Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Entity Registrant Name | PPL Corp | |
Entity Central Index Key | 922224 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 668,107,248 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
PPL Electric Utilities Corp [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | FALSE | |
Entity Registrant Name | PPL ELECTRIC UTILITIES CORP | |
Entity Central Index Key | 317187 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,368,056 | |
LG And E And KU Energy LLC [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | FALSE | |
Entity Registrant Name | LG&E & KU Energy LLC | |
Entity Central Index Key | 1518339 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Louisville Gas And Electric Co [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | FALSE | |
Entity Registrant Name | LOUISVILLE GAS & ELECTRIC CO | |
Entity Central Index Key | 60549 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,294,223 | |
Kentucky Utilities Co [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | FALSE | |
Entity Registrant Name | KENTUCKY UTILITIES CO | |
Entity Central Index Key | 55387 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,817,878 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Operating Revenues | ||||
Utility | $2,214 | $2,162 | ||
Unregulated wholesale energy | 521 | -1,457 | ||
Unregulated retail energy | 310 | 348 | ||
Energy-related businesses | 120 | 141 | ||
Total Operating Revenues | 3,165 | 1,194 | ||
Operation | ||||
Fuel | 604 | 758 | ||
Energy purchases | 321 | -1,494 | ||
Other operation and maintenance | 668 | 668 | ||
Depreciation | 293 | 300 | ||
Taxes, other than income | 101 | 101 | ||
Energy-related businesses | 111 | 138 | ||
Total Operating Expenses | 2,098 | 471 | ||
Operating Income (Loss) | 1,067 | 723 | ||
Other Income (Expense) - net | 95 | -23 | ||
Interest Expense | 247 | 262 | ||
Income (Loss) Before Income Taxes | 915 | 438 | ||
Income Taxes | 268 | 114 | ||
Income (Loss) from Continuing Operations After Income Taxes | 647 | 324 | ||
Income (Loss) from Discontinued Operations (net of income taxes) | 0 | -8 | ||
Net Income (Loss) | 647 | 316 | ||
Net Income (Loss) Attributable to Shareowners | 647 | 316 | ||
Amounts Attributable to Shareowners: | ||||
Income from Continuing Operations After Income Taxes | 647 | 324 | ||
Net Income | 647 | 316 | ||
Income from Continuing Operations After Income Taxes Available to PPL Common Shareowners: | ||||
Basic (in dollars per share) | $0.97 | $0.51 | ||
Diluted (in dollars per share) | $0.96 | $0.50 | ||
Net Income Available to PPL Common Shareowners: | ||||
Basic (in dollars per share) | $0.97 | $0.50 | ||
Diluted (in dollars per share) | $0.96 | $0.49 | ||
Dividends Declared Per Share of Common Stock | $0.37 | $0.37 | ||
Weighted-Average Shares of Common Stock Outstanding (in thousands) | ||||
Basic | 666,974 | 630,749 | ||
Diluted | 668,732 | 663,939 | ||
PPL Electric Utilities Corp [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 630 | 592 | ||
Operation | ||||
Energy purchases | 227 | 189 | ||
Energy purchases from affiliates | 9 | 27 | ||
Other operation and maintenance | 133 | 134 | ||
Depreciation | 51 | 45 | ||
Taxes, other than income | 35 | 32 | ||
Total Operating Expenses | 455 | 427 | ||
Operating Income (Loss) | 175 | 165 | ||
Other Income (Expense) - net | 2 | 2 | ||
Interest Expense | 31 | 29 | ||
Income (Loss) Before Income Taxes | 146 | 138 | ||
Income Taxes | 59 | 53 | ||
Net Income (Loss) | 87 | [1] | 85 | [1] |
LG And E And KU Energy LLC [Member] | ||||
Operating Revenues | ||||
Total Operating Revenues | 899 | 934 | ||
Operation | ||||
Fuel | 253 | 277 | ||
Energy purchases - realized | 92 | 124 | ||
Other operation and maintenance | 209 | 206 | ||
Depreciation | 95 | 86 | ||
Taxes, other than income | 14 | 13 | ||
Total Operating Expenses | 663 | 706 | ||
Operating Income (Loss) | 236 | 228 | ||
Other Income (Expense) - net | -1 | -2 | ||
Interest Expense | 42 | 42 | ||
Income (Loss) Before Income Taxes | 193 | 184 | ||
Income Taxes | 76 | 69 | ||
Net Income (Loss) | 117 | [1] | 115 | [1] |
Louisville Gas And Electric Co [Member] | ||||
Operating Revenues | ||||
Retail electric | 417 | 442 | ||
Revenue to affiliates | 22 | 37 | ||
Total Operating Revenues | 439 | 479 | ||
Operation | ||||
Fuel | 103 | 117 | ||
Energy purchases - realized | 88 | 118 | ||
Energy purchases from affiliates | 3 | 6 | ||
Other operation and maintenance | 96 | 98 | ||
Depreciation | 42 | 38 | ||
Taxes, other than income | 7 | 6 | ||
Total Operating Expenses | 339 | 383 | ||
Operating Income (Loss) | 100 | 96 | ||
Other Income (Expense) - net | -1 | -2 | ||
Interest Expense | 13 | 12 | ||
Income (Loss) Before Income Taxes | 86 | 82 | ||
Income Taxes | 33 | 30 | ||
Net Income (Loss) | 53 | [2] | 52 | [2] |
Kentucky Utilities Co [Member] | ||||
Operating Revenues | ||||
Retail electric | 482 | 492 | ||
Revenue to affiliates | 3 | 6 | ||
Total Operating Revenues | 485 | 498 | ||
Operation | ||||
Fuel | 150 | 160 | ||
Energy purchases - realized | 4 | 6 | ||
Energy purchases from affiliates | 22 | 37 | ||
Other operation and maintenance | 104 | 98 | ||
Depreciation | 53 | 48 | ||
Taxes, other than income | 7 | 7 | ||
Total Operating Expenses | 340 | 356 | ||
Operating Income (Loss) | 145 | 142 | ||
Other Income (Expense) - net | -1 | 0 | ||
Interest Expense | 19 | 19 | ||
Income (Loss) Before Income Taxes | 125 | 123 | ||
Income Taxes | 47 | 46 | ||
Net Income (Loss) | $78 | [1] | $77 | [1] |
[1] | Net income approximates comprehensive income. | |||
[2] | Net income equals comprehensive income. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net income (loss) | $647 | $316 | ||
Amounts arising during the period - gains (losses), net of tax (expense) benefit: | ||||
Foreign currency translation adjustments, net of tax | -66 | 131 | ||
Available-for-sale securities, net of tax | 5 | 5 | ||
Qualifying derivatives, net of tax | 6 | -46 | ||
Defined benefit plans: | ||||
Net actuarial gain (loss), net of tax | -1 | 0 | ||
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit): | ||||
Available-for-sale securities, net of tax | -1 | -1 | ||
Qualifying derivatives, net of tax | -17 | 19 | ||
Equity investee's other comprehensive (income) loss, net of tax | -1 | 0 | ||
Defined benefit plans: | ||||
Prior service costs, net of tax | 0 | 1 | ||
Net actuarial loss, net of tax | 38 | 27 | ||
Total other comprehensive income (loss) | -37 | 136 | ||
Comprehensive income (loss) attributable to Shareowners | 610 | 452 | ||
PPL Electric Utilities Corp [Member] | ||||
Net income (loss) | 87 | [1] | 85 | [1] |
LG And E And KU Energy LLC [Member] | ||||
Net income (loss) | 117 | [1] | 115 | [1] |
Louisville Gas And Electric Co [Member] | ||||
Net income (loss) | 53 | [2] | 52 | [2] |
Kentucky Utilities Co [Member] | ||||
Net income (loss) | 78 | [1] | 77 | [1] |
Defined benefit plans: | ||||
Total other comprehensive income (loss) | ($1) | ($1) | ||
[1] | Net income approximates comprehensive income. | |||
[2] | Net income equals comprehensive income. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Tax effect of foreign currency translation adjustments arising during the period | ($5) | $1 |
Tax effect of available-for-sale securities arising during the period | -6 | -6 |
Tax effect of qualifying derivatives arising during the period | 4 | 25 |
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period | 0 | 0 |
Tax effect of available-for-sale securities reclassified from accumulated other comprehensive income (loss) | 1 | 1 |
Tax effect of qualifying derivatives reclassified from accumulated other comprehensive income (loss) | 4 | -4 |
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss) | -1 | 0 |
Tax effect of prior service costs reclassified from accumulated other comprehensive income (loss) | 0 | -1 |
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss) | ($13) | ($9) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Cash Flows from Operating Activities | ||||
Net income (loss) | $647 | $316 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation | 293 | 305 | ||
Amortization | 57 | 60 | ||
Defined benefit plans - expense | 28 | 21 | ||
Deferred income taxes and investment tax credits | 124 | -26 | ||
Unrealized (gains) losses on derivatives, and other hedging activities | -90 | 241 | ||
Adjustment to WPD line loss accrual | 0 | 65 | ||
Stock compensation expense | 28 | 28 | ||
Other | 4 | 5 | ||
Change in current assets and current liabilities | ||||
Accounts receivable | -143 | -185 | ||
Accounts payable | -139 | 93 | ||
Unbilled revenues | 111 | -33 | ||
Fuel, materials and supplies | 149 | 96 | ||
Prepayments | -81 | -70 | ||
Taxes payable | 44 | 126 | ||
Other current liabilities | -172 | -59 | ||
Other | 38 | 10 | ||
Other operating activities | ||||
Defined benefit plans - funding | -271 | -135 | ||
Other assets | -1 | -3 | ||
Other liabilities | 47 | 76 | ||
Net cash provided by (used in) operating activities | 673 | 931 | ||
Cash Flows from Investing Activities | ||||
Expenditures for property, plant and equipment | -942 | -892 | ||
Expenditures for intangible assets | -20 | -16 | ||
Purchases of nuclear plant decommissioning trust investments | -43 | -32 | ||
Proceeds from the sale of nuclear plant decommissioning trust investments | 38 | [1] | 27 | [1] |
Proceeds from receipt of grants | 0 | 56 | ||
Net (increase) decrease in restricted cash and cash equivalents | -10 | -334 | ||
Other investing activities | -13 | 8 | ||
Net cash provided by (used in) investing activities | -990 | -1,183 | ||
Cash Flows from Financing Activities | ||||
Retirement of long-term debt | -1 | -239 | ||
Issuance of common stock | 35 | 15 | ||
Payment of common stock dividends | -250 | -234 | ||
Net increase (decrease) in short-term debt | 133 | 878 | ||
Other financing activities | -14 | -28 | ||
Net cash provided by (used in) financing activities | -97 | 392 | ||
Effect of Exchange Rates on Cash and Cash Equivalents | -2 | 14 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | -416 | 154 | ||
Cash and Cash Equivalents at Beginning of Period | 1,751 | 1,102 | ||
Cash and Cash Equivalents at End of Period | 1,335 | 1,256 | ||
PPL Electric Utilities Corp [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | 87 | [2] | 85 | [2] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation | 51 | 45 | ||
Amortization | 6 | 4 | ||
Defined benefit plans - expense | 4 | 3 | ||
Deferred income taxes and investment tax credits | 5 | 25 | ||
Other | -3 | -14 | ||
Change in current assets and current liabilities | ||||
Accounts receivable | -73 | -107 | ||
Accounts payable | -39 | 22 | ||
Prepayments | -60 | -61 | ||
Other | -6 | -1 | ||
Other operating activities | ||||
Defined benefit plans - funding | -33 | -19 | ||
Other assets | -1 | 4 | ||
Other liabilities | 17 | 10 | ||
Net cash provided by (used in) operating activities | -45 | -4 | ||
Cash Flows from Investing Activities | ||||
Expenditures for property, plant and equipment | -224 | -201 | ||
Net (increase) decrease in notes receivable from affiliates | 0 | 150 | ||
Other investing activities | -1 | 9 | ||
Net cash provided by (used in) investing activities | -225 | -42 | ||
Cash Flows from Financing Activities | ||||
Retirement of long-term debt | 0 | -10 | ||
Payment of common stock dividends to parent | -44 | -32 | ||
Contributions from member | 50 | 65 | ||
Net increase (decrease) in short-term debt | 85 | 40 | ||
Net cash provided by (used in) financing activities | 91 | 63 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | -179 | 17 | ||
Cash and Cash Equivalents at Beginning of Period | 214 | 25 | ||
Cash and Cash Equivalents at End of Period | 35 | 42 | ||
LG And E And KU Energy LLC [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | 117 | [2] | 115 | [2] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation | 95 | 86 | ||
Amortization | 6 | 6 | ||
Defined benefit plans - expense | 11 | 8 | ||
Deferred income taxes and investment tax credits | 75 | 74 | ||
Other | 17 | -1 | ||
Change in current assets and current liabilities | ||||
Accounts receivable | -39 | -39 | ||
Accounts payable | -18 | 22 | ||
Accounts payable to affiliates | 0 | 0 | ||
Unbilled revenues | 32 | 36 | ||
Fuel, materials and supplies | 71 | 53 | ||
Income tax receivable | 134 | -11 | ||
Taxes payable | -11 | -14 | ||
Accrued interest | 37 | 36 | ||
Other | -21 | -24 | ||
Other operating activities | ||||
Defined benefit plans - funding | -53 | -38 | ||
Other assets | -6 | 1 | ||
Other liabilities | 4 | 0 | ||
Net cash provided by (used in) operating activities | 451 | 310 | ||
Cash Flows from Investing Activities | ||||
Expenditures for property, plant and equipment | -321 | -272 | ||
Net (increase) decrease in notes receivable from affiliates | 0 | 66 | ||
Other investing activities | 4 | 0 | ||
Net cash provided by (used in) investing activities | -317 | -206 | ||
Cash Flows from Financing Activities | ||||
Contributions from member | 0 | 40 | ||
Distributions to member | -23 | -104 | ||
Net increase (decrease) in notes payable to affiliates | -1 | 0 | ||
Net increase (decrease) in short-term debt | -91 | -45 | ||
Net cash provided by (used in) financing activities | -115 | -109 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 19 | -5 | ||
Cash and Cash Equivalents at Beginning of Period | 21 | 35 | ||
Cash and Cash Equivalents at End of Period | 40 | 30 | ||
Louisville Gas And Electric Co [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | 53 | [3] | 52 | [3] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation | 42 | 38 | ||
Amortization | 3 | 3 | ||
Defined benefit plans - expense | 4 | 2 | ||
Deferred income taxes and investment tax credits | 31 | 6 | ||
Other | 14 | -5 | ||
Change in current assets and current liabilities | ||||
Accounts receivable | -16 | -18 | ||
Accounts receivable from affiliates | 11 | -22 | ||
Accounts payable | -15 | 14 | ||
Accounts payable to affiliates | 0 | -7 | ||
Unbilled revenues | 18 | 22 | ||
Fuel, materials and supplies | 56 | 44 | ||
Income tax receivable | 74 | 0 | ||
Taxes payable | -7 | 21 | ||
Accrued interest | 9 | 9 | ||
Other | -3 | -4 | ||
Other operating activities | ||||
Defined benefit plans - funding | -22 | -9 | ||
Other assets | -1 | 1 | ||
Other liabilities | 0 | 2 | ||
Net cash provided by (used in) operating activities | 251 | 149 | ||
Cash Flows from Investing Activities | ||||
Expenditures for property, plant and equipment | -173 | -116 | ||
Net cash provided by (used in) investing activities | -173 | -116 | ||
Cash Flows from Financing Activities | ||||
Contributions from parent | 0 | 0 | ||
Payment of common stock dividends to parent | -23 | -27 | ||
Net increase (decrease) in short-term debt | -48 | -5 | ||
Net cash provided by (used in) financing activities | -71 | -32 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 7 | 1 | ||
Cash and Cash Equivalents at Beginning of Period | 10 | 8 | ||
Cash and Cash Equivalents at End of Period | 17 | 9 | ||
Kentucky Utilities Co [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income (loss) | 78 | [2] | 77 | [2] |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation | 53 | 48 | ||
Amortization | 3 | 3 | ||
Defined benefit plans - expense | 3 | 2 | ||
Deferred income taxes and investment tax credits | 43 | 34 | ||
Other | 2 | 2 | ||
Change in current assets and current liabilities | ||||
Accounts receivable | -25 | -24 | ||
Accounts payable | 1 | 15 | ||
Accounts payable to affiliates | -14 | 16 | ||
Unbilled revenues | 14 | 14 | ||
Fuel, materials and supplies | 15 | 9 | ||
Income tax receivable | 60 | 0 | ||
Taxes payable | -1 | -12 | ||
Accrued interest | 19 | 18 | ||
Other | -5 | -9 | ||
Other operating activities | ||||
Defined benefit plans - funding | -15 | -3 | ||
Other assets | -3 | 0 | ||
Other liabilities | 1 | 1 | ||
Net cash provided by (used in) operating activities | 229 | 191 | ||
Cash Flows from Investing Activities | ||||
Expenditures for property, plant and equipment | -148 | -154 | ||
Other investing activities | 4 | 0 | ||
Net cash provided by (used in) investing activities | -144 | -154 | ||
Cash Flows from Financing Activities | ||||
Contributions from parent | 0 | 40 | ||
Payment of common stock dividends to parent | -30 | -37 | ||
Net increase (decrease) in short-term debt | -43 | -40 | ||
Net cash provided by (used in) financing activities | -73 | -37 | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 12 | 0 | ||
Cash and Cash Equivalents at Beginning of Period | 11 | 21 | ||
Cash and Cash Equivalents at End of Period | $23 | $21 | ||
[1] | These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust. | |||
[2] | Net income approximates comprehensive income. | |||
[3] | Net income equals comprehensive income. |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Current Assets | ||||
Cash and cash equivalents | $1,335 | $1,751 | ||
Short-term investments | 135 | 120 | ||
Restricted cash and cash equivalents | 190 | 180 | ||
Accounts receivable (less reserve:) | ||||
Customer | 1,104 | 923 | ||
Other | 127 | 171 | ||
Unbilled revenues | 621 | 735 | ||
Fuel, materials and supplies | 687 | 836 | ||
Prepayments | 168 | 87 | ||
Deferred income taxes | 155 | 129 | ||
Price risk management assets | 1,119 | 1,158 | ||
Regulatory assets | 23 | 37 | ||
Other current assets | 35 | 32 | ||
Total Current Assets | 5,699 | 6,159 | ||
Investments | ||||
Nuclear plant decommissioning trust funds | 965 | 950 | ||
Other investments | 34 | 35 | ||
Total Investments | 999 | 985 | ||
Property, Plant and Equipment | ||||
Regulated utility plant | 30,852 | 30,568 | ||
Less: accumulated depreciation - regulated utility plant | 5,413 | 5,361 | ||
Regulated utility plant, net | 25,439 | 25,207 | ||
Non-regulated property, plant and equipment | ||||
Generation | 11,309 | 11,310 | ||
Nuclear fuel | 749 | 624 | ||
Other | 893 | 885 | ||
Less: accumulated depreciation - non-regulated property, plant and equipment | 6,516 | 6,404 | ||
Non-regulated property, plant and equipment, net | 6,435 | 6,415 | ||
Construction work in progress | 3,085 | 2,975 | ||
Property, Plant and Equipment, net | 34,959 | 34,597 | ||
Assets, Noncurrent [Abstract] | ||||
Regulatory assets | 1,610 | 1,562 | ||
Goodwill | 3,964 | 4,005 | ||
Other intangibles | 920 | 925 | ||
Price risk management assets | 437 | 319 | ||
Other noncurrent assets | 333 | 312 | ||
Total Other Noncurrent Assets | 7,264 | 7,123 | ||
Total Assets | 48,921 | 48,864 | ||
Current Liabilities | ||||
Short-term debt | 1,595 | 1,466 | ||
Long-term debt due within one year | 1,535 | 1,535 | ||
Accounts payable | 1,128 | 1,356 | ||
Taxes | 274 | 230 | ||
Interest | 345 | 314 | ||
Dividends | 249 | 249 | ||
Price risk management liabilities | 1,073 | 1,126 | ||
Regulatory liabilities | 109 | 91 | ||
Other current liabilities | 909 | 1,076 | ||
Total Current Liabilities | 7,217 | 7,443 | ||
Long-term Debt | 18,772 | 18,856 | ||
Deferred Credits and Other Noncurrent Liabilities | ||||
Deferred income taxes | 4,627 | 4,450 | ||
Investment tax credits | 157 | 159 | ||
Price risk management liabilities | 333 | 252 | ||
Accrued pension obligations | 1,457 | 1,756 | ||
Asset retirement obligations | 739 | 739 | ||
Regulatory liabilities | 987 | 992 | ||
Other deferred credits and noncurrent liabilities | 596 | 589 | ||
Total Deferred Credits and Other Noncurrent Liabilities | 8,896 | 8,937 | ||
Commitments and Contingent Liabilities | ||||
Equity | ||||
Common stock | 7 | [1] | 7 | [1] |
Additional paid-in capital | 9,480 | 9,433 | ||
Earnings reinvested | 6,860 | 6,462 | ||
Accumulated other comprehensive income (loss) | -2,311 | -2,274 | ||
Total Stockholders' Equity | 14,036 | 13,628 | ||
Total Liabilities and Equity | 48,921 | 48,864 | ||
PPL Electric Utilities Corp [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 35 | 214 | ||
Accounts receivable (less reserve:) | ||||
Customer | 403 | 312 | ||
Other | 27 | 44 | ||
Unbilled revenues | 115 | 113 | ||
Fuel, materials and supplies | 38 | 43 | ||
Prepayments | 70 | 10 | ||
Deferred income taxes | 66 | 58 | ||
Regulatory assets | 3 | 12 | ||
Other current assets | 12 | 13 | ||
Total Current Assets | 769 | 819 | ||
Property, Plant and Equipment | ||||
Regulated utility plant | 7,717 | 7,589 | ||
Less: accumulated depreciation - regulated utility plant | 2,555 | 2,517 | ||
Regulated utility plant, net | 5,162 | 5,072 | ||
Non-regulated property, plant and equipment | ||||
Construction work in progress | 837 | 738 | ||
Property, Plant and Equipment, net | 5,999 | 5,810 | ||
Assets, Noncurrent [Abstract] | ||||
Regulatory assets | 891 | 897 | ||
Other intangibles | 237 | 235 | ||
Other noncurrent assets | 25 | 24 | ||
Total Other Noncurrent Assets | 1,153 | 1,156 | ||
Total Assets | 7,921 | 7,785 | ||
Current Liabilities | ||||
Short-term debt | 85 | 0 | ||
Long-term debt due within one year | 100 | 100 | ||
Accounts payable | 301 | 325 | ||
Accounts payable to affiliates | 70 | 70 | ||
Taxes | 90 | 85 | ||
Interest | 26 | 34 | ||
Regulatory liabilities | 85 | 76 | ||
Other current liabilities | 80 | 103 | ||
Total Current Liabilities | 837 | 793 | ||
Long-term Debt | 2,503 | 2,502 | ||
Deferred Credits and Other Noncurrent Liabilities | ||||
Deferred income taxes | 1,497 | 1,483 | ||
Accrued pension obligations | 182 | 212 | ||
Regulatory liabilities | 26 | 18 | ||
Other deferred credits and noncurrent liabilities | 66 | 60 | ||
Total Deferred Credits and Other Noncurrent Liabilities | 1,771 | 1,773 | ||
Commitments and Contingent Liabilities | ||||
Equity | ||||
Common stock | 364 | [2] | 364 | [2] |
Additional paid-in capital | 1,653 | 1,603 | ||
Earnings reinvested | 793 | 750 | ||
Total Stockholders' Equity | 2,810 | 2,717 | ||
Total Liabilities and Equity | 7,921 | 7,785 | ||
LG And E And KU Energy LLC [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 40 | 21 | ||
Accounts receivable (less reserve:) | ||||
Customer | 268 | 231 | ||
Other | 14 | 18 | ||
Unbilled revenues | 135 | 167 | ||
Fuel, materials and supplies | 239 | 311 | ||
Prepayments | 23 | 28 | ||
Income taxes receivable | 2 | 136 | ||
Deferred income taxes | 21 | 16 | ||
Regulatory assets | 20 | 25 | ||
Other current assets | 6 | 3 | ||
Total Current Assets | 768 | 956 | ||
Property, Plant and Equipment | ||||
Regulated utility plant | 10,069 | 10,007 | ||
Less: accumulated depreciation - regulated utility plant | 1,049 | 1,067 | ||
Regulated utility plant, net | 9,020 | 8,940 | ||
Non-regulated property, plant and equipment | ||||
Other, net | 4 | 5 | ||
Construction work in progress | 1,672 | 1,559 | ||
Property, Plant and Equipment, net | 10,696 | 10,504 | ||
Assets, Noncurrent [Abstract] | ||||
Regulatory assets | 719 | 665 | ||
Goodwill | 996 | 996 | ||
Other intangibles | 161 | 174 | ||
Other noncurrent assets | 103 | 101 | ||
Total Other Noncurrent Assets | 1,979 | 1,936 | ||
Total Assets | 13,443 | 13,396 | ||
Current Liabilities | ||||
Short-term debt | 484 | 575 | ||
Long-term debt due within one year | 900 | 900 | ||
Notes payable with affiliates | 40 | 41 | ||
Accounts payable | 350 | 399 | ||
Accounts payable to affiliates | 3 | 2 | ||
Customer deposits | 52 | 52 | ||
Taxes | 25 | 36 | ||
Interest | 60 | 23 | ||
Price risk management liabilities | 5 | 5 | ||
Price risk management liabilities from affiliates | 122 | 66 | ||
Regulatory liabilities | 24 | 15 | ||
Other current liabilities | 115 | 131 | ||
Total Current Liabilities | 2,180 | 2,245 | ||
Long-term Debt | 3,667 | 3,667 | ||
Deferred Credits and Other Noncurrent Liabilities | ||||
Deferred income taxes | 1,324 | 1,241 | ||
Investment tax credits | 130 | 131 | ||
Price risk management liabilities | 47 | 43 | ||
Accrued pension obligations | 256 | 305 | ||
Asset retirement obligations | 266 | 274 | ||
Regulatory liabilities | 961 | 974 | ||
Other deferred credits and noncurrent liabilities | 270 | 268 | ||
Total Deferred Credits and Other Noncurrent Liabilities | 3,254 | 3,236 | ||
Commitments and Contingent Liabilities | ||||
Equity | ||||
Member's Equity | 4,342 | 4,248 | ||
Total Liabilities and Equity | 13,443 | 13,396 | ||
Louisville Gas And Electric Co [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 17 | 10 | ||
Accounts receivable (less reserve:) | ||||
Customer | 121 | 107 | ||
Other | 9 | 11 | ||
Unbilled revenues | 58 | 76 | ||
Accounts receivable from affiliates | 13 | 23 | ||
Fuel, materials and supplies | 105 | 162 | ||
Prepayments | 7 | 8 | ||
Income taxes receivable | 0 | 74 | ||
Regulatory assets | 12 | 21 | ||
Other current assets | 5 | 1 | ||
Total Current Assets | 347 | 493 | ||
Property, Plant and Equipment | ||||
Regulated utility plant | 4,016 | 4,031 | ||
Less: accumulated depreciation - regulated utility plant | 398 | 456 | ||
Regulated utility plant, net | 3,618 | 3,575 | ||
Non-regulated property, plant and equipment | ||||
Construction work in progress | 761 | 676 | ||
Property, Plant and Equipment, net | 4,379 | 4,251 | ||
Assets, Noncurrent [Abstract] | ||||
Regulatory assets | 422 | 397 | ||
Goodwill | 389 | 389 | ||
Other intangibles | 91 | 97 | ||
Other noncurrent assets | 36 | 35 | ||
Total Other Noncurrent Assets | 938 | 918 | ||
Total Assets | 5,664 | 5,662 | ||
Current Liabilities | ||||
Short-term debt | 216 | 264 | ||
Long-term debt due within one year | 250 | 250 | ||
Accounts payable | 222 | 240 | ||
Accounts payable to affiliates | 20 | 20 | ||
Customer deposits | 25 | 25 | ||
Taxes | 12 | 19 | ||
Interest | 15 | 6 | ||
Price risk management liabilities | 5 | 5 | ||
Price risk management liabilities from affiliates | 61 | 33 | ||
Regulatory liabilities | 14 | 10 | ||
Other current liabilities | 37 | 42 | ||
Total Current Liabilities | 877 | 914 | ||
Long-term Debt | 1,103 | 1,103 | ||
Deferred Credits and Other Noncurrent Liabilities | ||||
Deferred income taxes | 735 | 700 | ||
Investment tax credits | 36 | 36 | ||
Price risk management liabilities | 47 | 43 | ||
Accrued pension obligations | 34 | 57 | ||
Asset retirement obligations | 64 | 66 | ||
Regulatory liabilities | 454 | 458 | ||
Other deferred credits and noncurrent liabilities | 110 | 111 | ||
Total Deferred Credits and Other Noncurrent Liabilities | 1,480 | 1,471 | ||
Commitments and Contingent Liabilities | ||||
Equity | ||||
Common stock | 424 | [3] | 424 | [3] |
Additional paid-in capital | 1,521 | 1,521 | ||
Earnings reinvested | 259 | 229 | ||
Total Stockholders' Equity | 2,204 | 2,174 | ||
Total Liabilities and Equity | 5,664 | 5,662 | ||
Kentucky Utilities Co [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 23 | 11 | ||
Accounts receivable (less reserve:) | ||||
Customer | 147 | 124 | ||
Other | 5 | 6 | ||
Unbilled revenues | 77 | 91 | ||
Fuel, materials and supplies | 134 | 149 | ||
Prepayments | 7 | 10 | ||
Income taxes receivable | 0 | 60 | ||
Regulatory assets | 8 | 4 | ||
Other current assets | 11 | 4 | ||
Total Current Assets | 412 | 459 | ||
Property, Plant and Equipment | ||||
Regulated utility plant | 6,053 | 5,976 | ||
Less: accumulated depreciation - regulated utility plant | 651 | 611 | ||
Regulated utility plant, net | 5,402 | 5,365 | ||
Non-regulated property, plant and equipment | ||||
Other, net | 1 | 1 | ||
Construction work in progress | 908 | 880 | ||
Property, Plant and Equipment, net | 6,311 | 6,246 | ||
Assets, Noncurrent [Abstract] | ||||
Regulatory assets | 297 | 268 | ||
Goodwill | 607 | 607 | ||
Other intangibles | 70 | 77 | ||
Other noncurrent assets | 57 | 58 | ||
Total Other Noncurrent Assets | 1,031 | 1,010 | ||
Total Assets | 7,754 | 7,715 | ||
Current Liabilities | ||||
Short-term debt | 193 | 236 | ||
Long-term debt due within one year | 250 | 250 | ||
Accounts payable | 114 | 141 | ||
Accounts payable to affiliates | 33 | 47 | ||
Customer deposits | 27 | 27 | ||
Taxes | 13 | 14 | ||
Interest | 30 | 11 | ||
Price risk management liabilities from affiliates | 61 | 33 | ||
Regulatory liabilities | 10 | 5 | ||
Other current liabilities | 48 | 41 | ||
Total Current Liabilities | 779 | 805 | ||
Long-term Debt | 1,841 | 1,841 | ||
Deferred Credits and Other Noncurrent Liabilities | ||||
Deferred income taxes | 933 | 884 | ||
Investment tax credits | 94 | 95 | ||
Accrued pension obligations | 44 | 59 | ||
Asset retirement obligations | 202 | 208 | ||
Regulatory liabilities | 507 | 516 | ||
Other deferred credits and noncurrent liabilities | 101 | 101 | ||
Total Deferred Credits and Other Noncurrent Liabilities | 1,881 | 1,863 | ||
Commitments and Contingent Liabilities | ||||
Equity | ||||
Common stock | 308 | [4] | 308 | [4] |
Additional paid-in capital | 2,596 | 2,596 | ||
Earnings reinvested | 350 | 302 | ||
Accumulated other comprehensive income (loss) | -1 | 0 | ||
Total Stockholders' Equity | 3,253 | 3,206 | ||
Total Liabilities and Equity | $7,754 | $7,715 | ||
[1] | 780,000 shares authorized; 667,713 and 665,849 shares issued and outstanding at March 31, 2015 and December 31, 2014. | |||
[2] | 170,000 shares authorized; 66,368 shares issued and outstanding at March 31, 2015 and December 31, 2014. | |||
[3] | 75,000shares authorized; 21,294 shares issued and outstanding at March 31, 2015 andDecember 31, 2014. | |||
[4] | 80,000shares authorized;37,818 shares issued and outstanding at March 31, 2015 andDecember 31, 2014. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $47 | $46 |
Equity | ||
Common stock par value | $0.01 | $0.01 |
Common stock shares authorized | 780,000 | 780,000 |
Common stock shares issued | 667,713 | 665,849 |
Common stock shares outstanding | 667,713 | 665,849 |
PPL Electric Utilities Corp [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | 17 | 17 |
Equity | ||
Common stock no par value | ||
Common stock shares authorized | 170,000 | 170,000 |
Common stock shares issued | 66,368 | 66,368 |
Common stock shares outstanding | 66,368 | 66,368 |
LG And E And KU Energy LLC [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | 26 | 25 |
Louisville Gas And Electric Co [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | 2 | 2 |
Equity | ||
Common stock no par value | ||
Common stock shares authorized | 75,000 | 75,000 |
Common stock shares issued | 21,294 | 21,294 |
Common stock shares outstanding | 21,294 | 21,294 |
Kentucky Utilities Co [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $3 | $2 |
Equity | ||
Common stock no par value | ||
Common stock shares authorized | 80,000 | 80,000 |
Common stock shares issued | 37,818 | 37,818 |
Common stock shares outstanding | 37,818 | 37,818 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (USD $) | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested | Accumulated Other Comprehensive Loss | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | |||||||||
In Millions, except Share data in Thousands | Common Stock | Additional Paid-in Capital | Earnings Reinvested | Members Equity [Member] | Common Stock | Additional Paid-in Capital | Earnings Reinvested | Common Stock | Additional Paid-in Capital | Earnings Reinvested | Accumulated Other Comprehensive Loss | ||||||||||||||||||
Balance at beginning of period at Dec. 31, 2013 | $12,466 | $6 | $8,316 | $5,709 | ($1,565) | $2,349 | $364 | $1,340 | $645 | $1,960 | $424 | $1,364 | $172 | $3,044 | $308 | $2,505 | $230 | $1 | |||||||||||
Balance at beginning of period at Dec. 31, 2013 | 4,150 | ||||||||||||||||||||||||||||
Balance at beginning of period - shares at Dec. 31, 2013 | 630,321 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | |||||||||||||||||||||
Common stock shares issued | [1] | 1,096 | |||||||||||||||||||||||||||
Common stock issued | 30 | 30 | |||||||||||||||||||||||||||
Stock-based compensation | 6 | 6 | |||||||||||||||||||||||||||
Net income (loss) | 316 | 316 | 85 | [5] | 85 | 115 | [5] | 52 | [6] | 52 | 77 | [5] | 77 | ||||||||||||||||
Dividends, dividend equivalents and distributions | -237 | -237 | |||||||||||||||||||||||||||
Cash dividends declared on common stock | -32 | -32 | -27 | -27 | -37 | -37 | |||||||||||||||||||||||
Distributions to member | -104 | ||||||||||||||||||||||||||||
Contributions from member | 40 | ||||||||||||||||||||||||||||
Capital Contributions From Parent | 65 | 65 | 40 | 40 | |||||||||||||||||||||||||
Other comprehensive income (loss) | 136 | 136 | -1 | -1 | -1 | ||||||||||||||||||||||||
Balance at end of period at Mar. 31, 2014 | 12,717 | 6 | 8,352 | 5,788 | -1,429 | 2,467 | 364 | 1,405 | 698 | 1,985 | 424 | 1,364 | 197 | 3,123 | 308 | 2,545 | 270 | 0 | |||||||||||
Balance at end of period at Mar. 31, 2014 | 4,200 | ||||||||||||||||||||||||||||
Balance at end of period - shares at Mar. 31, 2014 | 631,417 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | |||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2014 | 13,628 | 7 | 9,433 | 6,462 | -2,274 | 2,717 | 364 | 1,603 | 750 | 2,174 | 424 | 1,521 | 229 | 3,206 | 308 | 2,596 | 302 | 0 | |||||||||||
Balance at beginning of period at Dec. 31, 2014 | 4,248 | ||||||||||||||||||||||||||||
Balance at beginning of period - shares at Dec. 31, 2014 | 665,849 | 665,849 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | |||||||||||||||||
Common stock shares issued | [1] | 1,864 | |||||||||||||||||||||||||||
Common stock issued | 54 | 54 | |||||||||||||||||||||||||||
Stock-based compensation | -7 | -7 | |||||||||||||||||||||||||||
Net income (loss) | 647 | 647 | 87 | [5] | 87 | 117 | [5] | 53 | [6] | 53 | 78 | [5] | 78 | ||||||||||||||||
Dividends, dividend equivalents and distributions | -249 | -249 | |||||||||||||||||||||||||||
Cash dividends declared on common stock | -44 | -44 | -23 | -23 | -30 | -30 | |||||||||||||||||||||||
Distributions to member | -23 | ||||||||||||||||||||||||||||
Capital Contributions From Parent | 50 | 50 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | -37 | -37 | -1 | -1 | |||||||||||||||||||||||||
Balance at end of period at Mar. 31, 2015 | 14,036 | 7 | 9,480 | 6,860 | -2,311 | 2,810 | 364 | 1,653 | 793 | 2,204 | 424 | 1,521 | 259 | 3,253 | 308 | 2,596 | 350 | -1 | |||||||||||
Balance at end of period at Mar. 31, 2015 | $4,342 | ||||||||||||||||||||||||||||
Balance at end of period - shares at Mar. 31, 2015 | 667,713 | 667,713 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | |||||||||||||||||
[1] | Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting. | ||||||||||||||||||||||||||||
[2] | Shares in thousands. All common shares of PPL Electric stock are owned by PPL. | ||||||||||||||||||||||||||||
[3] | Shares in thousands. All common shares of LG&E stock are owned by LKE. | ||||||||||||||||||||||||||||
[4] | Shares in thousands. All common shares of KU stock are owned by LKE. | ||||||||||||||||||||||||||||
[5] | Net income approximates comprehensive income. | ||||||||||||||||||||||||||||
[6] | Net income equals comprehensive income. |
Interim_Financial_Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2015 | |
Interim Financial Statements [Abstract] | |
Interim Financial Statements | 1. Interim Financial Statements |
(All Registrants) | |
Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for their related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant. | |
The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2014 is derived from that Registrant's 2014 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2014 Form 10-K. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations. | |
The classification of certain prior period amounts has been changed to conform to the presentation in the March 31, 2015 financial statements. | |
(PPL) | |
"Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income includes the activities of PPL Montana's hydroelectric generating facilities sold in the fourth quarter of 2014. See Note 8 for additional information. The Statements of Cash Flows do not separately report the cash flows of the Discontinued Operations. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
(All Registrants) | |
The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2014 Form 10-K and should be read in conjunction with those disclosures. | |
Accounts Receivable (PPL and PPL Electric) | |
In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers (including PPL EnergyPlus) at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. During the three months ended March 31, 2015, PPL Electric purchased $331 million of accounts receivable from unaffiliated third parties and $93 million from PPL EnergyPlus. During the three months ended March 31, 2014, PPL Electric purchased $362 million of accounts receivable from unaffiliated third parties and $105 million from PPL EnergyPlus. | |
Depreciation (PPL) | |
Effective January 1, 2015, after completing a review of the useful lives of its distribution network assets, WPD extended the weighted average useful lives of these assets to 69 years from 55 years. For the three months ended March 31, 2015, this change in useful lives resulted in lower depreciation of $20 million ($16 million after-tax or $0.02 per share). | |
New Accounting Guidance Adopted (All Registrants) | |
Reporting of Discontinued Operations | |
Effective January 1, 2015, the Registrants prospectively adopted accounting guidance that changes the criteria for determining what should be classified as a discontinued operation and the related presentation and disclosure requirements. A discontinued operation may include a component of an entity or a group of components of an entity, or a business activity. | |
A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results when any of the following occurs: (1) The components of an entity or group of components of an entity meets the criteria to be classified as held for sale, (2) The component of an entity or group of components of an entity is disposed of by sale, or (3) The component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). | |
The initial adoption of this guidance did not have a significant impact on the Registrants but will impact the amounts presented as discontinued operations and will enhance the related disclosure requirements related to future disposals or held for sale classifications. |
Segment_and_Related_Informatio
Segment and Related Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment and Related Information [Abstract] | |||||||||||||||||
Segment and Related Information | 3. Segment and Related Information | ||||||||||||||||
(PPL) | |||||||||||||||||
See Note 2 in PPL's 2014 Form 10-K for a discussion of reportable segments and related information. | |||||||||||||||||
In June 2014, PPL and PPL Energy Supply, which substantially represents PPL's Supply segment, executed definitive agreements with affiliates of Riverstone to combine their competitive power generation businesses into a new, stand-alone, publicly traded company named Talen Energy. The transaction is expected to occur on June 1, 2015. Upon completion of this transaction, PPL will no longer have a Supply segment. See Note 8 for additional information. | |||||||||||||||||
Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are: | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Income Statement Data | |||||||||||||||||
Revenues from external customers | |||||||||||||||||
U.K. Regulated | $ | 697 | $ | 648 | |||||||||||||
Kentucky Regulated | 899 | 934 | |||||||||||||||
Pennsylvania Regulated | 630 | 591 | |||||||||||||||
Supply (a) | 937 | -982 | |||||||||||||||
Corporate and Other | 2 | 3 | |||||||||||||||
Total | $ | 3,165 | $ | 1,194 | |||||||||||||
Intersegment electric revenues | |||||||||||||||||
Supply | $ | 9 | $ | 27 | |||||||||||||
Net Income | |||||||||||||||||
U.K. Regulated (a) | $ | 375 | $ | 206 | |||||||||||||
Kentucky Regulated | 109 | 107 | |||||||||||||||
Pennsylvania Regulated | 87 | 85 | |||||||||||||||
Supply (a) | 95 | -75 | |||||||||||||||
Corporate and Other (b) | -19 | -7 | |||||||||||||||
Total | $ | 647 | $ | 316 | |||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Balance Sheet Data | |||||||||||||||||
Assets | |||||||||||||||||
U.K. Regulated | $ | 16,275 | $ | 16,005 | |||||||||||||
Kentucky Regulated | 13,109 | 13,062 | |||||||||||||||
Pennsylvania Regulated | 7,921 | 7,785 | |||||||||||||||
Supply | 10,631 | 11,025 | |||||||||||||||
Corporate and Other (c) | 985 | 987 | |||||||||||||||
Total assets | $ | 48,921 | $ | 48,864 | |||||||||||||
(a) Includes unrealized gains and losses from economic activity. See Note 14 for additional information. | |||||||||||||||||
(b) 2015 includes most of the transaction and transition costs related to the anticipated spinoff of PPL Energy Supply. See Note 8 for additional information. | |||||||||||||||||
(c) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share | 4. Earnings Per Share | |||||||||||||||
(PPL) | ||||||||||||||||
Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock Method or the If-Converted Method, as applicable. Incremental non-participating securities that have a dilutive impact are detailed in the table below. | ||||||||||||||||
Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the period ended March 31 used in the EPS calculation are: | ||||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Income (Numerator) | ||||||||||||||||
Income from continuing operations after income taxes | $ | 647 | $ | 324 | ||||||||||||
Less amounts allocated to participating securities | 3 | 2 | ||||||||||||||
Income from continuing operations after income taxes available to PPL common shareowners - Basic | 644 | 322 | ||||||||||||||
Plus interest charges (net of tax) related to Equity Units (a) | 9 | |||||||||||||||
Income from continuing operations after income taxes available to PPL common shareowners - Diluted | $ | 644 | $ | 331 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic | ||||||||||||||||
and Diluted | $ | $ | -8 | |||||||||||||
Net income | $ | 647 | $ | 316 | ||||||||||||
Less amounts allocated to participating securities | 3 | 2 | ||||||||||||||
Net income available to PPL common shareowners - Basic | 644 | 314 | ||||||||||||||
Plus interest charges (net of tax) related to Equity Units (a) | 9 | |||||||||||||||
Net income available to PPL common shareowners - Diluted | $ | 644 | $ | 323 | ||||||||||||
Shares of Common Stock (Denominator) | ||||||||||||||||
Weighted-average shares - Basic EPS | 666,974 | 630,749 | ||||||||||||||
Add incremental non-participating securities: | ||||||||||||||||
Share-based payment awards | 1,758 | 1,511 | ||||||||||||||
Equity Units (a) | 31,679 | |||||||||||||||
Weighted-average shares - Diluted EPS | 668,732 | 663,939 | ||||||||||||||
Basic EPS | ||||||||||||||||
Available to PPL common shareowners: | ||||||||||||||||
Income from continuing operations after income taxes | $ | 0.97 | $ | 0.51 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) | -0.01 | |||||||||||||||
Net Income Available to PPL common shareowners | $ | 0.97 | $ | 0.5 | ||||||||||||
Diluted EPS | ||||||||||||||||
Available to PPL common shareowners: | ||||||||||||||||
Income from continuing operations after income taxes | $ | 0.96 | $ | 0.5 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) | -0.01 | |||||||||||||||
Net Income Available to PPL common shareowners | $ | 0.96 | $ | 0.49 | ||||||||||||
(a) In 2014, the If-Converted Method was applied to the Equity Units prior to the March 2014 settlement. | ||||||||||||||||
For the periods ended March 31, PPL issued common stock related to stock-based compensation plans as follows (in thousands): | ||||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Stock-based compensation plans (a) | 1,445 | 1,096 | ||||||||||||||
DRIP | 419 | |||||||||||||||
(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. | ||||||||||||||||
For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. | ||||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Stock options | 1,473 | 2,540 | ||||||||||||||
Performance units | 146 | |||||||||||||||
Restricted stock units | 123 |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||
Income Taxes | 5. Income Taxes | ||||||||||||||||
Reconciliations of income taxes for the periods ended March 31 are: | |||||||||||||||||
(PPL) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income from Continuing Operations Before | |||||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 320 | $ | 153 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 25 | 3 | |||||||||||||||
Valuation allowance adjustments | 3 | ||||||||||||||||
Impact of lower U.K. income tax rates | -62 | -44 | |||||||||||||||
U.S. income tax on foreign earnings - net of foreign tax credit | -1 | 11 | |||||||||||||||
Intercompany interest on U.K. financing entities | -8 | -2 | |||||||||||||||
Other | -9 | -7 | |||||||||||||||
Total increase (decrease) | -52 | -39 | |||||||||||||||
Total income taxes | $ | 268 | $ | 114 | |||||||||||||
(PPL Electric) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 51 | $ | 48 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 10 | 8 | |||||||||||||||
Other | -2 | -3 | |||||||||||||||
Total increase (decrease) | 8 | 5 | |||||||||||||||
Total income taxes | $ | 59 | $ | 53 | |||||||||||||
(LKE) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 68 | $ | 64 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 7 | 7 | |||||||||||||||
Valuation allowance adjustments | 3 | ||||||||||||||||
Other | -2 | -2 | |||||||||||||||
Total increase (decrease) | 8 | 5 | |||||||||||||||
Total income taxes | $ | 76 | $ | 69 | |||||||||||||
(LG&E) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 30 | $ | 29 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 3 | 3 | |||||||||||||||
Other | -2 | ||||||||||||||||
Total increase (decrease) | 3 | 1 | |||||||||||||||
Total income taxes | $ | 33 | $ | 30 | |||||||||||||
(KU) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 44 | $ | 43 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 4 | 4 | |||||||||||||||
Other | -1 | -1 | |||||||||||||||
Total increase (decrease) | 3 | 3 | |||||||||||||||
Total income taxes | $ | 47 | $ | 46 | |||||||||||||
Other (PPL) | |||||||||||||||||
In February 2015, PPL and the IRS Appeals division reached a settlement on the amount of PPL's refund from its open audits for the years 1998 – 2011. The settlement was required to be reviewed and approved by the Joint Committee on Taxation (JCT) before it is considered final. In April 2015, PPL was notified that the JCT approved PPL's settlement. Subject to a final determination of interest on the refund, PPL expects to record a tax benefit in the range of $20 million to $30 million in the second quarter of 2015 related to the settlement of previously unrecognized tax benefits. |
Utility_Rate_Regulation
Utility Rate Regulation | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Utility Rate Regulation [Line Items] | |||||||||||||||||||||
Utility Rate Regulation | 6. Utility Rate Regulation | ||||||||||||||||||||
(All Registrants) | |||||||||||||||||||||
The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. | |||||||||||||||||||||
PPL | PPL Electric | ||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Current Regulatory Assets: | |||||||||||||||||||||
Environmental cost recovery | $ | 10 | $ | 5 | |||||||||||||||||
Gas supply clause | 1 | 15 | |||||||||||||||||||
Fuel adjustment clause | 4 | 4 | |||||||||||||||||||
Transmission service charge | 6 | $ | 6 | ||||||||||||||||||
Other | 8 | 7 | $ | 3 | 6 | ||||||||||||||||
Total current regulatory assets | $ | 23 | $ | 37 | $ | 3 | $ | 12 | |||||||||||||
Noncurrent Regulatory Assets: | |||||||||||||||||||||
Defined benefit plans | $ | 705 | $ | 720 | $ | 367 | $ | 372 | |||||||||||||
Taxes recoverable through future rates | 317 | 316 | 317 | 316 | |||||||||||||||||
Storm costs | 116 | 124 | 42 | 46 | |||||||||||||||||
Unamortized loss on debt | 76 | 77 | 48 | 49 | |||||||||||||||||
Interest rate swaps | 182 | 122 | |||||||||||||||||||
Accumulated cost of removal of utility plant | 117 | 114 | 117 | 114 | |||||||||||||||||
AROs | 87 | 79 | |||||||||||||||||||
Other | 10 | 10 | |||||||||||||||||||
Total noncurrent regulatory assets | $ | 1,610 | $ | 1,562 | $ | 891 | $ | 897 | |||||||||||||
Current Regulatory Liabilities: | |||||||||||||||||||||
Generation supply charge | $ | 26 | $ | 28 | $ | 26 | $ | 28 | |||||||||||||
Demand side management | 13 | 2 | |||||||||||||||||||
Gas supply clause | 6 | 6 | |||||||||||||||||||
Transmission formula rate | 49 | 42 | 49 | 42 | |||||||||||||||||
Storm damage expense | 7 | 3 | 7 | 3 | |||||||||||||||||
Gas line tracker | 2 | 3 | |||||||||||||||||||
Other | 6 | 7 | 3 | 3 | |||||||||||||||||
Total current regulatory liabilities | $ | 109 | $ | 91 | $ | 85 | $ | 76 | |||||||||||||
Noncurrent Regulatory Liabilities: | |||||||||||||||||||||
Accumulated cost of removal of utility plant | $ | 695 | $ | 693 | |||||||||||||||||
Coal contracts (a) | 49 | 59 | |||||||||||||||||||
Power purchase agreement - OVEC (a) | 90 | 92 | |||||||||||||||||||
Net deferred tax assets | 25 | 26 | |||||||||||||||||||
Act 129 compliance rider | 26 | 18 | $ | 26 | $ | 18 | |||||||||||||||
Defined benefit plans | 16 | 16 | |||||||||||||||||||
Interest rate swaps | 84 | 84 | |||||||||||||||||||
Other | 2 | 4 | |||||||||||||||||||
Total noncurrent regulatory liabilities | $ | 987 | $ | 992 | $ | 26 | $ | 18 | |||||||||||||
LKE | LG&E | KU | |||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Current Regulatory Assets: | |||||||||||||||||||||
Environmental cost recovery | $ | 10 | $ | 5 | $ | 7 | $ | 4 | $ | 3 | $ | 1 | |||||||||
Gas supply clause | 1 | 15 | 1 | 15 | |||||||||||||||||
Fuel adjustment clause | 4 | 4 | 4 | 2 | 2 | ||||||||||||||||
Other | 5 | 1 | 5 | 1 | |||||||||||||||||
Total current regulatory assets | $ | 20 | $ | 25 | $ | 12 | $ | 21 | $ | 8 | $ | 4 | |||||||||
Noncurrent Regulatory Assets: | |||||||||||||||||||||
Defined benefit plans | $ | 338 | $ | 348 | $ | 208 | $ | 215 | $ | 130 | $ | 133 | |||||||||
Storm costs | 74 | 78 | 41 | 43 | 33 | 35 | |||||||||||||||
Unamortized loss on debt | 28 | 28 | 18 | 18 | 10 | 10 | |||||||||||||||
Interest rate swaps | 182 | 122 | 121 | 89 | 61 | 33 | |||||||||||||||
AROs | 87 | 79 | 30 | 28 | 57 | 51 | |||||||||||||||
Other | 10 | 10 | 4 | 4 | 6 | 6 | |||||||||||||||
Total noncurrent regulatory assets | $ | 719 | $ | 665 | $ | 422 | $ | 397 | $ | 297 | $ | 268 | |||||||||
Current Regulatory Liabilities: | |||||||||||||||||||||
Demand side management | $ | 13 | $ | 2 | $ | 5 | $ | 1 | $ | 8 | $ | 1 | |||||||||
Gas supply clause | 6 | 6 | 6 | 6 | |||||||||||||||||
Gas line tracker | 2 | 3 | 2 | 3 | |||||||||||||||||
Other | 3 | 4 | 1 | 2 | 4 | ||||||||||||||||
Total current regulatory liabilities | $ | 24 | $ | 15 | $ | 14 | $ | 10 | $ | 10 | $ | 5 | |||||||||
Noncurrent Regulatory Liabilities: | |||||||||||||||||||||
Accumulated cost of removal | |||||||||||||||||||||
