4\n\n \n\n \n\n \n\n12,086.6\n\n \n\nDEFERRED CHARGES AND OTHER ASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nRegulatory assets\n\n \n\n \n\n557.2\n\n \n\n \n\n \n\n568.1\n\n \n\nOther\n\n \n\n \n\n95.6\n\n \n\n \n\n \n\n42.0\n\n \n\nTotal deferred charges and other assets\n\n \n\n \n\n652.8\n\n \n\n \n\n \n\n610.1\n\n \n\nTOTAL ASSETS\n\n \n\n$\n\n14,370.5\n\n \n\n \n\n$\n\n13,716.0\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n50\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED BALANCE SHEETS (Continued)\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nLIABILITIES AND STOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT LIABILITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\nShort-term debt\n\n \n\n$\n\n292.0\n\n \n\n \n\n$\n\n469.3\n\n \n\nAccounts payable\n\n \n\n \n\n350.6\n\n \n\n \n\n \n\n305.7\n\n \n\nDividends payable\n\n \n\n \n\n87.6\n\n \n\n \n\n \n\n84.7\n\n \n\nCustomer deposits\n\n \n\n \n\n127.2\n\n \n\n \n\n \n\n111.1\n\n \n\nAccrued taxes\n\n \n\n \n\n53.0\n\n \n\n \n\n \n\n58.8\n\n \n\nAccrued interest\n\n \n\n \n\n68.8\n\n \n\n \n\n \n\n63.8\n\n \n\nAccrued compensation\n\n \n\n \n\n54.3\n\n \n\n \n\n \n\n53.0\n\n \n\nLong-term debt due within one year\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\nFuel clause over recoveries\n\n \n\n \n\n27.1\n\n \n\n \n\n \n\n9.3\n\n \n\nOther\n\n \n\n \n\n33.5\n\n \n\n \n\n \n\n41.7\n\n \n\nTotal current liabilities\n\n \n\n \n\n1,094.1\n\n \n\n \n\n \n\n1,229.8\n\n \n\nLONG-TERM DEBT\n\n \n\n \n\n5,369.2\n\n \n\n \n\n \n\n5,020.9\n\n \n\nDEFERRED CREDITS AND OTHER LIABILITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccrued benefit obligations\n\n \n\n \n\n164.4\n\n \n\n \n\n \n\n170.9\n\n \n\nDeferred income taxes\n\n \n\n \n\n1,489.3\n\n \n\n \n\n \n\n1,371.1\n\n \n\nDeferred investment tax credits\n\n \n\n \n\n9.8\n\n \n\n \n\n \n\n10.6\n\n \n\nRegulatory liabilities\n\n \n\n \n\n957.1\n\n \n\n \n\n \n\n1,016.4\n\n \n\nOther\n\n \n\n \n\n309.3\n\n \n\n \n\n \n\n255.4\n\n \n\nTotal deferred credits and other liabilities\n\n \n\n \n\n2,929.9\n\n \n\n \n\n \n\n2,824.4\n\n \n\nTotal liabilities\n\n \n\n \n\n9,393.2\n\n \n\n \n\n \n\n9,075.1\n\n \n\nCOMMITMENTS AND CONTINGENCIES (NOTE 13)\n\n \n\n \n\n \n\n \n\n \n\n \n\nSTOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stockholders' equity\n\n \n\n \n\n1,378.4\n\n \n\n \n\n \n\n1,167.9\n\n \n\nRetained earnings\n\n \n\n \n\n3,601.5\n\n \n\n \n\n \n\n3,475.7\n\n \n\nAccumulated other comprehensive loss, net of tax\n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n(2.7\n\n)\n\nTotal stockholders' equity\n\n \n\n \n\n4,977.3\n\n \n\n \n\n \n\n4,640.9\n\n \n\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\n\n \n\n$\n\n14,370.5\n\n \n\n \n\n$\n\n13,716.0\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n51\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED STATEMENTS OF CAPITALIZATION\n\nDecember 31 (In millions except per share data)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nSTOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stock, par value $0.01 per share; authorized 450.0 shares; and outstanding 206.1 shares and 201.0 shares, respectively\n\n \n\n$\n\n2.1\n\n \n\n \n\n$\n\n2.0\n\n \n\nPremium on common stock\n\n \n\n \n\n1,376.3\n\n \n\n \n\n \n\n1,165.9\n\n \n\nRetained earnings\n\n \n\n \n\n3,601.5\n\n \n\n \n\n \n\n3,475.7\n\n \n\nAccumulated other comprehensive loss, net of tax\n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n(2.7\n\n)\n\nTotal stockholders' equity\n\n \n\n \n\n4,977.3\n\n \n\n \n\n \n\n4,640.9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLONG-TERM DEBT\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSERIES\n\nDUE DATE\n\n \n\n \n\n \n\n \n\n \n\n \n\nSenior Notes - OGE Energy\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n4.89% - 5.53%\n\nTerm Loan Due May 24, 2027\n\n \n\n \n\n60.0\n\n \n\n \n\n \n\n60.0\n\n \n\n5.45%\n\nSenior Notes, Series Due May 15, 2029\n\n \n\n \n\n350.0\n\n \n\n \n\n \n\n350.0\n\n \n\nSenior Notes - OG&E\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n6.65%\n\nSenior Notes, Series Due July 15, 2027\n\n \n\n \n\n125.0\n\n \n\n \n\n \n\n125.0\n\n \n\n6.50%\n\nSenior Notes, Series Due April 15, 2028\n\n \n\n \n\n100.0\n\n \n\n \n\n \n\n100.0\n\n \n\n3.80%\n\nSenior Notes, Series Due August 15, 2028\n\n \n\n \n\n400.0\n\n \n\n \n\n \n\n400.0\n\n \n\n3.30%\n\nSenior Notes, Series Due March 15, 2030\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n3.25%\n\nSenior Notes, Series Due April 1, 2030\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n5.40%\n\nSenior Notes, Series Due January 15, 2033\n\n \n\n \n\n450.0\n\n \n\n \n\n \n\n450.0\n\n \n\n5.75%\n\nSenior Notes, Series Due January 15, 2036\n\n \n\n \n\n110.0\n\n \n\n \n\n \n\n110.0\n\n \n\n6.45%\n\nSenior Notes, Series Due February 1, 2038\n\n \n\n \n\n200.0\n\n \n\n \n\n \n\n200.0\n\n \n\n5.85%\n\nSenior Notes, Series Due June 1, 2040\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n5.25%\n\nSenior Notes, Series Due May 15, 2041\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n3.90%\n\nSenior Notes, Series Due May 1, 2043\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.55%\n\nSenior Notes, Series Due March 15, 2044\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.00%\n\nSenior Notes, Series Due December 15, 2044\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.15%\n\nSenior Notes, Series Due April 1, 2047\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n3.85%\n\nSenior Notes, Series Due August 15, 2047\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n5.60%\n\nSenior Notes, Series Due April 1, 2053\n\n \n\n \n\n700.0\n\n \n\n \n\n \n\n700.0\n\n \n\n5.80%\n\nSenior Notes, Series Due April 1, 2055\n\n \n\n \n\n350.0\n\n \n\n \n\n \n\n—\n\n \n\n4.00%\n\nTinker Debt, Due August 31, 2062\n\n \n\n \n\n11.5\n\n \n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther Bonds - OG&E\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMuskogee Industrial Authority, January 1, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\n1.65% - 4.60%\n\nMuskogee Industrial Authority, June 1, 2027\n\n \n\n \n\n56.0\n\n \n\n \n\n \n\n56.0\n\n \n\n1.80% - 4.60%\n\nGarfield Industrial Authority, October 1, 2039\n\n \n\n \n\n47.0\n\n \n\n \n\n \n\n47.0\n\n \n\nUnamortized debt expense\n\n \n\n \n\n(33.4\n\n)\n\n \n\n \n\n(32.9\n\n)\n\nUnamortized discount\n\n \n\n \n\n(6.9\n\n)\n\n \n\n \n\n(5.9\n\n)\n\nTotal long-term debt\n\n \n\n \n\n5,369.2\n\n \n\n \n\n \n\n5,053.3\n\n \n\nLess: long-term debt due within one year\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\nTotal long-term debt (excluding long-term debt due within one year)\n\n \n\n \n\n5,369.2\n\n \n\n \n\n \n\n5,020.9\n\n \n\nTotal capitalization (including long-term debt due within one year)\n\n \n\n$\n\n10,346.5\n\n \n\n \n\n$\n\n9,694.2\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n52\n\n \n\nOGE ENERGY CORP.\n\nCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY\n\nCommon Stock\n\n \n\nTreasury Stock\n\n \n\nPremium on Common\n\n \n\nRetained\n\n \n\nAccumulated Other Comprehensive (Loss)\n\n \n\n \n\n \n\n(In millions)\n\nShares\n\n \n\nValue\n\n \n\nShares\n\n \n\nValue\n\n \n\nStock\n\n \n\nEarnings\n\n \n\nIncome\n\n \n\nTotal\n\n \n\nBalance at December 31, 2022\n\n \n\n200.2\n\n \n\n$\n\n2.0\n\n \n\n \n\n—\n\n \n\n$\n\n(0.1\n\n)\n\n$\n\n1,132.5\n\n \n\n$\n\n3,290.9\n\n \n\n$\n\n(11.9\n\n)\n\n$\n\n4,413.4\n\n \n\nNet income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n416.8\n\n \n\n \n\n—\n\n \n\n \n\n416.8\n\n \n\nOther comprehensive income, net of tax\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4.7\n\n \n\n \n\n4.7\n\n \n\nDividends declared on common stock ($1.6646 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(334.0\n\n)\n\n \n\n—\n\n \n\n \n\n(334.0\n\n)\n\nStock-based compensation\n\n \n\n0.1\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n0.1\n\n \n\n \n\n10.6\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n10.7\n\n \n\nBalance at December 31, 2023\n\n \n\n200.3\n\n \n\n$\n\n2.0\n\n \n\n \n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n1,143.1\n\n \n\n$\n\n3,373.7\n\n \n\n$\n\n(7.2\n\n)\n\n$\n\n4,511.6\n\n \n\nNet income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n441.5\n\n \n\n \n\n—\n\n \n\n \n\n441.5\n\n \n\nOther comprehensive income, net of tax\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4.5\n\n \n\n \n\n4.5\n\n \n\nDividends declared on common stock ($1.6789 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(339.5\n\n)\n\n \n\n—\n\n \n\n \n\n(339.5\n\n)\n\nIssuance of common stock\n\n \n\n0.5\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n17.1\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n17.1\n\n \n\nStock-based compensation\n\n \n\n0.2\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n5.7\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n5.7\n\n \n\nBalance at December 31, 2024\n\n \n\n201.0\n\n \n\n$\n\n2.0\n\n \n\n \n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n1,165.9\n\n \n\n$\n\n3,475.7\n\n \n\n$\n\n(2.7\n\n)\n\n$\n\n4,640.9\n\n \n\nNet income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n470.7\n\n \n\n \n\n—\n\n \n\n \n\n470.7\n\n \n\nOther comprehensive income, net of tax\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n0.1\n\n \n\n \n\n0.1\n\n \n\nDividends declared on common stock ($1.6925 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(344.9\n\n)\n\n \n\n—\n\n \n\n \n\n(344.9\n\n)\n\nIssuance of common stock\n\n \n\n4.9\n\n \n\n \n\n0.1\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n203.7\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n203.8\n\n \n\nStock-based compensation\n\n \n\n0.2\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n6.7\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n6.7\n\n \n\nBalance at December 31, 2025\n\n \n\n206.1\n\n \n\n$\n\n2.1\n\n \n\n \n\n—\n\n \n\n$\n\n—\n\n \n\n$\n\n1,376.3\n\n \n\n$\n\n3,601.5\n\n \n\n$\n\n(2.6\n\n)\n\n$\n\n4,977.3\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n53\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nSTATEMENTS OF INCOME AND COMPREHENSIVE INCOME\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOPERATING REVENUES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenues from contracts with customers\n\n \n\n$\n\n3,190.9\n\n \n\n \n\n$\n\n2,916.6\n\n \n\n \n\n$\n\n2,607.3\n\n \n\nOther revenues\n\n \n\n \n\n69.2\n\n \n\n \n\n \n\n68.7\n\n \n\n \n\n \n\n67.0\n\n \n\nOperating revenues\n\n \n\n \n\n3,260.1\n\n \n\n \n\n \n\n2,985.3\n\n \n\n \n\n \n\n2,674.3\n\n \n\nFUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE\n\n \n\n \n\n1,259.9\n\n \n\n \n\n \n\n1,076.4\n\n \n\n \n\n \n\n911.7\n\n \n\nOPERATING EXPENSES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther operation and maintenance\n\n \n\n \n\n531.0\n\n \n\n \n\n \n\n514.1\n\n \n\n \n\n \n\n505.0\n\n \n\nDepreciation and amortization\n\n \n\n \n\n559.8\n\n \n\n \n\n \n\n539.5\n\n \n\n \n\n \n\n506.6\n\n \n\nTaxes other than income\n\n \n\n \n\n109.4\n\n \n\n \n\n \n\n109.7\n\n \n\n \n\n \n\n99.4\n\n \n\nOperating expenses\n\n \n\n \n\n1,200.2\n\n \n\n \n\n \n\n1,163.3\n\n \n\n \n\n \n\n1,111.0\n\n \n\nOPERATING INCOME\n\n \n\n \n\n800.0\n\n \n\n \n\n \n\n745.6\n\n \n\n \n\n \n\n651.6\n\n \n\nOTHER INCOME (EXPENSE)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for equity funds used during construction\n\n \n\n \n\n26.0\n\n \n\n \n\n \n\n25.5\n\n \n\n \n\n \n\n19.4\n\n \n\nOther net periodic benefit (expense) income\n\n \n\n \n\n(10.3\n\n)\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n6.5\n\n \n\nOther income\n\n \n\n \n\n17.3\n\n \n\n \n\n \n\n12.5\n\n \n\n \n\n \n\n23.9\n\n \n\nOther expense\n\n \n\n \n\n(2.6\n\n)\n\n \n\n \n\n(4.5\n\n)\n\n \n\n \n\n(6.3\n\n)\n\nNet other income\n\n \n\n \n\n30.4\n\n \n\n \n\n \n\n31.9\n\n \n\n \n\n \n\n43.5\n\n \n\nINTEREST EXPENSE\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest on long-term debt\n\n \n\n \n\n237.8\n\n \n\n \n\n \n\n212.0\n\n \n\n \n\n \n\n200.4\n\n \n\nAllowance for borrowed funds used during construction\n\n \n\n \n\n(15.8\n\n)\n\n \n\n \n\n(14.6\n\n)\n\n \n\n \n\n(7.1\n\n)\n\nInterest on short-term debt and other interest charges\n\n \n\n \n\n3.5\n\n \n\n \n\n \n\n17.0\n\n \n\n \n\n \n\n6.6\n\n \n\nInterest expense\n\n \n\n \n\n225.5\n\n \n\n \n\n \n\n214.4\n\n \n\n \n\n \n\n199.9\n\n \n\nINCOME BEFORE TAXES\n\n \n\n \n\n604.9\n\n \n\n \n\n \n\n563.1\n\n \n\n \n\n \n\n495.2\n\n \n\nINCOME TAX EXPENSE\n\n \n\n \n\n105.1\n\n \n\n \n\n \n\n93.2\n\n \n\n \n\n \n\n68.8\n\n \n\nNET INCOME\n\n \n\n \n\n499.8\n\n \n\n \n\n \n\n469.9\n\n \n\n \n\n \n\n426.4\n\n \n\nOther comprehensive income, net of tax\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCOMPREHENSIVE INCOME\n\n \n\n$\n\n499.8\n\n \n\n \n\n$\n\n469.9\n\n \n\n \n\n$\n\n426.4\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n54\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nSTATEMENTS OF CASH FLOWS\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCASH FLOWS FROM OPERATING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n499.8\n\n \n\n \n\n$\n\n469.9\n\n \n\n \n\n$\n\n426.4\n\n \n\nAdjustments to reconcile net income to net cash provided from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation and amortization\n\n \n\n \n\n559.8\n\n \n\n \n\n \n\n539.5\n\n \n\n \n\n \n\n506.6\n\n \n\nDeferred income taxes and other tax credits, net\n\n \n\n \n\n61.7\n\n \n\n \n\n \n\n16.8\n\n \n\n \n\n \n\n15.4\n\n \n\nAllowance for equity funds used during construction\n\n \n\n \n\n(26.0\n\n)\n\n \n\n \n\n(25.5\n\n)\n\n \n\n \n\n(19.4\n\n)\n\nStock-based compensation expense\n\n \n\n \n\n14.0\n\n \n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n3.1\n\n \n\nRegulatory assets\n\n \n\n \n\n(66.9\n\n)\n\n \n\n \n\n(52.4\n\n)\n\n \n\n \n\n(92.1\n\n)\n\nRegulatory liabilities\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n(2.8\n\n)\n\n \n\n \n\n(12.2\n\n)\n\nOther assets\n\n \n\n \n\n(37.9\n\n)\n\n \n\n \n\n(9.8\n\n)\n\n \n\n \n\n4.7\n\n \n\nOther liabilities\n\n \n\n \n\n36.8\n\n \n\n \n\n \n\n28.0\n\n \n\n \n\n \n\n0.3\n\n \n\nChange in certain current assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable and accrued unbilled revenues, net\n\n \n\n \n\n(108.7\n\n)\n\n \n\n \n\n(33.2\n\n)\n\n \n\n \n\n42.1\n\n \n\nFuel, materials and supplies inventories\n\n \n\n \n\n81.9\n\n \n\n \n\n \n\n25.7\n\n \n\n \n\n \n\n(122.8\n\n)\n\nFuel recoveries\n\n \n\n \n\n130.5\n\n \n\n \n\n \n\n(123.9\n\n)\n\n \n\n \n\n535.4\n\n \n\nOther current assets\n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n(36.5\n\n)\n\n \n\n \n\n51.1\n\n \n\nAccounts payable\n\n \n\n \n\n66.4\n\n \n\n \n\n \n\n(0.3\n\n)\n\n \n\n \n\n(131.1\n\n)\n\nIncome taxes payable - parent\n\n \n\n \n\n(47.6\n\n)\n\n \n\n \n\n23.8\n\n \n\n \n\n \n\n9.4\n\n \n\nOther current liabilities\n\n \n\n \n\n15.2\n\n \n\n \n\n \n\n30.8\n\n \n\n \n\n \n\n34.6\n\n \n\nNet cash provided from operating activities\n\n \n\n \n\n1,191.2\n\n \n\n \n\n \n\n861.8\n\n \n\n \n\n \n\n1,251.5\n\n \n\nCASH FLOWS FROM INVESTING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCapital expenditures (less allowance for equity funds used during construction)\n\n \n\n \n\n(1,054.4\n\n)\n\n \n\n \n\n(1,090.9\n\n)\n\n \n\n \n\n(1,178.2\n\n)\n\nCost of removal\n\n \n\n \n\n(70.3\n\n)\n\n \n\n \n\n(67.5\n\n)\n\n \n\n \n\n(91.0\n\n)\n\nNet cash used in investing activities\n\n \n\n \n\n(1,124.7\n\n)\n\n \n\n \n\n(1,158.4\n\n)\n\n \n\n \n\n(1,269.2\n\n)\n\nCASH FLOWS FROM FINANCING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProceeds from long-term debt\n\n \n\n \n\n344.4\n\n \n\n \n\n \n\n350.5\n\n \n\n \n\n \n\n788.8\n\n \n\nPayment of long-term debt\n\n \n\n \n\n(32.6\n\n)\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(500.1\n\n)\n\nChanges in advances with parent\n\n \n\n \n\n(148.3\n\n)\n\n \n\n \n\n(53.8\n\n)\n\n \n\n \n\n229.2\n\n \n\nCapital contribution from OGE Energy\n\n \n\n \n\n150.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nDividends paid on common stock\n\n \n\n \n\n(380.0\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(500.0\n\n)\n\nNet cash (used in) provided from financing activities\n\n \n\n \n\n(66.5\n\n)\n\n \n\n \n\n296.6\n\n \n\n \n\n \n\n17.9\n\n \n\nNET CHANGE IN CASH AND CASH EQUIVALENTS\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.2\n\n \n\nCASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR\n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n—\n\n \n\nCASH AND CASH EQUIVALENTS AT END OF YEAR\n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.2\n\n \n\nSUPPLEMENTAL CASH FLOW INFORMATION\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid during the period for:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest (net of interest capitalized of $15.8, $14.6 and $7.1, respectively)\n\n \n\n$\n\n216.9\n\n \n\n \n\n$\n\n206.3\n\n \n\n \n\n$\n\n180.7\n\n \n\nFederal income taxes (net of income tax refunds)\n\n \n\n$\n\n90.7\n\n \n\n \n\n$\n\n51.9\n\n \n\n \n\n$\n\n43.5\n\n \n\nState income taxes (net of income tax refunds)\n\n \n\n$\n\n1.2\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.7\n\n \n\nNON-CASH INVESTING AND FINANCING ACTIVITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPower plant long-term service agreement\n\n \n\n$\n\n3.4\n\n \n\n \n\n$\n\n6.4\n\n \n\n \n\n$\n\n0.7\n\n \n\nTinker Air Force Base distribution assets purchase\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2.6\n\n \n\n \n\n$\n\n—\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n55\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nBALANCE SHEETS\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT ASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.2\n\n \n\nAccounts receivable, less reserve of $4.1 and $2.0, respectively\n\n \n\n \n\n347.2\n\n \n\n \n\n \n\n240.1\n\n \n\nAccrued unbilled revenues\n\n \n\n \n\n76.2\n\n \n\n \n\n \n\n74.6\n\n \n\nAdvances to parent\n\n \n\n \n\n78.3\n\n \n\n \n\n \n\n—\n\n \n\nFuel inventories\n\n \n\n \n\n112.0\n\n \n\n \n\n \n\n148.3\n\n \n\nMaterials and supplies, at average cost\n\n \n\n \n\n212.7\n\n \n\n \n\n \n\n229.4\n\n \n\nFuel clause under recoveries\n\n \n\n \n\n—\n\n \n\n \n\n \n\n112.7\n\n \n\nOther\n\n \n\n \n\n71.5\n\n \n\n \n\n \n\n83.2\n\n \n\nTotal current assets\n\n \n\n \n\n898.1\n\n \n\n \n\n \n\n888.5\n\n \n\nOTHER PROPERTY AND INVESTMENTS\n\n \n\n \n\n4.1\n\n \n\n \n\n \n\n4.5\n\n \n\nPROPERTY, PLANT AND EQUIPMENT\n\n \n\n \n\n \n\n \n\n \n\n \n\nIn service\n\n \n\n \n\n17,196.9\n\n \n\n \n\n \n\n16,248.5\n\n \n\nConstruction work in progress\n\n \n\n \n\n744.9\n\n \n\n \n\n \n\n814.2\n\n \n\nTotal property, plant and equipment\n\n \n\n \n\n17,941.8\n\n \n\n \n\n \n\n17,062.7\n\n \n\nLess: accumulated depreciation\n\n \n\n \n\n5,217.5\n\n \n\n \n\n \n\n4,982.2\n\n \n\nNet property, plant and equipment\n\n \n\n \n\n12,724.3\n\n \n\n \n\n \n\n12,080.5\n\n \n\nDEFERRED CHARGES AND OTHER ASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nRegulatory assets\n\n \n\n \n\n557.2\n\n \n\n \n\n \n\n568.1\n\n \n\nOther\n\n \n\n \n\n93.8\n\n \n\n \n\n \n\n39.7\n\n \n\nTotal deferred charges and other assets\n\n \n\n \n\n651.0\n\n \n\n \n\n \n\n607.8\n\n \n\nTOTAL ASSETS\n\n \n\n$\n\n14,277.5\n\n \n\n \n\n$\n\n13,581.3\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n56\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nBALANCE SHEETS (Continued)\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nLIABILITIES AND STOCKHOLDER'S EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCURRENT LIABILITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n348.7\n\n \n\n \n\n$\n\n272.2\n\n \n\nAdvances from parent\n\n \n\n \n\n—\n\n \n\n \n\n \n\n247.6\n\n \n\nCustomer deposits\n\n \n\n \n\n127.2\n\n \n\n \n\n \n\n111.1\n\n \n\nAccrued taxes\n\n \n\n \n\n52.3\n\n \n\n \n\n \n\n51.4\n\n \n\nAccrued interest\n\n \n\n \n\n66.4\n\n \n\n \n\n \n\n61.4\n\n \n\nAccrued compensation\n\n \n\n \n\n54.3\n\n \n\n \n\n \n\n53.0\n\n \n\nLong-term debt due within one year\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\nFuel clause over recoveries\n\n \n\n \n\n27.1\n\n \n\n \n\n \n\n9.3\n\n \n\nOther\n\n \n\n \n\n33.5\n\n \n\n \n\n \n\n41.8\n\n \n\nTotal current liabilities\n\n \n\n \n\n709.5\n\n \n\n \n\n \n\n880.2\n\n \n\nLONG-TERM DEBT\n\n \n\n \n\n4,961.7\n\n \n\n \n\n \n\n4,614.3\n\n \n\nDEFERRED CREDITS AND OTHER LIABILITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccrued benefit obligations\n\n \n\n \n\n93.2\n\n \n\n \n\n \n\n102.2\n\n \n\nDeferred income taxes\n\n \n\n \n\n1,531.3\n\n \n\n \n\n \n\n1,410.7\n\n \n\nDeferred investment tax credits\n\n \n\n \n\n9.8\n\n \n\n \n\n \n\n10.6\n\n \n\nRegulatory liabilities\n\n \n\n \n\n957.1\n\n \n\n \n\n \n\n1,016.4\n\n \n\nOther\n\n \n\n \n\n274.7\n\n \n\n \n\n \n\n220.5\n\n \n\nTotal deferred credits and other liabilities\n\n \n\n \n\n2,866.1\n\n \n\n \n\n \n\n2,760.4\n\n \n\nTotal liabilities\n\n \n\n \n\n8,537.3\n\n \n\n \n\n \n\n8,254.9\n\n \n\nCOMMITMENTS AND CONTINGENCIES (NOTE 13)\n\n \n\n \n\n \n\n \n\n \n\n \n\nSTOCKHOLDER'S EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stockholder's equity\n\n \n\n \n\n1,753.5\n\n \n\n \n\n \n\n1,589.5\n\n \n\nRetained earnings\n\n \n\n \n\n3,986.7\n\n \n\n \n\n \n\n3,736.9\n\n \n\nTotal stockholder's equity\n\n \n\n \n\n5,740.2\n\n \n\n \n\n \n\n5,326.4\n\n \n\nTOTAL LIABILITIES AND STOCKHOLDER'S EQUITY\n\n \n\n$\n\n14,277.5\n\n \n\n \n\n$\n\n13,581.3\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n57\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nSTATEMENTS OF CAPITALIZATION\n\nDecember 31 (In millions except per share data)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nSTOCKHOLDER'S EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stock, par value $2.50 per share; authorized 100.0 shares; and outstanding 40.4 shares and 40.4 shares, respectively\n\n \n\n$\n\n100.9\n\n \n\n \n\n$\n\n100.9\n\n \n\nPremium on common stock\n\n \n\n \n\n1,652.6\n\n \n\n \n\n \n\n1,488.6\n\n \n\nRetained earnings\n\n \n\n \n\n3,986.7\n\n \n\n \n\n \n\n3,736.9\n\n \n\nTotal stockholder's equity\n\n \n\n \n\n5,740.2\n\n \n\n \n\n \n\n5,326.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLONG-TERM DEBT\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSERIES\n\n \n\nDUE DATE\n\n \n\n \n\n \n\n \n\n \n\n \n\nSenior Notes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n6.65%\n\n \n\nSenior Notes, Series Due July 15, 2027\n\n \n\n \n\n125.0\n\n \n\n \n\n \n\n125.0\n\n \n\n6.50%\n\n \n\nSenior Notes, Series Due April 15, 2028\n\n \n\n \n\n100.0\n\n \n\n \n\n \n\n100.0\n\n \n\n3.80%\n\n \n\nSenior Notes, Series Due August 15, 2028\n\n \n\n \n\n400.0\n\n \n\n \n\n \n\n400.0\n\n \n\n3.30%\n\n \n\nSenior Notes, Series Due March 15, 2030\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n3.25%\n\n \n\nSenior Notes, Series Due April 1, 2030\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n5.40%\n\n \n\nSenior Notes, Series Due January 15, 2033\n\n \n\n \n\n450.0\n\n \n\n \n\n \n\n450.0\n\n \n\n5.75%\n\n \n\nSenior Notes, Series Due January 15, 2036\n\n \n\n \n\n110.0\n\n \n\n \n\n \n\n110.0\n\n \n\n6.45%\n\n \n\nSenior Notes, Series Due February 1, 2038\n\n \n\n \n\n200.0\n\n \n\n \n\n \n\n200.0\n\n \n\n5.85%\n\n \n\nSenior Notes, Series Due June 1, 2040\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n5.25%\n\n \n\nSenior Notes, Series Due May 15, 2041\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n3.90%\n\n \n\nSenior Notes, Series Due May 1, 2043\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.55%\n\n \n\nSenior Notes, Series Due March 15, 2044\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.00%\n\n \n\nSenior Notes, Series Due December 15, 2044\n\n \n\n \n\n250.0\n\n \n\n \n\n \n\n250.0\n\n \n\n4.15%\n\n \n\nSenior Notes, Series Due April 1, 2047\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n3.85%\n\n \n\nSenior Notes, Series Due August 15, 2047\n\n \n\n \n\n300.0\n\n \n\n \n\n \n\n300.0\n\n \n\n5.60%\n\n \n\nSenior Notes, Series Due April 1, 2053\n\n \n\n \n\n700.0\n\n \n\n \n\n \n\n700.0\n\n \n\n5.80%\n\n \n\nSenior Notes, Series Due April 1, 2055\n\n \n\n \n\n350.0\n\n \n\n \n\n \n\n—\n\n \n\n4.00%\n\n \n\nTinker Debt, Due August 31, 2062\n\n \n\n \n\n11.5\n\n \n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther Bonds\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMuskogee Industrial Authority, January 1, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\n1.65% - 4.60%\n\n \n\nMuskogee Industrial Authority, June 1, 2027\n\n \n\n \n\n56.0\n\n \n\n \n\n \n\n56.0\n\n \n\n1.80% - 4.60%\n\n \n\nGarfield Industrial Authority, October 1, 2039\n\n \n\n \n\n47.0\n\n \n\n \n\n \n\n47.0\n\n \n\nUnamortized debt expense\n\n \n\n \n\n \n\n \n\n(31.2\n\n)\n\n \n\n \n\n(29.9\n\n)\n\nUnamortized discount\n\n \n\n \n\n \n\n(6.6\n\n)\n\n \n\n \n\n(5.5\n\n)\n\nTotal long-term debt\n\n \n\n \n\n \n\n4,961.7\n\n \n\n \n\n \n\n4,646.7\n\n \n\nLess: long-term debt due within one year\n\n \n\n \n\n—\n\n \n\n \n\n \n\n32.4\n\n \n\nTotal long-term debt (excluding long-term debt due within one year)\n\n \n\n \n\n4,961.7\n\n \n\n \n\n \n\n4,614.3\n\n \n\nTotal capitalization (including long-term debt due within one year)\n\n \n\n$\n\n10,701.9\n\n \n\n \n\n$\n\n9,973.1\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n58\n\n \n\nOKLAHOMA GAS AND ELECTRIC COMPANY\n\nSTATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY\n\n \n\n \n\nCommon Stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(In millions)\n\n \n\nShares Outstanding\n\n \n\n \n\nValue\n\n \n\n \n\nPremium on Common Stock\n\n \n\n \n\nRetained Earnings\n\n \n\n \n\nTotal\n\n \n\nBalance at December 31, 2022\n\n \n\n \n\n40.4\n\n \n\n \n\n$\n\n100.9\n\n \n\n \n\n$\n\n1,473.7\n\n \n\n \n\n$\n\n3,470.6\n\n \n\n \n\n$\n\n5,045.2\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n426.4\n\n \n\n \n\n \n\n426.4\n\n \n\nDividends declared on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(500.0\n\n)\n\n \n\n \n\n(500.0\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3.1\n\n \n\nBalance at December 31, 2023\n\n \n\n \n\n40.4\n\n \n\n \n\n$\n\n100.9\n\n \n\n \n\n$\n\n1,476.8\n\n \n\n \n\n$\n\n3,397.0\n\n \n\n \n\n$\n\n4,974.7\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n469.9\n\n \n\n \n\n \n\n469.9\n\n \n\nDividends declared on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(130.0\n\n)\n\n \n\n \n\n(130.0\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n11.