Oklahoma Gas and Electric Company generates, transmits, distributes and sells electric energy in Oklahoma and western Arkansas. The Company is subject to regulation by the Oklahoma Corporation Commission (OCC), the Arkansas Public Service Commission (APSC) and the Federal Energy Regulatory Commission (FERC). It is a wholly owned subsidiary of OGE Energy Corp. (Energy Corp.), which is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas primarily in the south central United States. The Company is an electric utility in Oklahoma, and its franchised service territory includes the Fort Smith, Arkansas area. The Company sold its retail gas business in 1928, and is no longer engaged in the gas distribution business. During the year ended December 31, 2007, five other communities and two rural electric cooperatives in Oklahoma and western Arkansas purchased electricity from the Company for resale.