of utility plant | $ | 695 | $ | 693 | $ | 304 | $ | 302 | $ | 391 | $ | 391 | |||||||||
Coal contracts (a) | 49 | 59 | 21 | 25 | 28 | 34 | |||||||||||||||
Power purchase agreement - OVEC (a) | 90 | 92 | 62 | 63 | 28 | 29 | |||||||||||||||
Net deferred tax assets | 25 | 26 | 24 | 24 | 1 | 2 | |||||||||||||||
Defined benefit plans | 16 | 16 | 16 | 16 | |||||||||||||||||
Interest rate swaps | 84 | 84 | 42 | 42 | 42 | 42 | |||||||||||||||
Other | 2 | 4 | 1 | 2 | 1 | 2 | |||||||||||||||
Total noncurrent regulatory liabilities | $ | 961 | $ | 974 | $ | 454 | $ | 458 | $ | 507 | $ | 516 | |||||||||
(a) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. | |||||||||||||||||||||
Regulatory Matters | |||||||||||||||||||||
U. K. Activities (PPL) | |||||||||||||||||||||
RIIO-ED1 | |||||||||||||||||||||
On April 1, 2015, the RIIO-ED1 eight-year price control period commenced for WPD’s four DNOs. See "Item 1. Business - Segment Information - U. K. Regulated Segment" of PPL's 2014 Form 10-K for additional information on RIIO-ED1. | |||||||||||||||||||||
Ofgem Review of Line Loss Calculation | |||||||||||||||||||||
In March 2014, Ofgem issued its final decision on the DPCR4 line loss incentives and penalties mechanism. As a result, during the first quarter of 2014 WPD increased its liability by $65 million for over-recovery of line losses with a reduction to "Utility" revenues on the Statement of Income. The liability at March 31, 2015 of $97 million will be refunded to customers from April 1, 2015 through March 31, 2019. | |||||||||||||||||||||
Kentucky Activities (PPL, LKE, LG&E and KU) | |||||||||||||||||||||
Rate Case Proceedings | |||||||||||||||||||||
On November 26, 2014, LG&E and KU filed requests with the KPSC for increases in annual base electricity rates for LG&E's electric and gas operations and KU's electric operations. On April 20, 2015, LG&E and KU, and the other parties to the proceeding, filed a unanimous settlement agreement with the KPSC. Among other things, the proposed settlement provides for increases in the annual revenue requirements associated with KU base electric rates of $125 million and LG&E base gas rates of $7 million. The annual revenue requirement associated with base electric rates at LG&E will not increase. The settlement did not establish a specific return on equity with respect to the base rates, however an authorized 10% return on equity will be utilized in the ECR and GLT mechanisms. The settlement agreement provides for deferred recovery of costs associated with Green River Units 3 and 4 through their retirement. The new regulatory asset will be amortized over three years. The settlement also provides regulatory asset treatment for the difference between pension expense currently booked in accordance with LG&E and KU’s pension accounting policy and such an expense using a 15 year amortization period for actuarial gains and losses. The proposed settlement remains subject to KPSC approval. If approved, the new rates and all elements of the settlement would be effective July 1, 2015. | |||||||||||||||||||||
Pennsylvania Activities (PPL and PPL Electric) | |||||||||||||||||||||
Rate Case Proceeding | |||||||||||||||||||||
On March 31, 2015, PPL Electric filed a request with the PUC for an increase in its annual distribution revenue requirement of approximately $167.5 million. The proposal would result in a rate increase of 3.9% on a total bill basis and is expected to become effective on January 1, 2016. PPL Electric's application includes a request for an authorized return-on-equity of 10.95%. The application is based on a fully projected future test year of January 1, 2016 through December 31, 2016. PPL Electric cannot predict the outcome of this proceeding. | |||||||||||||||||||||
Distribution System Improvement Charge (DSIC) | |||||||||||||||||||||
Act 11 authorizes the PUC to approve two specific ratemaking mechanisms: the use of a fully projected future test year in base rate proceedings and, subject to certain conditions, the use of a DSIC. Such alternative ratemaking procedures and mechanisms provide opportunity for accelerated cost-recovery and, therefore, are important to PPL Electric as it is in a period of significant capital investment to maintain and enhance the reliability of its delivery system, including the replacement of aging distribution assets. | |||||||||||||||||||||
On March 31, 2015, PPL Electric filed a petition requesting a waiver of the DSIC cap of 5% of billed revenues and approval to increase the maximum allowable DSIC from 5% to 7.5% for service rendered after January 1, 2016. PPL Electric filed the petition concurrently with its 2015 rate case and is requesting that the PUC consolidate these two proceedings. PPL Electric cannot predict the outcome of this proceeding. | |||||||||||||||||||||
Storm Damage Expense Rider (SDER) | |||||||||||||||||||||
In its December 28, 2012 final rate case order, the PUC directed PPL Electric to file a proposed SDER. The SDER is a reconcilable automatic adjustment clause under which PPL Electric annually will compare actual storm costs to storm costs allowed in base rates and refund or recoup any differences from customers. In March 2013, PPL Electric filed its proposed SDER with the PUC and, as part of that filing, requested recovery of the 2012 qualifying storm costs related to Hurricane Sandy. PPL Electric proposed that the SDER become effective January 1, 2013 at a zero rate with qualifying storm costs incurred in 2013 and the 2012 Hurricane Sandy costs included in rates effective January 1, 2014. In April 2014, the PUC issued a final order approving the SDER with a January 1, 2015 effective date and initially including actual storm costs compared to collections for December 2013 through November 2014. As a result, PPL Electric reduced its regulatory liability by $12 million in March 2014. Also, as part of the April 2014 order, PPL Electric was authorized to recover Hurricane Sandy storm damage costs through the SDER of $29 million over a three-year period beginning January 1, 2015. | |||||||||||||||||||||
On June 20, 2014, the Office of Consumer Advocate (OCA) filed a petition with the Commonwealth Court of Pennsylvania requesting that the Court reverse and remand the April 2014 order permitting PPL Electric to establish the SDER. This matter remains pending before the Commonwealth Court. On January 15, 2015, the PUC issued a final order closing an investigation related to an OCA complaint concerning PPL Electric's October 2014 preliminary SDER calculation and modified the effective date of the SDER to February 1, 2015. | |||||||||||||||||||||
Smart Meter Rider (SMR) | |||||||||||||||||||||
Act 129 requires installation of smart meters for new construction, upon the request of consumers and at their cost, or on a depreciation schedule not exceeding 15 years. Under Act 129, EDCs are able to recover the costs of providing smart metering technology. All of PPL Electric's metered customers currently have advanced meters installed at their service locations capable of many of the functions required under Act 129. PPL Electric conducted pilot projects and technical evaluations of its current advanced metering technology and concluded that the current technology does not meet all of the requirements of Act 129. PPL Electric recovered the cost of its evaluations through a cost recovery mechanism, the Smart Meter Rider. In August 2013, PPL Electric filed with the PUC an annual report describing the actions it was taking under its Smart Meter Plan during 2013 and its planned actions for 2014. PPL Electric also submitted revised SMR charges that became effective January 1, 2014. On June 30, 2014, PPL Electric filed its final Smart Meter Plan with the PUC. In that plan, PPL Electric proposes to replace all of its current meters with advanced meters that meet the Act 129 requirements. Full deployment of the new meters is expected to be complete by the end of 2019. The total cost of the project is estimated to be approximately $450 million. PPL Electric proposes to recover these costs through the SMR which the PUC previously has approved for recovery of such costs. On April 30, 2015, the Administrative Law Judge assigned by the PUC to review PPL Electric's Smart Meter Plan issued a recommended decision approving the plan with minor modifications. The recommended decision is subject to final approval by and remains pending before the PUC. | |||||||||||||||||||||
Federal Matters | |||||||||||||||||||||
FERC Wholesale Formula Rates (LKE and KU) | |||||||||||||||||||||
In September 2013, KU filed an application with the FERC to adjust the formula rate under which KU provides wholesale requirements power sales to 12 municipal customers. Among other changes, the application requests an amended formula whereby KU would charge cost-based rates with a subsequent true-up to actual costs, replacing the current formula which does not include a true-up. KU's application proposed an authorized return on equity of 10.7%. Certain elements, including the new formula rate, became effective April 23, 2014, subject to refund. In April 2014, nine municipalities submitted notices of termination, under the original notice period provisions, to cease taking power under the wholesale requirements contracts. Such terminations are to be effective in 2019, except in the case of one municipality with a 2017 effective date. In addition, a tenth municipality which has a previously settled termination date of 2016 has given notice that it will transfer service in June 2015. In July 2014, KU agreed on settlement terms with the two municipal customers that did not provide termination notices and filed the settlement proposal with the FERC for its approval. In August 2014, the FERC issued an order on the interim settlement agreement allowing the proposed rates to become effective pending a final order. If approved, the settlement agreement will resolve the rate case with respect to these two municipalities, including an authorized return on equity of 10% or the return on equity awarded to other parties in this case, whichever is lower. Also in July 2014, KU made a contractually required filing with the FERC that addressed certain rate recovery matters affecting the nine terminating municipalities during the remaining term of their contracts. KU and the terminating municipalities continue settlement discussions in this proceeding. KU cannot currently predict the outcome of its FERC applications regarding its wholesale power agreements with the municipalities. |
Financing_Activities
Financing Activities | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Financing Activities [Abstract] | |||||||||||||||||||||||||||
Financing Activities | 7. Financing Activities | ||||||||||||||||||||||||||
Credit Arrangements and Short-term Debt | |||||||||||||||||||||||||||
(All Registrants) | |||||||||||||||||||||||||||
The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts borrowed below are recorded as "Short-term debt" on the Balance Sheets. The following credit facilities were in place at: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Letters of | Letters of | ||||||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||||||
and | and | ||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||
Expiration | Paper | Unused | Paper | ||||||||||||||||||||||||
Date | Capacity | Borrowed | Issued | Capacity | Borrowed | Issued | |||||||||||||||||||||
PPL | |||||||||||||||||||||||||||
U.K. | |||||||||||||||||||||||||||
WPD Ltd. | |||||||||||||||||||||||||||
Syndicated Credit Facility | Dec. 2016 | £ | 210 | £ | 130 | £ | 80 | £ | 103 | ||||||||||||||||||
WPD (South West) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 245 | 245 | ||||||||||||||||||||||||
WPD (East Midlands) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 300 | 147 | 153 | 64 | ||||||||||||||||||||||
WPD (West Midlands) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 300 | 300 | ||||||||||||||||||||||||
Uncommitted Credit Facilities | 65 | £ | 5 | 60 | £ | 5 | |||||||||||||||||||||
Total U.K. Credit Facilities (a) | £ | 1,120 | £ | 277 | £ | 5 | £ | 838 | £ | 167 | £ | 5 | |||||||||||||||
U.S. | |||||||||||||||||||||||||||
PPL Capital Funding | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 300 | $ | 300 | ||||||||||||||||||||||
Syndicated Credit Facility | Nov. 2018 | 300 | 300 | ||||||||||||||||||||||||
Bilateral Credit Facility | Mar. 2016 | 150 | $ | 32 | 118 | $ | 21 | ||||||||||||||||||||
Uncommitted Credit Facility | 65 | 1 | 64 | 1 | |||||||||||||||||||||||
Total PPL Capital Funding Credit Facilities | $ | 815 | $ | 33 | $ | 782 | $ | 22 | |||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Nov. 2017 | $ | 3,000 | $ | 600 | $ | 267 | $ | 2,133 | $ | 630 | $ | 121 | ||||||||||||||
PPL Electric | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 300 | $ | 86 | $ | 214 | $ | 1 | ||||||||||||||||||
LKE | |||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Oct. 2018 | $ | 75 | $ | 75 | $ | 75 | ||||||||||||||||||||
LG&E | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 500 | $ | 216 | $ | 284 | $ | 264 | ||||||||||||||||||
KU | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 400 | $ | 193 | $ | 207 | $ | 236 | ||||||||||||||||||
Letter of Credit Facility | Oct. 2017 | 198 | 198 | 198 | |||||||||||||||||||||||
Total KU Credit Facilities | $ | 598 | $ | 391 | $ | 207 | $ | 434 | |||||||||||||||||||
(a) WPD Ltd.'s amounts borrowed at March 31, 2015 and December 31, 2014 were USD-denominated borrowings of $200 million and $161 million, which bore interest at 1.87% and 1.86%. WPD (East Midlands) amounts borrowed at March 31, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $226 million and $100 million, which bore interest at 1.00% for both periods. At March 31, 2015, the unused capacity under the U.K. credit facilities was $1.3 billion. | |||||||||||||||||||||||||||
(b) At March 31, 2015, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.12% and 1.68%. At December 31, 2014, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.05% and 1.67%. | |||||||||||||||||||||||||||
(PPL) | |||||||||||||||||||||||||||
PPL Energy Supply’s Letter of Credit Facility and Uncommitted Credit Facilities that existed at December 31, 2014 have either expired or matured during the first quarter of 2015. Any previously issued letters of credit under these facilities were either terminated or reissued under the PPL Energy Supply Syndicated Credit Facility at March 31, 2015. | |||||||||||||||||||||||||||
(All Registrants) | |||||||||||||||||||||||||||
PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs, as necessary. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's Syndicated Credit Facility. The following commercial paper programs were in place at: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Weighted - | Commercial | Weighted - | Commercial | ||||||||||||||||||||||||
Average | Paper | Unused | Average | Paper | |||||||||||||||||||||||
Interest Rate | Capacity | Issuances | Capacity | Interest Rate | Issuances | ||||||||||||||||||||||
PPL Electric | 0.57% | $ | 300 | $ | 85 | $ | 215 | ||||||||||||||||||||
LG&E | 0.63% | 350 | 216 | 134 | 0.42% | $ | 264 | ||||||||||||||||||||
KU | 0.62% | 350 | 193 | 157 | 0.49% | 236 | |||||||||||||||||||||
Total | $ | 1,000 | $ | 494 | $ | 506 | $ | 500 | |||||||||||||||||||
(PPL) | |||||||||||||||||||||||||||
PPL Energy Supply maintains a $500 million Facility Agreement expiring June 2017, which provides PPL Energy Supply the ability to request up to $500 million of committed letter of credit capacity at fees to be agreed upon at the time of each request, based on certain market conditions. At March 31, 2015, PPL Energy Supply had not requested any capacity for the issuance of letters of credit under this arrangement. | |||||||||||||||||||||||||||
PPL Energy Supply, PPL EnergyPlus, PPL Montour and PPL Brunner Island maintain an $800 million secured energy marketing and trading facility, whereby PPL EnergyPlus will receive credit to be applied to satisfy collateral posting obligations related to its energy marketing and trading activities with counterparties participating in the facility. The credit amount is guaranteed by PPL Energy Supply, PPL Montour and PPL Brunner Island. PPL Montour and PPL Brunner Island have granted liens on their respective generating facilities to secure any amount they may owe under their guarantees. The facility expires in November 2019, but is subject to automatic one-year renewals under certain conditions. There were $88 million of secured obligations outstanding under this facility at March 31, 2015. | |||||||||||||||||||||||||||
(LKE) | |||||||||||||||||||||||||||
See Note 11 for discussion of intercompany borrowings. | |||||||||||||||||||||||||||
(PPL) | |||||||||||||||||||||||||||
At-the-Market Stock Offering Program | |||||||||||||||||||||||||||
On February 26, 2015, PPL entered into two separate equity distribution agreements, pursuant to which PPL may sell, from time to time, up to an aggregate of $500 million of its common stock. During the period ended March 31, 2015, no sales of common stock under the equity distribution agreements were made. | |||||||||||||||||||||||||||
Distributions | |||||||||||||||||||||||||||
In February 2015, PPL declared its quarterly common stock dividend, payable April 1, 2015, at 37.25 cents per share (equivalent to $1.49 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors. |
Acquisitions_Development_and_D
Acquisitions, Development and Divestitures | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Acquisitions Development And Divestitures [Abstract] | |||||||||||||
Acquisitions, Development and Divestitures | 8. Acquisitions, Development and Divestitures | ||||||||||||
(All Registrants) | |||||||||||||
The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with the projects, sell, cancel or expand them, execute tolling agreements or pursue other options. Any resulting transactions may impact future financial results. See Note 8 in the 2014 Form 10-K for additional information. | |||||||||||||
(PPL) | |||||||||||||
Divestitures | |||||||||||||
Anticipated Spinoff of PPL Energy Supply | |||||||||||||
In June 2014, PPL and PPL Energy Supply executed definitive agreements with affiliates of Riverstone to combine their competitive power generation businesses into a new, stand-alone, publicly traded company named Talen Energy. Under the terms of the agreements, at closing, PPL will spin off to PPL shareowners a newly formed entity, Holdco, which at such time will own all of the membership interests of PPL Energy Supply and all of the common stock of Talen Energy. Immediately following the spinoff, Holdco will merge with a special purpose subsidiary of Talen Energy, with Holdco continuing as the surviving company to the merger and as a wholly owned subsidiary of Talen Energy and the sole owner of PPL Energy Supply. Substantially contemporaneous with the spinoff and merger, RJS Power will be contributed by its owners to become a subsidiary of Talen Energy. Following completion of these transactions, PPL shareowners will own 65% of Talen Energy and affiliates of Riverstone will own 35%. PPL will have no continuing ownership interest in, control of, or affiliation with Talen Energy. The transaction is intended to be tax-free to PPL and its shareowners for U.S. federal income tax purposes and is subject to customary closing conditions, including receipt of required regulatory approvals from the NRC, FERC, DOJ and PUC, all of which were received by mid-April 2015. In addition, there must be available, subject to certain conditions, at least $1 billion of undrawn credit capacity under a revolving credit or similar facility of Talen Energy or one or more of its subsidiaries. Any letters of credit or other credit support measures posted in connection with energy marketing and trading transactions at the time of the spinoff are excluded from this calculation. | |||||||||||||
In connection with the FERC approval, PPL and RJS Power agreed that within 12 months after closing of the transaction, Talen Energy will divest approximately 1,300 MW of generating assets in one of two groups of assets (from PPL Energy Supply’s existing portfolio, this includes either the Holtwood and Wallenpaupack hydroelectric facilities or the Ironwood facility), and limit PJM energy market offers from assets it would retain in the other group to cost-based offers. | |||||||||||||
On April 29, 2015, PPL's Board of Directors declared the distribution of Holdco to PPL's shareowners of record on May 20, 2015, with the spinoff to occur on June 1, 2015. Based on the number of shares of PPL common stock outstanding at April 29, 2015, the distribution ratio is expected to be approximately 0.125 shares of Talen common stock for each share of PPL common stock. The final ratio will be determined after the record date. The spinoff will have no effect on the number of PPL common shares owned by PPL shareowners or the number of shares of PPL common stock outstanding. | |||||||||||||
Following the announcement of the transaction to form Talen Energy, efforts were initiated to identify the appropriate staffing for Talen Energy and for PPL and its subsidiaries following completion of the spinoff. Organizational plans were substantially completed in 2014. The new organizational plans identified the need to resize and restructure the organizations and as a result, in 2014, estimated charges for employee separation benefits were recorded. See Note 8 in the 2014 Form 10-K for additional information. The separation benefits include cash severance compensation, lump sum COBRA reimbursement payments and outplacement services. Most separations and payment of separation benefits are expected to be completed by the end of 2015. At March 31, 2015 and December 31, 2014, the recorded liabilities related to the separation benefits were $19 million and $30 million, which are included in “Other current liabilities” on the Balance Sheets. | |||||||||||||
Additional employee-related costs to be incurred primarily include accelerated stock-based compensation and pro-rated performance-based cash incentive and stock-based compensation awards, primarily for PPL Energy Supply employees and for PPL employees who have become PPL Energy Supply employees in connection with the transaction. These costs will be recognized at the spinoff closing date. PPL estimates these additional costs will be in the range of $30 million to $40 million. | |||||||||||||
PPL recorded $6 million of third-party costs during the three months ended March 31, 2015 related to this transaction. Of these costs, $2 million were primarily for legal and accounting fees to facilitate the transaction, and are recorded in "Other Income (Expense) - net" on the Statement of Income. An additional $4 million of consulting and other costs were incurred to ready the new Talen Energy organization and reconfigure the remaining PPL service functions. These costs are recorded in "Other operation and maintenance" on the Statement of Income. PPL recorded $27 million of third-party costs in 2014 related to this transaction. PPL currently estimates a range of total third-party costs that will ultimately be incurred of between $60 million and $70 million. | |||||||||||||
The assets and liabilities of PPL’s Supply segment will continue to be classified as "held and used" on PPL's Balance Sheet until the closing of the transaction, at which time the operations of the Supply segment will be classified as discontinued operations. At the close of the transaction, unamortized losses on PPL interest rate swaps recorded in AOCI and designated as hedges of PPL Energy Supply's future interest payments will be reclassified into earnings and reflected in discontinued operations. The amount of these unamortized losses deferred in AOCI at March 31, 2015 was $55 million after-tax. | |||||||||||||
In conducting its annual goodwill impairment assessment in the fourth quarter of 2014 for its Supply segment reporting unit, PPL determined that the estimated fair value of the Supply segment exceeded its carrying value and no impairment was recognized. PPL had not identified any indicators of impairment as of March 31, 2015, but cannot predict whether an impairment loss will be recorded at the spinoff date. An impairment loss would be recognized by PPL at the spinoff date if the aggregate carrying amount of the Supply segment's assets and liabilities exceed their aggregate fair value at that date and would be reflected in discontinued operations. Upon completion of this transaction, PPL will no longer have a Supply segment. | |||||||||||||
Discontinued Operations | |||||||||||||
Montana Hydro Sale | |||||||||||||
In November 2014, PPL Montana completed the sale to NorthWestern of 633 MW of hydroelectric generating facilities located in Montana for approximately $900 million in cash. The proceeds will remain with PPL and not transfer to Talen Energy as a result of the spinoff. The sale included 11 hydroelectric power facilities and related assets, included in the Supply segment. | |||||||||||||
Following are the components of Discontinued Operations in the Statement of Income for the three months ended March 31. | |||||||||||||
2014 | |||||||||||||
Operating revenues | $ | 29 | |||||||||||
Interest expense (a) | 2 | ||||||||||||
Income (loss) before income taxes (b) | -10 | ||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) (b) | -8 | ||||||||||||
(a) Represents allocated interest expense based upon the discontinued operations share of the net assets of PPL Energy Supply. | |||||||||||||
(b) Includes an impairment charge related to the Kerr Dam Project. See Note 13 for additional information. | |||||||||||||
Development | |||||||||||||
Future Capacity Needs (PPL, LKE, LG&E and KU) | |||||||||||||
Construction activity is nearing completion and testing is in progress on the previously announced NGCC unit, Cane Run Unit 7, scheduled to be operational in the second quarter of 2015. On March 31, 2015, LG&E retired an older coal-fired generating unit at the Cane Run plant and anticipates retiring the remaining two coal-fired units at the Cane Run plant in the third quarter of 2015. There were no significant losses related to this retirement. | |||||||||||||
In October 2013, LG&E and KU announced plans for a 10 MW solar generation facility to be operational in 2016 at a cost of approximately $36 million. In December 2014, a final order was issued by the KPSC approving the request to construct the solar generating facility at E.W. Brown. |
Defined_Benefits
Defined Benefits | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Defined Benefits [Abstract] | |||||||||||||||||||||
Defined Benefits | 9. Defined Benefits | ||||||||||||||||||||
(PPL, LKE and LG&E) | |||||||||||||||||||||
Certain net periodic defined benefit costs are applied to accounts that are further distributed between capital and expense, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL, and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended March 31: | |||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
U.S. | U.K. | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
PPL | |||||||||||||||||||||
Service cost | $ | 32 | $ | 26 | $ | 20 | $ | 18 | $ | 4 | $ | 3 | |||||||||
Interest cost | 59 | 59 | 79 | 88 | 7 | 8 | |||||||||||||||
Expected return on plan assets | -79 | -74 | -131 | -130 | -7 | -6 | |||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 5 | |||||||||||||||||||
Actuarial (gain) loss | 25 | 7 | 39 | 33 | |||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 39 | $ | 23 | $ | 7 | $ | 9 | $ | 4 | $ | 5 | |||||||||
LKE | |||||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 1 | $ | 1 | |||||||||||||
Interest cost | 17 | 17 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | -22 | -20 | -1 | -1 | |||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | 1 | |||||||||||||||||
Actuarial (gain) loss | 8 | 3 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 12 | $ | 7 | $ | 3 | $ | 3 | |||||||||||||
LG&E | |||||||||||||||||||||
Interest cost | $ | 3 | $ | 4 | |||||||||||||||||
Expected return on plan assets | -5 | -5 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 1 | 1 | |||||||||||||||||||
Actuarial (gain) loss | 3 | 1 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 1 | |||||||||||||||||
(PPL Electric, LG&E and KU) | |||||||||||||||||||||
In addition to the specific plans it sponsors, LG&E is allocated costs of defined benefit plans sponsored by LKE based on its participation in those plans, which management believes are reasonable. PPL Electric and KU do not directly sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU. | |||||||||||||||||||||
Three Months | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
PPL Electric | $ | 8 | $ | 5 | |||||||||||||||||
LG&E | 3 | 2 | |||||||||||||||||||
KU | 5 | 3 |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Commitments and Contingencies [Abstract] | |||||||
Commitments and Contingencies | 10. Commitments and Contingencies | ||||||
(PPL) | |||||||
All commitments and contingencies related to PPL Energy Supply and its subsidiaries will remain with PPL Energy Supply and its subsidiaries at the spinoff date without recourse, except as otherwise provided in the definitive agreements entered into in connection with the spinoff of Talen Energy. | |||||||
Energy Purchase Commitments | |||||||
(PPL Electric) | |||||||
See Note 11 for information on the power supply agreements between PPL EnergyPlus and PPL Electric. | |||||||
Legal Matters | |||||||
(All Registrants) | |||||||
PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted. | |||||||
WKE Indemnification (PPL and LKE) | |||||||
See footnote (f) to the table in "Guarantees and Other Assurances" below for information on an LKE indemnity relating to its former WKE lease, including related legal proceedings. | |||||||
(PPL) | |||||||
Sierra Club Litigation | |||||||
On March 6, 2013, the Sierra Club and MEIC filed a complaint in the U.S. District Court, District of Montana, Billings Division against PPL Montana and the other Colstrip Steam Electric Station (Colstrip) co-owners: Avista Corporation, Puget Sound Energy, Portland General Electric Company, NorthWestern and PacifiCorp. PPL Montana operates Colstrip on behalf of the co-owners. The complaint alleges certain violations of the Clean Air Act, including New Source Review, Title V and opacity requirements and listed 39 separate claims for relief. The complaint requests injunctive relief and civil penalties on average of $36,000 per day per violation, including a request that the owners remediate environmental damage and that $100,000 of the civil penalties be used for beneficial mitigation projects. | |||||||
In July 2013, the Sierra Club and MEIC filed an additional Notice of Intent to Sue, identifying additional plant projects that are alleged not to be in compliance with the Clean Air Act and, in September 2013, filed an amended complaint. The amended complaint dropped all claims regarding pre-2001 plant projects, as well as the plaintiffs' Title V and opacity claims. It did, however, add claims with respect to a number of post-2000 plant projects, which effectively increased the number of projects subject to the litigation by about 40. PPL Montana and the other Colstrip owners filed a motion to dismiss the amended complaint in October 2013. In May 2014, the court dismissed the plaintiffs' independent Best Available Control Technology claims and their Prevention of Significant Deterioration (PSD) claims for three projects, but denied the owners' motion to dismiss the plaintiffs' other PSD claims on statute of limitation grounds. On August 27, 2014, the Sierra Club and MEIC filed a second amended complaint. This complaint includes the same causes of action articulated in the first amended complaint, but alleges those claims in regard to only eight projects at the plant between 2001 and 2013. On September 26, 2014, the Colstrip owners filed an answer to the second amended complaint. Discovery has been completed. In April 2015, the plaintiffs indicated they intend to pursue claims related to only four of the remaining projects. In January 2015, trial as to liability in this matter was rescheduled to November 16, 2015. A trial date with respect to remedies, if there is a finding of liability, has not been scheduled. PPL believes it and the other co-owners have numerous defenses to the allegations set forth in this complaint and will vigorously assert the same. PPL cannot predict the ultimate outcome of this matter at this time. | |||||||
Notice of Intent to File Suit | |||||||
In October 2014, PPL Energy Supply received a notice letter from the Chesapeake Bay Foundation (CBF) alleging violations of the Clean Water Act and Pennsylvania Clean Streams Law at the Brunner Island generation plant. The letter was sent to PPL Brunner Island and the PADEP and is intended to provide notice of the alleged violations and CBF's intent to file suit in Federal court after expiration of the 60 day statutory notice period. Among other things, the letter alleges that PPL Brunner Island failed to comply with the terms of its National Pollutant Discharge Elimination System permit and associated regulations related to the application of nutrient credits to the facility's discharges of nitrogen into the Susquehanna River. The letter also alleges that PADEP has failed to ensure that credits generated from nonpoint source pollution reduction activities that PPL Brunner Island applies to its discharges meet the eligibility and certification requirements under PADEP's nutrient trading program regulations. If a court-approved settlement cannot be reached, CBF plans to seek injunctive relief, monetary penalties, fees and costs of litigation. PPL cannot predict the outcome of this matter. | |||||||
Proposed Legislation - Pacific Northwest | |||||||
In the first quarter of 2015, legislation was proposed in the State of Oregon to eliminate, over time, the sale of electricity in Oregon from coal-fired generating facilities, and in the State of Washington to provide a means of cost recovery to utility owners of coal-fired generating facilities who commit to retire such facilities. Both proposals are in early stages of consideration and PPL cannot predict whether any legislation seeking to achieve the objectives of the Oregon or Washington legislation will be enacted. Were such legislation to be enacted as proposed, such laws, either individually or collectively, would not be expected to have a material adverse effect on PPL’s financial condition or results of operation. | |||||||
(PPL, LKE and LG&E) | |||||||
Cane Run Environmental Claims | |||||||
In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky alleging violations of the Clean Air Act and RCRA. In addition, these plaintiffs assert common law claims of nuisance, trespass and negligence. These plaintiffs seek injunctive relief and civil penalties, plus costs and attorney fees, for the alleged statutory violations. Under the common law claims, these plaintiffs seek monetary compensation and punitive damages for property damage and diminished property values for a class consisting of residents within four miles of the plant. In their individual capacities, these plaintiffs seek compensation for alleged adverse health effects. In response to a motion to dismiss filed by PPL and LG&E, in July 2014, the court dismissed the plaintiffs' RCRA claims and all but one of its Clean Air Act claims, but declined to dismiss their common law tort claims. Upon motion of LG&E and PPL, the district court certified for appellate review the issue of whether the state common law claims are preempted by federal statute. In December 2014, the U.S. Court of Appeals for the Sixth Circuit issued an order granting appellate review regarding the above matter and such issues as may appropriately be presented by the parties and determined by the court. PPL, LKE and LG&E cannot predict the outcome of this matter or the potential impact on operations of the Cane Run plant. LG&E retired one coal-fired unit at the Cane Run plant in March 2015 and anticipates retiring the remaining two coal-fired units at the Cane Run plant in the third quarter of 2015. | |||||||
Mill Creek Environmental Claims | |||||||
In May 2014, the Sierra Club filed a citizen suit against LG&E in the U.S. District Court for the Western District of Kentucky for alleged violations of the Clean Water Act. The Sierra Club alleges that various discharges at the Mill Creek plant constitute violations of the plant's water discharge permit. The Sierra Club seeks civil penalties, injunctive relief, plus costs and attorney's fees. The parties have filed various cross-motions for summary judgment which are pending before the court. PPL, LKE and LG&E cannot predict the outcome of this matter or the potential impact on the operations of the Mill Creek plant but believe the plant is operating in compliance with the permits. | |||||||
Regulatory Issues | |||||||
(All Registrants) | |||||||
See Note 6 for information on regulatory matters related to utility rate regulation. | |||||||
(PPL and PPL Electric) | |||||||
New Jersey Capacity Legislation | |||||||
In January 2011, New Jersey enacted a law (the Act) that PPL believes would intervene in the wholesale capacity market to create incentives for the development of new, in-state electricity generation facilities even when, under the FERC-approved PJM economic model, such new generation would not be economic. The Act could depress capacity prices in PJM in the short-term, impacting PPL Energy Supply's revenues, and harm the long-term ability of the PJM capacity market to encourage necessary generation investment throughout PJM. | |||||||
In February 2011, PPL and several other companies filed a complaint in U.S. District Court in New Jersey challenging the Act on the grounds that it violates the Supremacy and Commerce clauses of the U.S. Constitution and requesting relief barring implementation. In October 2013, the U.S. District Court in New Jersey issued a decision finding the Act unconstitutional under the Supremacy Clause on the grounds that it infringes upon the FERC's exclusive authority to regulate the wholesale sale of electricity in interstate commerce. The decision was appealed to the U.S. Court of Appeals for the Third Circuit (Third Circuit) by CPV Power Development, Inc., Hess Newark, LLC and the State of New Jersey (the Appellants). In September 2014, the Third Circuit affirmed the District Court's decision. In December 2014, the Appellants filed a petition for certiorari before the U.S. Supreme Court. In March 2015, the U.S. Supreme Court requested the U.S. Solicitor General to submit briefs expressing its views as to the issues raised in this case. | |||||||
Maryland Capacity Order | |||||||
In April 2012, the Maryland Public Service Commission (MD PSC) ordered (Order) three electric utilities in Maryland to enter into long-term contracts to support the construction of new electricity generating facilities in Maryland the intent of which, PPL believed, was to encourage the construction of new generation even when, under the FERC-approved PJM economic model, such new generation would not be economic. The MD PSC action could depress capacity prices in PJM in the short-term, impacting PPL Energy Supply's revenues, and harm the long-term ability of the PJM capacity market to encourage necessary generation investment throughout PJM. | |||||||
In April 2012, PPL and several other companies filed a complaint in U.S. District Court (District Court) in Maryland challenging the Order on the grounds that it violates the Supremacy and Commerce clauses of the U.S. Constitution and requested declaratory and injunctive relief barring implementation of the order by the MD PSC Commissioners. In September 2013, the District Court issued a decision finding the Order unconstitutional under the Supremacy Clause on the grounds that it infringes upon the FERC's exclusive authority to regulate the wholesale sale of electricity in interstate commerce. The decision was appealed to the U.S. Court of Appeals for the Fourth Circuit (Fourth Circuit) by CPV Power Development, Inc. and the State of Maryland (the Appellants). In June 2014, the Fourth Circuit affirmed the District Court's opinion and subsequently denied the Appellants' motion for rehearing. In December 2014, the Appellants filed a petition for certiorari before the U.S. Supreme Court. In March 2015, the U.S. Supreme Court requested the U.S. Solicitor General to submit briefs expressing its views as to the issues raised in this case. | |||||||
Pacific Northwest Markets (PPL) | |||||||
Through its subsidiaries, PPL Energy Supply made spot market bilateral sales of power in the Pacific Northwest during the period from December 2000 through June 2001. Several parties subsequently claimed refunds at FERC as a result of these sales. In June 2003, the FERC terminated proceedings to consider whether to order refunds for spot market bilateral sales made in the Pacific Northwest, including sales made by PPL Montana, during the period December 2000 through June 2001. In August 2007, the U.S. Court of Appeals for the Ninth Circuit reversed the FERC's decision and ordered the FERC to consider additional evidence. In October 2011, FERC initiated proceedings to consider additional evidence. In July 2012, PPL Montana and the City of Tacoma, one of the two parties claiming refunds at FERC, reached a settlement whereby PPL Montana paid $75 thousand to resolve the City of Tacoma's $23 million claim. The settlement does not resolve the remaining claim outstanding by the City of Seattle for approximately $50 million. Hearings before a FERC Administrative Law Judge (ALJ) regarding the City of Seattle's refund claims were completed in October 2013 and briefing was completed in January 2014. In March 2014, the ALJ issued an initial decision denying the City of Seattle's complaint against PPL Montana. The initial decision is pending review by the FERC. In June 2015, the United States Court of Appeals for the Ninth Circuit will hold oral argument on an appeal from the FERC's October 2011 order setting out the remand process that FERC has followed from 2011 to the present. | |||||||
Although PPL and its subsidiaries believe they have not engaged in any improper trading or marketing practices affecting the Pacific Northwest markets, PPL cannot predict the outcome of the above-described proceedings or whether any subsidiaries will be the subject of any additional governmental investigations or named in other lawsuits or refund proceedings. Consequently, PPL cannot estimate a range of reasonably possible losses, if any, related to this matter. | |||||||
(All Registrants) | |||||||
Electricity - Reliability Standards | |||||||
The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk power system. The FERC oversees this process and independently enforces the Reliability Standards. | |||||||
The Reliability Standards have the force and effect of law and apply to certain users of the bulk power electricity system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties of up to $1 million per day, per violation, for certain violations. | |||||||
PPL, LG&E, KU and PPL Electric monitor their compliance with the Reliability Standards and continue to self-report potential violations of certain applicable reliability requirements and submit accompanying mitigation plans, as required. The resolution of a number of potential violations is pending. Any Regional Reliability Entity (including RFC or SERC) determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC. | |||||||
In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and cannot estimate a range of reasonably possible losses, if any. | |||||||
In October 2012, the FERC initiated its consideration of proposed changes to Reliability Standards to address the impacts of geomagnetic disturbances on the reliable operation of the bulk-power system, which might, among other things, lead to a requirement to install equipment that blocks geomagnetically induced currents on implicated transformers. In May 2013, FERC issued Order No. 779, requiring NERC to submit two types of Reliability Standards for FERC's approval. The first type would require certain owners and operators of the nation's electricity infrastructure, such as the Registrants, to develop and implement operational procedures to mitigate the effects of geomagnetic disturbances on the bulk-power system. This NERC proposed standard was filed by NERC with FERC for approval in January 2014, and was approved in June 2014. The second type is to require owners and operators of the bulk-power system to assess certain geomagnetic disturbance events and develop and implement plans to protect the bulk-power system from those events. This proposal was filed by NERC with FERC for approval by January 22, 2015 and is pending consideration by FERC. The Registrants may be required to make significant expenditures in new equipment or modifications to their facilities to comply with the new requirements. The Registrants are unable to predict the amount of any expenditures that may be required as a result of the adoption of any Reliability Standards for geomagnetic disturbances. | |||||||
Environmental Matters - Domestic | |||||||
(All Registrants) | |||||||
Due to the environmental issues discussed below or other environmental matters, it may be necessary for the Registrants to modify, curtail, replace or cease operation of certain facilities or performance of certain operations to comply with statutes, regulations and other requirements of regulatory bodies or courts. In addition, legal challenges to new environmental permits or rules add to the uncertainty of estimating the future cost of these permits and rules. | |||||||
LG&E and KU are entitled to recover, through the ECR mechanism, certain costs of complying with the Clean Air Act, as amended, and those federal, state or local environmental requirements applicable to coal combustion wastes and by-products from facilities that generate electricity from coal in accordance with approved compliance plans. Costs not covered by the ECR mechanism for LG&E and KU and all such costs for PPL Electric are subject to rate recovery before the companies' respective state regulatory authorities, or the FERC, if applicable. Because PPL Electric does not own any generating plants, its exposure to related environmental compliance costs is reduced. As PPL Energy Supply is not a rate-regulated entity, it cannot seek to recover environmental compliance costs through the mechanism of rate recovery. PPL, PPL Electric, LKE, LG&E and KU can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities. | |||||||
(All Registrants except PPL Electric) | |||||||
Air | |||||||
CSAPR | |||||||
The EPA's CSAPR addresses the interstate transport of fine particulates and ozone by regulating emissions of sulfur dioxide and nitrogen oxide. In accordance with an October 2014 U.S. Court of Appeals decision, CSAPR establishes interstate allowance trading programs for sulfur dioxide and nitrogen oxide emissions from fossil-fueled plants in two phases: Phase 1 commenced in January 2015 and Phase 2 commences in 2017. Sulfur dioxide emissions are subject to an annual trading program and nitrogen oxide emissions are subject to annual and ozone season programs. Oral arguments pertaining to outstanding challenges to the EPA's CSAPR were heard before the D.C. Circuit Court during February 2015. | |||||||
Although PPL, LKE, LG&E and KU do not anticipate significant costs to comply with these programs, changes in market or operating conditions could result in impacts that are higher than anticipated. | |||||||
National Ambient Air Quality Standards | |||||||
In 2008, the EPA revised the National Ambient Air Quality Standard for ozone. As a result, states in the ozone transport region (OTR), including Pennsylvania, are required by the Clean Air Act to impose additional reductions in nitrogen oxide emissions based upon reasonably available control technologies (RACT). The PADEP is expected to finalize a RACT rule in 2015 requiring some fossil-fueled plants to operate at more stringent nitrogen oxide emission rates. The EPA proposed to further strengthen the ozone standard in November 2014, which could lead to further nitrogen oxide reductions, for PPL's fossil-fueled plants within the OTR. The EPA is under court order to finalize the standard by October 1, 2015. States are also obligated to address interstate transport issues associated with new ozone standards through the establishment of "good neighbor" state implementation plans for those states that are found to contribute significantly to another states' non-attainment. In January 2015, the EPA issued a policy memo to state agencies to facilitate the development of these plans for the 2008 standard, including modeling data defining state contributions. The implementation of such plans could have an impact on the structure and stringency of CSAPR Phase 2 reductions (discussed above), or it could lead to the development of a new ozone transport rule. Non-OTR states, including Kentucky, are working together to evaluate further nitrogen oxide reductions from fossil-fueled plants with SCRs. The nature and timing of any additional reductions resulting from these evaluations cannot be determined at this time. | |||||||
In 2010, the EPA finalized a new National Ambient Air Quality Standard for sulfur dioxide and required states to identify areas that meet those standards and areas that are in "non-attainment". In July 2013, the EPA finalized non-attainment designations for parts of the country, including part of Yellowstone County in Montana (Billings area) and part of Jefferson County in Kentucky. Attainment must be achieved by 2018. Pursuant to a consent decree between the EPA and Sierra Club approved on March 2, 2015, states are working to finalize designations for other areas by the 2017 or 2020 deadline depending on which designation methodology is used. PPL, LKE, LG&E and KU anticipate that some of the measures required for compliance with the CSAPR (as discussed above), or the MATS, or the Regional Haze Rules (as discussed below), such as upgraded or new sulfur dioxide scrubbers at certain plants and, in the case of LG&E and KU, the previously announced retirement of coal-fired generating units at the Cane Run, Green River and Tyrone plants, will help to achieve compliance with the new sulfur dioxide standard. If additional reductions were to be required, the financial impact could be significant. The short-term impact on the Corette plant from the EPA's final designation of part of Yellowstone County in Montana as non-attainment (as noted above) is not expected to be significant, as the operations were suspended and the plant was retired in March 2015. In addition, MDEQ recently submitted a request to the EPA for a determination that this area is in attainment. If the EPA agrees with this request, then the deadlines associated with non-attainment would be suspended. | |||||||