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n11.8\n\n \n\nBalance at December 31, 2024\n\n \n\n \n\n40.4\n\n \n\n \n\n$\n\n100.9\n\n \n\n \n\n$\n\n1,488.6\n\n \n\n \n\n$\n\n3,736.9\n\n \n\n \n\n$\n\n5,326.4\n\n \n\nNet income\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n499.8\n\n \n\n \n\n \n\n499.8\n\n \n\nCapital contribution from OGE Energy\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n150.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n150.0\n\n \n\nDividends declared on common stock\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(250.0\n\n)\n\n \n\n \n\n(250.0\n\n)\n\nStock-based compensation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n14.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n14.0\n\n \n\nBalance at December 31, 2025\n\n \n\n \n\n40.4\n\n \n\n \n\n$\n\n100.9\n\n \n\n \n\n$\n\n1,652.6\n\n \n\n \n\n$\n\n3,986.7\n\n \n\n \n\n$\n\n5,740.2\n\n \n\n \n\nThe accompanying Combined Notes to Financial Statements are an integral part hereof.\n\n59\n\n \n\nCOMBINED NOTES TO FINANCIAL STATEMENTS\n\n \n\nIndex of Combined Notes to Financial Statements\n\n \n\nThe Combined Notes to the Financial Statements are a combined presentation for OGE Energy and OG&E. The following table indicates the Registrant(s) to which each Note applies.\n\n \n\n \n\nOGE Energy\n\n \n\nOG&E\n\n[Note 1. Summary of Significant Accounting Policies](#section122)\n\nX\n\n \n\nX\n\n[Note 2. Accounting Pronouncements](#section145)\n\nX\n\n \n\nX\n\n[Note 3. Revenue Recognition](#revenue)\n\nX\n\n \n\nX\n\n[Note 4. Leases](#section147)\n\nX\n\n \n\nX\n\n[Note 5. Fair Value Measurements](#section150)\n\nX\n\n \n\nX\n\n[Note 6. Stock-Based Compensation](#section152)\n\nX\n\n \n\nX\n\n[Note 7. Income Taxes](#section153)\n\nX\n\n \n\nX\n\n[Note 8. Common Equity](#section154)\n\nX\n\n \n\nX\n\n[Note 9. Long-Term Debt](#section155)\n\nX\n\n \n\nX\n\n[Note 10. Credit Facilities and Short-Term Debt](#section156)\n\nX\n\n \n\nX\n\n[Note 11. Retirement Plans and Postretirement Benefit Plans](#section157)\n\nX\n\n \n\nX\n\n[Note 12. Report of Business Segments](#section158)\n\nX\n\n \n\n \n\n[Note 13. Commitments and Contingencies](#section159)\n\nX\n\n \n\nX\n\n[Note 14. Rate Matters and Regulation](#section160)\n\nX\n\n \n\nX\n\n \n\n1. Summary of Significant Accounting Policies\n\n \n\nOrganization\n\n \n\nOGE 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.\n\n \n\nThe accounts of OGE Energy and its wholly-owned subsidiaries, including OG&E, are included in OGE Energy's consolidated financial statements. All intercompany transactions and balances are eliminated in such consolidation.\n\n \n\nAccounting Records\n\n \n\nThe 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.\n\n \n\nOG&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.\n\n60\n\n \n\n \n\nThe following table presents a summary of OG&E's regulatory assets and liabilities.\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nREGULATORY ASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\nSPP cost tracker under recoveries (A)\n\n \n\n$\n\n7.1\n\n \n\n \n\n$\n\n—\n\n \n\nOklahoma fuel clause under recoveries\n\n \n\n \n\n—\n\n \n\n \n\n \n\n112.7\n\n \n\nOklahoma Energy Efficiency Rider under recoveries (A)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n7.0\n\n \n\nOther (A)\n\n \n\n \n\n4.3\n\n \n\n \n\n \n\n3.8\n\n \n\nTotal current regulatory assets\n\n \n\n$\n\n11.4\n\n \n\n \n\n$\n\n123.5\n\n \n\nNon-current:\n\n \n\n \n\n \n\n \n\n \n\n \n\nOklahoma deferred storm expenses\n\n \n\n$\n\n224.7\n\n \n\n \n\n$\n\n244.3\n\n \n\nPension tracker\n\n \n\n \n\n88.7\n\n \n\n \n\n \n\n94.7\n\n \n\nBenefit obligations regulatory asset\n\n \n\n \n\n85.6\n\n \n\n \n\n \n\n90.8\n\n \n\nArkansas Winter Storm Uri costs\n\n \n\n \n\n54.2\n\n \n\n \n\n \n\n63.0\n\n \n\nOklahoma SB 998 deferred costs, net\n\n \n\n \n\n22.9\n\n \n\n \n\n \n\n—\n\n \n\nOklahoma SAP S/4 HANA deferred expenses\n\n \n\n \n\n16.5\n\n \n\n \n\n \n\n14.3\n\n \n\nSooner Dry Scrubbers\n\n \n\n \n\n15.5\n\n \n\n \n\n \n\n16.4\n\n \n\nOklahoma vegetation management program deferred costs\n\n \n\n \n\n13.9\n\n \n\n \n\n \n\n6.4\n\n \n\nArkansas deferred pension expenses\n\n \n\n \n\n9.3\n\n \n\n \n\n \n\n11.0\n\n \n\nArkansas capacity power purchase agreements\n\n \n\n \n\n6.7\n\n \n\n \n\n \n\n3.5\n\n \n\nUnamortized loss on reacquired debt\n\n \n\n \n\n5.5\n\n \n\n \n\n \n\n6.3\n\n \n\nCOVID-19 impacts\n\n \n\n \n\n4.1\n\n \n\n \n\n \n\n5.4\n\n \n\nOther\n\n \n\n \n\n9.6\n\n \n\n \n\n \n\n12.0\n\n \n\nTotal non-current regulatory assets\n\n \n\n$\n\n557.2\n\n \n\n \n\n$\n\n568.1\n\n \n\nREGULATORY LIABILITIES\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\nOklahoma fuel clause over recoveries\n\n \n\n$\n\n15.7\n\n \n\n \n\n$\n\n—\n\n \n\nArkansas fuel clause over recoveries\n\n \n\n \n\n11.4\n\n \n\n \n\n \n\n9.3\n\n \n\nOklahoma Energy Efficiency Rider over recoveries (B)\n\n \n\n \n\n5.8\n\n \n\n \n\n \n\n—\n\n \n\nOklahoma Investment Tax Credit over recoveries (B)\n\n \n\n \n\n2.0\n\n \n\n \n\n \n\n6.1\n\n \n\nOther (B)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n4.9\n\n \n\nTotal current regulatory liabilities\n\n \n\n$\n\n34.9\n\n \n\n \n\n$\n\n20.3\n\n \n\nNon-current:\n\n \n\n \n\n \n\n \n\n \n\n \n\nIncome taxes refundable to customers, net\n\n \n\n$\n\n718.9\n\n \n\n \n\n$\n\n780.8\n\n \n\nAccrued removal obligations, net\n\n \n\n \n\n234.7\n\n \n\n \n\n \n\n231.9\n\n \n\nOther\n\n \n\n \n\n3.5\n\n \n\n \n\n \n\n3.7\n\n \n\nTotal non-current regulatory liabilities\n\n \n\n$\n\n957.1\n\n \n\n \n\n$\n\n1,016.4\n\n \n\n(A)\nIncluded in Other Current Assets in the balance sheets.\n\n(B)\nIncluded in Other Current Liabilities in the balance sheets.\n\n \n\nOG&E recovers certain SPP costs related to base plan charges from its customers and refunds certain SPP revenues received to its customers in Oklahoma through the SPP cost tracker and in Arkansas through the transmission cost recovery rider.\n\n \n\nOG&E includes in expense any Oklahoma storm-related operation and maintenance expenses up to $2.7 million annually and defers to a regulatory asset any additional expenses incurred over $2.7 million. OG&E typically recovers the amounts deferred each year over a five- to ten-year period in accordance with historical practice.\n\n \n\nOG&E recovers specific amounts of pension and postretirement medical costs in rates approved in its Oklahoma rate reviews. In accordance with approved orders, OG&E defers the difference between actual pension and postretirement medical expenses and the amount approved in its last Oklahoma rate review as a regulatory asset or regulatory liability. These amounts have been recorded in the Pension tracker regulatory asset in the table above and are being recovered over a 15-year period.\n\n61\n\n \n\n \n\nThe benefit obligations regulatory asset is comprised of expenses recorded which are probable of future recovery and that have not yet been recognized as components of net periodic benefit cost, including net loss and prior service cost. These expenses are recorded as a regulatory asset, as OG&E historically has recovered and currently recovers pension and postretirement benefit plan expense in its electric rates. If, in the future, the regulatory bodies indicate a change in policy related to the recovery of pension and postretirement benefit plan expenses, this could cause the benefit obligations regulatory asset balance to be reclassified to accumulated other comprehensive income.\n\n \n\nThe following table presents a summary of the components of the benefit obligations regulatory asset.\n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nPension Plan and Restoration of Retirement Income Plan:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss\n\n \n\n$\n\n74.0\n\n \n\n \n\n$\n\n76.5\n\n \n\nPostretirement Benefit Plans:\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet loss\n\n \n\n \n\n11.6\n\n \n\n \n\n \n\n14.3\n\n \n\nTotal\n\n \n\n$\n\n85.6\n\n \n\n \n\n$\n\n90.8\n\n \n\n \n\nAs approved by the APSC, OG&E is amortizing the deferred costs related to Winter Storm Uri over 10 years using a weighted average cost of capital as a carrying charge.\n\n \n\nAs discussed below, SB 998 became effective August 29, 2025. This legislation allows OG&E to establish a regulatory asset to defer 90 percent of depreciation expense and debt return associated with qualified plant investments, that are not classified as transmission or new generation, for recovery over an allowed 20-year period in a future rate filing. OG&E began deferring costs for qualified plant investments in September 2025.\n\n \n\nAs approved by the OCC, OG&E established a regulatory asset to defer the Oklahoma jurisdictional portion of operation and maintenance costs associated with OG&E's SAP S/4 HANA enterprise resource planning system project. As approved in the most recent Oklahoma general rate review, a portion of these costs is being recovered over five years with the remaining portion being included for consideration in a future rate proceeding.\n\n \n\nAs approved by the OCC, OG&E deferred the non-fuel incremental operation and maintenance expenses, depreciation, debt cost associated with the capital investment and related ad valorem taxes for the Dry Scrubbers at Sooner Units 1 and 2 as a regulatory asset, and these costs are being recovered over 25 years.\n\n \n\nAs approved in the most recent Oklahoma general rate review, OG&E includes in expense any Oklahoma vegetation management operation and maintenance expenses up to $38.2 million annually and defers to a regulatory asset up to $7.5 million annually in additional expenses. These costs will be included for consideration in a future rate proceeding.\n\n \n\nArkansas includes a certain level of pension expense in base rates. When the Pension Plan experiences a settlement, which represents an acceleration of future pension costs, OG&E defers to a regulatory asset the Arkansas jurisdictional portion of each settlement, which historically has been recovered from customers over the average life of the remaining plan participants. A portion of these settlements is being recovered in current rates, and recovery of additional amounts will be requested as additional settlements occur. For additional information related to settlements, see Note 11.\n\n \n\nAs approved by the APSC, OG&E defers to a regulatory asset the Arkansas jurisdictional portion of capacity costs associated with short-term power purchase agreements entered into to meet capacity needs in each of the years between 2023 and 2027.\n\n \n\nUnamortized loss on reacquired debt is comprised of unamortized debt issuance costs related to the early retirement of OG&E's long-term debt. These amounts are recorded in interest expense and are being amortized over the term of the long-term debt which replaced the previous long-term debt. The unamortized loss on reacquired debt is recovered as a part of OG&E's cost of capital.\n\n \n\nIn response to the COVID-19 pandemic, the OCC and APSC issued orders allowing OG&E to defer certain expenses related to its COVID-19 response, such as incremental expenses that were related to the suspension of or delay in disconnection of service and additional expenses associated with ensuring the continuity of electric utility service. As approved by the OCC, OG&E is recovering the Oklahoma jurisdictional portion of these costs over five years.\n\n \n\n62\n\n \n\nFuel clause under and over recoveries are generated from OG&E's customers when OG&E's cost of fuel either exceeds or is less than the amount billed to its customers, respectively. OG&E's fuel recovery clauses are designed to smooth the impact of fuel price volatility on customers' bills. As a result, OG&E under recovers fuel costs in periods of rising fuel prices above the baseline charge for fuel and over recovers fuel costs when prices decline below the baseline charge for fuel. Provisions in the fuel clauses are intended to allow OG&E to amortize under and over recovery balances.\n\n \n\nOG&E recovers program costs related to the Energy Efficiency Program in Oklahoma through the Energy Efficiency Rider, which operates on a five-year program cycle. The current program cycle, which runs through 2029, includes recovery of (i) energy efficiency program costs, (ii) lost revenues associated with certain achieved energy efficiency and demand savings, (iii) performance-based incentives and (iv) costs associated with research and development investments.\n\n \n\nOG&E refunds state investment tax credits to its Oklahoma customers through the Oklahoma investment tax credit rider.\n\n \n\nIncome taxes refundable to customers, net, primarily represents the reduction in accumulated deferred income taxes that resulted from the reduction in the federal income tax rate as part of the Tax Cuts and Jobs Act of 2017 as well as other state tax rate changes, partially offset by income taxes recoverable from customers primarily related to the equity component of the allowance for funds used during construction. These net liabilities will be returned to customers in varying amounts over approximately 80 years, and the assets will be amortized over the estimated remaining life of the assets to which they relate, as the temporary differences that generated the income tax benefits turn-around.\n\n \n\nAccrued removal obligations, net represents asset removal costs previously recovered from ratepayers.\n\n \n\nManagement 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.\n\n \n\nUse of Estimates\n\n \n\nIn preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes to these assumptions and estimates could have a material effect on the Registrants' financial statements. However, the Registrants believe they have taken reasonable positions where assumptions and estimates are used in order to minimize the negative financial impact to the Registrants that could result if actual results vary from the assumptions and estimates. In management's opinion, the areas where the most significant judgment is exercised include the determination of pension and postretirement plan assumptions, income taxes, contingency reserves, and regulatory assets and liabilities.\n\n \n\nCash and Cash Equivalents\n\n \n\nFor purposes of the financial statements, the Registrants consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value.\n\n \n\nAllowance for Uncollectible Accounts Receivable\n\n \n\nCustomer 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 balance sheets and is included in Other Operation and Maintenance Expense in the statements of income. The allowance for uncollectible accounts receivable was $4.1 million and $2.0 million at December 31, 2025 and 2024, respectively.\n\n \n\n63\n\n \n\nNew 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.\n\n \n\n \n\nFuel Inventories\n\n \n\nFuel inventories for the generation of electricity consist of coal, natural gas, oil and alternative fuel. OG&E uses the weighted-average cost method of accounting for inventory that is physically added to or withdrawn from storage or stockpiles. OG&E held $112.0 million and $148.3 million of fuel inventory at December 31, 2025 and 2024, respectively.\n\n \n\nProperty, Plant and Equipment\n\n \n\nAll property, plant and equipment is recorded at cost. Newly constructed plant is added to plant balances at cost which includes contracted services, direct labor, materials, overhead, transportation costs and the allowance for funds used during construction. Replacements of units of property are capitalized as plant. For assets that belong to a common plant account, the replaced plant is removed from plant balances, and the cost of such property net of any salvage proceeds is charged to Accumulated Depreciation. For assets that do not belong to a common plant account, the replaced plant is removed from plant balances with the related accumulated depreciation, and the remaining balance net of any salvage proceeds is recorded as a loss in the statements of income as Other Expense. Repair and replacement of minor items of property are included in the statements of income as Other Operation and Maintenance Expense.\n\n \n\nThe following tables present OG&E's ownership interest in the jointly-owned McClain Plant and the jointly-owned Redbud Plant, and, as disclosed below, only OG&E's ownership interest is reflected in the property, plant and equipment and accumulated depreciation balances in these tables. The owners of the remaining interests in the McClain Plant and the Redbud Plant are responsible for providing their own financing of capital expenditures. Also, only OG&E's proportionate interests of any direct expenses of the McClain Plant and the Redbud Plant, such as fuel, maintenance expense and other operating expenses, are included in the applicable financial statement captions in the statements of income.\n\nDecember 31, 2025 (In millions)\n\n \n\nPercentage Ownership\n\n \n\n \n\nTotal Property, Plant and Equipment\n\n \n\n \n\nAccumulated Depreciation\n\n \n\n \n\nNet Property, Plant and Equipment\n\n \n\nMcClain Plant (A)\n\n \n\n \n\n77\n\n%\n\n \n\n$\n\n254.6\n\n \n\n \n\n$\n\n81.6\n\n \n\n \n\n$\n\n173.0\n\n \n\nRedbud Plant (A)(B)\n\n \n\n \n\n51\n\n%\n\n \n\n$\n\n582.1\n\n \n\n \n\n$\n\n261.1\n\n \n\n \n\n$\n\n321.0\n\n \n\n(A)\nConstruction work in progress was $0.1 million and $25.8 million for the McClain and Redbud Plants, respectively.\n\n(B)\nThis amount includes a plant acquisition adjustment of $148.3 million and accumulated amortization of $94.7 million.\n\n \n\nDecember 31, 2024 (In millions)\n\n \n\nPercentage Ownership\n\n \n\n \n\nTotal Property, Plant and Equipment\n\n \n\n \n\nAccumulated Depreciation\n\n \n\n \n\nNet Property, Plant and Equipment\n\n \n\nMcClain Plant (A)\n\n \n\n \n\n77\n\n%\n\n \n\n$\n\n244.4\n\n \n\n \n\n$\n\n75.8\n\n \n\n \n\n$\n\n168.6\n\n \n\nRedbud Plant (A)(B)\n\n \n\n \n\n51\n\n%\n\n \n\n$\n\n556.7\n\n \n\n \n\n$\n\n247.7\n\n \n\n \n\n$\n\n309.0\n\n \n\n(A)\nConstruction work in progress was $0.8 million and $5.1 million for the McClain and Redbud Plants, respectively.\n\n(B)\nThis amount includes a plant acquisition adjustment of $148.3 million and accumulated amortization of $89.3 million.\n\n64\n\n \n\n \n\nThe following tables present the Registrants' major classes of property, plant and equipment and related accumulated depreciation.\n\nDecember 31, 2025 (In millions)\n\n \n\nTotal Property, Plant and Equipment\n\n \n\n \n\nAccumulated Depreciation\n\n \n\n \n\nNet Property, Plant and Equipment\n\n \n\nOG&E:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistribution assets\n\n \n\n$\n\n7,075.1\n\n \n\n \n\n$\n\n1,744.3\n\n \n\n \n\n$\n\n5,330.8\n\n \n\nElectric generation assets (A)\n\n \n\n \n\n5,873.5\n\n \n\n \n\n \n\n2,285.0\n\n \n\n \n\n \n\n3,588.5\n\n \n\nTransmission assets (B)\n\n \n\n \n\n3,524.8\n\n \n\n \n\n \n\n781.1\n\n \n\n \n\n \n\n2,743.7\n\n \n\nIntangible plant\n\n \n\n \n\n2.5\n\n \n\n \n\n \n\n0.7\n\n \n\n \n\n \n\n1.8\n\n \n\nOther property and equipment\n\n \n\n \n\n1,465.9\n\n \n\n \n\n \n\n406.4\n\n \n\n \n\n \n\n1,059.5\n\n \n\nOG&E property, plant and equipment\n\n \n\n \n\n17,941.8\n\n \n\n \n\n \n\n5,217.5\n\n \n\n \n\n \n\n12,724.3\n\n \n\nNon-OG&E property, plant and equipment\n\n \n\n \n\n6.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.1\n\n \n\nTotal OGE Energy property, plant and equipment\n\n \n\n$\n\n17,947.9\n\n \n\n \n\n$\n\n5,217.5\n\n \n\n \n\n$\n\n12,730.4\n\n \n\n(A)\nThis amount includes a plant acquisition adjustment of $148.3 million and accumulated amortization of $94.7 million.\n\n(B)\nThis amount includes a plant acquisition adjustment of $3.3 million and accumulated amortization of $1.2 million.\n\n \n\nDecember 31, 2024 (In millions)\n\n \n\nTotal Property, Plant and Equipment\n\n \n\n \n\nAccumulated Depreciation\n\n \n\n \n\nNet Property, Plant and Equipment\n\n \n\nOG&E:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDistribution assets\n\n \n\n$\n\n6,654.5\n\n \n\n \n\n$\n\n1,639.8\n\n \n\n \n\n$\n\n5,014.7\n\n \n\nElectric generation assets (A)\n\n \n\n \n\n5,518.5\n\n \n\n \n\n \n\n2,145.9\n\n \n\n \n\n \n\n3,372.6\n\n \n\nTransmission assets (B)\n\n \n\n \n\n3,432.1\n\n \n\n \n\n \n\n748.5\n\n \n\n \n\n \n\n2,683.6\n\n \n\nIntangible plant\n\n \n\n \n\n752.3\n\n \n\n \n\n \n\n203.7\n\n \n\n \n\n \n\n548.6\n\n \n\nOther property and equipment\n\n \n\n \n\n705.3\n\n \n\n \n\n \n\n244.3\n\n \n\n \n\n \n\n461.0\n\n \n\nOG&E property, plant and equipment\n\n \n\n \n\n17,062.7\n\n \n\n \n\n \n\n4,982.2\n\n \n\n \n\n \n\n12,080.5\n\n \n\nNon-OG&E property, plant and equipment\n\n \n\n \n\n6.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6.1\n\n \n\nTotal OGE Energy property, plant and equipment\n\n \n\n$\n\n17,068.8\n\n \n\n \n\n$\n\n4,982.2\n\n \n\n \n\n$\n\n12,086.6\n\n \n\n(A)\nThis amount includes a plant acquisition adjustment of $148.3 million and accumulated amortization of $89.3 million.\n\n(B)\nThis amount includes a plant acquisition adjustment of $3.3 million and accumulated amortization of $1.2 million.\n\n \n\nOG&E's unamortized computer software costs were $631.7 million and $280.9 million at December 31, 2025 and 2024, respectively. OG&E's amortization expense for computer software costs was $44.4 million, $32.7 million and $33.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, and in such table above, unamortized software costs are included within the various functional areas to which the software relates, with the majority of the costs categorized within other property and equipment. At December 31, 2024, and in such table above, unamortized computer software costs are included in intangible plant. The increase in unamortized computer software costs was primarily due to a new enterprise resource planning system implementation in 2025.\n\n \n\nDepreciation and Amortization\n\n \n\nDepreciation expense was $442.5 million, $436.6 million and $421.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. The provision for depreciation, which was 2.7 percent, 2.8 percent and 2.8 percent of the average depreciable utility plant for 2025, 2024 and 2023, respectively, is calculated using the straight-line method over the estimated service life of the associated assets. Depreciation is provided at the unit level for production plant and at the account or sub-account level for all other plant and is based on the average life group method. In 2026, the provision for depreciation is projected to be 2.7 percent of the average depreciable utility plant.\n\n \n\nAmortization of intangible and software assets is calculated using the straight-line method. Of the remaining related amortizable plant balance at December 31, 2025, 36.81 percent will be amortized over 13.1 years, 62.90 percent will be amortized over 19.5 years, and the remaining 0.29 percent will be amortized over 23.4 years.\n\n \n\n65\n\n \n\nAmortization of plant acquisition adjustments is provided on a straight-line basis over the estimated remaining service life of the acquired assets. Plant acquisition adjustments include $148.3 million for the Redbud Plant, which is being amortized over a 27-year life, and $3.3 million for certain transmission substation facilities in OG&E's service territory, which is being amortized over a 37- to 59-year period.\n\n \n\nAsset Retirement Obligations\n\n \n\nOG&E has asset retirement obligations primarily associated with the removal of company-owned wind turbines on leased land, as well as the removal of asbestos from certain power generating stations. OG&E has recorded asset retirement obligations that are being accreted over their respective lives ranging from three to 68 years. Asset retirement obligations are included in Other Deferred Credits and Other Liabilities in the Registrants' balance sheets.\n\n \n\nThe following table presents changes to OG&E's asset retirement obligations during the years ended December 31, 2025 and 2024.\n\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nBalance at January 1\n\n \n\n$\n\n84.6\n\n \n\n \n\n$\n\n81.3\n\n \n\nAccretion expense\n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n0.9\n\n \n\nLiabilities settled (A)\n\n \n\n \n\n(7.6\n\n)\n\n \n\n \n\n(0.2\n\n)\n\nRevisions in estimated cash flows (B)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n2.6\n\n \n\nBalance at December 31\n\n \n\n$\n\n77.8\n\n \n\n \n\n$\n\n84.6\n\n \n\n(A)\nAsset retirement obligations were settled for asbestos removal at OG&E's generating facilities.\n\n(B)\nAssumptions changed due to new removal estimates related to wind turbine removal at three of OG&E's wind farms in 2024.