OGE
#It's really just the downturn in commodity prices and just operating results from Enable for the most part.
It's really a change in the tax law in Louisiana and its taxes that flow through from Enable.
If you recall, back in 2013, we setup an employment company and we booked ---+ we increased what we booked, a deferred tax liability of about $17 million and this really just brings that down and it's just a change that they made in their apportionment calculation.
Yes, until some other change would be made in the tax code, but yes, one-time.
July weather was slightly above normal, it was pretty humid.
So yes, it helped us get back on track.
If you recall from the first quarter, we were down a little more on weather and we made up some of that or we will make up more of that in July, it was pretty good.
Yes, I think that's accurate.
No, I think we look at those independent and so that's not going to factor into that.
My comments around the CapEx were really focused on what value we could bring to those communities and those customers.
I want to see that customer benefit and then I want to make sure that we have clear line of sight of how we're going to recover that.
And that's how we think about that piece of the business and again Enable is a separate discussion and as we've talked about, we like the way this is working where they're actually flowing cash to us.
The Ad Valorem is really property taxes.
That's just what they call it in Oklahoma.
So we just added that.
If you recall, when we were in the rate case, we were looking for [Seawip].
We're just adding in the AFUDC and the property taxes now given how we'll be recovering that going forward.
We get both.
We get a return on and we anticipate we'll get recovery as well.
We just haven't included that in our CapEx up to this point.
That's correct.
Sure, thanks <UNK>.
I think your description, we are utility, we've got that and we've actually removed a lot of that commodity exposure.
Recall, we used to have 25% of our business was Enogex.
Now, it's a much smaller piece, but we positioned Enogex not for earnings, but for cash ---+ I mean Enable, not for earnings, but for cash.
And that's how we're thinking about Enable.
So OGE is a utility.
It just has a cash flow stream coming out of Enable.
Yes.
So, generally speaking, they are ROFO and ROFR rights, okay, and it's for any of the pieces, meaning the GP or the LP individually or combined for both.
That's just how it works.
Yes, we'll cross that bridge when we get there.
I'm not exactly sure how we're going to handle all that as far as what ultimate decision we make, but obviously we'll address that in some way.
Yes, so let me ---+ <UNK>, the first question I think to be perfectly honest, you need to address that with CenterPoint.
I mean their decision criteria is something that they ought to speak to, but as far as the way this works is on August 17.
That is the date when the 30 days is up.
If we make an offer for any or a piece of this or whatever it is, CenterPoint will have 30 days to respond.
If it's not accepted, they will have 120 days to sell that interest for a value not less than 105% of what we offered.
Then again, if we don't make an offer, that's a different issue.
They have 120 days to go pursue their transactions.
Okay.
Yes, the [ROFR] provisions, they work kind of mirror of each other.
So, if they were to receive an unsolicited offer, we have a [ROFR] right on that as well.
Right.
Yes, what we're really doing is we're deferring recording any income off of that.
So we're effectively setting up a regulatory liability.
We are receiving the cash, but we will wait until an order before we book any earnings associated with that.
Yes, they did.
No, we've exhausted those outcomes and we have the compliance deadline of January of 2019 and unfortunately we have to meet those deadlines.
No, I do not believe there was.
Yes, Enable's hedges are really for the balance of 2016 and they do have some for 2017.
They're significantly hedged as it relates to 2016 and rough numbers, about half of that amount would be in 2017.
Yes, [they don't say] specifically how would unwinds, I don't necessarily want to comment on that.
I'm just saying [of their hedge position, they are about half as much] hedged in 2017 as they are in 2016.
It all depends on when they put the hedges on and what month they were specifically hedging at what prices.
Well, just in closing, I want to thank you for your time this morning.
Thank you for your interest and support in OGE.
We're excited about the future and really pleased with the progress we're making today.
So have a great day and we will speak to you soon.