In December 2012, the EPA issued final rules that tighten the annual National Ambient Air Quality Standard for fine particulates. The rules were challenged by industry groups, and in May 2014 the D.C. Circuit Court upheld them. On January 15, 2015, the EPA published a final rule establishing area designations under the standard. Non-attainment areas in Pennsylvania and Kentucky were identified; however, EPA recently approved state implementation plan revisions for both states that improved these classifications. PPL Energy Supply, LG&E and KU plants in Pennsylvania and Kentucky will not be expected to make further reductions towards achieving attainment. | |||||||
Until final rules are promulgated, non-attainment designations are finalized and state compliance plans are developed, PPL, LKE, LG&E and KU cannot predict the ultimate outcome of the new National Ambient Air Quality standards for ozone, sulfur dioxide and particulate matter. | |||||||
MATS | |||||||
In February 2012, the EPA finalized the MATS rule requiring reductions of mercury and other hazardous air pollutants from fossil-fuel fired power plants, known as the MATS, with an effective date of April 16, 2012. The rule was challenged by industry groups and states and was upheld by the D.C. Circuit Court in April 2014. A group of states subsequently petitioned the U.S. Supreme Court to review this decision and on March 25, 2015, oral arguments were heard as to one issue – whether or not EPA unreasonably refused to consider costs when determining whether the MATS regulation was appropriate and necessary. A U.S. Supreme Court decision is expected by June 30, 2015. The rule provides for a three-year compliance deadline with the potential for one- and two-year extensions as provided under the statute. PPL, LKE, LG&E and KU have completed installation or upgrading of relevant environmental controls at affected plants or have received compliance extensions, as applicable. | |||||||
At the time the MATS rule was proposed, LG&E and KU filed requests with the KPSC for environmental cost recovery based on their expected need to install environmental controls including chemical additive and fabric-filter baghouses to remove air pollutants. Recovery of the cost of certain controls was granted by the KPSC in December 2011. LG&E’s March 2015 retirement of one coal-fired generating unit at Cane Run and LG&E's and KU's anticipated retirement of remaining coal-fired electricity generating units located at Cane Run and Green River in 2015 and 2016 are in response to MATS and other environmental regulations. The retirement of these units is not expected to have a material impact on the financial condition or results of operations of PPL, LKE, LG&E or KU. | |||||||
PPL believes that installation of chemical additive systems and other controls may be necessary at certain coal-fired plants in Pennsylvania, the capital cost of which is not expected to be significant. PPL continues to analyze the potential impact of MATS on operating costs. With respect to PPL’s Montana plants, modifications to the air pollution controls installed at Colstrip are required, the cost of which is not expected to be significant. Operations were suspended and the Corette plant was retired in March 2015 due to expected market conditions and the costs to comply with the MATS requirements. | |||||||
PPL, LKE, LG&E and KU are conducting in-depth reviews of the EPA's amendments to the final rule and certain proposed corrections, none of which are currently expected to be significant. | |||||||
Regional Haze and Visibility | |||||||
The EPA's regional haze programs were developed under the Clean Air Act to eliminate man-made visibility degradation by 2064. Under the programs, states are required to make reasonable progress every decade through the application, among other things, of Best Available Retrofit Technology (BART) on power plants commissioned between 1962 and 1977. | |||||||
The primary power plant emissions affecting visibility are sulfur dioxide, nitrogen oxides and particulates. To date, the focus of regional haze regulation has been the western U.S. As for the eastern U.S., the EPA had determined that region-wide reductions under the CSAPR trading program could, in most instances, be utilized under state programs to satisfy BART requirements for sulfur dioxide and nitrogen oxides. However, the EPA's determination is being challenged by environmental groups and others. | |||||||
LG&E's Mill Creek Units 3 and 4 are required to reduce sulfuric acid mist emissions because they were determined to have a significant regional haze impact. These reductions are required in the regional haze state implementation plan that the Kentucky Division for Air Quality submitted to the EPA. LG&E is currently installing sorbent injection technology to comply with these reductions, the costs of which are not expected to be significant. | |||||||
In Montana, the EPA Region 8 developed the regional haze plan as the MDEQ declined to do so. The EPA finalized the Federal Implementation Plan (FIP) for Montana in September 2012. The final FIP assumed no additional controls for Corette or Colstrip Units 3 and 4, but proposed stricter limits for Corette and Colstrip Units 1 and 2. PPL Energy Supply was meeting these stricter permit limits at Corette without any significant changes to operations, although other requirements have led to the suspension of operations and the retirement of Corette in March 2015 (see "MATS" discussion above). Under the final FIP, Colstrip Units 1 and 2 may require additional controls, including the possible installation of an SNCR and other technology, to meet more stringent nitrogen oxides and sulfur dioxide limits. The cost of these potential additional controls, if required, could be significant. Both PPL and environmental groups have appealed the final FIP to the U.S. Court of Appeals for the Ninth Circuit, oral argument was heard in May 2014, and the parties are awaiting a decision. | |||||||
New Source Review (NSR) | |||||||
The EPA has continued its NSR enforcement efforts targeting coal-fired generating plants. The EPA has asserted that modification of these plants has increased their emissions and, consequently, that they are subject to stringent NSR requirements under the Clean Air Act. PPL, LKE, LG&E and KU received various EPA information requests in 2007 and 2009, but have received no further communications from the EPA related to those requests since providing their responses. In January 2009, PPL and other companies that own or operate the Keystone plant in Pennsylvania received a notice of violation from the EPA alleging that certain projects were undertaken without proper NSR compliance. The companies responded to the EPA and the matter remains open. In May and November 2012, PPL Montana received information requests from the EPA regarding projects undertaken during a Spring 2012 maintenance outage at Colstrip Unit 1. The EPA requests remain an open matter. In September 2012, PPL Montana received an information request from the MDEQ regarding Colstrip Unit 1 and other projects. MDEQ formally suspended this request on June 6, 2014 in consideration of pending litigation (see "Legal Matters - Sierra Club Litigation" above). PPL, LKE, LG&E and KU cannot predict the outcome of these matters, and cannot estimate a range of reasonably possible losses, if any. | |||||||
States and environmental groups also have commenced litigation alleging violations of the NSR regulations by coal-fired generating plants across the nation. See "Legal Matters" above for information on a lawsuit filed by environmental groups in March 2013 against PPL Montana and other owners of Colstrip. | |||||||
If any PPL subsidiary is found to have violated NSR regulations by significantly increasing pollutants through a major plant modification, the subsidiary would, among other things, be required to meet stringent permit limits reflecting Best Available Control Technology (BACT) for pollutants meeting the National Ambient Air Quality Standards (NAAQS) in the area and reflecting Lowest Achievable Emission Rates for pollutants not meeting the NAAQS in the area. The costs to meet such limits, including installation of technology at certain units, could be material. | |||||||
Trimble County Unit 2 Air Permit (PPL, LKE, LG&E and KU) | |||||||
The Sierra Club and other environmental groups petitioned the Kentucky Environmental and Public Protection Cabinet to overturn the air permit issued for the Trimble County Unit 2 baseload coal-fired generating unit, but the agency upheld the permit in an order issued in September 2007. In response to subsequent petitions by environmental groups, the EPA ordered certain non-material changes to the permit which, in January 2010, were incorporated into a final revised permit issued by the Kentucky Division for Air Quality. In March 2010, the environmental groups petitioned the EPA to object to the revised state permit. Until the EPA issues a final ruling on the pending petition and all available appeals are exhausted, PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potential impact on plant operations, including increased capital costs, if any. | |||||||
Climate Change | |||||||
(All Registrants) | |||||||
As a result of the April 2007 U.S. Supreme Court decision that the EPA has authority under the Clean Air Act to regulate carbon dioxide emissions from new motor vehicles, in April 2010 the EPA and the U.S. Department of Transportation issued new light-duty vehicle emissions standards that applied beginning with 2012 model year vehicles. The EPA also clarified that this standard, beginning in 2011, authorized regulation of carbon dioxide emissions from stationary sources under the NSR and Title V operating permit provisions of the Clean Air Act. The EPA's rules were challenged in court and on June 23, 2014, the U.S. Supreme Court ruled that the EPA has the authority to regulate carbon dioxide emissions under these provisions of the Clean Air Act but only for stationary sources that would otherwise have been subject to these provisions due to significant increases in emissions of other pollutants. As a result, any new sources or major modifications to an existing GHG source causing a net significant increase in carbon dioxide emissions must comply with BACT permit limits for carbon dioxide if it would otherwise be subject to BACT or lowest achievable emissions rate limits due to significant increases in other pollutants. | |||||||
In June 2013, President Obama released his Climate Action Plan that reiterates the goal of reducing GHG emissions in the U.S. "in the range of" 17% below 2005 levels by 2020 through such actions as regulating power plant emissions, promoting increased use of renewables and clean energy technology, and establishing more restrictive energy efficiency standards. Additionally, the Climate Action Plan calls for the U.S. to prepare for the impacts of climate change. Requirements related to this Plan could affect the Registrants and others in the industry as modifications may be needed to electricity delivery systems to improve the ability to withstand major storms in order to meet those requirements. As further described below, the EPA has proposed rules pursuant to this directive, which it expects to finalize in the second or third quarter of 2015. The EPA has also announced that it will develop a federal implementation plan which would apply to any states that fail to submit an acceptable state implementation plan. The EPA’s authority to promulgate these regulations under Section 111 of the Clean Air Act when the sources are already regulated under Section 112 is under challenge in the D.C. Circuit Court. Oral arguments were heard on April 16, 2015. | |||||||
In January 2014, the EPA issued a revised proposal to regulate carbon dioxide emissions from new power plants. The revised proposal calls for separate emission standards for coal and gas units based on the application of different technologies. The coal standard is based on the application of partial carbon capture and sequestration technology, but because this technology is not presently commercially available, the revised proposal effectively precludes the construction of new coal-fired plants. The standard for NGCC power plants is the same as the EPA proposed in 2012 and is not continuously achievable. The preclusion of new coal-fired plants and the compliance difficulties posed for new gas-fired plants could have a significant industry-wide impact. | |||||||
In June 2014, the EPA issued proposed regulations addressing carbon dioxide emissions from existing power plants. The existing plant proposal contains state-specific rate-based reduction goals and guidelines for the development, submission and implementation of state plans to achieve the state goals. State-specific goals were calculated from 2012 data by applying EPA's broad interpretation and definition of the Best System of Emission Reduction resulting in stringent targets to be met in two phases (2020-2029 and 2030 and beyond). The EPA believes it has offered some flexibility to the states as to how state compliance plans can be crafted, including the option to demonstrate compliance on a mass basis and through multi-state collaborations. The EPA is also proposing potential state plan extensions based on the type of plan filed (single or multi state). PPL has analyzed the proposal and identified potential impacts and solutions in comments filed on December 1, 2014. PPL also submitted Supplemental Comments to FERC through EEI, advocating for reliability coordination and relief in response to technical conferences hosted by FERC on the reliability implications of implementing this rule. The regulation of carbon dioxide emissions from existing power plants could have a significant industry-wide impact depending on the structure and stringency of the final rule and state implementation plans. | |||||||
In June 2014, the EPA also proposed a regulation addressing carbon dioxide emissions from existing power plants that are modified or reconstructed. The Registrants, however, do not expect a significant impact from this rulemaking as there are no plans to modify or reconstruct their existing plants in a manner that would trigger the proposed requirements. | |||||||
(PPL) | |||||||
Based on the stringent GHG reduction requirements in the EPA's proposed rule for existing plants, and based on information gained from public input, the PADEP is no longer expecting to achieve all required GHG reductions by solely increasing efficiency at existing fossil-fuel plants and/or reducing their generation as set forth in the PADEP's April 10, 2014 white paper. In October 2014, the Governor of Pennsylvania signed into law Act 175 of 2014, requiring the PADEP to obtain General Assembly approval of any state plan addressing GHG emissions under the EPA's GHG rules for existing plants. The law includes provisions to minimize the exposure to a federal implementation plan due to legislative delay. | |||||||
The MDEQ, at the request of the Governor of Montana, has issued a white paper outlining possible regulatory scenarios to implement the EPA's proposed GHG rule for existing plants, including a combination of increasing energy efficiency at coal-fired plants, adding more low- and zero-carbon generation, and carbon sequestration at Colstrip. The white paper was made public in September 2014 and the MDEQ has held public meetings to present the white paper and gather comments. Legislation drafted to require legislative approval of any related plan formulated by MDEQ was tabled. | |||||||
(PPL, LKE, LG&E and KU) | |||||||
In April 2014, the Kentucky General Assembly passed legislation which limits the measures that the Kentucky Energy and Environment Cabinet may consider in setting performance standards to comply with the EPA's regulations governing GHG emissions from existing sources. The legislation provides that such state GHG performance standards shall be based on emission reductions, efficiency measures, and other improvements available at each power plant, rather than renewable energy, end-use energy efficiency, fuel switching and re-dispatch. These statutory restrictions may make it more difficult for Kentucky to achieve the GHG reduction levels which the EPA has proposed for Kentucky. | |||||||
(All Registrants except PPL Electric) | |||||||
A number of lawsuits have been filed asserting common law claims including nuisance, trespass and negligence against various companies with GHG emitting plants and, although the decided cases to date have not sustained claims brought on the basis of these theories of liability, the law remains unsettled on these claims. In September 2009, the U.S. Court of Appeals for the Second Circuit in the case of AEP v. Connecticut reversed a federal district court's decision and ruled that several states and public interest groups, as well as the City of New York, could sue five electric utility companies under federal common law for allegedly causing a public nuisance as a result of their emissions of GHGs. In June 2011, the U.S. Supreme Court overturned the Second Circuit and held that such federal common law claims were displaced by the Clean Air Act and regulatory actions of the EPA. In addition, in Comer v. Murphy Oil (Comer case), the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) declined to overturn a district court ruling that plaintiffs did not have standing to pursue state common law claims against companies that emit GHGs. The complaint in the Comer case named the previous indirect parent of LKE as a defendant based upon emissions from the Kentucky plants. In January 2011, the U.S. Supreme Court denied a petition to reverse the Fifth Circuit's ruling. In May 2011, the plaintiffs in the Comer case filed a substantially similar complaint in federal district court in Mississippi against 87 companies, including KU and three other indirect subsidiaries of LKE, under a Mississippi statute that allows the re-filing of an action in certain circumstances. In March 2012, the Mississippi federal district court granted defendants' motions to dismiss the state common law claims. Plaintiffs appealed to the U.S. Court of Appeals for the Fifth Circuit, and in May 2013, the Fifth Circuit affirmed the district court's dismissal of the case. Additional litigation in federal and state courts over such issues is continuing. The Registrants cannot predict the outcome of these lawsuits or estimate a range of reasonably possible losses, if any. | |||||||
Renewable Energy Legislation | |||||||
(PPL and PPL Electric) | |||||||
In Pennsylvania, House Bill 100 was introduced in February 2015, proposing to increase AEPS solar and Tier 1 targets. A similar bill is in the process of being introduced in the Senate (no bill number is available at this time). PPL and PPL Electric cannot predict the outcome of this legislative effort. | |||||||
(PPL) | |||||||
In New Jersey, a bill (S-1475) has been introduced to increase the current Renewable Portfolio Standard (RPS) to 30% from Class I sources by 2020. The chairman of the Senate Environmental Committee convened a workgroup to look at further changes to New Jersey's RPS law to enable New Jersey to meet emissions goals established in the state's Global Warming Response Act. A bill (S-2444) was subsequently introduced to mandate that 80% of New Jersey's electricity be generated from renewable resources by 2050. PPL cannot predict the outcome of this legislation. | |||||||
(All Registrants) | |||||||
The Registrants believe there are financial, regulatory and operational uncertainties related to the implementation of renewable energy mandates that will need to be resolved before the impact of such requirements on them can be estimated. Such uncertainties, among others, include the need to provide back-up supply to augment intermittent renewable generation, potential generation over-supply and downward pressure on energy prices that could result from such renewable generation and back-up, impacts to PJM's capacity market and the need for substantial changes to transmission and distribution systems to accommodate renewable energy sources. These uncertainties are not directly addressed by proposed legislation. PPL cannot predict the effect on their competitive plants' future competitive position, results of operation, cash flows and financial position of renewable energy mandates that may be adopted, although the costs to implement and comply with any such requirements could be significant. | |||||||
Water/Waste | |||||||
(All Registrants except PPL Electric) | |||||||
Coal Combustion Residuals (CCRs) | |||||||
On April 17, 2015, the EPA published its final rule regulating CCRs. CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes. The rule will become effective on October 14, 2015. It imposes extensive new requirements, including location restrictions, design and operating standards, groundwater monitoring and corrective action requirements and closure and post-closure care requirements on CCR impoundments and landfills that are located on active power plants and not closed. Under the rule, the EPA will regulate CCRs as non-hazardous under Subtitle D of RCRA and allow beneficial use of CCRs, with some restrictions. This self-implementing rule requires posting of compliance documentation on a publicly accessible website and is enforceable through citizen suits. PPL expects that its plants using surface impoundments for management and disposal of CCRs or the past management of CCRs and continued use to manage waste waters will be most impacted by this rule. The rule's requirements for covered CCR impoundments and landfills include commencement or completion of closure activities generally between three and ten years from certain triggering events. PPL, LKE, LG&E and KU also anticipate incurring capital or operation and maintenance costs prior to that time to address other provisions of the rule, such as groundwater monitoring and disposal facility modifications, or to implement various compliance strategies. | |||||||
PPL, LKE, LG&E and KU are reviewing the rule and are still evaluating its financial and operational impact. It is expected that these requirements will result in increases to existing AROs which will be recorded in the second quarter of 2015. PPL, LKE, LG&E and KU are not yet able to determine an estimate of the expected increases to the existing AROs. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to future rate recovery before the respective state regulatory agencies, or the FERC, as applicable. | |||||||
Effluent Limitations Guidelines (ELGs) and Standards | |||||||
In June 2013, the EPA published proposed regulations to revise discharge limitations for steam electric generation wastewater permits. The proposed limitations are based on the EPA review of available treatment technologies and their capacity for reducing pollutants and include new requirements for fly ash and bottom ash transport water and metal cleaning waste waters, as well as new limits for scrubber wastewater and landfill leachate. The EPA's proposed ELG regulations contain requirements that would affect the inspection and operation of CCR facilities if finalized as proposed. The proposal contains alternative approaches, some of which could significantly impact PPL's, PPL Energy Supply's, LKE's, LG&E's and KU's coal-fired plants. The final regulation is expected to be issued by the third or fourth quarter of 2015. At the present time, PPL, LKE, LG&E and KU are unable to predict the outcome of this matter or estimate a range of reasonably possible costs, but the costs could be significant. Pending finalization of the ELGs, certain states (including Pennsylvania and Kentucky) and environmental groups are proposing more stringent technology-based limits in permit renewals. Depending on the final limits imposed, the costs of compliance could be significant and costs could be imposed ahead of federal timelines. | |||||||
Trimble County Landfill (PPL, LKE, LG&E and KU) | |||||||
In May 2011, LG&E submitted an application for a special waste landfill permit to handle CCRs generated at the Trimble County plant. In May 2013, the Kentucky Division of Waste Management denied the permit application on the grounds that the proposed facility would violate the Kentucky Cave Protection Act because it would eliminate an on-site karst feature considered to be a cave. In January 2014, LG&E submitted to the Kentucky Division of Waste Management a landfill permit application for an alternate site adjacent to the plant. LG&E has also applied for other necessary regulatory approvals including a dredge and fill permit from the U.S. Army Corps of Engineers, in which proceeding the EPA or the public have submitted certain comments to which LG&E and KU are responding. PPL, LKE, LG&E and KU are unable to determine the potential impact of this matter until all permits are issued and any resulting legal challenges are concluded. | |||||||
Seepages and Groundwater Infiltration - Pennsylvania, Montana and Kentucky | |||||||
(All Registrants except PPL Electric) | |||||||
Seepages or groundwater infiltration have been detected at active and retired wastewater basins and landfills at various PPL, PPL Energy Supply, LKE, LG&E and KU plants. PPL, LKE, LG&E and KU have completed or are completing assessments of seepages or groundwater infiltration at various facilities and have completed or are working with agencies to respond to notices of violations and implement assessment or abatement measures, where required or applicable. A range of reasonably possible losses cannot currently be estimated. | |||||||
(PPL) | |||||||
In August 2012, PPL Montana entered into an Administrative Order on Consent (AOC) with the MDEQ which establishes a comprehensive process to investigate and remediate groundwater seepage impacts related to the wastewater facilities at the Colstrip power plant. The AOC requires that within five years, PPL Montana provide financial assurance to the MDEQ for the costs associated with closure and future monitoring of the waste-water treatment facilities. PPL Montana cannot predict at this time if the actions required under the AOC will create the need to adjust the existing ARO related to this facility. | |||||||
In September 2012, Earthjustice filed an affidavit pursuant to Montana's Major Facility Siting Act (MFSA) that sought review of the AOC by Montana's Board of Environmental Review (BER) on behalf of the Sierra Club, the MEIC and the National Wildlife Federation. In September 2012, PPL Montana filed an election with the BER to have this proceeding conducted in Montana state district court as contemplated by the MFSA. In October 2012, Earthjustice filed a petition for review of the AOC in the Montana state district court in Rosebud County. This matter was stayed in December 2012. In April 2014, Earthjustice filed a motion for leave to amend the petition for review and to lift the stay which was granted by the court in May 2014. PPL Montana and the MDEQ responded to the amended petition and filed partial motions to dismiss in July 2014, which were both denied in October 2014. Discovery is ongoing, and a bench trial is set for April 2016. | |||||||
Clean Water Act 316(b) (All Registrants except PPL Electric) | |||||||
The EPA's final 316(b) rule for existing facilities became effective in October 2014, and regulates cooling water intake structures and their impact on aquatic organisms. States are allowed considerable authority to make site-specific determinations under the rule. The rule requires existing facilities to choose between several options to reduce the impact to aquatic organisms that become trapped against water intake screens (impingement) and to determine the intake structure's impact on aquatic organisms pulled through a plant's cooling water system (entrainment). Plants already equipped with closed-cycle cooling, an acceptable option, would likely not incur substantial costs. Once-through systems would likely require additional technology to comply with the rule. Mill Creek Unit 1 and Brunner Island (all units) are the only units expected to be impacted. PPL, LKE, LG&E and KU are evaluating compliance strategies but do not presently expect the compliance costs to be material. | |||||||
(All Registrants) | |||||||
Waters of the United States (WOTUS) | |||||||
In April 2014, the EPA and the U.S. Army Corps of Engineers (Army Corps) published a proposed rule defining WOTUS that could greatly expand the federal government's interpretation of what constitutes WOTUS subject to regulation under the Clean Water Act. If the definition is expanded as proposed by the EPA and the Army Corps, permits and other regulatory requirements may be imposed for many matters presently not covered (including vegetation management for transmission lines and activities affecting storm water conveyances and wetlands), the implications of which could be significant. The EPA plans to make certain changes to the proposed regulation based on comments received. The U.S. House and Senate are considering legislation to block this regulation. Until a final rule is issued, the Registrants cannot predict the outcome of the pending rulemaking. A final rule is expected by summer 2015. | |||||||
Other Issues | |||||||
The EPA is reassessing its polychlorinated biphenyls (PCB) regulations under the Toxic Substance Control Act, which currently allow certain PCB articles to remain in use. In April 2010, the EPA issued an Advanced Notice of Proposed Rulemaking for changes to these regulations. This rulemaking could lead to a phase-out of all or some PCB-containing equipment. The EPA is planning to propose the revised regulations in 2015. PCBs are found, in varying degrees, in all of the Registrants' operations. The Registrants cannot predict at this time the outcome of these proposed EPA regulations and what impact, if any, they would have on their facilities, but the costs could be significant. | |||||||
(PPL) | |||||||
A subsidiary of PPL Energy Supply has investigated alternatives to exclude fish from the discharge channel at its Brunner Island plant. In June 2012, a Consent Order and Agreement (COA) with the PADEP was signed, allowing the subsidiary to study a change in a cooling tower operational method that may keep fish from entering the channel. The COA required a retrofit of impingement control technology at the intakes to the cooling towers, at a cost that would have been significant. Based on the results of the first year of study, the PADEP has suggested closing the COA and writing a new COA to resolve the issue. PPL is in negotiations with the agency at this time. PPL cannot predict at this time the outcome of the proposed new COA and what impact, if any, it would have on their facilities, but the costs could be significant. | |||||||
(PPL, LKE, LG&E and KU) | |||||||
In May 2010, the Kentucky Waterways Alliance and other environmental groups filed a petition with the Kentucky Energy and Environment Cabinet challenging the Kentucky Pollutant Discharge Elimination System permit issued in April 2010, which covers water discharges from the Trimble County plant. In November 2010, the Cabinet issued a final order upholding the permit. In December 2010, the environmental groups appealed the order to the Trimble Circuit Court, but the case was subsequently transferred to the Franklin Circuit Court. In September 2013, the court reversed the Cabinet order upholding the permit and remanded the permit to the agency for further proceedings. In October 2013, LG&E filed a notice of appeal with the Kentucky Court of Appeals. In February 2015, oral arguments occurred in the appellate proceeding. PPL, LKE, LG&E and KU are unable to predict the outcome of this matter or estimate a range of reasonably possible losses, if any. | |||||||
Superfund and Other Remediation (All Registrants) | |||||||
PPL Electric is potentially responsible for costs at several sites listed by the EPA under the federal Superfund program, including the Columbia Gas Plant site, the Metal Bank site, the Brodhead site and the Ward Transformer site. Clean-up actions have been or are being undertaken at all of these sites, the costs of which have not been significant to PPL Electric. However, should the EPA require different or additional measures in the future, or should PPL Electric's share of costs at multi-party sites increase substantially more than currently expected, the costs could be significant. | |||||||
PPL Electric, LG&E and KU are remediating, have completed the remediation of, or are responding to agency inquiries regarding several sites that were not addressed under a regulatory program such as Superfund, but for which PPL Electric, LG&E and KU may be liable for remediation. These include a number of former coal gas manufacturing plants in Pennsylvania and Kentucky previously owned or operated or currently owned by predecessors or affiliates of PPL Electric, LG&E and KU. To date, the costs of these sites have not been significant. There are additional sites, formerly owned or operated by PPL Electric, LG&E and KU predecessors or affiliates, for which PPL Electric, LG&E and KU lack information on current site conditions and are therefore unable to predict what, if any, potential liability they may have. | |||||||
Depending on the outcome of investigations at sites where investigations have not begun or been completed or developments at sites for which PPL Electric, LG&E and KU currently lack information, the costs of remediation and other liabilities could be material. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters. | |||||||
The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result of the EPA's evaluation, individual states may establish stricter standards for water quality and soil cleanup. This could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters. | |||||||
From time to time, PPL's subsidiaries undertake remedial action in response to notices of violations, spills or other releases at various on-site and off-site locations, negotiate with the EPA and state and local agencies regarding actions necessary for compliance with applicable requirements, negotiate with property owners and other third parties alleging impacts from PPL's operations and undertake similar actions necessary to resolve environmental matters that arise in the course of normal operations. Based on analyses to date, resolution of these environmental matters is not expected to have a significant adverse impact on the operations of PPL, PPL Electric, LG&E and KU. | |||||||
Future cleanup or remediation work at sites currently under review, or at sites not currently identified, may result in significant additional costs for PPL, PPL Electric, LG&E and KU. | |||||||
Environmental Matters - WPD (PPL) | |||||||
WPD's distribution businesses are subject to environmental regulatory and statutory requirements. PPL believes that WPD has taken and continues to take measures to comply with the applicable laws and governmental regulations for the protection of the environment. | |||||||
Other | |||||||
Nuclear Insurance (PPL) | |||||||
The Price-Anderson Act is a United States Federal law governing liability-related issues and ensures the availability of funds for public liability claims arising from an incident at any U.S. licensed nuclear facility. It also seeks to limit the liability of nuclear reactor owners for such claims from any single incident. At March 31, 2015, the liability limit per incident is $13.6 billion for such claims which is funded by insurance coverage from American Nuclear Insurers and an industry assessment program. | |||||||
Under the industry assessment program, in the event of a nuclear incident at any of the reactors covered by The Price-Anderson Act, as amended, PPL Susquehanna could be assessed up to $255 million per incident, payable at $38 million per year. | |||||||
Additionally, PPL Susquehanna purchases property insurance programs from NEIL, an industry mutual insurance company of which PPL Susquehanna is a member. At March 31, 2015, facilities at the Susquehanna plant are insured against property damage losses up to $2.0 billion. PPL Susquehanna also purchases an insurance program that provides coverage for the cost of replacement power during prolonged outages of nuclear units caused by certain specified conditions. | |||||||
Under the NEIL property and replacement power insurance programs, PPL Susquehanna could be assessed retrospective premiums in the event of the insurers' adverse loss experience. This maximum assessment is $46 million at March 31, 2015. Effective April 1, 2015, this maximum assessment increased to $55 million. PPL Energy Supply has additional coverage that, under certain conditions, may reduce this exposure. | |||||||
Guarantees and Other Assurances | |||||||
(All Registrants) | |||||||
In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage. | |||||||
(PPL) | |||||||
PPL fully and unconditionally guarantees all of the debt securities of PPL Capital Funding. | |||||||
(All Registrants) | |||||||
The table below details guarantees provided as of March 31, 2015. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The probability of expected payment/performance under each of these guarantees is remote except for "WPD guarantee of pension and other obligations of unconsolidated entities", “Indemnification for sales of assets” and "Indemnification of lease termination and other divestitures." The total recorded liability at March 31, 2015 and December 31, 2014, was $37 million and $38 million for PPL and $19 million for LKE for both periods. For reporting purposes, on a consolidated basis, all guarantees of PPL Electric, LKE, LG&E and KU also apply to PPL, and all guarantees of LG&E and KU also apply to LKE. | |||||||
Exposure at | Expiration | ||||||
March 31, 2015 | Date | ||||||
PPL | |||||||
Indemnifications related to the WPD Midlands acquisition | (a) | ||||||
WPD indemnifications for entities in liquidation and sales of assets | $ | 11 | (b) | 2018 | |||
WPD guarantee of pension and other obligations of unconsolidated entities | 114 | (c) | |||||
Indemnifications for sales of assets | 1,150 | (d) | 2016 - 2025 | ||||
PPL Electric | |||||||
Guarantee of inventory value | 32 | (e) | 2017 | ||||
LKE | |||||||
Indemnification of lease termination and other divestitures | 301 | (f) | 2021 - 2023 | ||||
LG&E and KU | |||||||
LG&E and KU guarantee of shortfall related to OVEC | (g) | ||||||
(a) Indemnifications related to certain liabilities, including a specific unresolved tax issue and those relating to properties and assets owned by the seller that were transferred to WPD Midlands in connection with the acquisition. A cross indemnity has been received from the seller on the tax issue. The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents. | |||||||
(b) Indemnification to the liquidators and certain others for existing liabilities or expenses or liabilities arising during the liquidation process. The indemnifications are limited to distributions made from the subsidiary to its parent either prior or subsequent to liquidation or are not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases where the agreements provide for specific limits. | |||||||
In connection with their sales of various businesses, WPD and its affiliates have provided the purchasers with indemnifications that are standard for such transactions, including indemnifications for certain pre-existing liabilities and environmental and tax matters or have agreed to continue their obligations under existing third-party guarantees, either for a set period of time following the transactions or upon the condition that the purchasers make reasonable efforts to terminate the guarantees. Finally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties. | |||||||
(c) Relates to certain obligations of discontinued or modified electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At March 31, 2015, WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure has been estimated. | |||||||
(d) Indemnifications are governed by the specific sales agreement and include breach of the representations, warranties and covenants, and liabilities for certain other matters. The maximum exposure with respect to certain indemnifications and the expiration of the indemnifications cannot be estimated because the maximum potential liability is not capped by the transaction documents and the expiration date is based on the applicable statute of limitations. The exposure and expiration date noted is based on those cases in which the agreements provide for specific limits. The exposure at March 31, 2015 includes amounts related to the sale of the Montana Hydroelectric facilities. See Note 8 for additional information related to the sale. | |||||||
(e) A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any remaining inventory that has not been used or sold. | |||||||
(f) LKE provides certain indemnifications, the most significant of which relate to the termination of the WKE lease in July 2009. These guarantees cover the due and punctual payment, performance and discharge by each party of its respective present and future obligations. The most comprehensive of these WKE-related guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under the WKE Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a cumulative maximum exposure of $200 million. Certain items such as government fines and penalties fall outside the cumulative cap. Another WKE-related LKE guarantee covers other indemnifications, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter, which granted LKE’s indemnitee certain rights of first refusal to purchase excess power at a market-based price rather than at an absolute fixed price. In January 2013, LKE's indemnitee commenced a proceeding in the Kentucky Court of Appeals appealing a December 2012 order of the Henderson Circuit Court, confirming the arbitration award. In May 2014, the Court of Appeals issued an opinion affirming the lower court decision. LKE’s indemnitee filed a Motion for Discretionary Review with the Kentucky Supreme Court in October 2014. LKE believes its indemnification obligations in this matter remain subject to various uncertainties, including potential for additional legal challenges regarding the arbitration decision as well as future prices, availability and demand for the subject excess power. LKE continues to evaluate various legal and commercial options with respect to this indemnification matter. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum; LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. However, LKE is not aware of formal claims under such indemnities made by any party at this time. LKE cannot predict the ultimate outcomes of indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded. | |||||||
(g) Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement and decommissioning costs, as well as any shortfall from amounts currently included within a demand charge designed and currently expected to cover these costs over the term of the contract. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See “Energy Purchase Commitments” and "Guarantees and Other Assurances" in Note 13 in PPL's, LKE's, LG&E's and KU's 2014 Form 10-K for additional information on the OVEC power purchase contract. | |||||||
The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is remote. | |||||||
PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
PPL Electric Utilities Corp [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Related Party Transactions | 11. Related Party Transactions | ||||||||||||
PLR Contracts/Purchase of Accounts Receivable (PPL Electric) | |||||||||||||
PPL Electric holds competitive solicitations for PLR generation supply. PPL EnergyPlus has been awarded a portion of the PLR generation supply through these competitive solicitations. The purchases from PPL EnergyPlus are included in PPL Electric's Statements of Income as "Energy purchases from affiliate". | |||||||||||||
Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppliers to post collateral once credit exposures exceed defined credit limits. PPL EnergyPlus is required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by PPL EnergyPlus exceeds the contract price for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit. PPL EnergyPlus does not have an established credit limit. At March 31, 2015, PPL EnergyPlus was not required to post collateral. In no instance is PPL Electric required to post collateral to suppliers under these supply contracts. | |||||||||||||
PPL Electric's customers may choose an alternative supplier for their generation supply. See Note 2 for additional information regarding PPL Electric's purchases of accounts receivable from alternative suppliers, including PPL EnergyPlus. | |||||||||||||
Support Costs (All Registrants except PPL) | |||||||||||||
PPL Services and LKS provide their respective PPL and LKE subsidiaries with administrative, management and support services. In 2015, PPL EU Services was formed to provide the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services will continue to provide certain corporate functions. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | |||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS. | |||||||||||||
Intercompany Borrowings (LKE) | |||||||||||||
LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At March 31, 2015 and December 31, 2014, $40 and $41 million were outstanding and were reflected in “Notes payable with affiliates” on the consolidated Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2015 and December 31, 2014 were 1.67% and 1.65%. Interest on the revolving line of credit was not significant for the three months ended March 31, 2015 and 2014. | |||||||||||||
Intercompany Derivatives (LKE, LG&E and KU) | |||||||||||||
Periodically, LG&E and KU enter into forward-starting interest rate swaps with PPL. These hedging instruments have terms identical to forward-starting swaps entered into by PPL with third parties. See Note 14 for additional information on intercompany derivatives. | |||||||||||||
Other (PPL Electric, LG&E and KU) | |||||||||||||
See Note 9 for discussions regarding intercompany allocations associated with defined benefits. | |||||||||||||
LG And E And KU Energy LLC [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Related Party Transactions | 11. Related Party Transactions | ||||||||||||
PLR Contracts/Purchase of Accounts Receivable (PPL Electric) | |||||||||||||
PPL Electric holds competitive solicitations for PLR generation supply. PPL EnergyPlus has been awarded a portion of the PLR generation supply through these competitive solicitations. The purchases from PPL EnergyPlus are included in PPL Electric's Statements of Income as "Energy purchases from affiliate". | |||||||||||||
Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppliers to post collateral once credit exposures exceed defined credit limits. PPL EnergyPlus is required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by PPL EnergyPlus exceeds the contract price for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit. PPL EnergyPlus does not have an established credit limit. At March 31, 2015, PPL EnergyPlus was not required to post collateral. In no instance is PPL Electric required to post collateral to suppliers under these supply contracts. | |||||||||||||
PPL Electric's customers may choose an alternative supplier for their generation supply. See Note 2 for additional information regarding PPL Electric's purchases of accounts receivable from alternative suppliers, including PPL EnergyPlus. | |||||||||||||
Support Costs (All Registrants except PPL) | |||||||||||||
PPL Services and LKS provide their respective PPL and LKE subsidiaries with administrative, management and support services. In 2015, PPL EU Services was formed to provide the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services will continue to provide certain corporate functions. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | |||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS. | |||||||||||||
Intercompany Borrowings (LKE) | |||||||||||||
LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At March 31, 2015 and December 31, 2014, $40 and $41 million were outstanding and were reflected in “Notes payable with affiliates” on the consolidated Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2015 and December 31, 2014 were 1.67% and 1.65%. Interest on the revolving line of credit was not significant for the three months ended March 31, 2015 and 2014. | |||||||||||||
Intercompany Derivatives (LKE, LG&E and KU) | |||||||||||||
Periodically, LG&E and KU enter into forward-starting interest rate swaps with PPL. These hedging instruments have terms identical to forward-starting swaps entered into by PPL with third parties. See Note 14 for additional information on intercompany derivatives. | |||||||||||||
Other (PPL Electric, LG&E and KU) | |||||||||||||
See Note 9 for discussions regarding intercompany allocations associated with defined benefits. | |||||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Related Party Transactions | 11. Related Party Transactions | ||||||||||||
PLR Contracts/Purchase of Accounts Receivable (PPL Electric) | |||||||||||||
PPL Electric holds competitive solicitations for PLR generation supply. PPL EnergyPlus has been awarded a portion of the PLR generation supply through these competitive solicitations. The purchases from PPL EnergyPlus are included in PPL Electric's Statements of Income as "Energy purchases from affiliate". | |||||||||||||
Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppliers to post collateral once credit exposures exceed defined credit limits. PPL EnergyPlus is required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by PPL EnergyPlus exceeds the contract price for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit. PPL EnergyPlus does not have an established credit limit. At March 31, 2015, PPL EnergyPlus was not required to post collateral. In no instance is PPL Electric required to post collateral to suppliers under these supply contracts. | |||||||||||||
PPL Electric's customers may choose an alternative supplier for their generation supply. See Note 2 for additional information regarding PPL Electric's purchases of accounts receivable from alternative suppliers, including PPL EnergyPlus. | |||||||||||||
Support Costs (All Registrants except PPL) | |||||||||||||
PPL Services and LKS provide their respective PPL and LKE subsidiaries with administrative, management and support services. In 2015, PPL EU Services was formed to provide the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services will continue to provide certain corporate functions. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | |||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS. | |||||||||||||
Intercompany Borrowings (LKE) | |||||||||||||
LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At March 31, 2015 and December 31, 2014, $40 and $41 million were outstanding and were reflected in “Notes payable with affiliates” on the consolidated Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2015 and December 31, 2014 were 1.67% and 1.65%. Interest on the revolving line of credit was not significant for the three months ended March 31, 2015 and 2014. | |||||||||||||
Intercompany Derivatives (LKE, LG&E and KU) | |||||||||||||
Periodically, LG&E and KU enter into forward-starting interest rate swaps with PPL. These hedging instruments have terms identical to forward-starting swaps entered into by PPL with third parties. See Note 14 for additional information on intercompany derivatives. | |||||||||||||
Other (PPL Electric, LG&E and KU) | |||||||||||||
See Note 9 for discussions regarding intercompany allocations associated with defined benefits. | |||||||||||||
Kentucky Utilities Co [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Related Party Transactions | 11. Related Party Transactions | ||||||||||||
PLR Contracts/Purchase of Accounts Receivable (PPL Electric) | |||||||||||||
PPL Electric holds competitive solicitations for PLR generation supply. PPL EnergyPlus has been awarded a portion of the PLR generation supply through these competitive solicitations. The purchases from PPL EnergyPlus are included in PPL Electric's Statements of Income as "Energy purchases from affiliate". | |||||||||||||
Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppliers to post collateral once credit exposures exceed defined credit limits. PPL EnergyPlus is required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by PPL EnergyPlus exceeds the contract price for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit. PPL EnergyPlus does not have an established credit limit. At March 31, 2015, PPL EnergyPlus was not required to post collateral. In no instance is PPL Electric required to post collateral to suppliers under these supply contracts. | |||||||||||||
PPL Electric's customers may choose an alternative supplier for their generation supply. See Note 2 for additional information regarding PPL Electric's purchases of accounts receivable from alternative suppliers, including PPL EnergyPlus. | |||||||||||||
Support Costs (All Registrants except PPL) | |||||||||||||
PPL Services and LKS provide their respective PPL and LKE subsidiaries with administrative, management and support services. In 2015, PPL EU Services was formed to provide the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services will continue to provide certain corporate functions. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | |||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS. | |||||||||||||
Intercompany Borrowings (LKE) | |||||||||||||
LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At March 31, 2015 and December 31, 2014, $40 and $41 million were outstanding and were reflected in “Notes payable with affiliates” on the consolidated Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2015 and December 31, 2014 were 1.67% and 1.65%. Interest on the revolving line of credit was not significant for the three months ended March 31, 2015 and 2014. | |||||||||||||
Intercompany Derivatives (LKE, LG&E and KU) | |||||||||||||
Periodically, LG&E and KU enter into forward-starting interest rate swaps with PPL. These hedging instruments have terms identical to forward-starting swaps entered into by PPL with third parties. See Note 14 for additional information on intercompany derivatives. | |||||||||||||
Other (PPL Electric, LG&E and KU) | |||||||||||||
See Note 9 for discussions regarding intercompany allocations associated with defined benefits. |
Other_Income_Expense_net
Other Income (Expense) - net | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Other Income (Expense) Net [Abstract] | |||||||||||||||
Other Income (Expense) - net | 12. Other Income (Expense) - net | ||||||||||||||
(PPL) | |||||||||||||||
The components of "Other Income (Expense) - net" for the periods ended March 31 were: | |||||||||||||||
Three Months | |||||||||||||||
2015 | 2014 | ||||||||||||||
Other Income | |||||||||||||||
Earnings on securities in NDT funds | $ | 7 | $ | 6 | |||||||||||
Interest income | 1 | 1 | |||||||||||||
AFUDC - equity component | 4 | 3 | |||||||||||||
Miscellaneous | 5 | 2 | |||||||||||||
Total Other Income | 17 | 12 | |||||||||||||
Other Expense | |||||||||||||||
Economic foreign currency exchange contracts (Note 14) | -88 | 24 | |||||||||||||
Charitable contributions | 5 | 7 | |||||||||||||
Spinoff of PPL Energy Supply transaction costs (Note 8) | 2 | ||||||||||||||
Miscellaneous | 3 | 4 | |||||||||||||
Total Other Expense | -78 | 35 | |||||||||||||
Other Income (Expense) - net | $ | 95 | $ | -23 | |||||||||||
(All Registrants except PPL) | |||||||||||||||
The components of "Other Income (Expense) - net" for the three months ended March 31, 2015 and 2014 for PPL Electric, LKE, LG&E and KU were not significant. |
Fair_Value_Measurements_and_Cr
Fair Value Measurements and Credit Concentration | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Fair Value Measurements and Credit Concentration [Abstract] | |||||||||||||||||||||||||||||
Fair Value Measurements and Credit Concentration | 13. Fair Value Measurements and Credit Concentration | ||||||||||||||||||||||||||||
(All Registrants) | |||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models), and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. Transfers between levels are recognized at end-of-reporting-period values. During the three months ended March 31, 2015 and 2014, there were no transfers between Level 1 and Level 2. See Note 1 in each Registrant's 2014 Form 10-K for information on the levels in the fair value hierarchy. | |||||||||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||||||||
The assets and liabilities measured at fair value were: | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,335 | $ | 1,335 | $ | 1,751 | $ | 1,751 | |||||||||||||||||||||
Short-term investments | 135 | 135 | 120 | 120 | |||||||||||||||||||||||||
Restricted cash and cash equivalents (a) | 231 | 231 | 224 | 224 | |||||||||||||||||||||||||
Price risk management assets: | |||||||||||||||||||||||||||||
Energy commodities | 1,298 | 2 | $ | 1,136 | $ | 160 | 1,318 | 6 | $ | 1,171 | $ | 141 | |||||||||||||||||
Foreign currency contracts | 209 | 209 | 130 | 130 | |||||||||||||||||||||||||
Cross-currency swaps | 49 | 49 | 29 | 28 | 1 | ||||||||||||||||||||||||
Total price risk management assets | 1,556 | 2 | 1,394 | 160 | 1,477 | 6 | 1,329 | 142 | |||||||||||||||||||||
NDT funds: | |||||||||||||||||||||||||||||
Cash and cash equivalents | 20 | 20 | 19 | 19 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
U.S. large-cap | 620 | 461 | 159 | 611 | 454 | 157 | |||||||||||||||||||||||
U.S. mid/small-cap | 93 | 38 | 55 | 89 | 37 | 52 | |||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||||||
U.S. Treasury | 97 | 97 | 99 | 99 | |||||||||||||||||||||||||
U.S. government sponsored agency | 8 | 8 | 9 | 9 | |||||||||||||||||||||||||
Municipality | 76 | 76 | 76 | 76 | |||||||||||||||||||||||||
Investment-grade corporate | 45 | 45 | 42 | 42 | |||||||||||||||||||||||||
Other | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||
Receivables (payables), net | 3 | 1 | 2 | 2 | 2 | ||||||||||||||||||||||||
Total NDT funds | 965 | 617 | 348 | 950 | 609 | 341 | |||||||||||||||||||||||
Auction rate securities (b) | 10 | 10 | 10 | 10 | |||||||||||||||||||||||||
Total assets | $ | 4,232 | $ | 2,320 | $ | 1,742 | $ | 170 | $ | 4,532 | $ | 2,710 | $ | 1,670 | $ | 152 | |||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Energy commodities | $ | 1,163 | $ | 2 | $ | 1,130 | $ | 31 | $ | 1,217 | $ | 5 | $ | 1,182 | $ | 30 | |||||||||||||
Interest rate swaps | 235 | 235 | 156 | 156 | |||||||||||||||||||||||||
Foreign currency contracts | 6 | 6 | 2 | 2 | |||||||||||||||||||||||||
Cross-currency swaps | 2 | 2 | 3 | 3 | |||||||||||||||||||||||||
Total price risk management liabilities | $ | 1,406 | $ | 2 | $ | 1,373 | $ | 31 | $ | 1,378 | $ | 5 | $ | 1,343 | $ | 30 | |||||||||||||
PPL Electric | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 35 | $ | 214 | $ | 214 | |||||||||||||||||||||
Restricted cash and cash equivalents (c) | 2 | 2 | 3 | 3 | |||||||||||||||||||||||||
Total assets | $ | 37 | $ | 37 | $ | 217 | $ | 217 | |||||||||||||||||||||
LKE | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40 | $ | 40 | $ | 21 | $ | 21 | |||||||||||||||||||||
Cash collateral posted to counterparties (d) | 22 | 22 | 21 | 21 | |||||||||||||||||||||||||
Total assets | $ | 62 | $ | 62 | $ | 42 | $ | 42 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 174 | $ | 174 | $ | 114 | $ | 114 | |||||||||||||||||||||
Total price risk management liabilities | $ | 174 | $ | 174 | $ | 114 | $ | 114 | |||||||||||||||||||||
LG&E | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17 | $ | 17 | $ | 10 | $ | 10 | |||||||||||||||||||||
Cash collateral posted to counterparties (d) | 22 | 22 | 21 | 21 | |||||||||||||||||||||||||
Total assets | $ | 39 | $ | 39 | $ | 31 | $ | 31 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 113 | $ | 113 | $ | 81 | $ | 81 | |||||||||||||||||||||
Total price risk management liabilities | $ | 113 | $ | 113 | $ | 81 | $ | 81 | |||||||||||||||||||||
KU | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 23 | $ | 23 | $ | 11 | $ | 11 | |||||||||||||||||||||
Total assets | $ | 23 | $ | 23 | $ | 11 | $ | 11 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 61 | $ | 33 | $ | 33 | |||||||||||||||||||||
Total price risk management liabilities | $ | 61 | $ | 61 | $ | 33 | $ | 33 | |||||||||||||||||||||
(a) Current portion is included in "Restricted cash and cash equivalents" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||||||||||||||||||||||||||||
(b) Included in "Other investments" on the Balance Sheets. | |||||||||||||||||||||||||||||
(c) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||||||||||||||||||||||||||||
(d) Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset. | |||||||||||||||||||||||||||||
A reconciliation of net assets and liabilities classified as Level 3 for the three months ended March 31 is as follows: | |||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Energy | Auction | Cross- | Energy | Auction | Cross- | ||||||||||||||||||||||||
Commodities, | Rate | Currency | Commodities, | Rate | Currency | ||||||||||||||||||||||||
net | Securities | Swaps | Total | net | Securities | Swaps | Total | ||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Balance at beginning of | |||||||||||||||||||||||||||||
period | $ | 111 | $ | 10 | $ | 1 | $ | 122 | $ | 24 | $ | 19 | $ | 43 | |||||||||||||||
Total realized/unrealized | |||||||||||||||||||||||||||||
gains (losses) | |||||||||||||||||||||||||||||
Included in earnings | -17 | -17 | -135 | -135 | |||||||||||||||||||||||||
Included in OCI (a) | 6 | 6 | $ | -1 | -1 | ||||||||||||||||||||||||
Sales | -3 | -3 | |||||||||||||||||||||||||||
Settlements | 30 | 30 | 128 | 128 | |||||||||||||||||||||||||
Transfers into Level 3 | 4 | 4 | |||||||||||||||||||||||||||
Transfers out of Level 3 | 1 | -7 | -6 | 1 | 1 | ||||||||||||||||||||||||
Balance at end of period | $ | 129 | $ | 10 | $ | $ | 139 | $ | 17 | $ | 16 | $ | $ | 33 | |||||||||||||||
(a) "Energy Commodities, net" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income. | |||||||||||||||||||||||||||||
The significant unobservable inputs used in and quantitative information about the fair value measurement of assets and liabilities classified as Level 3 are as follows: | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Fair Value, net | Range | ||||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Energy commodities | |||||||||||||||||||||||||||||
Natural gas contracts (b) | $ | 49 | Discounted cash flow | Proprietary model used to calculate forward prices | 11% - 100% (43%) | ||||||||||||||||||||||||
Power sales contracts (c) | 1 | Discounted cash flow | Proprietary model used to calculate forward prices | 10% - 100% (82%) | |||||||||||||||||||||||||
Heat rate options (e) | 79 | Discounted cash flow | Proprietary model used to calculate forward prices | 22% - 44% (40%) | |||||||||||||||||||||||||
Auction rate securities (f) | 10 | Discounted cash flow | Modeled from SIFMA Index | 41% - 69% (53%) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Fair Value, net | Range | ||||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Energy commodities | |||||||||||||||||||||||||||||
Natural gas contracts (b) | $ | 59 | Discounted cash flow | Proprietary model used to calculate forward prices | 11% - 100% (52%) | ||||||||||||||||||||||||
Power sales contracts (c) | -1 | Discounted cash flow | Proprietary model used to calculate forward prices | 10% - 100% (59%) | |||||||||||||||||||||||||
FTR purchase contracts (d) | 3 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||||||||||||||||||
Heat rate options (e) | 50 | Discounted cash flow | Proprietary model used to calculate forward prices | 23% - 51% (45%) | |||||||||||||||||||||||||
Auction rate securities (f) | 10 | Discounted cash flow | Modeled from SIFMA Index | 44% - 69% (63%) | |||||||||||||||||||||||||
Cross-currency swaps (g) | 1 | Discounted cash flow | Credit valuation adjustment | 15% (15%) | |||||||||||||||||||||||||
(a) For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs. For cross-currency swaps, the range and weighted average represent the percentage change in fair value due to the unobservable inputs used in the model to calculate the credit valuation adjustment. | |||||||||||||||||||||||||||||
(b) As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases. | |||||||||||||||||||||||||||||
(c) As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases. | |||||||||||||||||||||||||||||
(d) As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases). | |||||||||||||||||||||||||||||
(e) The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of the contracts increases/(decreases). | |||||||||||||||||||||||||||||
(f) The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases). | |||||||||||||||||||||||||||||
(g) The credit valuation adjustment incorporates projected probabilities of default and estimated recovery rates. As the credit valuation adjustment increases/(decreases), the fair value of the swaps (decreases)/increases. | |||||||||||||||||||||||||||||
Net gains and losses on assets and liabilities classified as Level 3 and included in earnings for the three months ended are reported in the Statements of Income as follows: | |||||||||||||||||||||||||||||
Energy Commodities, net | |||||||||||||||||||||||||||||
Unregulated | Unregulated | Energy | |||||||||||||||||||||||||||
Wholesale Energy | Retail Energy | Purchases | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Total gains (losses) included in earnings | $ | 21 | $ | -89 | $ | -40 | $ | -63 | $ | 2 | $ | 17 | |||||||||||||||||
Change in unrealized gains (losses) relating | |||||||||||||||||||||||||||||
to positions still held at the reporting date | 25 | -13 | -9 | -33 | 1 | 1 | |||||||||||||||||||||||
Price Risk Management Assets/Liabilities - Energy Commodities (PPL) | |||||||||||||||||||||||||||||
Energy commodity contracts are generally valued using the income approach, except for exchange-traded derivative contracts, which are valued using the market approach and are classified as Level 1. Level 2 contracts are valued using inputs which may include quotes obtained from an exchange (where there is insufficient market liquidity to warrant inclusion in Level 1), binding and non-binding broker quotes, prices posted by ISOs or published tariff rates. Furthermore, independent quotes are obtained from the market to validate the forward price curves. Energy commodity contracts include forwards, futures, swaps, options and structured transactions and may be offset with similar positions in exchange-traded markets. To the extent possible, fair value measurements utilize various inputs that include quoted prices for similar contracts or market-corroborated inputs. In certain instances, these contracts may be valued using models, including standard option valuation models and other standard industry models. When the lowest level inputs that are significant to the fair value measurement of a contract are observable, the contract is classified as Level 2. | |||||||||||||||||||||||||||||
When unobservable inputs are significant to the fair value measurement, a contract is classified as Level 3. Level 3 contracts are valued using PPL proprietary models which may include significant unobservable inputs such as delivery at a location where pricing is unobservable, delivery dates that are beyond the dates for which independent quotes are available, volumetric assumptions, implied volatilities, implied correlations, and market implied heat rates. Forward transactions, including forward transactions classified as Level 3, are analyzed by PPL's Risk Management department. Accounting personnel interpret the analysis quarterly to appropriately classify the forward transactions in the fair value hierarchy. Valuation techniques are evaluated periodically. Additionally, Level 2 and Level 3 fair value measurements include adjustments for credit risk based on PPL's own creditworthiness (for net liabilities) and its counterparties' creditworthiness (for net assets). PPL's credit department assesses all reasonably available market information which is used by accounting personnel to calculate the credit valuation adjustment. | |||||||||||||||||||||||||||||
In certain instances, energy commodity contracts are transferred between Level 2 and Level 3. The primary reasons for the transfers during 2015 were changes in the availability of market information and changes in the significance of the unobservable inputs utilized in the valuation of the contracts. | |||||||||||||||||||||||||||||
Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps (PPL, LKE, LG&E and KU) | |||||||||||||||||||||||||||||
To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency exchange risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3. For PPL, the primary reason for the transfers between Level 2 and Level 3 during 2015 and 2014 was the change in the significance of the credit valuation adjustment. Cross-currency swaps are valued by PPL's Treasury department. Accounting personnel interpret analysis quarterly to classify the contracts in the fair value hierarchy. Valuation techniques are evaluated periodically. | |||||||||||||||||||||||||||||
(PPL) | |||||||||||||||||||||||||||||
NDT Funds | |||||||||||||||||||||||||||||
The market approach is used to measure the fair value of equity securities held in the NDT funds. | |||||||||||||||||||||||||||||
The fair value measurements of equity securities classified as Level 1 are based on quoted prices in active markets. | |||||||||||||||||||||||||||||
The fair value measurements of investments in commingled equity funds are classified as Level 2. These fair value measurements are based on firm quotes of net asset values per share, which are not obtained from a quoted price in an active market. | |||||||||||||||||||||||||||||
The fair value of debt securities is generally measured using a market approach, including the use of pricing models which incorporate observable inputs. Common inputs include benchmark yields, relevant trade data, broker/dealer bid/ask prices, benchmark securities and credit valuation adjustments. When necessary, the fair value of debt securities is measured using the income approach, which incorporates similar observable inputs as well as payment data, future predicted cash flows, collateral performance and new issue data. | |||||||||||||||||||||||||||||
Auction Rate Securities | |||||||||||||||||||||||||||||
Auction rate securities include Federal Family Education Loan Program guaranteed student loan revenue bonds, as well as various municipal bond issues. The probability of realizing losses on these securities is not significant. | |||||||||||||||||||||||||||||
The fair value of auction rate securities is estimated using an income approach that includes readily observable inputs, such as principal payments and discount curves for bonds with credit ratings and maturities similar to the securities, and unobservable inputs, such as future interest rates that are estimated based on the SIFMA Index, creditworthiness, and liquidity assumptions driven by the impact of auction failures. When the present value of future interest payments is significant to the overall valuation, the auction rate securities are classified as Level 3. | |||||||||||||||||||||||||||||
Auction rate securities are valued by PPL’s Treasury department. Accounting personnel interpret the analysis quarterly to classify the contracts in the fair value hierarchy. Valuation techniques are evaluated periodically. | |||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements (PPL) | |||||||||||||||||||||||||||||
The following nonrecurring fair value measurement occurred during the three months ended March 31, 2014, resulting in an asset impairment: | |||||||||||||||||||||||||||||
Carrying | Fair Value Measurements Using | ||||||||||||||||||||||||||||
Amount (a) | Level 3 | Loss (b) | |||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Kerr Dam Project | $ | 47 | $ | 29 | $ | 18 | |||||||||||||||||||||||
(a) Represents carrying value before fair value measurement. | |||||||||||||||||||||||||||||
(b) The loss on the Kerr Dam Project was recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the 2014 Statement of Income. | |||||||||||||||||||||||||||||
The significant unobservable inputs used in and the quantitative information about the nonrecurring fair value measurement of assets and liabilities classified as Level 3 are as follows: | |||||||||||||||||||||||||||||
Fair Value, net | Significant | Range | |||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average)(a) | ||||||||||||||||||||||||||
Kerr Dam Project | |||||||||||||||||||||||||||||
31-Mar-14 | $ | 29 | Discounted cash flow | Proprietary model used to calculate plant value | 38% (38%) | ||||||||||||||||||||||||
(a) The range and weighted average represent the percentage of fair value derived from the unobservable inputs. | |||||||||||||||||||||||||||||
Kerr Dam Project | |||||||||||||||||||||||||||||
PPL Montana previously held a joint operating license issued for the Kerr Dam Project. The license extends until 2035 and, between 2015 and 2025, the Confederated Salish and Kootenai Tribes of the Flathead Nation (the Tribes) have the option to purchase, hold and operate the Kerr Dam Project. The parties submitted the issue of the appropriate amount of the conveyance price to arbitration in February 2013. In March 2014, the arbitration panel issued its final decision holding that the conveyance price payable by the Tribes for the Kerr Dam Project is $18 million. As a result of the decision, PPL Energy Supply performed a recoverability test on the Kerr Dam Project and recorded an impairment charge. PPL Energy Supply performed an internal analysis using an income approach based on discounted cash flows (a PPL proprietary model) to assess the fair value of the Kerr Dam Project. Assumptions used in the PPL proprietary model were the conveyance price, forward energy price curves, forecasted generation, and forecasted operation and maintenance expenditures that were consistent with assumptions used in the business planning process and a market participant discount rate. Through this analysis, PPL Energy Supply determined the fair value of the Kerr Dam Project to be $29 million at March 31, 2014. The Kerr Dam Project was included in the sale of the Montana Hydroelectric facilities and the assets were removed from the Balance Sheet. See Note 8 for additional information. | |||||||||||||||||||||||||||||
The assets were valued by the PPL Energy Supply Financial Department. Accounting personnel interpreted the analysis to appropriately classify the assets in the fair value hierarchy. | |||||||||||||||||||||||||||||
Financial Instruments Not Recorded at Fair Value (All Registrants) | |||||||||||||||||||||||||||||
The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. The fair values were estimated using an income approach by discounting future cash flows at estimated current cost of funding rates, which incorporate the credit risk of the Registrants. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Carrying | Carrying | ||||||||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||||||||
PPL | $ | 20,307 | $ | 23,258 | $ | 20,391 | $ | 22,670 | |||||||||||||||||||||
PPL Electric | 2,603 | 3,084 | 2,602 | 2,990 | |||||||||||||||||||||||||
LKE | 4,567 | 5,091 | 4,567 | 4,946 | |||||||||||||||||||||||||
LG&E | 1,353 | 1,493 | 1,353 | 1,455 | |||||||||||||||||||||||||
KU | 2,091 | 2,396 | 2,091 | 2,313 | |||||||||||||||||||||||||
The carrying value of short-term debt (including notes between affiliates), when outstanding, approximates fair value due to the variable interest rates associated with the short-term debt and is classified as Level 2. | |||||||||||||||||||||||||||||
Credit Concentration Associated with Financial Instruments | |||||||||||||||||||||||||||||
(All Registrants) | |||||||||||||||||||||||||||||
Contracts are entered into with many entities for the purchase and sale of energy. When NPNS is elected, the fair value of these contracts is not reflected in the financial statements. However, the fair value of these contracts is considered when committing to new business from a credit perspective. See Note 14 for information on credit policies used to manage credit risk, including master netting arrangements and collateral requirements. | |||||||||||||||||||||||||||||
(PPL) | |||||||||||||||||||||||||||||
At March 31, 2015, PPL had credit exposure of $692 million from energy trading partners, excluding the effects of netting arrangements, reserves and collateral. As a result of netting arrangements, reserves and collateral, PPL's credit exposure was reduced to $402 million. The top ten counterparties including their affiliates accounted for $220 million, or 55%, of these exposures. Eight of these counterparties had an investment grade credit rating from S&P or Moody's and accounted for 75% of the top ten exposures. The remaining counterparties are rated below investment grade, but are current on their obligations. | |||||||||||||||||||||||||||||
(PPL Electric) | |||||||||||||||||||||||||||||
PPL Electric is exposed to credit risk under energy supply contracts (including its supply contracts with PPL EnergyPlus); however, its PUC-approved recovery mechanism is anticipated to substantially mitigate this exposure. | |||||||||||||||||||||||||||||
(LKE, LG&E and KU) | |||||||||||||||||||||||||||||
At March 31, 2015, LKE's, LG&E's and KU's credit exposure was not significant. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | 14. Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||
Risk Management Objectives | ||||||||||||||||||||||||||||||
(All Registrants) | ||||||||||||||||||||||||||||||
PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances and foreign exchange (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The RMC, comprised of senior management and chaired by the Chief Risk Officer, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions and market prices, verification of risk and transaction limits, VaR analyses, portfolio stress tests, gross margin at risk analyses, sensitivity analyses and daily portfolio reporting, including open positions, determinations of fair value, and other risk management metrics. | ||||||||||||||||||||||||||||||
Market Risk | ||||||||||||||||||||||||||||||
Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, volumes of full-requirement sales contracts, basis exposure, interest rates and foreign currency exchange rates. Many of the contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected. | ||||||||||||||||||||||||||||||
The table below summarizes the market risks that affect PPL and its Subsidiary Registrants. | ||||||||||||||||||||||||||||||
PPL | PPL Electric | LKE | LG&E | KU | ||||||||||||||||||||||||||
Commodity price risk (including basis and volumetric risk) | X | M | M | M | M | |||||||||||||||||||||||||
Interest rate risk: | ||||||||||||||||||||||||||||||
Debt issuances | X | M | M | M | M | |||||||||||||||||||||||||
Defined benefit plans | X | M | M | M | M | |||||||||||||||||||||||||
NDT securities | X | |||||||||||||||||||||||||||||
Equity securities price risk: | ||||||||||||||||||||||||||||||
Defined benefit plans | X | M | M | M | M | |||||||||||||||||||||||||
NDT securities | X | |||||||||||||||||||||||||||||
Future stock transactions | X | |||||||||||||||||||||||||||||
Foreign currency risk - WPD investment and earnings | X | |||||||||||||||||||||||||||||
X =PL actively mitigates market risks through its risk management programs described above. | ||||||||||||||||||||||||||||||
M =he regulatory environments for PPL's regulated entities, by definition, significantly mitigate market risk. | ||||||||||||||||||||||||||||||
Commodity price risk | ||||||||||||||||||||||||||||||
PPL is exposed to commodity price risk through its domestic subsidiaries as described below. WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. | ||||||||||||||||||||||||||||||
PPL is exposed to commodity price risk for energy and energy-related products associated with the sale of electricity from its generating assets and other electricity and gas marketing activities and the purchase of fuel and fuel-related commodities for generating assets, as well as for proprietary trading activities. | ||||||||||||||||||||||||||||||
PPL Electric is exposed to commodity price risk from its obligation as PLR; however, its PUC-approved cost recovery mechanism substantially eliminates its exposure to this risk. PPL Electric also mitigates its exposure to volumetric risk by entering into full-requirement supply agreements to serve its PLR customers. These supply agreements transfer the volumetric risk associated with the PLR obligation to the energy suppliers. | ||||||||||||||||||||||||||||||
LG&E's and KU's rates include certain mechanisms for fuel and environmental expenses. In addition, LG&E's rates include certain mechanisms for gas supply. These mechanisms generally provide for timely recovery of market price and volumetric fluctuations associated with these expenses. | ||||||||||||||||||||||||||||||
Interest rate risk | ||||||||||||||||||||||||||||||
PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. WPD holds over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. LG&E utilizes over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt, and LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuances. | ||||||||||||||||||||||||||||||
PPL and its subsidiaries are exposed to interest rate risk associated with debt securities held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place. Additionally, PPL is exposed to interest rate risk associated with debt securities held by the NDT. | ||||||||||||||||||||||||||||||
Equity securities price risk | ||||||||||||||||||||||||||||||
PPL and its subsidiaries are exposed to equity securities price risk associated with defined benefit plans. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place. Additionally, PPL is exposed to equity securities price risk in the NDT funds. | ||||||||||||||||||||||||||||||
PPL is exposed to equity securities price risk from future stock sales and/or purchases. | ||||||||||||||||||||||||||||||
Foreign currency risk | ||||||||||||||||||||||||||||||
PPL is exposed to foreign currency exchange risk primarily associated with its investments in and earnings of U.K. affiliates. | ||||||||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||
Credit risk is the potential loss that may be incurred due to a counterparty's non-performance. | ||||||||||||||||||||||||||||||
PPL is exposed to credit risk from "in-the-money" interest rate and foreign currency derivatives with financial institutions, as well as additional credit risk through certain of its subsidiaries, as discussed below. | ||||||||||||||||||||||||||||||
PPL is exposed to credit risk from "in-the-money" commodity derivatives with its energy trading partners, which include other energy companies, fuel suppliers, financial institutions, other wholesale customers and retail customers. | ||||||||||||||||||||||||||||||
The majority of PPL's credit risk stems from commodity derivatives for multi-year contracts for energy sales and purchases entered into by PPL Energy Supply. If PPL Energy Supply's counterparties fail to perform their obligations under such contracts and PPL Energy Supply could not replace the sales or purchases at the same or better prices as those under the defaulted contracts, PPL Energy Supply would incur financial losses. Those losses would be recognized immediately or through lower revenues or higher costs in future years, depending on the accounting treatment for the defaulted contracts. In the event a supplier of LKE (through its subsidiaries LG&E and KU) or PPL Electric defaults on its obligation, those entities would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thus mitigating the financial risk for these entities. | ||||||||||||||||||||||||||||||
PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit. See Note 13 for credit concentration associated with energy trading partners. | ||||||||||||||||||||||||||||||
Master Netting Arrangements | ||||||||||||||||||||||||||||||
Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements. | ||||||||||||||||||||||||||||||
PPL's obligation to return counterparty cash collateral under master netting arrangements was $11 million at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||
PPL Electric, LKE and LG&E had no obligation to return cash collateral under master netting arrangements at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||
PPL, LKE and LG&E posted $22 million and $21 million of cash collateral under master netting arrangements at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||
PPL Electric and KU did not post any cash collateral under master netting arrangements at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||
See "Offsetting Derivative Investments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements. | ||||||||||||||||||||||||||||||
(PPL) | ||||||||||||||||||||||||||||||
Commodity Price Risk (Non-trading) | ||||||||||||||||||||||||||||||
Commodity price risk, including basis and volumetric risk, is among PPL's most significant risks due to the level of investment that PPL Energy Supply maintains in its competitive generation assets, as well as the extent of its marketing activities. Several factors influence price levels and volatilities. These factors include, but are not limited to, seasonal changes in demand, weather conditions, available generating assets within regions, transportation/transmission availability and reliability within and between regions, market liquidity, and the nature and extent of current and potential federal and state regulations. | ||||||||||||||||||||||||||||||
PPL Energy Supply maximizes the value of its unregulated wholesale and unregulated retail energy portfolios through the use of non-trading strategies that include sales of competitive baseload generation, optimization of competitive intermediate and peaking generation and marketing activities. | ||||||||||||||||||||||||||||||
PPL Energy Supply has a formal hedging program to economically hedge the forecasted purchase and sale of electricity and related fuels for its competitive baseload generation fleet, which includes 6,496 MW (summer rating) of nuclear, coal and hydroelectric generating capacity. PPL Energy Supply attempts to optimize the overall value of its competitive intermediate and peaking fleet, which includes 3,252 MW (summer rating) of natural gas and oil-fired generation. PPL Energy Supply's marketing portfolio is comprised of full-requirement sales contracts and related supply contracts, retail natural gas and electricity sales contracts and other marketing activities. The strategies that PPL Energy Supply uses to hedge its full-requirement sales contracts include purchasing energy (at a liquid trading hub or directly at the load delivery zone), capacity and RECs in the market and/or supplying the energy, capacity and RECs from its generation assets. | ||||||||||||||||||||||||||||||
PPL Energy Supply enters into financial and physical derivative contracts, including forwards, futures, swaps and options, to hedge the price risk associated with electricity, natural gas, oil and other commodities. Certain contracts are non-derivatives or NPNS is elected and therefore they are not reflected in the financial statements until delivery. PPL Energy Supply segregates its non-trading activities into two categories: cash flow hedges and economic activity as discussed below. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
Certain derivative contracts have qualified for hedge accounting so that the effective portion of a derivative's gain or loss is deferred in AOCI and reclassified into earnings when the forecasted transaction occurs. In 2015 and 2014, there were no active cash flow hedges and there was no hedge ineffectiveness associated with energy derivatives. At March 31, 2015, the accumulated net unrecognized after-tax gains (losses) that are expected to be reclassified into earnings during the next 12 months were $18 million. Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time periods and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedge transaction is probable of not occurring. There were no such reclassifications for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||
Economic Activity | ||||||||||||||||||||||||||||||
Many derivative contracts economically hedge the commodity price risk associated with electricity, natural gas, oil and other commodities but do not receive hedge accounting treatment because they were not eligible for hedge accounting or because hedge accounting was not elected. These derivatives hedge a portion of the economic value of PPL Energy Supply's competitive generation assets and unregulated full-requirement and retail contracts, which are subject to changes in fair value due to market price volatility and volume expectations. The derivative contracts in this category that existed at March 31, 2015 range in maturity through 2020. | ||||||||||||||||||||||||||||||
Examples of economic activity may include hedges on sales of baseload generation, certain purchase contracts used to supply full-requirement sales contracts, FTRs or basis swaps used to hedge basis risk associated with the sale of competitive generation or supplying full-requirement sales contracts, Spark Spread hedging contracts, retail electric and natural gas activities, and fuel oil swaps used to hedge price escalation clauses in coal transportation and other fuel-related contracts. PPL Energy Supply also uses options, which include the sale of call options and the purchase of put options tied to a particular generating unit. Since the physical generating capacity is owned, price exposure is generally capped at the price at which the generating unit would be dispatched and therefore does not expose PPL Energy Supply to uncovered market price risk. | ||||||||||||||||||||||||||||||
The unrealized gains (losses) for economic activity for the periods ended March 31 were as follows. | ||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||
Unregulated wholesale energy | $ | -92 | $ | -789 | ||||||||||||||||||||||||||
Unregulated retail energy | -13 | -26 | ||||||||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||
Fuel | -1 | |||||||||||||||||||||||||||||
Energy purchases | 145 | 580 | ||||||||||||||||||||||||||||
Commodity Price Risk (Trading) | ||||||||||||||||||||||||||||||
PPL Energy Supply has a proprietary trading strategy which is utilized to take advantage of market opportunities primarily in its geographic footprint. As a result, PPL Energy Supply may at times create a net open position in its portfolio that could result in losses if prices do not move in the manner or direction anticipated. Net energy trading margins, which are included in "Unregulated wholesale energy" on the Statements of Income, were insignificant for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||
Commodity Volumes | ||||||||||||||||||||||||||||||
At March 31, 2015, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows. | ||||||||||||||||||||||||||||||
Volumes (a) | ||||||||||||||||||||||||||||||
Commodity | Unit of Measure | 2015 (b) | 2016 | 2017 | Thereafter | |||||||||||||||||||||||||
Power | MWh | -30,874,062 | -8,521,382 | -248,329 | 2,236,333 | |||||||||||||||||||||||||
Capacity | MW-Month | -3,998 | -878 | 6 | 3 | |||||||||||||||||||||||||
Gas | MMBtu | 157,995,389 | 87,545,701 | 13,742,416 | 20,314,625 | |||||||||||||||||||||||||
FTRs | MW-Month | 532 | ||||||||||||||||||||||||||||
Oil | Barrels | 300,328 | 387,429 | 257,483 | 60,000 | |||||||||||||||||||||||||
(a) Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option. | ||||||||||||||||||||||||||||||
(b) Represents balance of the current year. | ||||||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||||||
(PPL, LKE, LG&E and KU) | ||||||||||||||||||||||||||||||
PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. Various financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolio, adjust the duration of the debt portfolio and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
(PPL) | ||||||||||||||||||||||||||||||
Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. At March 31, 2015, PPL held an aggregate notional value in interest rate swap contracts of $1.6 billion that range in maturity through 2045. The amount outstanding includes swaps entered into by PPL on behalf of LG&E and KU. Realized gains and losses on the LG&E and KU swaps are probable of recovery through regulated rates; as such, any gains and losses on these derivatives are included in regulatory assets or liabilities and will be recognized in "Interest Expense" on the Statements of Income over the life of the underlying debt at the time the underlying hedged interest expense is recorded. | ||||||||||||||||||||||||||||||
At March 31, 2015, PPL held an aggregate notional value in cross-currency interest rate swap contracts of $1.3 billion that range in maturity from 2016 through 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. | ||||||||||||||||||||||||||||||
For the three months ended March 31, 2015, PPL had no hedge ineffectiveness associated with interest rate derivatives and an insignificant amount for the three months ended March 31, 2014. | ||||||||||||||||||||||||||||||
Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is probable of not occurring. PPL had no such reclassifications for the three months ended March 31, 2015 associated with discontinued cash flow hedges and an insignificant amount reclassified for the three months ended March 31, 2014. | ||||||||||||||||||||||||||||||
At March 31, 2015, the accumulated net unrecognized after-tax gains (losses) on qualifying derivatives that are expected to be reclassified into earnings during the next 12 months were $(13) million. In addition, see Note 8 for unamortized losses on PPL interest rate swaps expected to be reclassified into earnings and reflected in discontinued operations at the close of the spinoff transaction. Amounts are reclassified as the hedged interest expense is recorded. | ||||||||||||||||||||||||||||||
(LKE, LG&E and KU) | ||||||||||||||||||||||||||||||
Periodically, LG&E and KU enter into forward-starting interest rate swaps with PPL that have terms identical to forward-starting swaps entered into by PPL with third parties. Realized gains and losses on all of these swaps are probable of recovery through regulated rates; as such, any gains and losses on these derivatives are included in regulatory assets or liabilities and will be recognized in “Interest Expense” on the Statements of Income over the life of the underlying debt at the time the underlying hedged interest expense is recorded. At March 31, 2015, the total notional amount of forward starting interest rate swaps outstanding was $1 billion (LG&E and KU each held contracts of $500 million). The swaps range in maturity through 2045. | ||||||||||||||||||||||||||||||
Economic Activity (PPL, LKE and LG&E) | ||||||||||||||||||||||||||||||
LG&E enters into interest rate swap contracts that economically hedge interest payments on variable rate debt. Because realized gains and losses from the swaps, including a terminated swap contract, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At March 31, 2015, LG&E held contracts with a notional amount of $179 million that range in maturity through 2033. | ||||||||||||||||||||||||||||||
Foreign Currency Risk | ||||||||||||||||||||||||||||||
(PPL) | ||||||||||||||||||||||||||||||
PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings. | ||||||||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||||||||
PPL enters into foreign currency contracts on behalf of a subsidiary to protect the value of a portion of its net investment in WPD. The contracts outstanding at March 31, 2015 had a notional amount of £217 million (approximately $355 million based on contracted rates). The settlement dates of these contracts range from May 2015 through June 2016. | ||||||||||||||||||||||||||||||
At March 31, 2015, PPL had $24 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI, compared to $14 million at December 31, 2014. | ||||||||||||||||||||||||||||||
Economic Activity | ||||||||||||||||||||||||||||||
PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings. At March 31, 2015, the total exposure hedged by PPL was approximately £1.3 billion (approximately $2.1 billion based on contracted rates). These contracts had termination dates ranging from April 2015 through March 2017. | ||||||||||||||||||||||||||||||
Accounting and Reporting | ||||||||||||||||||||||||||||||
(All Registrants) | ||||||||||||||||||||||||||||||
All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts for PPL Energy Supply include certain full-requirement sales contracts, other physical purchase and sales contracts and certain retail energy and physical capacity contracts, and for PPL Electric include certain full-requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized currently in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's and KU's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at March 31, 2015 and December 31, 2014. PPL Energy Supply has many physical and financial commodity purchases and sales contracts that economically hedge commodity price risk but do not receive hedge accounting treatment. As such, realized and unrealized gains (losses) on these contracts are recorded currently in earnings. Generally each contract is considered a unit of account and PPL presents gains (losses) on physical and financial commodity sales contracts in "Unregulated wholesale energy" or "Unregulated retail energy" and (gains) losses on physical and financial commodity purchase contracts in "Fuel" or "Energy purchases" on the Statements of Income. Certain of the economic hedging strategies employed by PPL Energy Supply utilize a combination of financial purchases and sales contracts which are similarly reported gross as an expense and revenue, respectively, on PPL's Statements of Income. PPL records realized hourly net sales or purchases of physical power with PJM in its Statements of Income as "Unregulated wholesale energy" if in a net sales position and "Energy purchases" if in a net purchase position. | ||||||||||||||||||||||||||||||
See Notes 1 and 17 in each Registrant's 2014 Form 10-K for additional information on accounting policies related to derivative instruments. | ||||||||||||||||||||||||||||||
(PPL) | ||||||||||||||||||||||||||||||
The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | |||||||||||||||||||||||||||
hedging instruments | as hedging instruments | hedging instruments | as hedging instruments | |||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | $ | 160 | $ | 5 | $ | 94 | $ | 5 | ||||||||||||||||||||||
Cross-currency swaps (b) | $ | 1 | 2 | 3 | ||||||||||||||||||||||||||
Foreign currency | ||||||||||||||||||||||||||||||
contracts | 24 | $ | 106 | 2 | $ | 12 | $ | 67 | ||||||||||||||||||||||
Commodity contracts | 988 | 904 | 1,079 | 1,024 | ||||||||||||||||||||||||||
Total current | 25 | 162 | 1,094 | 911 | 12 | 97 | 1,146 | 1,029 | ||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | 23 | 47 | 14 | 43 | ||||||||||||||||||||||||||
Cross-currency swaps (b) | 48 | 29 | ||||||||||||||||||||||||||||
Foreign currency | ||||||||||||||||||||||||||||||
contracts | 10 | 69 | 4 | 5 | 46 | 2 | ||||||||||||||||||||||||
Commodity contracts | 310 | 259 | 239 | 193 | ||||||||||||||||||||||||||
Total noncurrent | 58 | 23 | 379 | 310 | 34 | 14 | 285 | 238 | ||||||||||||||||||||||
Total derivatives | $ | 83 | $ | 185 | $ | 1,473 | $ | 1,221 | $ | 46 | $ | 111 | $ | 1,431 | $ | 1,267 | ||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
(b) Excludes accrued interest, if applicable. | ||||||||||||||||||||||||||||||
The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the three months ended March 31. | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||