\n\n \n\nAccruals for environmental costs are recognized when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Costs are charged to expense or deferred as a regulatory asset based on expected recovery from customers in future rates, if they relate to the remediation of conditions caused by past operations or if they are not expected to mitigate or prevent contamination from future operations. Where environmental expenditures relate to facilities currently in use, such as pollution control equipment, the costs may be capitalized and depreciated over the future service periods. Estimated remediation costs are recorded at undiscounted amounts, independent of any insurance or rate recovery, based on prior experience, assessments and current technology. Accrued obligations are regularly adjusted as environmental assessments and estimates are revised and remediation efforts proceed. For sites where OG&E has been designated as one of several potentially responsible parties, the amount accrued represents OG&E's estimated share of the cost. OG&E had $21.8 million and $30.2 million in accrued environmental liabilities at December 31, 2025 and 2024, respectively, which are included in OG&E's asset retirement obligations.\n\n \n\nAllowance for Funds Used During Construction\n\n \n\nAllowance for funds used during construction, a non-cash item, is reflected as an increase to Net Other Income and a reduction to Interest Expense in the statements of income and as an increase to Construction Work in Progress in the balance sheets. Allowance for funds used during construction is calculated according to the FERC requirements for the imputed cost of equity and borrowed funds. Allowance for funds used during construction rates, compounded semi-annually, were 7.1 percent, 7.1 percent and 7.0 percent for the years ended December 31, 2025, 2024 and 2023, respectively.\n\n \n\nCollection of Sales Tax\n\n \n\nIn the normal course of its operations, OG&E collects sales tax from its customers. OG&E records a current liability for sales taxes when it bills its customers and eliminates this liability when the taxes are remitted to the appropriate governmental authorities. OG&E excludes the sales tax collected from its operating revenues.\n\n \n\nRevenue Recognition\n\n \n\nGeneral\n\n \n\nOG&E recognizes revenue from electric sales when power is delivered to customers. The performance obligation to deliver electricity is generally created and satisfied simultaneously, and the provisions of the regulatory-approved tariff determine the charges OG&E may bill the customer, payment due date and other pertinent rights and obligations of both parties. OG&E measures its\n\n66\n\n \n\ncustomers' metered usage and sends bills to its customers throughout each month. As a result, there is a significant amount of customers' electricity consumption that has not been billed at the end of each month. OG&E accrues an estimate of the revenues for electric sales delivered since the latest billings. Unbilled revenue is presented in Accrued Unbilled Revenues in the balance sheets and in Revenues from Contracts with Customers in the statements of income based on estimates of usage and prices during the period. The estimates that management uses in this calculation could vary from the actual amounts to be paid by customers.\n\n \n\nIntegrated Market and Transmission\n\n \n\nOG&E currently owns and operates transmission and generation facilities as part of a vertically integrated utility. OG&E is a member of the SPP regional transmission organization and has transferred operational authority, but not ownership, of OG&E's transmission facilities to the SPP. The SPP has implemented FERC-approved regional day-ahead and real-time markets for energy and operating services, as well as associated transmission congestion rights. Collectively, the three markets operate together under the global name, SPP Integrated Marketplace. OG&E represents owned and contracted generation assets and customer load in the SPP Integrated Marketplace for the sole benefit of its customers. OG&E has not participated in the SPP Integrated Marketplace for any speculative trading activities.\n\n \n\nOG&E records the SPP Integrated Marketplace transactions as sales or purchases per FERC Order 668, which requires that purchases and sales be recorded on a net basis for each settlement period of the SPP Integrated Marketplace. Purchases and sales are based on the fixed transaction price determined by the market at the time of the purchase or sale and the MWh quantity purchased or sold. These results are reported as Revenues from Contracts with Customers or Fuel, Purchased Power and Direct Transmission Expense in the statements of income. OG&E's revenues, expenses, assets and liabilities may be adversely affected by changes in the organization, operating and regulation by the FERC or the SPP.\n\n \n\nOG&E's transmission revenues are generated by the use of OG&E's transmission network by the SPP, which operates the network, on behalf of other transmission owners. OG&E recognizes revenue on the sale of transmission service to its customers over time as the service is provided in the amount OG&E has a right to invoice. Transmission service to the SPP is billed monthly based on a fixed transaction price determined by OG&E's FERC-approved formula transmission rates along with other SPP-specific charges and the megawatt quantity reserved.\n\n \n\nOther Revenues\n\n \n\nOther Revenues in the statements of income is comprised of certain rider revenue that includes alternative revenue measures as defined in ASC 980, \"Regulated Operations,\" which details two types of alternative revenue programs. The first type adjusts billings for the effects of weather abnormalities or broad external factors or to compensate OG&E for demand-side management initiatives (i.e., no-growth plans and similar conservation efforts). The second type provides for additional billings (i.e., incentive awards) for the achievement of certain objectives, such as reducing costs, reaching specified milestones or demonstratively improving customer service. Once the specific events permitting billing of the additional revenues under either program type have been completed, OG&E recognizes the additional revenues if (i) the program is established by an order from OG&E's regulatory commission that allows for automatic adjustment of future rates; (ii) the amount of additional revenues for the period is objectively determinable and is probable of recovery; and (iii) the additional revenues will be collected within 24 months following the end of the annual period in which they are recognized.\n\n \n\nFuel Adjustment Clauses\n\n \n\nThe actual cost of fuel used in electric generation and certain purchased power costs are generally recoverable from OG&E's customers through fuel adjustment clauses. The fuel adjustment clauses are subject to periodic review by the OCC and the APSC.\n\n \n\nLeases\n\n \n\nThe Registrants evaluate all contracts under ASC 842 to determine if the contract is or contains a lease and to determine classification as an operating or finance lease. If a lease is identified, the Registrants recognize a right-of-use asset and a lease liability in their balance sheets. The Registrants recognize and measure a lease liability when they conclude the contract contains an identified asset that the Registrants control through having the right to obtain substantially all of the economic benefits and the right to direct the use of the identified asset. The liability is equal to the present value of lease payments, and the asset is based on the liability, subject to adjustment, such as for initial direct costs. Further, the Registrants utilize an incremental borrowing rate for purposes of\n\n67\n\n \n\nmeasuring lease liabilities, if the discount rate is not implicit in the lease. To calculate the incremental borrowing rate, the Registrants start with a current pricing report for their senior unsecured notes, which indicates rates for periods reflective of the lease term, and adjust for the effects of collateral to arrive at the secured incremental borrowing rate. As permitted by ASC 842, the Registrants made an accounting policy election to not apply the balance sheet recognition requirements to short-term leases and to not separate lease components from non-lease components when recognizing and measuring lease liabilities. For income statement purposes, the Registrants record operating lease expense on a straight-line basis.\n\n \n\nIncome Taxes\n\n \n\nOGE Energy files consolidated income tax returns in the U.S. federal jurisdiction and various state jurisdictions. OG&E is a part of the consolidated tax return of OGE Energy. Income taxes are generally allocated to each company in the affiliated group, including OG&E, based on its stand-alone taxable income or loss. Federal investment tax credits previously claimed on electric company property have been deferred and will be amortized to income over the life of the related property. The Registrants use the asset and liability method of accounting for income taxes. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities as well as tax credit carry forwards and net operating loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. The Registrants recognize interest related to unrecognized tax benefits in Interest Expense and recognize penalties in Other Expense in the statements of income. Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent the Registrants believe they will not be realized.\n\n \n\nAccrued Vacation\n\n \n\nThe Registrants accrue vacation pay monthly by establishing a liability for vacation earned. Vacation may be taken as earned and is charged against the liability. At the end of each year, the liability represents the amount of vacation earned but not taken.\n\n \n\nRelated Party Transactions\n\n \n\nOGE Energy charges operating costs to OG&E based on several factors, and operating costs directly related to OG&E are assigned as such. Operating costs incurred for the benefit of OG&E are allocated either as overhead based primarily on labor costs or using the \"Distrigas\" method, which is a three-factor formula that uses an equal weighting of payroll, net operating revenues and gross property, plant and equipment. OGE Energy adopted this method as a result of a recommendation by the OCC Staff and believes this method provides a reasonable basis for allocating common expenses.\n\n \n\nOGE Energy charged operating costs to OG&E of $148.3 million during the year ended December 31, 2023. As a result of OGE Energy's exit of its former midstream business and becoming primarily an electric company, all employees are directly employed by OG&E beginning in 2024. In 2025, 2024 and 2023, OG&E declared $250.0 million, $130.0 million and $500.0 million of dividends, respectively, to OGE Energy.\n\n \n\n68\n\n \n\nAccumulated Other Comprehensive Income (Loss)\n\n \n\nThe following table presents changes in the components of accumulated other comprehensive income (loss) attributable to OGE Energy during 2025 and 2024. All amounts below are presented net of tax.\n\nPension Plan and Restoration of Retirement Income Plan\n\n \n\nPostretirement Benefit Plans\n\n \n\n \n\n \n\n(In millions)\n\nNet Gain (Loss)\n\n \n\nPrior Service Cost (Credit)\n\n \n\nNet Gain (Loss)\n\n \n\nTotal\n\n \n\nBalance at December 31, 2023\n\n$\n\n(12.1\n\n)\n\n$\n\n(0.8\n\n)\n\n$\n\n5.7\n\n \n\n$\n\n(7.2\n\n)\n\nOther comprehensive income (loss) before reclassifications\n\n \n\n(0.2\n\n)\n\n \n\n—\n\n \n\n \n\n0.5\n\n \n\n \n\n0.3\n\n \n\nAmounts reclassified from accumulated other comprehensive income (loss)\n\n \n\n0.2\n\n \n\n \n\n0.2\n\n \n\n \n\n(0.1\n\n)\n\n \n\n0.3\n\n \n\nRegulatory classification of certain pension costs\n\n \n\n3.9\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n3.9\n\n \n\nNet current period other comprehensive income (loss)\n\n \n\n3.9\n\n \n\n \n\n0.2\n\n \n\n \n\n0.4\n\n \n\n \n\n4.5\n\n \n\nBalance at December 31, 2024\n\n \n\n(8.2\n\n)\n\n \n\n(0.6\n\n)\n\n \n\n6.1\n\n \n\n \n\n(2.7\n\n)\n\nOther comprehensive income (loss) before reclassifications\n\n \n\n(1.7\n\n)\n\n \n\n—\n\n \n\n \n\n1.4\n\n \n\n \n\n(0.3\n\n)\n\nAmounts reclassified from accumulated other comprehensive income (loss)\n\n \n\n0.3\n\n \n\n \n\n0.2\n\n \n\n \n\n(0.1\n\n)\n\n \n\n0.4\n\n \n\nNet current period other comprehensive income (loss)\n\n \n\n(1.4\n\n)\n\n \n\n0.2\n\n \n\n \n\n1.3\n\n \n\n \n\n0.1\n\n \n\nBalance at December 31, 2025\n\n$\n\n(9.6\n\n)\n\n$\n\n(0.4\n\n)\n\n$\n\n7.4\n\n \n\n$\n\n(2.6\n\n)\n\n \n\nThe following table presents significant amounts reclassified out of accumulated other comprehensive income (loss) attributable to OGE Energy by the respective line items in net income during the years ended December 31, 2025 and 2024.\n\nDetails about Accumulated Other Comprehensive Income (Loss) Components\n\nAmount Reclassified from Accumulated Other Comprehensive Income (Loss)\n\n \n\nAffected Line Item in\nOGE Energy's Statements of Income\n\nYear Ended December 31,\n\n \n\n \n\n(In millions)\n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\nAmortization of Pension Plan and Restoration of Retirement Income Plan items:\n\n \n\n \n\n \n\n \n\n \n\n \n\nActuarial losses\n\n$\n\n(0.4\n\n)\n\n \n\n$\n\n(0.3\n\n)\n\n(A)\n\nPrior service cost\n\n \n\n(0.3\n\n)\n\n \n\n \n\n(0.3\n\n)\n\n(A)\n\n \n\n(0.7\n\n)\n\n \n\n \n\n(0.6\n\n)\n\nIncome Before Taxes\n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.2\n\n)\n\nIncome Tax Expense\n\n$\n\n(0.5\n\n)\n\n \n\n$\n\n(0.4\n\n)\n\nNet Income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortization of postretirement benefit plans items:\n\n \n\n \n\n \n\n \n\n \n\n \n\nActuarial gains\n\n$\n\n0.2\n\n \n\n \n\n$\n\n0.2\n\n \n\n(A)\n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\nIncome Before Taxes\n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\nIncome Tax Expense\n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\nNet Income\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal reclassifications for the period, net of tax\n\n$\n\n(0.4\n\n)\n\n \n\n$\n\n(0.3\n\n)\n\nNet Income\n\n(A)\nThese accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 11 for additional information).\n\n \n\n69\n\n \n\nLegislative Matters\n\n \n\nOklahoma\n\n \n\nIn May 2025, SB 998 was passed into law and became effective August 29, 2025. This legislation allows rate-regulated retail electric service providers, such as OG&E, to receive CWIP recovery of new natural gas generation capacity, if those proposed generation sources are approved by the OCC under existing statutory review procedures, and sets specific timelines for the OCC to review proposed projects. SB 998 also allows utilities to establish a regulatory asset to defer 90 percent of depreciation expense and return associated with qualified plant investments, that are not classified as transmission or new generation, for recovery over an allowed 20-year period in a future rate review filing.\n\n \n\nArkansas\n\n \n\nIn March 2025, Act 373 was signed into law by the Governor of Arkansas. Act 373 enables rate-regulated retail electric providers, such as OG&E, to receive CWIP recovery of \"strategic investments,\" including (i) new electric generating facilities, including transportation and storage facilities for associated fuel, (ii) upgrades, expansions, or fuel conversions of electric generating facilities, including transportation and storage facilities for associated fuel, and (iii) new or upgraded electric transmission facilities, including substations. All projects are subject to review and approval by the APSC. Act 373 further authorizes use of a rider to recover approved strategic investments that are not being recovered through previously approved rates, upon approval of the project by the APSC.\n\n \n\n2. Accounting Pronouncements\n\n \n\nIn December 2023, the Financial Accounting Standards Board issued ASU 2023-09, \"Income Taxes (Topic 740) Improvements to Income Tax Disclosures.\" The amendments in this update require public entities on an annual basis to (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Further, the amendments require entities to disclose on an annual basis income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. The Registrants adopted this standard effective January 1, 2025. The presentation of certain prior year information in the supplemental cash flow statement information and within Note 7 have been adjusted to align with current year disclosure changes resulting from the Registrants' adoption of ASU 2023-09.\n\n \n\nIn November 2024, the Financial Accounting Standards Board issued ASU 2024-03, \"Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures.\" The amendments in this update improve financial reporting by requiring disclosure of additional information about specific expense categories in the notes to financial statements on an annual and interim basis. This standard is effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted. The Registrants are evaluating the impact of this standard and do not believe it will have a material impact on their financial statement disclosures.\n\n \n\nIn September 2025, the Financial Accounting Standards Board issued ASU 2025-06, \"Intangibles - Goodwill and Other - Internal-Use Software.\" The targeted improvements in this update aim to better align current software development processes when considering capitalization of internal-use software costs. This standard is effective for fiscal years beginning after December 15, 2027 and interim periods within that period. Early adoption is permitted. The Registrants are evaluating the impact of this standard on their financial statements.\n\n \n\nThe Registrants believe that other recently adopted and recently issued accounting standards that are not yet effective do not appear to have a material impact on the Registrants' financial position, results of operations or cash flows upon adoption.\n\n \n\n70\n\n \n\n3. Revenue Recognition\n\n \n\nThe following table presents OG&E's revenues from contracts with customers disaggregated by customer classification. OG&E's operating revenues disaggregated by customer classification can be found in \"OG&E (Electric Company) Results of Operations\" within \"Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.\"\n\n \n\nYear Ended December 31,\n\n \n\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nResidential\n\n \n\n$\n\n1,172.1\n\n \n\n \n\n$\n\n1,116.4\n\n \n\n \n\n$\n\n1,008.6\n\n \n\nCommercial\n\n \n\n \n\n955.7\n\n \n\n \n\n \n\n816.5\n\n \n\n \n\n \n\n666.7\n\n \n\nIndustrial\n\n \n\n \n\n260.1\n\n \n\n \n\n \n\n248.6\n\n \n\n \n\n \n\n235.2\n\n \n\nOilfield\n\n \n\n \n\n241.5\n\n \n\n \n\n \n\n225.7\n\n \n\n \n\n \n\n210.0\n\n \n\nPublic authorities and street light\n\n \n\n \n\n269.6\n\n \n\n \n\n \n\n255.5\n\n \n\n \n\n \n\n228.6\n\n \n\nSystem sales revenues\n\n \n\n \n\n2,899.0\n\n \n\n \n\n \n\n2,662.7\n\n \n\n \n\n \n\n2,349.1\n\n \n\nProvision for rate refund and tax refund\n\n \n\n \n\n3.0\n\n \n\n \n\n \n\n(3.0\n\n)\n\n \n\n \n\n2.0\n\n \n\nIntegrated market\n\n \n\n \n\n91.6\n\n \n\n \n\n \n\n74.5\n\n \n\n \n\n \n\n71.6\n\n \n\nTransmission\n\n \n\n \n\n159.4\n\n \n\n \n\n \n\n152.9\n\n \n\n \n\n \n\n143.0\n\n \n\nOther\n\n \n\n \n\n37.9\n\n \n\n \n\n \n\n29.5\n\n \n\n \n\n \n\n41.6\n\n \n\nRevenues from contracts with customers\n\n \n\n$\n\n3,190.9\n\n \n\n \n\n$\n\n2,916.6\n\n \n\n \n\n$\n\n2,607.3\n\n \n\n \n\n4. Leases\n\n \n\nBased on their evaluation of all contracts under ASC 842, as described in Note 1, the Registrants concluded they have operating lease obligations as described below.\n\n \n\nOG&E Railcar Lease Agreement\n\n \n\nEffective February 1, 2024, OG&E renewed its railcar lease agreement for 770 rotary gondola railcars to transport coal from Wyoming to OG&E's coal-fired generation units. Rental payments are charged to fuel expense and are recoverable through OG&E's fuel adjustment clauses. On February 1, 2029, OG&E has the option to either purchase the railcars at a stipulated fair market value or renew the lease. If OG&E chooses not to purchase the railcars or renew the lease agreement, it would be responsible for the difference between the actual fair value of the railcars and the stipulated fair market value, up to a maximum of $3.2 million. OG&E held an additional railcar lease agreement for 135 rotary gondola railcars to transport coal with a term of October 1, 2022 to December 31, 2025, which was not renewed.\n\n \n\nOG&E Wind Farm Land Lease Agreements\n\n \n\nOG&E has operating leases related to land for OG&E's Centennial, OU Spirit and Crossroads wind farms with terms of seven to 11 years remaining, depending on the lease. The Centennial lease has rent escalations which increase annually based on the Consumer Price Index. While lease liabilities are not remeasured as a result of changes to the Consumer Price Index, changes to the Consumer Price Index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The OU Spirit and Crossroads leases each have rent escalations which increase after five and ten years. Although the leases are cancellable, OG&E is required to make annual lease payments as long as the wind turbines are located on the land. OG&E does not expect to terminate the leases until the wind turbines reach the end of their useful life.\n\n \n\nFinancial Statement Information and Maturity Analysis of Lease Liabilities\n\n \n\nThe following tables present amounts recognized for operating leases in the Registrants' statements of income, statements of cash flows and balance sheets and supplemental information related to those amounts recognized.\n\nOGE Energy and OG&E\n\n \n\nYear Ended December 31,\n\n \n\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOperating lease cost\n\n \n\n$\n\n5.2\n\n \n\n \n\n$\n\n4.7\n\n \n\n \n\n$\n\n6.4\n\n \n\nCash paid for amounts included in the measurement of lease liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating cash flows for operating leases\n\n \n\n$\n\n4.9\n\n \n\n \n\n$\n\n4.5\n\n \n\n \n\n$\n\n5.2\n\n \n\nRight-of-use assets obtained in exchange for new operating lease liabilities\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n5.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n71\n\n \n\n \n\nOGE Energy and OG&E\n\n \n\n \n\n \n\n \n\n(Dollars in millions)\n\nDecember 31, 2025\n\n \n\nDecember 31, 2024\n\n \n\nRight-of-use assets at period end (A)\n\n$\n\n25.0\n\n \n\n$\n\n28.3\n\n \n\nOperating lease liabilities at period end (B)\n\n$\n\n29.2\n\n \n\n$\n\n32.7\n\n \n\nOperating lease weighted-average remaining lease term (in years)\n\n \n\n9.0\n\n \n\n \n\n9.7\n\n \n\nOperating lease weighted-average discount rate\n\n \n\n4.1\n\n%\n\n \n\n4.2\n\n%\n\n(A)\nIncluded in Property, Plant and Equipment in the Registrants' balance sheets.\n\n(B)\nIncluded in Other Deferred Credits and Other Liabilities in the Registrants' balance sheets.\n\n \n\nThe following table presents a maturity analysis of the Registrants' operating lease liabilities.\n\nOGE Energy and OG&E\n\n \n\n \n\n \n\nFuture minimum operating lease payments as of December 31:\n\n \n\n \n\n \n\n(In millions)\n\n \n\n \n\n \n\n2026\n\n \n\n$\n\n4.3\n\n \n\n2027\n\n \n\n \n\n4.3\n\n \n\n2028\n\n \n\n \n\n4.3\n\n \n\n2029\n\n \n\n \n\n3.2\n\n \n\n2030\n\n \n\n \n\n3.5\n\n \n\nThereafter\n\n \n\n \n\n16.1\n\n \n\nTotal future minimum lease payments\n\n \n\n \n\n35.7\n\n \n\nLess: Imputed interest\n\n \n\n \n\n6.5\n\n \n\nPresent value of net minimum lease payments\n\n \n\n$\n\n29.2\n\n \n\n \n\n5. Fair Value Measurements\n\n \n\nThe classification of the Registrants' fair value measurements requires judgment regarding the degree to which market data is observable or corroborated by observable market data. GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value based on observable and unobservable data. The hierarchy categorizes the inputs into three levels, with the highest priority given to quoted prices in active markets for identical unrestricted assets or liabilities (Level 1) and the lowest priority given to unobservable inputs (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels defined in the fair value hierarchy are as follows:\n\n \n\nLevel 1 inputs are quoted prices in active markets for identical unrestricted assets or liabilities that are accessible at the measurement date.\n\n \n\nLevel 2 inputs are inputs other than quoted prices in active markets included within Level 1 that are either directly or indirectly observable at the reporting date for the asset or liability for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.\n\n \n\nLevel 3 inputs are prices or valuation techniques for the asset or liability that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).\n\n72\n\n \n\n \n\nThe Registrants had no financial instruments measured at fair value on a recurring basis at December 31, 2025 and 2024. The following table presents the carrying amount and fair value of the Registrants' financial instruments at December 31, 2025 and 2024, as well as the classification level within the fair value hierarchy.\n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\nDecember 31 (In millions)\n\nCarrying\nAmount\n\n \n\nFair\nValue\n\n \n\n \n\nCarrying\nAmount\n\n \n\nFair\nValue\n\n \n\nClassification\n\nLong-term Debt (including Long-term Debt due within one year):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOGE Energy Senior Notes\n\n$\n\n347.6\n\n \n\n$\n\n362.5\n\n \n\n \n\n$\n\n346.9\n\n \n\n$\n\n355.7\n\n \n\nLevel 2\n\nOGE Energy Term Loan\n\n$\n\n59.9\n\n \n\n$\n\n60.0\n\n \n\n \n\n$\n\n59.7\n\n \n\n$\n\n60.0\n\n \n\nLevel 2\n\nOG&E Senior Notes\n\n$\n\n4,847.2\n\n \n\n$\n\n4,644.7\n\n \n\n \n\n$\n\n4,499.6\n\n \n\n$\n\n4,174.9\n\n \n\nLevel 2\n\nOG&E Industrial Authority Bonds\n\n$\n\n103.0\n\n \n\n$\n\n103.0\n\n \n\n \n\n$\n\n135.4\n\n \n\n$\n\n135.4\n\n \n\nLevel 2\n\nOG&E Tinker Debt\n\n$\n\n11.5\n\n \n\n$\n\n9.1\n\n \n\n \n\n$\n\n11.7\n\n \n\n$\n\n9.0\n\n \n\nLevel 3\n\n \n\n6. Stock-Based Compensation\n\n \n\nIn 2022, OGE Energy adopted, and its shareholders approved, the 2022 Stock Incentive Plan. The 2022 Stock Incentive Plan replaced the 2013 Stock Incentive Plan, and no further awards will be granted under the 2013 Stock Incentive Plan; however, as noted below, outstanding awards under the 2013 Stock Incentive Plan were settled in 2023, 2024 and 2025. Under the 2022 Stock Incentive Plan, restricted stock, restricted stock units, stock options, stock appreciation rights and performance units may be granted to officers, directors and other key employees of OGE Energy and its subsidiaries, including OG&E. OGE Energy has authorized the issuance of up to 8,417,755 shares under the 2022 Stock Incentive Plan.