Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Entity Registrant Name | PPL Corp | |
Entity Central Index Key | 922,224 | |
Current Fiscal Year End Date | --12-31 | |
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 | 672,845,584 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
PPL Electric Utilities Corp [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | false | |
Entity Registrant Name | PPL ELECTRIC UTILITIES CORP | |
Entity Central Index Key | 317,187 | |
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 | 1,518,339 | |
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 | 60,549 | |
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 | 55,387 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,817,878 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Operating Revenues | |||||
Operating Revenues | $ 1,878 | $ 1,879 | $ 5,889 | $ 5,906 | |
Operation | |||||
Fuel | 228 | 240 | 695 | 748 | |
Energy purchases | 177 | 173 | 676 | 683 | |
Other operation and maintenance | 482 | 467 | 1,405 | 1,382 | |
Depreciation | 226 | 233 | 658 | 688 | |
Taxes, other than income | 79 | 78 | 241 | 238 | |
Total Operating Expenses | 1,192 | 1,191 | 3,675 | 3,739 | |
Operating Income | 686 | 688 | 2,214 | 2,167 | |
Other Income (Expense) - net | 75 | 136 | 61 | 33 | |
Interest Expense | 221 | 213 | 645 | 637 | |
Income Before Income Taxes | 540 | 611 | 1,630 | 1,563 | |
Income Taxes | 144 | 201 | 432 | 534 | |
Income from Continuing Operations After Income Taxes | 396 | 410 | 1,198 | 1,029 | |
Income (Loss) from Discontinued Operations (net of income taxes) | (3) | 87 | (915) | 13 | |
Net Income | $ 393 | $ 497 | $ 283 | $ 1,042 | |
Income from Continuing Operations After Income Taxes Available to PPL Common Shareowners: | |||||
Basic (in dollars per share) | $ 0.59 | $ 0.61 | $ 1.78 | $ 1.58 | |
Diluted (in dollars per share) | 0.59 | 0.61 | 1.78 | 1.55 | |
Net Income Available to PPL Common Shareowners: | |||||
Basic (in dollars per share) | 0.58 | 0.74 | 0.42 | 1.6 | |
Diluted (in dollars per share) | 0.58 | 0.74 | 0.42 | 1.57 | |
Dividends Declared Per Share of Common Stock | $ 0.3775 | $ 0.3725 | $ 1.1225 | $ 1.1175 | |
Weighted-Average Shares of Common Stock Outstanding (in thousands) | |||||
Basic | 670,763 | 664,432 | 668,731 | 649,561 | |
Diluted | 673,702 | 666,402 | 671,254 | 665,501 | |
PPL Electric Utilities Corp [Member] | |||||
Operating Revenues | |||||
Operating Revenues | $ 519 | $ 477 | $ 1,625 | $ 1,518 | |
Operation | |||||
Energy purchases | 154 | 128 | 519 | 431 | |
Energy purchases from affiliates | 0 | 20 | 14 | 68 | |
Other operation and maintenance | 162 | 133 | 435 | 402 | |
Depreciation | 55 | 47 | 158 | 137 | |
Taxes, other than income | 27 | 25 | 87 | 80 | |
Total Operating Expenses | 398 | 353 | 1,213 | 1,118 | |
Operating Income | 121 | 124 | 412 | 400 | |
Other Income (Expense) - net | 1 | 3 | 5 | 6 | |
Interest Expense | 32 | 33 | 96 | 91 | |
Income Before Income Taxes | 90 | 94 | 321 | 315 | |
Income Taxes | 35 | 37 | 130 | 121 | |
Net Income | [1] | 55 | 57 | 191 | 194 |
LG And E And KU Energy LLC [Member] | |||||
Operating Revenues | |||||
Operating Revenues | 801 | 753 | 2,414 | 2,409 | |
Operation | |||||
Fuel | 228 | 240 | 695 | 748 | |
Energy purchases | 23 | 24 | 143 | 184 | |
Other operation and maintenance | 202 | 197 | 625 | 609 | |
Depreciation | 97 | 89 | 286 | 262 | |
Taxes, other than income | 14 | 13 | 43 | 39 | |
Total Operating Expenses | 564 | 563 | 1,792 | 1,842 | |
Operating Income | 237 | 190 | 622 | 567 | |
Other Income (Expense) - net | (1) | (2) | (3) | (6) | |
Interest Expense | 43 | 42 | 127 | 125 | |
Interest Expense with Affiliates | 0 | 0 | 1 | 0 | |
Income Before Income Taxes | 193 | 146 | 491 | 436 | |
Income Taxes | 73 | 55 | 194 | 165 | |
Net Income | 120 | 91 | 297 | 271 | |
Louisville Gas And Electric Co [Member] | |||||
Operating Revenues | |||||
Retail and wholesale | 349 | 334 | 1,089 | 1,096 | |
Electric revenue from affiliates | 2 | 13 | 32 | 74 | |
Operating Revenues | 351 | 347 | 1,121 | 1,170 | |
Operation | |||||
Fuel | 82 | 99 | 267 | 320 | |
Energy purchases | 18 | 20 | 129 | 167 | |
Energy purchases from affiliates | 9 | 3 | 17 | 11 | |
Other operation and maintenance | 87 | 94 | 286 | 286 | |
Depreciation | 40 | 39 | 122 | 116 | |
Taxes, other than income | 7 | 6 | 21 | 19 | |
Total Operating Expenses | 243 | 261 | 842 | 919 | |
Operating Income | 108 | 86 | 279 | 251 | |
Other Income (Expense) - net | (1) | 0 | (3) | (3) | |
Interest Expense | 13 | 13 | 39 | 37 | |
Income Before Income Taxes | 94 | 73 | 237 | 211 | |
Income Taxes | 36 | 27 | 91 | 78 | |
Net Income | [2] | 58 | 46 | 146 | 133 |
Kentucky Utilities Co [Member] | |||||
Operating Revenues | |||||
Retail and wholesale | 452 | 419 | 1,325 | 1,313 | |
Electric revenue from affiliates | 9 | 3 | 17 | 11 | |
Operating Revenues | 461 | 422 | 1,342 | 1,324 | |
Operation | |||||
Fuel | 146 | 141 | 428 | 428 | |
Energy purchases | 5 | 4 | 14 | 17 | |
Energy purchases from affiliates | 2 | 13 | 32 | 74 | |
Other operation and maintenance | 108 | 97 | 321 | 302 | |
Depreciation | 57 | 50 | 164 | 145 | |
Taxes, other than income | 7 | 7 | 22 | 20 | |
Total Operating Expenses | 325 | 312 | 981 | 986 | |
Operating Income | 136 | 110 | 361 | 338 | |
Other Income (Expense) - net | 0 | (1) | 1 | (1) | |
Interest Expense | 20 | 19 | 58 | 58 | |
Income Before Income Taxes | 116 | 90 | 304 | 279 | |
Income Taxes | 44 | 34 | 115 | 106 | |
Net Income | [1] | $ 72 | $ 56 | $ 189 | $ 173 |
[1] | Net income approximates comprehensive income. | ||||
[2] | Net income equals comprehensive income. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net income | $ 393 | $ 497 | $ 283 | $ 1,042 | |
Amounts arising during the period - gains (losses), net of tax (expense) benefit: | |||||
Foreign currency translation adjustments, net of tax | 52 | (48) | (97) | 80 | |
Available-for-sale securities, net of tax | 0 | (1) | 7 | 18 | |
Qualifying derivatives, net of tax | (19) | (5) | 8 | (52) | |
Defined benefit plans: | |||||
Prior service costs, net of tax | 0 | 0 | (6) | 0 | |
Net actuarial gain (loss), net of tax | 0 | (1) | 52 | (3) | |
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit): | |||||
Available-for-sale securities, net of tax | 0 | (3) | (2) | (5) | |
Qualifying derivatives, net of tax | 10 | (12) | 20 | 2 | |
Equity investee's other comprehensive (income) loss, net of tax | 0 | 0 | (1) | 0 | |
Defined benefit plans: | |||||
Prior service costs, net of tax | 0 | 1 | 0 | 3 | |
Net actuarial loss, net of tax | 35 | 29 | 111 | 84 | |
Total other comprehensive income (loss) | 78 | (40) | 92 | 127 | |
Comprehensive income | 471 | 457 | 375 | 1,169 | |
PPL Electric Utilities Corp [Member] | |||||
Net income | [1] | 55 | 57 | 191 | 194 |
LG And E And KU Energy LLC [Member] | |||||
Net income | 120 | 91 | 297 | 271 | |
Defined benefit plans: | |||||
Net actuarial gain (loss), net of tax | 0 | 0 | (8) | (2) | |
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit): | |||||
Equity investee's other comprehensive (income) loss, net of tax | 0 | 0 | (1) | (1) | |
Defined benefit plans: | |||||
Prior service costs, net of tax | 0 | 0 | 1 | 0 | |
Net actuarial loss, net of tax | 1 | 0 | 2 | 0 | |
Total other comprehensive income (loss) | 1 | 0 | (6) | (3) | |
Comprehensive income | 121 | 91 | 291 | 268 | |
Louisville Gas And Electric Co [Member] | |||||
Net income | [2] | 58 | 46 | 146 | 133 |
Kentucky Utilities Co [Member] | |||||
Net income | [1] | $ 72 | $ 56 | 189 | 173 |
Defined benefit plans: | |||||
Total other comprehensive income (loss) | $ (1) | $ (1) | |||
[1] | Net income approximates comprehensive income. | ||||
[2] | Net income equals comprehensive income. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Tax effect of foreign currency translation adjustments arising during the period | $ (3) | $ (9) | $ (2) | $ (3) |
Tax effect of available-for-sale securities arising during the period | 0 | 1 | (9) | (20) |
Tax effect of qualifying derivatives arising during the period | 11 | 2 | 4 | 31 |
Tax effect of defined benefit plans - prior service costs arising during period | 0 | 0 | 4 | 0 |
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period | 0 | (1) | (36) | 1 |
Tax effect of available-for-sale securities reclassified from accumulated other comprehensive income (loss) | 0 | 4 | 2 | 6 |
Tax effect of qualifying derivatives reclassified from accumulated other comprehensive income (loss) | (3) | 3 | (23) | 4 |
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 1 | 0 |
Tax effect of prior service costs reclassified from accumulated other comprehensive income (loss) | 0 | (1) | 0 | (3) |
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss) | (10) | (9) | (35) | (26) |
LG And E And KU Energy LLC [Member] | ||||
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period | 0 | 0 | 5 | 1 |
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 1 | 0 |
Tax effect of prior service costs reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss) | $ 0 | $ 0 | $ (1) | $ 0 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash Flows from Operating Activities | |||
Net Income | $ 283 | $ 1,042 | |
Income (loss) from discontinued operations (net of income taxes) | (915) | 13 | |
Income from continuing operations (net of income taxes) | 1,198 | 1,029 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 658 | 688 | |
Amortization | 46 | 51 | |
Defined benefit plans - expense | 44 | 37 | |
Deferred income taxes and investment tax credits | 359 | 416 | |
Unrealized (gains) losses on derivatives, and other hedging activities | (17) | (99) | |
Adjustment to WPD line loss accrual | 0 | 65 | |
Stock compensation expense | 26 | 24 | |
Other | 9 | (1) | |
Change in current assets and current liabilities | |||
Accounts receivable | (5) | (59) | |
Accounts payable | (180) | (53) | |
Unbilled revenues | 91 | 122 | |
Fuel, materials and supplies | 60 | 7 | |
Taxes payable | (142) | 138 | |
Regulatory assets and liabilities | 46 | 7 | |
Other | (48) | 28 | |
Other operating activities | |||
Defined benefit plans - funding | (396) | (290) | |
Settlement of interest rate swaps | (88) | 0 | |
Other assets | (42) | 10 | |
Other liabilities | 69 | 43 | |
Net cash provided by (used in) operating activities | 1,688 | 2,163 | |
Net cash provided by (used in) operating activities - discontinued operations | 343 | 465 | |
Net cash provided by (used in) operating activities | 2,031 | 2,628 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (2,560) | (2,602) | |
Expenditures for intangible assets | (32) | (36) | |
Purchases of other investments | (15) | 0 | |
Proceeds from the sale of other investments | 136 | 0 | |
Net (increase) decrease in restricted cash and cash equivalents | 5 | 12 | |
Other investing activities | 3 | (4) | |
Net cash provided by (used in) investing activities | (2,463) | (2,630) | |
Net cash provided by (used in) investing activities - discontinued operations | (149) | (344) | |
Net cash provided by (used in) investing activities | (2,612) | (2,974) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 1,137 | 296 | |
Retirement of long-term debt | 0 | (237) | |
Issuance of common stock | 145 | 1,037 | |
Payment of common stock dividends | (750) | (718) | |
Net increase (decrease) in short-term debt | (271) | (192) | |
Other financing activities | (30) | (49) | |
Net cash provided by (used in) financing activities | 231 | 137 | |
Net cash provided by (used in) financing activities - discontinued operations | (546) | (166) | |
Net cash distributions to parent from discontinued operations | 132 | 448 | |
Net cash provided by (used in) financing activities | (183) | 419 | |
Effect of Exchange Rates on Cash and Cash Equivalents | (6) | 13 | |
Net (Increase) Decrease in Cash and Cash Equivalents included in Discontinued Operations | 352 | 45 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (418) | 131 | |
Cash and Cash Equivalents at Beginning of Period | 1,399 | 863 | |
Cash and Cash Equivalents at End of Period | 981 | 994 | |
PPL Electric Utilities Corp [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [1] | 191 | 194 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 158 | 137 | |
Amortization | 19 | 13 | |
Defined benefit plans - expense | 13 | 10 | |
Deferred income taxes and investment tax credits | 127 | 65 | |
Other | (9) | (20) | |
Change in current assets and current liabilities | |||
Accounts receivable | 18 | (45) | |
Accounts payable | (140) | (25) | |
Unbilled revenues | 28 | 40 | |
Prepayments | (17) | (17) | |
Taxes payable | (50) | 45 | |
Regulatory assets and liabilities | 46 | 19 | |
Other | 13 | 2 | |
Other operating activities | |||
Defined benefit plans - funding | (33) | (20) | |
Other assets | (6) | 8 | |
Other liabilities | 15 | 6 | |
Net cash provided by (used in) operating activities | 373 | 412 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (758) | (700) | |
Expenditures for intangible assets | (9) | (25) | |
Net (increase) decrease in notes receivable from affiliates | 0 | 150 | |
Other investing activities | 3 | 13 | |
Net cash provided by (used in) investing activities | (764) | (562) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 0 | 296 | |
Retirement of long-term debt | 0 | (10) | |
Contributions from parent | 275 | 95 | |
Payment of common stock dividends to parent | (140) | (121) | |
Net increase (decrease) in short-term debt | 68 | (20) | |
Other financing activities | 0 | (4) | |
Net cash provided by (used in) financing activities | 203 | 236 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (188) | 86 | |
Cash and Cash Equivalents at Beginning of Period | 214 | 25 | |
Cash and Cash Equivalents at End of Period | 26 | 111 | |
LG And E And KU Energy LLC [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | 297 | 271 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 286 | 262 | |
Amortization | 18 | 18 | |
Defined benefit plans - expense | 29 | 18 | |
Deferred income taxes and investment tax credits | 199 | 251 | |
Other | 29 | 11 | |
Change in current assets and current liabilities | |||
Accounts receivable | (1) | (3) | |
Accounts payable | (34) | 7 | |
Accounts payable to affiliates | (7) | (2) | |
Unbilled revenues | 19 | 49 | |
Fuel, materials and supplies | 43 | 4 | |
Income tax receivable | 132 | (28) | |
Taxes payable | 0 | 5 | |
Accrued interest | 37 | 36 | |
Other | (2) | (10) | |
Other operating activities | |||
Defined benefit plans - funding | (66) | (43) | |
Settlement of interest rate swaps | (88) | 0 | |
Other assets | (4) | 0 | |
Other liabilities | 8 | 5 | |
Net cash provided by (used in) operating activities | 895 | 851 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (928) | (843) | |
Net (increase) decrease in notes receivable from affiliates | 0 | 70 | |
Other investing activities | 7 | 0 | |
Net cash provided by (used in) investing activities | (921) | (773) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 1,050 | 0 | |
Debt issuance and credit facility costs | (9) | (3) | |
Net increase (decrease) in notes payable to affiliates | 21 | 22 | |
Net increase (decrease) in short-term debt | (500) | 103 | |
Contributions from member | 55 | 139 | |
Distributions to member | (157) | (327) | |
Net cash provided by (used in) financing activities | 460 | (66) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 434 | 12 | |
Cash and Cash Equivalents at Beginning of Period | 21 | 35 | |
Cash and Cash Equivalents at End of Period | 455 | 47 | |
Louisville Gas And Electric Co [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [2] | 146 | 133 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 122 | 116 | |
Amortization | 9 | 9 | |
Defined benefit plans - expense | 10 | 7 | |
Deferred income taxes and investment tax credits | 93 | 31 | |
Other | 25 | (2) | |
Change in current assets and current liabilities | |||
Accounts receivable | 10 | 4 | |
Accounts receivable from affiliates | 4 | (10) | |
Accounts payable | (14) | 8 | |
Accounts payable to affiliates | (1) | (4) | |
Unbilled revenues | 13 | 27 | |
Fuel, materials and supplies | 21 | 5 | |
Income tax receivable | 74 | (2) | |
Taxes payable | (1) | 10 | |
Accrued interest | 9 | 9 | |
Other | 9 | 1 | |
Other operating activities | |||
Defined benefit plans - funding | (25) | (12) | |
Settlement of interest rate swaps | (44) | 0 | |
Other assets | 10 | 1 | |
Other liabilities | (1) | (4) | |
Net cash provided by (used in) operating activities | 469 | 327 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (519) | (422) | |
Net cash provided by (used in) investing activities | (519) | (422) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 550 | 0 | |
Contributions from parent | 20 | 73 | |
Payment of common stock dividends to parent | (81) | (83) | |
Debt issuance and credit facility costs | (5) | (1) | |
Net increase (decrease) in short-term debt | (264) | 123 | |
Net cash provided by (used in) financing activities | 220 | 112 | |
Net Increase (Decrease) in Cash and Cash Equivalents | 170 | 17 | |
Cash and Cash Equivalents at Beginning of Period | 10 | 8 | |
Cash and Cash Equivalents at End of Period | 180 | 25 | |
Kentucky Utilities Co [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [1] | 189 | 173 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 164 | 145 | |
Amortization | 8 | 8 | |
Defined benefit plans - expense | 9 | 4 | |
Deferred income taxes and investment tax credits | 132 | 129 | |
Other | 4 | 11 | |
Change in current assets and current liabilities | |||
Accounts receivable | (11) | (8) | |
Accounts payable | (18) | 6 | |
Accounts payable to affiliates | (7) | 4 | |
Unbilled revenues | 6 | 22 | |
Fuel, materials and supplies | 22 | (1) | |
Income tax receivable | 60 | (3) | |
Taxes payable | 9 | (12) | |
Accrued interest | 19 | 18 | |
Other | (3) | (8) | |
Other operating activities | |||
Defined benefit plans - funding | (20) | (4) | |
Settlement of interest rate swaps | (44) | 0 | |
Other assets | (9) | (2) | |
Other liabilities | 0 | 4 | |
Net cash provided by (used in) operating activities | 510 | 486 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (407) | (418) | |
Other investing activities | 7 | 0 | |
Net cash provided by (used in) investing activities | (400) | (418) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 500 | 0 | |
Contributions from parent | 0 | 66 | |
Payment of common stock dividends to parent | (106) | (112) | |
Debt issuance and credit facility costs | (4) | (1) | |
Net increase (decrease) in short-term debt | (236) | (20) | |
Net cash provided by (used in) financing activities | 154 | (67) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 264 | 1 | |
Cash and Cash Equivalents at Beginning of Period | 11 | 21 | |
Cash and Cash Equivalents at End of Period | $ 275 | $ 22 | |
[1] | Net income approximates comprehensive income. | ||
[2] | Net income equals comprehensive income. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Current Assets | |||
Cash and cash equivalents | $ 981 | $ 1,399 | |
Short-term investments | 0 | 120 | |
Accounts receivable (less reserve:) | |||
Customer | 713 | 737 | |
Other | 64 | 71 | |
Unbilled revenues | 421 | 517 | |
Fuel, materials and supplies | 321 | 381 | |
Prepayments | 86 | 75 | |
Deferred income taxes | 223 | 125 | |
Regulatory assets | [1] | 37 | 37 |
Other current assets | 181 | 134 | |
Current assets of discontinued operations | 0 | 2,600 | |
Total Current Assets | 2,990 | 6,159 | |
Property, Plant and Equipment | |||
Regulated utility plant | 33,752 | 30,568 | |
Less: accumulated depreciation - regulated utility plant | 5,632 | 5,361 | |
Regulated utility plant, net | 28,120 | 25,207 | |
Non-regulated property, plant and equipment | 534 | 592 | |
Less: accumulated depreciation - non-regulated property, plant and equipment | 170 | 162 | |
Non-regulated property, plant and equipment, net | 364 | 430 | |
Construction work in progress | 1,478 | 2,532 | |
Property, Plant and Equipment, net | 29,962 | 28,169 | |
Assets, Noncurrent [Abstract] | |||
Regulatory assets | 1,627 | 1,562 | |
Goodwill | 3,613 | 3,667 | |
Other intangibles | 672 | 668 | |
Other noncurrent assets | 382 | 322 | |
Noncurrent assets of discontinued operations | 0 | 8,317 | |
Total Other Noncurrent Assets | 6,294 | 14,536 | |
Total Assets | 39,246 | 48,864 | |
Current Liabilities | |||
Short-term debt | 557 | 836 | |
Long-term debt due within one year | 1,460 | 1,000 | |
Accounts payable | 808 | 995 | |
Customer deposits | 312 | 304 | |
Taxes | 118 | 263 | |
Interest | 300 | 298 | |
Dividends | 254 | 249 | |
Regulatory liabilities | 151 | 91 | |
Other current liabilities | 508 | 632 | |
Current liabilities of discontinued operations | 0 | 2,775 | |
Total Current Liabilities | 4,468 | 7,443 | |
Long-term Debt | 17,745 | 17,173 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 3,736 | 3,227 | |
Investment tax credits | 129 | 132 | |
Accrued pension obligations | 963 | 1,457 | |
Asset retirement obligations | 539 | 324 | |
Regulatory liabilities | 962 | 992 | |
Other deferred credits and noncurrent liabilities | 482 | 525 | |
Noncurrent liabilities of discontinued operations | 0 | 3,963 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 6,811 | $ 10,620 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [2] | $ 7 | $ 7 |
Additional paid-in capital | 9,630 | 9,433 | |
Earnings reinvested | 2,791 | 6,462 | |
Accumulated other comprehensive income (loss) | (2,206) | (2,274) | |
Total Stockholders' Equity | 10,222 | 13,628 | |
Total Liabilities and Equity | 39,246 | 48,864 | |
PPL Electric Utilities Corp [Member] | |||
Current Assets | |||
Cash and cash equivalents | 26 | 214 | |
Accounts receivable (less reserve:) | |||
Customer | 312 | 312 | |
Other | 10 | 44 | |
Unbilled revenues | 85 | 113 | |
Fuel, materials and supplies | 34 | 43 | |
Prepayments | 27 | 10 | |
Deferred income taxes | 103 | 58 | |
Regulatory assets | 10 | 12 | |
Other current assets | 10 | 13 | |
Total Current Assets | 617 | 819 | |
Property, Plant and Equipment | |||
Regulated utility plant | 8,565 | 7,589 | |
Less: accumulated depreciation - regulated utility plant | 2,613 | 2,517 | |
Regulated utility plant, net | 5,952 | 5,072 | |
Construction work in progress | 512 | 738 | |
Property, Plant and Equipment, net | 6,464 | 5,810 | |
Assets, Noncurrent [Abstract] | |||
Regulatory assets | 942 | 897 | |
Other intangibles | 243 | 235 | |
Other noncurrent assets | 39 | 24 | |
Total Other Noncurrent Assets | 1,224 | 1,156 | |
Total Assets | 8,305 | 7,785 | |
Current Liabilities | |||
Short-term debt | 68 | 0 | |
Long-term debt due within one year | 100 | 100 | |
Accounts payable | 315 | 325 | |
Accounts payable to affiliates | 36 | 70 | |
Taxes | 35 | 85 | |
Interest | 26 | 34 | |
Regulatory liabilities | 120 | 76 | |
Other current liabilities | 114 | 103 | |
Total Current Liabilities | 814 | 793 | |
Long-term Debt | 2,503 | 2,502 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,655 | 1,483 | |
Accrued pension obligations | 149 | 212 | |
Regulatory liabilities | 25 | 18 | |
Other deferred credits and noncurrent liabilities | 69 | 60 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 1,898 | $ 1,773 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [3] | $ 364 | $ 364 |
Additional paid-in capital | 1,925 | 1,603 | |
Earnings reinvested | 801 | 750 | |
Total Stockholders' Equity | 3,090 | 2,717 | |
Total Liabilities and Equity | 8,305 | 7,785 | |
LG And E And KU Energy LLC [Member] | |||
Current Assets | |||
Cash and cash equivalents | 455 | 21 | |
Accounts receivable (less reserve:) | |||
Customer | 228 | 231 | |
Other | 14 | 18 | |
Unbilled revenues | 148 | 167 | |
Fuel, materials and supplies | 260 | 311 | |
Prepayments | 23 | 28 | |
Income taxes receivable | 4 | 136 | |
Deferred income taxes | 68 | 16 | |
Regulatory assets | 27 | 25 | |
Other current assets | 5 | 3 | |
Total Current Assets | 1,232 | 956 | |
Property, Plant and Equipment | |||
Regulated utility plant | 11,481 | 10,014 | |
Less: accumulated depreciation - regulated utility plant | 1,094 | 1,069 | |
Regulated utility plant, net | 10,387 | 8,945 | |
Construction work in progress | 839 | 1,559 | |
Property, Plant and Equipment, net | 11,226 | 10,504 | |
Assets, Noncurrent [Abstract] | |||
Regulatory assets | 685 | 665 | |
Goodwill | 996 | 996 | |
Other intangibles | 136 | 174 | |
Other noncurrent assets | 102 | 101 | |
Total Other Noncurrent Assets | 1,919 | 1,936 | |
Total Assets | 14,377 | 13,396 | |
Current Liabilities | |||
Short-term debt | 75 | 575 | |
Long-term debt due within one year | 900 | 900 | |
Notes payable with affiliates | 62 | 41 | |
Accounts payable | 284 | 399 | |
Accounts payable to affiliates | 1 | 2 | |
Customer deposits | 51 | 52 | |
Taxes | 36 | 36 | |
Interest | 60 | 23 | |
Price risk management liabilities | 5 | 5 | |
Price risk management liabilities from affiliates | 0 | 66 | |
Regulatory liabilities | 31 | 15 | |
Other current liabilities | 142 | 131 | |
Total Current Liabilities | 1,647 | 2,245 | |
Long-term Debt | 4,717 | 3,667 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,489 | 1,241 | |
Investment tax credits | 128 | 131 | |
Price risk management liabilities | 45 | 43 | |
Accrued pension obligations | 275 | 305 | |
Asset retirement obligations | 488 | 274 | |
Regulatory liabilities | 937 | 974 | |
Other deferred credits and noncurrent liabilities | 214 | 268 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 3,576 | $ 3,236 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Accumulated other comprehensive income (loss) | $ (51) | $ (45) | |
Member's Equity | 4,437 | 4,248 | |
Total Liabilities and Equity | 14,377 | 13,396 | |
Louisville Gas And Electric Co [Member] | |||
Current Assets | |||
Cash and cash equivalents | 180 | 10 | |
Accounts receivable (less reserve:) | |||
Customer | 97 | 107 | |
Other | 9 | 11 | |
Unbilled revenues | 63 | 76 | |
Accounts receivable from affiliates | 19 | 23 | |
Fuel, materials and supplies | 133 | 162 | |
Prepayments | 6 | 8 | |
Income taxes receivable | 0 | 74 | |
Deferred income taxes | 23 | 0 | |
Regulatory assets | 11 | 21 | |
Other current assets | 2 | 1 | |
Total Current Assets | 543 | 493 | |
Property, Plant and Equipment | |||
Regulated utility plant | 4,651 | 4,031 | |
Less: accumulated depreciation - regulated utility plant | 384 | 456 | |
Regulated utility plant, net | 4,267 | 3,575 | |
Construction work in progress | 414 | 676 | |
Property, Plant and Equipment, net | 4,681 | 4,251 | |
Assets, Noncurrent [Abstract] | |||
Regulatory assets | 396 | 397 | |
Goodwill | 389 | 389 | |
Other intangibles | 79 | 97 | |
Other noncurrent assets | 28 | 35 | |
Total Other Noncurrent Assets | 892 | 918 | |
Total Assets | 6,116 | 5,662 | |
Current Liabilities | |||
Short-term debt | 0 | 264 | |
Long-term debt due within one year | 250 | 250 | |
Accounts payable | 191 | 240 | |
Accounts payable to affiliates | 20 | 20 | |
Customer deposits | 25 | 25 | |
Taxes | 18 | 19 | |
Interest | 15 | 6 | |
Price risk management liabilities | 5 | 5 | |
Price risk management liabilities from affiliates | 0 | 33 | |
Regulatory liabilities | 15 | 10 | |
Other current liabilities | 50 | 42 | |
Total Current Liabilities | 589 | 914 | |
Long-term Debt | 1,653 | 1,103 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 818 | 700 | |
Investment tax credits | 35 | 36 | |
Price risk management liabilities | 45 | 43 | |
Accrued pension obligations | 34 | 57 | |
Asset retirement obligations | 147 | 66 | |
Regulatory liabilities | 439 | 458 | |
Other deferred credits and noncurrent liabilities | 97 | 111 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 1,615 | $ 1,471 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [4] | $ 424 | $ 424 |
Additional paid-in capital | 1,541 | 1,521 | |
Earnings reinvested | 294 | 229 | |
Total Stockholders' Equity | 2,259 | 2,174 | |
Total Liabilities and Equity | 6,116 | 5,662 | |
Kentucky Utilities Co [Member] | |||
Current Assets | |||
Cash and cash equivalents | 275 | 11 | |
Accounts receivable (less reserve:) | |||
Customer | 131 | 124 | |
Other | 5 | 6 | |
Unbilled revenues | 85 | 91 | |
Fuel, materials and supplies | 127 | 149 | |
Prepayments | 7 | 10 | |
Income taxes receivable | 0 | 60 | |
Deferred income taxes | 30 | 2 | |
Regulatory assets | 16 | 4 | |
Other current assets | 3 | 2 | |
Total Current Assets | 679 | 459 | |
Property, Plant and Equipment | |||
Regulated utility plant | 6,828 | 5,977 | |
Less: accumulated depreciation - regulated utility plant | 710 | 611 | |
Regulated utility plant, net | 6,118 | 5,366 | |
Construction work in progress | 421 | 880 | |
Property, Plant and Equipment, net | 6,539 | 6,246 | |
Assets, Noncurrent [Abstract] | |||
Regulatory assets | 289 | 268 | |
Goodwill | 607 | 607 | |
Other intangibles | 57 | 77 | |
Other noncurrent assets | 61 | 58 | |
Total Other Noncurrent Assets | 1,014 | 1,010 | |
Total Assets | 8,232 | 7,715 | |
Current Liabilities | |||
Short-term debt | 0 | 236 | |
Long-term debt due within one year | 250 | 250 | |
Accounts payable | 77 | 141 | |
Accounts payable to affiliates | 41 | 47 | |
Customer deposits | 26 | 27 | |
Taxes | 23 | 14 | |
Interest | 30 | 11 | |
Price risk management liabilities from affiliates | 0 | 33 | |
Regulatory liabilities | 16 | 5 | |
Other current liabilities | 53 | 41 | |
Total Current Liabilities | 516 | 805 | |
Long-term Debt | 2,341 | 1,841 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,048 | 884 | |
Investment tax credits | 93 | 95 | |
Accrued pension obligations | 44 | 59 | |
Asset retirement obligations | 341 | 208 | |
Regulatory liabilities | 498 | 516 | |
Other deferred credits and noncurrent liabilities | 63 | 101 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 2,087 | $ 1,863 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [5] | $ 308 | $ 308 |
Additional paid-in capital | 2,596 | 2,596 | |
Earnings reinvested | 385 | 302 | |
Accumulated other comprehensive income (loss) | (1) | 0 | |
Total Stockholders' Equity | 3,288 | 3,206 | |
Total Liabilities and Equity | $ 8,232 | $ 7,715 | |
[1] | For PPL, these amounts are included in "Other current assets" on the Balance Sheets. | ||
[2] | 780,000 shares authorized; 671,792 and 665,849 shares issued and outstanding at September 30, 2015 and December 31, 2014 . | ||
[3] | 170,000 shares authorized; 66,368 shares issued and outstanding at September 30, 2015 and December 31, 2014 . | ||
[4] | 75,000 shares authorized ; 21 , 294 shares issued and outstanding at September 30, 2015 and December 31, 2014 . | ||
[5] | 80,000 shares authorized; 37 , 818 shares issued and outstanding at September 30, 2015 and December 31, 2014 . |
CONDENSED CONSOLIDATED BALANCE7
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 46 | $ 44 |
Equity | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 780,000 | 780,000 |
Common stock shares issued | 671,792 | 665,849 |
Common stock shares outstanding | 671,792 | 665,849 |
PPL Electric Utilities Corp [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 21 | $ 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 | $ 23 | $ 25 |
Louisville Gas And Electric Co [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 1 | $ 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 | $ 2 | $ 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 STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Earnings Reinvested | Accumulated Other Comprehensive Loss | PPL Electric Utilities Corp [Member] | PPL Electric Utilities Corp [Member]Common Stock | PPL Electric Utilities Corp [Member]Additional Paid-in Capital | PPL Electric Utilities Corp [Member]Earnings Reinvested | LG And E And KU Energy LLC [Member] | Louisville Gas And Electric Co [Member] | Louisville Gas And Electric Co [Member]Common Stock | Louisville Gas And Electric Co [Member]Additional Paid-in Capital | Louisville Gas And Electric Co [Member]Earnings Reinvested | Kentucky Utilities Co [Member] | Kentucky Utilities Co [Member]Common Stock | Kentucky Utilities Co [Member]Additional Paid-in Capital | Kentucky Utilities Co [Member]Earnings Reinvested | Kentucky Utilities Co [Member]Accumulated Other Comprehensive Loss | |||||||||