Recognized | Recognized | |||||||||||||||||||||||||||||
in Income | in Income | |||||||||||||||||||||||||||||
on Derivative | Gain (Loss) | on Derivative | ||||||||||||||||||||||||||||
Gain (Loss) | (Ineffective | Reclassified | (Ineffective | |||||||||||||||||||||||||||
Location of | Reclassified | Portion and | from AOCI | Portion and | ||||||||||||||||||||||||||
Derivative Gain | Gain (Loss) | from AOCI | Amount | into | Amount | |||||||||||||||||||||||||
(Loss) Recognized in | Recognized | into Income | Excluded from | Income | Excluded from | |||||||||||||||||||||||||
Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||||||||
Relationships | 2015 | 2014 | on Derivative | Portion) | Testing) | Portion) | Testing) | |||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | -19 | $ | -46 | Interest expense | $ | -4 | $ | -5 | $ | 2 | |||||||||||||||||||
Cross-currency swaps | 21 | -25 | Interest expense | 1 | ||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||
(expense) - net | 17 | -29 | ||||||||||||||||||||||||||||
Commodity contracts | Unregulated | |||||||||||||||||||||||||||||
wholesale energy | -2 | -1 | ||||||||||||||||||||||||||||
Energy purchases | 8 | 7 | ||||||||||||||||||||||||||||
Depreciation | 1 | 1 | ||||||||||||||||||||||||||||
Discontinued operations | 2 | |||||||||||||||||||||||||||||
Total | $ | 2 | $ | -71 | $ | 21 | $ | -25 | $ | 2 | ||||||||||||||||||||
Net Investment Hedges: | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 16 | $ | -4 | ||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||||||||||||||||||||||||
Hedging Instruments | Income on Derivative | 2015 | 2014 | |||||||||||||||||||||||||||
Foreign currency contracts | Other income (expense) - net | $ | 88 | $ | -24 | |||||||||||||||||||||||||
Interest rate swaps | Interest expense | -2 | -2 | |||||||||||||||||||||||||||
Commodity contracts | Unregulated wholesale energy (a) | -229 | -3,042 | |||||||||||||||||||||||||||
Unregulated retail energy | -39 | -64 | ||||||||||||||||||||||||||||
Fuel | -3 | -1 | ||||||||||||||||||||||||||||
Energy purchases (b) | 196 | 2,364 | ||||||||||||||||||||||||||||
Discontinued operations | -2 | |||||||||||||||||||||||||||||
Total | $ | 11 | $ | -771 | ||||||||||||||||||||||||||
Derivatives Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||||||||||||||||
Hedging Instruments | Regulatory Liabilities/Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets- noncurrent | $ | -56 | |||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||||||||||||||||
Hedging Instruments | Regulatory Liabilities/Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -4 | $ | -4 | |||||||||||||||||||||||||
(a) 2014 includes significant realized and unrealized losses on physical and financial commodity sales contracts due to the unusually cold weather. | ||||||||||||||||||||||||||||||
(b) 2014 includes significant realized and unrealized gains on physical and financial commodity purchase contracts due to the unusually cold weather. | ||||||||||||||||||||||||||||||
(LKE) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 122 | $ | 66 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -56 | |||||||||||||||||||||||||||
(LG&E) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 33 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -28 | |||||||||||||||||||||||||||
(KU) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 33 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -28 | |||||||||||||||||||||||||||
(LKE and LG&E) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 5 | ||||||||||||||||||||||||||
Total current | 5 | 5 | ||||||||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | 47 | 43 | ||||||||||||||||||||||||||||
Total noncurrent | 47 | 43 | ||||||||||||||||||||||||||||
Total derivatives | $ | 52 | $ | 48 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Income on Derivatives | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | -2 | $ | -2 | |||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -4 | $ | -4 | |||||||||||||||||||||||||
(All Registrants except PPL Electric) | ||||||||||||||||||||||||||||||
Offsetting Derivative Instruments | ||||||||||||||||||||||||||||||
PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements or similar agreements in place including derivative clearing agreements with futures commission merchants (FCMs) to permit the trading of cleared derivative products on one or more futures exchanges. The clearing arrangements permit a FCM to use and apply any property in its possession as a set off to pay amounts or discharge obligations owed by a customer upon default of the customer and typically do not place any restrictions on the FCM's use of collateral posted by the customer. PPL, LKE, LG&E and KU and their subsidiaries also enter into agreements pursuant to which they trade certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to setoff amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation. | ||||||||||||||||||||||||||||||
PPL, LKE, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | ||||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | |||||||||||||||||||||||||||||
Cash | Cash | |||||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | |||||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,298 | $ | 990 | $ | 11 | $ | 297 | $ | 1,163 | $ | 990 | $ | 49 | $ | 124 | ||||||||||||||
Treasury Derivatives | 258 | 105 | 153 | 243 | 105 | 21 | 117 | |||||||||||||||||||||||
Total | $ | 1,556 | $ | 1,095 | $ | 11 | $ | 450 | $ | 1,406 | $ | 1,095 | $ | 70 | $ | 241 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 174 | $ | 21 | $ | 153 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 113 | $ | 21 | $ | 92 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 61 | $ | $ | 61 | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,318 | $ | 1,060 | $ | 10 | $ | 248 | $ | 1,217 | $ | 1,060 | $ | 58 | $ | 99 | ||||||||||||||
Treasury Derivatives | 159 | 65 | 94 | 161 | 65 | 21 | 75 | |||||||||||||||||||||||
Total | $ | 1,477 | $ | 1,125 | $ | 10 | $ | 342 | $ | 1,378 | $ | 1,125 | $ | 79 | $ | 174 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 114 | $ | 20 | $ | 94 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 81 | $ | 20 | $ | 61 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 33 | $ | 33 | ||||||||||||||||||||||||||
Credit Risk-Related Contingent Features | ||||||||||||||||||||||||||||||
Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LKE, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in the credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions. | ||||||||||||||||||||||||||||||
Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LKE’s, LG&E’s, and KU’s obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts disclosed below represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features. | ||||||||||||||||||||||||||||||
(All Registrants except PPL Electric and KU) | ||||||||||||||||||||||||||||||
At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows: | ||||||||||||||||||||||||||||||
PPL | LKE | LG&E | ||||||||||||||||||||||||||||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related | ||||||||||||||||||||||||||||||
contingent features | $ | 241 | $ | 31 | $ | 31 | ||||||||||||||||||||||||
Aggregate fair value of collateral posted on these derivative instruments | 140 | 22 | 22 | |||||||||||||||||||||||||||
Aggregate fair value of additional collateral requirements in the event of | ||||||||||||||||||||||||||||||
a credit downgrade below investment grade (a) | 128 | (b) | 10 | 10 | ||||||||||||||||||||||||||
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. | ||||||||||||||||||||||||||||||
(b) PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2015 | |
Goodwill [Line Items] | |
Goodwill | 15. Goodwill |
(PPL) | |
The change in the carrying amount of goodwill for the three months ended March 31, 2015 was due to the effect of foreign currency exchange rates on the U.K. Regulated segment. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Asset Retirement Obligations [Line Items] | |||||||||||||||
Asset Retirement Obligations | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Substantially all of the ARO balances are classified as noncurrent at March 31, 2015 and December 31, 2014. | |||||||||||||||
See Note 10 for information on a CCR rule that is expected to require the recording of additional AROs in the second quarter of 2015. | |||||||||||||||
(PPL) | |||||||||||||||
PPL’s most significant ARO relates to the decommissioning of the Susquehanna nuclear plant. See Notes 13 and 17 for additional information on the assets in the NDT funds that are legally restricted for the purposes of settling this ARO. | |||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact. | |||||||||||||||
LG And E And KU Energy LLC [Member] | |||||||||||||||
Asset Retirement Obligations [Line Items] | |||||||||||||||
Asset Retirement Obligations | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Substantially all of the ARO balances are classified as noncurrent at March 31, 2015 and December 31, 2014. | |||||||||||||||
See Note 10 for information on a CCR rule that is expected to require the recording of additional AROs in the second quarter of 2015. | |||||||||||||||
(PPL) | |||||||||||||||
PPL’s most significant ARO relates to the decommissioning of the Susquehanna nuclear plant. See Notes 13 and 17 for additional information on the assets in the NDT funds that are legally restricted for the purposes of settling this ARO. | |||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact. | |||||||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||||
Asset Retirement Obligations [Line Items] | |||||||||||||||
Asset Retirement Obligations | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Substantially all of the ARO balances are classified as noncurrent at March 31, 2015 and December 31, 2014. | |||||||||||||||
See Note 10 for information on a CCR rule that is expected to require the recording of additional AROs in the second quarter of 2015. | |||||||||||||||
(PPL) | |||||||||||||||
PPL’s most significant ARO relates to the decommissioning of the Susquehanna nuclear plant. See Notes 13 and 17 for additional information on the assets in the NDT funds that are legally restricted for the purposes of settling this ARO. | |||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact. | |||||||||||||||
Kentucky Utilities Co [Member] | |||||||||||||||
Asset Retirement Obligations [Line Items] | |||||||||||||||
Asset Retirement Obligations | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Substantially all of the ARO balances are classified as noncurrent at March 31, 2015 and December 31, 2014. | |||||||||||||||
See Note 10 for information on a CCR rule that is expected to require the recording of additional AROs in the second quarter of 2015. | |||||||||||||||
(PPL) | |||||||||||||||
PPL’s most significant ARO relates to the decommissioning of the Susquehanna nuclear plant. See Notes 13 and 17 for additional information on the assets in the NDT funds that are legally restricted for the purposes of settling this ARO. | |||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact. |
AvailableforSale_Securities
Available-for-Sale Securities | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Available-for-Sale Securities [Line Items] | ||||||||||||||||||||||||||||||
Available-for-Sale Securities | 17. Available-for-Sale Securities | |||||||||||||||||||||||||||||
(PPL) | ||||||||||||||||||||||||||||||
Securities held by the NDT funds and auction rate securities are classified as available-for-sale. Available-for-sale securities are carried on the Balance Sheets at fair value. Unrealized gains and losses on these securities are reported, net of tax, in OCI or are recognized currently in earnings when a decline in fair value is determined to be other-than-temporary. The specific identification method is used to calculate realized gains and losses. | ||||||||||||||||||||||||||||||
The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI and the fair value of available-for-sale securities. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | |||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||
NDT funds: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 20 | $ | 20 | $ | 19 | $ | 19 | ||||||||||||||||||||||
Equity securities | 287 | $ | 426 | 713 | 283 | $ | 417 | 700 | ||||||||||||||||||||||
Debt securities | 218 | 12 | $ | 1 | 229 | 218 | 11 | 229 | ||||||||||||||||||||||
Receivables/payables, net | 3 | 3 | 2 | 2 | ||||||||||||||||||||||||||
Total NDT funds | $ | 528 | $ | 438 | $ | 1 | $ | 965 | $ | 522 | $ | 428 | $ | 950 | ||||||||||||||||
Auction rate securities | ||||||||||||||||||||||||||||||
PPL | $ | 11 | $ | 1 | $ | 10 | $ | 11 | $ | 1 | $ | 10 | ||||||||||||||||||
See Note 13 for details on the securities held by the NDT funds. | ||||||||||||||||||||||||||||||
There were no securities with credit losses at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||
The following table shows the scheduled maturity dates of debt securities held at March 31, 2015. | ||||||||||||||||||||||||||||||
Maturity | Maturity | Maturity | Maturity | |||||||||||||||||||||||||||
Less Than | 5-Jan | 10-Jun | in Excess | |||||||||||||||||||||||||||
1 Year | Years | Years | of 10 Years | Total | ||||||||||||||||||||||||||
Amortized cost | $ | 11 | $ | 82 | $ | 67 | $ | 69 | $ | 229 | ||||||||||||||||||||
Fair value | 11 | 84 | 70 | 74 | 239 | |||||||||||||||||||||||||
The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended March 31. | ||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Proceeds from sales of NDT securities (a) | $ | 38 | $ | 27 | ||||||||||||||||||||||||||
Other proceeds from sales | 3 | |||||||||||||||||||||||||||||
Gross realized gains (b) | 5 | 3 | ||||||||||||||||||||||||||||
Gross realized losses (b) | 3 | 1 | ||||||||||||||||||||||||||||
(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust. | ||||||||||||||||||||||||||||||
(b) Excludes the impact of other-than-temporary impairment charges recognized on the Statements of Income. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 18. Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
(PPL) | |||||||||||||||||||||||||
The after-tax changes in AOCI by component for the three months ended March 31 were as follows. | |||||||||||||||||||||||||
Foreign | Unrealized gains (losses) | Defined benefit plans | |||||||||||||||||||||||
currency | Available- | Equity | Prior | Actuarial | Transition | ||||||||||||||||||||
translation | for-sale | Qualifying | investees' | service | gain | asset | |||||||||||||||||||
adjustments | securities | derivatives | AOCI | costs | (loss) | (obligation) | Total | ||||||||||||||||||
December 31, 2014 | $ | -286 | $ | 202 | $ | 20 | $ | 1 | $ | 3 | $ | -2,215 | $ | 1 | $ | -2,274 | |||||||||
Amounts arising during the period | -66 | 5 | 6 | -1 | -56 | ||||||||||||||||||||
Reclassifications from AOCI | -1 | -17 | -1 | 38 | 19 | ||||||||||||||||||||
Net OCI during the period | -66 | 4 | -11 | -1 | 37 | -37 | |||||||||||||||||||
March 31, 2015 | $ | -352 | $ | 206 | $ | 9 | $ | $ | 3 | $ | -2,178 | $ | 1 | $ | -2,311 | ||||||||||
December 31, 2013 | $ | -11 | $ | 173 | $ | 94 | $ | 1 | $ | -6 | $ | -1,817 | $ | 1 | $ | -1,565 | |||||||||
Amounts arising during the period | 131 | 5 | -46 | 90 | |||||||||||||||||||||
Reclassifications from AOCI | -1 | 19 | 1 | 27 | 46 | ||||||||||||||||||||
Net OCI during the period | 131 | 4 | -27 | 1 | 27 | 136 | |||||||||||||||||||
March 31, 2014 | $ | 120 | $ | 177 | $ | 67 | $ | 1 | $ | -5 | $ | -1,790 | $ | 1 | $ | -1,429 | |||||||||
The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the three months ended March 31. The defined benefit plan components of AOCI are not reflected in their entirety in the statement of income during the periods; rather, they are included in the computation of net periodic defined benefit costs (credits). See Note 9 for additional information. | |||||||||||||||||||||||||
Affected Line Item on the | |||||||||||||||||||||||||
Details about AOCI | 2015 | 2014 | Statements of Income | ||||||||||||||||||||||
Available-for-sale securities | $ | 2 | $ | 2 | Other Income (Expense) - net | ||||||||||||||||||||
Total Pre-tax | 2 | 2 | |||||||||||||||||||||||
Income Taxes | -1 | -1 | |||||||||||||||||||||||
Total After-tax | 1 | 1 | |||||||||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Interest rate swaps | -4 | -3 | Interest Expense | ||||||||||||||||||||||
Cross-currency swaps | 17 | -29 | Other Income (Expense) - net | ||||||||||||||||||||||
1 | Interest Expense | ||||||||||||||||||||||||
Energy commodities | -2 | -1 | Unregulated wholesale energy | ||||||||||||||||||||||
8 | 7 | Energy purchases | |||||||||||||||||||||||
2 | Discontinued operations | ||||||||||||||||||||||||
1 | 1 | Other | |||||||||||||||||||||||
Total Pre-tax | 21 | -23 | |||||||||||||||||||||||
Income Taxes | -4 | 4 | |||||||||||||||||||||||
Total After-tax | 17 | -19 | |||||||||||||||||||||||
Equity investees' AOCI | 2 | Other Income (Expense) - net | |||||||||||||||||||||||
Total Pre-tax | 2 | ||||||||||||||||||||||||
Income Taxes | -1 | ||||||||||||||||||||||||
Total After-tax | 1 | ||||||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | -2 | ||||||||||||||||||||||||
Net actuarial loss | -51 | -36 | |||||||||||||||||||||||
Total Pre-tax | -51 | -38 | |||||||||||||||||||||||
Income Taxes | 13 | 10 | |||||||||||||||||||||||
Total After-tax | -38 | -28 | |||||||||||||||||||||||
Total reclassifications during the period | $ | -19 | $ | -46 |
New_Accounting_Guidance_Pendin
New Accounting Guidance Pending Adoption | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Guidance Pending Adoption [Abstract] | |
New Accounting Guidance Pending Adoption | 19. New Accounting Guidance Pending Adoption |
(All Registrants) | |
Accounting for Revenue from Contracts with Customers | |
In May 2014, the FASB issued accounting guidance that establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. | |
For public business entities, this guidance can be applied using either a full retrospective or modified retrospective transition method, beginning in annual reporting periods beginning after December 15, 2016 and interim periods within those years. Early adoption is not permitted. The Registrants will adopt this guidance effective January 1, 2017. | |
The Registrants are currently assessing the impact of adopting this guidance, as well as the transition method they will use. | |
Reporting Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, the FASB issued accounting guidance which will require management to assess, for each interim and annual period, whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. | |
When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management is required to disclose information that enables users of the financial statements to understand the principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern and management’s evaluation of the significance of those conditions or events. If substantial doubt about the entity’s ability to continue as a going concern has been alleviated as a result of management’s plan, the entity should disclose information that allows the users of the financial statements to understand those plans. If the substantial doubt about the entity’s ability to continue as a going concern is not alleviated by management’s plans, management’s plans to mitigate the conditions or events that gave rise to the substantial doubt about the entity’s ability to continue as a going concern should be disclosed, as well as a statement that there is substantial doubt the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. | |
For all entities, this guidance should be applied prospectively within the annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. | |
The Registrants will adopt this guidance for the annual period ending December 31, 2016. The adoption of this guidance is not expected to have a significant impact on the Registrants. | |
Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity | |
In November 2014, the FASB issued guidance that clarifies how current accounting guidance should be interpreted when evaluating the economic characteristics and risks of a host contract of a hybrid financial instrument issued in the form of a share. This guidance does not change the current criteria for determining whether separation of an embedded derivative feature from a hybrid financial instrument is required. Entities are still required to evaluate whether the economic risks of the embedded derivative feature are clearly and closely related to those of the host contract, among other relevant criteria. | |
An entity should consider the substantive terms and features of the entire hybrid financial instrument, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract to determine whether the host contract is more akin to a debt instrument or more akin to an equity instrument. An entity should assess the relative strength of the debt-like and equity-like terms and features when determining how to weight those terms and features. | |
For public business entities, this guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and should be applied using a modified retrospective method for existing hybrid financial instruments issued in the form of a share as of the beginning of the fiscal year the guidance is adopted. Early adoption is permitted. Retrospective application is permitted but not required. | |
The Registrants will adopt this guidance on January 1, 2016. The adoption of this guidance is not expected to have a significant impact on the Registrants. | |
Income Statement Presentation of Extraordinary and Unusual Items | |
In January 2015, the FASB issued accounting guidance that eliminates the concept of extraordinary items, which requires an entity to separately classify, present in the income statement and disclose material events and transactions that are both unusual and occur infrequently. The requirement to report material events or transactions that are unusual or infrequent as a separate component of income from continuing operations has been retained, as has the requirement to separately present the nature and financial effects of each event or transaction in the income statement as a separate component of continuing operations or disclose them within the notes to the financial statements. The scope of these requirements has been expanded to include items that are both unusual and occur infrequently. | |
For all entities, this guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted provided that an entity applies the guidance from the beginning of the fiscal year of adoption. The guidance may be applied either retrospectively or prospectively. | |
The Registrants will adopt this guidance on January 1, 2016. The adoption of this guidance is not expected to have a significant impact on the Registrants. | |
Simplifying the Presentation of Debt Issuance Costs | |
In April 2015, the FASB issued accounting guidance to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the associated debt liability, consistent with the presentation of debt discounts. | |
For public business entities, this guidance should be applied retrospectively for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. | |
The Registrants are assessing in which period they will adopt this new guidance. The adoption of this guidance will require the Registrants to reclassify debt issuance costs from assets to long-term debt, and is not expected to have a significant impact on the Registrants. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |
Accounts Receivable | Accounts Receivable (PPL and PPL Electric) |
In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers (including PPL EnergyPlus) at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. During the three months ended March 31, 2015, PPL Electric purchased $331 million of accounts receivable from unaffiliated third parties and $93 million from PPL EnergyPlus. During the three months ended March 31, 2014, PPL Electric purchased $362 million of accounts receivable from unaffiliated third parties and $105 million from PPL EnergyPlus. | |
New Accounting Guidance Adopted | New Accounting Guidance Adopted (All Registrants) |
Reporting of Discontinued Operations | |
Effective January 1, 2015, the Registrants prospectively adopted accounting guidance that changes the criteria for determining what should be classified as a discontinued operation and the related presentation and disclosure requirements. A discontinued operation may include a component of an entity or a group of components of an entity, or a business activity. | |
A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results when any of the following occurs: (1) The components of an entity or group of components of an entity meets the criteria to be classified as held for sale, (2) The component of an entity or group of components of an entity is disposed of by sale, or (3) The component of an entity or group of components of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). | |
The initial adoption of this guidance did not have a significant impact on the Registrants but will impact the amounts presented as discontinued operations and will enhance the related disclosure requirements related to future disposals or held for sale classifications. | |
PPL Electric Utilities Corp [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Accounts Receivable | Accounts Receivable (PPL and PPL Electric) |
In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers (including PPL EnergyPlus) at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. During the three months ended March 31, 2015, PPL Electric purchased $331 million of accounts receivable from unaffiliated third parties and $93 million from PPL EnergyPlus. During the three months ended March 31, 2014, PPL Electric purchased $362 million of accounts receivable from unaffiliated third parties and $105 million from PPL EnergyPlus. | |
Acquisitions_Development_and_D1
Acquisitions, Development and Divestures (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Acquisitions, Development and Divestitures [Line Items] | |
Interest Expense Allocated to Discontinued Operations | (a) Represents allocated interest expense based upon the discontinued operations share of the net assets of PPL Energy Supply. |
Fair_Value_Measurements_and_Cr1
Fair Value Measurements and Credit Concentration (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Measurements and Credit Concentration [Abstract] | |
Fair Value Measurements | Transfers between levels are recognized at end-of-reporting-period values. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Price Risk Management | Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements. |
AvailableforSale_Securities_Po
Available-for-Sale Securities (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Available-for-Sale Securities [Line Items] | |
Investments | Securities held by the NDT funds and auction rate securities are classified as available-for-sale. Available-for-sale securities are carried on the Balance Sheets at fair value. Unrealized gains and losses on these securities are reported, net of tax, in OCI or are recognized currently in earnings when a decline in fair value is determined to be other-than-temporary. The specific identification method is used to calculate realized gains and losses. |
Segment_and_Related_Informatio1
Segment and Related Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment and Related Information [Abstract] | |||||||||||||||||
Segment and Related Information | Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are: | ||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Income Statement Data | |||||||||||||||||
Revenues from external customers | |||||||||||||||||
U.K. Regulated | $ | 697 | $ | 648 | |||||||||||||
Kentucky Regulated | 899 | 934 | |||||||||||||||
Pennsylvania Regulated | 630 | 591 | |||||||||||||||
Supply (a) | 937 | -982 | |||||||||||||||
Corporate and Other | 2 | 3 | |||||||||||||||
Total | $ | 3,165 | $ | 1,194 | |||||||||||||
Intersegment electric revenues | |||||||||||||||||
Supply | $ | 9 | $ | 27 | |||||||||||||
Net Income | |||||||||||||||||
U.K. Regulated (a) | $ | 375 | $ | 206 | |||||||||||||
Kentucky Regulated | 109 | 107 | |||||||||||||||
Pennsylvania Regulated | 87 | 85 | |||||||||||||||
Supply (a) | 95 | -75 | |||||||||||||||
Corporate and Other (b) | -19 | -7 | |||||||||||||||
Total | $ | 647 | $ | 316 | |||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Balance Sheet Data | |||||||||||||||||
Assets | |||||||||||||||||
U.K. Regulated | $ | 16,275 | $ | 16,005 | |||||||||||||
Kentucky Regulated | 13,109 | 13,062 | |||||||||||||||
Pennsylvania Regulated | 7,921 | 7,785 | |||||||||||||||
Supply | 10,631 | 11,025 | |||||||||||||||
Corporate and Other (c) | 985 | 987 | |||||||||||||||
Total assets | $ | 48,921 | $ | 48,864 | |||||||||||||
(a) Includes unrealized gains and losses from economic activity. See Note 14 for additional information. | |||||||||||||||||
(b) 2015 includes most of the transaction and transition costs related to the anticipated spinoff of PPL Energy Supply. See Note 8 for additional information. | |||||||||||||||||
(c) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Basic and Diluted EPS Computations | Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the period ended March 31 used in the EPS calculation are: | |||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Income (Numerator) | ||||||||||||||||
Income from continuing operations after income taxes | $ | 647 | $ | 324 | ||||||||||||
Less amounts allocated to participating securities | 3 | 2 | ||||||||||||||
Income from continuing operations after income taxes available to PPL common shareowners - Basic | 644 | 322 | ||||||||||||||
Plus interest charges (net of tax) related to Equity Units (a) | 9 | |||||||||||||||
Income from continuing operations after income taxes available to PPL common shareowners - Diluted | $ | 644 | $ | 331 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic | ||||||||||||||||
and Diluted | $ | $ | -8 | |||||||||||||
Net income | $ | 647 | $ | 316 | ||||||||||||
Less amounts allocated to participating securities | 3 | 2 | ||||||||||||||
Net income available to PPL common shareowners - Basic | 644 | 314 | ||||||||||||||
Plus interest charges (net of tax) related to Equity Units (a) | 9 | |||||||||||||||
Net income available to PPL common shareowners - Diluted | $ | 644 | $ | 323 | ||||||||||||
Shares of Common Stock (Denominator) | ||||||||||||||||
Weighted-average shares - Basic EPS | 666,974 | 630,749 | ||||||||||||||
Add incremental non-participating securities: | ||||||||||||||||
Share-based payment awards | 1,758 | 1,511 | ||||||||||||||
Equity Units (a) | 31,679 | |||||||||||||||
Weighted-average shares - Diluted EPS | 668,732 | 663,939 | ||||||||||||||
Basic EPS | ||||||||||||||||
Available to PPL common shareowners: | ||||||||||||||||
Income from continuing operations after income taxes | $ | 0.97 | $ | 0.51 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) | -0.01 | |||||||||||||||
Net Income Available to PPL common shareowners | $ | 0.97 | $ | 0.5 | ||||||||||||
Diluted EPS | ||||||||||||||||
Available to PPL common shareowners: | ||||||||||||||||
Income from continuing operations after income taxes | $ | 0.96 | $ | 0.5 | ||||||||||||
Income (loss) from discontinued operations (net of income taxes) | -0.01 | |||||||||||||||
Net Income Available to PPL common shareowners | $ | 0.96 | $ | 0.49 | ||||||||||||
(a) In 2014, the If-Converted Method was applied to the Equity Units prior to the March 2014 settlement. | ||||||||||||||||
Common Stock Issuances | For the periods ended March 31, PPL issued common stock related to stock-based compensation plans as follows (in thousands): | |||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Stock-based compensation plans (a) | 1,445 | 1,096 | ||||||||||||||
DRIP | 419 | |||||||||||||||
(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. | ||||||||||||||||
Antidilutive Securities Excluded From Diluted EPS | For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. | |||||||||||||||
Three Months | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Stock options | 1,473 | 2,540 | ||||||||||||||
Performance units | 146 | |||||||||||||||
Restricted stock units | 123 |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are: | ||||||||||||||||
(PPL) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income from Continuing Operations Before | |||||||||||||||||
Income Taxes at statutory tax rate - 35% | $ | 320 | $ | 153 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 25 | 3 | |||||||||||||||
Valuation allowance adjustments | 3 | ||||||||||||||||
Impact of lower U.K. income tax rates | -62 | -44 | |||||||||||||||
U.S. income tax on foreign earnings - net of foreign tax credit | -1 | 11 | |||||||||||||||
Intercompany interest on U.K. financing entities | -8 | -2 | |||||||||||||||
Other | -9 | -7 | |||||||||||||||
Total increase (decrease) | -52 | -39 | |||||||||||||||
Total income taxes | $ | 268 | $ | 114 | |||||||||||||
PPL Electric Utilities Corp [Member] | |||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are: | ||||||||||||||||
(PPL Electric) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 51 | $ | 48 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 10 | 8 | |||||||||||||||
Other | -2 | -3 | |||||||||||||||
Total increase (decrease) | 8 | 5 | |||||||||||||||
Total income taxes | $ | 59 | $ | 53 | |||||||||||||
LG And E And KU Energy LLC [Member] | |||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are: | ||||||||||||||||
(LKE) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 68 | $ | 64 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 7 | 7 | |||||||||||||||
Valuation allowance adjustments | 3 | ||||||||||||||||
Other | -2 | -2 | |||||||||||||||
Total increase (decrease) | 8 | 5 | |||||||||||||||
Total income taxes | $ | 76 | $ | 69 | |||||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are: | ||||||||||||||||
(LG&E) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 30 | $ | 29 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 3 | 3 | |||||||||||||||
Other | -2 | ||||||||||||||||
Total increase (decrease) | 3 | 1 | |||||||||||||||
Total income taxes | $ | 33 | $ | 30 | |||||||||||||
Kentucky Utilities Co [Member] | |||||||||||||||||
Income Taxes [Line Items] | |||||||||||||||||
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are: | ||||||||||||||||
(KU) | |||||||||||||||||
Three Months | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 44 | $ | 43 | |||||||||||||
Increase (decrease) due to: | |||||||||||||||||
State income taxes, net of federal income tax benefit | 4 | 4 | |||||||||||||||
Other | -1 | -1 | |||||||||||||||
Total increase (decrease) | 3 | 3 | |||||||||||||||
Total income taxes | $ | 47 | $ | 46 |
Utility_Rate_Regulation_Tables
Utility Rate Regulation (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Utility Rate Regulation [Line Items] | |||||||||||||||||||||
Regulatory Assets | The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. | ||||||||||||||||||||
PPL | PPL Electric | ||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Current Regulatory Assets: | |||||||||||||||||||||
Environmental cost recovery | $ | 10 | $ | 5 | |||||||||||||||||
Gas supply clause | 1 | 15 | |||||||||||||||||||
Fuel adjustment clause | 4 | 4 | |||||||||||||||||||
Transmission service charge | 6 | $ | 6 | ||||||||||||||||||
Other | 8 | 7 | $ | 3 | 6 | ||||||||||||||||
Total current regulatory assets | $ | 23 | $ | 37 | $ | 3 | $ | 12 | |||||||||||||
Noncurrent Regulatory Assets: | |||||||||||||||||||||
Defined benefit plans | $ | 705 | $ | 720 | $ | 367 | $ | 372 | |||||||||||||
Taxes recoverable through future rates | 317 | 316 | 317 | 316 | |||||||||||||||||
Storm costs | 116 | 124 | 42 | 46 | |||||||||||||||||
Unamortized loss on debt | 76 | 77 | 48 | 49 | |||||||||||||||||
Interest rate swaps | 182 | 122 | |||||||||||||||||||
Accumulated cost of removal of utility plant | 117 | 114 | 117 | 114 | |||||||||||||||||
AROs | 87 | 79 | |||||||||||||||||||
Other | 10 | 10 | |||||||||||||||||||
Total noncurrent regulatory assets | $ | 1,610 | $ | 1,562 | $ | 891 | $ | 897 | |||||||||||||
LKE | LG&E | KU | |||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Current Regulatory Assets: | |||||||||||||||||||||
Environmental cost recovery | $ | 10 | $ | 5 | $ | 7 | $ | 4 | $ | 3 | $ | 1 | |||||||||
Gas supply clause | 1 | 15 | 1 | 15 | |||||||||||||||||
Fuel adjustment clause | 4 | 4 | 4 | 2 | 2 | ||||||||||||||||
Other | 5 | 1 | 5 | 1 | |||||||||||||||||
Total current regulatory assets | $ | 20 | $ | 25 | $ | 12 | $ | 21 | $ | 8 | $ | 4 | |||||||||
Noncurrent Regulatory Assets: | |||||||||||||||||||||
Defined benefit plans | $ | 338 | $ | 348 | $ | 208 | $ | 215 | $ | 130 | $ | 133 | |||||||||
Storm costs | 74 | 78 | 41 | 43 | 33 | 35 | |||||||||||||||
Unamortized loss on debt | 28 | 28 | 18 | 18 | 10 | 10 | |||||||||||||||
Interest rate swaps | 182 | 122 | 121 | 89 | 61 | 33 | |||||||||||||||
AROs | 87 | 79 | 30 | 28 | 57 | 51 | |||||||||||||||
Other | 10 | 10 | 4 | 4 | 6 | 6 | |||||||||||||||
Total noncurrent regulatory assets | $ | 719 | $ | 665 | $ | 422 | $ | 397 | $ | 297 | $ | 268 | |||||||||
Regulatory Liabilities | The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. | ||||||||||||||||||||
Current Regulatory Liabilities: | |||||||||||||||||||||
Generation supply charge | $ | 26 | $ | 28 | $ | 26 | $ | 28 | |||||||||||||
Demand side management | 13 | 2 | |||||||||||||||||||
Gas supply clause | 6 | 6 | |||||||||||||||||||
Transmission formula rate | 49 | 42 | 49 | 42 | |||||||||||||||||
Storm damage expense | 7 | 3 | 7 | 3 | |||||||||||||||||
Gas line tracker | 2 | 3 | |||||||||||||||||||
Other | 6 | 7 | 3 | 3 | |||||||||||||||||
Total current regulatory liabilities | $ | 109 | $ | 91 | $ | 85 | $ | 76 | |||||||||||||
Noncurrent Regulatory Liabilities: | |||||||||||||||||||||
Accumulated cost of removal of utility plant | $ | 695 | $ | 693 | |||||||||||||||||
Coal contracts (a) | 49 | 59 | |||||||||||||||||||
Power purchase agreement - OVEC (a) | 90 | 92 | |||||||||||||||||||
Net deferred tax assets | 25 | 26 | |||||||||||||||||||
Act 129 compliance rider | 26 | 18 | $ | 26 | $ | 18 | |||||||||||||||
Defined benefit plans | 16 | 16 | |||||||||||||||||||
Interest rate swaps | 84 | 84 | |||||||||||||||||||
Other | 2 | 4 | |||||||||||||||||||
Total noncurrent regulatory liabilities | $ | 987 | $ | 992 | $ | 26 | $ | 18 | |||||||||||||
Current Regulatory Liabilities: | |||||||||||||||||||||
Demand side management | $ | 13 | $ | 2 | $ | 5 | $ | 1 | $ | 8 | $ | 1 | |||||||||
Gas supply clause | 6 | 6 | 6 | 6 | |||||||||||||||||
Gas line tracker | 2 | 3 | 2 | 3 | |||||||||||||||||
Other | 3 | 4 | 1 | 2 | 4 | ||||||||||||||||
Total current regulatory liabilities | $ | 24 | $ | 15 | $ | 14 | $ | 10 | $ | 10 | $ | 5 | |||||||||
Noncurrent Regulatory Liabilities: | |||||||||||||||||||||
Accumulated cost of removal | |||||||||||||||||||||
of utility plant | $ | 695 | $ | 693 | $ | 304 | $ | 302 | $ | 391 | $ | 391 | |||||||||
Coal contracts (a) | 49 | 59 | 21 | 25 | 28 | 34 | |||||||||||||||
Power purchase agreement - OVEC (a) | 90 | 92 | 62 | 63 | 28 | 29 | |||||||||||||||
Net deferred tax assets | 25 | 26 | 24 | 24 | 1 | 2 | |||||||||||||||
Defined benefit plans | 16 | 16 | 16 | 16 | |||||||||||||||||
Interest rate swaps | 84 | 84 | 42 | 42 | 42 | 42 | |||||||||||||||
Other | 2 | 4 | 1 | 2 | 1 | 2 | |||||||||||||||
Total noncurrent regulatory liabilities | $ | 961 | $ | 974 | $ | 454 | $ | 458 | $ | 507 | $ | 516 | |||||||||
(a) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. |
Financing_Activities_Tables
Financing Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Financing Activities [Line Items] | |||||||||||||||||||||||||||
Credit Facilities in Place at Period End | The following credit facilities were in place at: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Letters of | Letters of | ||||||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||||||
and | and | ||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||
Expiration | Paper | Unused | Paper | ||||||||||||||||||||||||
Date | Capacity | Borrowed | Issued | Capacity | Borrowed | Issued | |||||||||||||||||||||
PPL | |||||||||||||||||||||||||||
U.K. | |||||||||||||||||||||||||||
WPD Ltd. | |||||||||||||||||||||||||||
Syndicated Credit Facility | Dec. 2016 | £ | 210 | £ | 130 | £ | 80 | £ | 103 | ||||||||||||||||||
WPD (South West) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 245 | 245 | ||||||||||||||||||||||||
WPD (East Midlands) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 300 | 147 | 153 | 64 | ||||||||||||||||||||||
WPD (West Midlands) | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | 300 | 300 | ||||||||||||||||||||||||
Uncommitted Credit Facilities | 65 | £ | 5 | 60 | £ | 5 | |||||||||||||||||||||
Total U.K. Credit Facilities (a) | £ | 1,120 | £ | 277 | £ | 5 | £ | 838 | £ | 167 | £ | 5 | |||||||||||||||
U.S. | |||||||||||||||||||||||||||
PPL Capital Funding | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 300 | $ | 300 | ||||||||||||||||||||||
Syndicated Credit Facility | Nov. 2018 | 300 | 300 | ||||||||||||||||||||||||
Bilateral Credit Facility | Mar. 2016 | 150 | $ | 32 | 118 | $ | 21 | ||||||||||||||||||||
Uncommitted Credit Facility | 65 | 1 | 64 | 1 | |||||||||||||||||||||||
Total PPL Capital Funding Credit Facilities | $ | 815 | $ | 33 | $ | 782 | $ | 22 | |||||||||||||||||||
PPL Energy Supply | |||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Nov. 2017 | $ | 3,000 | $ | 600 | $ | 267 | $ | 2,133 | $ | 630 | $ | 121 | ||||||||||||||
PPL Electric | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 300 | $ | 86 | $ | 214 | $ | 1 | ||||||||||||||||||
LKE | |||||||||||||||||||||||||||
Syndicated Credit Facility (b) | Oct. 2018 | $ | 75 | $ | 75 | $ | 75 | ||||||||||||||||||||
LG&E | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 500 | $ | 216 | $ | 284 | $ | 264 | ||||||||||||||||||
KU | |||||||||||||||||||||||||||
Syndicated Credit Facility | Jul-19 | $ | 400 | $ | 193 | $ | 207 | $ | 236 | ||||||||||||||||||
Letter of Credit Facility | Oct. 2017 | 198 | 198 | 198 | |||||||||||||||||||||||
Total KU Credit Facilities | $ | 598 | $ | 391 | $ | 207 | $ | 434 | |||||||||||||||||||
(a) WPD Ltd.'s amounts borrowed at March 31, 2015 and December 31, 2014 were USD-denominated borrowings of $200 million and $161 million, which bore interest at 1.87% and 1.86%. WPD (East Midlands) amounts borrowed at March 31, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $226 million and $100 million, which bore interest at 1.00% for both periods. At March 31, 2015, the unused capacity under the U.K. credit facilities was $1.3 billion. | |||||||||||||||||||||||||||
(b) At March 31, 2015, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.12% and 1.68%. At December 31, 2014, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.05% and 1.67%. | |||||||||||||||||||||||||||
PPL Electric Utilities Corp [Member] | |||||||||||||||||||||||||||
Financing Activities [Line Items] | |||||||||||||||||||||||||||
Commercial paper | The following commercial paper programs were in place at: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Weighted - | Commercial | Weighted - | Commercial | ||||||||||||||||||||||||
Average | Paper | Unused | Average | Paper | |||||||||||||||||||||||
Interest Rate | Capacity | Issuances | Capacity | Interest Rate | Issuances | ||||||||||||||||||||||
PPL Electric | 0.57% | $ | 300 | $ | 85 | $ | 215 | ||||||||||||||||||||
LG&E | 0.63% | 350 | 216 | 134 | 0.42% | $ | 264 | ||||||||||||||||||||
KU | 0.62% | 350 | 193 | 157 | 0.49% | 236 | |||||||||||||||||||||
Total | $ | 1,000 | $ | 494 | $ | 506 | $ | 500 | |||||||||||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||||||||||||||||
Financing Activities [Line Items] | |||||||||||||||||||||||||||
Commercial paper | The following commercial paper programs were in place at: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Weighted - | Commercial | Weighted - | Commercial | ||||||||||||||||||||||||
Average | Paper | Unused | Average | Paper | |||||||||||||||||||||||
Interest Rate | Capacity | Issuances | Capacity | Interest Rate | Issuances | ||||||||||||||||||||||
PPL Electric | 0.57% | $ | 300 | $ | 85 | $ | 215 | ||||||||||||||||||||
LG&E | 0.63% | 350 | 216 | 134 | 0.42% | $ | 264 | ||||||||||||||||||||
KU | 0.62% | 350 | 193 | 157 | 0.49% | 236 | |||||||||||||||||||||
Total | $ | 1,000 | $ | 494 | $ | 506 | $ | 500 | |||||||||||||||||||
Kentucky Utilities Co [Member] | |||||||||||||||||||||||||||
Financing Activities [Line Items] | |||||||||||||||||||||||||||
Commercial paper | The following commercial paper programs were in place at: | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Weighted - | Commercial | Weighted - | Commercial | ||||||||||||||||||||||||
Average | Paper | Unused | Average | Paper | |||||||||||||||||||||||
Interest Rate | Capacity | Issuances | Capacity | Interest Rate | Issuances | ||||||||||||||||||||||
PPL Electric | 0.57% | $ | 300 | $ | 85 | $ | 215 | ||||||||||||||||||||
LG&E | 0.63% | 350 | 216 | 134 | 0.42% | $ | 264 | ||||||||||||||||||||
KU | 0.62% | 350 | 193 | 157 | 0.49% | 236 | |||||||||||||||||||||
Total | $ | 1,000 | $ | 494 | $ | 506 | $ | 500 |
Acquisitions_Development_and_D2
Acquisitions, Development and Divestures (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Acquisitions, Development and Divestitures [Line Items] | |||||||||||||
Components of Discontinued Operations | Following are the components of Discontinued Operations in the Statement of Income for the three months ended March 31. | ||||||||||||
2014 | |||||||||||||
Operating revenues | $ | 29 | |||||||||||
Interest expense (a) | 2 | ||||||||||||
Income (loss) before income taxes (b) | -10 | ||||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) (b) | -8 | ||||||||||||
(a) Represents allocated interest expense based upon the discontinued operations share of the net assets of PPL Energy Supply. | |||||||||||||
(b) Includes an impairment charge related to the Kerr Dam Project. See Note 13 for additional information. |
Defined_Benefits_Tables
Defined Benefits (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Defined Benefits [Line Items] | |||||||||||||||||||||
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL, and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended March 31: | ||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
U.S. | U.K. | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
PPL | |||||||||||||||||||||
Service cost | $ | 32 | $ | 26 | $ | 20 | $ | 18 | $ | 4 | $ | 3 | |||||||||
Interest cost | 59 | 59 | 79 | 88 | 7 | 8 | |||||||||||||||
Expected return on plan assets | -79 | -74 | -131 | -130 | -7 | -6 | |||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 5 | |||||||||||||||||||
Actuarial (gain) loss | 25 | 7 | 39 | 33 | |||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 39 | $ | 23 | $ | 7 | $ | 9 | $ | 4 | $ | 5 | |||||||||
LKE | |||||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 1 | $ | 1 | |||||||||||||
Interest cost | 17 | 17 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | -22 | -20 | -1 | -1 | |||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | 1 | |||||||||||||||||
Actuarial (gain) loss | 8 | 3 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 12 | $ | 7 | $ | 3 | $ | 3 | |||||||||||||
LG&E | |||||||||||||||||||||
Interest cost | $ | 3 | $ | 4 | |||||||||||||||||
Expected return on plan assets | -5 | -5 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 1 | 1 | |||||||||||||||||||
Actuarial (gain) loss | 3 | 1 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 1 | |||||||||||||||||
PPL Electric Utilities Corp [Member] | |||||||||||||||||||||
Defined Benefits [Line Items] | |||||||||||||||||||||
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU. | ||||||||||||||||||||
Three Months | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
PPL Electric | $ | 8 | $ | 5 | |||||||||||||||||
LG&E | 3 | 2 | |||||||||||||||||||
KU | 5 | 3 | |||||||||||||||||||
LG And E And KU Energy LLC [Member] | |||||||||||||||||||||
Defined Benefits [Line Items] | |||||||||||||||||||||
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL, and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended March 31: | ||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
U.S. | U.K. | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
PPL | |||||||||||||||||||||
Service cost | $ | 32 | $ | 26 | $ | 20 | $ | 18 | $ | 4 | $ | 3 | |||||||||
Interest cost | 59 | 59 | 79 | 88 | 7 | 8 | |||||||||||||||
Expected return on plan assets | -79 | -74 | -131 | -130 | -7 | -6 | |||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 5 | |||||||||||||||||||
Actuarial (gain) loss | 25 | 7 | 39 | 33 | |||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 39 | $ | 23 | $ | 7 | $ | 9 | $ | 4 | $ | 5 | |||||||||
LKE | |||||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 1 | $ | 1 | |||||||||||||
Interest cost | 17 | 17 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | -22 | -20 | -1 | -1 | |||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | 1 | |||||||||||||||||
Actuarial (gain) loss | 8 | 3 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 12 | $ | 7 | $ | 3 | $ | 3 | |||||||||||||
LG&E | |||||||||||||||||||||
Interest cost | $ | 3 | $ | 4 | |||||||||||||||||
Expected return on plan assets | -5 | -5 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 1 | 1 | |||||||||||||||||||
Actuarial (gain) loss | 3 | 1 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 1 | |||||||||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||||||||||
Defined Benefits [Line Items] | |||||||||||||||||||||
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL, and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended March 31: | ||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||
U.S. | U.K. | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
PPL | |||||||||||||||||||||
Service cost | $ | 32 | $ | 26 | $ | 20 | $ | 18 | $ | 4 | $ | 3 | |||||||||
Interest cost | 59 | 59 | 79 | 88 | 7 | 8 | |||||||||||||||
Expected return on plan assets | -79 | -74 | -131 | -130 | -7 | -6 | |||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 5 | |||||||||||||||||||