\n\n \n\nThe tables designated as \"OGE Energy\" within this Note 6 include the OG&E standalone activity, as OGE Energy represents consolidated results. As a result of OGE Energy's exit of its former midstream business and becoming primarily an electric company, all employees are directly employed by OG&E beginning in 2024.\n\n \n\nThe following table presents the Registrants' pre-tax compensation expense and related income tax benefit for the years ended December 31, 2025, 2024 and 2023 related to performance units and restricted stock units for the Registrants' employees.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nPerformance units\n\n \n\n$\n\n9.6\n\n \n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n9.3\n\n \n\n \n\n$\n\n9.6\n\n \n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n2.2\n\n \n\nRestricted stock units\n\n \n\n \n\n4.4\n\n \n\n \n\n \n\n3.8\n\n \n\n \n\n \n\n3.8\n\n \n\n \n\n \n\n4.4\n\n \n\n \n\n \n\n3.8\n\n \n\n \n\n \n\n0.9\n\n \n\nTotal compensation expense\n\n \n\n$\n\n14.0\n\n \n\n \n\n$\n\n11.7\n\n \n\n \n\n$\n\n13.1\n\n \n\n \n\n$\n\n14.0\n\n \n\n \n\n$\n\n11.7\n\n \n\n \n\n$\n\n3.1\n\n \n\nIncome tax benefit\n\n \n\n$\n\n3.4\n\n \n\n \n\n$\n\n2.8\n\n \n\n \n\n$\n\n3.2\n\n \n\n \n\n$\n\n3.4\n\n \n\n \n\n$\n\n2.8\n\n \n\n \n\n$\n\n0.7\n\n \n\n \n\nDuring the year ended December 31, 2023, OGE Energy issued 82,321 shares of new common stock pursuant to OGE Energy's 2013 Stock Incentive Plan and issued 2,371 shares of treasury stock to satisfy payouts of earned performance units and restricted stock unit grants to the Registrants' employees.\n\n \n\nDuring the year ended December 31, 2024, OGE Energy issued 255,578 shares of new common stock pursuant to OGE Energy's 2013 Stock Incentive Plan to satisfy payouts of earned performance units and restricted stock unit grants to the Registrants' employees.\n\n \n\nDuring the year ended December 31, 2025, OGE Energy issued 234,476 shares of new common stock pursuant to OGE Energy's 2013 Stock Incentive Plan and 252 shares of new common stock pursuant to OGE Energy's 2022 Stock Incentive Plan to satisfy payouts of earned performance units and restricted stock unit grants to the Registrants' employees.\n\n \n\n73\n\n \n\nPerformance Units\n\nUnder the Stock Incentive Plan, OGE Energy has issued performance units which represent the value of one share of OGE Energy's common stock. The performance units provide for accelerated vesting if there is a change in control (as defined in the Stock Incentive Plan). Each performance unit is subject to forfeiture if the recipient terminates employment with OGE Energy or a subsidiary prior to the end of the primarily three-year award cycle for any reason other than death, disability or retirement. In the event of death, disability or retirement, a participant will receive a prorated payment based on such participant's number of full months of service during the award cycle, further adjusted based on the achievement of the performance goals during the award cycle. The Registrants estimate expected forfeitures in accounting for performance unit compensation expense.\n\nThe performance units granted are contingently awarded and will be payable in shares of OGE Energy's common stock subject to the condition that the number of performance units, if any, earned by the employees upon the expiration of a primarily three-year award cycle (i.e., three-year cliff vesting period) is dependent on OGE Energy's total shareholder return ranking relative to a peer group of companies. These performance units are classified as equity in the balance sheets. If there is no or only a partial payout for the performance units at the end of the award cycle, the unearned performance units are cancelled. Payout requires approval of the Compensation Committee of OGE Energy's Board of Directors. Payouts, if any, are all made in common stock and are considered made when the payout is approved by the Compensation Committee.\n\n \n\nThe fair value of the performance units was estimated on the grant date using a lattice-based valuation model that factors in information, including the expected dividend yield, expected price volatility, risk-free interest rate and the probable outcome of the market condition, over the expected life of the performance units. Compensation expense for the performance units is a fixed amount determined at the grant date fair value and is recognized over the primarily three-year award cycle regardless of whether performance units are awarded at the end of the award cycle. Dividends are accrued on a quarterly basis pending achievement of payout criteria and are included in the fair value calculations. Expected price volatility is based on the historical volatility of OGE Energy's common stock for the past three years and is simulated using the Geometric Brownian Motion process. The risk-free interest rate for the performance unit grants is based on the three-year U.S. Treasury yield curve in effect at the time of the grant. The expected life of the units is based on the non-vested period since inception of the award cycle. There are no post-vesting restrictions related to OGE Energy's performance units. The following table presents the number of performance units granted and the assumptions used to calculate the grant date fair value of the performance units.\n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\nNumber of units granted\n\n \n\n216,426\n\n \n\n \n\n275,499\n\n \n\n \n\n213,442\n\n \n\n \n\n \n\n216,426\n\n \n\n \n\n275,499\n\n \n\n \n\n65,069\n\n \n\nFair value of units granted\n\n$\n\n55.43\n\n \n\n$\n\n35.86\n\n \n\n$\n\n43.74\n\n \n\n \n\n$\n\n55.43\n\n \n\n$\n\n35.86\n\n \n\n$\n\n43.74\n\n \n\nExpected dividend yield\n\n \n\n3.8\n\n%\n\n \n\n5.1\n\n%\n\n \n\n4.2\n\n%\n\n \n\n \n\n3.8\n\n%\n\n \n\n5.1\n\n%\n\n \n\n4.2\n\n%\n\nExpected price volatility\n\n \n\n20.0\n\n%\n\n \n\n19.9\n\n%\n\n \n\n31.0\n\n%\n\n \n\n \n\n20.0\n\n%\n\n \n\n19.9\n\n%\n\n \n\n31.0\n\n%\n\nRisk-free interest rate\n\n \n\n4.28\n\n%\n\n \n\n4.41\n\n%\n\n \n\n4.47\n\n%\n\n \n\n \n\n4.28\n\n%\n\n \n\n4.41\n\n%\n\n \n\n4.47\n\n%\n\nExpected life of units (in years)\n\n \n\n2.87\n\n \n\n \n\n2.86\n\n \n\n \n\n2.85\n\n \n\n \n\n \n\n2.87\n\n \n\n \n\n2.86\n\n \n\n \n\n2.85\n\n \n\n \n\nRestricted Stock Units\n\nUnder the Stock Incentive Plan, OGE Energy has issued restricted stock units to certain existing non-officer employees as well as other executives upon hire to attract and retain individuals to be competitive in the marketplace. The restricted stock units vest primarily in a three-year award cycle (i.e., three-year cliff vesting period). Prior to vesting, each restricted stock unit is subject to forfeiture if the recipient ceases to render substantial services to OGE Energy or a subsidiary. These restricted stock units may not be sold, assigned, transferred or pledged and are subject to a risk of forfeiture.\n\n \n\nThe fair value of the restricted stock units was based on the closing market price of OGE Energy's common stock on the grant date. Compensation expense for the restricted stock units is a fixed amount determined at the grant date fair value and is recognized as services are rendered by employees over a primarily three-year vesting period. Also, for those restricted stock units that vest in one-third annual increments over a three-year cycle, OGE Energy treats its restricted stock units as multiple separate awards by recording compensation expense separately for each tranche whereby a substantial portion of the expense is recognized in the earlier years in the requisite service period.\n\n \n\n74\n\n \n\nDividends will only be paid on restricted stock unit awards that vest; therefore, only the present value of dividends expected to vest are included in the fair value calculations. The expected life of the restricted stock units is based on the non-vested period since inception of the primarily three-year award cycle. There are no post-vesting restrictions related to OGE Energy's restricted stock units. The following table presents the number of restricted stock units granted and the grant date fair value.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRestricted stock units granted\n\n \n\n \n\n121,056\n\n \n\n \n\n \n\n148,345\n\n \n\n \n\n \n\n114,926\n\n \n\n \n\n \n\n121,056\n\n \n\n \n\n \n\n148,345\n\n \n\n \n\n \n\n35,034\n\n \n\nFair value of restricted stock units granted\n\n \n\n$\n\n43.69\n\n \n\n \n\n$\n\n32.74\n\n \n\n \n\n$\n\n37.52\n\n \n\n \n\n$\n\n43.69\n\n \n\n \n\n$\n\n32.74\n\n \n\n \n\n$\n\n37.52\n\n \n\n \n\nPerformance Units and Restricted Stock Units Activity\n\n \n\nThe following table presents a summary of the activity for the Registrants' performance units and restricted stock units for the year ended December 31, 2025.\n\nOGE Energy and OG&E\n\nPerformance Units\n\n \n\n \n\nRestricted Stock Units\n\n \n\n(Dollars in millions)\n\nNumber\nof Units\n\n \n\n \n\nAggregate Intrinsic Value\n\n \n\n \n\nNumber\nof Shares\n\n \n\n \n\nAggregate Intrinsic Value\n\n \n\nUnits/shares outstanding at 12/31/24\n\n \n\n646,192\n\n \n\n \n\n \n\n \n\n \n\n \n\n244,054\n\n \n\n \n\n \n\n \n\nGranted\n\n \n\n216,426\n\n \n\n(A)\n\n \n\n \n\n \n\n \n\n121,056\n\n \n\n \n\n \n\n \n\nConverted\n\n \n\n(191,918\n\n)\n\n(B)\n\n$\n\n12.5\n\n \n\n \n\nN/A\n\n \n\n \n\n \n\n \n\nVested\n\nN/A\n\n \n\n \n\n \n\n \n\n \n\n \n\n(100,933\n\n)\n\n \n\n$\n\n4.3\n\n \n\nForfeited\n\n \n\n(12,756\n\n)\n\n \n\n \n\n \n\n \n\n \n\n(9,924\n\n)\n\n \n\n \n\n \n\nUnits/shares outstanding at 12/31/25\n\n \n\n657,944\n\n \n\n \n\n$\n\n19.7\n\n \n\n \n\n \n\n254,253\n\n \n\n \n\n$\n\n10.9\n\n \n\nUnits/shares fully vested at 12/31/25\n\n \n\n191,740\n\n \n\n(C)\n\n$\n\n8.2\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n(A)\nFor performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.\n\n(B)\nThese amounts represent performance units that vested at December 31, 2024, which were settled in February 2025.\n\n(C)\nThese amounts represent performance units that vested at December 31, 2025. Actual expected amounts to be paid out in 2026 will differ based on the percentage at which the performance metric was met and are dependent upon Compensation Committee approval.\n\n \n\nThe following table presents a summary of the activity for the Registrants' non-vested performance units and restricted stock units for the year ended December 31, 2025.\n\nOGE Energy and OG&E\n\nPerformance Units\n\n \n\n \n\nRestricted Stock Units\n\n \n\nNumber\nof Units\n\n \n\n \n\nWeighted-Average\nGrant Date\nFair Value\n\n \n\n \n\nNumber\nof Shares\n\n \n\n \n\nWeighted-Average\nGrant Date\nFair Value\n\n \n\nUnits/shares non-vested at 12/31/24\n\n \n\n454,274\n\n \n\n \n\n$\n\n39.28\n\n \n\n \n\n \n\n244,054\n\n \n\n \n\n$\n\n34.81\n\n \n\nGranted\n\n \n\n216,426\n\n \n\n(A)\n\n$\n\n55.43\n\n \n\n \n\n \n\n121,056\n\n \n\n \n\n$\n\n43.69\n\n \n\nVested\n\n \n\n(191,740\n\n)\n\n \n\n$\n\n43.74\n\n \n\n \n\n \n\n(100,933\n\n)\n\n \n\n$\n\n42.79\n\n \n\nForfeited\n\n \n\n(12,756\n\n)\n\n \n\n$\n\n42.49\n\n \n\n \n\n \n\n(9,924\n\n)\n\n \n\n$\n\n36.73\n\n \n\nUnits/shares non-vested at 12/31/25\n\n \n\n466,204\n\n \n\n \n\n$\n\n44.86\n\n \n\n \n\n \n\n254,253\n\n \n\n \n\n$\n\n37.88\n\n \n\n(A)\nFor performance units, this represents the target number of performance units granted. Actual number of performance units earned, if any, is dependent upon performance and may range from zero percent to 200 percent of the target.\n\n \n\nFair Value of Vested Performance Units and Restricted Stock Units\n\n \n\nThe following table presents a summary of the Registrants' fair value for vested performance units and restricted stock units.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nPerformance units\n\n \n\n$\n\n8.4\n\n \n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n9.0\n\n \n\n \n\n$\n\n8.4\n\n \n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n2.4\n\n \n\nRestricted stock units\n\n \n\n$\n\n3.8\n\n \n\n \n\n$\n\n3.6\n\n \n\n \n\n$\n\n2.4\n\n \n\n \n\n$\n\n3.8\n\n \n\n \n\n$\n\n3.6\n\n \n\n \n\n$\n\n0.6\n\n \n\n \n\n75\n\n \n\nUnrecognized Compensation Cost\n\n \n\nThe following table presents a summary of the Registrants' unrecognized compensation cost for non-vested performance units and restricted stock units and the weighted-average periods over which the compensation cost is expected to be recognized.\n\nOGE Energy and OG&E\nDecember 31, 2025\n\n \n\nUnrecognized\nCompensation Cost\n(In millions)\n\n \n\n \n\nWeighted Average\nto be Recognized\n(In years)\n\n \n\nPerformance units\n\n \n\n$\n\n10.3\n\n \n\n \n\n \n\n1.72\n\n \n\nRestricted stock units\n\n \n\n \n\n4.6\n\n \n\n \n\n \n\n1.77\n\n \n\nTotal unrecognized compensation cost\n\n \n\n$\n\n14.9\n\n \n\n \n\n \n\n \n\n \n\n7. Income Taxes\n\n \n\nIncome Tax Expense\n\n \n\nThe following table presents the components of income tax expense.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nProvision for current income taxes:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n29.3\n\n \n\n \n\n$\n\n62.0\n\n \n\n \n\n$\n\n46.1\n\n \n\n \n\n$\n\n39.9\n\n \n\n \n\n$\n\n72.7\n\n \n\n \n\n$\n\n48.9\n\n \n\nState\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.8\n\n \n\n \n\n \n\n(2.2\n\n)\n\n \n\n \n\n2.7\n\n \n\n \n\n \n\n3.0\n\n \n\n \n\n \n\n3.7\n\n \n\nTotal provision for current income taxes\n\n \n\n \n\n29.6\n\n \n\n \n\n \n\n62.8\n\n \n\n \n\n \n\n43.9\n\n \n\n \n\n \n\n42.6\n\n \n\n \n\n \n\n75.7\n\n \n\n \n\n \n\n52.6\n\n \n\nProvision for deferred income taxes, net:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n \n\n49.7\n\n \n\n \n\n \n\n8.0\n\n \n\n \n\n \n\n18.1\n\n \n\n \n\n \n\n51.9\n\n \n\n \n\n \n\n9.0\n\n \n\n \n\n \n\n18.8\n\n \n\nState\n\n \n\n \n\n10.5\n\n \n\n \n\n \n\n8.3\n\n \n\n \n\n \n\n(5.8\n\n)\n\n \n\n \n\n10.6\n\n \n\n \n\n \n\n8.5\n\n \n\n \n\n \n\n(2.6\n\n)\n\nTotal provision for deferred income taxes, net\n\n \n\n \n\n60.2\n\n \n\n \n\n \n\n16.3\n\n \n\n \n\n \n\n12.3\n\n \n\n \n\n \n\n62.5\n\n \n\n \n\n \n\n17.5\n\n \n\n \n\n \n\n16.2\n\n \n\nTotal income tax expense\n\n \n\n$\n\n89.8\n\n \n\n \n\n$\n\n79.1\n\n \n\n \n\n$\n\n56.2\n\n \n\n \n\n$\n\n105.1\n\n \n\n \n\n$\n\n93.2\n\n \n\n \n\n$\n\n68.8\n\n \n\n \n\nOGE Energy files consolidated income tax returns in the U.S. federal jurisdiction and various state jurisdictions. OG&E is a part of the consolidated income tax return of OGE Energy. With few exceptions, the Registrants are no longer subject to U.S. federal tax or state and local examinations by tax authorities for years prior to 2022. Income taxes are generally allocated to each company in the affiliated group, including OG&E, based on its stand-alone taxable income or loss. Federal investment tax credits previously claimed on electric utility property have been deferred and will be amortized to income over the life of the related property. Oklahoma investment tax credits are also earned on investments at electric generating facilities which further reduce OG&E's effective tax rate.\n\n76\n\n \n\n \n\nThe following tables present a reconciliation of the statutory tax rates to the effective income tax rate.\n\nOGE Energy\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nYear Ended December 31 (Dollars in millions)\n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\nStatutory federal tax rate\n\n \n\n$\n\n117.7\n\n \n\n \n\n21.0\n\n%\n\n$\n\n109.3\n\n \n\n \n\n21.0\n\n%\n\n$\n\n99.3\n\n \n\n \n\n21.0\n\n%\n\nState income taxes, net of federal income tax\nbenefit (A)\n\n \n\n \n\n8.5\n\n \n\n \n\n1.5\n\n \n\n \n\n7.3\n\n \n\n \n\n1.4\n\n \n\n \n\n(12.6\n\n)\n\n \n\n(2.7\n\n)\n\nAmortization of net unfunded deferred taxes\n\n \n\n \n\n(32.3\n\n)\n\n \n\n(5.7\n\n)\n\n \n\n(32.6\n\n)\n\n \n\n(6.3\n\n)\n\n \n\n(33.2\n\n)\n\n \n\n(7.0\n\n)\n\nFederal tax credits\n\n \n\n \n\n(2.6\n\n)\n\n \n\n(0.5\n\n)\n\n \n\n(2.6\n\n)\n\n \n\n(0.5\n\n)\n\n \n\n(3.6\n\n)\n\n \n\n(0.8\n\n)\n\nUncertain tax position\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n6.2\n\n \n\n \n\n1.3\n\n \n\nNontaxable or nondeductible items\n\n \n\n \n\n(1.5\n\n)\n\n \n\n(0.3\n\n)\n\n \n\n(2.3\n\n)\n\n \n\n(0.4\n\n)\n\n \n\n0.1\n\n \n\n \n\n0.1\n\n \n\nEffective income tax rate\n\n \n\n$\n\n89.8\n\n \n\n \n\n16.0\n\n%\n\n$\n\n79.1\n\n \n\n \n\n15.2\n\n%\n\n$\n\n56.2\n\n \n\n \n\n11.9\n\n%\n\n \n\nOG&E\n\n \n\n \n\n \n\nYear Ended December 31 (Dollars in millions)\n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\nStatutory federal tax rate\n\n$\n\n127.0\n\n \n\n \n\n21.0\n\n%\n\n$\n\n118.3\n\n \n\n \n\n21.0\n\n%\n\n$\n\n104.0\n\n \n\n \n\n21.0\n\n%\n\nState income taxes, net of federal income tax\nbenefit (A)\n\n \n\n \n\n10.5\n\n \n\n \n\n1.8\n\n \n\n \n\n9.1\n\n \n\n \n\n1.6\n\n \n\n \n\n0.8\n\n \n\n \n\n0.2\n\n \n\nAmortization of net unfunded deferred taxes\n\n \n\n \n\n(32.3\n\n)\n\n \n\n(5.3\n\n)\n\n \n\n(32.6\n\n)\n\n \n\n(5.8\n\n)\n\n \n\n(33.2\n\n)\n\n \n\n(6.7\n\n)\n\nFederal tax credits\n\n \n\n \n\n(2.6\n\n)\n\n \n\n(0.5\n\n)\n\n \n\n(2.6\n\n)\n\n \n\n(0.4\n\n)\n\n \n\n(3.6\n\n)\n\n \n\n(0.8\n\n)\n\nNontaxable or nondeductible items\n\n \n\n \n\n2.5\n\n \n\n \n\n0.4\n\n \n\n \n\n1.0\n\n \n\n \n\n0.2\n\n \n\n \n\n0.8\n\n \n\n \n\n0.2\n\n \n\nEffective income tax rate\n\n \n\n$\n\n105.1\n\n \n\n \n\n17.4\n\n%\n\n$\n\n93.2\n\n \n\n \n\n16.6\n\n%\n\n$\n\n68.8\n\n \n\n \n\n13.9\n\n%\n\n(A)\nIn 2025, state taxes in Oklahoma made up the majority (greater than 50 percent) of the tax effect in this category.\n\n \n\nThe deferred tax provisions are recognized as costs in the ratemaking process by the commissions having jurisdiction over the rates charged by OG&E. The following table presents the components of Deferred Income Taxes at December 31, 2025 and 2024.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nDeferred income tax liabilities, net:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccelerated depreciation and other property related differences\n\n \n\n$\n\n1,907.6\n\n \n\n \n\n$\n\n1,809.5\n\n \n\n \n\n$\n\n1,907.6\n\n \n\n \n\n$\n\n1,809.5\n\n \n\nRegulatory assets\n\n \n\n \n\n66.6\n\n \n\n \n\n \n\n65.6\n\n \n\n \n\n \n\n66.6\n\n \n\n \n\n \n\n65.6\n\n \n\nPension Plan\n\n \n\n \n\n21.5\n\n \n\n \n\n \n\n22.0\n\n \n\n \n\n \n\n38.5\n\n \n\n \n\n \n\n38.6\n\n \n\nCorporate owned life insurance\n\n \n\n \n\n3.1\n\n \n\n \n\n \n\n2.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nBond redemption-unamortized costs\n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n1.2\n\n \n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n1.2\n\n \n\nState tax credits\n\n \n\n \n\n(223.6\n\n)\n\n \n\n \n\n(223.8\n\n)\n\n \n\n \n\n(208.6\n\n)\n\n \n\n \n\n(208.5\n\n)\n\nIncome taxes recoverable from customers, net\n\n \n\n \n\n(173.6\n\n)\n\n \n\n \n\n(188.6\n\n)\n\n \n\n \n\n(173.6\n\n)\n\n \n\n \n\n(188.6\n\n)\n\nRegulatory liabilities\n\n \n\n \n\n(59.8\n\n)\n\n \n\n \n\n(57.3\n\n)\n\n \n\n \n\n(59.8\n\n)\n\n \n\n \n\n(57.3\n\n)\n\nAsset retirement obligations\n\n \n\n \n\n(18.8\n\n)\n\n \n\n \n\n(20.9\n\n)\n\n \n\n \n\n(18.8\n\n)\n\n \n\n \n\n(20.9\n\n)\n\nPostretirement medical and life insurance benefits\n\n \n\n \n\n(21.5\n\n)\n\n \n\n \n\n(19.1\n\n)\n\n \n\n \n\n(15.1\n\n)\n\n \n\n \n\n(12.6\n\n)\n\nAccrued liabilities\n\n \n\n \n\n(9.0\n\n)\n\n \n\n \n\n(15.7\n\n)\n\n \n\n \n\n(2.7\n\n)\n\n \n\n \n\n(9.8\n\n)\n\nDeferred federal investment tax credits\n\n \n\n \n\n(2.4\n\n)\n\n \n\n \n\n(2.5\n\n)\n\n \n\n \n\n(2.4\n\n)\n\n \n\n \n\n(2.5\n\n)\n\nAccrued vacation\n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n(1.9\n\n)\n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n(1.9\n\n)\n\nUncollectible accounts\n\n \n\n \n\n(1.0\n\n)\n\n \n\n \n\n(0.5\n\n)\n\n \n\n \n\n(1.0\n\n)\n\n \n\n \n\n(0.5\n\n)\n\nOther\n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n1.3\n\n \n\n \n\n \n\n(1.6\n\n)\n\nTotal deferred income tax liabilities, net\n\n \n\n$\n\n1,489.3\n\n \n\n \n\n$\n\n1,371.1\n\n \n\n \n\n$\n\n1,531.3\n\n \n\n \n\n$\n\n1,410.7\n\n \n\n \n\nAs of December 31, 2025, the Registrants have classified $14.7 million of unrecognized tax benefits as a reduction of deferred tax assets recorded. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation from this amount.\n\n77\n\n \n\n \n\nThe following table presents a reconciliation of the Registrants' total gross unrecognized tax benefits as of the years ended December 31, 2025, 2024 and 2023.\n\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nBalance at January 1\n\n \n\n$\n\n28.6\n\n \n\n \n\n$\n\n28.6\n\n \n\n \n\n$\n\n20.7\n\n \n\nTax positions related to current year:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdditions\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n7.9\n\n \n\nBalance at December 31\n\n \n\n$\n\n28.6\n\n \n\n \n\n$\n\n28.6\n\n \n\n \n\n$\n\n28.6\n\n \n\n \n\nThe Registrants recognize tax benefits from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. The tax benefits in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized on settlement. In 2023, the Registrants recorded a $7.9 million reserve related to a state tax position taken associated with the sale of Energy Transfer units.\n\n \n\nWhere applicable, the Registrants classify income tax-related interest and penalties as interest expense and other expense, respectively. With regard to uncertain tax positions, there were $0.6 million in income tax-related interest and no penalties recorded during both of the years ended December 31, 2025 and 2024 and no interest or penalties recorded during the year ended December 31, 2023.\n\n \n\nAt each of December 31, 2025, 2024 and 2023, there were $22.6 million of unrecognized tax benefits that, if recognized, would affect the annual effective tax rate.\n\n \n\nThe following table presents a summary of the Registrants' tax credits carried forward as deferred tax assets. Under current law, the Registrants expect future taxable income will be sufficient to utilize all credits before they expire.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n \n\n \n\n(In millions)\n\n \n\nCarry Forward Amount\n\n \n\n \n\nDeferred Tax Asset\n\n \n\n \n\nCarry Forward Amount\n\n \n\n \n\nDeferred Tax Asset\n\n \n\n \n\nEarliest Expiration Date\n\nState tax credits:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOklahoma investment tax credits\n\n \n\n$\n\n268.5\n\n \n\n \n\n$\n\n210.8\n\n \n\n \n\n$\n\n249.6\n\n \n\n \n\n$\n\n195.8\n\n \n\n \n\nN/A\n\nOklahoma capital investment board credits\n\n \n\n$\n\n12.8\n\n \n\n \n\n$\n\n12.8\n\n \n\n \n\n$\n\n12.8\n\n \n\n \n\n$\n\n12.8\n\n \n\n \n\nN/A\n\nN/A - not applicable\n\n \n\n8. Common Equity\n\n \n\nOGE Energy\n\n \n\nAutomatic Dividend Reinvestment and Stock Purchase Plan\n\n \n\nOGE Energy issued 269,387 new shares of common stock under its Automatic Dividend Reinvestment and Stock Purchase Plan in 2025 and received proceeds of $11.9 million. OGE Energy may, from time to time, issue additional shares under its Automatic Dividend Reinvestment and Stock Purchase Plan to fund capital requirements or working capital needs or have shares purchased on the open market. At December 31, 2025, there were 4,053,120 shares of unissued common stock reserved for issuance under OGE Energy's Automatic Dividend Reinvestment and Stock Purchase Plan.\n\n \n\nCommon Stock Public Offering and Forward Equity Sale Agreements\n\n \n\nOn November 20, 2025, OGE Energy announced a registered public offering of 8,023,256 shares of its common stock at a public offering price of $43.00 per share, for an aggregate amount of $345.0 million. In conjunction with this offering, underwriters exercised an option to purchase 1,203,488 additional shares at an aggregate public offering price of $51.7 million. Of the 9,226,744 shares offered, half, or 4,613,372 shares, were issued and sold by OGE Energy to the underwriters in November 2025 for $192.4 million (after underwriting discounts), and 4,613,272 shares are subject to FSAs. The 4,613,372 shares that are subject to the FSAs provide for settlement on a settlement date or dates to be specified at OGE Energy’s discretion on or prior to May 27, 2027. The forward sale\n\n78\n\n \n\nprice was initially $41.71 per share and is subject to adjustment based on a floating interest rate factor equal to the overnight bank funding rate less a spread and less expected dividends on OGE Energy's common stock during the period the instruments are outstanding.\n\n \n\nThe FSAs will be physically settled with common shares issued by OGE Energy, unless OGE Energy elects to settle the agreements in net cash or net shares, subject to certain conditions. On a settlement date or dates, if OGE Energy elects to physically settle the FSAs, OGE Energy will issue shares of common stock to the various counterparties at the then-applicable forward sale price and receive issuance proceeds at that time.\n\n \n\nAt December 31, 2025, OGE Energy could have settled the FSAs with physical delivery of 4,613,372 shares of common stock to the counterparties in exchange for cash of $193.0 million. The FSAs could have also been settled at December 31, 2025, with delivery of $7.9 million of cash or approximately 181,000 shares of common stock to the counterparties, if OGE Energy had elected to net cash or net share settle, respectively. The FSAs have been classified as an equity transaction because they are indexed to OGE Energy’s common stock and the other requirements necessary for equity classification are met. As a result of the equity classification, no gain or loss will be recognized within earnings due to subsequent changes in the fair value of the FSAs.