Balance at beginning of period - shares at Dec. 31, 2013 | 630,321 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2013 | $ 4,150 | |||||||||||||||||||||||||||
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 | ||||||||||
Common stock shares issued | [1] | 34,332 | ||||||||||||||||||||||||||
Common stock issued | 1,049 | $ 1 | 1,048 | |||||||||||||||||||||||||
Stock-based compensation | 24 | 24 | ||||||||||||||||||||||||||
Net income | 1,042 | 1,042 | 194 | [5] | 194 | 271 | 133 | [6] | 133 | 173 | [5] | 173 | ||||||||||||||||
Dividends, dividend equivalents, redemptions and distributions | (734) | (734) | ||||||||||||||||||||||||||
Dividends declared on common stock | (121) | (121) | (83) | (83) | (112) | (112) | ||||||||||||||||||||||
Distributions to member | (327) | |||||||||||||||||||||||||||
Contributions from member | 139 | |||||||||||||||||||||||||||
Capital contributions from parent | 95 | 95 | 73 | 73 | 66 | 66 | ||||||||||||||||||||||
Other comprehensive income (loss) | 127 | 127 | (3) | (1) | (1) | |||||||||||||||||||||||
Balance at end of period - shares at Sep. 30, 2014 | 664,653 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2014 | 4,230 | |||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2014 | 13,974 | $ 7 | 9,388 | 6,017 | (1,438) | 2,517 | $ 364 | 1,435 | 718 | 2,083 | $ 424 | 1,437 | 222 | 3,170 | $ 308 | 2,571 | 291 | 0 | ||||||||||
Balance at beginning of period - shares at Jun. 30, 2014 | 664,018 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2014 | 4,225 | |||||||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2014 | 13,735 | $ 7 | 9,358 | 5,768 | (1,398) | 2,494 | $ 364 | 1,435 | 695 | 2,040 | $ 424 | 1,417 | 199 | 3,140 | $ 308 | 2,571 | 261 | |||||||||||
Common stock shares issued | [1] | 635 | ||||||||||||||||||||||||||
Common stock issued | 21 | $ 0 | 21 | |||||||||||||||||||||||||
Stock-based compensation | 9 | 9 | ||||||||||||||||||||||||||
Net income | 497 | 497 | 57 | [5] | 57 | 91 | 46 | [6] | 46 | 56 | [5] | 56 | ||||||||||||||||
Dividends, dividend equivalents, redemptions and distributions | (248) | (248) | ||||||||||||||||||||||||||
Dividends declared on common stock | (34) | (34) | (23) | (23) | (26) | (26) | ||||||||||||||||||||||
Distributions to member | (106) | |||||||||||||||||||||||||||
Contributions from member | 20 | |||||||||||||||||||||||||||
Capital contributions from parent | 0 | 0 | 20 | 20 | ||||||||||||||||||||||||
Other comprehensive income (loss) | (40) | (40) | 0 | |||||||||||||||||||||||||
Balance at end of period - shares at Sep. 30, 2014 | 664,653 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2014 | 4,230 | |||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2014 | $ 13,974 | $ 7 | 9,388 | 6,017 | (1,438) | $ 2,517 | $ 364 | 1,435 | 718 | $ 2,083 | $ 424 | 1,437 | 222 | $ 3,170 | $ 308 | 2,571 | 291 | 0 | ||||||||||
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] | ||||||||||||||||
Balance at beginning of period at Dec. 31, 2014 | 4,248 | |||||||||||||||||||||||||||
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 | ||||||||||
Common stock shares issued | [1] | 5,943 | ||||||||||||||||||||||||||
Common stock issued | 183 | $ 0 | 183 | |||||||||||||||||||||||||
Stock-based compensation | 14 | 14 | ||||||||||||||||||||||||||
Net income | 283 | 283 | 191 | [5] | 191 | 297 | 146 | [6] | 146 | 189 | [5] | 189 | ||||||||||||||||
Dividends, dividend equivalents, redemptions and distributions | (754) | (754) | ||||||||||||||||||||||||||
Dividends declared on common stock | (140) | (140) | (81) | (81) | (106) | (106) | ||||||||||||||||||||||
Distributions to member | (157) | |||||||||||||||||||||||||||
Contributions from member | 55 | |||||||||||||||||||||||||||
Capital contributions from parent | $ 322 | [7] | 322 | [7] | $ 20 | 20 | ||||||||||||||||||||||
Distribution of PPL Energy Supply | (3,224) | (3,200) | (24) | |||||||||||||||||||||||||
Other comprehensive income (loss) | $ 92 | 92 | (6) | $ (1) | (1) | |||||||||||||||||||||||
Balance at end of period - shares at Sep. 30, 2015 | 671,792 | 671,792 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | ||||||||||||||||
Balance at end of period at Sep. 30, 2015 | 4,437 | |||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2015 | $ 10,222 | $ 7 | 9,630 | 2,791 | (2,206) | $ 3,090 | $ 364 | 1,925 | 801 | $ 2,259 | $ 424 | 1,541 | 294 | $ 3,288 | $ 308 | 2,596 | 385 | (1) | ||||||||||
Balance at beginning of period - shares at Jun. 30, 2015 | 669,514 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2015 | 4,329 | |||||||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2015 | 9,941 | $ 7 | 9,564 | 2,654 | (2,284) | 2,953 | $ 364 | 1,810 | 779 | 2,224 | $ 424 | 1,541 | 259 | 3,241 | $ 308 | 2,596 | 338 | (1) | ||||||||||
Common stock shares issued | [1] | 2,278 | ||||||||||||||||||||||||||
Common stock issued | 72 | $ 0 | 72 | |||||||||||||||||||||||||
Stock-based compensation | (6) | (6) | ||||||||||||||||||||||||||
Net income | 393 | 393 | 55 | [5] | 55 | 120 | 58 | [6] | 58 | 72 | [5] | 72 | ||||||||||||||||
Dividends, dividend equivalents, redemptions and distributions | (256) | (256) | ||||||||||||||||||||||||||
Dividends declared on common stock | (33) | (33) | $ (23) | (23) | $ (25) | (25) | ||||||||||||||||||||||
Distributions to member | (48) | |||||||||||||||||||||||||||
Contributions from member | 35 | |||||||||||||||||||||||||||
Capital contributions from parent | $ 115 | 115 | ||||||||||||||||||||||||||
Distribution of PPL Energy Supply | 0 | 0 | 0 | |||||||||||||||||||||||||
Other comprehensive income (loss) | $ 78 | 78 | 1 | |||||||||||||||||||||||||
Balance at end of period - shares at Sep. 30, 2015 | 671,792 | 671,792 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | ||||||||||||||||
Balance at end of period at Sep. 30, 2015 | $ 4,437 | |||||||||||||||||||||||||||
Balance at end of period at Sep. 30, 2015 | $ 10,222 | $ 7 | $ 9,630 | $ 2,791 | $ (2,206) | $ 3,090 | $ 364 | $ 1,925 | $ 801 | $ 2,259 | $ 424 | $ 1,541 | $ 294 | $ 3,288 | $ 308 | $ 2,596 | $ 385 | $ (1) | ||||||||||
[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. | |||||||||||||||||||||||||||
[7] | Includes non-cash contributions of $ 47 million. |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Integer | Sep. 30, 2014Integer | Sep. 30, 2015USD ($)Integer | Sep. 30, 2014Integer | |
Vote per share of PPL's common stock | 1 | 1 | 1 | 1 |
PPL Electric Utilities Corp [Member] | ||||
Non-cash contributions related to remeasurement and seperation of benefit plans | $ | $ 47 | $ 47 |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 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 disc losure. 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 instructio ns to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosure s required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fa ir 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 Registra nt ' 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 and nine months ended September 30, 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 September 30, 2015 financial statements. (PPL) "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income includes t he activities of PPL Energy Supply, substantially representing PPL’s former Supply segment, which was spun off and distributed to PPL shareowners on June 1, 2015. PPL Energy Supply’s assets and liabilities have been reclassified on the Balance Sheet at December 31, 2014 to assets and liabilities of discontinued operations. The assets and liabilities were distributed and removed from PPL’s Balance Sheets in the second quarter of 2015. In addition, the Statements of Cash Flows separately report the cash flows of th e discontinued operations. S ee Note 8 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 to each indicated Registrant's 2014 Form 10-K a nd 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 at a discount, which reflects a provision for u ncollectible 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 purc hase price paid and are classified as Level 2 in the fair value hierarchy. During the three and nine months ended September 30, 2015 , PPL Electric purchased $ 361 million and $ 968 million of accounts receivable from unaf filiated third parties . During the three and nine months ended September 30, 2014 , PPL Electric purchased $ 260 million and $ 874 million of accounts receivable from unaffiliated third parties and $ 77 million and $ 261 million from PPL EnergyPlus . PPL Electric’s purchases from PPL EnergyPlus for the n ine months ended September 30, 2015 were $ 146 million and include purchases through May 31, 2015, which is the period during which PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energ y, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. Depreciation (PPL) Effect ive 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 and nine months ended September 30, 2015 , this change in useful lives resulted in lower depreciation of $ 22 million ( $ 17 million after-tax or $ 0.03 per share) and $ 64 mi llion ( $ 50 million after-tax or $ 0.08 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 comp onents of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). As a result of t he spinoff on June 1, 2015, PPL Energy Supply ha s been reported as a discontinued operation under the new discontinued oper ations guidance. See Note 8 for additional information . |
Segment and Related Information
Segment and Related Information | 9 Months Ended |
Sep. 30, 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. On June 1, 2015, PPL completed the spinoff of PPL Energy Supply, which substantially represented PPL’s Supply segment. As a result of this transaction, PPL no longer has 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 September 30 are: Three Months Nine Months 2015 2014 2015 2014 Income Statement Data Revenues from external customers U.K. Regulated $ 552 $ 644 $ 1,836 $ 1,964 Kentucky Regulated 801 753 2,414 2,409 Pennsylvania Regulated 519 477 1,625 1,516 Corporate and Other 6 5 14 17 Total $ 1,878 $ 1,879 $ 5,889 $ 5,906 Net Income U.K. Regulated (a) $ 249 $ 295 $ 814 $ 688 Kentucky Regulated 111 82 267 247 Pennsylvania Regulated 55 57 191 194 Corporate and Other (b) (19) (24) (74) (100) Discontinued Operations (c) (3) 87 (915) 13 Total $ 393 $ 497 $ 283 $ 1,042 September 30, December 31, 2015 2014 Balance Sheet Data Assets U.K. Regulated $ 16,382 $ 16,005 Kentucky Regulated 14,043 13,062 Pennsylvania Regulated 8,305 7,785 Corporate and Other (d) 516 1,095 Discontinued Operations (c) 10,917 Total assets $ 39,246 $ 48,864 (a) Includes unrealized gains and losses from economic activity . See Note 14 for additional information. (b) 2015 includes transition costs related to the formation of the Talen Energy organization and to reconfigure the remaining PPL Services functions. See Note 8 for additional information. (c) See Note 8 for additional information. (d) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 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 T reasury 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) f or the periods ended September 30 used in the EPS calculation are: Three Months Nine Months 2015 2014 2015 2014 Income (Numerator) Income from continuing operations after income taxes $ 396 $ 410 $ 1,198 $ 1,029 Less amounts allocated to participating securities 2 2 5 5 Income from continuing operations after income taxes available to PPL common shareowners - Basic 394 408 1,193 1,024 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 $ 394 $ 408 $ 1,193 $ 1,033 Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted $ (3) $ 87 $ (915) $ 13 Net income $ 393 $ 497 $ 283 $ 1,042 Less amounts allocated to participating securities 2 2 1 5 Net income available to PPL common shareowners - Basic 391 495 282 1,037 Plus interest charges (net of tax) related to Equity Units (a) 9 Net income available to PPL common shareowners - Diluted $ 391 $ 495 $ 282 $ 1,046 Shares of Common Stock (Denominator) Weighted-average shares - Basic EPS 670,763 664,432 668,731 649,561 Add incremental non-participating securities: Share-based payment awards 2,939 1,970 2,523 1,860 Equity Units (a) 14,080 Weighted-average shares - Diluted EPS 673,702 666,402 671,254 665,501 Basic EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.59 $ 0.61 $ 1.78 $ 1.58 Income (loss) from discontinued operations (net of income taxes) (0.01) 0.13 (1.36) 0.02 Net Income Available to PPL common shareowners $ 0.58 $ 0.74 $ 0.42 $ 1.60 Diluted EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.59 $ 0.61 $ 1.78 $ 1.55 Income (loss) from discontinued operations (net of income taxes) (0.01) 0.13 (1.36) 0.02 Net Income Available to PPL common shareowners $ 0.58 $ 0.74 $ 0.42 $ 1.57 (a) In 2014, the If-Converted Method was applied to the Equity Units prior to the March 2014 settlement. For the periods ended September 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands): Three Months Nine Months 2015 2014 2015 2014 Stock-based compensation plans (a) 1,368 210 3,805 2,228 DRIP 475 425 1,318 425 (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. See Note 7 for additional information on common stock issued under the ATM Program. For the periods ended September 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. Three Months Nine Months 2015 2014 2015 2014 Stock options 1,484 527 1,218 1,901 Performance units 49 Restricted stock units 41 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 5. Income Taxes Reconciliations of income taxes for the periods ended September 30 are as follows. (PPL) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 189 $ 214 $ 571 $ 547 Increase (decrease) due to: State income taxes, net of federal income tax benefit 15 13 44 28 Valuation allowance adjustments (a) 3 8 49 Impact of lower U.K. income tax rates (40) (48) (138) (124) U.S. income tax on foreign earnings - net of foreign tax credit (b) 26 (1) 47 Federal and state tax reserve adjustments (c) (9) (21) Foreign income tax return adjustments (4) Amortization of investment tax credit (1) 1 (3) (3) Depreciation not normalized (1) (3) (4) (7) Intercompany interest on U.K. financing entities (4) (15) (4) Other (5) (5) (5) 1 Total increase (decrease) (45) (13) (139) (13) Total income taxes $ 144 $ 201 $ 432 $ 534 (a) As a result of the spinoff announceme nt, PPL recorded deferred income tax expense during the three and nine months ended September 30, 2014 to adjust valuation allowances on deferred tax assets primarily for state net operating loss carryforwards that were previously supported by the future earnings of PPL Energy Supply. See Note 8 for additional information on the spinoff . (b) During the three and nine months ended September 30, 201 5 , PPL recorded lower income tax expense due to a dec rease in taxable dividends . (c) During the three and nine months ended September 30, 2015, PPL recorded a $9 million tax benefit related to a planned amendment of a prior period tax return. During the nine months ended September 30 , 2015, PPL recorded a $12 million tax benefit to adjust the settled refund amount approved by the Joint Committee of Taxation for the open audit years 1998-2011 . (PPL Electric) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 32 $ 33 $ 112 $ 110 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 5 21 17 Depreciation not normalized (1) (2) (3) (5) Other (3) 1 (1) Total increase (decrease) 3 4 18 11 Total income taxes $ 35 $ 37 $ 130 $ 121 (LKE) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 68 $ 51 $ 172 $ 153 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 6 18 16 Amortization of investment tax credit (1) (1) (2) (3) Valuation allowance adjustment (a) 8 Other (1) (1) (2) (1) Total increase (decrease) 5 4 22 12 Total income taxes $ 73 $ 55 $ 194 $ 165 (a) Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized. (LG&E) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 33 $ 26 $ 83 $ 74 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 3 9 8 Other (1) (2) (1) (4) Total increase (decrease) 3 1 8 4 Total income taxes $ 36 $ 27 $ 91 $ 78 (KU) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 41 $ 32 $ 106 $ 98 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 3 11 10 Other (1) (1) (2) (2) Total increase (decrease) 3 2 9 8 Total income taxes $ 44 $ 34 $ 115 $ 106 Unrecognized Tax Benefits ( PPL ) Changes to unrecognized tax benefits for the periods ended September 30 are as follows. Three Months Nine Months 2015 2014 2015 2014 PPL Beginning of period $ 5 $ 21 $ 20 $ 22 Additions based on tax positions of prior years 1 Reductions based on tax positions of prior years (2) Settlements (15) End of period $ 5 $ 21 $ 5 $ 21 Other (PP L ) 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. In April 2015, PPL was notified that the Joint Committee on Taxation approved PPL's settlement. For the nine months ended September 30, 2015, PPL recorded a tax benefit of $ 24 million. Of this amount, $ 12 million is reflected in continuing operations. |
Utility Rate Regulation
Utility Rate Regulation | 9 Months Ended |
Sep. 30, 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 September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Current Regulatory Assets: Environmental cost recovery $ 19 $ 5 Gas supply clause 1 15 Transmission service charge 7 6 $ 7 $ 6 Other 10 11 3 6 Total current regulatory assets (a) $ 37 $ 37 $ 10 $ 12 Noncurrent Regulatory Assets: Defined benefit plans (b) $ 734 $ 720 $ 411 $ 372 Taxes recoverable through future rates 323 316 323 316 Storm costs 101 124 34 46 Unamortized loss on debt 70 77 44 49 Interest rate swaps (c) 146 122 Accumulated cost of removal of utility plant 130 114 130 114 AROs 109 79 Other 14 10 Total noncurrent regulatory assets $ 1,627 $ 1,562 $ 942 $ 897 Current Regulatory Liabilities: Generation supply charge $ 41 $ 28 $ 41 $ 28 Demand side management 12 2 Gas supply clause 9 6 Transmission formula rate 61 42 61 42 Storm damage expense 13 3 13 3 Other 15 10 5 3 Total current regulatory liabilities $ 151 $ 91 $ 120 $ 76 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 695 $ 693 Coal contracts (d) 28 59 Power purchase agreement - OVEC (d) 86 92 Net deferred tax assets 23 26 Act 129 compliance rider 25 18 $ 25 $ 18 Defined benefit plans 22 16 Interest rate swaps 82 84 Other 1 4 Total noncurrent regulatory liabilities $ 962 $ 992 $ 25 $ 18 LKE LG&E KU September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 Current Regulatory Assets: Environmental cost recovery $ 19 $ 5 $ 10 $ 4 $ 9 $ 1 Gas supply clause 1 15 1 15 Fuel adjustment clause 4 2 2 Other 7 1 7 1 Total current regulatory assets $ 27 $ 25 $ 11 $ 21 $ 16 $ 4 Noncurrent Regulatory Assets: Defined benefit plans (b) $ 323 $ 348 $ 200 $ 215 $ 123 $ 133 Storm costs 67 78 37 43 30 35 Unamortized loss on debt 26 28 17 18 9 10 Interest rate swaps (c) 146 122 102 89 44 33 AROs 109 79 38 28 71 51 Plant retirement costs (e) 6 6 Other 8 10 2 4 6 6 Total noncurrent regulatory assets $ 685 $ 665 $ 396 $ 397 $ 289 $ 268 Current Regulatory Liabilities: Demand side management $ 12 $ 2 $ 6 $ 1 $ 6 $ 1 Gas supply clause 9 6 9 6 Fuel adjustment clause 8 8 Gas line tracker 3 3 Other 2 4 2 4 Total current regulatory liabilities $ 31 $ 15 $ 15 $ 10 $ 16 $ 5 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 695 $ 693 $ 304 $ 302 $ 391 $ 391 Coal contracts (d) 28 59 12 25 16 34 Power purchase agreement - OVEC (d) 86 92 59 63 27 29 Net deferred tax assets 23 26 23 24 2 Defined benefit plans 22 16 22 16 Interest rate swaps 82 84 41 42 41 42 Other 1 4 2 1 2 Total noncurrent regulatory liabilities $ 937 $ 974 $ 439 $ 458 $ 498 $ 516 (a) For PPL, these amounts are included in "Other current assets" on the Balance Sheets. (b) Included in 2015 is $ 4 million for PPL and LKE, $ 3 million for LG&E and $ 1 million for KU related to the deferred recovery of the difference between the pension cost calculated in accordance with LG&E and KU's pension accounting policy and pension cost using a 15 ye ar amortization period for actuarial gains and losses as provided in the June 30, 2015 rate case settlement. See Note 9 and “ Kentucky Activities - Rate Case Proceedings” below for additional information. (c) Amounts include net settlements related to forwa rd-starting interest rate swaps that were terminated in September 2015 and are included in "Cash Flows from Operating Activities" on the Statements of Cash Flows. See Note 14 for additional information. (d) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. (e) The June 30, 2015 rate case settlement provided for deferred recovery of costs associated with Green River's coal-fired generating unit retirements . These costs include inventory write-downs and separation benefits and will be amortized over three years. 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 liabili ty by $ 65 million for over-recovery of line losses with a reduction to "Operating Revenues" on the Statement of Income. WPD began refunding the liability to customers on April 1, 2015 and will continue through March 31, 2019. Th e liability at September 30, 2015 was $ 75 million. Kentucky Activities (PPL, LKE, LG&E and KU) Rate Case Proceedings On June 30, 2015, the KPSC approved a rate case settlement agreement providing for increases in the annual revenue requirements associated with KU base electricity rates of $ 125 million and LG&E base gas rates of $ 7 million. The annual revenue requirement associated with base electricity rates at LG&E was not changed. Although the settlement did not establish a specific return on equity with respect to the base rates, 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 calculated in accordance with LG&E and KU’s pension accounting policy and pension expense using a 15 year amortization period for actuarial gains and losses. The new rates and all elements of the settlement became effective July 1, 2015. KPSC Landfill Proceedings On May 22, 2015, LG&E and KU filed an application with the KPSC for a declaratory order that the existing CPCN and ECR approvals regarding the initial phases of construction and rate recovery of the landfill for management of CCRs at the Tri mble County Station remain in effect. The current design of the proposed landfill provides for construction in substantially the same location as originally proposed with approximately the same storage capacity and expected useful life. On May 2 0 , 2015, the owner of an underground limestone mine filed a complaint with the KPSC requesting it to revoke the CPCN for the Trimble County landfill and limit recovery of costs for the Ghent Station landfill on the grounds that, as a result of cost increases, the p roposed landfill no longer constitutes the least cost alternative for CCR management . The KPSC has initiated its own investigation, consolidated the proceedings, and ordered an accelerated procedural schedule. The KPSC conducted a hearing on the matter in September 2015 and LG&E and KU are awaiting a ruling. Although the companies continue to believe that the landfills at the Trimble County and Ghent stations are the least cost options and the CPCN and prior KPSC determinations provide the necessary regulatory authority to proceed with construction of the landfill and obtain cost recovery, LG&E and KU are currently unable to predict the outcome or impact of the pending proceedings. Pennsylvania Activities ( PPL and PPL Electric ) 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 Distribution System Improvement Charge (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 i nvestment to maintain and enhance the reliability of its delivery system, including the replacement of aging distribution assets. 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 application was based on a fully projected future test year of January 1, 2016 through December 31, 2016. On September 3, 2015, PPL Electric filed with the PUC Administrative Law Judge a petition for approval of a settlement agreement under which PPL Electric would be permitted to increase its annual distribution rates by $124 million, effective January 1, 2016. On October 5, 2015, the Administrative Law Judge issued a recommended decision approvi ng the settlement agreement. The PUC is expected to issue its final order in December 2015. PPL Electric cannot predict the outcome of this proceeding. Distribution System Improvement Charge (DSIC) 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 the Administrative Law Judge granted PPL Electric's request to consolidate these two proceedings . Under the terms of the settlement agreement discussed above, PPL Electric agreed to withdraw the petition without prejudice to re-file it at a later date. S torm 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 cos ts 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 Hur ricane 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 Adv ocate (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 Januar y 15, 2015, the PUC issued a final order closing an investigation related to a separate 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 (S MR) 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 t echnical 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 pilot programs and evaluations through a cost recovery mech anism, 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 t hat became effective January 1, 2014. In June 2014, PPL Electric filed its final Smart Meter Plan with the PUC. In that plan, PPL Electric proposes by the end of 2019 to replace all of its current meters with new meters that meet the Act 129 requirements . The total cost of the project is estimated to be approximately $ 450 million, of which approximately $328 million is expected to be capital. PPL Electric proposes to recover these costs through the SMR which the PUC previously appro ved 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. On September 3, 2015, the PUC entered a final order approving the Smart Meter Plan with minor modifications. Federal Matters (PPL, LKE and KU) FERC Wholesale Formula Rates 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 charg e 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 requ irements 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 has become a transmission-only customer as of June 20 15. 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 approval of the formula rate with a true-up provision and authorizing a return on equity of 10% or the return on equity awarded to other parties in this case, whichever is lower. In August 2015, KU filed a partial settlement agreement with the nine terminating municipalities, which, if approved by FERC, would resolve all but one open matter with one municipality, including providing f or certain refund s, approving the formula rate with a true-up provision, and authorizing a 10.25% return on equity. A single remaining unresolved issue with one terminating municipality is in F ERC litigation proceedings. KU cannot predict the ultimate outcome of these FERC proceedings regarding its wholesale power agreements with the municipalities, but does not currently anticipate significant remaining refunds beyond amounts already recorded. |
Financing Activities
Financing Activities | 9 Months Ended |
Sep. 30, 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 f acilities were in place at: September 30, 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 plc Syndicated Credit Facility Dec. 2016 £ 210 £ 127 £ 83 £ 103 WPD (South West) Syndicated Credit Facility July 2020 245 245 WPD (East Midlands) Syndicated Credit Facility July 2020 300 139 161 64 WPD (West Midlands) Syndicated Credit Facility July 2020 300 300 Uncommitted Credit Facilities 65 £ 4 61 £ 5 Total U.K. Credit Facilities (a) £ 1,120 £ 266 £ 4 £ 850 £ 167 £ 5 U.S. PPL Capital Funding Syndicated Credit Facility July 2019 $ 300 $ 300 Syndicated Credit Facility Nov. 2018 300 300 Bilateral Credit Facility Mar. 2016 150 $ 20 130 $ 21 Total PPL Capital Funding Credit Facilities $ 750 $ 20 $ 730 $ 21 PPL Electric Syndicated Credit Facility July 2019 $ 300 $ 69 $ 231 $ 1 LKE Syndicated Credit Facility (b) Oct. 2018 $ 75 $ 75 $ $ 75 LG&E Syndicated Credit Facility July 2019 $ 500 $ 500 $ 264 KU Syndicated Credit Facility July 2019 $ 400 $ 400 $ 236 Letter of Credit Facility Oct. 2017 198 $ 198 198 Total KU Credit Facilities $ 598 $ 198 $ 400 $ 434 ( a ) WPD plc 's amounts borrowed at September 30, 2015 and December 31, 2014 were USD-denominated borrowings of $ 200 million and $ 161 million, which bore interest at 1.80% and 1.86% . WPD (East Midlands) amounts borrowed at September 30, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $ 214 million and $ 100 million, which bore interes t at 0.91% and 1.00% . At September 30, 2015 , the unused capacity under the U.K. credit facilities was $ 1.3 billion. (b ) LKE’s interest rates on outstanding borrowings at September 30, 2015 and December 31, 2014 were 1.45% and 1.67% . PPL Electric, LG&E and KU maintain commercial paper programs to provide an additio nal financing source to fund short-t erm liquidity needs, as necessary. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, a re supported by the respective R egistrant's Syndicated Credit Facility. The fol lowing commercial paper programs were in place at: September 30, 2015 December 31, 2014 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Electric 0.41% $ 300 $ 68 $ 232 LG&E 350 350 0.42% $ 264 KU 350 350 0.49% 236 Total $ 1,000 $ 68 $ 932 $ 500 In October 2015, PPL Capital Funding established a commercial paper program for up to $ 600 million to provide an additional financing source to fund its short-term liquidity needs from time to time. Commercial paper issuances will be supported by PPL Capital Funding's Syndicated Credit Facilities. PPL guarantees PPL Capital Funding's payment obligations on the commercial paper notes. (LKE ) See Note 11 for discussion of intercompany borrowings. Long-term Debt (PPL, LKE and LG&E) In September 2015, LG&E issued $ 300 million of 3.30% First Mortgage Bonds due 2025 and $ 250 million of 4.375% First Mortgage Bonds due 2045 . LG&E received proceeds of $ 298 million and $ 248 million, net of discounts and underwriting fees, which were used to repay short-term debt and additionally will be used for the repayment of First Mortgage Bonds maturing in November 2015, and for general corporate purposes. (PPL, LKE and KU) In September 2015, KU issued $ 250 million of 3.30% First Mortgage Bonds due 2025 and $ 250 million of 4.375% First Mortgage Bonds due 2045 . KU received proceeds of $ 248 million for each issuance, net of discounts and underwriting fees, which were used to repay short-term debt and additionally will be used for the repayment of First Mortgage Bonds maturing in November 2015, and for general corporate purposes. (PPL and PPL Electric) In October 2015, PPL Electric issued $ 350 million of 4.150% First Mortgage Bonds due 2045 . PPL Electric received proceeds of $ 345 million, net of a discount and underwriting fees, which will be used to repay short-term debt and for general corporate purposes. (PPL) ATM Program I n February 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. For the period s ended September 30, 2015 , PPL issued the following: Three Months Nine Months Number of shares 435,800 857,500 Average share price $ 32.95 $ 33.33 Net proceeds 14 28 Distributions In August 2015 , PPL declared its increased quarterly common stock dividend, payable October 1, 2015 , at 37.75 cents per share (equivalent to $ 1.51 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 . See Note 8 for informa tion regarding the June 1, 2015 distribution to PPL’s shareowners of a newly formed entity, Holdco, which at closing owned all of the membership interests of PPL Energy Supply and all of the common stock of Talen Energy. |