Actuarial (gain) loss | 25 | 7 | 39 | 33 | |||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 39 | $ | 23 | $ | 7 | $ | 9 | $ | 4 | $ | 5 | |||||||||
LKE | |||||||||||||||||||||
Service cost | $ | 7 | $ | 6 | $ | 1 | $ | 1 | |||||||||||||
Interest cost | 17 | 17 | 2 | 2 | |||||||||||||||||
Expected return on plan assets | -22 | -20 | -1 | -1 | |||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 2 | 1 | 1 | 1 | |||||||||||||||||
Actuarial (gain) loss | 8 | 3 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 12 | $ | 7 | $ | 3 | $ | 3 | |||||||||||||
LG&E | |||||||||||||||||||||
Interest cost | $ | 3 | $ | 4 | |||||||||||||||||
Expected return on plan assets | -5 | -5 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||
Prior service cost | 1 | 1 | |||||||||||||||||||
Actuarial (gain) loss | 3 | 1 | |||||||||||||||||||
Net periodic defined benefit costs (credits) | $ | 2 | $ | 1 | |||||||||||||||||
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU. | ||||||||||||||||||||
Three Months | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
PPL Electric | $ | 8 | $ | 5 | |||||||||||||||||
LG&E | 3 | 2 | |||||||||||||||||||
KU | 5 | 3 | |||||||||||||||||||
Kentucky Utilities Co [Member] | |||||||||||||||||||||
Defined Benefits [Line Items] | |||||||||||||||||||||
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU. | ||||||||||||||||||||
Three Months | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
PPL Electric | $ | 8 | $ | 5 | |||||||||||||||||
LG&E | 3 | 2 | |||||||||||||||||||
KU | 5 | 3 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Commitments and Contingencies [Abstract] | |||||||
Guarantees | The table below details guarantees provided as of March 31, 2015. | ||||||
Exposure at | Expiration | ||||||
March 31, 2015 | Date | ||||||
PPL | |||||||
Indemnifications related to the WPD Midlands acquisition | (a) | ||||||
WPD indemnifications for entities in liquidation and sales of assets | $ | 11 | (b) | 2018 | |||
WPD guarantee of pension and other obligations of unconsolidated entities | 114 | (c) | |||||
Indemnifications for sales of assets | 1,150 | (d) | 2016 - 2025 | ||||
PPL Electric | |||||||
Guarantee of inventory value | 32 | (e) | 2017 | ||||
LKE | |||||||
Indemnification of lease termination and other divestitures | 301 | (f) | 2021 - 2023 | ||||
LG&E and KU | |||||||
LG&E and KU guarantee of shortfall related to OVEC | (g) | ||||||
(a) Indemnifications related to certain liabilities, including a specific unresolved tax issue and those relating to properties and assets owned by the seller that were transferred to WPD Midlands in connection with the acquisition. A cross indemnity has been received from the seller on the tax issue. The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents. | |||||||
(b) Indemnification to the liquidators and certain others for existing liabilities or expenses or liabilities arising during the liquidation process. The indemnifications are limited to distributions made from the subsidiary to its parent either prior or subsequent to liquidation or are not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases where the agreements provide for specific limits. | |||||||
In connection with their sales of various businesses, WPD and its affiliates have provided the purchasers with indemnifications that are standard for such transactions, including indemnifications for certain pre-existing liabilities and environmental and tax matters or have agreed to continue their obligations under existing third-party guarantees, either for a set period of time following the transactions or upon the condition that the purchasers make reasonable efforts to terminate the guarantees. Finally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties. | |||||||
(c) Relates to certain obligations of discontinued or modified electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At March 31, 2015, WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure has been estimated. | |||||||
(d) Indemnifications are governed by the specific sales agreement and include breach of the representations, warranties and covenants, and liabilities for certain other matters. The maximum exposure with respect to certain indemnifications and the expiration of the indemnifications cannot be estimated because the maximum potential liability is not capped by the transaction documents and the expiration date is based on the applicable statute of limitations. The exposure and expiration date noted is based on those cases in which the agreements provide for specific limits. The exposure at March 31, 2015 includes amounts related to the sale of the Montana Hydroelectric facilities. See Note 8 for additional information related to the sale. | |||||||
(e) A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any remaining inventory that has not been used or sold. | |||||||
(f) LKE provides certain indemnifications, the most significant of which relate to the termination of the WKE lease in July 2009. These guarantees cover the due and punctual payment, performance and discharge by each party of its respective present and future obligations. The most comprehensive of these WKE-related guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under the WKE Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a cumulative maximum exposure of $200 million. Certain items such as government fines and penalties fall outside the cumulative cap. Another WKE-related LKE guarantee covers other indemnifications, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter, which granted LKE’s indemnitee certain rights of first refusal to purchase excess power at a market-based price rather than at an absolute fixed price. In January 2013, LKE's indemnitee commenced a proceeding in the Kentucky Court of Appeals appealing a December 2012 order of the Henderson Circuit Court, confirming the arbitration award. In May 2014, the Court of Appeals issued an opinion affirming the lower court decision. LKE’s indemnitee filed a Motion for Discretionary Review with the Kentucky Supreme Court in October 2014. LKE believes its indemnification obligations in this matter remain subject to various uncertainties, including potential for additional legal challenges regarding the arbitration decision as well as future prices, availability and demand for the subject excess power. LKE continues to evaluate various legal and commercial options with respect to this indemnification matter. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum; LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. However, LKE is not aware of formal claims under such indemnities made by any party at this time. LKE cannot predict the ultimate outcomes of indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded. | |||||||
(g) Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement and decommissioning costs, as well as any shortfall from amounts currently included within a demand charge designed and currently expected to cover these costs over the term of the contract. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See “Energy Purchase Commitments” and "Guarantees and Other Assurances" in Note 13 in PPL's, LKE's, LG&E's and KU's 2014 Form 10-K for additional information on the OVEC power purchase contract. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
PPL Electric Utilities Corp [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | ||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
LG And E And KU Energy LLC [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | ||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
Louisville Gas And Electric Co [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | ||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 | |||||||||||
Kentucky Utilities Co [Member] | |||||||||||||
Related Party Transactions [Line Items] | |||||||||||||
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, and believe these amounts are reasonable, including amounts applied to accounts that are further distributed between capital and expense. | ||||||||||||
Three Months | |||||||||||||
2015 | 2014 | ||||||||||||
PPL Electric from PPL Services | $ | 30 | $ | 41 | |||||||||
LKE from PPL Services | 4 | 4 | |||||||||||
PPL Electric from PPL EU Services | 15 | ||||||||||||
LG&E from LKS | 51 | 48 | |||||||||||
KU from LKS | 56 | 53 |
Other_Income_Expense_net_Table
Other Income (Expense) - net (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Other Income (Expense) Net [Line Items] | |||||||||||||||
Other Income (Expense) - net | The components of "Other Income (Expense) - net" for the periods ended March 31 were: | ||||||||||||||
Three Months | |||||||||||||||
2015 | 2014 | ||||||||||||||
Other Income | |||||||||||||||
Earnings on securities in NDT funds | $ | 7 | $ | 6 | |||||||||||
Interest income | 1 | 1 | |||||||||||||
AFUDC - equity component | 4 | 3 | |||||||||||||
Miscellaneous | 5 | 2 | |||||||||||||
Total Other Income | 17 | 12 | |||||||||||||
Other Expense | |||||||||||||||
Economic foreign currency exchange contracts (Note 14) | -88 | 24 | |||||||||||||
Charitable contributions | 5 | 7 | |||||||||||||
Spinoff of PPL Energy Supply transaction costs (Note 8) | 2 | ||||||||||||||
Miscellaneous | 3 | 4 | |||||||||||||
Total Other Expense | -78 | 35 | |||||||||||||
Other Income (Expense) - net | $ | 95 | $ | -23 |
Fair_Value_Measurements_and_Cr2
Fair Value Measurements and Credit Concentration (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Fair Value Measurements and Credit Concentration [Line Items] | |||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | The assets and liabilities measured at fair value were: | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,335 | $ | 1,335 | $ | 1,751 | $ | 1,751 | |||||||||||||||||||||
Short-term investments | 135 | 135 | 120 | 120 | |||||||||||||||||||||||||
Restricted cash and cash equivalents (a) | 231 | 231 | 224 | 224 | |||||||||||||||||||||||||
Price risk management assets: | |||||||||||||||||||||||||||||
Energy commodities | 1,298 | 2 | $ | 1,136 | $ | 160 | 1,318 | 6 | $ | 1,171 | $ | 141 | |||||||||||||||||
Foreign currency contracts | 209 | 209 | 130 | 130 | |||||||||||||||||||||||||
Cross-currency swaps | 49 | 49 | 29 | 28 | 1 | ||||||||||||||||||||||||
Total price risk management assets | 1,556 | 2 | 1,394 | 160 | 1,477 | 6 | 1,329 | 142 | |||||||||||||||||||||
NDT funds: | |||||||||||||||||||||||||||||
Cash and cash equivalents | 20 | 20 | 19 | 19 | |||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||
U.S. large-cap | 620 | 461 | 159 | 611 | 454 | 157 | |||||||||||||||||||||||
U.S. mid/small-cap | 93 | 38 | 55 | 89 | 37 | 52 | |||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||||||
U.S. Treasury | 97 | 97 | 99 | 99 | |||||||||||||||||||||||||
U.S. government sponsored agency | 8 | 8 | 9 | 9 | |||||||||||||||||||||||||
Municipality | 76 | 76 | 76 | 76 | |||||||||||||||||||||||||
Investment-grade corporate | 45 | 45 | 42 | 42 | |||||||||||||||||||||||||
Other | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||
Receivables (payables), net | 3 | 1 | 2 | 2 | 2 | ||||||||||||||||||||||||
Total NDT funds | 965 | 617 | 348 | 950 | 609 | 341 | |||||||||||||||||||||||
Auction rate securities (b) | 10 | 10 | 10 | 10 | |||||||||||||||||||||||||
Total assets | $ | 4,232 | $ | 2,320 | $ | 1,742 | $ | 170 | $ | 4,532 | $ | 2,710 | $ | 1,670 | $ | 152 | |||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Energy commodities | $ | 1,163 | $ | 2 | $ | 1,130 | $ | 31 | $ | 1,217 | $ | 5 | $ | 1,182 | $ | 30 | |||||||||||||
Interest rate swaps | 235 | 235 | 156 | 156 | |||||||||||||||||||||||||
Foreign currency contracts | 6 | 6 | 2 | 2 | |||||||||||||||||||||||||
Cross-currency swaps | 2 | 2 | 3 | 3 | |||||||||||||||||||||||||
Total price risk management liabilities | $ | 1,406 | $ | 2 | $ | 1,373 | $ | 31 | $ | 1,378 | $ | 5 | $ | 1,343 | $ | 30 | |||||||||||||
PPL Electric | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 35 | $ | 214 | $ | 214 | |||||||||||||||||||||
Restricted cash and cash equivalents (c) | 2 | 2 | 3 | 3 | |||||||||||||||||||||||||
Total assets | $ | 37 | $ | 37 | $ | 217 | $ | 217 | |||||||||||||||||||||
LKE | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 40 | $ | 40 | $ | 21 | $ | 21 | |||||||||||||||||||||
Cash collateral posted to counterparties (d) | 22 | 22 | 21 | 21 | |||||||||||||||||||||||||
Total assets | $ | 62 | $ | 62 | $ | 42 | $ | 42 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 174 | $ | 174 | $ | 114 | $ | 114 | |||||||||||||||||||||
Total price risk management liabilities | $ | 174 | $ | 174 | $ | 114 | $ | 114 | |||||||||||||||||||||
LG&E | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17 | $ | 17 | $ | 10 | $ | 10 | |||||||||||||||||||||
Cash collateral posted to counterparties (d) | 22 | 22 | 21 | 21 | |||||||||||||||||||||||||
Total assets | $ | 39 | $ | 39 | $ | 31 | $ | 31 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 113 | $ | 113 | $ | 81 | $ | 81 | |||||||||||||||||||||
Total price risk management liabilities | $ | 113 | $ | 113 | $ | 81 | $ | 81 | |||||||||||||||||||||
KU | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 23 | $ | 23 | $ | 11 | $ | 11 | |||||||||||||||||||||
Total assets | $ | 23 | $ | 23 | $ | 11 | $ | 11 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Price risk management liabilities: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 61 | $ | 33 | $ | 33 | |||||||||||||||||||||
Total price risk management liabilities | $ | 61 | $ | 61 | $ | 33 | $ | 33 | |||||||||||||||||||||
(a) Current portion is included in "Restricted cash and cash equivalents" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||||||||||||||||||||||||||||
(b) Included in "Other investments" on the Balance Sheets. | |||||||||||||||||||||||||||||
(c) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||||||||||||||||||||||||||||
(d) Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset. | |||||||||||||||||||||||||||||
Reconciliation of Net Assets and Liabilities Classified as Level 3 | A reconciliation of net assets and liabilities classified as Level 3 for the three months ended March 31 is as follows: | ||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Energy | Auction | Cross- | Energy | Auction | Cross- | ||||||||||||||||||||||||
Commodities, | Rate | Currency | Commodities, | Rate | Currency | ||||||||||||||||||||||||
net | Securities | Swaps | Total | net | Securities | Swaps | Total | ||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Balance at beginning of | |||||||||||||||||||||||||||||
period | $ | 111 | $ | 10 | $ | 1 | $ | 122 | $ | 24 | $ | 19 | $ | 43 | |||||||||||||||
Total realized/unrealized | |||||||||||||||||||||||||||||
gains (losses) | |||||||||||||||||||||||||||||
Included in earnings | -17 | -17 | -135 | -135 | |||||||||||||||||||||||||
Included in OCI (a) | 6 | 6 | $ | -1 | -1 | ||||||||||||||||||||||||
Sales | -3 | -3 | |||||||||||||||||||||||||||
Settlements | 30 | 30 | 128 | 128 | |||||||||||||||||||||||||
Transfers into Level 3 | 4 | 4 | |||||||||||||||||||||||||||
Transfers out of Level 3 | 1 | -7 | -6 | 1 | 1 | ||||||||||||||||||||||||
Balance at end of period | $ | 129 | $ | 10 | $ | $ | 139 | $ | 17 | $ | 16 | $ | $ | 33 | |||||||||||||||
(a) "Energy Commodities, net" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income. | |||||||||||||||||||||||||||||
Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities Classified as Level 3 | The significant unobservable inputs used in and quantitative information about the fair value measurement of assets and liabilities classified as Level 3 are as follows: | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Fair Value, net | Range | ||||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Energy commodities | |||||||||||||||||||||||||||||
Natural gas contracts (b) | $ | 49 | Discounted cash flow | Proprietary model used to calculate forward prices | 11% - 100% (43%) | ||||||||||||||||||||||||
Power sales contracts (c) | 1 | Discounted cash flow | Proprietary model used to calculate forward prices | 10% - 100% (82%) | |||||||||||||||||||||||||
Heat rate options (e) | 79 | Discounted cash flow | Proprietary model used to calculate forward prices | 22% - 44% (40%) | |||||||||||||||||||||||||
Auction rate securities (f) | 10 | Discounted cash flow | Modeled from SIFMA Index | 41% - 69% (53%) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Fair Value, net | Range | ||||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average) (a) | ||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Energy commodities | |||||||||||||||||||||||||||||
Natural gas contracts (b) | $ | 59 | Discounted cash flow | Proprietary model used to calculate forward prices | 11% - 100% (52%) | ||||||||||||||||||||||||
Power sales contracts (c) | -1 | Discounted cash flow | Proprietary model used to calculate forward prices | 10% - 100% (59%) | |||||||||||||||||||||||||
FTR purchase contracts (d) | 3 | Discounted cash flow | Historical settled prices used to model forward prices | 100% (100%) | |||||||||||||||||||||||||
Heat rate options (e) | 50 | Discounted cash flow | Proprietary model used to calculate forward prices | 23% - 51% (45%) | |||||||||||||||||||||||||
Auction rate securities (f) | 10 | Discounted cash flow | Modeled from SIFMA Index | 44% - 69% (63%) | |||||||||||||||||||||||||
Cross-currency swaps (g) | 1 | Discounted cash flow | Credit valuation adjustment | 15% (15%) | |||||||||||||||||||||||||
(a) For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs. For cross-currency swaps, the range and weighted average represent the percentage change in fair value due to the unobservable inputs used in the model to calculate the credit valuation adjustment. | |||||||||||||||||||||||||||||
(b) As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases. | |||||||||||||||||||||||||||||
(c) As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases. | |||||||||||||||||||||||||||||
(d) As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases). | |||||||||||||||||||||||||||||
(e) The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of the contracts increases/(decreases). | |||||||||||||||||||||||||||||
(f) The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases). | |||||||||||||||||||||||||||||
(g) The credit valuation adjustment incorporates projected probabilities of default and estimated recovery rates. As the credit valuation adjustment increases/(decreases), the fair value of the swaps (decreases)/increases. | |||||||||||||||||||||||||||||
The significant unobservable inputs used in and the quantitative information about the nonrecurring fair value measurement of assets and liabilities classified as Level 3 are as follows: | |||||||||||||||||||||||||||||
Fair Value, net | Significant | Range | |||||||||||||||||||||||||||
Asset | Valuation | Unobservable | (Weighted | ||||||||||||||||||||||||||
(Liability) | Technique | Input(s) | Average)(a) | ||||||||||||||||||||||||||
Kerr Dam Project | |||||||||||||||||||||||||||||
31-Mar-14 | $ | 29 | Discounted cash flow | Proprietary model used to calculate plant value | 38% (38%) | ||||||||||||||||||||||||
(a) The range and weighted average represent the percentage of fair value derived from the unobservable inputs. | |||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Classified as Level 3 Measured on Recurring Basis Included in Earnings | Net gains and losses on assets and liabilities classified as Level 3 and included in earnings for the three months ended are reported in the Statements of Income as follows: | ||||||||||||||||||||||||||||
Energy Commodities, net | |||||||||||||||||||||||||||||
Unregulated | Unregulated | Energy | |||||||||||||||||||||||||||
Wholesale Energy | Retail Energy | Purchases | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Total gains (losses) included in earnings | $ | 21 | $ | -89 | $ | -40 | $ | -63 | $ | 2 | $ | 17 | |||||||||||||||||
Change in unrealized gains (losses) relating | |||||||||||||||||||||||||||||
to positions still held at the reporting date | 25 | -13 | -9 | -33 | 1 | 1 | |||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on Nonrecurring Basis | The following nonrecurring fair value measurement occurred during the three months ended March 31, 2014, resulting in an asset impairment: | ||||||||||||||||||||||||||||
Carrying | Fair Value Measurements Using | ||||||||||||||||||||||||||||
Amount (a) | Level 3 | Loss (b) | |||||||||||||||||||||||||||
PPL | |||||||||||||||||||||||||||||
Kerr Dam Project | $ | 47 | $ | 29 | $ | 18 | |||||||||||||||||||||||
(a) Represents carrying value before fair value measurement. | |||||||||||||||||||||||||||||
(b) The loss on the Kerr Dam Project was recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the 2014 Statement of Income. | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||
Carrying | Carrying | ||||||||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||||||||
PPL | $ | 20,307 | $ | 23,258 | $ | 20,391 | $ | 22,670 | |||||||||||||||||||||
PPL Electric | 2,603 | 3,084 | 2,602 | 2,990 | |||||||||||||||||||||||||
LKE | 4,567 | 5,091 | 4,567 | 4,946 | |||||||||||||||||||||||||
LG&E | 1,353 | 1,493 | 1,353 | 1,455 | |||||||||||||||||||||||||
KU | 2,091 | 2,396 | 2,091 | 2,313 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities [Line Items] | ||||||||||||||||||||||||||||||
Commodity Price Risk (Non-trading) - Economic Activity - Pre-tax Gains (Losses) Associated with Economic Activity | The unrealized gains (losses) for economic activity for the periods ended March 31 were as follows. | |||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||
Unregulated wholesale energy | $ | -92 | $ | -789 | ||||||||||||||||||||||||||
Unregulated retail energy | -13 | -26 | ||||||||||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||||||
Fuel | -1 | |||||||||||||||||||||||||||||
Energy purchases | 145 | 580 | ||||||||||||||||||||||||||||
Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts | At March 31, 2015, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows. | |||||||||||||||||||||||||||||
Volumes (a) | ||||||||||||||||||||||||||||||
Commodity | Unit of Measure | 2015 (b) | 2016 | 2017 | Thereafter | |||||||||||||||||||||||||
Power | MWh | -30,874,062 | -8,521,382 | -248,329 | 2,236,333 | |||||||||||||||||||||||||
Capacity | MW-Month | -3,998 | -878 | 6 | 3 | |||||||||||||||||||||||||
Gas | MMBtu | 157,995,389 | 87,545,701 | 13,742,416 | 20,314,625 | |||||||||||||||||||||||||
FTRs | MW-Month | 532 | ||||||||||||||||||||||||||||
Oil | Barrels | 300,328 | 387,429 | 257,483 | 60,000 | |||||||||||||||||||||||||
(a) Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option. | ||||||||||||||||||||||||||||||
(b) Represents balance of the current year. | ||||||||||||||||||||||||||||||
Fair Value and Balance Sheet Location of Derivative Instruments | The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Derivatives designated as | Derivatives not designated | Derivatives designated as | Derivatives not designated | |||||||||||||||||||||||||||
hedging instruments | as hedging instruments | hedging instruments | as hedging instruments | |||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | $ | 160 | $ | 5 | $ | 94 | $ | 5 | ||||||||||||||||||||||
Cross-currency swaps (b) | $ | 1 | 2 | 3 | ||||||||||||||||||||||||||
Foreign currency | ||||||||||||||||||||||||||||||
contracts | 24 | $ | 106 | 2 | $ | 12 | $ | 67 | ||||||||||||||||||||||
Commodity contracts | 988 | 904 | 1,079 | 1,024 | ||||||||||||||||||||||||||
Total current | 25 | 162 | 1,094 | 911 | 12 | 97 | 1,146 | 1,029 | ||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps (b) | 23 | 47 | 14 | 43 | ||||||||||||||||||||||||||
Cross-currency swaps (b) | 48 | 29 | ||||||||||||||||||||||||||||
Foreign currency | ||||||||||||||||||||||||||||||
contracts | 10 | 69 | 4 | 5 | 46 | 2 | ||||||||||||||||||||||||
Commodity contracts | 310 | 259 | 239 | 193 | ||||||||||||||||||||||||||
Total noncurrent | 58 | 23 | 379 | 310 | 34 | 14 | 285 | 238 | ||||||||||||||||||||||
Total derivatives | $ | 83 | $ | 185 | $ | 1,473 | $ | 1,221 | $ | 46 | $ | 111 | $ | 1,431 | $ | 1,267 | ||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
(b) Excludes accrued interest, if applicable. | ||||||||||||||||||||||||||||||
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the three months ended March 31. | |||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||
Recognized | Recognized | |||||||||||||||||||||||||||||
in Income | in Income | |||||||||||||||||||||||||||||
on Derivative | Gain (Loss) | on Derivative | ||||||||||||||||||||||||||||
Gain (Loss) | (Ineffective | Reclassified | (Ineffective | |||||||||||||||||||||||||||
Location of | Reclassified | Portion and | from AOCI | Portion and | ||||||||||||||||||||||||||
Derivative Gain | Gain (Loss) | from AOCI | Amount | into | Amount | |||||||||||||||||||||||||
(Loss) Recognized in | Recognized | into Income | Excluded from | Income | Excluded from | |||||||||||||||||||||||||
Derivative | OCI (Effective Portion) | in Income | (Effective | Effectiveness | (Effective | Effectiveness | ||||||||||||||||||||||||
Relationships | 2015 | 2014 | on Derivative | Portion) | Testing) | Portion) | Testing) | |||||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | -19 | $ | -46 | Interest expense | $ | -4 | $ | -5 | $ | 2 | |||||||||||||||||||
Cross-currency swaps | 21 | -25 | Interest expense | 1 | ||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||||||
(expense) - net | 17 | -29 | ||||||||||||||||||||||||||||
Commodity contracts | Unregulated | |||||||||||||||||||||||||||||
wholesale energy | -2 | -1 | ||||||||||||||||||||||||||||
Energy purchases | 8 | 7 | ||||||||||||||||||||||||||||
Depreciation | 1 | 1 | ||||||||||||||||||||||||||||
Discontinued operations | 2 | |||||||||||||||||||||||||||||
Total | $ | 2 | $ | -71 | $ | 21 | $ | -25 | $ | 2 | ||||||||||||||||||||
Net Investment Hedges: | ||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 16 | $ | -4 | ||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized in | |||||||||||||||||||||||||||||
Hedging Instruments | Income on Derivative | 2015 | 2014 | |||||||||||||||||||||||||||
Foreign currency contracts | Other income (expense) - net | $ | 88 | $ | -24 | |||||||||||||||||||||||||
Interest rate swaps | Interest expense | -2 | -2 | |||||||||||||||||||||||||||
Commodity contracts | Unregulated wholesale energy (a) | -229 | -3,042 | |||||||||||||||||||||||||||
Unregulated retail energy | -39 | -64 | ||||||||||||||||||||||||||||
Fuel | -3 | -1 | ||||||||||||||||||||||||||||
Energy purchases (b) | 196 | 2,364 | ||||||||||||||||||||||||||||
Discontinued operations | -2 | |||||||||||||||||||||||||||||
Total | $ | 11 | $ | -771 | ||||||||||||||||||||||||||
Derivatives Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||||||||||||||||
Hedging Instruments | Regulatory Liabilities/Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets- noncurrent | $ | -56 | |||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) Recognized as | |||||||||||||||||||||||||||||
Hedging Instruments | Regulatory Liabilities/Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -4 | $ | -4 | |||||||||||||||||||||||||
(a) 2014 includes significant realized and unrealized losses on physical and financial commodity sales contracts due to the unusually cold weather. | ||||||||||||||||||||||||||||||
(b) 2014 includes significant realized and unrealized gains on physical and financial commodity purchase contracts due to the unusually cold weather. | ||||||||||||||||||||||||||||||
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | |||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | |||||||||||||||||||||||||||||
Cash | Cash | |||||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | |||||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,298 | $ | 990 | $ | 11 | $ | 297 | $ | 1,163 | $ | 990 | $ | 49 | $ | 124 | ||||||||||||||
Treasury Derivatives | 258 | 105 | 153 | 243 | 105 | 21 | 117 | |||||||||||||||||||||||
Total | $ | 1,556 | $ | 1,095 | $ | 11 | $ | 450 | $ | 1,406 | $ | 1,095 | $ | 70 | $ | 241 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 174 | $ | 21 | $ | 153 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 113 | $ | 21 | $ | 92 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 61 | $ | $ | 61 | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,318 | $ | 1,060 | $ | 10 | $ | 248 | $ | 1,217 | $ | 1,060 | $ | 58 | $ | 99 | ||||||||||||||
Treasury Derivatives | 159 | 65 | 94 | 161 | 65 | 21 | 75 | |||||||||||||||||||||||
Total | $ | 1,477 | $ | 1,125 | $ | 10 | $ | 342 | $ | 1,378 | $ | 1,125 | $ | 79 | $ | 174 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 114 | $ | 20 | $ | 94 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 81 | $ | 20 | $ | 61 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 33 | $ | 33 | ||||||||||||||||||||||||||
Credit Risk-Related Contingent Features | At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows: | |||||||||||||||||||||||||||||
PPL | LKE | LG&E | ||||||||||||||||||||||||||||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related | ||||||||||||||||||||||||||||||
contingent features | $ | 241 | $ | 31 | $ | 31 | ||||||||||||||||||||||||
Aggregate fair value of collateral posted on these derivative instruments | 140 | 22 | 22 | |||||||||||||||||||||||||||
Aggregate fair value of additional collateral requirements in the event of | ||||||||||||||||||||||||||||||
a credit downgrade below investment grade (a) | 128 | (b) | 10 | 10 | ||||||||||||||||||||||||||
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. | ||||||||||||||||||||||||||||||
(b) PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features. | ||||||||||||||||||||||||||||||
LG And E And KU Energy LLC [Member] | ||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities [Line Items] | ||||||||||||||||||||||||||||||
Fair Value and Balance Sheet Location of Derivative Instruments | The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 122 | $ | 66 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
(LKE and LG&E) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 5 | ||||||||||||||||||||||||||
Total current | 5 | 5 | ||||||||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | 47 | 43 | ||||||||||||||||||||||||||||
Total noncurrent | 47 | 43 | ||||||||||||||||||||||||||||
Total derivatives | $ | 52 | $ | 48 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -56 | |||||||||||||||||||||||||||
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Income on Derivatives | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | -2 | $ | -2 | |||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -4 | $ | -4 | |||||||||||||||||||||||||
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | |||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | |||||||||||||||||||||||||||||
Cash | Cash | |||||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | |||||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,298 | $ | 990 | $ | 11 | $ | 297 | $ | 1,163 | $ | 990 | $ | 49 | $ | 124 | ||||||||||||||
Treasury Derivatives | 258 | 105 | 153 | 243 | 105 | 21 | 117 | |||||||||||||||||||||||
Total | $ | 1,556 | $ | 1,095 | $ | 11 | $ | 450 | $ | 1,406 | $ | 1,095 | $ | 70 | $ | 241 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 174 | $ | 21 | $ | 153 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 113 | $ | 21 | $ | 92 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 61 | $ | $ | 61 | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,318 | $ | 1,060 | $ | 10 | $ | 248 | $ | 1,217 | $ | 1,060 | $ | 58 | $ | 99 | ||||||||||||||
Treasury Derivatives | 159 | 65 | 94 | 161 | 65 | 21 | 75 | |||||||||||||||||||||||
Total | $ | 1,477 | $ | 1,125 | $ | 10 | $ | 342 | $ | 1,378 | $ | 1,125 | $ | 79 | $ | 174 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 114 | $ | 20 | $ | 94 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 81 | $ | 20 | $ | 61 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 33 | $ | 33 | ||||||||||||||||||||||||||
Credit Risk-Related Contingent Features | At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows: | |||||||||||||||||||||||||||||
PPL | LKE | LG&E | ||||||||||||||||||||||||||||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related | ||||||||||||||||||||||||||||||
contingent features | $ | 241 | $ | 31 | $ | 31 | ||||||||||||||||||||||||
Aggregate fair value of collateral posted on these derivative instruments | 140 | 22 | 22 | |||||||||||||||||||||||||||
Aggregate fair value of additional collateral requirements in the event of | ||||||||||||||||||||||||||||||
a credit downgrade below investment grade (a) | 128 | (b) | 10 | 10 | ||||||||||||||||||||||||||
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. | ||||||||||||||||||||||||||||||
(b) PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features. | ||||||||||||||||||||||||||||||
Louisville Gas And Electric Co [Member] | ||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities [Line Items] | ||||||||||||||||||||||||||||||
Fair Value and Balance Sheet Location of Derivative Instruments | The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 33 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
(LKE and LG&E) | ||||||||||||||||||||||||||||||
The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments. | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 5 | $ | 5 | ||||||||||||||||||||||||||
Total current | 5 | 5 | ||||||||||||||||||||||||||||
Noncurrent: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | 47 | 43 | ||||||||||||||||||||||||||||
Total noncurrent | 47 | 43 | ||||||||||||||||||||||||||||
Total derivatives | $ | 52 | $ | 48 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -28 | |||||||||||||||||||||||||||
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the three months ended March 31. | ||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Income on Derivatives | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | -2 | $ | -2 | |||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -4 | $ | -4 | |||||||||||||||||||||||||
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | |||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | |||||||||||||||||||||||||||||
Cash | Cash | |||||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | |||||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,298 | $ | 990 | $ | 11 | $ | 297 | $ | 1,163 | $ | 990 | $ | 49 | $ | 124 | ||||||||||||||
Treasury Derivatives | 258 | 105 | 153 | 243 | 105 | 21 | 117 | |||||||||||||||||||||||
Total | $ | 1,556 | $ | 1,095 | $ | 11 | $ | 450 | $ | 1,406 | $ | 1,095 | $ | 70 | $ | 241 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 174 | $ | 21 | $ | 153 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 113 | $ | 21 | $ | 92 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 61 | $ | $ | 61 | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,318 | $ | 1,060 | $ | 10 | $ | 248 | $ | 1,217 | $ | 1,060 | $ | 58 | $ | 99 | ||||||||||||||
Treasury Derivatives | 159 | 65 | 94 | 161 | 65 | 21 | 75 | |||||||||||||||||||||||
Total | $ | 1,477 | $ | 1,125 | $ | 10 | $ | 342 | $ | 1,378 | $ | 1,125 | $ | 79 | $ | 174 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 114 | $ | 20 | $ | 94 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 81 | $ | 20 | $ | 61 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 33 | $ | 33 | ||||||||||||||||||||||||||
Credit Risk-Related Contingent Features | At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows: | |||||||||||||||||||||||||||||
PPL | LKE | LG&E | ||||||||||||||||||||||||||||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related | ||||||||||||||||||||||||||||||
contingent features | $ | 241 | $ | 31 | $ | 31 | ||||||||||||||||||||||||
Aggregate fair value of collateral posted on these derivative instruments | 140 | 22 | 22 | |||||||||||||||||||||||||||
Aggregate fair value of additional collateral requirements in the event of | ||||||||||||||||||||||||||||||
a credit downgrade below investment grade (a) | 128 | (b) | 10 | 10 | ||||||||||||||||||||||||||
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. | ||||||||||||||||||||||||||||||
(b) PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features. | ||||||||||||||||||||||||||||||
Kentucky Utilities Co [Member] | ||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities [Line Items] | ||||||||||||||||||||||||||||||
Fair Value and Balance Sheet Location of Derivative Instruments | The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||||||
Price Risk Management | ||||||||||||||||||||||||||||||
Assets/Liabilities (a): | ||||||||||||||||||||||||||||||
Interest rate swaps | $ | 61 | $ | 33 | ||||||||||||||||||||||||||
(a) Represents the location on the Balance Sheets. | ||||||||||||||||||||||||||||||
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31. | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in | ||||||||||||||||||||||||||||||
Derivative Instruments | Regulatory Assets | 2015 | 2014 | |||||||||||||||||||||||||||
Interest rate swaps | Regulatory assets - noncurrent | $ | -28 | |||||||||||||||||||||||||||
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | |||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||
Eligible for Offset | Eligible for Offset | |||||||||||||||||||||||||||||
Cash | Cash | |||||||||||||||||||||||||||||
Derivative | Collateral | Derivative | Collateral | |||||||||||||||||||||||||||
Gross | Instruments | Received | Net | Gross | Instruments | Pledged | Net | |||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,298 | $ | 990 | $ | 11 | $ | 297 | $ | 1,163 | $ | 990 | $ | 49 | $ | 124 | ||||||||||||||
Treasury Derivatives | 258 | 105 | 153 | 243 | 105 | 21 | 117 | |||||||||||||||||||||||
Total | $ | 1,556 | $ | 1,095 | $ | 11 | $ | 450 | $ | 1,406 | $ | 1,095 | $ | 70 | $ | 241 | ||||||||||||||
LKE | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 174 | $ | 21 | $ | 153 | ||||||||||||||||||||||||
LG&E | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 113 | $ | 21 | $ | 92 | ||||||||||||||||||||||||
KU | ||||||||||||||||||||||||||||||
Treasury Derivatives | $ | 61 | $ | $ | 61 | |||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
PPL | ||||||||||||||||||||||||||||||
Energy Commodities | $ | 1,318 | $ | 1,060 | $ | 10 | $ | 248 | $ | 1,217 | $ | 1,060 | $ | 58 | $ | 99 | ||||||||||||||
Treasury Derivatives | 159 | 65 | 94 | 161 | 65 | 21 | 75 | |||||||||||||||||||||||
Total | $ | 1,477 | $ | 1,125 | $ | 10 | $ | 342 | $ | 1,378 | $ | 1,125 | $ | 79 | $ | 174 |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Asset Retirement Obligation [Line Items] | |||||||||||||||
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
LG And E And KU Energy LLC [Member] | |||||||||||||||
Asset Retirement Obligation [Line Items] | |||||||||||||||
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Louisville Gas And Electric Co [Member] | |||||||||||||||
Asset Retirement Obligation [Line Items] | |||||||||||||||
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 | |||||||
Kentucky Utilities Co [Member] | |||||||||||||||
Asset Retirement Obligation [Line Items] | |||||||||||||||
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations | ||||||||||||||
(All Registrants except PPL Electric) | |||||||||||||||
The changes in the carrying amounts of AROs were as follows. | |||||||||||||||
PPL | LKE | LG&E | KU | ||||||||||||
Balance at December 31, 2014 | $ | 761 | $ | 285 | $ | 74 | $ | 211 | |||||||
Accretion | 12 | 3 | 1 | 2 | |||||||||||
Effect of foreign currency exchange rates | -1 | ||||||||||||||
Obligations settled | -1 | -1 | -1 | ||||||||||||
Balance at March 31, 2015 | $ | 771 | $ | 287 | $ | 74 | $ | 213 |
AvailableforSale_Securities_Ta
Available-for-Sale Securities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||
Available-for-Sale Securities [Line Items] | ||||||||||||||||||||||||||||||
Available-for-Sale Securities | The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI and the fair value of available-for-sale securities. | |||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Amortized | Unrealized | Unrealized | |||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||
NDT funds: | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 20 | $ | 20 | $ | 19 | $ | 19 | ||||||||||||||||||||||
Equity securities | 287 | $ | 426 | 713 | 283 | $ | 417 | 700 | ||||||||||||||||||||||
Debt securities | 218 | 12 | $ | 1 | 229 | 218 | 11 | 229 | ||||||||||||||||||||||
Receivables/payables, net | 3 | 3 | 2 | 2 | ||||||||||||||||||||||||||
Total NDT funds | $ | 528 | $ | 438 | $ | 1 | $ | 965 | $ | 522 | $ | 428 | $ | 950 | ||||||||||||||||
Auction rate securities | ||||||||||||||||||||||||||||||
PPL | $ | 11 | $ | 1 | $ | 10 | $ | 11 | $ | 1 | $ | 10 | ||||||||||||||||||
Scheduled Maturity Dates of Debt Securities | The following table shows the scheduled maturity dates of debt securities held at March 31, 2015. | |||||||||||||||||||||||||||||
Maturity | Maturity | Maturity | Maturity | |||||||||||||||||||||||||||
Less Than | 5-Jan | 10-Jun | in Excess | |||||||||||||||||||||||||||
1 Year | Years | Years | of 10 Years | Total | ||||||||||||||||||||||||||
Amortized cost | $ | 11 | $ | 82 | $ | 67 | $ | 69 | $ | 229 | ||||||||||||||||||||
Fair value | 11 | 84 | 70 | 74 | 239 | |||||||||||||||||||||||||
Proceeds From and Realized Gains and Losses on Sales of Available-for-sale Securities | The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended March 31. | |||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||
Proceeds from sales of NDT securities (a) | $ | 38 | $ | 27 | ||||||||||||||||||||||||||
Other proceeds from sales | 3 | |||||||||||||||||||||||||||||
Gross realized gains (b) | 5 | 3 | ||||||||||||||||||||||||||||
Gross realized losses (b) | 3 | 1 | ||||||||||||||||||||||||||||
(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust. | ||||||||||||||||||||||||||||||
(b) Excludes the impact of other-than-temporary impairment charges recognized on the Statements of Income. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | The after-tax changes in AOCI by component for the three months ended March 31 were as follows. | ||||||||||||||||||||||||
Foreign | Unrealized gains (losses) | Defined benefit plans | |||||||||||||||||||||||
currency | Available- | Equity | Prior | Actuarial | Transition | ||||||||||||||||||||
translation | for-sale | Qualifying | investees' | service | gain | asset | |||||||||||||||||||
adjustments | securities | derivatives | AOCI | costs | (loss) | (obligation) | Total | ||||||||||||||||||
December 31, 2014 | $ | -286 | $ | 202 | $ | 20 | $ | 1 | $ | 3 | $ | -2,215 | $ | 1 | $ | -2,274 | |||||||||
Amounts arising during the period | -66 | 5 | 6 | -1 | -56 | ||||||||||||||||||||
Reclassifications from AOCI | -1 | -17 | -1 | 38 | 19 | ||||||||||||||||||||
Net OCI during the period | -66 | 4 | -11 | -1 | 37 | -37 | |||||||||||||||||||
March 31, 2015 | $ | -352 | $ | 206 | $ | 9 | $ | $ | 3 | $ | -2,178 | $ | 1 | $ | -2,311 | ||||||||||
December 31, 2013 | $ | -11 | $ | 173 | $ | 94 | $ | 1 | $ | -6 | $ | -1,817 | $ | 1 | $ | -1,565 | |||||||||
Amounts arising during the period | 131 | 5 | -46 | 90 | |||||||||||||||||||||
Reclassifications from AOCI | -1 | 19 | 1 | 27 | 46 | ||||||||||||||||||||
Net OCI during the period | 131 | 4 | -27 | 1 | 27 | 136 | |||||||||||||||||||
March 31, 2014 | $ | 120 | $ | 177 | $ | 67 | $ | 1 | $ | -5 | $ | -1,790 | $ | 1 | $ | -1,429 | |||||||||
Reclassification out of Other Comprehensive Income (Loss) | The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the three months ended March 31. | ||||||||||||||||||||||||
Affected Line Item on the | |||||||||||||||||||||||||
Details about AOCI | 2015 | 2014 | Statements of Income | ||||||||||||||||||||||
Available-for-sale securities | $ | 2 | $ | 2 | Other Income (Expense) - net | ||||||||||||||||||||
Total Pre-tax | 2 | 2 | |||||||||||||||||||||||
Income Taxes | -1 | -1 | |||||||||||||||||||||||
Total After-tax | 1 | 1 | |||||||||||||||||||||||
Qualifying derivatives | |||||||||||||||||||||||||
Interest rate swaps | -4 | -3 | Interest Expense | ||||||||||||||||||||||
Cross-currency swaps | 17 | -29 | Other Income (Expense) - net | ||||||||||||||||||||||
1 | Interest Expense | ||||||||||||||||||||||||
Energy commodities | -2 | -1 | Unregulated wholesale energy | ||||||||||||||||||||||
8 | 7 | Energy purchases | |||||||||||||||||||||||
2 | Discontinued operations | ||||||||||||||||||||||||
1 | 1 | Other | |||||||||||||||||||||||
Total Pre-tax | 21 | -23 | |||||||||||||||||||||||
Income Taxes | -4 | 4 | |||||||||||||||||||||||
Total After-tax | 17 | -19 | |||||||||||||||||||||||
Equity investees' AOCI | 2 | Other Income (Expense) - net | |||||||||||||||||||||||
Total Pre-tax | 2 | ||||||||||||||||||||||||
Income Taxes | -1 | ||||||||||||||||||||||||
Total After-tax | 1 | ||||||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service costs | -2 | ||||||||||||||||||||||||
Net actuarial loss | -51 | -36 | |||||||||||||||||||||||
Total Pre-tax | -51 | -38 | |||||||||||||||||||||||
Income Taxes | 13 | 10 | |||||||||||||||||||||||
Total After-tax | -38 | -28 | |||||||||||||||||||||||
Total reclassifications during the period | $ | -19 | $ | -46 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
WPD [Member] | |||
Depreciation (Numeric) [Abstract] | |||
Weighted average useful life | 69 years | ||
Decrease in depreciation expense from change in weighted average useful lives | ($20) | ||
Decrease in depreciation expense from change in weighted average useful lives, after-tax | -16 | ||
Decrease in depreciation expense from change in weighted average useful lives, per share | $0.02 | ||
WPD [Member] | Previously Reported [Member] | |||
Depreciation (Numeric) [Abstract] | |||
Weighted average useful life | 55 years | ||
Unaffiliated Third Party Entity [Member] | |||
Accounts Receivable (Numeric) [Abstract] | |||
Purchases of accounts receivable | 331 | 362 | |
PPL Electric Utilities Corp [Member] | Unaffiliated Third Party Entity [Member] | |||
Accounts Receivable (Numeric) [Abstract] | |||
Purchases of accounts receivable | 331 | 362 | |
PPL Electric Utilities Corp [Member] | PPL EnergyPlus [Member] | |||
Accounts Receivable (Numeric) [Abstract] | |||
Purchases of accounts receivable | $93 | $105 |
Segment_and_Related_Informatio2
Segment and Related Information (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |||
Income Statement Data | ||||||
Revenues | $3,165 | $1,194 | [1] | |||
Net Income | 647 | 316 | ||||
Balance Sheet Data | ||||||
Assets | 48,921 | 48,864 | ||||
United Kingdom Regulated [Member] | ||||||
Income Statement Data | ||||||
Revenues | 697 | 648 | ||||
Net Income | 375 | 206 | [1] | |||
Balance Sheet Data | ||||||
Assets | 16,275 | 16,005 | ||||
Kentucky Regulated [Member] | ||||||
Income Statement Data | ||||||
Revenues | 899 | 934 | ||||
Net Income | 109 | 107 | ||||
Balance Sheet Data | ||||||
Assets | 13,109 | 13,062 | ||||
Pennsylvania Regulated [Member] | ||||||
Income Statement Data | ||||||
Revenues | 630 | 591 | ||||
Net Income | 87 | 85 | ||||
Balance Sheet Data | ||||||
Assets | 7,921 | 7,785 | ||||
Supply [Member] | ||||||
Income Statement Data | ||||||
Revenues | 937 | -982 | [1] | |||
Net Income | 95 | [1] | -75 | [1] | ||
Balance Sheet Data | ||||||
Assets | 10,631 | 11,025 | ||||
Corporate And Other [Member] | ||||||
Income Statement Data | ||||||
Revenues | 2 | 3 | ||||
Net Income | -19 | [2] | -7 | |||
Balance Sheet Data | ||||||
Assets | 985 | [3] | 987 | [3] | ||
Intersegment Eliminations [Member] | Supply [Member] | ||||||
Income Statement Data | ||||||
Revenues | ($9) | ($27) | ||||
[1] | Includes unrealized gains and losses from economic activity. See Note 14 for additional information. | |||||
[2] | 2015 includes most of the transaction and transition costs related to the anticipated spinoff of PPL Energy Supply. See Note 8 for additional information. | |||||
[3] | Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |||
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income (Numerator) | ||||
Income from continuing operations after income taxes attributable to PPL shareowners | $647 | $324 | ||
Less amounts allocated to participating securities | 3 | 2 | ||
Income from continuing operations after income taxes available to PPL shareowners - Basic | 644 | 322 | ||
Plus interest charges (net of tax) related to Equity Units | 0 | 9 | [1] | |
Income from continuing operations after income taxes available to PPL shareowners - Diluted | 644 | 331 | ||
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted | 0 | -8 | ||
Net income attributable to PPL shareowners | 647 | 316 | ||
Less amounts allocated to participating securities | 3 | 2 | ||
Net income available to PPL common shareowners - Basic | 644 | 314 | ||
Plus interest charges (net of tax) related to Equity Units | 0 | 9 | [1] | |
Net income available to PPL common shareowners - Diluted | $644 | $323 | ||
Shares of Common Stock (Denominator) | ||||
Weighted-average shares - Basic EPS (in shares) | 666,974 | 630,749 | ||
Add incremental non-participating securities: | ||||
Share-based payment awards (in shares) | 1,758 | 1,511 | ||
Equity Units (in shares) | 0 | 31,679 | [1] | |
Weighted-average shares - Diluted EPS (in shares) | 668,732 | 663,939 | ||
Basic EPS - Available to PPL common shareowners: | ||||
Income from continuing operations after income taxes (in dollars per share) | $0.97 | $0.51 | ||
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | $0 | ($0.01) | ||
Net Income (in dollars per share) | $0.97 | $0.50 | ||
Diluted EPS - Available to PPL common shareowners: | ||||
Income from continuing operations after income taxes (in dollars per share) | $0.96 | $0.50 | ||
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | $0 | ($0.01) | ||
Net Income (in dollars per share) | $0.96 | $0.49 | ||
Shares Issued (Numeric) [Abstract] | ||||
Common stock issued under stock-based compensation plans (in shares) | 1,445 | [2] | 1,096 | [2] |
Common stock issued under DRIP (in shares) | 419 | 0 | ||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computations of diluted EPS | 1,473 | 2,540 | ||
Performance Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computations of diluted EPS | 146 | 0 | ||
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the computations of diluted EPS | 0 | 123 | ||
[1] | In 2014, the If-Converted Method was applied to the Equity Units prior to the March 2014 settlement. | |||
[2] | Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Income Tax Expense) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 30, 2015 |