\n\n \n\nPrior to settlement, the potentially issuable shares pursuant to the FSAs will be reflected in OGE Energy's diluted earnings per share calculations using the treasury stock method. Under this method, the number of shares of OGE Energy's common stock used in calculating diluted earnings per share for a reporting period would be increased by the number of shares, if any, that would be issued upon physical settlement of the FSAs, less the number of shares that could be purchased by OGE Energy in the market with the proceeds received from issuance (based on the average market price during that reporting period). Share dilution occurs when the average market price of OGE Energy's stock during the reporting period is higher than the then-applicable forward sale price as of the end of the reporting period. For the year ended December 31, 2025, approximately 19,000 incremental shares were included in the calculation of diluted earnings per share related to the securities under the FSAs.\n\n \n\nEarnings Per Share\n\n \n\nBasic earnings per share is calculated by dividing net income attributable to OGE Energy by the weighted-average number of OGE Energy's common shares outstanding during the period. In the calculation of diluted earnings per share, weighted-average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. Potentially dilutive securities for OGE Energy consist of performance units, restricted stock units and shares under the FSAs, as further discussed above.\n\n \n\nThe following table presents the calculation of basic and diluted earnings per share for OGE Energy.\n\n(In millions except per share data)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNet income\n\n \n\n$\n\n470.7\n\n \n\n \n\n$\n\n441.5\n\n \n\n \n\n$\n\n416.8\n\n \n\nAverage common shares outstanding:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBasic average common shares outstanding\n\n \n\n \n\n201.9\n\n \n\n \n\n \n\n200.8\n\n \n\n \n\n \n\n200.3\n\n \n\nEffect of dilutive securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContingently issuable shares (performance and restricted stock units)\n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n0.6\n\n \n\nForward equity sale agreements\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nDiluted average common shares outstanding\n\n \n\n \n\n202.5\n\n \n\n \n\n \n\n201.3\n\n \n\n \n\n \n\n200.9\n\n \n\nBasic earnings per average common share\n\n \n\n$\n\n2.33\n\n \n\n \n\n$\n\n2.20\n\n \n\n \n\n$\n\n2.08\n\n \n\nDiluted earnings per average common share\n\n \n\n$\n\n2.32\n\n \n\n \n\n$\n\n2.19\n\n \n\n \n\n$\n\n2.07\n\n \n\nAnti-dilutive shares excluded from earnings per share calculation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\nDividend Restrictions\n\n \n\nOGE Energy's Certificate of Incorporation places restrictions on the amount of common stock dividends it can pay when preferred stock is outstanding. Before OGE Energy can pay any dividends on its common stock, the holders of any of its preferred stock that may be outstanding are entitled to receive their dividends at the respective rates as may be provided for the shares of their series. As there is no preferred stock outstanding, that restriction did not place any effective limit on OGE Energy's ability to pay dividends to its shareholders. OGE Energy utilizes dividends from OG&E to pay dividends to its shareholders.\n\n79\n\n \n\n \n\nPursuant to the leverage restriction in OGE Energy's revolving credit agreement, OGE Energy must maintain a percentage of debt to total capitalization at a level that does not exceed 70 percent. The payment of cash dividends indirectly results in an increase in the percentage of debt to total capitalization, which results in the restriction of approximately $1.0 billion of OGE Energy's retained earnings from being paid out in dividends. Accordingly, approximately $2.6 billion of OGE Energy's retained earnings as of December 31, 2025 are unrestricted for the payment of dividends.\n\n \n\nOG&E\n\n \n\nThere were no new shares of OG&E common stock issued in 2025, 2024 or 2023.\n\n \n\nDividend Restrictions\n\n \n\nPursuant to the Federal Power Act, OG&E is restricted from paying dividends from its capital accounts. Dividends are paid from retained earnings. Pursuant to the leverage restriction in OG&E's revolving credit agreement, OG&E must maintain a percentage of debt to total capitalization at a level that does not exceed 65 percent. The payment of cash dividends indirectly results in an increase in the percentage of debt to total capitalization, which results in the restriction of approximately $918.9 million of OG&E's retained earnings from being paid out in dividends. Accordingly, approximately $3.1 billion of OG&E's retained earnings as of December 31, 2025 are unrestricted for the payment of dividends.\n\n \n\n9. Long-Term Debt\n\n \n\nA summary of the Registrants' long-term debt is included in the statements of capitalization. At December 31, 2025, the Registrants were in compliance with all of their debt agreements.\n\n \n\nMaturities of OGE Energy's consolidated long-term debt during the next five years consist of $241.0 million in 2027, $500.0 million in 2028, $350.0 million in 2029 and $600.0 million in 2030. Maturities of OG&E's long-term debt during the next five years consist of $181.0 million in 2027, $500.0 million in 2028 and $600.0 million in 2030. All other long-term debt of the Registrants matures after 2032.\n\n \n\nThe Registrants have previously incurred costs related to debt refinancing. Unamortized loss on reacquired debt is classified as a Non-Current Regulatory Asset in the balance sheets. Unamortized debt expense and unamortized premium and discount on long-term debt are classified as Long-Term Debt in the balance sheets and are being amortized over the life of the respective debt.\n\n \n\nOG&E Industrial Authority Bonds\n\n \n\nOG&E has tax-exempt pollution control bonds with optional redemption provisions that allow the holders to request repayment of the bonds on any business day. The following table presents information about these bonds, which can be tendered at the option of the holder during the next 12 months.\n\nSeries\n\nDate Due\n\nAmount\n\n \n\n \n\n \n\n \n\n \n\n(In millions)\n\n \n\n1.65%\n\n \n\n—\n\n \n\n4.60%\n\nMuskogee Industrial Authority, June 1, 2027\n\n$\n\n56.0\n\n \n\n1.80%\n\n \n\n—\n\n \n\n4.60%\n\nGarfield Industrial Authority, October 1, 2039\n\n \n\n47.0\n\n \n\nTotal (redeemable during next 12 months)\n\n$\n\n103.0\n\n \n\n \n\nOG&E repaid $32.4 million of Muskogee Industrial Authority bonds that matured on January 1, 2025.\n\n \n\nAll of these bonds are subject to an optional tender at the request of the holders, at 100 percent of the principal amount, together with accrued and unpaid interest to the date of purchase. The bond holders, on any business day, can request repayment of the bond by delivering an irrevocable notice to the tender agent stating the principal amount of the bond, payment instructions for the purchase price and the business day the bond is to be purchased. The repayment option may only be exercised by the holder of a bond for the principal amount. When a tender notice has been received by the trustee, a third-party remarketing agent for the bonds will attempt to remarket any bonds tendered for purchase. This process occurs once per week. Since the original issuance of these series of bonds in 1995 and 1997, the remarketing agent has successfully remarketed all tendered bonds. If the remarketing agent is unable to\n\n80\n\n \n\nremarket any such bonds, OG&E is obligated to repurchase such unremarketed bonds. As OG&E has both the intent and ability to refinance the bonds on a long-term basis and such ability is supported by an ability to consummate the refinancing, the remarketing of bonds does not result in short-term debt classification in the balance sheets. OG&E believes that it has sufficient liquidity to meet these obligations.\n\n \n\nIssuance of Long-Term Debt\n\n \n\nOn April 1, 2025, OG&E issued $350.0 million of 5.80 percent senior notes due April 1, 2055. The proceeds from this issuance were added to OG&E's general funds and used for the repayment of short-term debt and borrowings under its revolving credit facility, and to fund OG&E's capital investment program and working capital needs.\n\n \n\n10. Credit Facilities and Short-Term Debt\n\n \n\nThe Registrants borrow, as necessary, by the issuance of commercial paper and by borrowings under their revolving credit agreements.\n\n \n\nThe following table presents information regarding the Registrants' revolving credit agreements at December 31, 2025.\n\nEntity\n\nAggregate Commitment\n\n \n\nAmount Outstanding (A)\n\n \n\nWeighted-Average Interest Rate\n\nExpiration\n\n(In millions)\n\n \n\n \n\n \n\n \n\n \n\nOGE Energy (B)\n\n$\n\n550.0\n\n \n\n$\n\n292.0\n\n \n\n \n\n4.12\n\n%\n\n(F)\n\nDecember 18, 2029\n\nOGE Energy (C)\n\n \n\n60.0\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n(F)\n\nMay 24, 2027\n\nOG&E (D)(E)\n\n \n\n550.0\n\n \n\n \n\n0.4\n\n \n\n \n\n1.20\n\n%\n\n(F)\n\nDecember 18, 2029\n\nTotal\n\n$\n\n1,160.0\n\n \n\n$\n\n292.4\n\n \n\n \n\n4.12\n\n%\n\n \n\n \n\n(A)\nIncludes direct borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit at December 31, 2025. Typically, OGE Energy issues commercial paper to address consolidated operational activity, and OG&E will borrow from OGE Energy under the intercompany borrowing agreement as discussed below in footnote (E).\n\n(B)\nThis bank facility is available to back up OGE Energy's commercial paper borrowings and to provide revolving credit borrowings. This bank facility can also be used as a letter of credit facility.\n\n(C)\nOGE Energy has a $120.0 million floating rate unsecured three-year credit agreement, of which $60.0 million is considered a revolving loan, which is included in the table above, and $60.0 million is considered a term loan. The credit agreement, under certain circumstances, may be increased to a maximum commitment limit of $155.0 million and includes a maximum leverage ratio of 0.70 to 1.0. The other covenants under this credit agreement are substantially the same as OGE Energy's existing $550.0 million revolving credit agreement.\n\n(D)\nThis bank facility is available to back up OG&E's commercial paper borrowings and to provide revolving credit borrowings. This bank facility can also be used as a letter of credit facility.\n\n(E)\nOG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to $450.0 million of OGE Energy's revolving credit amount. This agreement has a termination date of December 18, 2029. At December 31, 2025, there was $78.3 million in advances to parent, and there were no borrowings under the intercompany borrowing agreement.\n\n(F)\nRepresents the weighted-average interest rate for the outstanding borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit.\n\n \n\nOGE Energy's credit facility has a financial covenant requiring that OGE Energy maintains a maximum debt to capitalization ratio of 70 percent, as defined in such facility. OG&E's credit facility has a financial covenant requiring that OG&E maintains a maximum debt to capitalization ratio of 65 percent, as defined in such facility. The Registrants' facilities each also contain covenants which restrict the respective borrower and certain of its subsidiaries in respect of, among other things, mergers and consolidations, sales of all or substantially all assets, incurrence of liens and transactions with affiliates. The Registrants' facilities are each subject to acceleration upon the occurrence of any default, including, among others, payment defaults on such facilities, breach of representations, warranties and covenants, acceleration of indebtedness (other than intercompany and non-recourse indebtedness) of $100.0 million or more in the aggregate, change of control (as defined in each such facility), nonpayment of uninsured judgments in excess of $100.0 million and the occurrence of certain Employee Retirement Income Security Act and bankruptcy events, subject where applicable to specified cure periods.\n\n \n\nThe Registrants' ability to access the commercial paper market could be adversely impacted by a credit ratings downgrade or major market disruptions. Pricing grids associated with the Registrants' credit facilities could cause annual fees and borrowing rates\n\n81\n\n \n\nto increase if an adverse rating impact occurs. The impact of any future downgrade could include an increase in the costs of the Registrants' short-term borrowings, but a reduction in the Registrants' credit ratings would not result in any defaults or accelerations. Any future downgrade could also lead to higher long-term borrowing costs and, if below investment grade, would require the Registrants to post collateral or letters of credit.\n\n \n\nOG&E must obtain regulatory approval from the FERC in order to borrow on a short-term basis. OG&E has the necessary regulatory approvals to incur up to $1.0 billion in short-term borrowings at any one time for a two-year period beginning January 1, 2025 and ending December 31, 2026.\n\n \n\n11. Retirement Plans and Postretirement Benefit Plans\n\n \n\nOGE Energy sponsors defined benefit pension plans, 401(k) savings plans and other postretirement plans covering certain employees of the Registrants. The columns and table designated as \"OGE Energy\" within this Note 11 include the OG&E standalone activity, as OGE Energy represents consolidated results.\n\n \n\nPension Plan and Restoration of Retirement Income Plan\n\nOGE Energy periodically makes contributions to the Pension Plan considering information such as net periodic pension expense and funded status from OGE Energy's actuarial consultants. Such contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. OGE Energy made Pension Plan contributions of $13.5 million and $10.0 million in 2025 and 2024, respectively. OGE Energy expects to contribute $15.0 million to its Pension Plan in 2026. OGE Energy could be required to make additional contributions if the value of its pension trust and postretirement benefit plan trust assets are adversely impacted by a major market disruption in the future.\n\n \n\nIn accordance with ASC Topic 715, \"Compensation - Retirement Benefits,\" a one-time settlement charge is required to be recorded by an organization when lump sum payments or other settlements that relieve the organization from the responsibility for the pension benefit obligation during the plan year exceed the service cost and interest cost components of the organization's net periodic pension cost. During 2023, the Registrants experienced an increase in both the number of employees electing to retire and the amount of lump sum payments paid to such employees upon retirement, which resulted in the Registrants recording pension plan settlement charges as presented in the Pension Plan net periodic benefit cost tables below. The pension settlement charges did not require a cash outlay by the Registrants and did not increase total pension expense over time, as the charges were an acceleration of costs that otherwise would be recognized as pension expense in future periods.\n\nOGE Energy provides a Restoration of Retirement Income Plan to those participants in OGE Energy's Pension Plan whose benefits are subject to certain limitations of the Code. Participants in the Restoration of Retirement Income Plan receive the same benefits that they would have received under OGE Energy's Pension Plan in the absence of limitations imposed by the federal tax laws. The Restoration of Retirement Income Plan is intended to be an unfunded plan.\n\n \n\nOG&E's employees participate in OGE Energy's Pension Plan and Restoration of Retirement Income Plan.\n\n \n\nObligations and Funded Status\n\n \n\nThe details of the funded status of OGE Energy's Pension Plan, the Restoration of Retirement Income Plan and the postretirement benefit plans and the amounts included in the balance sheets for 2025 and 2024 are included in the following tables. These amounts have been recorded in Accrued Benefit Obligations with the offset in Accumulated Other Comprehensive Loss (except OG&E's portion, which is recorded as a regulatory asset as discussed in Note 1) in the balance sheets. The amounts in Accumulated Other Comprehensive Loss and those recorded as a regulatory asset represent a net periodic benefit cost to be recognized in the statements of income in future periods. The benefit obligation for OGE Energy's Pension Plan and the Restoration of Retirement Income Plan represents the projected benefit obligation, while the benefit obligation for the postretirement benefit plans represents the accumulated postretirement benefit obligation. The accumulated postretirement benefit obligation for OGE Energy's Pension Plan and Restoration of Retirement Income Plan differs from the projected benefit obligation in that the former includes no assumption about future compensation levels.\n\n82\n\n \n\n \n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n \n\nPension Plan\n\n \n\n \n\nRestoration of Retirement\nIncome Plan\n\n \n\n \n\nPension Plan\n\n \n\n \n\nRestoration of Retirement\nIncome Plan\n\n \n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nChange in benefit obligation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBeginning obligations\n\n \n\n$\n\n303.1\n\n \n\n \n\n$\n\n303.7\n\n \n\n \n\n$\n\n7.0\n\n \n\n \n\n$\n\n5.5\n\n \n\n \n\n$\n\n263.9\n\n \n\n \n\n$\n\n238.6\n\n \n\n \n\n$\n\n1.4\n\n \n\n \n\n$\n\n—\n\n \n\nService cost\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n5.3\n\n \n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n5.3\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\nInterest cost\n\n \n\n \n\n16.2\n\n \n\n \n\n \n\n15.6\n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n14.1\n\n \n\n \n\n \n\n13.4\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\nRegulatory classification of certain pension costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n23.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.1\n\n \n\nSpecial termination benefits\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nActuarial losses (gains)\n\n \n\n \n\n11.5\n\n \n\n \n\n \n\n(2.9\n\n)\n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n8.9\n\n \n\n \n\n \n\n(2.2\n\n)\n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.1\n\n \n\nBenefits paid\n\n \n\n \n\n(21.5\n\n)\n\n \n\n \n\n(18.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(18.9\n\n)\n\n \n\n \n\n(15.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nEnding obligations\n\n \n\n$\n\n315.2\n\n \n\n \n\n$\n\n303.1\n\n \n\n \n\n$\n\n9.3\n\n \n\n \n\n$\n\n7.0\n\n \n\n \n\n$\n\n273.9\n\n \n\n \n\n$\n\n263.9\n\n \n\n \n\n$\n\n1.9\n\n \n\n \n\n$\n\n1.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in plans' assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBeginning fair value\n\n \n\n$\n\n246.9\n\n \n\n \n\n$\n\n243.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n211.6\n\n \n\n \n\n$\n\n191.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nActual return on plans' assets\n\n \n\n \n\n23.3\n\n \n\n \n\n \n\n11.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n20.0\n\n \n\n \n\n \n\n10.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nEmployer contributions\n\n \n\n \n\n13.5\n\n \n\n \n\n \n\n10.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13.5\n\n \n\n \n\n \n\n10.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nRegulatory classification of certain pension costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n15.2\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nBenefits paid\n\n \n\n \n\n(21.5\n\n)\n\n \n\n \n\n(18.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(18.9\n\n)\n\n \n\n \n\n(15.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nEnding fair value\n\n \n\n$\n\n262.2\n\n \n\n \n\n$\n\n246.9\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n226.2\n\n \n\n \n\n$\n\n211.6\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nFunded status at end of year\n\n \n\n$\n\n(53.0\n\n)\n\n \n\n$\n\n(56.2\n\n)\n\n \n\n$\n\n(9.3\n\n)\n\n \n\n$\n\n(7.0\n\n)\n\n \n\n$\n\n(47.7\n\n)\n\n \n\n$\n\n(52.3\n\n)\n\n \n\n$\n\n(1.9\n\n)\n\n \n\n$\n\n(1.4\n\n)\n\nAccumulated postretirement benefit obligation\n\n \n\n$\n\n305.6\n\n \n\n \n\n$\n\n289.4\n\n \n\n \n\n$\n\n8.9\n\n \n\n \n\n$\n\n6.8\n\n \n\n \n\n$\n\n264.3\n\n \n\n \n\n$\n\n250.2\n\n \n\n \n\n$\n\n1.7\n\n \n\n \n\n$\n\n1.4\n\n \n\n \n\nFor the year ended December 31, 2025, Pension Plan actuarial losses were primarily due to an updated experience study and a decreased discount rate. For the year ended December 31, 2024, Pension Plan actuarial gains were primarily due to an increased discount rate, partially offset by an increased interest crediting rate.\n\n \n\n83\n\n \n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n \n\nPostretirement Benefit Plans\n\n \n\n \n\nPostretirement Benefit Plans\n\n \n\nDecember 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nChange in benefit obligation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBeginning obligations\n\n \n\n$\n\n98.1\n\n \n\n \n\n$\n\n103.3\n\n \n\n \n\n$\n\n74.7\n\n \n\n \n\n$\n\n77.3\n\n \n\nService cost\n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\nInterest cost\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n5.2\n\n \n\n \n\n \n\n4.1\n\n \n\n \n\n \n\n3.9\n\n \n\nParticipants' contributions\n\n \n\n \n\n2.5\n\n \n\n \n\n \n\n3.5\n\n \n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n2.4\n\n \n\nActuarial gains\n\n \n\n \n\n(3.8\n\n)\n\n \n\n \n\n(3.1\n\n)\n\n \n\n \n\n(1.9\n\n)\n\n \n\n \n\n(2.1\n\n)\n\nRegulatory classification of certain pension costs\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1.4\n\n \n\nBenefits paid\n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n(10.9\n\n)\n\n \n\n \n\n(9.1\n\n)\n\n \n\n \n\n(8.3\n\n)\n\nEnding obligations\n\n \n\n$\n\n90.4\n\n \n\n \n\n$\n\n98.1\n\n \n\n \n\n$\n\n69.7\n\n \n\n \n\n$\n\n74.7\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nChange in plans' assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBeginning fair value\n\n \n\n$\n\n30.0\n\n \n\n \n\n$\n\n32.7\n\n \n\n \n\n$\n\n27.2\n\n \n\n \n\n$\n\n29.6\n\n \n\nActual return on plans' assets\n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n1.7\n\n \n\n \n\n \n\n(1.4\n\n)\n\nEmployer contributions\n\n \n\n \n\n6.0\n\n \n\n \n\n \n\n6.3\n\n \n\n \n\n \n\n4.6\n\n \n\n \n\n \n\n4.9\n\n \n\nParticipants' contributions\n\n \n\n \n\n2.5\n\n \n\n \n\n \n\n3.5\n\n \n\n \n\n \n\n1.8\n\n \n\n \n\n \n\n2.4\n\n \n\nBenefits paid\n\n \n\n \n\n(11.9\n\n)\n\n \n\n \n\n(10.9\n\n)\n\n \n\n \n\n(9.1\n\n)\n\n \n\n \n\n(8.3\n\n)\n\nEnding fair value\n\n \n\n$\n\n28.4\n\n \n\n \n\n$\n\n30.0\n\n \n\n \n\n$\n\n26.2\n\n \n\n \n\n$\n\n27.2\n\n \n\nFunded status at end of year\n\n \n\n$\n\n(62.0\n\n)\n\n \n\n$\n\n(68.1\n\n)\n\n \n\n$\n\n(43.5\n\n)\n\n \n\n$\n\n(47.5\n\n)\n\n \n\nNet Periodic Benefit Cost\n\n \n\nThe following tables present the net periodic benefit cost components, before consideration of capitalized amounts, of OGE Energy's Pension Plan, Restoration of Retirement Income Plan and postretirement benefit plans that are included in the financial statements. Service cost is presented within Other Operation and Maintenance Expense, and the remaining net periodic benefit cost components as listed in the following tables are presented within Other Net Periodic Benefit Income (Expense) in the statements of income. OG&E recovers specific amounts of pension and postretirement medical costs in rates approved in its Oklahoma rate reviews. In accordance with approved orders, OG&E defers the difference between actual pension and postretirement medical expenses and the amount approved in its last Oklahoma rate review as a regulatory asset or regulatory liability. These amounts have been recorded in the Pension tracker in the regulatory assets and liabilities table in Note 1 and within Other Net Periodic Benefit Income (Expense) in the statements of income.\n\nOGE Energy\n\n \n\nPension Plan\n\n \n\n \n\nRestoration of Retirement\nIncome Plan\n\n \n\nYear Ended December 31\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nService cost\n\n \n\n$\n\n5.4\n\n \n\n \n\n$\n\n5.3\n\n \n\n \n\n$\n\n5.4\n\n \n\n \n\n$\n\n1.0\n\n \n\n \n\n$\n\n1.0\n\n \n\n \n\n$\n\n1.0\n\n \n\nInterest cost\n\n \n\n \n\n16.2\n\n \n\n \n\n \n\n15.6\n\n \n\n \n\n \n\n15.9\n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.3\n\n \n\nExpected return on plan assets\n\n \n\n \n\n(16.5\n\n)\n\n \n\n \n\n(16.5\n\n)\n\n \n\n \n\n(16.2\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nAmortization of net loss\n\n \n\n \n\n6.2\n\n \n\n \n\n \n\n6.5\n\n \n\n \n\n \n\n8.0\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nSpecial termination benefits\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nAmortization of unrecognized prior service cost (A)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n0.3\n\n \n\nSettlement cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n21.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.5\n\n \n\nNet periodic benefit cost\n\n \n\n$\n\n11.8\n\n \n\n \n\n$\n\n10.9\n\n \n\n \n\n$\n\n34.9\n\n \n\n \n\n$\n\n1.8\n\n \n\n \n\n$\n\n1.6\n\n \n\n \n\n$\n\n2.1\n\n \n\n(A)\nUnamortized prior service cost is amortized on a straight-line basis over the average remaining service period to the first eligibility age of participants who are expected to receive a benefit and are active at the date of the plan amendment.