Acquisitions, Development and D
Acquisitions, Development and Divestitures | 9 Months Ended |
Sep. 30, 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, modify or terminate the projects . Any resulting transactions may impact future financial results. See Note 8 in the 2014 Form 10-K for additional information. (PPL) Discontinued Operations Spinoff of PPL Energy Supply In June 2014, PPL and PPL Energy Supply executed definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and immediately combine it with Riverstone’s competitive power generation businesses to form a new, stand-alone, publicly traded company named Talen Energy. The transaction was subject to customary closing conditions, including receipt of regulatory approvals from the NRC, FERC, DOJ and PUC, all of which were received by mid-April 2015. On April 29, 2015, PPL’s Board of Directors declared the June 1, 2015 distribution to PPL’s shareowners of record on May 20, 2015 of a newly formed entity, Holdco, which at closing owned all of the membership intere sts of PPL Energy Supply and all of the common stock of Talen Energy. Immediately following the spinoff on June 1, 2015, Holdco merged 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 was contributed by its owners to become a subsidiary of Talen Energy. PPL shareowners received approxi mately 0.1249 shares of Talen Energy common stock for each share of PPL common stock they owned on May 20, 2015. Following completion of these transactions, PPL shareowners owned 65% of Talen Energy and affil iates of Riverstone owned 35% . The spinoff had no effect on the number of PPL common shares owned by PPL shareowners or the number of shares of PPL common stock outstanding. The transaction is intended to be tax-free to PPL and its shareowners for U.S. federal income tax purposes. PPL has no continuing ownership interest in, control of, or affiliation with Talen Energy and Talen Energy Supply (formerly PPL Energy Supply). Loss on Spinoff In conjunction with the accounting for the spinoff, PPL evaluated whether the fair value of the Supply segment’s net assets was less than the carrying value as of the June 1, 2015 spinoff date. PPL considered several valuation methodologies to derive a fair value estimate of its Supply segment at the spinoff date . These methodologies included considering the closing “when-issued” Talen Energy market value on June 1, 2015 (the spinoff date), adjusted for the proportional share of the equity value attributable to the Supply segmen t , as well as, the valuation methods consistently used in PPL’s goodwill impairment assessments – an income approach using a discounted cash flow analysis of the Supply segment and an alternative market approach considering market multiples of comparable c ompanies. Although the market value of Talen Energy approach utilized the most observable inputs of the three approaches, PPL considered certain limitations of the “when - issued” trading market for the spinoff transaction including the short trading duration, lack of liquidity in the market and anticipated initial Talen stock ownership base selling pressure, among other factors , and concluded that these factors limit this input being solely determinative of the fair value of the Supply segment. As s uch, PPL also considered the other valuation approaches in estimating the overall fair value, but ultimately assign ed the highest weighting to the Talen Energy market value approach. The following table summarizes PPL’s fair value analysis: Weighted Fair Value Approach Weighting (in billions) Talen Energy Market Value 50% $ 1.4 Income/Discounted Cash Flow 30% 1.1 Alternative Market (Comparable Company) 20% 0.7 Estimated Fair Value $ 3.2 A key assumption included in the fair value estimate is the application of a control premium of 25% in the two market approaches. PPL concluded it was appropriate to apply a control premium in these approaches as the goodwill impairment testing guidance was followed in determining the estimated fair value of the Supply segment which has historically been a reporting unit for PPL. This guidance provides that the market price of an individual security (and thus the market capita lization of a reporting unit with publically traded equity securities) may not be representative of the fair value of the reporting unit. This guidance also indicates that substantial value may arise to a controlling shareholder from the ability to take a dvantage of synergies and other benefits that arise from control over another entity, and that the market price of a Company’s individual share of stock does not reflect this additional value to a controlling shareholder. Therefore, the quoted market pric e need not be the sole measurement basis for determining the fair value, and including a control premium is appropriate in measuring the fair value of a reporting unit. In determining the control premium, PPL reviewed premiums received during the last five years in market sales transactions obtained from observable independent power producer and hybrid utility transactions greater than $1 billion. Premiums for these transactions ranged from 5% to 42% with a median of approximately 25% . Given these metrics, PPL concluded a control premium of 25% to be reasonable for both of the market valuation approaches used. Assumptions used in the discounted cash flow analysis included forward energy prices, forecasted generation, and forecasted operation and maintenance expenditures that were consistent with assumptions used in the Energy Supply portion of the recent Talen Energy business planning process and a market participant discou nt rate. Using these methodologies and weightings, PPL determined the estimated fair value of the Supply segment (classified as Level 3) was below its carrying value of $ 4.1 billion and recorded a loss on the spinoff of $ 879 mill ion in the second quarter of 2015, which is reflected in discontinued operations and is nondeductible for tax purposes. This amount served to reduce the basis of the net assets accounted for as a dividend at the June 1, 2015 spinoff date. Costs of Spinof f 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 substantial ly 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 September 30, 2015 and December 31, 2014 , the recorded liabilities related to the separation benefits were $ 11 million and $ 21 million, which are included in “Other current liabilities” on the Balance Sheets . Additional employee-related costs incurred primarily include accelerated stock-based compensation and prorated performance-based cash incentive and stock-based compensation awards, primarily for PPL Energy Supply employees and for PPL Services employees who became PPL Energy Supply employees in connection with the transaction. PPL Energy Supply recognized $ 24 million of these costs at the spinoff closing date, which are reflected in discontinued operations. As the vesting fo r all PPL Energy Supply employees was accelerated and all remaining unrecognized compensation expense accelerated concurrently with the spinoff, PPL does not expect to recognize significant future compensation costs for equity awards held by former PPL Ene rgy Supply employees. PPL’s future stock-based compensation expense will not be significantly impacted by equity award adjustments that occurred as a result of the spinoff. Stock-based compensation expense recognized in future periods will correspond to the unrecognized compensation expense as of the date of the spinoff, which reflects the unamortized balance of the original grant date fair value of the equity awards held by PPL employees. PPL recorded $ 44 million of third-party costs related to this transaction during the nine months ended September 30, 2015 . Of these costs, $ 31 million were primarily for bank advisory, legal and accounting fees to facilitate the transaction, and are reflecte d in discontinued operations. An additional $ 13 million of consulting and other costs were incurred during the nine months ended September 30, 2015 , related to the formation of the Talen Energy organization and to reconfigure the rem aining PPL service functions. These costs are primarily recorded in "Other operation and maintenance" on the Statement of Income. No significant additional third-party costs are expected to be incurred. PPL recorded $ 5 million and $ 21 million of third-party costs related to this transaction during the three and nine months ended September 30, 2014 . At the close of the transaction, $ 72 million ($ 42 million after-tax) of ca sh flow hedges, primarily unamortized losses on PPL interest rate swaps recorded in AOCI and designated as cash flow hedges of PPL Energy Supply’s future interest payments, were reclassified into earnings and reflected in discontinued operations. As a r esult of the spinoff announcement in June 2014, PPL recorded $ 3 million and $ 49 million of deferred income tax expense during the three and nine months ended September 30, 2014, to adjust valuation allowances on deferred tax assets primarily for state net operating loss carryforwards that were previously supported by the future earnings of PPL Energy Supply. Continuing Involvement As a result of the spinoff, PPL and PPL Energy Supply entered into a Transition Services Ag reement (TSA) that terminates no later than two years from the spinoff date . The TSA sets forth the terms and conditions for PPL and Talen Energy to provide certain transition services to one another. PPL will provide Talen Energy certain in formation technology, financial and accounting, human resource and other specified services. For the three and nine months ended September 30, 2015 , the amounts PPL billed Talen Energy for these services were $ 11 million and $ 14 million. In general, the fees for the tr ansition services allow the provider to recover its cost of the services, including overheads, but without margin or profit. Additionally, prior to the spinoff, through the annual competitive solicitation process, PPL EnergyPlus was awarded supply contracts for a portion of the PLR generation supply for PPL Electric, which were retained by Talen Energy Marketing as part of the spinoff transaction. PPL Electric's supply contracts with Talen Energy Marketing extend through Decembe r 2015. The energy purchases were previously included in PPL Electric's Statements of Income as "Energy purchases from affiliate" but were eliminated in PPL’s Consolidated Statements of Income. Subsequent to the spinoff, PPL Electric’s energy purchases f rom Talen Energy Marketing were not significant and are no longer considered affiliate transactions. Summarized Results of Discontinued Operations The operations of the Supply segment are included in “Income (Loss) from Discontinued Operations (net of in come taxes)” on the Statements of Income. Following are the components of Discontinued Operations in the Statements of Income for the periods ended September 30: Three Months Nine Months 2015 2014 2015 2014 Operating revenues $ 1,623 $ 1,427 $ 1,741 Operating expenses 1,429 1,328 1,593 Other Income (Expense) - net 8 (22) 6 Interest Expense (a) 47 150 145 Income (loss) before income taxes 155 (73) 9 Income tax expense (benefit) $ 3 68 (37) (4) Loss on spinoff (879) Income (Loss) from Discontinued Operations (net of income taxes) $ (3) $ 87 $ (915) $ 13 (a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized. Summarized Assets and Liabilities of Discontinued Operations The assets and liabilities of PPL’s Supply segment for all periods prior to the spinoff are included in “Current assets of discontinued operations”, “Noncurrent assets of discontinued operations”, “Current liabilities of discontinued operations” and “Noncurrent liabilities of discontinued operations” on PP L’s Balance Sheet. Net assets , after recognition of the loss on spinoff, of $ 3.2 billion were distributed to PPL s hareowners on June 1, 2015, as a result of the completion of the spinoff of PPL Energy Supply. The following major classes of assets and liabilities were distributed and r emoved from PPL's Balance Sheet on June 1 , 2015 . Additionally, the following major classes of assets and liabilities were reclassified to discontinued operations as of December 31, 2014 : Discontinued Distribution on Operations at June 1, December 31, 2015 2014 Cash and cash equivalents (a) $ 371 $ 352 Restricted cash and cash equivalents 156 176 Accounts receivable and unbilled revenues 325 504 Fuels, materials and supplies 415 455 Price risk management assets 784 1,079 Other current assets 65 34 Total Current Assets 2,116 2,600 Investments 999 980 PP&E, net 6,384 6,428 Goodwill 338 338 Other intangibles 260 257 Price risk management assets 244 239 Other noncurrent assets 78 75 Total Noncurrent Assets 8,303 8,317 Total assets $ 10,419 $ 10,917 Short-term debt and long-term debt due within one year $ 885 $ 1,165 Accounts payable 252 361 Price risk management liabilities 763 1,024 Other current liabilities 229 225 Total Current Liabilities 2,129 2,775 Long-term debt (excluding current portion) 1,932 1,683 Deferred income taxes 1,259 1,223 Price risk management liabilities 206 193 Accrued pension obligations 244 299 Asset retirement obligations 443 415 Other deferred credits and noncurrent liabilities 103 150 Total Noncurrent Liabilities 4,187 3,963 Total liabilities $ 6,316 $ 6,738 Adjustment for loss on spinoff 879 Net assets distributed $ 3,224 (a) The distribution of PPL Energy Supply ’s cash and cash equivalents at June 1, 2015 is included in "Net cash provided by (used in) financing activities - discontinu ed operations" on the Statement of Cash Flows for the nine months ended September 30, 2015 . 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 from the sa le remained with PPL and did not transfer to Talen Energy as a result of the spinoff of PPL Energy Supply. The sale included 11 hydroelectric power facilities and related assets, included in the Supply segment. As the Montana hydroelectric power facilities were previously reported as a component of PPL Energy Supply and the Supply Segment, the components of discontinued operations for these facilities contained in the Statements of Income are included in the disclosure above . Development Future Capacity Needs (PPL, LKE, LG&E and KU) The Cane Run Unit 7 NGCC was put into commercial operation on June 19, 2015. As a result and to meet more stringent EPA regulations, LG&E retired one coal-fired generating unit at the Cane Run plant in March 2015 and retired the remaining two coal-fired generating units at the plant in June 2015. Additionally, KU retired the remaining two coal-fired generating units at th e Green River plant on September 30, 2015. LG&E and KU incurred costs of $ 11 million and $ 6 million , respectively, directly related to these retirements including inventory write-downs and separati on benefits . However, there were no gains or losses on the retirement of these units. See Note 6 for more information related to the regulatory recovery of the costs associated with the retirement of the Green River units. 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 co nstruct the solar generating facility at E.W. Brown. |
Defined Benefits
Defined Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefits [Abstract] | |
Defined Benefits | 9 . Defined Benefits (PPL) PPL performed a remeasurement of the assets and the obligations for the PPL Retirement Plan and PPL Postretirement Benefit plans as of May 31, 2015 to allow for separation of those plans for PPL and Talen Energy as required in accordance with the spinoff transaction agreements. The net pension obligations for all active PPL Energy Supply employees and for individuals who terminated employment from PPL Energy Supply on or after July 1, 2000 were distribute d and removed from PPL’s Balance Sheet. The net other postretirement benefit obligations for all active PPL Energy Supply employees were distributed and removed from PPL’s Balance Sheet. In addition, the net nonqualified pension plan obligations for all PPL Energy Supply active and inactive employees were retained by PPL. As a result, PPL distributed and removed from its Balance Sheet $244 million of net accrued pension obligations and $7 million of other postretirement benefit obligations. See Note 8 for additional information on the spinoff of PPL Energy Supply. (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 appli cable subsidiaries for plans sponsored by PPL Services and LKE. Additionally, as a result of the LG&E and KU rate case settlement that became effective July 1, 2015, the difference between pension cost calculated in accordance with LG&E and KU’s pension accounting policy and pension cost calculated using a 15 year amortization period for actuarial gains and losses is recorded as a regulatory asset. See Note 6 for further information . Following are the net periodic def ined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended September 30 : Pension Benefits Three Months Nine Months U.S. U.K. U.S. U.K. 2015 2014 (c) 2015 2014 2015 (b) 2014 (c) 2015 2014 PPL Service cost $ 20 $ 24 $ 21 $ 18 $ 76 $ 73 $ 60 $ 54 Interest cost 42 56 80 90 152 168 236 268 Expected return on plan assets (56) (72) (133) (133) (201) (216) (393) (395) Amortization of: Prior service cost 1 5 5 15 Actuarial (gain) loss 18 8 39 34 65 22 118 100 Net periodic defined benefit costs (credits) prior to termination benefits 25 21 7 9 97 62 21 27 Termination benefits (a) (7) 13 Net periodic defined benefit costs (credits) $ 25 $ 14 $ 7 $ 9 $ 97 $ 75 $ 21 $ 27 Pension Benefits Three Months Nine Months 2015 2014 2015 2014 LKE Service cost $ 7 $ 5 $ 20 $ 16 Interest cost 17 17 51 50 Expected return on plan assets (22) (21) (66) (62) Amortization of: Prior service cost 1 1 5 3 Actuarial (gain) loss 9 4 26 10 Net periodic defined benefit costs (credits) $ 12 $ 6 $ 36 $ 17 LG&E Service cost $ 1 $ 1 Interest cost $ 3 $ 4 10 11 Expected return on plan assets (5) (4) (15) (14) Amortization of: Prior service cost 1 1 2 2 Actuarial (gain) loss 3 1 9 4 Net periodic defined benefit costs (credits) $ 2 $ 2 $ 7 $ 4 (a) The three and nine months ended September 30, 2014 include termination benefits of $ (2) million and $ 2 million for PPL Electric . The remaining $ (5) million and $ 11 million relate to PPL Energy Supply and are reflected in d iscontinued o perations . (b) For the nine months ended September 30, 2015 , the total net periodic defined benefit cost include s $ 18 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff . (c) For the three and nine months ended September 30, 2014 , the total net periodic defined benefit cost include s $ 1 million and $ 29 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply. Other Postretirement Benefits Three Months Nine Months 2015 2014 2015 2014 PPL Service cost $ 2 $ 3 $ 9 $ 9 Interest cost 6 7 20 23 Expected return on plan assets (6) (6) (20) (19) Net periodic defined benefit costs (credits) $ 2 $ 4 $ 9 $ 13 LKE Service cost $ 1 $ 1 $ 4 $ 3 Interest cost 2 2 7 7 Expected return on plan assets (1) (1) (4) (4) Amortization of: Prior service cost 1 1 2 2 Net periodic defined benefit costs (credits) $ 3 $ 3 $ 9 $ 8 (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 thos e plans, which management believes are reasonable. For the periods ended September 30, 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 Nine Months 2015 2014 2015 2014 PPL Electric (a) $ 8 $ 3 $ 24 $ 18 LG&E 3 2 10 6 KU 4 2 13 6 (a) The three and nine months ended September 30, 2014 include $ (2) million and $ 2 million of termination benefits for PPL Electric related to a one-time voluntary retirement window offered to certain bargaining unit employees. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10 . Commitments and Contingencies (PPL) All commitments , contingencies and guarantees associated with PPL Energy Supply and its subsidiaries were retained by Talen Energy Supply and its subsidiaries at the spinoff date without recourse to PPL. 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 other wise noted. WKE Indemnification (PPL and LKE) See footnote (e) 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, LKE, LG&E and KU) Ca ne 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 Clean Air Act claim, 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. Oral argument before the Sixth Circuit was held in August 2015, but a ruling has not yet been issued by the Court. PPL, LKE and LG&E cannot predict the outcome of this matter. LG&E retired one coal-fired unit at the Cane Run plant in March 2015 and the remaining two coal-fired units at the plant in June 2015. Mill Creek Environmental Claims In May 2014, the Sierra Club filed a citizen suit against LG&E in the U.S. District Court f or 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, costs and attorney's fees. In August 2015, the Court denied cross-motions for summary judgment filed by both parties and directed the parties to proceed with discovery. PPL, LKE and LG&E cannot predict the outcome of this matter or th e potential impact on the operations of the Mill Creek plant but believe the plant is operating in compliance with the permits. E.W. Brown Environmental Claims In October 2015, KU received a notice of intent from Earthjustice and the Sierra Club informing certain federal and state agencies of the Sierra Club’s intent to file a citizen suit , following expiration of the mandatory 60-day notification period, for alleged violations of the Clean Water Act . The claimant alleges discharges a t the E.W. Brown plant in violation of applicable rules and the plant’s water discharge permit . The c laimant asserts that, unless the alleged discharges are pr omptly brought into complianc e, it intends to seek civil penalties, injunct ive relief and attorney’s fees. PPL, LKE and KU cannot predict the outcome of this matter or the potential impact on the operations of the E. W. Brown plant. Regulatory Issues ( All Registrants) See Note 6 for information on regulatory matters related to utility rate regulation. Electricity - Reliability Standards The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk power s ystem. 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 Re liability Standards and continue to self-report or self-log potential violations of certain applicable reliability requirements and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. An y 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 com pliance 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 estim ate 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 FE RC'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-p ower system. This NERC-proposed standard was approved by FERC in June 2014. These requirements do not impose significant costs on the Registrants. 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. FERC issued a notice of proposed rulemaking on this second type of Reliability Standard on May 14, 2015. The Registrants do not presently anticipate si gnificant costs to comply with the requirements if finalized as proposed. 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 futur e 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 com panies' 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. PPL , PPL Electric, LKE , LG&E and KU can provide no as surances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities. ( PPL , LKE , LG&E and KU ) Air The C lean Air Act , which regulates air pollutants from mobile and stationary sources, has a significant impact on the operation of fossil fuel plants. The C lean Air Act requires the EPA periodically to review and establish concentration levels in the ambient air for six criteria pollutants to protect public health and welfare. These concentration levels are known as NAAQS . The six criteria pollutants are carbon monoxide, lead, nitrogen dio xide, ozone, particulate matter and SO 2 . Federal environmental regulations of these criteria pollutants require states to adopt implementation plans, known as SIPs , for certain pol lutants, which detail how the state will attain the standards that are mandated by the relevant law or regulation. Each state identifies the areas within its boundaries that meet the NAAQS (attainment areas) and those that do not (non-attainment areas), a nd must develop a SIP both to bring non-attainment areas into compliance with the NAAQS and to maintain good air quality in attainment areas. In addition, for attainment of ozone and fine particulates standards, states in the eastern portion of the countr y, including Kentucky, are subject to a regional program developed by the EPA known as the Cross-State Air Pollution Rule. The NAAQS , future revisions to the NAAQS and SIPs implementing them , or future revisions to regional programs, may require install at ion of additional pollution controls, the costs of which PPL , LKE , LG&E and KU believe are subject to cost recovery. Although PPL , LKE , LG&E and KU do not currently anticipate significant costs to comply with these programs, changes in market or operating conditions could result in different costs than anticipated. National Ambient Air Quality Standards ( NAAQS ) Under the Clean Air Act, the EPA is required to reassess the NAAQS for certain air pollutants on a five-year schedule. In 2008, the EPA revised the NAAQS for ozone and proposed to further strengthen the standard in November 2014. The EPA released a new ozone standard on October 1, 2015. The states an d EPA will determine attainment with the new ozone standard through review of relevant ambient a ir monitoring data, with attainment or nonattainment designations scheduled no later than October 2017. 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. States that are not in the ozone transport region, 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 predicted at this time. In 2010, the EPA finalized revised NAAQS for sulfur dioxide and required states to identify areas t hat 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 Jefferson County in Kentucky. Attainment must be achieved by 2018. PPL , LKE , LG&E an d KU anticipate that certain previously required compliance measures , such as upgraded or new sulfur dioxide scrubbers at certain plants and the retirement of coal-fired generating units at LG&E’s Cane Run plant and KU’s Green River and Tyrone plants, will help to achieve compliance with the new sulfur dioxide and ozone standard s . If additional reductions are required, the costs could be significant. Mercury and Air Toxics Standards ( MATS ) In February 2012, the EPA finalized the MATS rule requiring redu ctions of mercury and other hazardous air pollutants from fossil-fuel fired power plants, with an effective date of April 16, 2012. The MATS rule was challenged by industry groups and states and was upheld by the U .S. Court of Appeals for the D. C. Circui t Court (D.C. Circuit Court) in April 2014. A group of states subsequently petitioned the U.S. Supreme Court (Supreme Court) to review this decision and on June 29 , 2015, the Supreme Court held that the EPA failed to properly consider costs when deciding t o regulate hazardous air emissions from power plants under MATS. The Court remanded the matter to the D.C. Circuit Court. EPA’s MATS rule remains in effect pending action by the D.C. Circuit Court. It is uncertain whether the D.C. Circuit Court will vac ate the MATS rule, remand the rule to the EPA, or require further proceedings or actions. LG&E and KU have installed significant controls in connection with the MATS rule and in conjunction with compliance with other environmental requirements, including fabric- filter baghouses , upgraded FGDs or chemical additive systems for which appropriate KPSC authorization and/or ECR treatment has been received. PPL , LKE , LG&E and KU cannot predict the outcome of this matter or the potential impact, if any, on plant operations, rate treatment or future capital or operating needs. 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. States and environmental groups also have commenced litigation allegi ng violations of the NSR regulations by coal-fired genera ting plants across the nation. PPL , LKE , LG&E and KU cannot predict the outcome of these matters, and cannot estimate the impact , if any. If LG&E or KU is found to have triggered the applicability of NSR regulations by increasing pollutants beyond allowable thresholds through a plant modification , the company c ould, among other things, be required to meet substantially more stringent permit limits . The costs to meet such limits, including installat ion of technology at certain units, could be significant . Trimble County Unit 2 Air Permit The Sierra Club and other environmental groups petitioned the Kentucky Environmental and Public Protection Cabinet to overturn the air permit issued for the Trimb le 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 pend ing 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) Authority to R egulate Carbon Dioxide Emissions The EPA issued rules in 2014 regulating carbon dioxide emissions from stationary sources under the NSR and Title V operating permit provisions of the C lean Air Act . The EPA's rules were challenged in court and , i n June 2014, the U.S. Supreme C ourt ruled that the EPA has authority to regulate carbon dioxide emissions under the C lean 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 permit limits for carbon dioxide , but only if it would otherwise be subject to limits on new or modified sources due to significant increases in other pollutants. The EPA’s Rules under Section 111 of the Clean Air Act As fur ther described below, in August 2015 , the EPA finalized rules imposing greenhouse gas emission standards f or both new and existing power plants. The EPA has also issued a proposed federal implementation plan which would apply to any states that fail to submit an acceptable state implementation plan under these rules. The EPA's authority to promulgate these r egulations under Section 111 of the Clean Air Act has been challenged in the D.C. Circuit Court by several states and industry groups. The EPA's rule for new power plants imposes separate emission standards for coal and natural gas units based on the ap plication 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 rule 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 natural gas-fired plants could have a significant industry-wide impact. ( PPL , LKE , LG&E and KU) The EPA's Clean Power Plan The EPA’s rule for existing power plants, referred to as the Clean Power Plan , was published in the Federal Register in October 2015. The Rule contains state-specific rate-based and mass-based reduction goals and guidelines for the development, submission and implementation of state implementation plans to achieve the state goals. State-specific goals were calculated from 2012 data by applying EPA's broad interpretation and definition of the BSER , resulting in the most stringent targets to be met in 2030 , with interim targets to be met beginning in 2022. The EPA believes it has offered some flexibility to the states as to how their compliance p lans can be crafted, including the option to use a rate-based approach (limit emissions per megawatt hour) or a mass-based approach (limit total tons of emissions per year), and the option to demonstrate compliance through emissions trading and multi-state collaborati ons. Under the rate-based approach, Kentucky would need to make a 41% reduction from its 2012 emissions rate and under a mass-based approach it would need to make a 36% reduction. These reductions are significantly greater than initially proposed and present signi ficant challenges to the state. If Kentucky fails to develop an approvable implementation plan by September 2016 (with the possibility of an extension until 2018), the EPA will i mpose a federal implementation plan that could be more stringent than what the state plan might provide. Depe nding on the provisions of the Kentucky implementation plan, LG&E and KU may need to modify their current portfolio of generating assets during th e next decade and/or participate in an allowance trading program . LG&E and KU are participating in the ongoing regulatory processes at the state and federal level in an effort to provide input into the state or federal implementation plan that will govern reductions in Kentucky. PPL , LKE , LG&E and KU cannot predict the outcome of this matter or the potential impact, if any, on plant operations, or future capital or operating needs. PPL , LKE , LG&E and KU believe that the costs, which could be significant, would be subject to cost recovery. 