EX-99.01 6 oge-ex99_01.htm EX-99.01 EX-99.01

 

Exhibit 99.01

 

Excerpts from Securitization Documentation Detailing OG&E Oklahoma Customer Information

 

OG&E is a regulated electric company that generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. OG&E is a corporation organized under the laws of the State of Oklahoma and is a wholly-owned subsidiary of OGE Energy. The Bonds do not constitute a debt, liability or other legal obligation of OG&E, OGE Energy or any of their Affiliates.

 

OG&E's rates are subject to regulation by the Oklahoma Corporation Commission (the "Commission"), the Arkansas Public Service Commission and the Federal Energy Regulatory Commission.

 

OG&E is the largest electric company in Oklahoma. OG&E's current service territory covers approximately 30,000 square miles in Oklahoma and western Arkansas and, as of December 31, 2022, supplies electric service to approximately 889,000 customers.

 

Customer Base and Energy Consumption

 

The following tables show the electricity usage billed to Customers, electric billed revenues and number of Customers for each revenue-reporting customer class for the five preceding years within Oklahoma. There can be no assurances that the retail electricity sales, retail electric revenues and number of retail Customers or the composition of any of the foregoing will remain at or near the levels reflected in the following tables.

 

Energy Usage (As Measured by MWh) by Customer Class and Percentage Composition

 

Customer Class

2018

 

2019

 

2020

 

2021

 

2022

 

Residential

 

8,960,549

 

 

35.27

%

 

8,962,631

 

 

34.80

%

 

8,694,846

 

 

35.40

%

 

8,908,131

 

 

35.41

%

 

9,494,144

 

 

35.00

%

Commercial

 

7,329,888

 

 

28.85

%

 

6,463,937

 

 

25.10

%

 

5,703,393

 

 

23.22

%

 

6,107,746

 

 

24.28

%

 

7,124,463

 

 

26.26

%

Industrial

 

2,797,445

 

 

11.01

%

 

3,201,976

 

 

12.43

%

 

3,214,920

 

 

13.09

%

 

3,176,032

 

 

12.62

%

 

3,199,623

 

 

11.80

%

Oilfield

 

3,352,333

 

 

13.19

%

 

4,240,978

 

 

16.46

%

 

4,238,387

 

 

17.25

%

 

4,210,079

 

 

16.73

%

 

4,411,711

 

 

16.26

%

Public Authorities and Street lights

 

2,968,299

 

 

11.68

%

 

2,888,089

 

 

11.21

%

 

2,712,452

 

 

11.04

%

 

2,756,596

 

 

10.96

%

 

2,896,775

 

 

10.68

%

Total

 

25,408,514

 

 

100.00

%

 

25,757,611

 

 

100.00

%

 

24,563,998

 

 

100.00

%

 

25,158,584

 

 

100.00

%

 

27,126,716

 

 

100.00

%

 

The Service Level of each Customer is determined by OG&E based on the nominal standard voltage of such Customer’s connection to the OG&E electric transmission and distribution system. Securitization Charge allocations are based on the actual daily kWh usage for each Service Level for the period of emergency during Winter Storm Uri, February 7, 2021 to February 21, 2021.

 

Energy Usage (As Measured by MWh) by Service Level and Percentage Composition

 

Service Level

2018

 

2019

 

2020

 

2021

 

2022

 

S/L 1

 

818,363

 

 

3.22

%

 

859,078

 

 

3.34

%

 

805,909

 

 

3.28

%

 

800,559

 

 

3.18

%

 

795,924

 

 

2.93

%

S/L 2

 

4,769,689

 

 

18.77

%

 

5,021,368

 

 

19.49

%

 

4,920,100

 

 

20.03

%

 

4,915,069

 

 

19.54

%

 

5,594,476

 

 

20.62

%

S/L 3

 

1,908,162

 

 

7.51

%

 

1,986,925

 

 

7.71

%

 

1,759,575

 

 

7.16

%

 

1,863,227

 

 

7.41

%

 

2,038,536

 

 

7.51

%

S/L 4

 