\n\n \n\n84\n\n \n\nOG&E\n\n \n\nPension Plan\n\n \n\n \n\nRestoration of Retirement\nIncome Plan\n\n \n\nYear Ended December 31\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nService cost\n\n \n\n$\n\n5.4\n\n \n\n \n\n$\n\n5.3\n\n \n\n \n\n$\n\n4.4\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n—\n\n \n\nInterest cost\n\n \n\n \n\n14.1\n\n \n\n \n\n \n\n13.4\n\n \n\n \n\n \n\n12.6\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nExpected return on plan assets\n\n \n\n \n\n(14.2\n\n)\n\n \n\n \n\n(14.0\n\n)\n\n \n\n \n\n(12.9\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nAmortization of net loss\n\n \n\n \n\n5.9\n\n \n\n \n\n \n\n6.2\n\n \n\n \n\n \n\n6.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nSpecial termination benefits\n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nSettlement cost\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n20.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.4\n\n \n\nTotal net periodic benefit cost\n\n \n\n \n\n11.7\n\n \n\n \n\n \n\n10.9\n\n \n\n \n\n \n\n31.4\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.2\n\n \n\n \n\n \n\n0.4\n\n \n\nPlus: Amount allocated from OGE Energy\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3.0\n\n \n\n \n\n \n\n1.6\n\n \n\n \n\n \n\n1.4\n\n \n\n \n\n \n\n1.7\n\n \n\nNet periodic benefit cost\n\n \n\n$\n\n11.7\n\n \n\n \n\n$\n\n10.9\n\n \n\n \n\n$\n\n34.4\n\n \n\n \n\n$\n\n1.8\n\n \n\n \n\n$\n\n1.6\n\n \n\n \n\n$\n\n2.1\n\n \n\n \n\nIn addition to the net periodic benefit cost amounts recognized, as presented in the table above, for the Pension and Restoration of Retirement Income Plans in 2025, 2024 and 2023, the Registrants recognized the following:\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nChange in pension expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)\n\n \n\n$\n\n(0.4\n\n)\n\n \n\n$\n\n5.8\n\n \n\n \n\n$\n\n33.3\n\n \n\nDeferral of pension expense related to pension settlement and special termination benefits charges included in the above line item:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOklahoma jurisdiction (A)\n\n \n\n$\n\n0.5\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n20.1\n\n \n\nArkansas jurisdiction (A)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1.9\n\n \n\n(A)\nIncluded in the pension regulatory asset in each jurisdiction, as indicated in the regulatory assets and liabilities table in Note 1.\n\n \n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n \n\nPostretirement Benefit Plans\n\n \n\n \n\nPostretirement Benefit Plans\n\n \n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nService cost\n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\nInterest cost\n\n \n\n \n\n5.4\n\n \n\n \n\n \n\n5.2\n\n \n\n \n\n \n\n5.2\n\n \n\n \n\n \n\n4.1\n\n \n\n \n\n \n\n3.9\n\n \n\n \n\n \n\n3.9\n\n \n\nExpected return on plan assets\n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n(1.7\n\n)\n\n \n\n \n\n(1.5\n\n)\n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n(1.6\n\n)\n\nAmortization of net loss (gain)\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n(0.2\n\n)\n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nTotal net periodic benefit cost\n\n \n\n \n\n4.2\n\n \n\n \n\n \n\n3.5\n\n \n\n \n\n \n\n3.4\n\n \n\n \n\n \n\n3.3\n\n \n\n \n\n \n\n2.6\n\n \n\n \n\n \n\n2.4\n\n \n\nPlus: Amount allocated from OGE Energy\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n0.5\n\n \n\nNet periodic benefit cost\n\n \n\n$\n\n4.2\n\n \n\n \n\n$\n\n3.5\n\n \n\n \n\n$\n\n3.4\n\n \n\n \n\n$\n\n3.7\n\n \n\n \n\n$\n\n3.1\n\n \n\n \n\n$\n\n2.9\n\n \n\n \n\nIn addition to the net periodic benefit cost or income amounts recognized, as presented in the table above, for the postretirement benefit plans in 2025, 2024 and 2023, the Registrants recognized the following:\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nChange in postretirement expense to maintain allowed recoverable amount in Oklahoma jurisdiction (A)\n\n \n\n$\n\n0.6\n\n \n\n \n\n$\n\n2.3\n\n \n\n \n\n$\n\n4.4\n\n \n\n(A)\nIncluded in the pension regulatory asset, as indicated in the regulatory assets and liabilities table in Note 1.\n\n \n\nThe following table presents the amount of net periodic benefit cost capitalized and attributable to each of the Registrants for OGE Energy's Pension Plan and postretirement benefit plans in 2025, 2024 and 2023.\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n(In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCapitalized portion of net periodic pension benefit cost\n\n \n\n$\n\n2.4\n\n \n\n \n\n$\n\n2.2\n\n \n\n \n\n$\n\n2.2\n\n \n\n \n\n$\n\n2.4\n\n \n\n \n\n$\n\n2.2\n\n \n\n \n\n$\n\n1.9\n\n \n\nCapitalized portion of net periodic postretirement benefit cost\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n$\n\n0.1\n\n \n\n \n\n85\n\n \n\n \n\nRate Assumptions\n\n \n\nPension Plan and\nRestoration of Retirement Income Plan\n\n \n\n \n\nPostretirement\nBenefit Plans\n\n \n\nYear Ended December 31\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nAssumptions to determine benefit obligations:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDiscount rate\n\n \n\n \n\n5.45\n\n%\n\n \n\n \n\n5.70\n\n%\n\n \n\n \n\n5.40\n\n%\n\n \n\n \n\n5.45\n\n%\n\n \n\n \n\n5.70\n\n%\n\n \n\n \n\n5.35\n\n%\n\nRate of compensation increase\n\n \n\n \n\n4.20\n\n%\n\n \n\n \n\n4.20\n\n%\n\n \n\n \n\n4.20\n\n%\n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\nInterest crediting rate\n\n \n\n \n\n4.25\n\n%\n\n \n\n \n\n4.25\n\n%\n\n \n\n \n\n3.50\n\n%\n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\nAssumptions to determine net periodic benefit cost:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDiscount rate\n\n \n\n \n\n5.70\n\n%\n\n \n\n \n\n5.40\n\n%\n\n \n\n \n\n5.45\n\n%\n\n \n\n \n\n5.70\n\n%\n\n \n\n \n\n5.35\n\n%\n\n \n\n \n\n5.40\n\n%\n\nExpected return on plan assets\n\n \n\n \n\n7.00\n\n%\n\n \n\n \n\n7.00\n\n%\n\n \n\n \n\n7.00\n\n%\n\n \n\n \n\n4.50\n\n%\n\n \n\n \n\n4.00\n\n%\n\n \n\n \n\n4.00\n\n%\n\nRate of compensation increase\n\n \n\n \n\n4.20\n\n%\n\n \n\n \n\n4.20\n\n%\n\n \n\n \n\n4.20\n\n%\n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\nInterest crediting rate\n\n \n\n \n\n4.25\n\n%\n\n \n\n \n\n3.50\n\n%\n\n \n\n \n\n3.50\n\n%\n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\n \n\nN/A\n\n \n\nN/A - not applicable\n\nThe discount rate used to compute the present value of plan liabilities is based generally on rates of high-grade corporate bonds with maturities similar to the average period over which benefits will be paid. The discount rate used to determine net benefit cost for the current year is the same discount rate used to determine the benefit obligation as of the previous year's balance sheet date, unless a plan settlement occurs during the current year that requires an updated discount rate for net periodic cost measurement. For 2025 and 2024, the Pension Plan discount rates used to determine net periodic benefit cost are disclosed on a weighted-average basis.\n\n \n\nThe overall expected rate of return on plan assets assumption is used in determining net periodic benefit cost. The rate of return on plan assets assumption is the average long-term rate of earnings expected on the funds currently invested and to be invested for the purpose of providing benefits specified by the Pension Plan or postretirement benefit plans. This assumption is reexamined at least annually and updated as necessary. The rate of return on plan assets assumption reflects a combination of historical return analysis, forward-looking return expectations and the plans' current and expected asset allocation.\n\n \n\nThe assumed health care cost trend rates have a significant effect on the amounts reported for postretirement medical benefit plans. Future health care cost trend rates are assumed to be 8.0 percent in 2026 with the rates trending downward to 4.0 percent by 2034.\n\n \n\nPension Plan\n\n \n\nPension Plan Investments, Policies and Strategies\n\nThe Pension Plan assets are held in a trust which follows an investment policy and strategy designed to reduce the funded status volatility of the Plan by utilizing liability driven investing. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The investment policy follows a glide path approach that shifts a higher portfolio weighting to fixed income as the Plan's funded status increases. The following table presents the targeted fixed income and equity allocations at different funded status levels.\n\nProjected Benefit Obligation Funded Status Thresholds\n\n \n\n<90%\n\n \n\n95%\n\n \n\n100%\n\n \n\n105%\n\n \n\n110%\n\n \n\n115%\n\n \n\n120%\n\nFixed income\n\n \n\n50%\n\n \n\n58%\n\n \n\n65%\n\n \n\n73%\n\n \n\n80%\n\n \n\n85%\n\n \n\n90%\n\nEquity\n\n \n\n50%\n\n \n\n42%\n\n \n\n35%\n\n \n\n27%\n\n \n\n20%\n\n \n\n15%\n\n \n\n10%\n\nTotal\n\n \n\n100%\n\n \n\n100%\n\n \n\n100%\n\n \n\n100%\n\n \n\n100%\n\n \n\n100%\n\n \n\n100%\n\n \n\n86\n\n \n\n \n\nWithin the portfolio's overall allocation to equities, the funds are allocated according to the guidelines in the following table.\n\nAsset Class\n\n \n\nTarget Allocation\n\n \n\nMinimum\n\n \n\nMaximum\n\nDomestic Large Cap Equity\n\n \n\n40%\n\n \n\n35%\n\n \n\n60%\n\nDomestic Mid-Cap Equity\n\n \n\n15%\n\n \n\n5%\n\n \n\n25%\n\nDomestic Small-Cap Equity\n\n \n\n25%\n\n \n\n5%\n\n \n\n30%\n\nInternational Equity\n\n \n\n20%\n\n \n\n10%\n\n \n\n30%\n\n \n\nOGE Energy has retained an investment consultant responsible for the general investment oversight, analysis, monitoring investment guideline compliance and providing quarterly reports to certain of the Registrants' members and OGE Energy's Investment Committee. The various investment managers used by the trust operate within the general operating objectives as established in the investment policy and within the specific guidelines established for each investment manager's respective portfolio.\n\n \n\nThe portfolio is rebalanced at least on an annual basis to bring the asset allocations of various managers in line with the target asset allocation listed above. More frequent rebalancing may occur if there are dramatic price movements in the financial markets which may cause the trust's exposure to any asset class to exceed or fall below the established allowable guidelines.\n\n \n\nTo evaluate the progress of the portfolio, investment performance is reviewed quarterly. It is, however, expected that performance goals will be met over a full market cycle, normally defined as a three- to five-year period. Analysis of performance is within the context of the prevailing investment environment and the advisors' investment style. The goal of the trust is to provide a rate of return consistently from three percent to five percent over the rate of inflation (as measured by the national Consumer Price Index) on a fee adjusted basis over a typical market cycle of no less than three years and no more than five years. Each investment manager is expected to outperform its respective benchmark.\n\n \n\n87\n\n \n\nThe following table presents a list of each asset class utilized with appropriate comparative benchmark(s) each manager is evaluated against and the focus of the asset class.\n\nAsset Class\n\nComparative Benchmark(s)\n\nFocus of Asset Class\n\nActive Duration Fixed Income (A)(B)\n\nBloomberg Barclays Aggregate\n\n- Maximize risk-adjusted performance while providing long\n   bond exposure managed according to the manager's\n   forecast on interest rates.\n- All invested assets must reach at or above Baa3 or BBB-\n   investment grade.\n- Limited five percent exposure to any single issuer, except the\n   U.S. Government or affiliates.\n\nLong Duration Fixed Income (A)(B)\n\nDuration blended Barclays Long Government/Credit & Barclays Universal\n\n- Maximize risk-adjusted performance.\n- At least 75 percent of invested assets must reach at or\n   above Baaa3 or BBB- investment grade.\n- Limited five percent exposure to any single issuer, except the\n   U.S. Government or affiliates.\n- May invest up to 10 percent of the market value in\n   convertible bonds as long as quality guidelines are met.\n- May invest up to 15 percent of the market value in private\n   placement, including 144A securities with or without\n   registration rights and allow for futures to be traded in the\n   portfolio.\n\nEquity Index (B)(C)\n\nStandard & Poor's 500 Index\n\n- Focus on replicating the performance of the S&P 500 Index.\n\nMid-Cap Equity (B)(C)\n\nSmall-Cap Equity (B)(C)\n\nRussell Midcap Index\nRussell Midcap Value Index\n\nRussell 2000 Index\nRussell 2000 Value Index\n\n- Focus on undervalued stocks expected to earn average\n   return and pay out higher than average dividends.\n- Invest in companies with market capitalizations lower than\n   average company on public exchanges:\n      - Price/earnings ratio at or near referenced\n      - Small dividend yield and return on equity at or near\n         referenced index; and\n      - Earnings per share growth rate at or near referenced\n         index.\n\nInternational Equity (D)\n\nMorgan Stanley Capital International ACWI ex-U.S.\n\n- Invest in non-dollar denominated equity securities.\n- Diversify the overall trust investments.\n\n(A)\nInvestment grades are by Moody's Investors Service, S&P Global Ratings or Fitch Ratings.\n\n(B)\nThe purchase of any of OGE Energy's equity, debt or other securities is prohibited.\n\n(C)\nNo more than five percent can be invested in any one stock at the time of purchase and no more than 10 percent after accounting for price appreciation. Options or financial futures may not be purchased unless prior approval from OGE Energy's Investment Committee is received. The purchase of securities on margin, securities lending, private placement purchases and venture capital purchases are prohibited. The aggregate positions in any company may not exceed one percent of the fair market value of its outstanding stock.\n\n(D)\nThe manager of this asset class is required to operate under certain restrictions including regional constraints, diversification requirements and percentage of U.S. securities. All securities are freely traded on a recognized stock exchange, and there are no over-the-counter derivatives. The following investment categories are excluded: options (other than traded currency options), commodities, futures (other than currency futures or currency hedging), short sales/margin purchases, private placements, unlisted securities and real estate (but not real estate shares).\n\n \n\n88\n\n \n\nPension Plan Investments\n\nThe following tables present the Pension Plan's investments that are measured at fair value on a recurring basis at December 31, 2025 and 2024. There were no Level 3 investments held by the Pension Plan at December 31, 2025 and 2024.\n\n(In millions)\n\nDecember 31, 2025\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nNet Asset Value (A)\n\n \n\nCommon stocks\n\n$\n\n38.0\n\n \n\n \n\n$\n\n38.0\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nU.S. Treasury notes and bonds (B)\n\n \n\n41.3\n\n \n\n \n\n \n\n41.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nMortgage- and asset-backed securities\n\n \n\n22.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n22.3\n\n \n\n \n\n \n\n—\n\n \n\nCorporate fixed income and other securities\n\n \n\n51.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n51.9\n\n \n\n \n\n \n\n—\n\n \n\nCommingled fund (C)\n\n \n\n18.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n18.7\n\n \n\nForeign government bonds\n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nU.S. municipal bonds\n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nMoney market fund\n\n \n\n10.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n10.6\n\n \n\nMutual funds\n\n \n\n83.0\n\n \n\n \n\n \n\n83.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nU.S. Treasury futures:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash collateral\n\n \n\n0.9\n\n \n\n \n\n \n\n0.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nForward contracts:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReceivable (foreign currency)\n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nTotal Pension Plan investments\n\n \n\n267.0\n\n \n\n \n\n$\n\n163.2\n\n \n\n \n\n$\n\n74.5\n\n \n\n \n\n$\n\n29.3\n\n \n\nInterest and dividends receivable\n\n \n\n1.4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReceivable from broker for securities sold\n\n \n\n9.0\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayable to broker for securities purchased\n\n \n\n(15.2\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OGE Energy Pension Plan assets\n\n$\n\n262.2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPension Plan investments attributable to affiliates\n\n \n\n(36.0\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OG&E Pension Plan assets\n\n$\n\n226.2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(In millions)\n\nDecember 31, 2024\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nNet Asset Value (A)\n\n \n\nCommon stocks\n\n$\n\n55.7\n\n \n\n \n\n$\n\n55.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\nU.S. Treasury notes and bonds (B)\n\n \n\n49.3\n\n \n\n \n\n \n\n49.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nMortgage- and asset-backed securities\n\n \n\n23.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n23.9\n\n \n\n \n\n \n\n—\n\n \n\nCorporate fixed income and other securities\n\n \n\n50.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n50.3\n\n \n\n \n\n \n\n—\n\n \n\nCommingled fund (C)\n\n \n\n13.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13.4\n\n \n\nForeign government bonds\n\n \n\n0.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n—\n\n \n\nU.S. municipal bonds\n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nMoney market fund\n\n \n\n0.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.9\n\n \n\nMutual funds\n\n \n\n62.0\n\n \n\n \n\n \n\n62.0\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nPreferred stocks\n\n \n\n0.5\n\n \n\n \n\n \n\n0.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nU.S. Treasury futures:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash collateral\n\n \n\n0.1\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nForward contracts:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReceivable (foreign currency)\n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n0.1\n\n \n\n \n\n \n\n—\n\n \n\nTotal Pension Plan investments\n\n \n\n256.6\n\n \n\n \n\n$\n\n167.6\n\n \n\n \n\n$\n\n74.7\n\n \n\n \n\n$\n\n14.3\n\n \n\nInterest and dividends receivable\n\n \n\n1.5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nReceivable from broker for securities sold\n\n \n\n9.1\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayable to broker for securities purchased\n\n \n\n(20.3\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OGE Energy Pension Plan assets\n\n$\n\n246.9\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPension Plan investments attributable to affiliates\n\n \n\n(35.3\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OG&E Pension Plan assets\n\n$\n\n211.6\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(A)\nGAAP allows the measurement of certain investments that do not have a readily determinable fair value at the net asset value. These investments do not consider the observability of inputs; therefore, they are not included within the fair value hierarchy.\n\n89\n\n \n\n(B)\nThis category represents U.S. Treasury notes and bonds with a Moody's Investors Service rating of Aaa and Government Agency Bonds with a Moody's Investors Service rating of A1 or higher.\n\n(C)\nThis category represents units of participation in a commingled fund that primarily invested in stocks of international companies and emerging markets.\n\nAs defined in the fair value hierarchy, Level 1 inputs are quoted prices in active markets for identical unrestricted assets or liabilities that are accessible by the Pension Plan at the measurement date. Level 2 inputs are inputs other than quoted prices in active markets included within Level 1 that are either directly or indirectly observable at the reporting date for the asset or liability for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are prices or valuation techniques for the asset or liability that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Unobservable inputs reflect the Plan's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).\n\n \n\nExpected Benefit Payments\n\n \n\nThe following table presents the benefit payments the Registrants expect to pay related to the Pension Plan and Restoration of Retirement Income Plan. These expected benefits are based on the same assumptions used to measure the Registrants' benefit obligation at the end of the year and include benefits attributable to estimated future employee service.\n\n(In millions)\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n2026\n\n \n\n$\n\n59.1\n\n \n\n \n\n$\n\n52.3\n\n \n\n2027\n\n \n\n$\n\n42.2\n\n \n\n \n\n$\n\n30.1\n\n \n\n2028\n\n \n\n$\n\n33.4\n\n \n\n \n\n$\n\n29.4\n\n \n\n2029\n\n \n\n$\n\n30.6\n\n \n\n \n\n$\n\n27.5\n\n \n\n2030\n\n \n\n$\n\n29.3\n\n \n\n \n\n$\n\n25.4\n\n \n\n2031-2035\n\n \n\n$\n\n120.9\n\n \n\n \n\n$\n\n105.9\n\n \n\n \n\nPostretirement Benefit Plans\n\n \n\nIn addition to providing pension benefits, OGE Energy provides certain medical and life insurance benefits for eligible retired members. Regular, full-time, active employees hired prior to February 1, 2000 whose age and years of credited service total or exceed 80 or have attained at least age 55 with 10 or more years of service at the time of retirement are entitled to postretirement medical benefits, while employees hired on or after February 1, 2000 are not entitled to postretirement medical benefits. Eligible retirees must contribute such amount as OGE Energy specifies from time to time toward the cost of coverage for postretirement benefits. The benefits are subject to deductibles, co-payment provisions and other limitations. OG&E charges postretirement benefit costs to expense and includes an annual amount as a component of the cost-of-service in future ratemaking proceedings.\n\n \n\nOGE Energy's contribution to the medical costs for pre-65 aged eligible retirees are fixed at the 2011 level, and OGE Energy covers future annual medical inflationary cost increases up to five percent. Increases in excess of five percent annually are covered by the pre-65 aged retiree in the form of premium increases. OGE Energy provides Medicare-eligible retirees and their Medicare-eligible spouses an annual fixed contribution to an OGE Energy-sponsored health reimbursement arrangement. Medicare-eligible retirees are able to purchase individual insurance policies supplemental to Medicare through a third-party administrator and use their health reimbursement arrangement funds for reimbursement of medical premiums and other eligible medical expenses.\n\n \n\n90\n\n \n\nPostretirement Plans Investments\n\nThe following tables present the postretirement benefit plans' investments that are measured at fair value on a recurring basis at December 31, 2025 and 2024. There were no Level 2 investments held by the postretirement benefit plans at December 31, 2025 and 2024.\n\n(In millions)\n\n \n\nDecember 31, 2025\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 3\n\n \n\nGroup retiree medical insurance contract\n\n \n\n$\n\n8.7\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n8.7\n\n \n\nMutual funds\n\n \n\n \n\n19.7\n\n \n\n \n\n \n\n19.7\n\n \n\n \n\n \n\n—\n\n \n\nTotal OGE Energy plan investments\n\n \n\n$\n\n28.4\n\n \n\n \n\n$\n\n19.7\n\n \n\n \n\n$\n\n8.7\n\n \n\nPlan investments attributable to affiliates\n\n \n\n \n\n(2.2\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OG&E plan investments\n\n \n\n$\n\n26.2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(In millions)\n\n \n\nDecember 31, 2024\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 3\n\n \n\nGroup retiree medical insurance contract\n\n \n\n$\n\n13.6\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n13.6\n\n \n\nMutual funds\n\n \n\n \n\n16.4\n\n \n\n \n\n \n\n16.4\n\n \n\n \n\n \n\n—\n\n \n\nTotal OGE Energy plan investments\n\n \n\n$\n\n30.0\n\n \n\n \n\n$\n\n16.4\n\n \n\n \n\n$\n\n13.6\n\n \n\nPlan investments attributable to affiliates\n\n \n\n \n\n(2.8\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal OG&E plan investments\n\n \n\n$\n\n27.2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nThe group retiree medical insurance contract invests in a pool of common stocks, bonds and money market accounts, of which a significant portion is comprised of mortgage-backed securities. The unobservable input included in the valuation of the contract includes the approach for determining the allocation of the postretirement benefit plans' pro-rata share of the total assets in the contract.\n\nThe following table presents a reconciliation of the postretirement benefit plans' investments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3).\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\nGroup retiree medical insurance contract:\n\n \n\n \n\n \n\nBeginning balance\n\n \n\n$\n\n13.6\n\n \n\nClaims paid\n\n \n\n \n\n(5.4\n\n)\n\nInterest income\n\n \n\n \n\n0.3\n\n \n\nRealized gains\n\n \n\n \n\n0.1\n\n \n\nInvestment fees\n\n \n\n \n\n(0.1\n\n)\n\nNet unrealized gains related to instruments held at the reporting date\n\n \n\n \n\n0.2\n\n \n\nEnding balance\n\n \n\n$\n\n8.7\n\n \n\n \n\nMedicare Prescription Drug, Improvement and Modernization Act of 2003\n\nThe Medicare Prescription Drug, Improvement and Modernization Act of 2003 expanded coverage for prescription drugs. The following table presents the gross benefit payments the Registrants expect to pay related to the postretirement benefit plans, including prescription drug benefits.