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 ren ewable 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 that the EPA has established for Kentucky. A number of lawsuits have been f iled 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 r emains unsettled on these claims. In June 2011, the U.S. Supreme Court in the case of AEP v. Connecticut ruled that federal common law claims against five utility companies for allegedly causing a public nuisance as a result of their emissions of GHGs were displaced by the C lean 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) upheld a district court ruling that plaintiff s did not have standing to pursue state common law claims against companies that emit GHGs . The plaintiffs in the Comer case later filed a substantially similar complaint against a larger group of companies which was subsequently d ismissed by the U. S. Dis trict Court for the Southern District of Mississippi. The lower court’s ruling was affirmed by the Fifth Circuit in May 2013. Additional litigation in federal and state courts over such issues is continuing. PPL , LKE , LG&E and KU can not predict the outc ome of these matters. Water/Waste 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 became effective on October 19 , 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 a re 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 do cumentation on a publicly accessible website and is enforceable through citizen suits. LG&E’s and KU’s plants us ing surface impoundments for management and disposal of CCRs will be most impacted by this rule . The rule's requirements for covered CCR impou ndments 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 t ime to address other provisions of the rule, such as groundwater monitoring and disposal facility modifications or closings, or to implement various compliance strategies. In connection with the final CCR rule, LG&E and KU recorded increases to existing A ROs during the three and nine months ending September 30, 2015. See Note 16 for additional information. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. C osts relating to this rule are subject to rate recovery . Trimble County Landfill 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 Protec tion Act. 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 p ermit from the U.S. Army Corps of Engineers . LG&E and KU have responded to comments on the permit application submitted by EPA and other parties. PPL , LKE , LG&E and KU are unable to determine the potential impact of this matter until all permits are issu ed and any resulting legal challenges are concluded. See Note 6 for additional information on Kentucky Public Service Commission proceedings relating to the Trimble County Landfill. Clean Water Act Regulations under the federal Clean Water Act dictate p ermitting and mitigati on requirements for many of LG&E’s and KU’s construction projects. Many of those requirements relate to power plant operations, including requirements related to the treatment of pollutants in effluents prior to discharge, the temper ature of effluent disc harges and the location, design and construction of cooling water intake structures at generating facilities, standards intended to protect aquatic organisms by reducing capture in the screens attached to cooling water intake structur es (impingement) a t generating facilities and the water volume brought into the facilities (entrainment). The requirements could impose significant costs which are subject to rate recovery. Effluen t Limitations Guidelines ( ELGs ) On September 30, 2015, the EPA released its final effluent limitations guidelines for wastewater discharge permits for new and existing steam electric generating facilities. The rule provides strict technology-based discharge limitations for control of po llutants in scrubber wastewater, fly ash and bottom ash transport water, mercury control wastewater, gasification wastewater, and combustion residual leachate. The new guidelines require deployment of additional control technologies providing physical, ch emical, and biological treatment of wastewaters. The guidelines also mandate operational changes including “no discharge” requirements for fly ash and bottom ash transport waters and mercury control wastewaters. The implementation date for individual gen erating stations will be determined by the state s on a case-by-case basis according to criteria provided by the EPA, but the requirements of the rule must be fully implemented no later than 2023. It is not currently known how Kentucky intends to integrate the ELGs into its ongoing permit renewal process. LG&E and KU continue to assess the requirements of this complex rule to determine available compliance strategies. PPL , LKE , LG&E and KU are unable to fully estimate compliance costs or timing at this ti me although certain preliminary estimates are included in current capital forecasts, for applicable periods. Costs to comply with ELGs or other discharge limits , which are expected to be significant, are subject to rate recovery. ( PPL , LKE and LG&E ) Clean Water Act Section 316(b) 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 broad discretion to make site-s pecific 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 equipped with closed-cycle cooling, an acceptable option, would likely not incur substantial costs. Once-through systems would likely require additional tech nology to comply with the rule. Mill Creek Unit 1 is the only unit expected to be impacted. PPL , LKE , and LG&E are evaluating compliance strategies but do not presently expect the compliance costs , which are subject to rate recovery, to be significant . (All Registrants) Water s of the United States ( WOTUS ) The U.S. Court of Appeals for the Sixth Circuit has issued a stay of EPA ’s rule on the definition of WOTUS pending the court’s review of the rule . The effect of the stay is that the WOTUS rule is not currently in effect anywhere in the United States . The ultimate outcome of the court’s review of the rule remains uncertain. The Registrants had not expected the rule to have a signifi cant impact on their operations, but were unable to predict the impac t of the rule in light of the ongoing litigation, particularly in Pennsylvania where the rule could have resulted in significant project delays and added costs, as permits and other regulatory requirements could have be en imposed for many activities not ot herwise covered by permitting requirements (including vegetation management for transmission lines and activities affecting storm water conveyances and wetlands). Other Issues The EPA is reassessing its p olychlorinated 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 has postponed the release of the revised regulations to March 2016 . The Registrants cannot predict at this time the outcome of these proposed EPA regulations and what impact, if any, they woul d 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 ( KEEC ) challenging the K entucky Pollutant Discharge Elimination System permit issued in April 2010, which covers water discharges from the Trimble County plant. In November 2010, the KEEC issued a final order upholding the permit which was subsequently appealed by the environmen tal groups. In September 2013, the Franklin Circuit Court reversed the KEEC order upholding the permit and remanded the permit to the agency for further proceedings. LG&E and the KEEC appealed the order to the Kentucky Court of Appeals. In July 2015, th e Court of Appeals upheld the lower court ruling. LG&E and the KEEC have moved for discretionary review by the Kentucky Supreme Court . PPL , LKE , LG&E and KU are unable to predict the outcome of this matter or the potential impact, if any, on plant operat ions or future capital or operating needs. 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 and the Brodhead 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. Should the EPA require different or additional measures in the future, however, 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 investigating, responding to agency inquiries, remediating, or have completed the remediation of, several sites that were not addressed under a regulatory program such as S uperfund, 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 P PL 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 significant . PPL , PPL Electric, LKE , LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters. The EPA i s 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 qualit |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 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 was 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" through May 31, 2015, the period through whi ch PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electri c's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppli ers to post collateral once credit exposures exceed defined credit limits. Wholesale suppliers are required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by the wholesale suppliers exceeds the contract pri ce for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit . 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 Talen Energy Marketing. See Note 8 for additional information regarding the spinoff of PPL Energy Supply . Support Costs (PPL Electric, LKE, LG&E and KU) 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 recipient s as direct support costs. G eneral 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 t hat includes the applicable recipient s' 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 informat ion. PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. 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 September 30, 2015 and December 31, 2014 , $ 62 million 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 September 30, 2015 and December 31, 2014 were 1.70% and 1.65% . Interest on the revolving line of credit was not significant for the three and nine months ended September 30, 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 was 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" through May 31, 2015, the period through whi ch PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electri c's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppli ers to post collateral once credit exposures exceed defined credit limits. Wholesale suppliers are required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by the wholesale suppliers exceeds the contract pri ce for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit . 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 Talen Energy Marketing. See Note 8 for additional information regarding the spinoff of PPL Energy Supply . Support Costs (PPL Electric, LKE, LG&E and KU) 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 recipient s as direct support costs. G eneral 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 t hat includes the applicable recipient s' 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 informat ion. PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. 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 September 30, 2015 and December 31, 2014 , $ 62 million 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 September 30, 2015 and December 31, 2014 were 1.70% and 1.65% . Interest on the revolving line of credit was not significant for the three and nine months ended September 30, 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 was 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" through May 31, 2015, the period through whi ch PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electri c's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppli ers to post collateral once credit exposures exceed defined credit limits. Wholesale suppliers are required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by the wholesale suppliers exceeds the contract pri ce for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit . 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 Talen Energy Marketing. See Note 8 for additional information regarding the spinoff of PPL Energy Supply . Support Costs (PPL Electric, LKE, LG&E and KU) 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 recipient s as direct support costs. G eneral 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 t hat includes the applicable recipient s' 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 informat ion. PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. 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 September 30, 2015 and December 31, 2014 , $ 62 million 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 September 30, 2015 and December 31, 2014 were 1.70% and 1.65% . Interest on the revolving line of credit was not significant for the three and nine months ended September 30, 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 was 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" through May 31, 2015, the period through whi ch PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electri c's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. Under the standard Default Service Supply Master Agreement for the solicitation process, PPL Electric requires all suppli ers to post collateral once credit exposures exceed defined credit limits. Wholesale suppliers are required to post collateral with PPL Electric when: (a) the market price of electricity to be delivered by the wholesale suppliers exceeds the contract pri ce for the forecasted quantity of electricity to be delivered; and (b) this market price exposure exceeds a contractual credit limit . 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 Talen Energy Marketing. See Note 8 for additional information regarding the spinoff of PPL Energy Supply . Support Costs (PPL Electric, LKE, LG&E and KU) 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 recipient s as direct support costs. G eneral 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 t hat includes the applicable recipient s' 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 informat ion. PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. 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 September 30, 2015 and December 31, 2014 , $ 62 million 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 September 30, 2015 and December 31, 2014 were 1.70% and 1.65% . Interest on the revolving line of credit was not significant for the three and nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Other Income (Expense) Net [Abstract] | |
Other Income (Expense) - net | 12 . Other Income (Expense) - net (PPL) " Other Income (Expense) - net " for the three and nine months ended September 30, 2015 and 2014 consisted primarily of gains on foreign currency exchange contracts to economically hedge the earnings translation risk of WPD’s earnings denominated in British pound sterling . See Note 14 for additional information on these de rivatives. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements (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 a n asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent mar ket data and/or unobservable data that management believes are predicated on the assumptions mar ket participants would use to price an a sset 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 and nine months ended September 30, 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, excluding assets and liabilities of discontinued operations at December 31, 2014, were: September 30, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 981 $ 981 $ 1,399 $ 1,399 Short-term investments 120 120 Restricted cash and cash equivalents (a) 36 36 31 31 Price risk management assets (b): Interest rate swaps 1 $ 1 Foreign currency contracts 169 169 130 $ 130 Cross-currency swaps 61 61 29 28 $ 1 Total price risk management assets 231 231 159 158 1 Auction rate securities (c) 1 $ 1 2 2 Total assets $ 1,249 $ 1,017 $ 231 $ 1 $ 1,711 $ 1,550 $ 158 $ 3 Liabilities Price risk management liabilities (b): Interest rate swaps $ 82 $ 82 $ 156 $ 156 Foreign currency contracts 7 7 2 2 Cross-currency swaps 3 3 Total price risk management liabilities $ 89 $ 89 $ 161 $ 161 PPL Electric Assets Cash and cash equivalents $ 26 $ 26 $ 214 $ 214 Restricted cash and cash equivalents (a) 2 2 3 3 Total assets $ 28 $ 28 $ 217 $ 217 LKE Assets Cash and cash equivalents $ 455 $ 455 $ 21 $ 21 Cash collateral posted to counterparties (d) 10 10 21 21 Total assets $ 465 $ 465 $ 42 $ 42 Liabilities Price risk management liabilities: Interest rate swaps $ 50 $ 50 $ 114 $ 114 Total price risk management liabilities $ 50 $ 50 $ 114 $ 114 LG&E Assets Cash and cash equivalents $ 180 $ 180 $ 10 $ 10 Cash collateral posted to counterparties (d) 10 10 21 21 Total assets $ 190 $ 190 $ 31 $ 31 Liabilities Price risk management liabilities: Interest rate swaps $ 50 $ 50 $ 81 $ 81 Total price risk management liabilities $ 50 $ 50 $ 81 $ 81 KU Assets Cash and cash equivalents $ 275 $ 275 $ 11 $ 11 Total assets $ 275 $ 275 $ 11 $ 11 Liabilities Price risk management liabilities: Interest rate swaps $ 33 $ 33 Total price risk management liabilities $ 33 $ 33 (a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. (b) Included in “Other current assets”, “Other current liabilities”, “Other noncurrent assets” and “Other deferred credits and noncurrent liabilities” on the Balance Sheets. (c) Included in "Other noncurrent assets" on the Balance Sheets. ( d ) Included in "Other noncurrent assets" on the Balance Sheets. R epresent s cash collateral posted to offset the exposure with co unterparties related to certain interest rate swaps under master netting arrangements that are not offset. 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 c ontracts. 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 probabilit ies 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. Cross-currency swaps are valued by PPL 's Treasury departme nt, which reports to the Chief Financial Officer (CFO). Accounting personnel, who also report to the CFO, interpret analysis quarterly to classify the contracts in the fair value hierarchy. Valuation techniques are evaluated periodically. Nonrecurrin g Fair Value Measurements ( PP L) See Note 8 for information regarding the estimated fair value of the Supply s egment’s net assets as of the June 1, 2015 spinoff date. 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, excluding long-term debt of discontinued operations at December 31, 2014. 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 enhancem ents is not included in the fair value measurement. September 30, 2015 December 31, 2014 Carrying Carrying Amount Fair Value Amount Fair Value PPL $ 19,205 $ 21,184 $ 18,173 $ 20,466 PPL Electric 2,603 2,882 2,602 2,990 LKE 5,617 5,927 4,567 4,946 LG&E 1,903 1,978 1,353 1,455 KU 2,591 2,763 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. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 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 f unction. 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, verification of risk and transaction limits, VaR ana lyses and the coordination and reporting of the Enterprise Risk Management (ERM) program . Market Risk Market risk includes the potential loss that may be incur red as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks . F orward contracts, futures cont racts, 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 , inte rest 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 following summarizes the market risks that a ffect PPL and its Subsidiary Registrants. Interest rate risk PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and WPD hold 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. PPL, LG&E and KU utilize forward starting interest rate swaps to hedge changes in be nchmark interest rates , when appropriate, in connecti on 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 ex tent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utiliti es and for certain plans at WPD due to the recovery mechanisms in place. Foreign currency risk PPL is exposed to foreign currency exchange risk primarily ass ociated with its investments in and earnings of U.K. affiliates. 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 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 fuel-related expenses. In addition, LG&E's rates include certain mechanisms for natural gas supply. These mechanisms generally provide for timely recovery of market price and volumetric fluctuations associated with these expenses. 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 a t WPD due to the recovery mechanisms in place. PPL is exposed to equity securities price risk from future stock sales and/or purchases. 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. 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 mas ter 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 t he 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. 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, LKE, LG&E and KU had no obligation to return cash collate ral under master netting arrangements at September 30, 2015 and December 31, 2014 . PPL, LKE and LG&E posted $ 10 million and $ 21 million of cash collateral under master netting arrangements at September 30, 2015 and December 31, 2014 . KU did not post any cash collateral under master netting arrangements at September 30, 2015 and December 31, 2014 . See " Offsetting Derivative In struments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements. 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. F inancial 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 September 30, 2015 , outstanding interest rate swaps contracts range in maturity through 2026 for WPD and through 2016 for PPL's domestic interest rate swaps. These swaps held an aggregate notional value of $792 million, of which £320 million (approximately $492 million based on spot rates) was related to WPD . At September 30, 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 September 30, 2015 , PPL had an insignificant amount of hedge ineffectiveness associate d with interest rate derivatives and no hedge ineffectiveness for the three months ended September 30, 2014 . For the nine months ended September 30, 2015 and 2014 , PPL had an insignificant amount o f hedge ineffectiveness associated with interest rate derivatives . 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 on ce it is determined that the hedged transaction is probable of not occurring . As a result of the June 1, 2015 spinoff of PPL Energy Supply, all PPL cash flow hedges associated with PPL Energy Supply were ineffective and discontinued and therefore, recla ssified into earnings during the second quarter of 2015 and reflected in discontinued operations for the nine months ended September 30, 2015 . See Note 8 for additional information. For PPL's remaining cash fl ow hedges, for the three months ended Septem ber 30, 2015 and 2014 and the nine months ended September 30, 2015, PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges. For the nine months ended September 30, 2014, PPL had an insignificant amount reclassi fied into earnings associated with discontinued cash flow hedges. At September 30, 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 insignificant . 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. It is probable that realized gains and losses on all of these swaps will be recoverable 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 underlyin g debt at the time the underlying hedged interest expense is recorded. In September 2015, first mortgage bonds totaling $ 1.05 billion were issued (LG&E issued $ 550 million and KU issued $ 500 m illion) and all outstanding forward-starting interest rate swaps were terminated. Net cash settlements of $ 88 million were paid on the swaps that were terminated (LG&E and KU each paid $ 44 million). The settlements are included in "Regulatory assets" (noncurrent) on the Balance Sheets and "Cash Flows from Operating Activities" on the Statement s of Cash Flows . 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 reco rded . At September 30, 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 H edges 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 September 30, 2015 had a notional amount of £ 134 million (app roximately $ 221 million based on contracted rates). The settlement dates of these contracts range from November 2015 through June 2016 . At September 30, 2015 , PPL had $ 18 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 September 30, 2015 , the total exposure hedged by PPL was approximately £ 1.7 billion (approximately $ 2.7 billion based on contracted rates). These contracts had termination dates ranging from October 2015 through December 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 and 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 September 30, 2015 and December 31, 2014 . 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 present s th e fair value and location of derivative instruments recorded on the Balance Shee ts, excluding derivative instruments of discontinued operatio ns . September 30, 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) $ 1 $ 31 $ 5 $ 94 $ 5 Cross-currency swaps (b) 26 3 Foreign currency contracts 19 $ 76 6 $ 12 $ 67 Total current 46 31 76 11 12 97 67 5 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps (b) 1 45 14 43 Cross-currency swaps (b) 35 29 Foreign currency contracts 74 1 5 46 2 Total noncurrent 35 1 74 46 34 14 46 45 Total derivatives $ 81 $ 32 $ 150 $ 57 $ 46 $ 111 $ 113 $ 50 (a) Included in "Other current assets", "Other current liabilities", "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the B alance S heets . (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 periods ended September 30, 2015 . Three Months Nine Months 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 Three Months Nine Months on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (27) $ (29) Interest expense $ (2) $ (9) Discontinued operations $ (77) Cross-currency swaps (3) 33 Interest expense (1) 1 Other income (expense) - net (10) 22 Commodity contracts Discontinued operations 13 7 Total $ (30) $ 4 $ (13) $ 27 $ (70) Net Investment Hedges: Foreign currency contracts $ 7 $ 6 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative Three Months Nine Months Foreign currency contracts Other income (expense) - net $ 78 $ 64 Interest rate swaps Interest expense (2) (6) Total $ 76 $ 58 Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (5) $ (2) Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (42) $ (22) The following tables present the pre-tax effect of derivative instruments recognized in income , OCI, or regulatory assets and regulatory liabilitie s for the periods ended September 30, 2014 . Three Months Nine Months 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 Three Months Nine Months on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (5) $ (65) Interest expense $ (5) $ (14) $ 2 Cross-currency swaps (2) (18) Interest expense 1 Other income (expense) - net 12 (17) Commodity contracts Discontinued operations 8 30 Total $ (7) $ (83) $ 15 $ $ 2 Net Investment Hedges: Foreign currency contracts $ 25 $ 7 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative Three Months Nine Months Foreign currency contracts Other income (expense) - net $ 134 $ 38 Interest rate swaps Interest expense (2) (6) Total $ 132 $ 32 Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (6) Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (4) $ (4) Regulatory liabilities - noncurrent $ 6 $ 6 (LKE) The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 66 (a) Represents the location on the Balance Sheets . The following table present s the pre-tax effect of deriva tive instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (42) $ (22) The following table present s the pre-tax effect of deriva tive instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (4) $ (4) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 6 $ 6 (LG&E) The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 33 (a) Represents the location on the Balance Sheets. The following table present s the pre-tax effect of derivativ e instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (21) $ (11) The following table present s the pre-tax effect of derivativ e instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (2) $ (2) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 3 $ 3 (KU) The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 33 (a) Represents the location on the Balance Sheets. The following table present s the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (21) $ (11) The following table present s the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (2) $ (2) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 3 $ 3 (L KE and LG&E ) The following table present s th e fair value and the location on the Balance Sheets of derivative s not designated as hedging instruments . September 30, 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 45 43 Total noncurrent 45 43 Total derivatives $ 50 $ 48 (a) Represents the location on the Balance Sheet s . The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30, 2015 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (5) $ (2) The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30 , 2014 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (6) ( PPL, LKE, LG&E and KU) Offsetting Derivative Instruments PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell 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 set off 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 a nd not to offset net derivative positions against the right to reclaim cash collateral pledged (a n 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 September 30, 2015 Treasury Derivatives PPL $ 231 $ 33 $ 198 $ 89 $ 33 $ 10 $ 46 LKE 50 10 40 LG&E 50 10 40 December 31, 2014 Treasury Derivatives PPL $ 159 $ 65 $ 94 $ 161 $ 65 $ 21 $ 75 LKE 114 20 94 LG&E 81 20 61 KU 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 credit rating at levels that remain above investment grade. In either case, if the applicable credit rati ng 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 ongoi ng 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 re asonable 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, ca sh 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. ( PPL, LKE and LG&E ) At September 30, 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 $ 32 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 10 10 10 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 22 20 20 (a) Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill [Abstract] | |
Goodwill | 15 . Goodwill (PPL) The change in the carrying amount of goodwill for the nine months ended September 30, 2015 was due to the effect of foreign currency exchange rates on the U.K. Regulated segment. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations [Line Items] | |