609,295

 

 

2.40

%

 

582,918

 

 

2.26

%

 

562,723

 

 

2.29

%

 

498,670

 

 

1.98

%

 

464,552

 

 

1.71

%

S/L 5

 

17,303,006

 

 

68.10

%

 

17,307,323

 

 

67.19

%

 

16,515,690

 

 

67.24

%

 

17,081,059

 

 

67.89

%

 

18,233,229

 

 

67.22

%

Total

 

25,408,515

 

 

100.00

%

 

25,757,612

 

 

100.00

%

 

24,563,997

 

 

100.00

%

 

25,158,584

 

 

100.00

%

 

27,126,716

 

 

100.00

%

 

 


 

 

Energy Usage (As Measured by MWh) by Customer Class and Percentage Composition

 

Customer Class

2018

 

2019

 

2020

 

2021

 

2022

 

S/L 1

 

818,363

 

 

3.22

%

 

859,078

 

 

3.34

%

 

805,909

 

 

3.28

%

 

800,559

 

 

3.18

%

 

795,924

 

 

2.93

%

Commercial

 

92,879

 

 

11.35

%

 

108,738

 

 

12.66

%

 

39,132

 

 

4.86

%

 

48,302

 

 

6.03

%

 

47,244

 

 

5.94

%

Industrial

 

85,436

 

 

10.44

%

 

112,421

 

 

13.09

%

 

122,756

 

 

15.23

%

 

120,517

 

 

15.05

%

 

98,430

 

 

12.37

%

Oilfield

 

170,114

 

 

20.79

%

 

261,461

 

 

30.44

%

 

292,773

 

 

36.33

%

 

280,499

 

 

35.04

%

 

283,025

 

 

35.56

%

Public Authorities and Street lights

 

469,935

 

 

57.42

%

 

376,458

 

 

43.82

%

 

351,249

 

 

43.58

%

 

351,242

 

 

43.87

%

 

367,224

 

 

46.14

%

S/L 2

 

4,769,689

 

 

18.77

%

 

5,021,368

 

 

19.49

%

 

4,920,100

 

 

20.03

%

 

4,915,069

 

 

19.54

%

 

5,594,476

 

 

20.62

%

Commercial

 

873,309

 

 

18.31

%

 

264,092

 

 

5.26

%

 

46,272

 

 

0.94

%

 

50,364

 

 

1.02

%

 

515,844

 

 

9.22

%

Industrial

 

1,393,165

 

 

29.21

%

 

1,675,201

 

 

33.36

%

 

1,718,950

 

 

34.94

%

 

1,760,302

 

 

35.81

%

 

1,788,810

 

 

31.97

%

Oilfield

 

2,014,960

 

 

42.25

%

 

2,564,943

 

 

51.08

%

 

2,621,638

 

 

53.28

%

 

2,613,095

 

 

53.16

%

 

2,752,161

 

 

49.19

%

Public Authorities and Street lights

 

488,255

 

 

10.24

%

 

517,132

 

 

10.30

%

 

533,239

 

 

10.84

%

 

491,308

 

 

10.00

%

 

537,660

 

 

9.61

%

S/L 3

 

1,908,162

 

 

7.51

%

 

1,986,925

 

 

7.71

%

 

1,759,575

 

 

7.16

%

 

1,863,227

 

 

7.41

%

 

2,038,536

 

 

7.51

%

Commercial

 

443,161

 

 

23.22

%

 

434,776

 

 

21.88

%

 

312,567

 

 

17.76

%

 

335,316

 

 

18.00

%

 

451,761

 

 

22.16

%

Industrial

 

433,335

 

 

22.71

%

 

437,330

 

 

22.01

%

 

417,591

 

 

23.73

%

 

426,243

 

 

22.88

%

 

421,649

 

 

20.68

%

Oilfield

 

761,652

 

 

39.92

%

 

844,784

 

 

42.52

%

 

782,412

 

 

44.47

%

 

819,374

 

 

43.98

%

 

865,288

 

 

42.45

%

Public Authorities and Street lights

 

