S&P shifts OGE, OG&E views to negative

S&P said it changed the outlooks for OGE Energy Corp. and unit Oklahoma Gas & Electric Co. to negative from stable. Higher fuel costs from last month’s severe winter storm caused $800 million-$1 billion in higher fuel and purchased power costs in their service territory.

“The negative outlook reflects the extreme winter weather that increases risk, including weaker financial measures, refinancing risks, and recovery risks. OG&E's higher costs associated with the extreme 2021 winter weather will exceed all of its 2020 related costs. We expect OGE's financial measures will weaken as a result of its very high fuel and purchased power costs.

S&P affirmed all its ratings on both companies, including OGE’s BBB+ issuer rating and Oklahoma Gas’ A- senior note ratings.

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