Asset Retirement Obligations | 16. Asset Retirement Obligations (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 Substantially all of the ARO balances are classified as noncurrent at September 30, 2015 and December 31, 2014 . In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $ 57 million ($ 36 million at LG&E and $ 21 million at KU) and $ 219 million ($ 81 million at LG&E and $ 138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of futu re expected cash flows. An updated engineering study based on the final rule was performed in the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule. 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 (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 Substantially all of the ARO balances are classified as noncurrent at September 30, 2015 and December 31, 2014 . In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $ 57 million ($ 36 million at LG&E and $ 21 million at KU) and $ 219 million ($ 81 million at LG&E and $ 138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of futu re expected cash flows. An updated engineering study based on the final rule was performed in the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule. 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 (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 Substantially all of the ARO balances are classified as noncurrent at September 30, 2015 and December 31, 2014 . In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $ 57 million ($ 36 million at LG&E and $ 21 million at KU) and $ 219 million ($ 81 million at LG&E and $ 138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of futu re expected cash flows. An updated engineering study based on the final rule was performed in the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule. 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 (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 Substantially all of the ARO balances are classified as noncurrent at September 30, 2015 and December 31, 2014 . In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $ 57 million ($ 36 million at LG&E and $ 21 million at KU) and $ 219 million ($ 81 million at LG&E and $ 138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of futu re expected cash flows. An updated engineering study based on the final rule was performed in the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Accumulated Other Comprehensive Income (Loss) | 17 . Accumulated Other Comprehensive Income (Loss) (PPL and LKE) The after-tax changes in AOCI by component for the periods ended September 30 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 PPL June 30, 2015 $ (435) $ 2 $ (3) $ (1,849) $ 1 $ (2,284) Amounts arising during the period 52 (19) 33 Reclassifications from AOCI 10 35 45 Net OCI during the period 52 (9) 35 78 September 30, 2015 $ (383) $ (7) $ (3) $ (1,814) $ 1 $ (2,206) December 31, 2014 $ (286) $ 202 $ 20 $ 1 $ 3 $ (2,215) $ 1 $ (2,274) Amounts arising during the period (97) 7 8 (6) 52 (36) Reclassifications from AOCI (2) 20 (1) 111 128 Net OCI during the period (97) 5 28 (1) (6) 163 92 Distribution of PPL Energy Supply (Note 8) (207) (55) 238 (24) September 30, 2015 $ (383) $ $ (7) $ $ (3) $ (1,814) $ 1 $ (2,206) June 30, 2014 $ 117 $ 190 $ 61 $ 1 $ (4) $ (1,764) $ 1 $ (1,398) Amounts arising during the period (48) (1) (5) (1) (55) Reclassifications from AOCI (3) (12) 1 29 15 Net OCI during the period (48) (4) (17) 1 28 (40) September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) December 31, 2013 $ (11) $ 173 $ 94 $ 1 $ (6) $ (1,817) $ 1 $ (1,565) Amounts arising during the period 80 18 (52) (3) 43 Reclassifications from AOCI (5) 2 3 84 84 Net OCI during the period 80 13 (50) 3 81 127 September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) LKE June 30, 2015 $ (1) $ (7) $ (44) $ (52) Reclassifications from AOCI 1 1 Net OCI during the period 1 1 September 30, 2015 $ (1) $ (7) $ (43) $ (51) December 31, 2014 $ (8) $ (37) $ (45) Amounts arising during the period (8) (8) Reclassifications from AOCI $ (1) 1 2 2 Net OCI during the period (1) 1 (6) (6) September 30, 2015 $ (1) $ (7) $ (43) $ (51) June 30, 2014 $ (2) $ 12 $ 10 Net OCI during the period September 30, 2014 $ (2) $ 12 $ 10 December 31, 2013 $ 1 $ (2) $ 14 $ 13 Amounts arising during the period (2) (2) Reclassifications from AOCI (1) (1) Net OCI during the period (1) (2) (3) September 30, 2014 $ $ (2) $ 12 $ 10 (PPL) The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the periods ended September 30 . 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. Three Months Nine Months Affected Line Item on the Details about AOCI 2015 2014 2015 2014 Statements of Income Available-for-sale securities $ 7 $ 4 $ 11 Other Income (Expense) - net Total Pre-tax 7 4 11 Income Taxes (4) (2) (6) Total After-tax 3 2 5 Qualifying derivatives Interest rate swaps $ (2) (5) (9) (12) Interest Expense (77) Discontinued operations Cross-currency swaps (10) 12 22 (17) Other Income (Expense) - net (1) 1 1 Interest Expense Energy commodities 8 20 30 Discontinued operations Total Pre-tax (13) 15 (43) 2 Income Taxes 3 (3) 23 (4) Total After-tax (10) 12 (20) (2) 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) (6) Net actuarial loss (45) (38) (146) (110) Total Pre-tax (45) (40) (146) (116) Income Taxes 10 10 35 29 Total After-tax (35) (30) (111) (87) Total reclassifications during the period $ (45) $ (15) $ (128) $ (84) |
New Accounting Guidance Pending
New Accounting Guidance Pending Adoption | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Guidance Pending Adoption [Abstract] | |
New Accounting Guidance Pending Adoption | 18. New Accounting Guidance Pending Adoption (All Registrants) Accounting for Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (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 se rvices 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 r etrospective transition method, beginning in annual reporting periods after December 15, 2017 and interim periods within those years. Public business entities may early adopt this guidance in annual reporting periods beginning after December 15, 2016. Th e Registrants expect to adopt this guidance effective January 1, 2018. 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 c ontinue 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 obligat ions 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 un derstand 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 ent ity’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 enti ties, 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 peri od 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 require d 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 fin ancial 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 e ntity 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 t hose 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 Statemen t 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 materi al 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 re quirement 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 requir ements 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 perm itted 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 that they 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 debt issuance costs associated with line of credit arrangements, the gu idance was subsequently updated to reflect a speech by the SEC which noted that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the debt issuance costs ratably over the term of the line of credit arrangement. 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 permi tted. The Registrants are assessing in which period they will adopt this 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 Accoun28
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 at a discount, which reflects a provision for u ncollectible 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 purc hase price paid and are classified as Level 2 in the fair value hierarchy. During the three and nine months ended September 30, 2015 , PPL Electric purchased $ 361 million and $ 968 million of accounts receivable from unaf filiated third parties . During the three and nine months ended September 30, 2014 , PPL Electric purchased $ 260 million and $ 874 million of accounts receivable from unaffiliated third parties and $ 77 million and $ 261 million from PPL EnergyPlus . PPL Electric’s purchases from PPL EnergyPlus for the n ine months ended September 30, 2015 were $ 146 million and include purchases through May 31, 2015, which is the period during which PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energ y, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. |
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 comp onents of an entity is disposed of other than by sale (for example, by abandonment or in a distribution to owners in a spinoff). As a result of t he spinoff on June 1, 2015, PPL Energy Supply ha s been reported as a discontinued operation under the new discontinued oper ations guidance. See Note 8 for additional information . |
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 at a discount, which reflects a provision for u ncollectible 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 purc hase price paid and are classified as Level 2 in the fair value hierarchy. During the three and nine months ended September 30, 2015 , PPL Electric purchased $ 361 million and $ 968 million of accounts receivable from unaf filiated third parties . During the three and nine months ended September 30, 2014 , PPL Electric purchased $ 260 million and $ 874 million of accounts receivable from unaffiliated third parties and $ 77 million and $ 261 million from PPL EnergyPlus . PPL Electric’s purchases from PPL EnergyPlus for the n ine months ended September 30, 2015 were $ 146 million and include purchases through May 31, 2015, which is the period during which PPL Electric and PPL EnergyPlus were affiliated entities. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energ y, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Transfers between levels are recognized at end-of-reporting-period values. |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Policies) | 9 Months Ended |
Sep. 30, 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. |
Segment and Related Informati31
Segment and Related Information (Tables) | 9 Months Ended |
Sep. 30, 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 September 30 are: Three Months Nine Months 2015 2014 2015 2014 Income Statement Data Revenues from external customers U.K. Regulated $ 552 $ 644 $ 1,836 $ 1,964 Kentucky Regulated 801 753 2,414 2,409 Pennsylvania Regulated 519 477 1,625 1,516 Corporate and Other 6 5 14 17 Total $ 1,878 $ 1,879 $ 5,889 $ 5,906 Net Income U.K. Regulated (a) $ 249 $ 295 $ 814 $ 688 Kentucky Regulated 111 82 267 247 Pennsylvania Regulated 55 57 191 194 Corporate and Other (b) (19) (24) (74) (100) Discontinued Operations (c) (3) 87 (915) 13 Total $ 393 $ 497 $ 283 $ 1,042 September 30, December 31, 2015 2014 Balance Sheet Data Assets U.K. Regulated $ 16,382 $ 16,005 Kentucky Regulated 14,043 13,062 Pennsylvania Regulated 8,305 7,785 Corporate and Other (d) 516 1,095 Discontinued Operations (c) 10,917 Total assets $ 39,246 $ 48,864 (a) Includes unrealized gains and losses from economic activity . See Note 14 for additional information. (b) 2015 includes transition costs related to the formation of the Talen Energy organization and to reconfigure the remaining PPL Services functions. See Note 8 for additional information. (c) See Note 8 for additional information. (d) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Computations | Reconciliations of the amounts of income and shares of PPL common stock (in thousands) f or the periods ended September 30 used in the EPS calculation are: Three Months Nine Months 2015 2014 2015 2014 Income (Numerator) Income from continuing operations after income taxes $ 396 $ 410 $ 1,198 $ 1,029 Less amounts allocated to participating securities 2 2 5 5 Income from continuing operations after income taxes available to PPL common shareowners - Basic 394 408 1,193 1,024 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 $ 394 $ 408 $ 1,193 $ 1,033 Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted $ (3) $ 87 $ (915) $ 13 Net income $ 393 $ 497 $ 283 $ 1,042 Less amounts allocated to participating securities 2 2 1 5 Net income available to PPL common shareowners - Basic 391 495 282 1,037 Plus interest charges (net of tax) related to Equity Units (a) 9 Net income available to PPL common shareowners - Diluted $ 391 $ 495 $ 282 $ 1,046 Shares of Common Stock (Denominator) Weighted-average shares - Basic EPS 670,763 664,432 668,731 649,561 Add incremental non-participating securities: Share-based payment awards 2,939 1,970 2,523 1,860 Equity Units (a) 14,080 Weighted-average shares - Diluted EPS 673,702 666,402 671,254 665,501 Basic EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.59 $ 0.61 $ 1.78 $ 1.58 Income (loss) from discontinued operations (net of income taxes) (0.01) 0.13 (1.36) 0.02 Net Income Available to PPL common shareowners $ 0.58 $ 0.74 $ 0.42 $ 1.60 Diluted EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.59 $ 0.61 $ 1.78 $ 1.55 Income (loss) from discontinued operations (net of income taxes) (0.01) 0.13 (1.36) 0.02 Net Income Available to PPL common shareowners $ 0.58 $ 0.74 $ 0.42 $ 1.57 (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 September 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands): Three Months Nine Months 2015 2014 2015 2014 Stock-based compensation plans (a) 1,368 210 3,805 2,228 DRIP 475 425 1,318 425 (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 September 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. Three Months Nine Months 2015 2014 2015 2014 Stock options 1,484 527 1,218 1,901 Performance units 49 Restricted stock units 41 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended September 30 are as follows. (PPL) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 189 $ 214 $ 571 $ 547 Increase (decrease) due to: State income taxes, net of federal income tax benefit 15 13 44 28 Valuation allowance adjustments (a) 3 8 49 Impact of lower U.K. income tax rates (40) (48) (138) (124) U.S. income tax on foreign earnings - net of foreign tax credit (b) 26 (1) 47 Federal and state tax reserve adjustments (c) (9) (21) Foreign income tax return adjustments (4) Amortization of investment tax credit (1) 1 (3) (3) Depreciation not normalized (1) (3) (4) (7) Intercompany interest on U.K. financing entities (4) (15) (4) Other (5) (5) (5) 1 Total increase (decrease) (45) (13) (139) (13) Total income taxes $ 144 $ 201 $ 432 $ 534 (a) As a result of the spinoff announceme nt, PPL recorded deferred income tax expense during the three and nine months ended September 30, 2014 to adjust valuation allowances on deferred tax assets primarily for state net operating loss carryforwards that were previously supported by the future earnings of PPL Energy Supply. See Note 8 for additional information on the spinoff . (b) During the three and nine months ended September 30, 201 5 , PPL recorded lower income tax expense due to a dec rease in taxable dividends . (c) During the three and nine months ended September 30, 2015, PPL recorded a $9 million tax benefit related to a planned amendment of a prior period tax return. During the nine months ended September 30 , 2015, PPL recorded a $12 million tax benefit to adjust the settled refund amount approved by the Joint Committee of Taxation for the open audit years 1998-2011 . |
Unrecognized Tax Benefits | Changes to unrecognized tax benefits for the periods ended September 30 are as follows. Three Months Nine Months 2015 2014 2015 2014 PPL Beginning of period $ 5 $ 21 $ 20 $ 22 Additions based on tax positions of prior years 1 Reductions based on tax positions of prior years (2) Settlements (15) End of period $ 5 $ 21 $ 5 $ 21 |
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 September 30 are as follows. (PPL Electric) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 32 $ 33 $ 112 $ 110 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 5 21 17 Depreciation not normalized (1) (2) (3) (5) Other (3) 1 (1) Total increase (decrease) 3 4 18 11 Total income taxes $ 35 $ 37 $ 130 $ 121 |
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 September 30 are as follows. (LKE) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 68 $ 51 $ 172 $ 153 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 6 18 16 Amortization of investment tax credit (1) (1) (2) (3) Valuation allowance adjustment (a) 8 Other (1) (1) (2) (1) Total increase (decrease) 5 4 22 12 Total income taxes $ 73 $ 55 $ 194 $ 165 (a) Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized. |
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 September 30 are as follows. (LG&E) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 33 $ 26 $ 83 $ 74 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 3 9 8 Other (1) (2) (1) (4) Total increase (decrease) 3 1 8 4 Total income taxes $ 36 $ 27 $ 91 $ 78 |
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 September 30 are as follows. (KU) Three Months Nine Months 2015 2014 2015 2014 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 41 $ 32 $ 106 $ 98 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 3 11 10 Other (1) (1) (2) (2) Total increase (decrease) 3 2 9 8 Total income taxes $ 44 $ 34 $ 115 $ 106 |
Utility Rate Regulation (Tables
Utility Rate Regulation (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Current Regulatory Assets: Environmental cost recovery $ 19 $ 5 Gas supply clause 1 15 Transmission service charge 7 6 $ 7 $ 6 Other 10 11 3 6 Total current regulatory assets (a) $ 37 $ 37 $ 10 $ 12 Noncurrent Regulatory Assets: Defined benefit plans (b) $ 734 $ 720 $ 411 $ 372 Taxes recoverable through future rates 323 316 323 316 Storm costs 101 124 34 46 Unamortized loss on debt 70 77 44 49 Interest rate swaps (c) 146 122 Accumulated cost of removal of utility plant 130 114 130 114 AROs 109 79 Other 14 10 Total noncurrent regulatory assets $ 1,627 $ 1,562 $ 942 $ 897 LKE LG&E KU September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 Current Regulatory Assets: Environmental cost recovery $ 19 $ 5 $ 10 $ 4 $ 9 $ 1 Gas supply clause 1 15 1 15 Fuel adjustment clause 4 2 2 Other 7 1 7 1 Total current regulatory assets $ 27 $ 25 $ 11 $ 21 $ 16 $ 4 Noncurrent Regulatory Assets: Defined benefit plans (b) $ 323 $ 348 $ 200 $ 215 $ 123 $ 133 Storm costs 67 78 37 43 30 35 Unamortized loss on debt 26 28 17 18 9 10 Interest rate swaps (c) 146 122 102 89 44 33 AROs 109 79 38 28 71 51 Plant retirement costs (e) 6 6 Other 8 10 2 4 6 6 Total noncurrent regulatory assets $ 685 $ 665 $ 396 $ 397 $ 289 $ 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 $ 41 $ 28 $ 41 $ 28 Demand side management 12 2 Gas supply clause 9 6 Transmission formula rate 61 42 61 42 Storm damage expense 13 3 13 3 Other 15 10 5 3 Total current regulatory liabilities $ 151 $ 91 $ 120 $ 76 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 695 $ 693 Coal contracts (d) 28 59 Power purchase agreement - OVEC (d) 86 92 Net deferred tax assets 23 26 Act 129 compliance rider 25 18 $ 25 $ 18 Defined benefit plans 22 16 Interest rate swaps 82 84 Other 1 4 Total noncurrent regulatory liabilities $ 962 $ 992 $ 25 $ 18 Current Regulatory Liabilities: Demand side management $ 12 $ 2 $ 6 $ 1 $ 6 $ 1 Gas supply clause 9 6 9 6 Fuel adjustment clause 8 8 Gas line tracker 3 3 Other 2 4 2 4 Total current regulatory liabilities $ 31 $ 15 $ 15 $ 10 $ 16 $ 5 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 695 $ 693 $ 304 $ 302 $ 391 $ 391 Coal contracts (d) 28 59 12 25 16 34 Power purchase agreement - OVEC (d) 86 92 59 63 27 29 Net deferred tax assets 23 26 23 24 2 Defined benefit plans 22 16 22 16 Interest rate swaps 82 84 41 42 41 42 Other 1 4 2 1 2 Total noncurrent regulatory liabilities $ 937 $ 974 $ 439 $ 458 $ 498 $ 516 (a) For PPL, these amounts are included in "Other current assets" on the Balance Sheets. (b) Included in 2015 is $ 4 million for PPL and LKE, $ 3 million for LG&E and $ 1 million for KU related to the deferred recovery of the difference between the pension cost calculated in accordance with LG&E and KU's pension accounting policy and pension cost using a 15 ye ar amortization period for actuarial gains and losses as provided in the June 30, 2015 rate case settlement. See Note 9 and “ Kentucky Activities - Rate Case Proceedings” below for additional information. (c) Amounts include net settlements related to forwa rd-starting interest rate swaps that were terminated in September 2015 and are included in "Cash Flows from Operating Activities" on the Statements of Cash Flows. See Note 14 for additional information. (d) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. (e) The June 30, 2015 rate case settlement provided for deferred recovery of costs associated with Green River's coal-fired generating unit retirements . These costs include inventory write-downs and separation benefits and will be amortized over three years. |
Financing Activities (Tables)
Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financing Activities [Line Items] | |
Credit Facilities in Place at Period End | The following credit f acilities were in place at: September 30, 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 plc Syndicated Credit Facility Dec. 2016 £ 210 £ 127 £ 83 £ 103 WPD (South West) Syndicated Credit Facility July 2020 245 245 WPD (East Midlands) Syndicated Credit Facility July 2020 300 139 161 64 WPD (West Midlands) Syndicated Credit Facility July 2020 300 300 Uncommitted Credit Facilities 65 £ 4 61 £ 5 Total U.K. Credit Facilities (a) £ 1,120 £ 266 £ 4 £ 850 £ 167 £ 5 U.S. PPL Capital Funding Syndicated Credit Facility July 2019 $ 300 $ 300 Syndicated Credit Facility Nov. 2018 300 300 Bilateral Credit Facility Mar. 2016 150 $ 20 130 $ 21 Total PPL Capital Funding Credit Facilities $ 750 $ 20 $ 730 $ 21 PPL Electric Syndicated Credit Facility July 2019 $ 300 $ 69 $ 231 $ 1 LKE Syndicated Credit Facility (b) Oct. 2018 $ 75 $ 75 $ $ 75 LG&E Syndicated Credit Facility July 2019 $ 500 $ 500 $ 264 KU Syndicated Credit Facility July 2019 $ 400 $ 400 $ 236 Letter of Credit Facility Oct. 2017 198 $ 198 198 Total KU Credit Facilities $ 598 $ 198 $ 400 $ 434 ( a ) WPD plc 's amounts borrowed at September 30, 2015 and December 31, 2014 were USD-denominated borrowings of $ 200 million and $ 161 million, which bore interest at 1.80% and 1.86% . WPD (East Midlands) amounts borrowed at September 30, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $ 214 million and $ 100 million, which bore interes t at 0.91% and 1.00% . At September 30, 2015 , the unused capacity under the U.K. credit facilities was $ 1.3 billion. (b ) LKE’s interest rates on outstanding borrowings at September 30, 2015 and December 31, 2014 were 1.45% and 1.67% . |
At-The-Market Stock Offering Program | For the period s ended September 30, 2015 , PPL issued the following: Three Months Nine Months Number of shares 435,800 857,500 Average share price $ 32.95 $ 33.33 Net proceeds 14 28 |
PPL Electric Utilities Corp [Member] | |
Financing Activities [Line Items] | |
Commercial paper | The fol lowing commercial paper programs were in place at: September 30, 2015 December 31, 2014 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Electric 0.41% $ 300 $ 68 $ 232 LG&E 350 350 0.42% $ 264 KU 350 350 0.49% 236 Total $ 1,000 $ 68 $ 932 $ 500 |
Louisville Gas And Electric Co [Member] | |
Financing Activities [Line Items] | |
Commercial paper | The fol lowing commercial paper programs were in place at: September 30, 2015 December 31, 2014 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Electric 0.41% $ 300 $ 68 $ 232 LG&E 350 350 0.42% $ 264 KU 350 350 0.49% 236 Total $ 1,000 $ 68 $ 932 $ 500 |
Kentucky Utilities Co [Member] | |
Financing Activities [Line Items] | |
Commercial paper | The fol lowing commercial paper programs were in place at: September 30, 2015 December 31, 2014 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Electric 0.41% $ 300 $ 68 $ 232 LG&E 350 350 0.42% $ 264 KU 350 350 0.49% 236 Total $ 1,000 $ 68 $ 932 $ 500 |
Acquisitions, Development and36
Acquisitions, Development and Divestures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions, Development and Divestitures [Line Items] | |
Components of Discontinued Operations | The following table summarizes PPL’s fair value analysis: Weighted Fair Value Approach Weighting (in billions) Talen Energy Market Value 50% $ 1.4 Income/Discounted Cash Flow 30% 1.1 Alternative Market (Comparable Company) 20% 0.7 Estimated Fair Value $ 3.2 Following are the components of Discontinued Operations in the Statements of Income for the periods ended September 30: Three Months Nine Months 2015 2014 2015 2014 Operating revenues $ 1,623 $ 1,427 $ 1,741 Operating expenses 1,429 1,328 1,593 Other Income (Expense) - net 8 (22) 6 Interest Expense (a) 47 150 145 Income (loss) before income taxes 155 (73) 9 Income tax expense (benefit) $ 3 68 (37) (4) Loss on spinoff (879) Income (Loss) from Discontinued Operations (net of income taxes) $ (3) $ 87 $ (915) $ 13 (a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized. The following major classes of assets and liabilities were distributed and r emoved from PPL's Balance Sheet on June 1 , 2015 . Additionally, the following major classes of assets and liabilities were reclassified to discontinued operations as of December 31, 2014 : Discontinued Distribution on Operations at June 1, December 31, 2015 2014 Cash and cash equivalents (a) $ 371 $ 352 Restricted cash and cash equivalents 156 176 Accounts receivable and unbilled revenues 325 504 Fuels, materials and supplies 415 455 Price risk management assets 784 1,079 Other current assets 65 34 Total Current Assets 2,116 2,600 Investments 999 980 PP&E, net 6,384 6,428 Goodwill 338 338 Other intangibles 260 257 Price risk management assets 244 239 Other noncurrent assets 78 75 Total Noncurrent Assets 8,303 8,317 Total assets $ 10,419 $ 10,917 Short-term debt and long-term debt due within one year $ 885 $ 1,165 Accounts payable 252 361 Price risk management liabilities 763 1,024 Other current liabilities 229 225 Total Current Liabilities 2,129 2,775 Long-term debt (excluding current portion) 1,932 1,683 Deferred income taxes 1,259 1,223 Price risk management liabilities 206 193 Accrued pension obligations 244 299 Asset retirement obligations 443 415 Other deferred credits and noncurrent liabilities 103 150 Total Noncurrent Liabilities 4,187 3,963 Total liabilities $ 6,316 $ 6,738 Adjustment for loss on spinoff 879 Net assets distributed $ 3,224 (a) The distribution of PPL Energy Supply ’s cash and cash equivalents at June 1, 2015 is included in "Net cash provided by (used in) financing activities - discontinu ed operations" on the Statement of Cash Flows for the nine months ended September 30, 2015 . |
Defined Benefits (Tables)
Defined Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Defined Benefits [Line Items] | |
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic def ined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended September 30 : Pension Benefits Three Months Nine Months U.S. U.K. U.S. U.K. 2015 2014 (c) 2015 2014 2015 (b) 2014 (c) 2015 2014 PPL Service cost $ 20 $ 24 $ 21 $ 18 $ 76 $ 73 $ 60 $ 54 Interest cost 42 56 80 90 152 168 236 268 Expected return on plan assets (56) (72) (133) (133) (201) (216) (393) (395) Amortization of: Prior service cost 1 5 5 15 Actuarial (gain) loss 18 8 39 34 65 22 118 100 Net periodic defined benefit costs (credits) prior to termination benefits 25 21 7 9 97 62 21 27 Termination benefits (a) (7) 13 Net periodic defined benefit costs (credits) $ 25 $ 14 $ 7 $ 9 $ 97 $ 75 $ 21 $ 27 (a) The three and nine months ended September 30, 2014 include termination benefits of $ (2) million and $ 2 million for PPL Electric . The remaining $ (5) million and $ 11 million relate to PPL Energy Supply and are reflected in d iscontinued o perations . (b) For the nine months ended September 30, 2015 , the total net periodic defined benefit cost include s $ 18 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff . (c) For the three and nine months ended September 30, 2014 , the total net periodic defined benefit cost include s $ 1 million and $ 29 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply. Other Postretirement Benefits Three Months Nine Months 2015 2014 2015 2014 PPL Service cost $ 2 $ 3 $ 9 $ 9 Interest cost 6 7 20 23 Expected return on plan assets (6) (6) (20) (19) Net periodic defined benefit costs (credits) $ 2 $ 4 $ 9 $ 13 LKE Service cost $ 1 $ 1 $ 4 $ 3 Interest cost 2 2 7 7 Expected return on plan assets (1) (1) (4) (4) Amortization of: Prior service cost 1 1 2 2 Net periodic defined benefit costs (credits) $ 3 $ 3 $ 9 $ 8 |
PPL Electric Utilities Corp [Member] | |
Defined Benefits [Line Items] | |
Allocation of Net Periodic Benefit Costs | For the periods ended September 30, 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 Nine Months 2015 2014 2015 2014 PPL Electric (a) $ 8 $ 3 $ 24 $ 18 LG&E 3 2 10 6 KU 4 2 13 6 (a) The three and nine months ended September 30, 2014 include $ (2) million and $ 2 million of termination benefits for PPL Electric related to a one-time voluntary retirement window offered to certain bargaining unit employees. |
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 def ined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended September 30 : Pension Benefits Three Months Nine Months 2015 2014 2015 2014 LKE Service cost $ 7 $ 5 $ 20 $ 16 Interest cost 17 17 51 50 Expected return on plan assets (22) (21) (66) (62) Amortization of: Prior service cost 1 1 5 3 Actuarial (gain) loss 9 4 26 10 Net periodic defined benefit costs (credits) $ 12 $ 6 $ 36 $ 17 LG&E Service cost $ 1 $ 1 Interest cost $ 3 $ 4 10 11 Expected return on plan assets (5) (4) (15) (14) Amortization of: Prior service cost 1 1 2 2 Actuarial (gain) loss 3 1 9 4 Net periodic defined benefit costs (credits) $ 2 $ 2 $ 7 $ 4 Other Postretirement Benefits Three Months Nine Months 2015 2014 2015 2014 PPL Service cost $ 2 $ 3 $ 9 $ 9 Interest cost 6 7 20 23 Expected return on plan assets (6) (6) (20) (19) Net periodic defined benefit costs (credits) $ 2 $ 4 $ 9 $ 13 LKE Service cost $ 1 $ 1 $ 4 $ 3 Interest cost 2 2 7 7 Expected return on plan assets (1) (1) (4) (4) Amortization of: Prior service cost 1 1 2 2 Net periodic defined benefit costs (credits) $ 3 $ 3 $ 9 $ 8 |
Louisville Gas And Electric Co [Member] | |
Defined Benefits [Line Items] | |
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic def ined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended September 30 : Pension Benefits Three Months Nine Months 2015 2014 2015 2014 LKE Service cost $ 7 $ 5 $ 20 $ 16 Interest cost 17 17 51 50 Expected return on plan assets (22) (21) (66) (62) Amortization of: Prior service cost 1 1 5 3 Actuarial (gain) loss 9 4 26 10 Net periodic defined benefit costs (credits) $ 12 $ 6 $ 36 $ 17 LG&E Service cost $ 1 $ 1 Interest cost $ 3 $ 4 10 11 Expected return on plan assets (5) (4) (15) (14) Amortization of: Prior service cost 1 1 2 2 Actuarial (gain) loss 3 1 9 4 Net periodic defined benefit costs (credits) $ 2 $ 2 $ 7 $ 4 |
Allocation of Net Periodic Benefit Costs | For the periods ended September 30, 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 Nine Months 2015 2014 2015 2014 PPL Electric (a) $ 8 $ 3 $ 24 $ 18 LG&E 3 2 10 6 KU 4 2 13 6 (a) The three and nine months ended September 30, 2014 include $ (2) million and $ 2 million of termination benefits for PPL Electric related to a one-time voluntary retirement window offered to certain bargaining unit employees. |