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $320 | $153 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | 25 | 3 | |
State valuation allowance adjustments | 3 | 0 | |
Impact of lower U.K. income tax rates | -62 | -44 | |
U.S. income tax on foreign earnings - net of foreign tax credit | -1 | 11 | |
Intercompany interest on U.K. financing entities | -8 | -2 | |
Other | -9 | -7 | |
Total increase (decrease) | -52 | -39 | |
Total income tax from continuing operations | 268 | 114 | |
Subsequent Event [Member] | Minimum [Member] | |||
Income Tax Other Numeric [Abstract] | |||
Expected refund for open audits for the years 1998-2011, subject to a final determination of interest on the refund | -20 | ||
Subsequent Event [Member] | Maximum [Member] | |||
Income Tax Other Numeric [Abstract] | |||
Expected refund for open audits for the years 1998-2011, subject to a final determination of interest on the refund | -30 | ||
PPL Electric Utilities Corp [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | 51 | 48 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | 10 | 8 | |
Other | -2 | -3 | |
Total increase (decrease) | 8 | 5 | |
Total income tax from continuing operations | 59 | 53 | |
LG And E And KU Energy LLC [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | 68 | 64 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | 7 | 7 | |
State valuation allowance adjustments | 3 | 0 | |
Other | -2 | -2 | |
Total increase (decrease) | 8 | 5 | |
Total income tax from continuing operations | 76 | 69 | |
Louisville Gas And Electric Co [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | 30 | 29 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | 3 | 3 | |
Other | 0 | -2 | |
Total increase (decrease) | 3 | 1 | |
Total income tax from continuing operations | 33 | 30 | |
Kentucky Utilities Co [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | 44 | 43 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | 4 | 4 | |
Other | -1 | -1 | |
Total increase (decrease) | 3 | 3 | |
Total income tax from continuing operations | $47 | $46 |
Utility_Rate_Regulation_Regula
Utility Rate Regulation (Regulatory Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | $23 | $37 |
Noncurrent regulatory assets | 1,610 | 1,562 |
Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 10 | 5 |
Gas Supply Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1 | 15 |
Fuel Adjustment Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 4 | 4 |
Transmission Service Charge [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 6 |
Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 705 | 720 |
Taxes Recoverable Through Future Rates [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 317 | 316 |
Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 116 | 124 |
Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 76 | 77 |
Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 182 | 122 |
Accumulated Cost Of Removal Of Utility Plant [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 117 | 114 |
Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 87 | 79 |
Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 8 | 7 |
Noncurrent regulatory assets | 10 | 10 |
PPL Electric Utilities Corp [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 3 | 12 |
Noncurrent regulatory assets | 891 | 897 |
PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 6 |
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 367 | 372 |
PPL Electric Utilities Corp [Member] | Taxes Recoverable Through Future Rates [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 317 | 316 |
PPL Electric Utilities Corp [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 42 | 46 |
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 48 | 49 |
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 117 | 114 |
PPL Electric Utilities Corp [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 3 | 6 |
LG And E And KU Energy LLC [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 20 | 25 |
Noncurrent regulatory assets | 719 | 665 |
LG And E And KU Energy LLC [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 10 | 5 |
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1 | 15 |
LG And E And KU Energy LLC [Member] | Fuel Adjustment Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 4 | 4 |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 338 | 348 |
LG And E And KU Energy LLC [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 74 | 78 |
LG And E And KU Energy LLC [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 28 | 28 |
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 182 | 122 |
LG And E And KU Energy LLC [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 87 | 79 |
LG And E And KU Energy LLC [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 5 | 1 |
Noncurrent regulatory assets | 10 | 10 |
Louisville Gas And Electric Co [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 12 | 21 |
Noncurrent regulatory assets | 422 | 397 |
Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 7 | 4 |
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1 | 15 |
Louisville Gas And Electric Co [Member] | Fuel Adjustment Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 4 | 2 |
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 208 | 215 |
Louisville Gas And Electric Co [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 41 | 43 |
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 18 | 18 |
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 121 | 89 |
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 30 | 28 |
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 4 | 4 |
Kentucky Utilities Co [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 8 | 4 |
Noncurrent regulatory assets | 297 | 268 |
Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 3 | 1 |
Kentucky Utilities Co [Member] | Fuel Adjustment Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 2 |
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 130 | 133 |
Kentucky Utilities Co [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 33 | 35 |
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 10 | 10 |
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 61 | 33 |
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 57 | 51 |
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 5 | 1 |
Noncurrent regulatory assets | $6 | $6 |
Utility_Rate_Regulation_Regula1
Utility Rate Regulation (Regulatory Liabilities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | $109 | $91 | ||
Noncurrent regulatory liabilities | 987 | 992 | ||
Generation Supply Charge [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 26 | 28 | ||
Demand Side Management [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 13 | 2 | ||
Gas Supply Clause [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 6 | 6 | ||
Transmission Formula Rate [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 49 | 42 | ||
Storm Damage Expense [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 7 | 3 | ||
Gas Line Tracker [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 2 | 3 | ||
Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 695 | 693 | ||
Coal Contracts [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 49 | [1] | 59 | [1] |
Power Purchase Agreement OVEC [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 90 | [1] | 92 | [1] |
Net Deferred Tax Assets [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 25 | 26 | ||
Act 129 Compliance Rider [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 26 | 18 | ||
Defined Benefit Plans [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 16 | 16 | ||
Interest Rate Swaps [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 84 | 84 | ||
Other Regulatory Liabilities [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 6 | 7 | ||
Noncurrent regulatory liabilities | 2 | 4 | ||
PPL Electric Utilities Corp [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 85 | 76 | ||
Noncurrent regulatory liabilities | 26 | 18 | ||
PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 26 | 28 | ||
PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 49 | 42 | ||
PPL Electric Utilities Corp [Member] | Storm Damage Expense [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 7 | 3 | ||
PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 26 | 18 | ||
PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 3 | 3 | ||
LG And E And KU Energy LLC [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 24 | 15 | ||
Noncurrent regulatory liabilities | 961 | 974 | ||
LG And E And KU Energy LLC [Member] | Demand Side Management [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 13 | 2 | ||
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 6 | 6 | ||
LG And E And KU Energy LLC [Member] | Gas Line Tracker [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 2 | 3 | ||
LG And E And KU Energy LLC [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 695 | 693 | ||
LG And E And KU Energy LLC [Member] | Coal Contracts [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 49 | [1] | 59 | [1] |
LG And E And KU Energy LLC [Member] | Power Purchase Agreement OVEC [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 90 | [1] | 92 | [1] |
LG And E And KU Energy LLC [Member] | Net Deferred Tax Assets [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 25 | 26 | ||
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 16 | 16 | ||
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 84 | 84 | ||
LG And E And KU Energy LLC [Member] | Other Regulatory Liabilities [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 3 | 4 | ||
Noncurrent regulatory liabilities | 2 | 4 | ||
Louisville Gas And Electric Co [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 14 | 10 | ||
Noncurrent regulatory liabilities | 454 | 458 | ||
Louisville Gas And Electric Co [Member] | Demand Side Management [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 5 | 1 | ||
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 6 | 6 | ||
Louisville Gas And Electric Co [Member] | Gas Line Tracker [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 2 | 3 | ||
Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 304 | 302 | ||
Louisville Gas And Electric Co [Member] | Coal Contracts [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 21 | [1] | 25 | [1] |
Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 62 | [1] | 63 | [1] |
Louisville Gas And Electric Co [Member] | Net Deferred Tax Assets [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 24 | 24 | ||
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 42 | 42 | ||
Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 1 | 0 | ||
Noncurrent regulatory liabilities | 1 | 2 | ||
Kentucky Utilities Co [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 10 | 5 | ||
Noncurrent regulatory liabilities | 507 | 516 | ||
Kentucky Utilities Co [Member] | Demand Side Management [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 8 | 1 | ||
Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 391 | 391 | ||
Kentucky Utilities Co [Member] | Coal Contracts [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 28 | [1] | 34 | [1] |
Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 28 | [1] | 29 | [1] |
Kentucky Utilities Co [Member] | Net Deferred Tax Assets [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 1 | 2 | ||
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 16 | 16 | ||
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Noncurrent regulatory liabilities | 42 | 42 | ||
Kentucky Utilities Co [Member] | Other Regulatory Liabilities [Member] | ||||
Regulatory Liabilities [Line Items] | ||||
Current regulatory liabilities | 2 | 4 | ||
Noncurrent regulatory liabilities | $1 | $2 | ||
[1] | These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. |
Utility_Rate_Regulation_Regula2
Utility Rate Regulation (Regulatory Matters) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 20, 2015 |
Y | |||
Regulatory Matters - United Kingdom Activities - Ofgem Review of Line Loss Calculation (Numeric) [Abstract] | |||
Charge to income during period for line loss incentive/penalty liability | $0 | $65 | |
Liability at period end regarding line loss incentive/penalty | 97 | ||
Regulatory Matters - Pennsylvania Activities - Smart Meter Rider (Numeric) [Abstract] | |||
Maximum number of years the cost of smart meters can be depreciated | 15 | ||
Projected cost of proposed smart meter replacement project | 450 | ||
PPL Electric [Member] | |||
Regulatory Matters - Pennsylvania Activities - Distribution System Improvement Charge (Numeric) [Abstract] | |||
Number of ratemaking mechanisms authorized for PUC approval | 2 | ||
Current percentage of billed revenues allowable for the distribution system improvement charge | 5.00% | ||
Requested percentage of billed revenues allowable for the distribution system improvement charge | 7.50% | ||
PPL Electric [Member] | Hurricane Sandy [Member] | |||
Regulatory Matters - Pennsylvania Activities - Storm Damage Expense Rider (Numeric) [Abstract] | |||
Amount of regulatory liability reversed | 12 | ||
Regulatory Matters - Storm Costs (Numeric) [Abstract] | |||
Amount of regulatory asset established | 29 | ||
Period over which storm costs will be recovered (in years) | 3 | ||
LGE [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
LGE [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 7 | ||
KU [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
KU [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 125 | ||
PPL Electric Utilities Corp [Member] | |||
Regulatory Matters - Pennsylvania Activities - Smart Meter Rider (Numeric) [Abstract] | |||
Maximum number of years the cost of smart meters can be depreciated | 15 | ||
Projected cost of proposed smart meter replacement project | 450 | ||
Regulatory Matters - Pennsylvania Activities - Distribution System Improvement Charge (Numeric) [Abstract] | |||
Number of ratemaking mechanisms authorized for PUC approval | 2 | ||
Current percentage of billed revenues allowable for the distribution system improvement charge | 5.00% | ||
Requested percentage of billed revenues allowable for the distribution system improvement charge | 7.50% | ||
PPL Electric Utilities Corp [Member] | Hurricane Sandy [Member] | |||
Regulatory Matters - Pennsylvania Activities - Storm Damage Expense Rider (Numeric) [Abstract] | |||
Amount of regulatory liability reversed | 12 | ||
Regulatory Matters - Storm Costs (Numeric) [Abstract] | |||
Amount of regulatory asset established | 29 | ||
Period over which storm costs will be recovered (in years) | 3 | ||
LG And E And KU Energy LLC [Member] | Federal Energy Regulatory Commission [Member] | |||
Regulatory Matters - Federal Matters - Federal Energy Regulatory Commission Wholesale Formula Rates (Numeric) [Abstract] | |||
Number of municipal customers impacted for Federal Energy Regulatory Commission formula rate request | 12 | ||
Number of municipalities that submitted termination notices, effective 2019 | 9 | ||
Number of municipalities that submitted termination notices, effective 2017 | 1 | ||
Number of municipalities that agreed to settlement terms of rate change request | 2 | ||
Requested return on equity for certain wholesale customers | 10.70% | ||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 10.00% | ||
LG And E And KU Energy LLC [Member] | LGE [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
LG And E And KU Energy LLC [Member] | LGE [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 7 | ||
LG And E And KU Energy LLC [Member] | KU [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
LG And E And KU Energy LLC [Member] | KU [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 125 | ||
Louisville Gas And Electric Co [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
Louisville Gas And Electric Co [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 7 | ||
Kentucky Utilities Co [Member] | Federal Energy Regulatory Commission [Member] | |||
Regulatory Matters - Federal Matters - Federal Energy Regulatory Commission Wholesale Formula Rates (Numeric) [Abstract] | |||
Number of municipal customers impacted for Federal Energy Regulatory Commission formula rate request | 12 | ||
Number of municipalities that submitted termination notices, effective 2019 | 9 | ||
Number of municipalities that submitted termination notices, effective 2017 | 1 | ||
Number of municipalities that agreed to settlement terms of rate change request | 2 | ||
Requested return on equity for certain wholesale customers | 10.70% | ||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 10.00% | ||
Kentucky Utilities Co [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Return on equity authorized to be utilized in the environmental cost recovery and gas line tracker mechanisms | 10.00% | ||
Number of years over which deferred costs associated with Green River Units 3 and 4 will be recovered | 3 years | ||
Number of years over which pension costs will be recovered | 15 years | ||
Kentucky Utilities Co [Member] | Subsequent Event [Member] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Dollar amount requested increase in base rates with anticipated rate case filing | 125 |
Financing_Activities_Credit_Ar
Financing Activities (Credit Arrangements) (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | ||||||||
WPD Limited [Member] | WPD Limited [Member] | WPD South West [Member] | WPD East Midlands [Member] | WPD East Midlands [Member] | WPD West Midlands [Member] | WPD [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Energy Supply [Member] | PPL Energy Supply [Member] | PPL Energy Supply [Member] | PPL Energy Supply [Member] | PPL Electric [Member] | LKE [Member] | LKE [Member] | LKE [Member] | LGE [Member] | KU [Member] | KU [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United Kingdom, Pounds [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member] | |||||||||
Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Bilateral Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Facility Agreement [Member] | Secured Trading Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | GBP (£) | GBP (£) | WPD Limited [Member] | WPD Limited [Member] | WPD Limited [Member] | WPD Limited [Member] | WPD South West [Member] | WPD East Midlands [Member] | WPD East Midlands [Member] | WPD East Midlands [Member] | WPD East Midlands [Member] | WPD West Midlands [Member] | WPD [Member] | WPD [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Capital Funding [Member] | PPL Energy Supply [Member] | PPL Energy Supply [Member] | PPL Electric [Member] | PPL Electric [Member] | LKE [Member] | LKE [Member] | LGE [Member] | LGE [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | Syndicated Credit Facility [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | LGE [Member] | KU [Member] | KU [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | United States of America, Dollars [Member] | |||||||||
USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Uncommitted Credit Facilities [Member] | Uncommitted Credit Facilities [Member] | USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Bilateral Credit Facility [Member] | Bilateral Credit Facility [Member] | Uncommitted Credit Facilities [Member] | Uncommitted Credit Facilities [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | Letter Of Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | LGE [Member] | LGE [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | KU [Member] | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | Letter Of Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||
Integer | USD ($) | GBP (£) | USD ($) | GBP (£) | GBP (£) | USD ($) | GBP (£) | USD ($) | GBP (£) | GBP (£) | GBP (£) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | USD ($) | USD ($) | Syndicated Credit Facility [Member] | Syndicated Credit Facility [Member] | Letter Of Credit Facility [Member] | Letter Of Credit Facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Activities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expiration date | 1-Dec-16 | 1-Jul-19 | 1-Jul-19 | 1-Jul-19 | 28-Jul-19 | 12-Nov-18 | 26-Mar-16 | 6-Nov-17 | 30-Jun-17 | 3-Nov-19 | 28-Jul-19 | 31-Oct-18 | 29-Jul-19 | 29-Jul-19 | 1-Oct-17 | 28-Jul-19 | 31-Oct-18 | 29-Jul-19 | 29-Jul-19 | 1-Oct-17 | 29-Jul-19 | 29-Jul-19 | 1-Oct-17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capacity | £ 1,120 | [1] | £ 210 | £ 245 | £ 300 | £ 300 | £ 65 | $815 | $300 | $300 | $150 | $65 | $3,000 | [2] | $300 | $75 | [2] | $500 | $598 | $400 | $198 | $300 | $75 | [2] | $500 | $598 | $400 | $198 | $500 | $598 | $400 | $198 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed | 277 | [1] | 167 | [1] | 200 | 130 | 161 | 103 | 226 | 147 | 100 | 64 | 600 | [2] | 630 | [2] | 75 | [2] | 75 | [2] | 75 | [2] | 75 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Letters of credit and commercial paper issued | 5 | [1] | 5 | [1] | 5 | 5 | 33 | 22 | 32 | 21 | 1 | 1 | 267 | [2] | 121 | [2] | 86 | 1 | 216 | 264 | 391 | 434 | 193 | 236 | 198 | 198 | 86 | 1 | 216 | 264 | 391 | 434 | 193 | 236 | 198 | 198 | 216 | 264 | 391 | 434 | 193 | 236 | 198 | 198 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unused capacity | 1,300 | 838 | [1] | 80 | 245 | 153 | 300 | 60 | 782 | 300 | 300 | 118 | 64 | 2,133 | [2] | 214 | 284 | 207 | 207 | 214 | 284 | 207 | 207 | 284 | 207 | 207 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate on outstanding borrowing | 1.87% | 1.86% | 1.00% | 1.00% | 2.12% | 2.05% | 1.68% | 1.67% | 1.68% | 1.67% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Potential maximum Facility Agreement capacity | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured energy marketing and trading facility capacity | 800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automatic renewal term (in years) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured obligations outstanding | $88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | WPD Ltd.'s amounts borrowed at March 31, 2015 and December 31, 2014 were USD-denominated borrowings of $200 million and $161 million, which bore interest at 1.87% and 1.86%. WPD (East Midlands) amounts borrowed at March 31, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $226 million and $100 million, which bore interest at 1.00% for both periods. At March 31, 2015, the unused capacity under the U.K. credit facilities was $1.3 billion. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | At March 31, 2015, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.12% and 1.68%. At December 31, 2014, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.05% and 1.67%. |
Financing_Activities_Shortterm
Financing Activities (Short-term Debt) (Details) (Commercial Paper [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Capacity | $1,000 | |
Commercial paper issuances | 494 | 500 |
Unused capacity | 506 | |
PPL Electric [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.57% | |
Capacity | 300 | |
Commercial paper issuances | 85 | |
Unused capacity | 215 | |
LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.63% | 0.42% |
Capacity | 350 | |
Commercial paper issuances | 216 | 264 |
Unused capacity | 134 | |
KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.62% | 0.49% |
Capacity | 350 | |
Commercial paper issuances | 193 | 236 |
Unused capacity | 157 | |
PPL Electric Utilities Corp [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.57% | |
Capacity | 300 | |
Commercial paper issuances | 85 | |
Unused capacity | 215 | |
LG And E And KU Energy LLC [Member] | LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.63% | 0.42% |
Capacity | 350 | |
Commercial paper issuances | 216 | 264 |
Unused capacity | 134 | |
LG And E And KU Energy LLC [Member] | KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.62% | 0.49% |
Capacity | 350 | |
Commercial paper issuances | 193 | 236 |
Unused capacity | 157 | |
Louisville Gas And Electric Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.63% | 0.42% |
Capacity | 350 | |
Commercial paper issuances | 216 | 264 |
Unused capacity | 134 | |
Kentucky Utilities Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.62% | 0.49% |
Capacity | 350 | |
Commercial paper issuances | 193 | 236 |
Unused capacity | $157 |
Financing_Activities_Longterm_
Financing Activities (Long-term Debt and Equity Securities) (Details) (USD $) | Feb. 26, 2015 |
In Millions, unless otherwise specified | |
At-the-Market Stock Offering Program (Numeric) [Abstract] | |
Aggregate sales price of common stock based on two separate equity distribution agreements | $500 |
Financing_Activities_Distribut
Financing Activities (Distributions and Capital Contributions) (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | |
Distributions [Line Items] | |||
Quarterly common stock dividend declaration date | 2015-02 | ||
Dividend payable date of quarterly common stock dividend | 1-Apr-15 | ||
Current quarterly common stock dividend (in dollars per share) | $0.37 | $0.37 | $0.37 |
Annualized current quarterly common stock dividend (in dollars per share) | $1.49 |
Acquisitions_Development_and_D3
Acquisitions, Development and Divestures (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Apr. 29, 2015 | ||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Spinoff transaction costs | $2,000,000 | $0 | |||
Discontinued Operations (Details) [Abstract] | |||||
Income (Loss) from Discontinued Operations (net of income taxes) | 0 | -8,000,000 | |||
Solar Generation Facility [Member] | |||||
Development Projects [Abstract] | |||||
Planned capacity expansion (in MW) | 10 | ||||
Expected capital cost of an expansion project | 36,000,000 | ||||
LGE [Member] | |||||
Development Projects [Abstract] | |||||
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 | ||||
PPL Energy Supply Spinoff [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Spinoff agreement execution date | 9-Jun-14 | ||||
Certain details of spinoff transaction | PPL and PPL Energy Supply executed definitive agreements with affiliates of Riverstone to combine their competitive power generation businesses into a new, stand-alone, publicly traded company named Talen Energy. Under the terms of the agreements, at closing, PPL will spin off to PPL shareowners a newly formed entity, Talen Energy Holdings, Inc. (Holdco), which at such time will own all of the membership interests of PPL Energy Supply and all of the common stock of Talen Energy. Immediately following the spinoff, Holdco will merge with a special purpose subsidiary of Talen Energy, with Holdco continuing as the surviving company to the merger and as a wholly owned subsidiary of Talen Energy and the sole owner of PPL Energy Supply. Substantially contemporaneous with the spinoff and merger, RJS Power will be contributed by its owners to become a subsidiary of Talen Energy. | ||||
Initial percent ownership in new company, Talen Energy, by PPL shareowners | 65.00% | ||||
Initial percent ownership in new company, Talen Energy, by Riverstone Holdings, LLC | 35.00% | ||||
Minimum capacity of revolving credit facility for Talen required at closing under agreement terms | 1,000,000,000 | ||||
Capacity, in total, to be divested in connection with the spinoff (in MW) | 1,300 | ||||
Number of asset groups proposed to be divested, one of which to be selected | 2 | ||||
Number of asset groups that will be divested | 1 | ||||
Maximum term after closing to divest an asset group (in months) | within 12 months | ||||
Spinoff expected completion date | June 1, 2015. | ||||
Number of shares of Talen common stock for one share of PPL common stock | 0.125 | ||||
Unamortized losses on interest rate swaps deferred in accumulated other comprehensive income | -55,000,000 | ||||
Montana Hydroelectric Generating Facilities [Member] | |||||
Divestitures - Montana Hydro Sale Agreement (Numeric) [Abstract] | |||||
Capacity of facilities sold (in MW) | 633 | ||||
Agreed upon sales price for disposal of hydroelectric facilities owned by PPL Montana | 900,000,000 | ||||
Number of hydroelectric facilities owned by PPL Montana sold | 11 | ||||
Discontinued Operations (Details) [Abstract] | |||||
Operating revenues | 29,000,000 | ||||
Interest expense | 2,000,000 | [1] | |||
Discontinued operations | -10,000,000 | [2] | |||
Income (Loss) from Discontinued Operations (net of income taxes) | -8,000,000 | [2] | |||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Amount of accrued libality for seperation benefits | 19,000,000 | 30,000,000 | |||
Spinoff transaction costs | 6,000,000 | 27,000,000 | |||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Minimum [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Additional seperation costs to be recognized at the spinoff closing date | 30,000,000 | ||||
Spinoff transaction costs | 60,000,000 | ||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Maximum [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Additional seperation costs to be recognized at the spinoff closing date | 40,000,000 | ||||
Spinoff transaction costs | 70,000,000 | ||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Other Operation And Maintenance [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Spinoff transaction costs | 4,000,000 | ||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Other Income (Expense) Net [Member] | |||||
Divestitures - Anticipated Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||
Spinoff transaction costs | 2,000,000 | ||||
LG And E And KU Energy LLC [Member] | Solar Generation Facility [Member] | |||||
Development Projects [Abstract] | |||||
Planned capacity expansion (in MW) | 10 | ||||
Expected capital cost of an expansion project | 36,000,000 | ||||
LG And E And KU Energy LLC [Member] | LGE [Member] | |||||
Development Projects [Abstract] | |||||
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 | ||||
Louisville Gas And Electric Co [Member] | |||||
Development Projects [Abstract] | |||||
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 | ||||
Louisville Gas And Electric Co [Member] | Solar Generation Facility [Member] | |||||
Development Projects [Abstract] | |||||
Planned capacity expansion (in MW) | 10 | ||||
Expected capital cost of an expansion project | 36,000,000 | ||||
Kentucky Utilities Co [Member] | Solar Generation Facility [Member] | |||||
Development Projects [Abstract] | |||||
Planned capacity expansion (in MW) | 10 | ||||
Expected capital cost of an expansion project | $36,000,000 | ||||
[1] | Represents allocated interest expense based upon the discontinued operations share of the net assets of PPL Energy Supply. | ||||
[2] | Includes an impairment charge related to the Kerr Dam Project. See Note 13 for additional information. |
Defined_Benefits_Details
Defined Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Benefits United States [Member] | ||
Defined Benefits [Line Items] | ||
Service cost | $32 | $26 |
Interest cost | 59 | 59 |
Expected return on plan assets | -79 | -74 |
Amortization of: | ||
Prior service cost | 2 | 5 |
Actuarial (gain) loss | 25 | 7 |
Net periodic defined benefit costs (credits) | 39 | 23 |
Pension Benefits United Kingdom [Member] | ||
Defined Benefits [Line Items] | ||
Service cost | 20 | 18 |
Interest cost | 79 | 88 |
Expected return on plan assets | -131 | -130 |
Amortization of: | ||
Prior service cost | 0 | 0 |
Actuarial (gain) loss | 39 | 33 |
Net periodic defined benefit costs (credits) | 7 | 9 |
Other Postretirement Benefits United States [Member] | ||
Defined Benefits [Line Items] | ||
Service cost | 4 | 3 |
Interest cost | 7 | 8 |
Expected return on plan assets | -7 | -6 |
Amortization of: | ||
Prior service cost | 0 | 0 |
Actuarial (gain) loss | 0 | 0 |
Net periodic defined benefit costs (credits) | 4 | 5 |
PPL Electric Utilities Corp [Member] | PPL Services [Member] | ||
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract] | ||
Costs allocated to subsidiary by plan sponsors | 8 | 5 |
LG And E And KU Energy LLC [Member] | Pension Benefits United States [Member] | LKE [Member] | ||
Defined Benefits [Line Items] | ||
Service cost | 7 | 6 |
Interest cost | 17 | 17 |
Expected return on plan assets | -22 | -20 |
Amortization of: | ||
Prior service cost | 2 | 1 |
Actuarial (gain) loss | 8 | 3 |
Net periodic defined benefit costs (credits) prior to termination benefits | 12 | 7 |
LG And E And KU Energy LLC [Member] | Other Postretirement Benefits United States [Member] | LKE [Member] | ||
Defined Benefits [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 2 | 2 |
Expected return on plan assets | -1 | -1 |
Amortization of: | ||
Prior service cost | 1 | 1 |
Actuarial (gain) loss | 0 | 0 |
Net periodic defined benefit costs (credits) prior to termination benefits | 3 | 3 |
Louisville Gas And Electric Co [Member] | LKE [Member] | ||
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract] | ||
Costs allocated to subsidiary by plan sponsors | 3 | 2 |
Louisville Gas And Electric Co [Member] | Pension Benefits United States [Member] | LKE [Member] | ||
Defined Benefits [Line Items] | ||
Interest cost | 3 | 4 |
Expected return on plan assets | -5 | -5 |
Amortization of: | ||
Prior service cost | 1 | 1 |
Actuarial (gain) loss | 3 | 1 |
Net periodic defined benefit costs (credits) prior to termination benefits | 2 | 1 |
Kentucky Utilities Co [Member] | LKE [Member] | ||
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract] | ||
Costs allocated to subsidiary by plan sponsors | $5 | $3 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Energy Purchases, Other Commitments, Legal Matters and Regulatory Issues) (Details) (USD $) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Apr. 20, 2015 | |
mi | Integer | |
Integer | ||
Legal Matters - Sierra Club Litigation (Numeric) [Abstract] | ||
Number of separate claims included in the complaint against PPL Montana | 39 | |
Average requested amount, per day per violation, of injuctive relief and civil penalities | $36,000 | |
Amount of civil penalities to be used for beneficial mitigation projects | 100,000 | |
Estimated number of post-2000 projects alleged not to be in compliance with the Clean Air Act | 40 | |
Number of plant projects that had claims dismissed under alleged Clean Air Act violations | 3 | |
Number of plant projects included in a second amended complaint under alleged Clean Air Act violations | 8 | |
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | ||
Number of residents that filed class action suit | 6 | |
Number of miles within plant that would include a class of residents | 4 | |
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | 1 | |
Regulatory Issues - Maryland Capacity Order (Numeric) [Abstract] | ||
Number electric utilities ordered to enter into long term contracts | 3 | |
Regulatory Issues - Pacific Northwest Markets (Numeric) [Abstract] | ||
Amount for claims remaining unsettled at period end | 50,000,000 | |
Settlement amount reached with one of the parties | 75,000 | |
Amount of claim sought by City of Tacoma | 23,000,000 | |
Regulatory Issues - Electric - Reliability Standards (Numeric) [Abstract] | ||
Maximum per day penalties for reliability violations | $1,000,000 | |
Subsequent Event [Member] | ||
Legal Matters - Sierra Club Litigation (Numeric) [Abstract] | ||
Number of plant projects with remaining claims to be pursued by plaintiffs | 4 | |
LGE [Member] | ||
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | ||
Generating units retired at the Cane Run plant | 1 | |
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 | |
PPL Electric Utilities Corp [Member] | ||
Regulatory Issues - Maryland Capacity Order (Numeric) [Abstract] | ||
Number electric utilities ordered to enter into long term contracts | 3 | |
LG And E And KU Energy LLC [Member] | ||
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | ||
Number of residents that filed class action suit | 6 | |
Number of miles within plant that would include a class of residents | 4 | |
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | 1 | |
LG And E And KU Energy LLC [Member] | LGE [Member] | ||
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | ||
Generating units retired at the Cane Run plant | 1 | |
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 | |
Louisville Gas And Electric Co [Member] | ||
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | ||
Number of residents that filed class action suit | 6 | |
Number of miles within plant that would include a class of residents | 4 | |
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | 1 | |
Generating units retired at the Cane Run plant | 1 | |
Generating units anticipated to be retired at the Cane Run plant in the third quarter of 2015 | 2 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Environmental Matter and Other) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Apr. 17, 2015 | Apr. 01, 2015 | |
Integer | |||
Environmental Matters - Domestic - Air - Cross State Air Pollution Rule (Numeric) [Abstract] | |||
Number of phases CSAPR will be implemented | 2 | ||
Environmental Matters - Domestic - Air - Mercury and Air Toxics (Numeric) [Abstract] | |||
Period for compliance with final mercury and air toxics standards (in years) | 3 | ||
Possible period of extension to comply with final mercury and air toxics standards (in years) | one and two | ||
Environmental Matters - Domestic - Air - Climate Change (Numeric) [Abstract] | |||
Percentage reduction of greenhouse gas emissions below 2005 levels by 2020 | 17.00% | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | ||
Number of companies cited in May 2011 Mississippi court filing | 87 | ||
Number of indirect subsidaries cited in a May 2011 Mississippi court filing | 3 | ||
Environmental Matters - Domestic - Air - Renewable Energy Legislation (Numeric) [Abstract] | |||
Proposed percentage of New Jersey renewable energy portfolio standard by 2020 | 30.00% | ||
Proposed percentage of New Jersey renewable energy portfolio standard by 2050 | 80.00% | ||
Environmental Matters - Domestic - Water/Waste - Seepages and Groundwater Infiltration - Pennsylvania, Montana and Kentucky (Numeric) [Abstract] | |||
Period for PPL Montana to provide financial assurance to Montana Department of Environmental Quality (in years) | 5 | ||
Other - Nuclear Insurance (Numeric) [Abstract] | |||
Maximum amount of insured property damage losses at nuclear station | $2,000,000,000 | ||
Maximum assessment for retroactive premiums for nuclear outage insurance coverage | 46,000,000 | ||
Maximum public liability for claims resulting an incident at nuclear station | 13,600,000,000 | ||
Maximum amount that could be assessed resulting from an incident at nuclear station | 255,000,000 | ||
Maximum amount payable per year resulting from an incident at nuclear station | 38,000,000 | ||
Subsequent Event [Member] | |||
Environmental Matters - Domestic - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract] | |||
Minimum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 3 years | ||
Maximum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 10 years | ||
Other - Nuclear Insurance (Numeric) [Abstract] | |||
Maximum assessment for retroactive premiums for nuclear outage insurance coverage | $55,000,000 | ||
PPL Electric Utilities Corp [Member] | |||
Environmental Matters - Domestic - Air - Climate Change (Numeric) [Abstract] | |||
Percentage reduction of greenhouse gas emissions below 2005 levels by 2020 | 17.00% | ||
LG And E And KU Energy LLC [Member] | |||
Environmental Matters - Domestic - Air - Cross State Air Pollution Rule (Numeric) [Abstract] | |||
Number of phases CSAPR will be implemented | 2 | ||
Environmental Matters - Domestic - Air - Mercury and Air Toxics (Numeric) [Abstract] | |||
Period for compliance with final mercury and air toxics standards (in years) | 3 | ||
Possible period of extension to comply with final mercury and air toxics standards (in years) | one and two | ||
Environmental Matters - Domestic - Air - Climate Change (Numeric) [Abstract] | |||
Percentage reduction of greenhouse gas emissions below 2005 levels by 2020 | 17.00% | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | ||
Number of companies cited in May 2011 Mississippi court filing | 87 | ||
Number of indirect subsidaries cited in a May 2011 Mississippi court filing | 3 | ||
LG And E And KU Energy LLC [Member] | Subsequent Event [Member] | |||
Environmental Matters - Domestic - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract] | |||
Minimum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 3 years | ||
Maximum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 10 years | ||
Louisville Gas And Electric Co [Member] | |||
Environmental Matters - Domestic - Air - Cross State Air Pollution Rule (Numeric) [Abstract] | |||
Number of phases CSAPR will be implemented | 2 | ||
Environmental Matters - Domestic - Air - Mercury and Air Toxics (Numeric) [Abstract] | |||
Period for compliance with final mercury and air toxics standards (in years) | 3 | ||
Possible period of extension to comply with final mercury and air toxics standards (in years) | one and two | ||
Generating units retired at the Cane Run plant | 1 | ||
Environmental Matters - Domestic - Air - Climate Change (Numeric) [Abstract] | |||
Percentage reduction of greenhouse gas emissions below 2005 levels by 2020 | 17.00% | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | ||
Number of companies cited in May 2011 Mississippi court filing | 87 | ||
Louisville Gas And Electric Co [Member] | Subsequent Event [Member] | |||
Environmental Matters - Domestic - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract] | |||
Minimum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 3 years | ||
Maximum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 10 years | ||
Kentucky Utilities Co [Member] | |||
Environmental Matters - Domestic - Air - Cross State Air Pollution Rule (Numeric) [Abstract] | |||
Number of phases CSAPR will be implemented | 2 | ||
Environmental Matters - Domestic - Air - Mercury and Air Toxics (Numeric) [Abstract] | |||
Period for compliance with final mercury and air toxics standards (in years) | 3 | ||
Possible period of extension to comply with final mercury and air toxics standards (in years) | one and two | ||
Environmental Matters - Domestic - Air - Climate Change (Numeric) [Abstract] | |||
Percentage reduction of greenhouse gas emissions below 2005 levels by 2020 | 17.00% | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | ||
Number of companies cited in May 2011 Mississippi court filing | 87 | ||
Number of indirect subsidaries cited in a May 2011 Mississippi court filing | 3 | ||
Kentucky Utilities Co [Member] | Subsequent Event [Member] | |||
Environmental Matters - Domestic - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract] | |||
Minimum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 3 years | ||
Maximum period to commence or complete closure activities under certain activities for coal combustion residuals (in years) | 10 years |
Commitments_and_Contingencies_3
Commitments and Contingencies (Guarantees and Other Assurances) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Guarantor Obligations [Line Items] | |||
Recorded liability for all guarantees | 37 | $38 | |
Other Guarantee (Numeric) [Abstract] | |||
Maximum aggregate coverage bodily injury and property damage | 225 | ||
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications Related To WPD Midlands Acquisition [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure is not estimateable | The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents. | ||
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Entities In Liquidation Sales Of Assets [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 11 | [1] | |
Expiration date | 2018 | ||
Minimum period that indemnifications generally expire (in years) | 2 | ||
Maximum period that indemnifications generally expire (in years) | 7 | ||
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Sales Of Assets [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 1,150 | ||
Expiration date minimum | 2016 | ||
Expiration date maximum | 2025 | ||
PPL Guarantee [Member] | Financial Guarantee [Member] | WPD Guarantee Of Pension And Other Obligations Of Unconsolidated Entities [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 114 | [2] | |
PPL Electric Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 32 | [3] | |
Expiration date | 2017 | ||
LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 301 | [4] | |
Expiration date minimum | 2021 | ||
Expiration date maximum | 2023 | ||
Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues | 200 | ||
Term of guarantee (in years) | 12 | ||
Maximum exposure of other guarantees expiring related to a terminated lease | 100 | ||
PPL Electric Utilities Corp [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 32 | [3] | |
Expiration date | 2017 | ||
LG And E And KU Energy LLC [Member] | |||
Guarantor Obligations [Line Items] | |||
Recorded liability for all guarantees | 19 | 19 | |
LG And E And KU Energy LLC [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | 301 | [4] | |
Expiration date minimum | 2021 | ||
Expiration date maximum | 2023 | ||
Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues | 200 | ||
Term of guarantee (in years) | 12 | ||
Maximum exposure of other guarantees expiring related to a terminated lease | 100 | ||
LG And E And KU Energy LLC [Member] | LGE And KU Guarantee [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure is not estimateable | The maximum exposure and the expiration date of these potential obligations are not presently determinable. | ||
Louisville Gas And Electric Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure is not estimateable | The maximum exposure and the expiration date of these potential obligations are not presently determinable. | ||
Kentucky Utilities Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure is not estimateable | The maximum exposure and the expiration date of these potential obligations are not presently determinable. | ||
[1] | Indemnification to the liquidators and certain others for existing liabilities or expenses or liabilities arising during the liquidation process. The indemnifications are limited to distributions made from the subsidiary to its parent either prior or subsequent to liquidation or are not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases where the agreements provide for specific limits. | ||
In connection with their sales of various businesses, WPD and its affiliates have provided the purchasers with indemnifications that are standard for such transactions, including indemnifications for certain pre-existing liabilities and environmental and tax matters or have agreed to continue their obligations under existing third-party guarantees, either for a set period of time following the transactions or upon the condition that the purchasers make reasonable efforts to terminate the guarantees. Finally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties. | |||
[2] | Relates to certain obligations of discontinued or modified electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At March 31, 2015, WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure has been estimated. | ||
[3] | A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any remaining inventory that has not been used or sold. | ||
[4] | LKE provides certain indemnifications, the most significant of which relate to the termination of the WKE lease in July 2009. These guarantees cover the due and punctual payment, performance and discharge by each party of its respective present and future obligations. The most comprehensive of these WKE-related guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under the WKE Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a cumulative maximum exposure of $200 million. Certain items such as government fines and penalties fall outside the cumulative cap. Another WKE-related LKE guarantee covers other indemnifications, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter, which granted LKE’s indemnitee certain rights of first refusal to purchase excess power at a market-based price rather than at an absolute fixed price. In January 2013, LKE's indemnitee commenced a proceeding in the Kentucky Court of Appeals appealing a December 2012 order of the Henderson Circuit Court, confirming the arbitration award. In May 2014, the Court of Appeals issued an opinion affirming the lower court decision.  LKE’s indemnitee filed a Motion for Discretionary Review with the Kentucky Supreme Court in October 2014. LKE believes its indemnification obligations in this matter remain subject to various uncertainties, including potential for additional legal challenges regarding the arbitration decision as well as future prices, availability and demand for the subject excess power. LKE continues to evaluate various legal and commercial options with respect to this indemnification matter. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum; LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. However, LKE is not aware of formal claims under such indemnities made by any party at this time. LKE cannot predict the ultimate outcomes of indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded. |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
PPL Electric Utilities Corp [Member] | PPL Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | $30 | $41 | |
PPL Electric Utilities Corp [Member] | PPL EU Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | 15 | 0 | |
LG And E And KU Energy LLC [Member] | |||
Intercompany Borrowings (Numeric) [Abstract] | |||
Notes payable to affiliates | 40 | 41 | |
LG And E And KU Energy LLC [Member] | PPL Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | 4 | 4 | |
LG And E And KU Energy LLC [Member] | PPL Energy Funding [Member] | |||
Intercompany Borrowings (Numeric) [Abstract] | |||
Intercompany borrowings demand note rate on outstanding borrowing | 1.67% | 1.65% | |
Intercompany note with affiliate maximum borrowing capacity | 225 | ||
Louisville Gas And Electric Co [Member] | PPL Services [Member] | |||
Intercompany Billings by LKS (Details) [Abstract] | |||
Intercompany billings between affiliates | 51 | 48 | |
Kentucky Utilities Co [Member] | PPL Services [Member] | |||
Intercompany Billings by LKS (Details) [Abstract] | |||
Intercompany billings between affiliates | $56 | $53 |
Other_Income_Expense_net_Detai
Other Income (Expense) - net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income [Line Items] | ||
Earnings on securities in nuclear decommissioning trust funds | $7 | $6 |
Interest income | 1 | 1 |
