OGE Energy Corp. (NYSE:OGE) Q2 2017 Earnings Conference Call - Preliminary Transcript

Aug 03, 2017 • 09:00 am ET

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OGE Energy Corp. (NYSE:OGE) Q2 2017 Earnings Conference Call - Preliminary Transcript

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Q & A
Executive
Sean Trauschke

deploying some of these technologies that benefit our customers in Arkansas. In Oklahoma, we're going to get through some of these other investments, and make sure we have line of sight before we go down that path.

Analyst
Shar Pourreza

That's helpful. And then, Sean, just on the line of sight, what's sort of that inflection point on, and how you think about your capital program on a go-forward basis. Is it this fourth quarter rate case would give enough confidence where you could potentially revisit your capital program, which is declining obviously by methodology? But is it this quarter, is it this year's rate case or is it next year's rate case where you would build enough confidence to --

Executive
Sean Trauschke

Yes, I think it's a momentum factor. I think that's a fair point. And I think you should expect us to begin gradually layering that in, as I mentioned in my remarks. I believe that beginning in 2019, and beyond, that we'll resume more historical average CapEx numbers. But again, I want to hold that until we have clear line of sight to those investments. But like I said, we'll begin layering that in in Arkansas next year, and then probably the following year on Oklahoma assuming things continue.

Analyst
Shar Pourreza

Terrific, guys. Have a good morning.

Executive
Sean Trauschke

Thanks. You too. Thanks for the call.

Operator
Operator

Thank you. Our next question or comment comes from the line of Neel Mitra from Tudor, Pickering. Your line is open.

Analyst
Neel Mitra

Hi, good morning.

Executive
Sean Trauschke

Hi, good morning, Neel.

Analyst
Neel Mitra

Sean, I wanted to address the topic of pre-approvals. So I know a lot of your investments are being deferred just to have a line of sight on recovery. When will that change? Does that require legislation to play through or do you think that conversations with the commissioners will lead to better results with that. And how does the commission view it right now in terms of how important that is for you to go forward with capital spending?

Executive
Sean Trauschke

Thanks, Neel. A good question. I think the commission has a good appreciation now of how important that is to us, on what that means in terms of raising capital to fund these investments. We do have recall we do have the approval for the Sooner scrubbers, and we will file for that rate case to actually get in rates, but we do have the determination already in hand on that. But these other investments I'm talking about around the grid, I think those are investments that we're going to show the benefits of customers.

And all customers will realize those. And recall is as disappointed as we were in the last rate case, we had $1.6 billion of requests in that rate case, and all of that was approved, right. So it's not been a case of disallowance, Neel. It's been a case of some of these -- just the time delay it took to get there, and in this last case it was ROE and depreciation.

Analyst
Neel Mitra

Right. And secondly, are