Kentucky Utilities Co [Member] | |
Defined Benefits [Line Items] | |
Allocation of Net Periodic Benefit Costs | For the periods ended September 30, 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 Nine Months 2015 2014 2015 2014 PPL Electric (a) $ 8 $ 3 $ 24 $ 18 LG&E 3 2 10 6 KU 4 2 13 6 (a) The three and nine months ended September 30, 2014 include $ (2) million and $ 2 million of termination benefits for PPL Electric related to a one-time voluntary retirement window offered to certain bargaining unit employees. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Guarantees | The table below details guarantees provided as of September 30, 2015 . Exposure at Expiration September 30, 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 116 (c) PPL Electric Guarantee of inventory value 36 (d) 2018 LKE Indemnification of lease termination and other divestitures 301 (e) 2021 - 2023 LG&E and KU LG&E and KU guarantee of shortfall related to OVEC (f) (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 agre ements 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 September 30, 2015 , WPD has recorded an estimated disc ounted 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 bee n estimated. (d ) 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 remainin g inventory that has not been used or sold. ( e ) LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LK E guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum expos ure of $ 200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, h as 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. In October 2014, LKE’s indemnitee filed a motio n for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. I n September 2015, a counterparty issued a demand letter to LKE’s indemnitee . LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and anticipates the indemnitee to dispute the deman d. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including a dditional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has in demnified 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. LKE cannot predict the ultimate outcomes of the indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded. (f ) 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 s hortfall 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) | 9 Months Ended |
Sep. 30, 2015 | |
PPL Electric Utilities Corp [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 |
LG And E And KU Energy LLC [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 |
Louisville Gas And Electric Co [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 |
Kentucky Utilities Co [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS expensed the following amounts for the periods ended September 30, and believe these amounts are reasonable, including amounts applied to accounts that are further distri buted between capital and expense. Three Months Nine Months 2015 2014 2015 2014 PPL Electric from PPL Services $ 35 $ 34 $ 90 $ 113 LKE from PPL Services 4 3 12 11 PPL Electric from PPL EU Services 12 44 LG&E from LKS 36 36 107 103 KU from LKS 43 43 127 120 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The assets and liabilities measured at fair value, excluding assets and liabilities of discontinued operations at December 31, 2014, were: September 30, 2015 December 31, 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 981 $ 981 $ 1,399 $ 1,399 Short-term investments 120 120 Restricted cash and cash equivalents (a) 36 36 31 31 Price risk management assets (b): Interest rate swaps 1 $ 1 Foreign currency contracts 169 169 130 $ 130 Cross-currency swaps 61 61 29 28 $ 1 Total price risk management assets 231 231 159 158 1 Auction rate securities (c) 1 $ 1 2 2 Total assets $ 1,249 $ 1,017 $ 231 $ 1 $ 1,711 $ 1,550 $ 158 $ 3 Liabilities Price risk management liabilities (b): Interest rate swaps $ 82 $ 82 $ 156 $ 156 Foreign currency contracts 7 7 2 2 Cross-currency swaps 3 3 Total price risk management liabilities $ 89 $ 89 $ 161 $ 161 PPL Electric Assets Cash and cash equivalents $ 26 $ 26 $ 214 $ 214 Restricted cash and cash equivalents (a) 2 2 3 3 Total assets $ 28 $ 28 $ 217 $ 217 LKE Assets Cash and cash equivalents $ 455 $ 455 $ 21 $ 21 Cash collateral posted to counterparties (d) 10 10 21 21 Total assets $ 465 $ 465 $ 42 $ 42 Liabilities Price risk management liabilities: Interest rate swaps $ 50 $ 50 $ 114 $ 114 Total price risk management liabilities $ 50 $ 50 $ 114 $ 114 LG&E Assets Cash and cash equivalents $ 180 $ 180 $ 10 $ 10 Cash collateral posted to counterparties (d) 10 10 21 21 Total assets $ 190 $ 190 $ 31 $ 31 Liabilities Price risk management liabilities: Interest rate swaps $ 50 $ 50 $ 81 $ 81 Total price risk management liabilities $ 50 $ 50 $ 81 $ 81 KU Assets Cash and cash equivalents $ 275 $ 275 $ 11 $ 11 Total assets $ 275 $ 275 $ 11 $ 11 Liabilities Price risk management liabilities: Interest rate swaps $ 33 $ 33 Total price risk management liabilities $ 33 $ 33 (a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. (b) Included in “Other current assets”, “Other current liabilities”, “Other noncurrent assets” and “Other deferred credits and noncurrent liabilities” on the Balance Sheets. (c) Included in "Other noncurrent assets" on the Balance Sheets. ( d ) Included in "Other noncurrent assets" on the Balance Sheets. R epresent s cash collateral posted to offset the exposure with co unterparties related to certain interest rate swaps under master netting arrangements that are not offset. |
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, excluding long-term debt of discontinued operations at December 31, 2014. September 30, 2015 December 31, 2014 Carrying Carrying Amount Fair Value Amount Fair Value PPL $ 19,205 $ 21,184 $ 18,173 $ 20,466 PPL Electric 2,603 2,882 2,602 2,990 LKE 5,617 5,927 4,567 4,946 LG&E 1,903 1,978 1,353 1,455 KU 2,591 2,763 2,091 2,313 |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments And Hedging Activities [Line Items] | |
Fair Value and Balance Sheet Location of Derivative Instruments | The following table present s th e fair value and location of derivative instruments recorded on the Balance Shee ts, excluding derivative instruments of discontinued operatio ns . September 30, 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) $ 1 $ 31 $ 5 $ 94 $ 5 Cross-currency swaps (b) 26 3 Foreign currency contracts 19 $ 76 6 $ 12 $ 67 Total current 46 31 76 11 12 97 67 5 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps (b) 1 45 14 43 Cross-currency swaps (b) 35 29 Foreign currency contracts 74 1 5 46 2 Total noncurrent 35 1 74 46 34 14 46 45 Total derivatives $ 81 $ 32 $ 150 $ 57 $ 46 $ 111 $ 113 $ 50 (a) Included in "Other current assets", "Other current liabilities", "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the B alance S heets . (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 periods ended September 30, 2015 . Three Months Nine Months 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 Three Months Nine Months on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (27) $ (29) Interest expense $ (2) $ (9) Discontinued operations $ (77) Cross-currency swaps (3) 33 Interest expense (1) 1 Other income (expense) - net (10) 22 Commodity contracts Discontinued operations 13 7 Total $ (30) $ 4 $ (13) $ 27 $ (70) Net Investment Hedges: Foreign currency contracts $ 7 $ 6 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative Three Months Nine Months Foreign currency contracts Other income (expense) - net $ 78 $ 64 Interest rate swaps Interest expense (2) (6) Total $ 76 $ 58 Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (5) $ (2) Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (42) $ (22) The following tables present the pre-tax effect of derivative instruments recognized in income , OCI, or regulatory assets and regulatory liabilitie s for the periods ended September 30, 2014 . Three Months Nine Months 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 Three Months Nine Months on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (5) $ (65) Interest expense $ (5) $ (14) $ 2 Cross-currency swaps (2) (18) Interest expense 1 Other income (expense) - net 12 (17) Commodity contracts Discontinued operations 8 30 Total $ (7) $ (83) $ 15 $ $ 2 Net Investment Hedges: Foreign currency contracts $ 25 $ 7 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative Three Months Nine Months Foreign currency contracts Other income (expense) - net $ 134 $ 38 Interest rate swaps Interest expense (2) (6) Total $ 132 $ 32 Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (6) Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (4) $ (4) Regulatory liabilities - noncurrent $ 6 $ 6 |
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 September 30, 2015 Treasury Derivatives PPL $ 231 $ 33 $ 198 $ 89 $ 33 $ 10 $ 46 LKE 50 10 40 LG&E 50 10 40 December 31, 2014 Treasury Derivatives PPL $ 159 $ 65 $ 94 $ 161 $ 65 $ 21 $ 75 LKE 114 20 94 LG&E 81 20 61 KU 33 33 |
Credit Risk-Related Contingent Features | At September 30, 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 $ 32 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 10 10 10 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 22 20 20 (a) Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
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. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 66 (a) Represents the location on the Balance Sheets . (L KE and LG&E ) The following table present s th e fair value and the location on the Balance Sheets of derivative s not designated as hedging instruments . September 30, 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 45 43 Total noncurrent 45 43 Total derivatives $ 50 $ 48 (a) Represents the location on the Balance Sheet s . |
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following table present s the pre-tax effect of deriva tive instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (42) $ (22) The following table present s the pre-tax effect of deriva tive instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (4) $ (4) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 6 $ 6 The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30, 2015 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (5) $ (2) The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30 , 2014 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (6) |
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 September 30, 2015 Treasury Derivatives PPL $ 231 $ 33 $ 198 $ 89 $ 33 $ 10 $ 46 LKE 50 10 40 LG&E 50 10 40 December 31, 2014 Treasury Derivatives PPL $ 159 $ 65 $ 94 $ 161 $ 65 $ 21 $ 75 LKE 114 20 94 LG&E 81 20 61 KU 33 33 |
Credit Risk-Related Contingent Features | At September 30, 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 $ 32 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 10 10 10 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 22 20 20 (a) Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
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. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 33 (a) Represents the location on the Balance Sheets. (L KE and LG&E ) The following table present s th e fair value and the location on the Balance Sheets of derivative s not designated as hedging instruments . September 30, 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 45 43 Total noncurrent 45 43 Total derivatives $ 50 $ 48 (a) Represents the location on the Balance Sheet s . |
Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet | The following table present s the pre-tax effect of derivativ e instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (21) $ (11) The following table present s the pre-tax effect of derivativ e instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (2) $ (2) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 3 $ 3 The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30, 2015 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (5) $ (2) The following tables present the pre-tax effect of derivative s not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended September 30 , 2014 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives Three Months Nine Months Interest rate swaps Interest expense $ (2) $ (6) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (6) |
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 September 30, 2015 Treasury Derivatives PPL $ 231 $ 33 $ 198 $ 89 $ 33 $ 10 $ 46 LKE 50 10 40 LG&E 50 10 40 December 31, 2014 Treasury Derivatives PPL $ 159 $ 65 $ 94 $ 161 $ 65 $ 21 $ 75 LKE 114 20 94 LG&E 81 20 61 KU 33 33 |
Credit Risk-Related Contingent Features | At September 30, 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 $ 32 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 10 10 10 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 22 20 20 (a) Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
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. September 30, 2015 December 31, 2014 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 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 present s the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended September 30, 2015 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (21) $ (11) The following table present s the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets and liabilities for the periods ended September 30 , 2014 . Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory assets - noncurrent $ (2) $ (2) Derivative Instruments Location of Gain (Loss) Three Months Nine Months Interest rate swaps Regulatory liabilities - noncurrent $ 3 $ 3 |
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 September 30, 2015 Treasury Derivatives PPL $ 231 $ 33 $ 198 $ 89 $ 33 $ 10 $ 46 LKE 50 10 40 LG&E 50 10 40 December 31, 2014 Treasury Derivatives PPL $ 159 $ 65 $ 94 $ 161 $ 65 $ 21 $ 75 LKE 114 20 94 LG&E 81 20 61 KU 33 33 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 |
LG And E And KU Energy LLC [Member] | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 |
Louisville Gas And Electric Co [Member] | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 |
Kentucky Utilities Co [Member] | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligation Roll Forward | 16. Asset Retirement Obligations (PPL, LKE, LG&E and KU) The changes in the carrying amounts of AROs were as follows. PPL LKE LG&E KU Balance at December 31, 2014 $ 336 $ 285 $ 74 $ 211 Accretion 14 13 4 9 Changes in estimated cash flow or settlement date 221 221 83 138 Effect of foreign currency exchange rates (1) Obligations settled (5) (5) (4) (1) Balance at September 30, 2015 $ 565 $ 514 $ 157 $ 357 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Accumulated Other Comprehensive Income (Loss) | The after-tax changes in AOCI by component for the periods ended September 30 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 PPL June 30, 2015 $ (435) $ 2 $ (3) $ (1,849) $ 1 $ (2,284) Amounts arising during the period 52 (19) 33 Reclassifications from AOCI 10 35 45 Net OCI during the period 52 (9) 35 78 September 30, 2015 $ (383) $ (7) $ (3) $ (1,814) $ 1 $ (2,206) December 31, 2014 $ (286) $ 202 $ 20 $ 1 $ 3 $ (2,215) $ 1 $ (2,274) Amounts arising during the period (97) 7 8 (6) 52 (36) Reclassifications from AOCI (2) 20 (1) 111 128 Net OCI during the period (97) 5 28 (1) (6) 163 92 Distribution of PPL Energy Supply (Note 8) (207) (55) 238 (24) September 30, 2015 $ (383) $ $ (7) $ $ (3) $ (1,814) $ 1 $ (2,206) June 30, 2014 $ 117 $ 190 $ 61 $ 1 $ (4) $ (1,764) $ 1 $ (1,398) Amounts arising during the period (48) (1) (5) (1) (55) Reclassifications from AOCI (3) (12) 1 29 15 Net OCI during the period (48) (4) (17) 1 28 (40) September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) December 31, 2013 $ (11) $ 173 $ 94 $ 1 $ (6) $ (1,817) $ 1 $ (1,565) Amounts arising during the period 80 18 (52) (3) 43 Reclassifications from AOCI (5) 2 3 84 84 Net OCI during the period 80 13 (50) 3 81 127 September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) LKE June 30, 2015 $ (1) $ (7) $ (44) $ (52) Reclassifications from AOCI 1 1 Net OCI during the period 1 1 September 30, 2015 $ (1) $ (7) $ (43) $ (51) December 31, 2014 $ (8) $ (37) $ (45) Amounts arising during the period (8) (8) Reclassifications from AOCI $ (1) 1 2 2 Net OCI during the period (1) 1 (6) (6) September 30, 2015 $ (1) $ (7) $ (43) $ (51) June 30, 2014 $ (2) $ 12 $ 10 Net OCI during the period September 30, 2014 $ (2) $ 12 $ 10 December 31, 2013 $ 1 $ (2) $ 14 $ 13 Amounts arising during the period (2) (2) Reclassifications from AOCI (1) (1) Net OCI during the period (1) (2) (3) September 30, 2014 $ $ (2) $ 12 $ 10 |
Reclassification out of Other Comprehensive Income (Loss) | (PPL) The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the periods ended September 30 . Three Months Nine Months Affected Line Item on the Details about AOCI 2015 2014 2015 2014 Statements of Income Available-for-sale securities $ 7 $ 4 $ 11 Other Income (Expense) - net Total Pre-tax 7 4 11 Income Taxes (4) (2) (6) Total After-tax 3 2 5 Qualifying derivatives Interest rate swaps $ (2) (5) (9) (12) Interest Expense (77) Discontinued operations Cross-currency swaps (10) 12 22 (17) Other Income (Expense) - net (1) 1 1 Interest Expense Energy commodities 8 20 30 Discontinued operations Total Pre-tax (13) 15 (43) 2 Income Taxes 3 (3) 23 (4) Total After-tax (10) 12 (20) (2) 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) (6) Net actuarial loss (45) (38) (146) (110) Total Pre-tax (45) (40) (146) (116) Income Taxes 10 10 35 29 Total After-tax (35) (30) (111) (87) Total reclassifications during the period $ (45) $ (15) $ (128) $ (84) |
LG And E And KU Energy LLC [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Accumulated Other Comprehensive Income (Loss) | The after-tax changes in AOCI by component for the periods ended September 30 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 PPL June 30, 2015 $ (435) $ 2 $ (3) $ (1,849) $ 1 $ (2,284) Amounts arising during the period 52 (19) 33 Reclassifications from AOCI 10 35 45 Net OCI during the period 52 (9) 35 78 September 30, 2015 $ (383) $ (7) $ (3) $ (1,814) $ 1 $ (2,206) December 31, 2014 $ (286) $ 202 $ 20 $ 1 $ 3 $ (2,215) $ 1 $ (2,274) Amounts arising during the period (97) 7 8 (6) 52 (36) Reclassifications from AOCI (2) 20 (1) 111 128 Net OCI during the period (97) 5 28 (1) (6) 163 92 Distribution of PPL Energy Supply (Note 8) (207) (55) 238 (24) September 30, 2015 $ (383) $ $ (7) $ $ (3) $ (1,814) $ 1 $ (2,206) June 30, 2014 $ 117 $ 190 $ 61 $ 1 $ (4) $ (1,764) $ 1 $ (1,398) Amounts arising during the period (48) (1) (5) (1) (55) Reclassifications from AOCI (3) (12) 1 29 15 Net OCI during the period (48) (4) (17) 1 28 (40) September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) December 31, 2013 $ (11) $ 173 $ 94 $ 1 $ (6) $ (1,817) $ 1 $ (1,565) Amounts arising during the period 80 18 (52) (3) 43 Reclassifications from AOCI (5) 2 3 84 84 Net OCI during the period 80 13 (50) 3 81 127 September 30, 2014 $ 69 $ 186 $ 44 $ 1 $ (3) $ (1,736) $ 1 $ (1,438) LKE June 30, 2015 $ (1) $ (7) $ (44) $ (52) Reclassifications from AOCI 1 1 Net OCI during the period 1 1 September 30, 2015 $ (1) $ (7) $ (43) $ (51) December 31, 2014 $ (8) $ (37) $ (45) Amounts arising during the period (8) (8) Reclassifications from AOCI $ (1) 1 2 2 Net OCI during the period (1) 1 (6) (6) September 30, 2015 $ (1) $ (7) $ (43) $ (51) June 30, 2014 $ (2) $ 12 $ 10 Net OCI during the period September 30, 2014 $ (2) $ 12 $ 10 December 31, 2013 $ 1 $ (2) $ 14 $ 13 Amounts arising during the period (2) (2) Reclassifications from AOCI (1) (1) Net OCI during the period (1) (2) (3) September 30, 2014 $ $ (2) $ 12 $ 10 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Unaffiliated Third Party Entity [Member] | |||||
Accounts Receivable (Numeric) [Abstract] | |||||
Purchases of accounts receivable | $ 361 | $ 260 | $ 968 | $ 874 | |
PPL Electric Utilities Corp [Member] | Unaffiliated Third Party Entity [Member] | |||||
Accounts Receivable (Numeric) [Abstract] | |||||
Purchases of accounts receivable | 361 | 260 | 968 | 874 | |
PPL Electric Utilities Corp [Member] | PPL EnergyPlus [Member] | |||||
Accounts Receivable (Numeric) [Abstract] | |||||
Purchases of accounts receivable | $ 0 | $ 77 | $ 146 | $ 261 | |
WPD [Member] | |||||
Depreciation (Numeric) [Abstract] | |||||
Weighted average useful life | 69 years | 69 years | |||
Decrease in depreciation expense from change in weighted average useful lives | $ 22 | $ 64 | |||
Decrease in depreciation expense from change in weighted average useful lives, after-tax | $ 17 | $ 50 | |||
Decrease in depreciation expense from change in weighted average useful lives, per share | $ 0.03 | $ 0.08 | |||
WPD [Member] | Previously Reported [Member] | |||||
Depreciation (Numeric) [Abstract] | |||||
Weighted average useful life | 55 years |
Segment and Related Informati45
Segment and Related Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||||
Income Statement Data | |||||||||
Revenues | $ 1,878 | $ 1,879 | $ 5,889 | $ 5,906 | |||||
Net Income | 393 | 497 | 283 | 1,042 | |||||
Balance Sheet Data | |||||||||
Assets | 39,246 | 39,246 | $ 48,864 | ||||||
United Kingdom Regulated [Member] | |||||||||
Income Statement Data | |||||||||
Revenues | 552 | 644 | 1,836 | 1,964 | |||||
Net Income | [1] | 249 | 295 | 814 | 688 | ||||
Balance Sheet Data | |||||||||
Assets | 16,382 | 16,382 | 16,005 | ||||||
Kentucky Regulated [Member] | |||||||||
Income Statement Data | |||||||||
Revenues | 801 | 753 | 2,414 | 2,409 | |||||
Net Income | 111 | 82 | 267 | 247 | |||||
Balance Sheet Data | |||||||||
Assets | 14,043 | 14,043 | 13,062 | ||||||
Pennsylvania Regulated [Member] | |||||||||
Income Statement Data | |||||||||
Revenues | 519 | 477 | 1,625 | 1,516 | |||||
Net Income | 55 | 57 | 191 | 194 | |||||
Balance Sheet Data | |||||||||
Assets | 8,305 | 8,305 | 7,785 | ||||||
Corporate And Other [Member] | |||||||||
Income Statement Data | |||||||||
Revenues | 6 | 5 | 14 | 17 | |||||
Net Income | (19) | [2] | (24) | (74) | [2] | (100) | |||
Balance Sheet Data | |||||||||
Assets | [3] | 516 | 516 | 1,095 | |||||
Discontinued Operations [Member] | |||||||||
Income Statement Data | |||||||||
Net Income | [4] | (3) | $ 87 | (915) | $ 13 | ||||
Balance Sheet Data | |||||||||
Assets | $ 0 | $ 0 | $ 10,917 | [4] | |||||
[1] | Includes unrealized gains and losses from economic activity . See Note 14 for additional information. | ||||||||
[2] | 2015 includes transition costs related to the formation of the Talen Energy organization and to reconfigure the remaining PPL Services functions. See Note 8 for additional information. | ||||||||
[3] | Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. | ||||||||
[4] | See Note 8 for additional information. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Income (Numerator) | ||||||
Income from continuing operations after income taxes | $ 396 | $ 410 | $ 1,198 | $ 1,029 | ||
Less amounts allocated to participating securities | 2 | 2 | 5 | 5 | ||
Income from continuing operations after income taxes available to PPL shareowners - Basic | 394 | 408 | 1,193 | 1,024 | ||
Plus interest charges (net of tax) related to Equity Units | 0 | 0 | 0 | 9 | [1] | |
Income from continuing operations after income taxes available to PPL shareowners - Diluted | 394 | 408 | 1,193 | 1,033 | ||
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted | (3) | 87 | (915) | 13 | ||
Net income | 393 | 497 | 283 | 1,042 | ||
Less amounts allocated to participating securities | 2 | 2 | 1 | 5 | ||
Net income available to PPL common shareowners - Basic | 391 | 495 | 282 | 1,037 | ||
Plus interest charges (net of tax) related to Equity Units | 0 | 0 | 0 | 9 | [1] | |
Net income available to PPL common shareowners - Diluted | $ 391 | $ 495 | $ 282 | $ 1,046 | ||
Shares of Common Stock (Denominator) | ||||||
Weighted-average shares - Basic EPS (in shares) | 670,763 | 664,432 | 668,731 | 649,561 | ||
Add incremental non-participating securities: | ||||||
Share-based payment awards (in shares) | 2,939 | 1,970 | 2,523 | 1,860 | ||
Equity Units (in shares) | 0 | 0 | 0 | 14,080 | [1] | |
Weighted-average shares - Diluted EPS (in shares) | 673,702 | 666,402 | 671,254 | 665,501 | ||
Basic EPS - Available to PPL common shareowners: | ||||||
Income from continuing operations after income taxes (in dollars per share) | $ 0.59 | $ 0.61 | $ 1.78 | $ 1.58 | ||
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | (0.01) | 0.13 | (1.36) | 0.02 | ||
Net Income Available to PPL common shareowners (in dollars per share) | 0.58 | 0.74 | 0.42 | 1.6 | ||
Diluted EPS - Available to PPL common shareowners: | ||||||
Income from continuing operations after income taxes (in dollars per share) | 0.59 | 0.61 | 1.78 | 1.55 | ||
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | (0.01) | 0.13 | (1.36) | 0.02 | ||
Net Income Available to PPL common shareowners (in dollars per share) | $ 0.58 | $ 0.74 | $ 0.42 | $ 1.57 | ||
Shares Issued (Numeric) [Abstract] | ||||||
Common stock issued under stock-based compensation plans (in shares) | [2] | 1,368 | 210 | 3,805 | 2,228 | |
Common stock issued under DRIP (in shares) | 475 | 425 | 1,318 | 425 | ||
Stock Options [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares excluded from the computations of diluted EPS | 1,484 | 527 | 1,218 | 1,901 | ||
Performance Units [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares excluded from the computations of diluted EPS | 0 | 0 | 49 | 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 | 0 | 0 | 41 | ||
[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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||||
Reconciliation of Income Tax Expense | ||||||||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 189 | $ 214 | $ 571 | $ 547 | ||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Increase (decrease) due to: | ||||||||
State income taxes, net of federal income tax benefit | $ 15 | $ 13 | $ 44 | $ 28 | ||||
Valuation allowance adjustments | 0 | 3 | [1] | 8 | 49 | [1] | ||
Impact of lower U.K. income tax rates | (40) | (48) | (138) | (124) | ||||
U.S. income tax on foreign earnings - net of foreign tax credit | 0 | 26 | [2] | (1) | 47 | [2] | ||
Federal and state tax reserve adjustments | (9) | [3] | 0 | (21) | [3] | 0 | ||
Amortization of investment tax credit | (1) | 1 | (3) | (3) | ||||
Depreciation not normalized | (1) | (3) | (4) | (7) | ||||
Intercompany interest on U.K. financing entities | (4) | 0 | (15) | (4) | ||||
Foreign income tax return adjustments | 0 | 0 | (4) | 0 | ||||
Other | (5) | (5) | (5) | 1 | ||||
Total increase (decrease) | (45) | (13) | (139) | (13) | ||||
Total income tax from continuing operations | 144 | 201 | 432 | 534 | ||||
Benefit related to planned amendment of prior period tax return | 9 | 9 | ||||||
Income Tax Other Numeric [Abstract] | ||||||||
Refund for open audits for the years 1998-2011, subject to a final determination of interest on the refund | 24 | |||||||
Refund reflected in continuing operations for open audits for the years 1998-2011, subject to a final determination of interest on the refund | 12 | |||||||
PPL Electric Utilities Corp [Member] | ||||||||
Reconciliation of Income Tax Expense | ||||||||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 32 | $ 33 | $ 112 | $ 110 | ||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Increase (decrease) due to: | ||||||||
State income taxes, net of federal income tax benefit | $ 7 | $ 5 | $ 21 | $ 17 | ||||
Depreciation not normalized | (1) | (2) | (3) | (5) | ||||
Other | (3) | 1 | 0 | (1) | ||||
Total increase (decrease) | 3 | 4 | 18 | 11 | ||||
Total income tax from continuing operations | 35 | 37 | 130 | 121 | ||||
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 | $ 51 | $ 172 | $ 153 | ||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Increase (decrease) due to: | ||||||||
State income taxes, net of federal income tax benefit | $ 7 | $ 6 | $ 18 | $ 16 | ||||
Valuation allowance adjustments | 0 | 0 | 8 | [4] | 0 | |||
Amortization of investment tax credit | (1) | (1) | (2) | (3) | ||||
Other | (1) | (1) | (2) | (1) | ||||
Total increase (decrease) | 5 | 4 | 22 | 12 | ||||
Total income tax from continuing operations | 73 | 55 | 194 | 165 | ||||
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% | $ 33 | $ 26 | $ 83 | $ 74 | ||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Increase (decrease) due to: | ||||||||
State income taxes, net of federal income tax benefit | $ 4 | $ 3 | $ 9 | $ 8 | ||||
Other | (1) | (2) | (1) | (4) | ||||
Total increase (decrease) | 3 | 1 | 8 | 4 | ||||
Total income tax from continuing operations | 36 | 27 | 91 | 78 | ||||
Kentucky Utilities Co [Member] | ||||||||
Reconciliation of Income Tax Expense | ||||||||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 41 | $ 32 | $ 106 | $ 98 | ||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Increase (decrease) due to: | ||||||||
State income taxes, net of federal income tax benefit | $ 4 | $ 3 | $ 11 | $ 10 | ||||
Other | (1) | (1) | (2) | (2) | ||||
Total increase (decrease) | 3 | 2 | 9 | 8 | ||||
Total income tax from continuing operations | $ 44 | $ 34 | $ 115 | $ 106 | ||||
[1] | As a result of the spinoff announceme nt, PPL recorded deferred income tax expense during the three and nine months ended September 30, 2014 to adjust valuation allowances on deferred tax assets primarily for state net operating loss carryforwards that were previously supported by the future earnings of PPL Energy Supply. See Note 8 for additional information on the spinoff . | |||||||
[2] | During the three and nine months ended September 30, 201 5 , PPL recorded lower income tax expense due to a dec rease in taxable dividends . | |||||||
[3] | During the three and nine months ended September 30, 2015, PPL recorded a $9 million tax benefit related to a planned amendment of a prior period tax return. During the nine months ended September 30 , 2015, PPL recorded a $12 million tax benefit to adjust the settled refund amount approved by the Joint Committee of Taxation for the open audit years 1998-2011 . | |||||||
[4] | Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized. |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits and Tax Litigation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unrecognized Tax Benefits [Abstract] | ||||
Beginning of period | $ 5 | $ 21 | $ 20 | $ 22 |
Additions based on tax positions of prior years | 0 | 0 | 0 | 1 |
Reductions based on tax positions of prior years | 0 | 0 | 0 | (2) |
Settlements | 0 | 0 | (15) | 0 |
End of period | $ 5 | $ 21 | $ 5 | $ 21 |
Utility Rate Regulation (Regula
Utility Rate Regulation (Regulatory Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | ||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | [1] | $ 37 | $ 37 | |
Noncurrent regulatory assets | 1,627 | 1,562 | ||
Deferred recovery of the difference between pension costs calculated with pension accounting policy and pension cost using 15 year amortization period | 4 | |||
Environmental Cost Recovery [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 19 | 5 | ||
Gas Supply Clause [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 1 | 15 | ||
Transmission Service Charge [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 7 | 6 | ||
Defined Benefit Plans [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 734 | [2] | 720 | |
Taxes Recoverable Through Future Rates [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 323 | 316 | ||
Storm Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 101 | 124 | ||
Unamortized Loss On Debt [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 70 | 77 | ||
Interest Rate Swaps [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 146 | [3] | 122 | |
Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 130 | 114 | ||
Asset Retirement Obligations [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 109 | 79 | ||