270,013

 

 

14.15

%

 

270,035

 

 

13.59

%

 

247,005

 

 

14.04

%

 

282,295

 

 

15.15

%

 

299,837

 

 

14.71

%

S/L 4

 

609,295

 

 

2.40

%

 

582,918

 

 

2.26

%

 

562,723

 

 

2.29

%

 

498,670

 

 

1.98

%

 

464,552

 

 

1.71

%

Commercial

 

173,774

 

 

28.52

%

 

43,588

 

 

7.48

%

 

41,528

 

 

7.38

%

 

45,087

 

 

9.04

%

 

52,903

 

 

11.39

%

Industrial

 

164,265

 

 

26.96

%

 

179,339

 

 

30.77

%

 

185,481

 

 

32.96

%

 

121,126

 

 

24.29

%

 

92,307

 

 

19.87

%

Oilfield

 

95,401

 

 

15.66

%

 

191,907

 

 

32.92

%

 

180,374

 

 

32.05

%

 

173,126

 

 

34.72

%

 

172,921

 

 

37.22

%

Public Authorities and Street lights

 

175,856

 

 

28.86

%

 

168,083

 

 

28.83

%

 

155,341

 

 

27.61

%

 

159,331

 

 

31.95

%

 

146,421

 

 

31.52

%

S/L 5

 

17,303,006

 

 

68.10

%

 

17,307,323

 

 

67.19

%

 

16,515,690

 

 

67.24

%

 

17,081,059

 

 

67.89

%

 

18,233,229

 

 

67.22

%

Residential

 

8,960,549

 

 

51.79

%

 

8,962,632

 

 

51.79

%

 

8,694,845

 

 

52.65

%

 

8,908,131

 

 

52.15

%

 

9,494,144

 

 

52.07

%

Commercial

 

5,746,765

 

 

33.21

%

 

5,612,743

 

 

32.43

%

 

5,263,895

 

 

31.87

%

 

5,628,678

 

 

32.95

%

 

6,056,710

 

 

33.22

%

Industrial

 

721,245

 

 

4.17

%

 

797,685

 

 

4.61

%

 

770,142

 

 

4.66

%

 

747,844

 

 

4.38

%

 

798,427

 

 

4.38

%

Oilfield

 

310,206

 

 

1.79

%

 

377,882

 

 

2.18

%

 

361,191

 

 

2.19

%

 

323,985

 

 

1.90

%

 

338,316

 

 

1.86

%

Public Authorities and Street lights

 

1,564,240

 

 

9.04

%

 

1,556,382

 

 

8.99

%

 

1,425,617

 

 

8.63

%

 

1,472,420

 

 

8.62

%

 

1,545,632

 

 

8.48

%

Total

 

25,408,515

 

 

100.00

%

 

25,757,612

 

 

100.00

%

 

24,563,997

 

 

100.00

%

 

25,158,584

 

 

100.00

%

 

27,126,716

 

 

100.00

%

 

 

Revenues by Customer Class Percentage Composition in Oklahoma (Dollars in millions)

 

Customer Class

2018

 

2019

 

2020

 

2021

 

2022

 

Residential

$

870.82

 

 

45.32

%

$

819.42

 

 

44.91

%

$

816.49

 

 

46.15

%

$

856.28

 

 

45.73

%

$

1,084.26

 

 

43.90

%

Commercial

 

551.49

 

 

28.70

%

 

473.96

 

 

25.98

%

 

443.20

 

 

25.05

%

 

485.54

 

 

25.93

%

 

668.67

 

 

27.07

%

Industrial

 

149.30

 

 

7.77

%

 

154.59

 

 

8.47

%

 

155.97

 

 

8.81

%

 

159.48

 

 

8.52

%

 

209.51

 

 

8.48

%

Oilfield

 

152.58

 

 

7.94

%

 

179.49

 

 

9.84

%

 

182.90

 

 

10.34

%

 

187.21

 

 

10.00

%

 

261.18

 

 

10.57

%

Public Authorities and Street lights

 

197.09

 

 

10.26

%

 