Allowance for funds used during construction - equity component | 4 | 3 |
Miscellaneous | 5 | 2 |
Other income | 17 | 12 |
Other Expense [Line Items] | ||
Economic foreign currency exchange contracts | -88 | 24 |
Charitable contributions | 5 | 7 |
Spinoff of PPL Energy Supply transaction costs | 2 | 0 |
Miscellaneous | 3 | 4 |
Other expense | -78 | 35 |
Other Income (Expense) - net | 95 | -23 |
PPL Electric Utilities Corp [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | 2 | 2 |
LG And E And KU Energy LLC [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | -1 | -2 |
Louisville Gas And Electric Co [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | -1 | -2 |
Kentucky Utilities Co [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | ($1) | $0 |
Fair_Value_Measurements_and_Cr3
Fair Value Measurements and Credit Concentration (Assets and Liabilities Measured on Recurring Basis Table) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Price risk management liabilities: | ||||
Total price risk management liabilities | $1,406 | $1,378 | ||
Recurring [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,335 | 1,751 | ||
Short-term investments | 135 | 120 | ||
Restricted cash and cash equivalents | 231 | [1] | 224 | [1] |
Price risk management assets: | ||||
Energy commodities assets | 1,298 | 1,318 | ||
Foreign currency contracts assets | 209 | 130 | ||
Cross-currency swaps assets | 49 | 29 | ||
Total price risk management assets | 1,556 | 1,477 | ||
NDT funds | 965 | 950 | ||
Auction rate securities | 10 | [2] | 10 | [2] |
Total assets | 4,232 | 4,532 | ||
Price risk management liabilities: | ||||
Energy commodities liabilities | 1,163 | 1,217 | ||
Interest rate swaps liabilities | 235 | 156 | ||
Foreign currency contracts liabilities | 6 | 2 | ||
Cross-currency swaps liabilities | 2 | 3 | ||
Total price risk management liabilities | 1,406 | 1,378 | ||
Recurring [Member] | Cash And Cash Equivalents [Member] | ||||
Price risk management assets: | ||||
NDT funds | 20 | 19 | ||
Recurring [Member] | United States Large Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 620 | 611 | ||
Recurring [Member] | United States Mid Small Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 93 | 89 | ||
Recurring [Member] | United States Treasury Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 97 | 99 | ||
Recurring [Member] | United States Government Sponsored Agency Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 8 | 9 | ||
Recurring [Member] | Municipality Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 76 | 76 | ||
Recurring [Member] | Investment Grade Corporate Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 45 | 42 | ||
Recurring [Member] | Other Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 3 | 3 | ||
Recurring [Member] | Receivables Payables Net [Member] | ||||
Price risk management assets: | ||||
NDT funds | 3 | 2 | ||
Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,335 | 1,751 | ||
Short-term investments | 135 | 120 | ||
Restricted cash and cash equivalents | 231 | [1] | 224 | [1] |
Price risk management assets: | ||||
Energy commodities assets | 2 | 6 | ||
Foreign currency contracts assets | 0 | 0 | ||
Cross-currency swaps assets | 0 | 0 | ||
Total price risk management assets | 2 | 6 | ||
NDT funds | 617 | 609 | ||
Auction rate securities | 0 | 0 | ||
Total assets | 2,320 | 2,710 | ||
Price risk management liabilities: | ||||
Energy commodities liabilities | 2 | 5 | ||
Interest rate swaps liabilities | 0 | 0 | ||
Foreign currency contracts liabilities | 0 | 0 | ||
Cross-currency swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 2 | 5 | ||
Recurring [Member] | Level 1 [Member] | Cash And Cash Equivalents [Member] | ||||
Price risk management assets: | ||||
NDT funds | 20 | 19 | ||
Recurring [Member] | Level 1 [Member] | United States Large Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 461 | 454 | ||
Recurring [Member] | Level 1 [Member] | United States Mid Small Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 38 | 37 | ||
Recurring [Member] | Level 1 [Member] | United States Treasury Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 97 | 99 | ||
Recurring [Member] | Level 1 [Member] | United States Government Sponsored Agency Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Municipality Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Investment Grade Corporate Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Other Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 1 [Member] | Receivables Payables Net [Member] | ||||
Price risk management assets: | ||||
NDT funds | 1 | 0 | ||
Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Energy commodities assets | 1,136 | 1,171 | ||
Foreign currency contracts assets | 209 | 130 | ||
Cross-currency swaps assets | 49 | 28 | ||
Total price risk management assets | 1,394 | 1,329 | ||
NDT funds | 348 | 341 | ||
Auction rate securities | 0 | 0 | ||
Total assets | 1,742 | 1,670 | ||
Price risk management liabilities: | ||||
Energy commodities liabilities | 1,130 | 1,182 | ||
Interest rate swaps liabilities | 235 | 156 | ||
Foreign currency contracts liabilities | 6 | 2 | ||
Cross-currency swaps liabilities | 2 | 3 | ||
Total price risk management liabilities | 1,373 | 1,343 | ||
Recurring [Member] | Level 2 [Member] | Cash And Cash Equivalents [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | United States Large Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 159 | 157 | ||
Recurring [Member] | Level 2 [Member] | United States Mid Small Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 55 | 52 | ||
Recurring [Member] | Level 2 [Member] | United States Treasury Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | United States Government Sponsored Agency Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 8 | 9 | ||
Recurring [Member] | Level 2 [Member] | Municipality Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 76 | 76 | ||
Recurring [Member] | Level 2 [Member] | Investment Grade Corporate Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 45 | 42 | ||
Recurring [Member] | Level 2 [Member] | Other Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 3 | 3 | ||
Recurring [Member] | Level 2 [Member] | Receivables Payables Net [Member] | ||||
Price risk management assets: | ||||
NDT funds | 2 | 2 | ||
Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Energy commodities assets | 160 | 141 | ||
Foreign currency contracts assets | 0 | 0 | ||
Cross-currency swaps assets | 0 | 1 | ||
Total price risk management assets | 160 | 142 | ||
NDT funds | 0 | 0 | ||
Auction rate securities | 10 | [2] | 10 | [2] |
Total assets | 170 | 152 | ||
Price risk management liabilities: | ||||
Energy commodities liabilities | 31 | 30 | ||
Interest rate swaps liabilities | 0 | 0 | ||
Foreign currency contracts liabilities | 0 | 0 | ||
Cross-currency swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 31 | 30 | ||
Recurring [Member] | Level 3 [Member] | Cash And Cash Equivalents [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | United States Large Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | United States Mid Small Cap Equity Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | United States Treasury Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | United States Government Sponsored Agency Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Municipality Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Investment Grade Corporate Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Other Debt Securities [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
Recurring [Member] | Level 3 [Member] | Receivables Payables Net [Member] | ||||
Price risk management assets: | ||||
NDT funds | 0 | 0 | ||
PPL Electric Utilities Corp [Member] | Recurring [Member] | ||||
Assets | ||||
Cash and cash equivalents | 35 | 214 | ||
Restricted cash and cash equivalents | 2 | [3] | 3 | [3] |
Price risk management assets: | ||||
Total assets | 37 | 217 | ||
PPL Electric Utilities Corp [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 35 | 214 | ||
Restricted cash and cash equivalents | 2 | [3] | 3 | [3] |
Price risk management assets: | ||||
Total assets | 37 | 217 | ||
PPL Electric Utilities Corp [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Total assets | 0 | 0 | ||
PPL Electric Utilities Corp [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Total assets | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Recurring [Member] | ||||
Assets | ||||
Cash and cash equivalents | 40 | 21 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 22 | [4] | 21 | [4] |
Total assets | 62 | 42 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 174 | 114 | ||
Total price risk management liabilities | 174 | 114 | ||
LG And E And KU Energy LLC [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 40 | 21 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 22 | [4] | 21 | [4] |
Total assets | 62 | 42 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 0 | 0 | ||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 174 | 114 | ||
Total price risk management liabilities | 174 | 114 | ||
LG And E And KU Energy LLC [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 0 | 0 | ||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Recurring [Member] | ||||
Assets | ||||
Cash and cash equivalents | 17 | 10 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 22 | [4] | 21 | [4] |
Total assets | 39 | 31 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 113 | 81 | ||
Total price risk management liabilities | 113 | 81 | ||
Louisville Gas And Electric Co [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 17 | 10 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 22 | [4] | 21 | [4] |
Total assets | 39 | 31 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 0 | 0 | ||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 113 | 81 | ||
Total price risk management liabilities | 113 | 81 | ||
Louisville Gas And Electric Co [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Cash collateral posted to counterparties | 0 | 0 | ||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 0 | 0 | ||
Kentucky Utilities Co [Member] | Recurring [Member] | ||||
Assets | ||||
Cash and cash equivalents | 23 | 11 | ||
Price risk management assets: | ||||
Total assets | 23 | 11 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 61 | 33 | ||
Total price risk management liabilities | 61 | 33 | ||
Kentucky Utilities Co [Member] | Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 23 | 11 | ||
Price risk management assets: | ||||
Total assets | 23 | 11 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | 0 | 0 | ||
Kentucky Utilities Co [Member] | Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 61 | 33 | ||
Total price risk management liabilities | 61 | 33 | ||
Kentucky Utilities Co [Member] | Recurring [Member] | Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Price risk management assets: | ||||
Total assets | 0 | 0 | ||
Price risk management liabilities: | ||||
Interest rate swaps liabilities | 0 | 0 | ||
Total price risk management liabilities | $0 | $0 | ||
[1] | Current portion is included in "Restricted cash and cash equivalents" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||
[2] | Included in "Other investments" on the Balance Sheets. | |||
[3] | Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | |||
[4] | Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset. |
Fair_Value_Measurements_and_Cr4
Fair Value Measurements and Credit Concentration (Net Asset and Liability Measured on Recurring Basis Level 3 Unobservable Inputs Reconciliation Rollforward) (Details) (Recurring [Member], Level 3 [Member], USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reconciliation of net assets and liabilities | ||||
Balance at beginning of period | $122 | $43 | ||
Total realized/unrealized gains (losses) | ||||
Included in earnings | -17 | -135 | ||
Included in OCI | 6 | [1] | -1 | [1] |
Sales | 0 | -3 | ||
Settlements | 30 | 128 | ||
Transfers into Level 3 | 4 | 0 | ||
Transfers out of Level 3 | -6 | 1 | ||
Balance at end of period | 139 | 33 | ||
Energy Commodities, Net [Member] | ||||
Reconciliation of net assets and liabilities | ||||
Balance at beginning of period | 111 | 24 | ||
Total realized/unrealized gains (losses) | ||||
Included in earnings | -17 | -135 | ||
Included in OCI | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 30 | 128 | ||
Transfers into Level 3 | 4 | 0 | ||
Transfers out of Level 3 | 1 | 0 | ||
Balance at end of period | 129 | 17 | ||
Auction Rate Securities [Member] | ||||
Reconciliation of net assets and liabilities | ||||
Balance at beginning of period | 10 | 19 | ||
Total realized/unrealized gains (losses) | ||||
Included in earnings | 0 | 0 | ||
Included in OCI | 0 | 0 | ||
Sales | 0 | -3 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Balance at end of period | 10 | 16 | ||
Cross Currency Swaps [Member] | ||||
Reconciliation of net assets and liabilities | ||||
Balance at beginning of period | 1 | 0 | ||
Total realized/unrealized gains (losses) | ||||
Included in earnings | 0 | 0 | ||
Included in OCI | 6 | [1] | -1 | [1] |
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | -7 | 1 | ||
Balance at end of period | $0 | $0 | ||
[1] | "Energy Commodities, net" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income. |
Fair_Value_Measurements_and_Cr5
Fair Value Measurements and Credit Concentration (Net Assets and Liabilities Measured on Recurring Basis Level 3 Significant Unobservable Inputs) (Details) (Level 3 [Member], USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |||
Recurring [Member] | Energy Commodities, Net [Member] | Natural Gas Contracts [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 49 | [1] | 59 | [1] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Natural Gas Contracts [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 100.00% | [2] | 100.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Natural Gas Contracts [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 11.00% | [2] | 11.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Natural Gas Contracts [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 43.00% | [2] | 52.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Power Sales Contracts [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 1 | [3] | -1 | [3] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Power Sales Contracts [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 100.00% | [2] | 100.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Power Sales Contracts [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 10.00% | [2] | 10.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Power Sales Contracts [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 82.00% | [2] | 59.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Financial Transmission Rights Purchase Contracts [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 3 | [4] | ||||
Recurring [Member] | Energy Commodities, Net [Member] | Financial Transmission Rights Purchase Contracts [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Historical settled prices used to model forward prices | 100.00% | [2] | ||||
Recurring [Member] | Energy Commodities, Net [Member] | Financial Transmission Rights Purchase Contracts [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Historical settled prices used to model forward prices | 100.00% | [2] | ||||
Recurring [Member] | Energy Commodities, Net [Member] | Financial Transmission Rights Purchase Contracts [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Historical settled prices used to model forward prices | 100.00% | [2] | ||||
Recurring [Member] | Energy Commodities, Net [Member] | Heat Rate Option [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 79 | [5] | 50 | [5] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Heat Rate Option [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 44.00% | [2] | 51.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Heat Rate Option [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 22.00% | [2] | 23.00% | [2] | ||
Recurring [Member] | Energy Commodities, Net [Member] | Heat Rate Option [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary model used to calculate forward prices | 40.00% | [2] | 45.00% | [2] | ||
Recurring [Member] | Auction Rate Securities [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 10 | [6] | 10 | [6] | ||
Recurring [Member] | Auction Rate Securities [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Modeled from SIFMA Index | 69.00% | [2] | 69.00% | [2] | ||
Recurring [Member] | Auction Rate Securities [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Modeled from SIFMA Index | 41.00% | [2] | 44.00% | [2] | ||
Recurring [Member] | Auction Rate Securities [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Modeled from SIFMA Index | 53.00% | [2] | 63.00% | [2] | ||
Recurring [Member] | Cross Currency Swaps [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 1 | [7] | ||||
Recurring [Member] | Cross Currency Swaps [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Credit valuation adjustment | 15.00% | [2] | ||||
Recurring [Member] | Cross Currency Swaps [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Credit valuation adjustment | 15.00% | [2] | ||||
Recurring [Member] | Cross Currency Swaps [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Credit valuation adjustment | 15.00% | [2] | ||||
Nonrecurring [Member] | Kerr Dam Project [Member] | ||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||||||
Fair value of net asset and (liability) | 29 | |||||
Nonrecurring [Member] | Kerr Dam Project [Member] | Discounted Cash Flow [Member] | Maximum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary Model Used To Calculate Plant Value | 38.00% | [8] | ||||
Nonrecurring [Member] | Kerr Dam Project [Member] | Discounted Cash Flow [Member] | Minimum [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary Model Used To Calculate Plant Value | 38.00% | [8] | ||||
Nonrecurring [Member] | Kerr Dam Project [Member] | Discounted Cash Flow [Member] | Weighted Average [Member] | ||||||
Fair Value Inputs [Abstract] | ||||||
Proprietary Model Used To Calculate Plant Value | 38.00% | [8] | ||||
[1] | As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases. | |||||
[2] | For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs. For cross-currency swaps, the range and weighted average represent the percentage change in fair value due to the unobservable inputs used in the model to calculate the credit valuation adjustment. | |||||
[3] | As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases. | |||||
[4] | As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases). | |||||
[5] | The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of the contracts increases/(decreases). | |||||
[6] | The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases). | |||||
[7] | The credit valuation adjustment incorporates projected probabilities of default and estimated recovery rates. As the credit valuation adjustment increases/(decreases), the fair value of the swaps (decreases)/increases. | |||||
[8] | The range and weighted average represent the percentage of fair value derived from the unobservable inputs. |
Fair_Value_Measurements_and_Cr6
Fair Value Measurements and Credit Concentration (Net Asset and Liability Measured on Recurring Basis Level 3 Gain Loss Included in Earnings and Other Recurring Numeric Data) (Details) (Recurring [Member], Level 3 [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net gains and losses on assets and liabilities [Abstract] | ||
Total gains (losses) included in earnings | ($17) | ($135) |
Energy Commodities, Net [Member] | Unregulated Wholesale Energy [Member] | ||
Net gains and losses on assets and liabilities [Abstract] | ||
Total gains (losses) included in earnings | 21 | -89 |
Change in unrealized gains (losses) relating to positions still held at the reporting date | 25 | -13 |
Energy Commodities, Net [Member] | Unregulated Retail Energy [Member] | ||
Net gains and losses on assets and liabilities [Abstract] | ||
Total gains (losses) included in earnings | -40 | -63 |
Change in unrealized gains (losses) relating to positions still held at the reporting date | -9 | -33 |
Energy Commodities, Net [Member] | Energy Purchases [Member] | ||
Net gains and losses on assets and liabilities [Abstract] | ||
Total gains (losses) included in earnings | 2 | 17 |
Change in unrealized gains (losses) relating to positions still held at the reporting date | $1 | $1 |
Fair_Value_Measurements_and_Cr7
Fair Value Measurements and Credit Concentration (Nonrecurring Fair Value Measurements) (Details) (Nonrecurring [Member], Kerr Dam Project [Member], USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Nonrecurring Fair Value Measurements [Abstract] | ||||
Loss | $18 | [1] | ||
Carrying Amount [Member] | ||||
Nonrecurring Fair Value Measurements [Abstract] | ||||
Nonrecurring measurement asset value | 47 | [2] | ||
Level 3 [Member] | ||||
Nonrecurring Fair Value Measurements [Abstract] | ||||
Nonrecurring measurement asset value | $29 | |||
[1] | The loss on the Kerr Dam Project was recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the 2014 Statement of Income. | |||
[2] | Represents carrying value before fair value measurement. |
Fair_Value_Measurements_and_Cr8
Fair Value Measurements and Credit Concentration (Financial Instruments Not Recorded at Fair Value and Credit Concentration) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Credit Concentration Associated with Financial Instruments (Numeric) [Abstract] | ||
Gross credit exposure from energy trading partners | $692 | |
Net credit exposure to energy trading partners | 402 | |
Dollar exposure to top ten energy trading counterparties | 220 | |
Percentage exposure to top ten energy trading counterparties | 55.00% | |
Number of counterparties in top ten that have investment grade credit rating | 8 | |
Percentage of top ten's exposure that consists of counterparties with investment grade credit rating (in hundreths) | 75.00% | |
Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 20,307 | 20,391 |
Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 23,258 | 22,670 |
PPL Electric Utilities Corp [Member] | Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 2,603 | 2,602 |
PPL Electric Utilities Corp [Member] | Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 3,084 | 2,990 |
LG And E And KU Energy LLC [Member] | Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 4,567 | 4,567 |
LG And E And KU Energy LLC [Member] | Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 5,091 | 4,946 |
Louisville Gas And Electric Co [Member] | Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 1,353 | 1,353 |
Louisville Gas And Electric Co [Member] | Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 1,493 | 1,455 |
Kentucky Utilities Co [Member] | Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 2,091 | 2,091 |
Kentucky Utilities Co [Member] | Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | $2,396 | $2,313 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Intro) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
MW | |||
Master Netting Arrangements (Numeric) [Line Items] | |||
Obligation to return cash collateral obligation under master netting arrangement | $11 | $11 | |
Cash collateral posted under master netting arrangements | 22 | 21 | |
Commodity Price Risk (Non-trading) [Line Items] | |||
Baseload generation fleet capacity (in MW) | 6,496 | ||
Intermediate and peaking generation fleet capacity (in MW) | 3,252 | ||
Commodity Price Risk (Non-trading) - Cash Flow Hedges (Numeric) [Abstract] | |||
Net unrealized after-tax gains (losses) expected to be reclassified into earnings within 12 months related to commodity price risk cash flow hedge contracts | 18 | ||
No or insignificant amounts previously recorded in AOCI reclassified to earnings related to commodity price risk cash flow hedge contracts | There were no such reclassifications for the three months ended March 31, 2015 and 2014. | ||
Commodity Price Risk (Non-trading) - Economic Activity (Numeric) [Abstract] | |||
Year of expiration of the maximum maturity date of economic activity derivative contracts | 2020 | ||
Unregulated Retail Energy [Member] | |||
Pre-tax Gains (Losses) of Economic Activity - Unregulated Business (Details) [Abstract] | |||
Pre-tax gain (loss) | -13 | -26 | |
Unregulated Wholesale Energy [Member] | |||
Pre-tax Gains (Losses) of Economic Activity - Unregulated Business (Details) [Abstract] | |||
Pre-tax gain (loss) | -92 | -789 | |
Fuel [Member] | |||
Pre-tax Gains (Losses) of Economic Activity - Unregulated Business (Details) [Abstract] | |||
Pre-tax gain (loss) | 0 | -1 | |
Energy Purchases [Member] | |||
Pre-tax Gains (Losses) of Economic Activity - Unregulated Business (Details) [Abstract] | |||
Pre-tax gain (loss) | 145 | 580 | |
LG And E And KU Energy LLC [Member] | |||
Master Netting Arrangements (Numeric) [Line Items] | |||
Cash collateral posted under master netting arrangements | 22 | 21 | |
Louisville Gas And Electric Co [Member] | |||
Master Netting Arrangements (Numeric) [Line Items] | |||
Cash collateral posted under master netting arrangements | $22 | $21 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Commodity Volumes) (Details) | Mar. 31, 2015 | |
MWh | ||
Sales Contracts [Member] | Power [Member] | 2015 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 30,874,062 | [1],[2] |
Sales Contracts [Member] | Power [Member] | 2016 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 8,521,382 | [1] |
Sales Contracts [Member] | Power [Member] | 2017 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 248,329 | [1] |
Sales Contracts [Member] | Capacity [Member] | 2015 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 3,998 | [1],[2] |
Sales Contracts [Member] | Capacity [Member] | 2016 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 878 | [1] |
Purchase Contracts [Member] | Power [Member] | Thereafter [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 2,236,333 | [1] |
Purchase Contracts [Member] | Capacity [Member] | 2017 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 6 | [1] |
Purchase Contracts [Member] | Capacity [Member] | Thereafter [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 3 | [1] |
Purchase Contracts [Member] | Gas [Member] | 2015 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 157,995,389 | [1],[2] |
Purchase Contracts [Member] | Gas [Member] | 2016 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 87,545,701 | [1] |
Purchase Contracts [Member] | Gas [Member] | 2017 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 13,742,416 | [1] |
Purchase Contracts [Member] | Gas [Member] | Thereafter [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 20,314,625 | [1] |
Purchase Contracts [Member] | Financial Transmission Rights [Member] | 2015 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 532 | [1],[2] |
Purchase Contracts [Member] | Oil [Member] | 2015 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 300,328 | [1],[2] |
Purchase Contracts [Member] | Oil [Member] | 2016 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 387,429 | [1] |
Purchase Contracts [Member] | Oil [Member] | 2017 [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 257,483 | [1] |
Purchase Contracts [Member] | Oil [Member] | Thereafter [Member] | ||
Commodity Volumetric Activity [Line Items] | ||
Notional amount (in units) | 60,000 | [1] |
[1] | Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option. | |
[2] | Represents balance of the current year. |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Risk Disclosures) (Details) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Cash Flow Hedges [Member] | Economic Hedges [Member] | Economic Hedges [Member] | Economic Hedges [Member] | Net Investment Hedges [Member] | Net Investment Hedges [Member] | Net Investment Hedges [Member] | Net Investment Hedges [Member] | LG And E And KU Energy LLC [Member] | LG And E And KU Energy LLC [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member] | Kentucky Utilities Co [Member] | |
USD ($) | Interest Rate Swap Contracts [Member] | Cross Currency Interest Rate Swaps [Member] | Interest Rate Swap Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Combined Foreign Currency Contracts And Intercompany Loans [Member] | Combined Foreign Currency Contracts And Intercompany Loans [Member] | Interest Rate Swap Contracts [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | Interest Rate Swap Contracts [Member] | USD ($) | Interest Rate Swap Contracts [Member] | USD ($) | ||
USD ($) | USD ($) | ||||||||||||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||||||||||||
Notional amount | $1,600,000,000 | $1,300,000,000 | $179,000,000 | $355,000,000 | £ 217,000,000 | $1,000,000,000 | $179,000,000 | $500,000,000 | $179,000,000 | $500,000,000 | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||||||||||||
Year of expiration of the maximum maturity date of interest rate cash flow hedge contracts | 2045 | 2045 | 2045 | 2045 | |||||||||||
Latest maturity date of cross-currency cash flow hedge contracts | 2028 | ||||||||||||||
Insignificant or no hedge ineffectiveness associated with interest rate cash flow hedges | For the three months ended March 31, 2015, PPL had no hedge ineffectiveness associated with interest rate derivatives and an insignificant amount for the three months ended March 31, 2014. | ||||||||||||||
No or insignificant after-tax gains (losses) previously recorded in AOCI reclassified to earnings related to interest rate cash flow hedge contracts | PPL had no such reclassifications for the three months ended March 31, 2015 associated with discontinued cash flow hedges and an insignificant amount reclassified for the three months ended March 31, 2014. | ||||||||||||||
Net unrealized after-tax gains (losses) on interest rate cash flow hedge contracts expected to be reclassified into earnings during next 12 months | -13,000,000 | ||||||||||||||
Interest Rate Risk - Economic Activity (Numeric) [Abstract] | |||||||||||||||
Year of expiration of the maximum maturity date of interest rate economic activity contracts | 2033 | 2033 | 2033 | ||||||||||||
Foreign Currency Risk - Net Investment Hedges (Numeric) [Abstract] | |||||||||||||||
Earliest settlement date of net investment hedge contracts | May-15 | May-15 | |||||||||||||
Latest settlement date of net investment hedge contracts | Jun-16 | Jun-16 | |||||||||||||
Net after tax gains (losses) on net investment hedges recognized in the foreign currency translation adjustment component of AOCI | 24,000,000 | 14,000,000 | |||||||||||||
Foreign Currency Risk - Economic Activity (Numeric) [Abstract] | |||||||||||||||
Total exposure hedged related to foreign currency contracts for anticipated earnings hedges classified as economic activity | $2,100,000,000 | £ 1,300,000,000 | |||||||||||||
Earliest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | Apr-15 | Apr-15 | |||||||||||||
Latest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | Mar-17 | Mar-17 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities (Fair Values) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | $1,556 | $1,477 | ||
Liability value | 1,406 | 1,378 | ||
Derivatives Designated As Hedging Instruments [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 83 | [1] | 46 | [1] |
Liability value | 185 | [1] | 111 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 25 | [1] | 12 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 1 | [1],[2] | 0 | |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 24 | [1] | 12 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 58 | [1] | 34 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 48 | [1],[2] | 29 | [1],[2] |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 10 | [1] | 5 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 162 | [1] | 97 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 160 | [1],[2] | 94 | [1],[2] |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 2 | [1],[2] | 3 | [1],[2] |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 23 | [1] | 14 | [1] |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 23 | [1],[2] | 14 | [1],[2] |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 1,473 | [1] | 1,431 | [1] |
Liability value | 1,221 | [1] | 1,267 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 1,094 | [1] | 1,146 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 106 | [1] | 67 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 988 | [1] | 1,079 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 379 | [1] | 285 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 69 | [1] | 46 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 310 | [1] | 239 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 911 | [1] | 1,029 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 5 | [1],[2] | 5 | [1],[2] |
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 2 | [1] | 0 | |
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 904 | [1] | 1,024 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 310 | [1] | 238 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 47 | [1],[2] | 43 | [1],[2] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Cross Currency Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 0 | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Foreign Currency Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 4 | [1] | 2 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Commodity Contracts [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 259 | [1] | 193 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 122 | [1] | 66 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Liability value | 52 | [1] | 48 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 5 | [1] | 5 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 5 | [1] | 5 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 47 | [1] | 43 | [1] |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 47 | [1] | 43 | [1] |
Louisville Gas And Electric Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 61 | [1] | 33 | [1] |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Liability value | 52 | [1] | 48 | [1] |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 5 | [1] | 5 | [1] |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 5 | [1] | 5 | [1] |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 47 | 43 | ||
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | 47 | [1] | 43 | [1] |
Kentucky Utilities Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Asset value | 0 | 0 | ||
Kentucky Utilities Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | ||||
Fair Values by Balance Sheet Location [Abstract] | ||||
Liability value | $61 | [1] | $33 | [1] |
[1] | Represents the location on the Balance Sheets | |||
[2] | Excludes accrued interest, if applicable. |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities (Gains and Losses) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flow Hedges [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | $21 | ($25) | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 2 | |
Cash Flow Hedges [Member] | Other Comprehensive Income [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in OCI on derivative (effective portion) | 2 | -71 | |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Other Comprehensive Income [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in OCI on derivative (effective portion) | -19 | -46 | |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | -4 | -5 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 2 | |
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Comprehensive Income [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in OCI on derivative (effective portion) | 21 | -25 | |
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Interest Expense [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 1 | 0 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Income (Expense) Net [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 17 | -29 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Unregulated Wholesale Energy [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | -2 | -1 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Depreciation [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 1 | 1 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Energy Purchases [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 8 | 7 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Discontinued Operations [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 0 | 2 | |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | |
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | Other Comprehensive Income [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in OCI on derivative (effective portion) | 16 | -4 | |
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -56 | 0 | |
Derivatives Not Designated As Hedging Instruments [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | 11 | -771 | |
Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -4 | -4 | |
Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -2 | -2 | |
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member] | Unregulated Wholesale Energy [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -229 | -3,042 | [1] |
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member] | Fuel [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -3 | -1 | |
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member] | Energy Purchases [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | 196 | 2,364 | [2] |
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member] | Unregulated Retail Energy [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -39 | -64 | |
Derivatives Not Designated As Hedging Instruments [Member] | Commodity Contracts [Member] | Discontinued Operations [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | 0 | -2 | |
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Income (Expense) Net [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | 88 | -24 | |
LG And E And KU Energy LLC [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -56 | 0 | |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -4 | -4 | |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -2 | -2 | |
Louisville Gas And Electric Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -28 | 0 | |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | -4 | -4 | |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized in income on derivative | -2 | -2 | |
Kentucky Utilities Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | |||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | |||
Gain (loss) recognized as regulatory liabilities/assets | ($28) | $0 | |
[1] | 2014 includes significant realized and unrealized losses on physical and financial commodity sales contracts due to the unusually cold weather. | ||
[2] | 2014 includes significant realized and unrealized gains on physical and financial commodity purchase contracts due to the unusually cold weather. |
Derivative_Instruments_and_Hed8
Derivative Instruments and Hedging Activities (Offseting Derivative Instruments and Credit Risk-Related Features) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | $1,556 | $1,477 | |
Derivative instruments eligible for offset - assets | 1,095 | 1,125 | |
Cash collateral received eligible for offset - assets | 11 | 10 | |
Net assets | 450 | 342 | |
Gross liabilities | 1,406 | 1,378 | |
Derivative instruments eligible for offset - liabilities | 1,095 | 1,125 | |
Cash collateral pledged eligible for offset - liabilities | 70 | 79 | |
Net liabilities | 241 | 174 | |
Credit Risk-Related Contingent Features [Abstract] | |||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features | 241 | ||
Aggregate fair value of collateral posted on these derivative instruments | 140 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | 128 | [1],[2] | |
Energy Commodities [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 1,298 | 1,318 | |
Derivative instruments eligible for offset - assets | 990 | 1,060 | |
Cash collateral received eligible for offset - assets | 11 | 10 | |
Net assets | 297 | 248 | |
Gross liabilities | 1,163 | 1,217 | |
Derivative instruments eligible for offset - liabilities | 990 | 1,060 | |
Cash collateral pledged eligible for offset - liabilities | 49 | 58 | |
Net liabilities | 124 | 99 | |
Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 258 | 159 | |
Derivative instruments eligible for offset - assets | 105 | 65 | |
Net assets | 153 | 94 | |
Gross liabilities | 243 | 161 | |
Derivative instruments eligible for offset - liabilities | 105 | 65 | |
Cash collateral pledged eligible for offset - liabilities | 21 | 21 | |
Net liabilities | 117 | 75 | |
LG And E And KU Energy LLC [Member] | |||
Credit Risk-Related Contingent Features [Abstract] | |||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features | 31 | ||
Aggregate fair value of collateral posted on these derivative instruments | 22 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | 10 | [2] | |
LG And E And KU Energy LLC [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross liabilities | 174 | 114 | |
Cash collateral pledged eligible for offset - liabilities | 21 | 20 | |
Net liabilities | 153 | 94 | |
Louisville Gas And Electric Co [Member] | |||
Credit Risk-Related Contingent Features [Abstract] | |||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features | 31 | ||
Aggregate fair value of collateral posted on these derivative instruments | 22 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | 10 | [2] | |
Louisville Gas And Electric Co [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross liabilities | 113 | 81 | |
Cash collateral pledged eligible for offset - liabilities | 21 | 20 | |
Net liabilities | 92 | 61 | |
Kentucky Utilities Co [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross liabilities | 61 | 33 | |
Net liabilities | $61 | $33 | |
[1] | PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features. | ||
[2] | Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
Goodwill_Details
Goodwill (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Changes in the Carrying Amount of Goodwill by Segment [Roll Forward] | ||
Balance at beginning of period | $3,964 | $4,005 |
Balance at end of period | $3,964 | $4,005 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Asset Retirement Obligation [Rollforward] | |
Balance at Beginning of Period | $761 |
Accretion | 12 |
Effect of foreign currency exchange rates | -1 |
Obligations settled | -1 |
Balance at End of Period | 771 |
LG And E And KU Energy LLC [Member] | |
Asset Retirement Obligation [Rollforward] | |
Balance at Beginning of Period | 285 |
Accretion | 3 |
Obligations settled | -1 |
Balance at End of Period | 287 |
Louisville Gas And Electric Co [Member] | |
Asset Retirement Obligation [Rollforward] | |
Balance at Beginning of Period | 74 |
Accretion | 1 |
Obligations settled | -1 |
Balance at End of Period | 74 |
Kentucky Utilities Co [Member] | |
Asset Retirement Obligation [Rollforward] | |
Balance at Beginning of Period | 211 |
Accretion | 2 |
Balance at End of Period | $213 |
AvailableforSale_Securities_De
Available-for-Sale Securities (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
Available-for-Sale Securities Scheduled Maturity Dates of Debt Securities (Details) [Abstract] | |||||
Amortized cost - maturity less than 1 year | $11 | ||||
Amortized cost - maturity between 1 and 5 years | 82 | ||||
Amortized cost - maturity between 6 and 10 years | 67 | ||||
Amortized cost - maturity in excess of 10 years | 69 | ||||
Amortized cost total | 229 | ||||
Fair value - maturity less than 1 year | 11 | ||||
Fair value - maturity between 1 and 5 years | 84 | ||||
Fair value - maturity between 6 and 10 years | 70 | ||||
Fair value - maturity in excess of 10 years | 74 | ||||
Fair value total | 239 | ||||
Available-for-Sale Securities Proceeds From and Realized Gains and Losses (Details) [Abstract] | |||||
Proceeds from sales of NDT securities | 38 | [1] | 27 | [1] | |
Other proceeds from sales | 0 | 3 | |||
Gross realized gains | 5 | [2] | 3 | [2] | |
Gross realized losses | 3 | [2] | 1 | [2] | |
Nuclear Decommissioning Trust Funds [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 528 | 522 | |||
Gross unrealized gains | 438 | 428 | |||
Gross unrealized losses | 1 | 0 | |||
Fair value | 965 | 950 | |||
Nuclear Decommissioning Trust Funds [Member] | Cash And Cash Equivalents [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 20 | 19 | |||
Gross unrealized gains | 0 | 0 | |||
Gross unrealized losses | 0 | 0 | |||
Fair value | 20 | 19 | |||
Nuclear Decommissioning Trust Funds [Member] | Equity Securities [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 287 | 283 | |||
Gross unrealized gains | 426 | 417 | |||
Gross unrealized losses | 0 | 0 | |||
Fair value | 713 | 700 | |||
Nuclear Decommissioning Trust Funds [Member] | Debt Securities [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 218 | 218 | |||
Gross unrealized gains | 12 | 11 | |||
Gross unrealized losses | 1 | 0 | |||
Fair value | 229 | 229 | |||
Nuclear Decommissioning Trust Funds [Member] | Receivables Payables Net [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 3 | 2 | |||
Gross unrealized gains | 0 | 0 | |||
Gross unrealized losses | 0 | 0 | |||
Fair value | 3 | 2 | |||
Auction Rate Securities [Member] | |||||
Available-for-Sale Securities Balance Sheet (Details) [Abstract] | |||||
Amortized cost | 11 | 11 | |||
Gross unrealized gains | 0 | 0 | |||
Gross unrealized losses | 1 | 1 | |||
Fair value | $10 | $10 | |||
[1] | These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust. | ||||
[2] | Excludes the impact of other-than-temporary impairment charges recognized on the Statements of Income. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (After-tax Changes by Component) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | ($2,274) | ($1,565) |
Amounts arising during the period | -56 | 90 |
Reclassifications from accumulated other comprehensive income | 19 | 46 |
Net other comprehensive income during the period | -37 | 136 |
Balance at end of period | -2,311 | -1,429 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | -286 | -11 |
Amounts arising during the period | -66 | 131 |
Reclassifications from accumulated other comprehensive income | 0 | 0 |
Net other comprehensive income during the period | -66 | 131 |
Balance at end of period | -352 | 120 |
Available For Sale Securities Unrealized Gains (Losses) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 202 | 173 |
Amounts arising during the period | 5 | 5 |
Reclassifications from accumulated other comprehensive income | -1 | -1 |
Net other comprehensive income during the period | 4 | 4 |
Balance at end of period | 206 | 177 |
Qualifying Derivatives Unrealized Gains (Losses) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 20 | 94 |
Amounts arising during the period | 6 | -46 |
Reclassifications from accumulated other comprehensive income | -17 | 19 |
Net other comprehensive income during the period | -11 | -27 |
Balance at end of period | 9 | 67 |
Equity Investees Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1 | 1 |
Amounts arising during the period | 0 | 0 |
Reclassifications from accumulated other comprehensive income | -1 | 0 |
Net other comprehensive income during the period | -1 | 0 |
Balance at end of period | 0 | 1 |
Defined Benefit Plans Prior Service Costs [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 3 | -6 |
Amounts arising during the period | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 1 |
Net other comprehensive income during the period | 0 | 1 |
Balance at end of period | 3 | -5 |
Defined Benefit Plans Actuarial Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | -2,215 | -1,817 |
Amounts arising during the period | -1 | 0 |
Reclassifications from accumulated other comprehensive income | 38 | 27 |
Net other comprehensive income during the period | 37 | 27 |
Balance at end of period | -2,178 | -1,790 |
Defined Benefit Plans Transition Assset Obligation [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1 | 1 |
Amounts arising during the period | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 0 |
Net other comprehensive income during the period | 0 | 0 |
Balance at end of period | $1 | $1 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Income (Expense) Effect of Reclassifications) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Affected Line Item on the Statements of Income [Line Items] | ||
Unregulated wholesale energy | $521 | ($1,457) |
Energy purchases | -321 | 1,494 |
Depreciation | -293 | -300 |
Other Income (Expense) - net | 95 | -23 |
Interest Expense | -247 | -262 |
Total Pre-tax | 915 | 438 |
Income Taxes | -268 | -114 |
Total After-Tax | 647 | 324 |
Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total After-Tax | -19 | -46 |
Available For Sale Securities [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Other Income (Expense) - net | 2 | 2 |
Total Pre-tax | 2 | 2 |
Income Taxes | -1 | -1 |
Total After-Tax | 1 | 1 |
Qualifying Derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | 21 | -23 |
Income Taxes | -4 | 4 |
Total After-Tax | 17 | -19 |
Qualifying Derivatives [Member] | Interest Rate Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Interest Expense | -4 | -3 |
Qualifying Derivatives [Member] | Cross Currency Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Other Income (Expense) - net | 17 | -29 |
Interest Expense | 1 | 0 |
Qualifying Derivatives [Member] | Energy Commodities [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Unregulated wholesale energy | -2 | -1 |
Energy purchases | 8 | 7 |
Discontinued operations | 0 | 2 |
Other | 1 | 1 |
Defined Benefit Plans [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | -51 | -38 |
Income Taxes | 13 | 10 |
Total After-Tax | -38 | -28 |
Defined Benefit Plans [Member] | Prior Service Costs [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | 0 | -2 |
Defined Benefit Plans [Member] | Net Actuarial Loss [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | -51 | -36 |
Equity Investees Accumulated Other Comprehensive Income [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Other Income (Expense) - net | 2 | 0 |
Total Pre-tax | 2 | 0 |
Income Taxes | -1 | 0 |
Total After-Tax | $1 | $0 |