Other Regulatory Assets [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 10 | 11 | ||
Noncurrent regulatory assets | 14 | 10 | ||
PPL Electric Utilities Corp [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 10 | 12 | ||
Noncurrent regulatory assets | 942 | 897 | ||
PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 7 | 6 | ||
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 411 | 372 | ||
PPL Electric Utilities Corp [Member] | Taxes Recoverable Through Future Rates [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 323 | 316 | ||
PPL Electric Utilities Corp [Member] | Storm Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 34 | 46 | ||
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 44 | 49 | ||
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 130 | 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 | 27 | 25 | ||
Noncurrent regulatory assets | 685 | 665 | ||
Deferred recovery of the difference between pension costs calculated with pension accounting policy and pension cost using 15 year amortization period | 4 | |||
LG And E And KU Energy LLC [Member] | Environmental Cost Recovery [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 19 | 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 | 0 | 4 | ||
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 323 | [2] | 348 | |
LG And E And KU Energy LLC [Member] | Storm Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 67 | 78 | ||
LG And E And KU Energy LLC [Member] | Unamortized Loss On Debt [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 26 | 28 | ||
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 146 | [3] | 122 | |
LG And E And KU Energy LLC [Member] | Asset Retirement Obligations [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 109 | 79 | ||
LG And E And KU Energy LLC [Member] | Plant Retirement Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 6 | [4] | 0 | |
LG And E And KU Energy LLC [Member] | Other Regulatory Assets [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 7 | 1 | ||
Noncurrent regulatory assets | 8 | 10 | ||
Louisville Gas And Electric Co [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 11 | 21 | ||
Noncurrent regulatory assets | 396 | 397 | ||
Deferred recovery of the difference between pension costs calculated with pension accounting policy and pension cost using 15 year amortization period | 3 | |||
Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 10 | 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 | 0 | 2 | ||
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 200 | [2] | 215 | |
Louisville Gas And Electric Co [Member] | Storm Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 37 | 43 | ||
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 17 | 18 | ||
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 102 | [3] | 89 | |
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 38 | 28 | ||
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 2 | 4 | ||
Kentucky Utilities Co [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 16 | 4 | ||
Noncurrent regulatory assets | 289 | 268 | ||
Deferred recovery of the difference between pension costs calculated with pension accounting policy and pension cost using 15 year amortization period | 1 | |||
Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 9 | 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 | 123 | [2] | 133 | |
Kentucky Utilities Co [Member] | Storm Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 30 | 35 | ||
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 9 | 10 | ||
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 44 | [3] | 33 | |
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 71 | 51 | ||
Kentucky Utilities Co [Member] | Plant Retirement Costs [Member] | ||||
Regulatory Assets [Line Items] | ||||
Noncurrent regulatory assets | 6 | [4] | 0 | |
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member] | ||||
Regulatory Assets [Line Items] | ||||
Current regulatory assets | 7 | 1 | ||
Noncurrent regulatory assets | $ 6 | $ 6 | ||
[1] | For PPL, these amounts are included in "Other current assets" on the Balance Sheets. | |||
[2] | Included in 2015 is $ 4 million for PPL and LKE, $ 3 million for LG&E and $ 1 million for KU related to the deferred recovery of the difference between the pension cost calculated in accordance with LG&E and KU's pension accounting policy and pension cost using a 15 ye ar amortization period for actuarial gains and losses as provided in the June 30, 2015 rate case settlement. See Note 9 and “ Kentucky Activities - Rate Case Proceedings” below for additional information. | |||
[3] | Amounts include net settlements related to forwa rd-starting interest rate swaps that were terminated in September 2015 and are included in "Cash Flows from Operating Activities" on the Statements of Cash Flows. See Note 14 for additional information. | |||
[4] | The June 30, 2015 rate case settlement provided for deferred recovery of costs associated with Green River's coal-fired generating unit retirements . These costs include inventory write-downs and separation benefits and will be amortized over three years. |
Utility Rate Regulation (Regu50
Utility Rate Regulation (Regulatory Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | $ 151 | $ 91 | |
Noncurrent regulatory liabilities | 962 | 992 | |
Generation Supply Charge [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 41 | 28 | |
Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 12 | 2 | |
Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 9 | 6 | |
Transmission Formula Rate [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 61 | 42 | |
Storm Damage Expense [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 13 | 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 | [1] | 28 | 59 |
Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 86 | 92 |
Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 23 | 26 | |
Act 129 Compliance Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 25 | 18 | |
Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 16 | |
Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 82 | 84 | |
Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 15 | 10 | |
Noncurrent regulatory liabilities | 1 | 4 | |
PPL Electric Utilities Corp [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 120 | 76 | |
Noncurrent regulatory liabilities | 25 | 18 | |
PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 41 | 28 | |
PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 61 | 42 | |
PPL Electric Utilities Corp [Member] | Storm Damage Expense [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 13 | 3 | |
PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 25 | 18 | |
PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 5 | 3 | |
LG And E And KU Energy LLC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 31 | 15 | |
Noncurrent regulatory liabilities | 937 | 974 | |
LG And E And KU Energy LLC [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 12 | 2 | |
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 9 | 6 | |
LG And E And KU Energy LLC [Member] | Gas Line Tracker [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 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 | [1] | 28 | 59 |
LG And E And KU Energy LLC [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 86 | 92 |
LG And E And KU Energy LLC [Member] | Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 23 | 26 | |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 16 | |
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 82 | 84 | |
LG And E And KU Energy LLC [Member] | Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 8 | 0 | |
LG And E And KU Energy LLC [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 2 | 4 | |
Noncurrent regulatory liabilities | 1 | 4 | |
Louisville Gas And Electric Co [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 15 | 10 | |
Noncurrent regulatory liabilities | 439 | 458 | |
Louisville Gas And Electric Co [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 6 | 1 | |
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 9 | 6 | |
Louisville Gas And Electric Co [Member] | Gas Line Tracker [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 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 | [1] | 12 | 25 |
Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 59 | 63 |
Louisville Gas And Electric Co [Member] | Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 23 | 24 | |
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 41 | 42 | |
Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 0 | 2 | |
Kentucky Utilities Co [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 16 | 5 | |
Noncurrent regulatory liabilities | 498 | 516 | |
Kentucky Utilities Co [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 6 | 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 | [1] | 16 | 34 |
Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 27 | 29 |
Kentucky Utilities Co [Member] | Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 0 | 2 | |
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 16 | |
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 41 | 42 | |
Kentucky Utilities Co [Member] | Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 8 | 0 | |
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 (Regu51
Utility Rate Regulation (Regulatory Matters) (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2015 | Sep. 30, 2015USD ($)IntegerY | Sep. 30, 2014USD ($) | |
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 | $ 75 | ||
PPL Electric [Member] | |||
Regulatory Matters Pennsylvania Activities Numeric [Abstract] | |||
Number of ratemaking mechanisms authorized for PUC approval | Integer | 2 | ||
Regulatory Matters - Pennsylvania Activities - Distribution System Improvement Charge (Numeric) [Abstract] | |||
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% | ||
Regulatory Matters - Pennsylvania Activities - Smart Meter Rider (Numeric) [Abstract] | |||
Maximum number of years the cost of smart meters can be depreciated | Y | 15 | ||
Projected cost of proposed smart meter replacement project | $ 450 | ||
Portion of projected cost of proposed smart meters replacement project expected to be capital | 328 | ||
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) | Y | 3 | ||
PPL Electric [Member] | Distribution Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 124 | ||
Dollar amount requested increase in base rates with anticipated rate case filing | $ 167.5 | ||
LGE [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 10.00% | ||
Number of years over which pension costs will be recovered | 15 years | ||
LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 7 | ||
KU [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 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] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 125 | ||
KU [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 | Integer | 12 | ||
Number of municipalities that submitted termination notices, effective 2019 | Integer | 9 | ||
Number of municipalities that submitted termination notices, effective 2017 | Integer | 1 | ||
Number of municipalities that agreed to settlement terms of rate change request | Integer | 2 | ||
Return on equity authorized with respect to two municipalities | 10.00% | ||
Return on equity in a settlement reached with respect to nine municipalities | 10.25% | ||
Requested return on equity for certain wholesale customers | 10.70% | ||
PPL Electric Utilities Corp [Member] | |||
Regulatory Matters Pennsylvania Activities Numeric [Abstract] | |||
Number of ratemaking mechanisms authorized for PUC approval | Integer | 2 | ||
Regulatory Matters - Pennsylvania Activities - Distribution System Improvement Charge (Numeric) [Abstract] | |||
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% | ||
Regulatory Matters - Pennsylvania Activities - Smart Meter Rider (Numeric) [Abstract] | |||
Maximum number of years the cost of smart meters can be depreciated | Y | 15 | ||
Projected cost of proposed smart meter replacement project | $ 450 | ||
Portion of projected cost of proposed smart meters replacement project expected to be capital | 328 | ||
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) | Y | 3 | ||
PPL Electric Utilities Corp [Member] | Distribution Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 124 | ||
Dollar amount requested increase in base rates with anticipated rate case filing | $ 167.5 | ||
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 10.00% | ||
Number of years over which pension costs will be recovered | 15 years | ||
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 7 | ||
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 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] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 125 | ||
LG And E And KU Energy LLC [Member] | KU [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 | Integer | 12 | ||
Number of municipalities that submitted termination notices, effective 2019 | Integer | 9 | ||
Number of municipalities that submitted termination notices, effective 2017 | Integer | 1 | ||
Number of municipalities that agreed to settlement terms of rate change request | Integer | 2 | ||
Return on equity authorized with respect to two municipalities | 10.00% | ||
Return on equity in a settlement reached with respect to nine municipalities | 10.25% | ||
Requested return on equity for certain wholesale customers | 10.70% | ||
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 10.00% | ||
Number of years over which pension costs will be recovered | 15 years | ||
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Gas Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 7 | ||
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Approved return on equity | 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] | Kentucky Public Service Commission [Member] | Electric Rates [Member] | |||
Regulatory Matters - Rate Case Proceeding / Federal Energy Regulatory Commission Formula Rates (Numeric) [Abstract] | |||
Increase in annual revenue requirements associated with base rates resulting from rate case | $ 125 | ||
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 | Integer | 12 | ||
Number of municipalities that submitted termination notices, effective 2019 | Integer | 9 | ||
Number of municipalities that submitted termination notices, effective 2017 | Integer | 1 | ||
Number of municipalities that agreed to settlement terms of rate change request | Integer | 2 | ||
Return on equity authorized with respect to two municipalities | 10.00% | ||
Return on equity in a settlement reached with respect to nine municipalities | 10.25% | ||
Requested return on equity for certain wholesale customers | 10.70% |
Financing Activities (Credit Ar
Financing Activities (Credit Arrangements) (Details) £ in Millions, $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2015GBP (£) | Sep. 30, 2015USD ($) | Dec. 31, 2014GBP (£) | Dec. 31, 2014USD ($) | ||||
WPD PLC [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Dec. 1, 2016 | ||||||
Interest rate on outstanding borrowing | 1.80% | 1.80% | 1.86% | 1.86% | |||
WPD South West [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 1, 2020 | ||||||
WPD East Midlands [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 1, 2020 | ||||||
Interest rate on outstanding borrowing | 0.91% | 0.91% | 1.00% | 1.00% | |||
WPD West Midlands [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 1, 2020 | ||||||
WPD [Member] | |||||||
Financing Activities [Line Items] | |||||||
Unused capacity | $ 1,300 | ||||||
PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 28, 2019 | ||||||
PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Nov. 12, 2018 | ||||||
PPL Capital Funding [Member] | Bilateral Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Mar. 26, 2016 | ||||||
PPL Electric [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 28, 2019 | ||||||
LKE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Interest rate on outstanding borrowing | 1.45% | 1.45% | 1.67% | 1.67% | |||
LKE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Oct. 31, 2018 | ||||||
LGE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
KU [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
KU [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Oct. 1, 2017 | ||||||
United Kingdom, Pounds [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | £ 1,120 | ||||||
Borrowed | £ | [1] | 266 | £ 167 | ||||
Letters of credit and commercial paper issued | £ | 4 | 5 | |||||
Unused capacity | £ | [1] | 850 | |||||
United Kingdom, Pounds [Member] | WPD PLC [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | 210 | ||||||
Borrowed | 127 | [1] | $ 200 | 103 | [1] | $ 161 | |
Unused capacity | £ | 83 | ||||||
United Kingdom, Pounds [Member] | WPD South West [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | 245 | ||||||
Unused capacity | £ | 245 | ||||||
United Kingdom, Pounds [Member] | WPD East Midlands [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | 300 | ||||||
Borrowed | 139 | [1] | 214 | 64 | [1] | 100 | |
Unused capacity | £ | 161 | ||||||
United Kingdom, Pounds [Member] | WPD West Midlands [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | 300 | ||||||
Unused capacity | £ | 300 | ||||||
United Kingdom, Pounds [Member] | WPD [Member] | Uncommitted Credit Facilities [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | £ | 65 | ||||||
Letters of credit and commercial paper issued | £ | 4 | £ 5 | |||||
Unused capacity | £ | £ 61 | ||||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 750 | ||||||
Letters of credit and commercial paper issued | 20 | 21 | |||||
Unused capacity | 730 | ||||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 300 | ||||||
Unused capacity | 300 | ||||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 300 | ||||||
Unused capacity | 300 | ||||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Bilateral Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 150 | ||||||
Letters of credit and commercial paper issued | 20 | 21 | |||||
Unused capacity | 130 | ||||||
United States of America, Dollars [Member] | PPL Electric [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 300 | ||||||
Letters of credit and commercial paper issued | 69 | 1 | |||||
Unused capacity | 231 | ||||||
United States of America, Dollars [Member] | LKE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 75 | ||||||
Borrowed | [2] | 75 | 75 | ||||
United States of America, Dollars [Member] | LGE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 500 | ||||||
Letters of credit and commercial paper issued | 264 | ||||||
Unused capacity | 500 | ||||||
United States of America, Dollars [Member] | KU [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 598 | ||||||
Letters of credit and commercial paper issued | 198 | 434 | |||||
Unused capacity | 400 | ||||||
United States of America, Dollars [Member] | KU [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 400 | ||||||
Letters of credit and commercial paper issued | 236 | ||||||
Unused capacity | 400 | ||||||
United States of America, Dollars [Member] | KU [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 198 | ||||||
Letters of credit and commercial paper issued | 198 | 198 | |||||
PPL Electric Utilities Corp [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 28, 2019 | ||||||
PPL Electric Utilities Corp [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 300 | ||||||
Letters of credit and commercial paper issued | 69 | $ 1 | |||||
Unused capacity | $ 231 | ||||||
LG And E And KU Energy LLC [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Interest rate on outstanding borrowing | 1.45% | 1.45% | 1.67% | 1.67% | |||
LG And E And KU Energy LLC [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Oct. 31, 2018 | ||||||
LG And E And KU Energy LLC [Member] | LGE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
LG And E And KU Energy LLC [Member] | KU [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
LG And E And KU Energy LLC [Member] | KU [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Oct. 1, 2017 | ||||||
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | $ 75 | ||||||
Borrowed | [2] | 75 | $ 75 | ||||
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | LGE [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 500 | ||||||
Letters of credit and commercial paper issued | 264 | ||||||
Unused capacity | 500 | ||||||
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 598 | ||||||
Letters of credit and commercial paper issued | 198 | 434 | |||||
Unused capacity | 400 | ||||||
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 400 | ||||||
Letters of credit and commercial paper issued | 236 | ||||||
Unused capacity | 400 | ||||||
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 198 | ||||||
Letters of credit and commercial paper issued | 198 | 198 | |||||
Louisville Gas And Electric Co [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
Louisville Gas And Electric Co [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 500 | ||||||
Letters of credit and commercial paper issued | 264 | ||||||
Unused capacity | 500 | ||||||
Kentucky Utilities Co [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Jul. 29, 2019 | ||||||
Kentucky Utilities Co [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Expiration date | Oct. 1, 2017 | ||||||
Kentucky Utilities Co [Member] | United States of America, Dollars [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 598 | ||||||
Letters of credit and commercial paper issued | 198 | 434 | |||||
Unused capacity | 400 | ||||||
Kentucky Utilities Co [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 400 | ||||||
Letters of credit and commercial paper issued | 236 | ||||||
Unused capacity | 400 | ||||||
Kentucky Utilities Co [Member] | United States of America, Dollars [Member] | Letter Of Credit Facility [Member] | |||||||
Financing Activities [Line Items] | |||||||
Capacity | 198 | ||||||
Letters of credit and commercial paper issued | $ 198 | $ 198 | |||||
[1] | WPD plc 's amounts borrowed at September 30, 2015 and December 31, 2014 were USD-denominated borrowings of $ 200 million and $ 161 million, which bore interest at 1.80% and 1.86% . WPD (East Midlands) amounts borrowed at September 30, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $ 214 million and $ 100 million, which bore interes t at 0.91% and 1.00% . At September 30, 2015 , the unused capacity under the U.K. credit facilities was $ 1.3 billion. | ||||||
[2] | LKE’s interest rates on outstanding borrowings at September 30, 2015 and December 31, 2014 were 1.45% and 1.67% . |
Financing Activities (Short-ter
Financing Activities (Short-term Debt) (Details) - Commercial Paper [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Capacity | $ 1,000 | |
Commercial paper issuances | 68 | $ 500 |
Unused capacity | 932 | |
PPL Capital Funding [Member] | Subsequent Event [Member] | ||
Short-term Debt [Line Items] | ||
Commercial paper issuances | $ 600 | |
PPL Electric [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.41% | |
Capacity | $ 300 | |
Commercial paper issuances | 68 | |
Unused capacity | 232 | |
LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.42% | |
Capacity | 350 | |
Commercial paper issuances | $ 264 | |
Unused capacity | 350 | |
KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.49% | |
Capacity | 350 | |
Commercial paper issuances | $ 236 | |
Unused capacity | $ 350 | |
PPL Electric Utilities Corp [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.41% | |
Capacity | $ 300 | |
Commercial paper issuances | 68 | |
Unused capacity | 232 | |
LG And E And KU Energy LLC [Member] | LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.42% | |
Capacity | 350 | |
Commercial paper issuances | $ 264 | |
Unused capacity | 350 | |
LG And E And KU Energy LLC [Member] | KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.49% | |
Capacity | 350 | |
Commercial paper issuances | $ 236 | |
Unused capacity | 350 | |
Louisville Gas And Electric Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.42% | |
Capacity | 350 | |
Commercial paper issuances | $ 264 | |
Unused capacity | 350 | |
Kentucky Utilities Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.49% | |
Capacity | 350 | |
Commercial paper issuances | $ 236 | |
Unused capacity | $ 350 |
Financing Activities (Long-term
Financing Activities (Long-term Debt and Equity Securities) (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015USD ($) | Feb. 26, 2015USD ($)Integer | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | |
At-the-Market Stock Offering Program (Numeric) [Abstract] | |||||
Net proceeds from issuance of common stock | $ 145 | $ 1,037 | |||
First Mortgage Bond [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 1,050 | 1,050 | |||
PPL Electric [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | Subsequent Event [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 350 | ||||
Stated interest rate | 4.15% | ||||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 345 | ||||
LGE [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 300 | $ 300 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 298 | ||||
LGE [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
KU [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
KU [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | Subsequent Event [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 350 | ||||
Stated interest rate | 4.15% | ||||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 345 | ||||
LG And E And KU Energy LLC [Member] | First Mortgage Bond [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 1,050 | 1,050 | |||
LG And E And KU Energy LLC [Member] | LGE [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 300 | $ 300 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 298 | ||||
LG And E And KU Energy LLC [Member] | LGE [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
LG And E And KU Energy LLC [Member] | KU [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
LG And E And KU Energy LLC [Member] | KU [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
Louisville Gas And Electric Co [Member] | First Mortgage Bond [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 550 | 550 | |||
Louisville Gas And Electric Co [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 300 | $ 300 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 298 | ||||
Louisville Gas And Electric Co [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
Kentucky Utilities Co [Member] | First Mortgage Bond [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 500 | 500 | |||
Kentucky Utilities Co [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2025 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 3.30% | 3.30% | |||
Maturity date | Oct. 1, 2025 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
Kentucky Utilities Co [Member] | First Mortgage Bond [Member] | First Mortgage Bond Due 2045 [Member] | |||||
Long-term Debt (Numeric) [Abstract] | |||||
Principal amount | $ 250 | $ 250 | |||
Stated interest rate | 4.375% | 4.375% | |||
Maturity date | Oct. 1, 2045 | ||||
Proceeds from issuance of secured debt | $ 248 | ||||
At The Market Stock Offering Program [Member] | |||||
At-the-Market Stock Offering Program (Numeric) [Abstract] | |||||
Number of distribution agreements | Integer | 2 | ||||
Aggregate sales price of common stock based on two separate equity distribution agreements | $ 500 | ||||
Shares of common stock issued during the period | shares | 435,800 | 857,500 | |||
Average price per common share | $ / shares | $ 32.95 | $ 33.33 | |||
Net proceeds from issuance of common stock | $ 14 | $ 28 |
Financing Activities (Distribut
Financing Activities (Distributions and Capital Contributions) (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Distributions [Line Items] | |||||
Quarterly common stock dividend declaration date | 2015-08 | ||||
Dividend payable date of quarterly common stock dividend | Oct. 1, 2015 | ||||
Current quarterly common stock dividend (in dollars per share) | $ 0.3775 | $ 0.3775 | $ 0.3725 | $ 1.1225 | $ 1.1175 |
Annualized current quarterly common stock dividend (in dollars per share) | $ 1.51 |
Acquisitions, Development and56
Acquisitions, Development and Divestures (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2015USD ($)Integer | Mar. 31, 2015Integer | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($)Integershares | Sep. 30, 2015USD ($)IntegerMW | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | $ 359 | $ 416 | |||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract] | |||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | $ (3) | $ 87 | (915) | 13 | |||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Assets and Liabilities of Discontinued Operations (Details) [Abstract] | |||||||||||
Total Current Assets | 0 | 0 | $ 2,600 | ||||||||
Total Noncurrent Assets | 0 | 0 | 8,317 | ||||||||
Total Current Liabilities | 0 | 0 | 2,775 | ||||||||
Accrued pension obligations | 244 | 244 | |||||||||
Total Nonurrent Liabilities | 0 | $ 0 | 3,963 | ||||||||
Solar Generation Facility [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Planned capacity expansion (in MW) | MW | 10 | ||||||||||
Expected capital cost of an expansion project | 36 | $ 36 | |||||||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Cost of Spinoff (Numberic) [Abstract] | |||||||||||
Amount of accrued libality for seperation benefits | 11 | 11 | 21 | ||||||||
Spinoff transaction costs | 5 | 44 | 21 | ||||||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Other Operation And Maintenance [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Cost of Spinoff (Numberic) [Abstract] | |||||||||||
Spinoff transaction costs | 13 | ||||||||||
Spinoff [Member] | PPL Energy Supply Spinoff [Member] | Discontinued Operations [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Cost of Spinoff (Numberic) [Abstract] | |||||||||||
Seperation benefits | 24 | ||||||||||
Spinoff transaction costs | $ 31 | ||||||||||
PPL Energy Supply Spinoff [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Spinoff agreement execution date | Jun. 9, 2014 | ||||||||||
Date of record | May 20, 2015 | ||||||||||
Effective date of spinoff | Jun. 1, 2015 | ||||||||||
Certain details of spinoff transaction | In June 2014, PPL and PPL Energy Supply executed definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and immediately combine it with Riverstone’s competitive power generation businesses to form a new, stand-alone, publicly traded company named Talen Energy. The transaction was subject to customary closing conditions, including receipt of regulatory approvals from the NRC, FERC, DOJ and PUC, all of which were received by mid-April 2015. On April 29, 2015, PPL’s Board of Directors declared the June 1, 2015 distribution to PPL’s shareowners of record on May 20, 2015 of a newly formed entity, Holdco, which at closing owned all of the membership interests of PPL Energy Supply and all of the common stock of Talen Energy. | ||||||||||
Number of shares of Talen common stock for one share of PPL common stock | shares | 0.1249 | ||||||||||
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% | ||||||||||
Number of approaches | Integer | 3 | ||||||||||
Weighted fair value | $ 3,224 | ||||||||||
Control premium | 25.00% | ||||||||||
Number of market approaches | Integer | 2 | ||||||||||
Review period used in determing the control premium (in years) | 5 years | ||||||||||
Mimimum transaction value reviewed in determining the control premium | $ 1,000 | ||||||||||
Carrying value of the Supply segment | $ 4,100 | ||||||||||
Gain (loss) on interest rate swaps recognized in discontinued operations on the statement of income | $ 72 | ||||||||||