197.09

 

 

10.80

%

 

170.84

 

 

9.66

%

 

184.07

 

 

9.83

%

 

246.50

 

 

9.98

%

Total

$

1,921.28

 

 

100.00

%

$

1,824.55

 

 

100.00

%

$

1,769.40

 

 

100.00

%

$

1,872.58

 

 

100.00

%

$

2,470.12

 

 

100.00

%

 

 

Number of Customers and Percentage Composition in Oklahoma as of December 31 of the Year Shown Below

 

Customer Class

2018

 

2019

 

2020

 

2021

 

2022

 

Residential

 

669,401

 

 

85.60

%

 

675,375

 

 

85.50

%

 

683,034

 

 

85.51

%

 

691,891

 

 

85.34

%

 

699,210

 

 

85.31

%

Commercial

 

88,360

 

 

11.30

%

 

89,211

 

 

11.29

%

 

90,732

 

 

11.36

%

 

93,785

 

 

11.57

%

 

95,389

 

 

11.64

%

Industrial

 

2,436

 

 

0.31

%

 

2,595

 

 

0.33

%

 

2,366

 

 

0.30

%

 

2,258

 

 

0.28

%

 

2,152

 

 

0.26

%

Oilfield

 

6,351

 

 

0.81

%

 

7,017

 

 

0.89

%

 

6,769

 

 

0.85

%

 

6,752

 

 

0.83

%

 

6,740

 

 

0.82

%

Public Authorities and Street lights

 

15,496

 

 

1.98

%

 

15,758

 

 

1.99

%

 

15,883

 

 

1.99

%

 

16,028

 

 

1.98

%

 

16,132

 

 

1.97

%

Total

 

782,044

 

 

100.00

%

 

789,956

 

 

100.00

%

 

798,784

 

 

100.00

%

 

810,714

 

 

100.00

%

 

819,623

 

 

100.00

%

 

 

Percentage Concentration Within Large Commercial Customers

 

For the year ended December 31, 2022, the ten largest Customers represented approximately 12.4% of total energy usage in Oklahoma and approximately 7.3% of OG&E’s total revenues in Oklahoma. All ten Customers are industrial and oilfield class accounts. There are no material concentrations in the residential and commercial classes.

 

2

 


 

Credit Policy

 

OG&E's current business practice requires new business customers to provide a security deposit in the form of cash, bond or irrevocable letter of credit that is refunded when the account is closed. 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 promulgated by the Commission. 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.

 

Billing Process

 

OG&E bills its Customers on average every 30 days. For the year ended December 31, 2022, OG&E mailed out an average of 42,500 bills on each business day to its Customers. For accounts with potential billing error exceptions, reports are generated for manual review. This review examines accounts that have abnormally high or low bills, potential meter-reading errors, possible meter malfunctions and/or unbilled accounts.

 

Collection, Termination of Service and Write-Off Policy

 

OG&E receives approximately 20% of its total bill payments via U.S. mail. Approximately 80% of bill payments are received via electronic payments. Bills are due 21 calendar days after the issue date at which time they are considered delinquent. Delinquent customers are sent a notice to encourage payment within 10 days and accounts become eligible for disconnect after the passage of these 10 days. For the year ended December 31, 2022, approximately 2.1% of total billed retail revenue became eligible for disconnect and 38.7% of those eligible were disconnected. Approximately 97.4% of accounts disconnected for nonpayment ultimately make full payment and have service restored.

 

If service is terminated, the customer is required to pay all past due amounts as well as a $21 reconnection fee in order to resume service as of the date of this official statement. After service termination due to non-payment a final bill including all unpaid amounts and net of deposits paid is issued within 10 business days. After service termination by customer request, a final bill including all unpaid amounts and net of deposits paid is issued the following business day. Unpaid final bills are written off approximately 180 days after the final bill is issued. Amounts written off are assigned to outside collection agencies and are reported to all three credit reporting agencies. Dollars recovered are netted against actual write-offs.