\n\n(In millions)\n\n \n\nOGE Energy\n\n \n\n \n\nOG&E\n\n \n\n2026\n\n \n\n$\n\n12.1\n\n \n\n \n\n$\n\n9.1\n\n \n\n2027\n\n \n\n$\n\n9.6\n\n \n\n \n\n$\n\n7.2\n\n \n\n2028\n\n \n\n$\n\n8.9\n\n \n\n \n\n$\n\n6.8\n\n \n\n2029\n\n \n\n$\n\n8.3\n\n \n\n \n\n$\n\n6.5\n\n \n\n2030\n\n \n\n$\n\n7.9\n\n \n\n \n\n$\n\n6.1\n\n \n\n2031-2035\n\n \n\n$\n\n33.3\n\n \n\n \n\n$\n\n26.0\n\n \n\n \n\n \n\n \n\n91\n\n \n\n401(k) Plan\n\n \n\nOGE Energy provides a 401(k) Plan, and each regular full-time employee of OGE Energy or a participating affiliate is eligible to participate in the 401(k) Plan immediately upon hire. All other employees of OGE Energy or a participating affiliate are eligible to become participants in the 401(k) Plan after completing one year of service as defined in the 401(k) Plan. Participants may contribute each pay period any whole percentage between two percent and 75 percent of their compensation, as defined in the 401(k) Plan, for that pay period. Participants who have reached age 50 before the close of a year are allowed to make additional contributions referred to as \"Catch-Up Contributions,\" subject to certain limitations of the Code. Participants may designate, at their discretion, all or any portion of their contributions as: (i) a before-tax contribution under Section 401(k) of the Code subject to the limitations thereof, (ii) a contribution made on a non-Roth after-tax basis or (iii) a Roth contribution. The 401(k) Plan also includes an eligible automatic contribution arrangement and provides for a qualified default investment alternative consistent with the U.S. Department of Labor regulations. Participants may elect, in accordance with the 401(k) Plan procedures, to have their future salary deferral rate to be automatically increased annually on a date and in an amount as specified by the participant in such election. For employees hired or rehired on or after December 1, 2009, OGE Energy contributes to the 401(k) Plan, on behalf of each participant, 200 percent of the participant's contributions up to five percent of compensation.\n\n \n\nNo OGE Energy contributions are made with respect to a participant's rollover contributions or with respect to a participant's contributions based on overtime payments, pay-in-lieu of overtime for exempt personnel, special lump-sum recognition awards and lump-sum merit awards included in compensation for determining the amount of participant contributions. Once made, OGE Energy's contribution may be directed to any available investment option in the 401(k) Plan. OGE Energy match contributions vest over a three-year period. After two years of service, participants become 20 percent vested in their OGE Energy contribution account and become fully vested on completing three years of service. In addition, participants fully vest when they are eligible for normal or early retirement under the Pension Plan requirements, in the event of their termination due to death or permanent disability or upon attainment of age 65 while employed by OGE Energy or its affiliates. OGE Energy contributed $21.9 million, $21.4 million and $19.6 million in 2025, 2024 and 2023, respectively, to the 401(k) Plan, of which $21.9 million, $21.4 million and $16.0 million, respectively, related to OG&E.\n\nDeferred Compensation Plan\n\nOGE Energy provides a nonqualified deferred compensation plan which is intended to be an unfunded plan. The plan's primary purpose is to provide a tax-deferred capital accumulation vehicle for a select group of management, highly compensated employees and non-employee members of OGE Energy's Board of Directors and to supplement such employees' 401(k) Plan contributions as well as offering this plan to be competitive in the marketplace.\n\nEligible employees who enroll in the plan have the following deferral options: (i) eligible employees may elect to defer up to a maximum of 70 percent of base salary and 100 percent of annual bonus awards or (ii) eligible employees may elect a deferral percentage of base salary and bonus awards based on the deferral percentage elected for a year under the 401(k) Plan with such deferrals to start when maximum deferrals to the qualified 401(k) Plan have been made because of limitations in that plan. Eligible directors who enroll in the plan may elect to defer up to a maximum of 100 percent of directors' meeting fees and annual retainers. OGE Energy matches employee (but not non-employee director) deferrals to make up for any match lost in the 401(k) Plan because of deferrals to the deferred compensation plan and to allow for a match that would have been made under the 401(k) Plan on that portion of either the first six percent of total compensation or the first five percent of total compensation, depending on prior participant elections, deferred that exceeds the limits allowed in the 401(k) Plan. Matching credits vest based on years of service, with full vesting after three years or, if earlier, on retirement, disability, death, a change in control of OGE Energy or termination of the plan. Deferrals, plus any OGE Energy match, are credited to a recordkeeping account in the participant's name. Earnings on the deferrals are indexed to the assumed investment funds selected by the participant. In 2025, those investment options included an OGE Energy Common Stock fund, whose value was determined based on the stock price of OGE Energy's Common Stock. OGE Energy accounts for the contributions related to its executive officers in this plan as Accrued Benefit Obligations and accounts for the contributions related to OGE Energy's directors in this plan as Other Deferred Credits and Other Liabilities in the balance sheets. The investment associated with these contributions is accounted for as Other Property and Investments in the balance sheets. The appreciation of these investments is accounted for as Other Income, and the increase in the liability under the plan is accounted for as Other Expense in the statements of income.\n\n \n\n92\n\n \n\nSupplemental Executive Retirement Plan\n\n \n\nOGE Energy provides a supplemental executive retirement plan in order to attract and retain lateral hires or other executives designated by the Compensation Committee of OGE Energy's Board of Directors who may not otherwise qualify for a sufficient level of benefits under OGE Energy's Pension Plan and Restoration of Retirement Income Plan. The supplemental executive retirement plan is intended to be an unfunded plan and not subject to the benefit limitations of the Code. For the actuarial equivalence calculations, the supplemental executive retirement plan provides that (i) mortality rates shall be based on the unisex mortality table issued under Internal Revenue Service Notice 2018-02 for purposes of determining the minimum present value under Code Section 417(e)(3) for distributions with annuity starting dates that occur during stability periods beginning in the 2019 calendar year and (ii) the interest rate shall be five percent.\n\n \n\n12. Report of Business Segments\n\n \n\nOGE Energy reports its operations primarily through a single segment, captioned \"electric company,\" which is engaged in the generation, transmission, distribution and sale of electric energy. The \"other operations\" caption primarily includes the operations of the holding company and other energy-related investments. Intersegment revenues are recorded at prices comparable to those of unaffiliated customers and are affected by regulatory considerations. In accordance with ASC Topic 280, “Segment Reporting,” the Registrants have identified their Chief Executive Officer as the “chief operating decision maker.” The Chief Executive Officer uses net income as the measure of reportable segment profit or loss to make operating decisions, allocate resources, and assess performance. The following tables, which include significant segment expenses, present the results of OGE Energy's business segments for the years ended December 31, 2025, 2024 and 2023.\n\n2025\n\n \n\nElectric Company\n\n \n\n \n\nOther\nOperations\n\n \n\n \n\nEliminations\n\n \n\n \n\nTotal\n\n \n\n(In millions)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating revenues\n\n \n\n$\n\n3,260.1\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n3,260.1\n\n \n\nFuel, purchased power and direct transmission expense\n\n \n\n \n\n1,259.9\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,259.9\n\n \n\nOther operation and maintenance\n\n \n\n \n\n531.0\n\n \n\n \n\n \n\n0.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n531.6\n\n \n\nDepreciation and amortization\n\n \n\n \n\n559.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n559.8\n\n \n\nTaxes other than income\n\n \n\n \n\n109.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n109.4\n\n \n\nOperating income (loss)\n\n \n\n \n\n800.0\n\n \n\n \n\n \n\n(0.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n799.4\n\n \n\nOther income\n\n \n\n \n\n30.4\n\n \n\n \n\n \n\n7.4\n\n \n\n \n\n \n\n(6.4\n\n)\n\n \n\n \n\n31.4\n\n \n\nInterest expense\n\n \n\n \n\n225.5\n\n \n\n \n\n \n\n51.2\n\n \n\n \n\n \n\n(6.4\n\n)\n\n \n\n \n\n270.3\n\n \n\nIncome tax expense (benefit)\n\n \n\n \n\n105.1\n\n \n\n \n\n \n\n(15.3\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n89.8\n\n \n\nNet income (loss)\n\n \n\n$\n\n499.8\n\n \n\n \n\n$\n\n(29.1\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n470.7\n\n \n\nTotal assets\n\n \n\n$\n\n14,277.5\n\n \n\n \n\n$\n\n134.1\n\n \n\n \n\n$\n\n(41.1\n\n)\n\n \n\n$\n\n14,370.5\n\n \n\nCapital expenditures\n\n \n\n$\n\n1,054.4\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,054.4\n\n \n\n \n\n2024\n\n \n\nElectric Company\n\n \n\n \n\nOther\nOperations\n\n \n\n \n\nEliminations\n\n \n\n \n\nTotal\n\n \n\n(In millions)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating revenues\n\n \n\n$\n\n2,985.3\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2,985.3\n\n \n\nFuel, purchased power and direct transmission expense\n\n \n\n \n\n1,076.4\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n1,076.4\n\n \n\nOther operation and maintenance\n\n \n\n \n\n514.1\n\n \n\n \n\n \n\n0.3\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n514.4\n\n \n\nDepreciation and amortization\n\n \n\n \n\n539.5\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n539.5\n\n \n\nTaxes other than income\n\n \n\n \n\n109.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n109.7\n\n \n\nOperating income (loss)\n\n \n\n \n\n745.6\n\n \n\n \n\n \n\n(0.3\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n745.3\n\n \n\nOther income\n\n \n\n \n\n31.9\n\n \n\n \n\n \n\n2.4\n\n \n\n \n\n \n\n(4.5\n\n)\n\n \n\n \n\n29.8\n\n \n\nInterest expense\n\n \n\n \n\n214.4\n\n \n\n \n\n \n\n44.6\n\n \n\n \n\n \n\n(4.5\n\n)\n\n \n\n \n\n254.5\n\n \n\nIncome tax expense (benefit)\n\n \n\n \n\n93.2\n\n \n\n \n\n \n\n(14.1\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n79.1\n\n \n\nNet income (loss)\n\n \n\n$\n\n469.9\n\n \n\n \n\n$\n\n(28.4\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n441.5\n\n \n\nTotal assets\n\n \n\n$\n\n13,581.3\n\n \n\n \n\n$\n\n402.9\n\n \n\n \n\n$\n\n(268.2\n\n)\n\n \n\n$\n\n13,716.0\n\n \n\nCapital expenditures\n\n \n\n$\n\n1,090.9\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,090.9\n\n \n\n \n\n93\n\n \n\n2023\n\n \n\nElectric Company\n\n \n\n \n\nOther\nOperations\n\n \n\n \n\nEliminations\n\n \n\n \n\nTotal\n\n \n\n(In millions)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating revenues\n\n \n\n$\n\n2,674.3\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n2,674.3\n\n \n\nFuel, purchased power and direct transmission expense\n\n \n\n \n\n911.7\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n911.7\n\n \n\nOther operation and maintenance\n\n \n\n \n\n505.0\n\n \n\n \n\n \n\n(2.4\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n502.6\n\n \n\nDepreciation and amortization\n\n \n\n \n\n506.6\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n506.6\n\n \n\nTaxes other than income\n\n \n\n \n\n99.4\n\n \n\n \n\n \n\n3.8\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n103.2\n\n \n\nOperating income (loss)\n\n \n\n \n\n651.6\n\n \n\n \n\n \n\n(1.4\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n650.2\n\n \n\nOther income\n\n \n\n \n\n43.5\n\n \n\n \n\n \n\n8.1\n\n \n\n \n\n \n\n(7.4\n\n)\n\n \n\n \n\n44.2\n\n \n\nInterest expense\n\n \n\n \n\n199.9\n\n \n\n \n\n \n\n28.9\n\n \n\n \n\n \n\n(7.4\n\n)\n\n \n\n \n\n221.4\n\n \n\nIncome tax expense (benefit)\n\n \n\n \n\n68.8\n\n \n\n \n\n \n\n(12.6\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n56.2\n\n \n\nNet income (loss)\n\n \n\n$\n\n426.4\n\n \n\n \n\n$\n\n(9.6\n\n)\n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n416.8\n\n \n\nTotal assets\n\n \n\n$\n\n12,642.6\n\n \n\n \n\n$\n\n301.1\n\n \n\n \n\n$\n\n(153.0\n\n)\n\n \n\n$\n\n12,790.7\n\n \n\nCapital expenditures\n\n \n\n$\n\n1,178.2\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n1,178.2\n\n \n\n \n\n13. Commitments and Contingencies\n\n \n\nPurchase Obligations and Commitments\n\n \n\nThe following table presents the Registrants' future purchase obligations and commitments estimated for the next five years.\n\n(In millions)\n\n \n\n2026\n\n \n\n \n\n2027\n\n \n\n \n\n2028\n\n \n\n \n\n2029\n\n \n\n \n\n2030\n\n \n\n \n\nTotal\n\n \n\nPurchase obligations and commitments:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMinimum purchase commitments\n\n \n\n$\n\n110.4\n\n \n\n \n\n$\n\n72.5\n\n \n\n \n\n$\n\n67.1\n\n \n\n \n\n$\n\n63.8\n\n \n\n \n\n$\n\n63.9\n\n \n\n \n\n$\n\n377.7\n\n \n\nWind purchase commitments\n\n \n\n \n\n57.3\n\n \n\n \n\n \n\n57.8\n\n \n\n \n\n \n\n58.4\n\n \n\n \n\n \n\n58.6\n\n \n\n \n\n \n\n57.8\n\n \n\n \n\n \n\n289.9\n\n \n\nCapacity commitments\n\n \n\n \n\n105.0\n\n \n\n \n\n \n\n41.5\n\n \n\n \n\n \n\n31.3\n\n \n\n \n\n \n\n26.9\n\n \n\n \n\n \n\n27.8\n\n \n\n \n\n \n\n232.5\n\n \n\nLong-term service agreement commitments\n\n \n\n \n\n50.1\n\n \n\n \n\n \n\n19.0\n\n \n\n \n\n \n\n8.9\n\n \n\n \n\n \n\n4.5\n\n \n\n \n\n \n\n5.6\n\n \n\n \n\n \n\n88.1\n\n \n\nGeneration capacity construction commitments\n\n \n\n \n\n98.3\n\n \n\n \n\n \n\n481.5\n\n \n\n \n\n \n\n98.0\n\n \n\n \n\n \n\n17.1\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n694.9\n\n \n\nTotal purchase obligations and commitments\n\n \n\n$\n\n421.1\n\n \n\n \n\n$\n\n672.3\n\n \n\n \n\n$\n\n263.7\n\n \n\n \n\n$\n\n170.9\n\n \n\n \n\n$\n\n155.1\n\n \n\n \n\n$\n\n1,683.1\n\n \n\n \n\nOG&E Minimum Purchase Commitments\n\n \n\nOG&E has coal contracts for purchases through December 31, 2027. OG&E may also purchase coal through spot purchases on an as-needed basis. As a participant in the SPP Integrated Marketplace, OG&E purchases its natural gas supply through short-term agreements. OG&E relies on a combination of natural gas base load agreements and call agreements, whereby OG&E has the right but not the obligation to purchase a defined quantity of natural gas, combined with day and intra-day purchases to meet the demands of the SPP Integrated Marketplace.\n\n \n\nOG&E has natural gas transportation service contracts with Energy Transfer, ONEOK, Inc. and Southern Star, which grant these companies the responsibility of delivering natural gas to OG&E's generating facilities. The contracts with Energy Transfer end in December 2034, December 2038 and September 2045; the contracts with ONEOK, Inc. end in August 2037 and December 2045; and the contract with Southern Star ends in December 2034. OG&E also has natural gas storage agreements with ONEOK, Inc. for firm storage which ends in December 2045, and the Energy Transfer agreement for park and loan service ends in April 2027.\n\n \n\nOG&E Estimated Wind Power Purchase Commitments\n\n \n\nThe following table presents OG&E's wind purchased power contracts.\n\nCompany\n\nLocation\n\nOriginal Term of\nContract\n\nExpiration of\nContract\n\nMWs\n\n \n\nCPV Keenan\n\nWoodward County, OK\n\n20 years\n\n2030\n\n \n\n152.0\n\n \n\nEdison Mission Energy\n\nDewey County, OK\n\n20 years\n\n2031\n\n \n\n130.0\n\n \n\nNextEra Energy\n\nBlackwell, OK\n\n20 years\n\n2032\n\n \n\n60.0\n\n \n\n \n\n94\n\n \n\n \n\nThe following table presents a summary of OG&E's wind power purchases for the years ended December 31, 2025, 2024 and 2023.\n\nYear Ended December 31 (In millions)\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCPV Keenan\n\n \n\n$\n\n28.3\n\n \n\n \n\n$\n\n25.4\n\n \n\n \n\n$\n\n23.0\n\n \n\nEdison Mission Energy\n\n \n\n \n\n21.9\n\n \n\n \n\n \n\n23.3\n\n \n\n \n\n \n\n20.5\n\n \n\nNextEra Energy\n\n \n\n \n\n4.6\n\n \n\n \n\n \n\n5.6\n\n \n\n \n\n \n\n5.3\n\n \n\nTotal wind power purchased\n\n \n\n$\n\n54.8\n\n \n\n \n\n$\n\n54.3\n\n \n\n \n\n$\n\n48.8\n\n \n\n \n\nOG&E Capacity Commitments\n\n \n\nThe SPP requires its members, including OG&E, to maintain a generation planning reserve margin. Due to near-term generation requirements, OG&E entered into short-term power purchase agreements to meet its incremental capacity needs in each of the years through 2030 to address the planning reserve margin requirements.\n\n \n\nOG&E Long-Term Service Agreement Commitments\n\n \n\nOG&E has a long-term parts and service maintenance contract for the upkeep of the McClain Plant that is expected to run for the earlier of 128,000 factored-fired hours or 4,800 factored-fired starts. Based on historical usage and current expectations for future usage, this contract is expected to run until 2035. The contract requires payments based on both a fixed and variable cost component, depending on how much the McClain Plant is used.\n\n \n\nOG&E has a long-term parts and service maintenance contract for the upkeep of the Redbud Plant for a maximum of the earlier of 144,000 factored-fired hours or 4,500 factored-fired starts. Based on historical usage and current expectations for future usage, this contract is expected to run until 2032. The contract requires payments based on both a fixed and variable cost component, depending on how much the Redbud Plant is used.\n\n \n\nOG&E has a long-term parts and service maintenance contract for the upkeep of the Horseshoe Lake Plant Units 11 and 12 for a maximum of the earlier of 64,000 factored-fired hours or 2,500 factored-fired starts for each unit. Based on historical usage and current expectations for future usage, this contract is expected to run until 2044. The contract requires payments based on both a fixed and variable cost component, depending on how much the Horseshoe Lake Plant is used.\n\n \n\nOG&E Generation Capacity Construction Commitments\n\n \n\nOG&E has generation capacity construction projects at its existing Horseshoe Lake generating facility and Tinker Air Force Base. At Horseshoe Lake, OG&E is installing four combustion turbines with a total capacity of 896 MWs, of which 448 MWs (Units 11 and 12) is expected to be placed into service by late 2026 and the remaining 448 MWs (Units 13 and 14) is expected to be placed into service during 2029. At Tinker Air Force Base, OG&E is installing two combustion turbines with a combined capacity of 96 MWs which are expected to be placed into service in early 2026. OG&E also has a commitment related to the Frontier Energy Storage Project, which involves a purchase and sale agreement for a 300 MW battery storage facility in Oklahoma.\n\n \n\nEnvironmental Laws and Regulations\n\n \n\nThe activities of OG&E are subject to numerous stringent and complex federal, state and local laws and regulations governing environmental protection. These laws and regulations can change, restrict or otherwise impact the Registrants' business activities in many ways, including the handling or disposal of waste material, planning for future construction activities to avoid or mitigate harm to threatened or endangered species and requiring the installation and operation of emissions or pollution control equipment. Failure to comply with these laws and regulations could result in the assessment of administrative, civil and criminal penalties, the imposition of remedial requirements and the issuance of orders enjoining future operations. Management believes that all of the Registrants' operations are in substantial compliance with current federal, state and local environmental standards.\n\n \n\nEnvironmental regulation can increase the cost of planning, design, initial installation and operation of OG&E's facilities. Management continues to evaluate its compliance with existing and proposed environmental legislation and regulations and implement appropriate environmental programs in a competitive market.\n\n \n\n95\n\n \n\nOther\n\n \n\nIn the normal course of business, the Registrants are confronted with issues or events that may result in a contingent liability. These generally relate to lawsuits or claims made by third parties, including governmental agencies. When appropriate, management consults with legal counsel and other experts to assess the claim. If, in management's opinion, the Registrants have incurred a probable loss as set forth by GAAP, an estimate is made of the loss, and the appropriate accounting entries are reflected in the financial statements. If the assessment indicates that a potential loss is not probable but reasonably possible, the nature of the contingent matter, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. At the present time, based on currently available information, except as discussed below, the Registrants believe that any reasonably possible losses in excess of accrued amounts arising out of pending or threatened lawsuits or claims would not be quantitatively material to their financial statements and would not have a material adverse effect on their financial position, results of operations or cash flows.\n\n \n\nIn July 2023, OG&E was named, along with its contractor, as a defendant in a lawsuit filed by an apartment owner and its insurance companies seeking in excess of $60.0 million in damages related to a fire at an apartment building under construction in Oklahoma City. Several additional defendants have also been named. OG&E disputes the claims in the lawsuit and intends to vigorously defend this action. If OG&E is ultimately deemed liable for damages in connection with this incident, OG&E believes its existing insurance policies will cover its costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have. Due to the uncertain and developing nature of this litigation, the outcome cannot be predicted, and OG&E is unable to provide a range of possible loss in this matter.\n\n \n\n14. Rate Matters and Regulation\n\n \n\nRegulation and Rates\n\n \n\nOG&E's retail electric tariffs are regulated by the OCC in Oklahoma and by the APSC in Arkansas. The issuance of certain securities by OG&E is also regulated by the OCC and the APSC. OG&E's transmission activities, short-term borrowing authorization and accounting practices are subject to the jurisdiction of the FERC. The Secretary of the U.S. Department of Energy has jurisdiction over some of OG&E's facilities and operations. In 2025, 88 percent of OG&E's electric revenue was subject to the jurisdiction of the OCC, seven percent to the APSC and five percent to the FERC.\n\n \n\nThe OCC and the APSC require that, among other things, (i) OGE Energy permits the OCC and the APSC access to the books and records of OGE Energy and its affiliates relating to transactions with OG&E; (ii) OGE Energy employ accounting and other procedures and controls to protect against subsidization of non-utility activities by OG&E's customers; and (iii) OGE Energy refrain from pledging OG&E assets or income for affiliate transactions. In addition, the FERC has access to the books and records of OGE Energy and its affiliates as the FERC deems relevant to costs incurred by OG&E or necessary or appropriate for the protection of utility customers with respect to the FERC jurisdictional rates.\n\n \n\nCompleted Regulatory Matters\n\n \n\nIntegrated Resource Plans\n\n \n\nIn 2025, OG&E issued its 2025 IRP to the OCC and APSC. The 2025 IRP was intended to address updated planning assumptions from OG&E’s 2024 IRP and present OG&E’s current capacity needs in light of the SPP’s planning reserve margin requirements for both summer and winter seasons as well as the SPP’s revised resource accreditation methodologies and updated load projections. The 2025 IRP identified capacity needs of 1,647 MWs by 2030. OG&E has executed contracts for over 1,000 MWs of generation capacity as a result of the 2024 request for proposal process, and regulatory approvals are currently being pursued, as further discussed below. OG&E has determined that an event of default occurred under the terms of the Black Kettle Energy Storage capacity purchase agreement and, as a result, the agreement has been terminated, effective February 3, 2026. OG&E intends to pursue all remedies available under the agreement and applicable law. Further, in January 2026, OG&E issued additional requests for proposals for resources to meet projected capacity needs while maintaining affordability and reliability for OG&E's customers. In February 2026, OG&E issued its Draft 2026 IRP to the OCC and APSC, which is intended to address OG&E's updated load forecast as well as updated SPP Resource Adequacy policies. The Draft 2026 IRP identifies capacity needs of 1,922 MWs by the 2031/2032 winter season and which is inclusive of approximately 800 MWs of capacity needs driven by changes in the SPP Resource Adequacy policies. The 2026 IRP is expected to be finalized in April 2026. OG&E intends to evaluate incremental capacity needs through future IRPs and to satisfy the needs through request for proposal processes, as needed.