 

OG&E may change its credit, billing, collections and termination/restoration of service policies and procedures from time to time. It is expected that any such changes would be designed to enhance OG&E’s ability to bill and collect customer charges on a timely basis.

 

3

 


 

Annual Forecast Variance

 

The following table sets forth information related to annual forecast variance for ultimate electric delivery for the past five years. Variances between actual sales and forecasted sales can be caused by a number of factors, though the primary drivers are unexpected extreme temperatures, which can cause actual sales volumes to be higher or unexpected mild temperatures, which can cause actual sales volumes to be lower. For 2020 and 2021, the primary driver of variances between the forecast and actual sales volumes is changes in behavior in response to COVID.

 

Annual Forecast Variance For Ultimate Electric Delivery (MWh)

 

 

2018

 

2019

 

2020

 

2021

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

S/L 1

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

638,920

 

 

797,648

 

 

860,041

 

 

858,415

 

 

855,100

 

Weather Normalized Actuals MWh

 

750,557

 

 

857,790

 

 

795,806

 

 

811,509

 

 

795,924

 

Variance (%)

 

17.5

%

 

7.5

%

 

-7.5

%

 

-5.5

%

 

-6.9

%

S/L 2

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

4,594,197

 

 

5,281,492

 

 

5,058,791

 

 

5,034,069

 

 

4,931,750

 

Weather Normalized Actuals MWh

 

4,836,345

 

 

5,026,112

 

 

4,904,643

 

 

4,926,382

 

 

5,559,893

 

Variance (%)

 

5.3

%

 

-4.8

%

 

-3.0

%

 

-2.1

%

 

12.7

%

S/L 3

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

1,898,373

 

 

1,636,513

 

 

2,039,978

 

 

1,916,903

 

 

1,975,459

 

Weather Normalized Actuals MWh

 

1,912,686

 

 

1,946,601

 

 

1,763,417

 

 

1,866,761

 

 

2,023,875

 

Variance (%)

 

0.8

%

 

18.9

%

 

-13.6

%

 

-2.6

%

 

2.5

%

S/L 4

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

561,924

 

 

535,054

 

 

572,847

 

 

545,964

 

 

517,092

 

Weather Normalized Actuals MWh

 

602,578

 

 

622,397

 

 

561,943

 

 

498,670

 

 

474,136

 

Variance (%)

 

7.2

%

 

16.3

%

 

-1.9

%

 

-8.7

%

 

-8.3

%

S/L 5

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

17,207,720

 

 

17,287,205

 

 

17,302,033

 

 

17,167,836

 

 

17,632,924

 

Weather Normalized Actuals MWh

 

16,945,292

 

 

17,049,119

 

 

16,748,859

 

 

17,278,746

 

 

17,576,608

 

Variance (%)

 

-1.5

%

 

-1.4

%

 

-3.2

%

 

0.6

%

 

-0.3

%

Total

 

 

 

 

 

 

 

 

 

 

Forecast MWh

 

24,901,134

 

 

25,537,912

 

 

25,833,690

 

 

25,523,187

 

 

25,912,325

 

Weather Normalized Actuals MWh

 

25,047,458

 

 

25,502,019

 

 

24,774,668

 

 

25,382,068

 

 

26,430,435

 

Variance (%)

 

0.6

%

 

-0.1

%

 

-4.1

%

 

-0.6

%

 

2.0

%

 

Write-off and Delinquency Experience

 

The following tables set forth information relating to the total billed revenues and write-off experience for the past five years. Such historical information is presented because OG&E’s actual experience with respect to write-offs and delinquencies may be indicative of its future experience, which will affect the timing of WEC Collections. OG&E does not expect, but there can be no certainty, that the delinquency or write-off experience with respect to WEC Collections will differ substantially from the rates indicated. Write-off and delinquency data is affected by factors such as the overall economy, weather and changes in collection practices. The net write-off and delinquency experience is expected, but there can be no certainty, to be similar to OG&E’s previous experience.

 

The following table shows total OG&E revenues for the past five calendar years for each customer class.

 

Billed Revenue by Customer Class (Dollars in millions)

 

Customer Class

2018

 

2019

 

2020

 

2021

 

2022

 

Residential

$

870.81

 

$

819.42

 

$

816.49

 

$

856.28

 

$

1,084.26

 

Commercial

 

551.49

 

 

473.96

 

 

443.20

 

 

485.54

 

 

668.67

 

Industrial

 

149.30

 

 

154.59

 

 

155.97

 

 

159.48

 

 

209.51

 

Oilfield

 

152.58

 

 

179.49

 

 

182.90

 

 

187.21

 

 

261.18

 

Public Authorities and Street Lights

 

197.09

 

 

180.74

 

 

190.84

 

 

184.07

 

 

246.50

 

Total

$

1,921.27

 

$

1,808.20

 

$

1,789.40

 

$

1,872.58

 

$

2,470.12

 

 

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The following table shows gross write-offs for electricity and gross write-offs as a percentage of total billed revenue for the past five years in Oklahoma.

Gross Write-Offs as a Percentage of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 (Dollars in thousands)

2018

 

2019

 

2020

 

2021

 

2022

 

Billed Electric Revenues

$

1,921,274

 

$

1,808,199

 

$

1,769,407

 

$

1,872,565

 

$

2,470,119

 

Gross Write-Offs

$

6,304

 

$

5,387

 

$

5,013

 

$

6,030

 

$

5,657

 

Percentage of Billed Revenues

 

0.33

%

 

0.30

%

 

0.28

%

 

0.32

%

 

0.23

%

 

The following table shows total OG&E net write-offs and total net write-offs as a percentage of total electric billed revenue for the past five years in Oklahoma. Net write-offs include amounts recovered by OG&E from deposits, bankruptcy proceedings and payments received after an account has been either written-off by OG&E or transferred to one of its external collection agencies.

Net Write-Offs as a Percentage of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 (Dollars in thousands)

2018

 

2019

 

2020

 

2021

 

2022

 

Billed Electric Revenues

$

1,921,274

 

$

1,808,199

 

$

1,769,407

 

$

1,872,565

 

$

2,470,119

 

Net Write-Offs

$

3,560

 

$

2,695

 

$

2,086

 

$

3,066

 

$

3,325

 

Percentage of Billed Revenues

 

0.19

%

 

0.15

%

 

0.12

%

 

0.16

%

 

0.13

%

 

Delinquencies

 

The following table sets forth information relating to the delinquency experience of OG&E for residential, commercial, industrial, oilfield and public authorities and street lights as of December 31 of each of the five preceding years.

Customer Delinquency Data*

 

 

Delinquencies as Percentage of Total Billed Revenues/Average Days Outstanding

 

 

2018

 

2019

 

2020

 

2021

 

2022

 

30-59 days

 

2.7

%

 

2.8

%

 

5.6

%

 

5.1

%

 

4.0

%

60-89 days

 

2.0

%

 

2.1

%

 

2.3

%

 

3.3

%

 

3.3

%

90 days or more

 

2.5

%

 

3.4

%

 

7.3

%

 

5.9

%

 

4.7

%

Total

 

7.2

%

 

8.3

%

 

15.2

%

 

14.3

%

 

12.0

%

Average Days Outstanding

 

25.6

 

 

25.1

 

 

26.5

 

 

26.7

 

 

27.0

 

______________________
* Delinquency calculations are based on arrears, revenue, and write-off data provided by OG&E.

 

Where to Find Additional Information About OG&E and OGE Energy. OGE Energy files periodic reports with the SEC as required by the Exchange Act. Reports filed with the SEC are available for inspection without charge at the public reference room maintained by the SEC at 100 F Street, N.E., Washington, DC 20549. Copies of periodic reports and exhibits thereto may be obtained at the above location at prescribed rates. Information as to the operation of the public reference facilities is available by calling the SEC at 1-800-SEC-0330. Information filed with the SEC can also be inspected at the SEC’s website, http://www.sec.gov. OGE Energy’s filings are accessible at http://www.oge.com. Information on OGE Energy’s website or filed with the SEC is not incorporated by reference into this exhibit.

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