\n\n96\n\n \n\nSPP Proceedings\n\n \n\nResource Capacity Accreditation\n\n \n\nIn July 2022, the SPP Board of Directors approved a new unit accreditation methodology for conventional generation which requires submittal to and approval from the FERC prior to becoming effective. On March 2, 2023, the FERC rejected the SPP’s proposed capacity accreditation methodology for wind and solar generators. Following the FERC’s rejection, the SPP began an extensive review of both the methodology proposed for thermal resources which had not yet been submitted to the FERC, and the accreditation methodology for wind and solar generators. These methodologies were reviewed and approved by both the Regional State Committee and the SPP Board of Directors in late October 2023 and were submitted to the FERC for approval on February 23, 2024. On January 16, 2025, the FERC accepted the SPP's proposed tariff revisions for each accreditation methodology, which became effective October 1, 2025. This change has been implemented for the 2026 summer season. OG&E is evaluating the impact of the FERC's acceptance of these accreditation methods, which may contribute to OG&E’s capacity needs.\n\n \n\nFERC Proceedings\n\n \n\nMuskogee to Fort Smith Transmission Project\n\n \n\nOn May 15, 2025, OG&E filed an application with the FERC requesting CWIP incentive and abandoned plant incentive for a high voltage transmission line project running from OG&E's Muskogee substation in Oklahoma to its Fort Smith substation in Arkansas at a cost of approximately $250 million. On July 15, 2025, the FERC issued an order approving OG&E's request. On August 12, 2025, OG&E accepted the notice to construct from the SPP for a total of 106 miles of new, upgraded, and rebuilt high voltage transmission lines. OG&E has commenced design work on this project and expects the project to go into service in stages beginning in 2027 and be fully in service by 2029. OG&E would be allowed to seek recovery of prudently incurred costs through its formula rates should this project be abandoned for circumstances outside of OG&E's control.\n\n \n\nOCC Proceedings\n\n \n\n2023 Oklahoma General Rate Review\n\n \n\nIn December 2023, OG&E filed a general rate review in Oklahoma, and on June 12, 2024, OG&E entered into an uncontested settlement agreement, which was also executed by the OCC Public Utility Division Staff, the Oklahoma Attorney General, the OG&E Shareholders Association, Oklahoma Industrial Energy Consumers and other intervenors. This settlement agreement resulted in an annual revenue requirement increase of $126.7 million. OG&E had the right to implement interim rates subject to refund beginning July 1, 2024 (180 days after the filing of its application on December 29, 2023). On July 1, 2024, OG&E implemented an annual interim rate increase in line with the settlement agreement, subject to refund based on final approval by the OCC.\n\n \n\nOn November 26, 2024, the OCC issued an interim order approving the settlement agreement; as such, no refund of interim rates was deemed necessary. The key terms of the interim order were discussed in the [2024 Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001021635/000095017025022560/oge-20241231.htm). On March 27, 2025, the OCC issued a final order in this matter, which affirmed its previous order approving the settlement agreement and approved the ALJ report on the remaining one MW issue with one exception. The one exception stated that in its next general rate review, OG&E shall directly assign the costs of transmission radials to new competitive load customers that are added to the system after November 1, 2023. No other changes were made to rates implemented effective July 1, 2024 after the November 26, 2024 interim order. While the OCC’s final order has been appealed, the rates will remain in effect.\n\n \n\n2023 Oklahoma Fuel Prudency\n\n \n\nOn June 10, 2024, the Public Utility Division Staff filed their application initiating the prudence review of the 2023 fuel adjustment clause. The OCC issued an order on April 22, 2025 finding that OG&E's 2023 fuel costs and generation operations were prudent.\n\n \n\n2024 Oklahoma Fuel Prudency\n\n \n\nOn April 1, 2025, the Public Utility Division Staff filed their application initiating the prudence review of the 2024 fuel adjustment clause. On December 4, 2025, the OCC issued a final order finding OG&E's 2024 fuel costs, procurement decisions and operations were prudent.\n\n \n\n97\n\n \n\nOklahoma Retail Electric Supplier Certified Territory Act Causes\n\n \n\nAs previously disclosed, several rural electric cooperative electricity suppliers filed complaints with the OCC alleging that OG&E, because it was providing service to large loads in another supplier's territory, had violated the Oklahoma Retail Electric Supplier Certified Territory Act. OG&E believes it is lawfully serving customers under specific exemptions under this act that allow it to serve customers having a load of one MW or greater. There were five complaint cases initiated at the OCC, and the OCC issued decisions on each of them. The OCC ruled in favor of the electric cooperatives in three of those cases under statutory interpretation and ruled in favor of OG&E in two of those cases based on the defense of \"laches,\" effectively determining that the plaintiff did not raise their claims in a timely manner. All five of those cases were appealed to the Oklahoma Supreme Court, with two additional appeals consolidated with two of the original appeals, so that there were five cases in total.\n\n \n\nOn April 4, 2023, the Oklahoma Supreme Court issued its opinion which vacated the OCC's injunctions in one of the five cases and held that the Oklahoma Retail Electric Supplier Certified Territory Act does not limit the mechanism by which OG&E may provide service to large loads in another supplier's territory pursuant to the one MW exception.\n\n \n\nOn March 4, 2025, the Oklahoma Supreme Court issued a decision in a second case, finding that OG&E may not “extend service” from third-party transmission facilities and also effectively reversed its decision in the prior case addressing the same claims. This ruling was prospective in nature, which means OG&E may still serve the customers subject to the ruling, but in the future, OG&E may not extend services off of third-party transmission facilities. On September 23, 2025, this decision was reaffirmed in another case by the Oklahoma Supreme Court. OG&E can continue serving existing customers that would have otherwise been impacted by this decision.\n\n \n\nOn June 17, 2025, the Oklahoma Supreme Court ruled in favor of OG&E’s appeal in another of the cases, resolving the statutory interpretation of how a supplier calculates “connected load for initial full operation\" for purposes of the exemption under the act. This will allow OG&E to continue serving one MW customers outside its certified service territory based on the ‘nameplate rating,’ of all devices connected to a distribution system.\n\n \n\nOn October 28, 2025, the Oklahoma Supreme Court affirmed the OCC’s final order in the last remaining appeal regarding the Retail Electric Supplier Certified Territory Act. The Oklahoma Supreme Court held that, consistent with prior rulings, prospectively OG&E shall not be permitted to extend its service from third-party transmission lines but shall not be enjoined from serving existing customers.\n\n \n\n2025 Oklahoma Preapproval Case\n\n \n\nOn May 19, 2025, OG&E filed a preapproval case seeking OCC approval of three projects that will add capacity to the OG&E portfolio: (i) the Black Kettle Battery Storage capacity purchase agreement; (ii) the Kiamichi natural gas capacity purchase agreement; and (iii) construction of two additional combustion turbines at the Horseshoe Lake generating facility (Units 13 and 14). OG&E sought recovery through a rider, CWIP recovery for the Horseshoe Lake combustion turbines and a return on the Black Kettle Battery Storage and Kiamichi capacity purchase agreements. On October 6, 2025, OG&E reached a non-unanimous settlement agreement with OCC Public Utility Division Staff, the Oklahoma Attorney General and the Petroleum Alliance of Oklahoma. On November 13, 2025, the OCC issued a final order rejecting the settlement but approving the three projects with no CWIP recovery. The final order allows OG&E to recover the costs of the capacity purchase agreements with no return through the fuel clause adjustment rider and recover the revenue requirement for the Horseshoe Lake combustion turbines through a rider once the turbines are placed into service.\n\n98\n\n \n\n \n\nPending Regulatory Matters\n\n \n\nVarious proceedings pending before state or federal regulatory agencies are described below. Unless stated otherwise, the Registrants cannot predict when the regulatory agency will act or what action the regulatory agency will take. The Registrants' financial results are dependent in part on timely and constructive decisions by the regulatory agencies that set OG&E's rates.\n\n \n\nSPP Proceedings\n\n \n\nDemand Response Accreditation\n\n \n\nThe SPP has been evaluating demand response accreditation for several years, and a proposal has evolved that would treat demand resource accreditation on a performance-based approach. This approach requires demand response resources to be market registered and dispatched based on SPP market protocols or be reliability registered and dispatched during conservative operations or energy emergency alerts within the SPP. Alternatively, demand response programs that are built into a LRE’s forecast, known as load modifiers, can be used to reduce the load and resources needed to satisfy the entity’s planning reserve margin but would include an after-the-fact look at whether the LRE’s peak forecast was below the actuals in a given year. If under forecasted, a LRE would have to pay a deficiency payment for not providing enough resources to satisfy its planning reserve margin and actual peak load. At their February 2026 meetings, both the SPP Regional State Committee and the SPP Board of Directors adopted policies to include the 2027 implementation of a LRE’s load modifier cap and full implementation in 2028. These policies are subject to FERC review and approval prior to implementation.\n\n \n\nSeminole to Shreveport Transmission Line\n\n \n\nAt the end of 2025, the SPP Board of Directors adopted their 2025 Integrated Transmission Plan. This plan included a new 765kV transmission line running from Konawa, Oklahoma to Shreveport, Louisiana. OG&E will construct and own a significant portion of the line. The project is pending OG&E's receipt and acceptance of a notice to construct, which is expected later this year.\n\n \n\nAPSC Proceedings\n\n \n\nArkansas Prudence of Horseshoe Lake and Tinker Generation Facilities\n\n \n\nOn December 30, 2024, pursuant to orders in the generation construction notice filings, OG&E filed an application requesting a determination of prudence of action and initial contract costs for the generating units being constructed at Horseshoe Lake (Units 11 and 12) and Tinker Air Force Base. On May 19, 2025, intervenors, including the Attorney General, filed direct testimony and APSC staff recommended a finding of prudence of action and initial contract costs for both projects. The Attorney General recommended approval of the Horseshoe Lake project but raised concerns regarding certain elements of the Tinker Air Force Base project. On May 22, 2025, OG&E filed a supplemental application to serve as notice to the APSC of OG&E’s intent to recover the costs of these projects through a rider under the newly enacted Act 373. On June 16, 2025, OG&E filed rebuttal testimony to address concerns raised by the Attorney General in direct testimony. OG&E entered into a settlement agreement with APSC Staff on August 4, 2025 that agreed that the Horseshoe Lake and Tinker combustion turbines were prudent and that OG&E satisfied part of the eligibility criteria for recovery of these costs through a Strategic Investment Rider. The Arkansas Attorney General opposes the part of the settlement relating to eligibility for a Strategic Investment Rider. On August 29, 2025, the APSC issued an order seeking additional testimony that responds to several questions related to the eligibility of the Strategic Investment Rider for out of state projects. On September 12, 2025, OG&E and APSC Staff filed responsive supplemental testimony. OG&E is awaiting a final order from the APSC.\n\n \n\n2025 Arkansas Preapproval Case\n\n \n\nOn July 25, 2025, OG&E filed an application requesting several approvals from the APSC relating to three capacity projects arising from the 2024 request for proposals for generating capacity: (i) the Black Kettle Battery Storage capacity purchase agreement; (ii) the Kiamichi natural gas capacity purchase agreement; and (iii) construction of two additional combustion turbines at the Horseshoe Lake generating facility (Units 13 and 14). OG&E sought authority to begin construction of the Horseshoe Lake units, a prudency determination of those new Horseshoe Lake units, authorization to enter into the Black Kettle Battery Storage capacity purchase agreement and other findings needed under Arkansas law, including eligibility to recover costs of the new Horseshoe Lake units through a rider under the newly enacted Act 373. On November 25, 2025, OG&E and the APSC staff filed a settlement agreement\n\n99\n\n \n\napproving OG&E’s application with some additional reporting requirements and allowing an additional return on the Black Kettle Battery Storage capacity purchase agreement at the 20-year U.S. treasury rate. On December 1, 2025, the Attorney General filed testimony in opposition to the settlement. On January 23, 2026, the APSC issued an order denying the settlement agreement and denying preapproval of Horseshoe Lake Units 13 and 14 but approving the Black Kettle Battery Storage capacity purchase agreement. The APSC also found that OG&E did not need to seek approval of the Kiamichi natural gas capacity purchase agreement since the term is shorter than five years. In the order, the APSC stated OG&E could still seek a prudence determination and cost recovery of Horseshoe Lake Units 13 and 14 after they are placed into service. On February 13, 2026, OG&E filed additional evidence pursuant to Arkansas law and requested that the APSC consider the additional evidence in finding that Horseshoe Lake Units 13 and 14 are reasonable, necessary and in the public interest.\n\n \n\n2025 Arkansas Act 373 Tariff Filing\n\n \n\nOn December 29, 2025, OG&E filed an application for approval of an Act 373 tariff to recover return on CWIP and revenue requirement for Horseshoe Lake and Tinker generation facilities. Recovery under the Act 373 tariff is dependent on a finding of eligibility for the Horseshoe Lake Units 11 and 12 and Tinker generation facilities in the prudence case disclosed above. On January 30, 2026, the APSC Staff filed testimony suggesting minor changes to the proposed tariff, and on February 9, 2026, OG&E filed rebuttal testimony largely agreeing to APSC Staff’s suggested revisions. On February 17, 2026, OG&E and the APSC Staff entered into a settlement agreement that agreed to recommended changes to the proposed tariff.\n\n \n\nArkansas Frontier Energy Storage Project Preapproval Filing\n\n \n\nOn February 3, 2026, OG&E filed a preapproval case for the Frontier Energy Storage Project, which involves a purchase and sale agreement for a 300 MW battery storage facility in Oklahoma. The Frontier Energy Storage Project is the final project resulting from OG&E's 2024 request for proposals and subsequent negotiations. In this proceeding, OG&E seeks authorization to commence construction of the Frontier Energy Storage Project and to later acquire the facility pursuant to the purchase and sale agreement, a prudency determination for the project, and all other findings and approvals needed under Arkansas law.\n\n \n\nFERC Proceedings\n\n \n\nOrder for Sponsored Transmission Upgrades within SPP\n\n \n\nUnder Attachment Z2 of the SPP Open Access Transmission Tariff, costs of participant-funded, or \"sponsored,\" transmission upgrades may be recovered from other SPP customers who benefit from the upgrade. The FERC approved a waiver of a time limitation in the SPP tariff to allow the SPP in 2016 to bill for the 2008 through 2015 period due to information system limitations that had delayed that billing. The SPP then both billed users and credited sponsors, including OG&E, for Z2 charges during the period. OG&E refunded most of the net credits to customers through its various rate riders that include SPP activity, with the remaining amounts retained by OG&E.\n\n \n\nNet payers of Z2 credits contested the waiver, leading the FERC to reverse its decision, deny the waiver, and instruct the SPP to refund payments made for charges from 2008 to 2015. OG&E and other net creditors challenged this reversal. However, the FERC upheld its reversal, and in August 2021 and September 2024, the U.S. Court of Appeals upheld the FERC’s decision and denied relief to OG&E and the other creditors against SPP. All appellate options have now been exhausted.\n\n \n\nThe SPP has submitted a refund process to the FERC stating some issues need the FERC's clarification before refunds can proceed. OG&E and other parties have commented on the filings, and the matter remains pending before the FERC. The SPP has submitted a refund process to the FERC stating some issues need the FERC's clarification before refunds can proceed. OG&E and other parties have commented on the filings, and the matter remains pending before the FERC. The SPP has calculated that OG&E will need to refund approximately $14 million, net of amounts paid to other utilities for upgrades, plus interest. This would shift recovery of these upgrade credits to future periods. Of the $14 million, the Registrants would be impacted by $4 million in expense that initially benefited the Registrants in 2016, and OG&E customers would incur a net impact of $10 million in expense through rider mechanisms or the FERC formula rate. As of December 31, 2025, the Registrants have reserved $14 million plus estimated interest for a potential refund.\n\n \n\nSubsequent to the initiation of the disputes discussed above, the FERC approved an SPP proposal to eliminate Attachment Z2 revenue crediting and replace it with a different rate mechanism that would provide project sponsors, such as OG&E, the same level of recovery. This elimination of the Attachment Z2 revenue crediting would only impact OG&E and its recovery of any future upgrade\n\n100\n\n \n\ncosts that it may incur as a project sponsor after July 2020. All projects initiated prior to July 2020 remain eligible to receive revenue credits under Attachment Z2, which includes the $14 million related to the refunds discussed above.\n\n \n\nOCC Proceedings\n\n \n\nOklahoma CWIP Filing\n\nOn December 12, 2025, OG&E filed an application for CWIP treatment for Horseshoe Lake combustion turbines Units 13 and 14, as allowed by SB 998. A motion to dismiss the case was filed by the Oklahoma Industrial Energy Consumers, as well as the Public Utility Division Staff. OG&E filed a response as well as motions to move the case and all outstanding motions to be heard en banc. These motions were heard before the OCC on January 27, 2026.\n\n \n\nOklahoma Frontier Energy Storage Project Preapproval Filing\n\n \n\nOn December 19, 2025, OG&E filed a preapproval case for the Frontier Energy Storage Project, which involves a purchase and sale agreement for a 300 MW battery storage facility in Oklahoma. The Frontier Energy Storage Project is the final project resulting from OG&E's 2024 request for proposals and subsequent negotiations. On January 28, 2026, the Attorney General and Petroleum Alliance of Oklahoma filed a joint motion to dismiss the case based on an interpretation that a battery energy storage system in not an electric generation facility. On February 3, 2026, OG&E filed a response in opposition to the joint motion to dismiss, and a hearing on the motion was held on February 5, 2026.\n\n \n\n \n\n101\n\n \n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo the Stockholders and the Board of Directors of OGE Energy Corp.\n\n \n\nOpinion on the Financial Statements\n\n \n\nWe have audited the accompanying consolidated balance sheets and consolidated statements of capitalization of OGE Energy Corp. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the \"consolidated financial statements\"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.\n\n \n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 17, 2026, expressed an unqualified opinion thereon.\n\n \n\nBasis for Opinion\n\n \n\nThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n \n\nCritical Audit Matter\n\n \n\nThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\n102\n\n \n\n \n\nRegulatory Assets and Liabilities\n\nDescription of the Matter\n\nAs discussed in Note 1 to the consolidated financial statements, the Company conducts its electric utility operations through Oklahoma Gas & Electric Company (OG&E). OG&E is a regulated utility subject to accounting principles for rate-regulated activities. As such, certain incurred costs that would otherwise be charged to expense are 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 are deferred as regulatory liabilities, based on the expected refund to customers in future rates. OG&E records items 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.\n\n \n\n \n\n \n\nAuditing regulatory assets and liabilities is complex as it requires specialized knowledge of rate-regulated activities as to matters that could affect the recording or updating of regulatory assets and regulatory liabilities.\n\n \n\n \n\nHow We Addressed the Matter in Our Audit\n\nWe obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company's accounting for regulatory assets and liabilities, including, among others, controls over management's evaluation of regulatory orders for any new matters and controls over the evaluation of filings with regulatory bodies on existing regulatory assets and liabilities, including factors that may affect the timing or nature of recoverability of regulatory assets and sufficiency of regulatory liabilities.\n\n \n\n \n\n \n\nWe performed audit procedures that included, among others, reviewing evidence of correspondence with regulatory bodies to test that the Company appropriately evaluated information obtained from regulatory rulings. For example, we assessed the recoverability of regulatory assets and sufficiency of regulatory liabilities, considering information obtained from regulatory rulings. In addition, we tested that amortization of regulatory assets and liabilities corresponded to relevant regulatory rulings.\n\n \n\n/s/ Ernst & Young LLP\n\n \n\nWe have served as the Company's auditor since 2002.\n\n \n\nOklahoma City, Oklahoma\n\nFebruary 17, 2026\n\n103\n\n \n\nREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo the Stockholder and the Board of Directors of Oklahoma Gas and Electric Company\n\n \n\nOpinion on the Financial Statements\n\n \n\nWe have audited the accompanying balance sheets and statements of capitalization of Oklahoma Gas and Electric Company (the Company) as of December 31, 2025 and 2024, the related statements of income and comprehensive income, changes in stockholder's equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the \"financial statements\"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.\n\n \n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 17, 2026, expressed an unqualified opinion thereon.\n\n \n\nBasis for Opinion\n\n \n\nThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n \n\nCritical Audit Matter\n\n \n\nThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\n104\n\n \n\n \n\nRegulatory Assets and Liabilities\n\nDescription of the Matter\n\nAs discussed in Note 1 to the consolidated financial statements, the Company is a regulated utility subject to accounting principles for rate-regulated activities. As such, certain incurred costs that would otherwise be charged to expense are 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 are deferred as regulatory liabilities, based on the expected refund to customers in future rates. The Company records items 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.\n\n \n\n \n\n \n\nAuditing regulatory assets and liabilities is complex as it requires specialized knowledge of rate-regulated activities as to matters that could affect the recording or updating of regulatory assets and regulatory liabilities.\n\n \n\n \n\nHow We Addressed the Matter in Our Audit\n\nWe obtained an understanding, evaluated the design, and tested the operating effectiveness of internal controls over the Company's accounting for regulatory assets and liabilities, including, among others, controls over management's evaluation of regulatory orders for any new matters and controls over the evaluation of filings with regulatory bodies on existing regulatory assets and liabilities, including factors that may affect the timing or nature of recoverability of regulatory assets and sufficiency of regulatory liabilities.\n\n \n\n \n\n \n\nWe performed audit procedures that included, among others, reviewing evidence of correspondence with regulatory bodies to test that the Company appropriately evaluated information obtained from regulatory rulings. For example, we assessed the recoverability of regulatory assets and sufficiency of regulatory liabilities, considering information obtained from regulatory rulings. In addition, we tested that amortization of regulatory assets and liabilities corresponded to relevant regulatory rulings.\n\n \n\n/s/ Ernst & Young LLP\n\n \n\nWe have served as the Company's auditor since 2002.\n\n \n\nOklahoma City, Oklahoma\n\n \n\nFebruary 17, 2026\n\n105"}