Gain (loss), after-tax, on interest rate swaps recognized in discontinued operations on the statement of income | 42 | ||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | 3 | 49 | |||||||||
Maximum period for Transition Service Agreement (in years) | 2 years | ||||||||||
Amount for services billed to spinoff | 11 | 14 | |||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract] | |||||||||||
Operating revenues | 0 | 1,623 | 1,427 | 1,741 | |||||||
Operating expenses | 0 | 1,429 | 1,328 | 1,593 | |||||||
Other Income (Expense) - net | 0 | 8 | (22) | 6 | |||||||
Interest Expense | 0 | 47 | [1] | 150 | [1] | 145 | [1] | ||||
Income (loss) before income taxes | 0 | 155 | (73) | 9 | |||||||
Income tax expense (benefit) | 3 | 68 | (37) | (4) | |||||||
Loss on spinoff | 0 | 0 | (879) | 0 | |||||||
Income (Loss) from Discontinued Operations (net of income taxes) | (3) | 87 | (915) | 13 | |||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Assets and Liabilities of Discontinued Operations (Details) [Abstract] | |||||||||||
Cash and cash equivalents | $ 371 | [2] | 352 | ||||||||
Restricted cash and cash equivalents | 156 | 176 | |||||||||
Accounts receivable and unbilled revenues | 325 | 504 | |||||||||
Fuels, materials and supplies | 415 | 455 | |||||||||
Price risk management assets | 784 | 1,079 | |||||||||
Other current assets | 65 | 34 | |||||||||
Total Current Assets | 2,116 | 2,600 | |||||||||
Investments | 999 | 980 | |||||||||
Property Plant and Equipment, net | 6,384 | 6,428 | |||||||||
Goodwill | 338 | 338 | |||||||||
Other intangibles | 260 | 257 | |||||||||
Price risk management assets | 244 | 239 | |||||||||
Other noncurrent assets | 78 | 75 | |||||||||
Total Noncurrent Assets | 8,303 | 8,317 | |||||||||
Total assets | 10,419 | 10,917 | |||||||||
Short-term debt and long-term debt due within one year | 885 | 1,165 | |||||||||
Accounts payable | 252 | 361 | |||||||||
Price risk management liabilities | 763 | 1,024 | |||||||||
Other current liabilities | 229 | 225 | |||||||||
Total Current Liabilities | 2,129 | 2,775 | |||||||||
Long-term debt (excluding current portion) | 1,932 | 1,683 | |||||||||
Deferred income taxes | 1,259 | 1,223 | |||||||||
Price risk management liabilities | 206 | 193 | |||||||||
Accrued pension obligations | 244 | 299 | |||||||||
Asset retirement obligations | 443 | 415 | |||||||||
Other deferred credits and noncurrent liabilities | 103 | 150 | |||||||||
Total Nonurrent Liabilities | 4,187 | 3,963 | |||||||||
Total liabilities | 6,316 | $ 6,738 | |||||||||
Adjustment for loss on spinoff | $ 0 | $ 0 | $ 879 | 0 | |||||||
Net assets distributed | $ 3,224 | ||||||||||
PPL Energy Supply Spinoff [Member] | Minimum [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Control premium | 5.00% | ||||||||||
PPL Energy Supply Spinoff [Member] | Maximum [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Control premium | 42.00% | ||||||||||
PPL Energy Supply Spinoff [Member] | Talen Energy Market Value [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Weighting | 50.00% | ||||||||||
Weighted fair value | $ 1,400 | ||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Assets and Liabilities of Discontinued Operations (Details) [Abstract] | |||||||||||
Net assets distributed | $ 1,400 | ||||||||||
PPL Energy Supply Spinoff [Member] | Income Discounted Cash Flow [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Weighting | 30.00% | ||||||||||
Weighted fair value | $ 1,100 | ||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Assets and Liabilities of Discontinued Operations (Details) [Abstract] | |||||||||||
Net assets distributed | $ 1,100 | ||||||||||
PPL Energy Supply Spinoff [Member] | Alternative Market Comparable Company [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Weighting | 20.00% | ||||||||||
Weighted fair value | $ 700 | ||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Assets and Liabilities of Discontinued Operations (Details) [Abstract] | |||||||||||
Net assets distributed | $ 700 | ||||||||||
Montana Hydroelectric Generating Facilities [Member] | |||||||||||
Divestitures - Montana Hydro Sale Agreement (Numeric) [Abstract] | |||||||||||
Capacity of facilities sold (in MW) | MW | 633 | ||||||||||
Agreed upon sales price for disposal of hydroelectric facilities owned by PPL Montana | $ 900 | ||||||||||
Number of hydroelectric facilities owned by PPL Montana sold | Integer | 11 | 11 | |||||||||
LGE [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Cane Run plant | Integer | 1 | 2 | |||||||||
LGE [Member] | Cane Run Unit 7 [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Costs associated with the retirement of generating units | $ 11 | $ 11 | |||||||||
KU [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Green River plant | Integer | 2 | ||||||||||
Costs associated with the retirement of generating units | 6 | $ 6 | |||||||||
PPL Electric Utilities Corp [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | 127 | 65 | |||||||||
LG And E And KU Energy LLC [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | $ 199 | 251 | |||||||||
LG And E And KU Energy LLC [Member] | Solar Generation Facility [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Planned capacity expansion (in MW) | MW | 10 | ||||||||||
Expected capital cost of an expansion project | 36 | $ 36 | |||||||||
LG And E And KU Energy LLC [Member] | LGE [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Cane Run plant | Integer | 1 | 2 | |||||||||
LG And E And KU Energy LLC [Member] | LGE [Member] | Cane Run Unit 7 [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Costs associated with the retirement of generating units | 11 | $ 11 | |||||||||
LG And E And KU Energy LLC [Member] | KU [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Green River plant | Integer | 2 | ||||||||||
Costs associated with the retirement of generating units | 6 | $ 6 | |||||||||
Louisville Gas And Electric Co [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | 93 | 31 | |||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Cane Run plant | Integer | 1 | 2 | |||||||||
Louisville Gas And Electric Co [Member] | Cane Run Unit 7 [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Costs associated with the retirement of generating units | 11 | $ 11 | |||||||||
Louisville Gas And Electric Co [Member] | Solar Generation Facility [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Planned capacity expansion (in MW) | MW | 10 | ||||||||||
Expected capital cost of an expansion project | 36 | $ 36 | |||||||||
Kentucky Utilities Co [Member] | |||||||||||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||||||||||
Deferred income tax recorded as result of agreement to adjust valuation allowances | $ 132 | $ 129 | |||||||||
Development Projects [Abstract] | |||||||||||
Generating units retired at the Green River plant | Integer | 2 | ||||||||||
Costs associated with the retirement of generating units | 6 | $ 6 | |||||||||
Kentucky Utilities Co [Member] | Solar Generation Facility [Member] | |||||||||||
Development Projects [Abstract] | |||||||||||
Planned capacity expansion (in MW) | MW | 10 | ||||||||||
Expected capital cost of an expansion project | $ 36 | $ 36 | |||||||||
[1] | Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized. | ||||||||||
[2] | The distribution of PPL Energy Supply ’s cash and cash equivalents at June 1, 2015 is included in "Net cash provided by (used in) financing activities - discontinu ed operations" on the Statement of Cash Flows for the nine months ended September 30, 2015 . |
Defined Benefits (Details)
Defined Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Accrued pension obligations | $ 244 | $ 244 | |||||
Accrued postretirement obligation | 7 | $ 7 | |||||
LGE [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
KU [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
Pension Benefits United States [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 20 | $ 24 | $ 76 | $ 73 | |||
Interest cost | 42 | 56 | 152 | 168 | |||
Expected return on plan assets | (56) | (72) | (201) | (216) | |||
Amortization of: | |||||||
Prior service cost | 1 | 5 | 5 | 15 | |||
Actuarial (gain) loss | 18 | 8 | 65 | 22 | |||
Net periodic defined benefit costs (credits) prior to termination benefits | 25 | 21 | [1] | 97 | [2] | 62 | [1] |
Termination benefits | 0 | (7) | [3] | 0 | 13 | [3] | |
Net periodic defined benefit costs (credits) | 25 | 14 | [1] | 97 | [2] | 75 | [1] |
Net period defined benefit costs reflected in discontinued operations allocated from PPL's plans to PPL Energy Supply prior to the spinoff | 1 | 18 | 29 | ||||
Pension Benefits United States [Member] | PPL Energy Supply LLC [Member] | |||||||
Amortization of: | |||||||
Termination benefits | (5) | 11 | |||||
Pension Benefits United States [Member] | PPL Electric [Member] | |||||||
Amortization of: | |||||||
Termination benefits | (2) | 2 | |||||
Pension Benefits United Kingdom [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 21 | 18 | 60 | 54 | |||
Interest cost | 80 | 90 | 236 | 268 | |||
Expected return on plan assets | (133) | (133) | (393) | (395) | |||
Amortization of: | |||||||
Actuarial (gain) loss | 39 | 34 | 118 | 100 | |||
Net periodic defined benefit costs (credits) prior to termination benefits | 7 | 9 | 21 | 27 | |||
Net periodic defined benefit costs (credits) | 7 | 9 | 21 | 27 | |||
Other Postretirement Benefits United States [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 2 | 3 | 9 | 9 | |||
Interest cost | 6 | 7 | 20 | 23 | |||
Expected return on plan assets | (6) | (6) | (20) | (19) | |||
Amortization of: | |||||||
Net periodic defined benefit costs (credits) | 2 | 4 | 9 | 13 | |||
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 | 3 | [4] | $ 24 | 18 | [4] | |
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
LG And E And KU Energy LLC [Member] | Pension Benefits United States [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 7 | 5 | $ 20 | 16 | |||
Interest cost | 17 | 17 | 51 | 50 | |||
Expected return on plan assets | (22) | (21) | (66) | (62) | |||
Amortization of: | |||||||
Prior service cost | 1 | 1 | 5 | 3 | |||
Actuarial (gain) loss | 9 | 4 | 26 | 10 | |||
Net periodic defined benefit costs (credits) | 12 | 6 | 36 | 17 | |||
LG And E And KU Energy LLC [Member] | Other Postretirement Benefits United States [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 1 | 1 | 4 | 3 | |||
Interest cost | 2 | 2 | 7 | 7 | |||
Expected return on plan assets | (1) | (1) | (4) | (4) | |||
Amortization of: | |||||||
Prior service cost | 1 | 1 | 2 | 2 | |||
Net periodic defined benefit costs (credits) | 3 | 3 | $ 9 | 8 | |||
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
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 | $ 10 | 6 | |||
Louisville Gas And Electric Co [Member] | Pension Benefits United States [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | |||||||
Service cost | 0 | 0 | 1 | 1 | |||
Interest cost | 3 | 4 | 10 | 11 | |||
Expected return on plan assets | (5) | (4) | (15) | (14) | |||
Amortization of: | |||||||
Prior service cost | 1 | 1 | 2 | 2 | |||
Actuarial (gain) loss | 3 | 1 | 9 | 4 | |||
Net periodic defined benefit costs (credits) | 2 | 2 | $ 7 | 4 | |||
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | |||||||
Net Periodic Defined Benefit Costs (Credits) (Numeric) [Abstract] | |||||||
Number of years over which pension costs will be recovered | 15 years | ||||||
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 | $ 4 | $ 2 | $ 13 | $ 6 | |||
[1] | For the three and nine months ended September 30, 2014 , the total net periodic defined benefit cost include s $ 1 million and $ 29 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply. | ||||||
[2] | For the nine months ended September 30, 2015 , the total net periodic defined benefit cost include s $ 18 million reflected in d iscontinued o perations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff . | ||||||
[3] | The three and nine months ended September 30, 2014 include termination benefits of $ (2) million and $ 2 million for PPL Electric . The remaining $ (5) million and $ 11 million relate to PPL Energy Supply and are reflected in d iscontinued o perations . | ||||||
[4] | The three and nine months ended September 30, 2014 include $ (2) million and $ 2 million of termination benefits for PPL Electric related to a one-time voluntary retirement window offered to certain bargaining unit employees. |
Commitments and Contingencies58
Commitments and Contingencies (Energy Purchases, Other Commitments, Legal Matters and Regulatory Issues) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Oct. 31, 2015 | Mar. 31, 2015Integer | Jun. 30, 2015Integer | Sep. 30, 2015USD ($)Integermi | |
Regulatory Issues - Electric - Reliability Standards (Numeric) [Abstract] | ||||
Maximum per day penalties for reliability violations | $ | $ 1 | |||
LGE [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 | mi | 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 | 2 | ||
KU [Member] | Subsequent Event [Member] | ||||
Legal Matters - E.W. Brown Environmental Claims [Abstract] | ||||
Period to file lawsuits after applicable notice date (in days) | 60 days | |||
LG And E And KU Energy LLC [Member] | LGE [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 | mi | 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 | 2 | ||
LG And E And KU Energy LLC [Member] | KU [Member] | Subsequent Event [Member] | ||||
Legal Matters - E.W. Brown Environmental Claims [Abstract] | ||||
Period to file lawsuits after applicable notice date (in days) | 60 days | |||
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 | mi | 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 | 2 | ||
Kentucky Utilities Co [Member] | Subsequent Event [Member] | ||||
Legal Matters - E.W. Brown Environmental Claims [Abstract] | ||||
Period to file lawsuits after applicable notice date (in days) | 60 days |
Commitments and Contingencies59
Commitments and Contingencies (Environmental Matter and Other) (Details) - Integer | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Environmental Matters - Domestic - Air (Numeric) [Abstract] | ||
Number of criteria pollutants | 6 | |
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | |
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 | |
Subsequent Event [Member] | ||
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Percentage reduction in emissions rates below 2012 emission rates under the rate-based approach | 41.00% | |
Percentage reduction in emissions rates below 2012 emission rates under the mass-based approach | 36.00% | |
LG And E And KU Energy LLC [Member] | ||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | ||
Number of criteria pollutants | 6 | |
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | |
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 | |
LG And E And KU Energy LLC [Member] | Subsequent Event [Member] | ||
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Percentage reduction in emissions rates below 2012 emission rates under the rate-based approach | 41.00% | |
Percentage reduction in emissions rates below 2012 emission rates under the mass-based approach | 36.00% | |
Louisville Gas And Electric Co [Member] | ||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | ||
Number of criteria pollutants | 6 | |
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | |
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] | Subsequent Event [Member] | ||
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Percentage reduction in emissions rates below 2012 emission rates under the rate-based approach | 41.00% | |
Percentage reduction in emissions rates below 2012 emission rates under the mass-based approach | 36.00% | |
Kentucky Utilities Co [Member] | ||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | ||
Number of criteria pollutants | 6 | |
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Number of electric utility companies affected by a September 2009 U.S. Court of Appeals for the Second Circuit decision | 5 | |
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] | Subsequent Event [Member] | ||
Environmental Matters - Domestic - Air - Climate Change - The EPA's Clean Power Plan (Numeric) [Abstract] | ||
Percentage reduction in emissions rates below 2012 emission rates under the rate-based approach | 41.00% | |
Percentage reduction in emissions rates below 2012 emission rates under the mass-based approach | 36.00% |
Commitments and Contingencies60
Commitments and Contingencies (Guarantees and Other Assurances) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015USD ($)Integer | Dec. 31, 2014USD ($) | ||
Guarantor Obligations [Line Items] | |||
Recorded liability for all guarantees | $ 24 | $ 26 | |
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 | [1] | $ 11 | |
Expiration date | 2,018 | ||
Minimum period that indemnifications generally expire (in years) | Integer | 2 | ||
Maximum period that indemnifications generally expire (in years) | Integer | 7 | ||
PPL Guarantee [Member] | Financial Guarantee [Member] | WPD Guarantee Of Pension And Other Obligations Of Unconsolidated Entities [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | [2] | $ 116 | |
PPL Electric Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | [3] | $ 36 | |
Expiration date | 2,018 | ||
LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | [4] | $ 301 | |
Expiration date minimum | 2,021 | ||
Expiration date maximum | 2,023 | ||
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 | [3] | $ 36 | |
Expiration date | 2,018 | ||
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 | [4] | $ 301 | |
Expiration date minimum | 2,021 | ||
Expiration date maximum | 2,023 | ||
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 agre ements 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 September 30, 2015 , WPD has recorded an estimated disc ounted 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 bee n 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 remainin g inventory that has not been used or sold. | ||
[4] | LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LK E guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum expos ure of $ 200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, h as 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. In October 2014, LKE’s indemnitee filed a motio n for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. I n September 2015, a counterparty issued a demand letter to LKE’s indemnitee . LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and anticipates the indemnitee to dispute the deman d. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including a dditional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has in demnified 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. LKE cannot predict the ultimate outcomes of the 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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | $ 35 | $ 34 | $ 90 | $ 113 | |
PPL Electric Utilities Corp [Member] | PPL EU Services [Member] | |||||
Support Costs (Details) [Abstract] | |||||
Support cost allocations from subsidiary of parent to registrant | 12 | 0 | 44 | 0 | |
LG And E And KU Energy LLC [Member] | |||||
Intercompany Borrowings (Numeric) [Abstract] | |||||
Notes payable to affiliates | 62 | 62 | $ 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 | 3 | $ 12 | 11 | |
LG And E And KU Energy LLC [Member] | PPL Energy Funding [Member] | |||||
Intercompany Borrowings (Numeric) [Abstract] | |||||
Intercompany borrowings demand note rate on outstanding borrowing | 1.70% | 1.65% | |||
Intercompany note with affiliate maximum borrowing capacity | 225 | $ 225 | |||
Louisville Gas And Electric Co [Member] | PPL Services [Member] | |||||
Intercompany Billings by LKS (Details) [Abstract] | |||||
Intercompany billings between affiliates | 36 | 36 | 107 | 103 | |
Kentucky Utilities Co [Member] | PPL Services [Member] | |||||
Intercompany Billings by LKS (Details) [Abstract] | |||||
Intercompany billings between affiliates | $ 43 | $ 43 | $ 127 | $ 120 |
Other Income (Expense) - net (D
Other Income (Expense) - net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Expense [Line Items] | ||||
Other Income (Expense) - net | $ 75 | $ 136 | $ 61 | $ 33 |
PPL Electric Utilities Corp [Member] | ||||
Other Expense [Line Items] | ||||
Other Income (Expense) - net | 1 | 3 | 5 | 6 |
LG And E And KU Energy LLC [Member] | ||||
Other Expense [Line Items] | ||||
Other Income (Expense) - net | (1) | (2) | (3) | (6) |
Louisville Gas And Electric Co [Member] | ||||
Other Expense [Line Items] | ||||
Other Income (Expense) - net | (1) | 0 | (3) | (3) |
Kentucky Utilities Co [Member] | ||||
Other Expense [Line Items] | ||||
Other Income (Expense) - net | $ 0 | $ (1) | $ 1 | $ (1) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis Table) (Details) - Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |||
Assets | |||||
Cash and cash equivalents | $ 981 | $ 1,399 | |||
Short-term investments | 0 | 120 | |||
Restricted cash and cash equivalents | [1] | 36 | 31 | ||
Price risk management assets: | |||||
Interest rate swaps assets | 1 | [2] | 0 | ||
Foreign currency contracts assets | [2] | 169 | 130 | ||
Cross-currency swaps assets | [2] | 61 | 29 | ||
Total price risk management assets | [2] | 231 | 159 | ||
Auction rate securities | [3] | 1 | 2 | ||
Total assets | 1,249 | 1,711 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | [2] | 82 | 156 | ||
Foreign currency contracts liabilities | [2] | 7 | 2 | ||
Cross-currency swaps liabilities | 0 | 3 | [2] | ||
Total price risk management liabilities | [2] | 89 | 161 | ||
Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 981 | 1,399 | |||
Short-term investments | 0 | 120 | |||
Restricted cash and cash equivalents | [1] | 36 | 31 | ||
Price risk management assets: | |||||
Interest rate swaps assets | 0 | 0 | |||
Foreign currency contracts assets | 0 | 0 | |||
Cross-currency swaps assets | 0 | 0 | |||
Total price risk management assets | 0 | 0 | |||
Auction rate securities | 0 | 0 | |||
Total assets | 1,017 | 1,550 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 0 | 0 | |||
Foreign currency contracts liabilities | 0 | 0 | |||
Cross-currency swaps liabilities | 0 | 0 | |||
Total price risk management liabilities | 0 | 0 | |||
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: | |||||
Interest rate swaps assets | 1 | [2] | 0 | ||
Foreign currency contracts assets | [2] | 169 | 130 | ||
Cross-currency swaps assets | [2] | 61 | 28 | ||
Total price risk management assets | [2] | 231 | 158 | ||
Auction rate securities | 0 | 0 | |||
Total assets | 231 | 158 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | [2] | 82 | 156 | ||
Foreign currency contracts liabilities | [2] | 7 | 2 | ||
Cross-currency swaps liabilities | 0 | 3 | [2] | ||
Total price risk management liabilities | [2] | 89 | 161 | ||
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: | |||||
Interest rate swaps assets | 0 | 0 | |||
Foreign currency contracts assets | 0 | 0 | |||
Cross-currency swaps assets | 0 | 1 | [2] | ||
Total price risk management assets | 0 | 1 | [2] | ||
Auction rate securities | [3] | 1 | 2 | ||
Total assets | 1 | 3 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 0 | 0 | |||
Foreign currency contracts liabilities | 0 | 0 | |||
Cross-currency swaps liabilities | 0 | 0 | |||
Total price risk management liabilities | 0 | 0 | |||
PPL Electric Utilities Corp [Member] | |||||
Assets | |||||
Cash and cash equivalents | 26 | 214 | |||
Restricted cash and cash equivalents | [1] | 2 | 3 | ||
Price risk management assets: | |||||
Total assets | 28 | 217 | |||
PPL Electric Utilities Corp [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 26 | 214 | |||
Restricted cash and cash equivalents | [1] | 2 | 3 | ||
Price risk management assets: | |||||
Total assets | 28 | 217 | |||
PPL Electric Utilities Corp [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] | 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] | |||||
Assets | |||||
Cash and cash equivalents | 455 | 21 | |||
Price risk management assets: | |||||
Cash collateral posted to counterparties | [4] | 10 | 21 | ||
Total assets | 465 | 42 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 50 | 114 | |||
Total price risk management liabilities | 50 | 114 | |||
LG And E And KU Energy LLC [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 455 | 21 | |||
Price risk management assets: | |||||
Cash collateral posted to counterparties | [4] | 10 | 21 | ||
Total assets | 465 | 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] | 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 | 50 | 114 | |||
Total price risk management liabilities | 50 | 114 | |||
LG And E And KU Energy LLC [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] | |||||
Assets | |||||
Cash and cash equivalents | 180 | 10 | |||
Price risk management assets: | |||||
Cash collateral posted to counterparties | [4] | 10 | 21 | ||
Total assets | 190 | 31 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 50 | 81 | |||
Total price risk management liabilities | 50 | 81 | |||
Louisville Gas And Electric Co [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 180 | 10 | |||
Price risk management assets: | |||||
Cash collateral posted to counterparties | [4] | 10 | 21 | ||
Total assets | 190 | 31 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 0 | 0 | |||
Total price risk management liabilities | 0 | 0 | |||
Louisville Gas And Electric Co [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 | 50 | 81 | |||
Total price risk management liabilities | 50 | 81 | |||
Louisville Gas And Electric Co [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] | |||||
Assets | |||||
Cash and cash equivalents | 275 | 11 | |||
Price risk management assets: | |||||
Total assets | 275 | 11 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 0 | 33 | |||
Total price risk management liabilities | 0 | 33 | |||
Kentucky Utilities Co [Member] | Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 275 | 11 | |||
Price risk management assets: | |||||
Total assets | 275 | 11 | |||
Price risk management liabilities: | |||||
Interest rate swaps liabilities | 0 | 0 | |||
Total price risk management liabilities | 0 | 0 | |||
Kentucky Utilities Co [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 | 0 | 33 | |||
Total price risk management liabilities | 0 | 33 | |||
Kentucky Utilities Co [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 "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. | ||||
[2] | Included in “Other current assets”, “Other current liabilities”, “Other noncurrent assets” and “Other deferred credits and noncurrent liabilities” on the Balance Sheets. | ||||
[3] | Included in "Other noncurrent assets" on the Balance Sheets. | ||||
[4] | Included in "Other noncurrent assets" on the Balance Sheets. R epresent s cash collateral posted to offset the exposure with co unterparties related to certain interest rate swaps under master netting arrangements that are not offset. |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Not Recorded at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | $ 19,205 | $ 18,173 |
Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 21,184 | 20,466 |
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 | 2,882 | 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 | 5,617 | 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 | 5,927 | 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 | 1,903 | 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 | 1,978 | 1,455 |
Kentucky Utilities Co [Member] | Carrying Amount [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | 2,591 | 2,091 |
Kentucky Utilities Co [Member] | Fair Value [Member] | ||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | ||
Long-term debt | $ 2,763 | $ 2,313 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities (Intro) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Master Netting Arrangements (Numeric) [Line Items] | ||
Cash collateral posted under master netting arrangements | $ 10 | $ 21 |
LG And E And KU Energy LLC [Member] | ||
Master Netting Arrangements (Numeric) [Line Items] | ||
Cash collateral posted under master netting arrangements | 10 | 21 |
Louisville Gas And Electric Co [Member] | ||
Master Netting Arrangements (Numeric) [Line Items] | ||
Cash collateral posted under master netting arrangements | $ 10 | $ 21 |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities (Risk Disclosures) (Details) £ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2015GBP (£) | Sep. 30, 2015USD ($) | |
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Settlement of interest rate swaps | $ 88 | $ 0 | |||
First Mortgage Bond [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Principal amount | $ 1,050 | ||||
Cash Flow Hedges [Member] | Interest Rate Swap Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 792 | ||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Insignificant or no hedge ineffectiveness associated with interest rate cash flow hedges | For the three months ended September 30, 2015, PPL had an insignificant amount of hedge ineffectiveness associated with interest rate derivatives and no hedge ineffectiveness for the three months ended September 30, 2014. For the nine months ended September 30, 2015 and 2014, PPL had an insignificant amount of hedge ineffectiveness associated with interest rate derivatives. | ||||
No or insignificant unrealized after-tax gains (losses) on interest rate cash flow hedge contracts expected to be reclassified into earnings during next 12 months | At September 30, 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 insignificant. | ||||
Cash Flow Hedges [Member] | Cross Currency Interest Rate Swaps [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 1,300 | ||||
Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 179 | ||||
Economic Hedges [Member] | Foreign Currency Contracts [Member] | |||||
Foreign Currency Risk - Economic Activity (Numeric) [Abstract] | |||||
Total exposure hedged related to foreign currency contracts for anticipated earnings hedges classified as economic activity | £ 1,700 | 2,700 | |||
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 134 | 221 | |||
Net Investment Hedges [Member] | Combined Foreign Currency Contracts And Intercompany Loans [Member] | |||||
Foreign Currency Risk - Net Investment Hedges (Numeric) [Abstract] | |||||
Net after tax gains (losses) on net investment hedges recognized in the foreign currency translation adjustment component of AOCI | $ 18 | $ 14 | |||
WPD [Member] | Cash Flow Hedges [Member] | Interest Rate Swap Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | £ 320 | 492 | |||
LG And E And KU Energy LLC [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Settlement of interest rate swaps | 88 | 0 | |||
LG And E And KU Energy LLC [Member] | First Mortgage Bond [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Principal amount | 1,050 | ||||
LG And E And KU Energy LLC [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 179 | ||||
Louisville Gas And Electric Co [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Settlement of interest rate swaps | 44 | 0 | |||
Louisville Gas And Electric Co [Member] | First Mortgage Bond [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Principal amount | 550 | ||||
Louisville Gas And Electric Co [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | |||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | |||||
Notional amount | 179 | ||||
Kentucky Utilities Co [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Settlement of interest rate swaps | $ 44 | $ 0 | |||
Kentucky Utilities Co [Member] | First Mortgage Bond [Member] | |||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | |||||
Principal amount | $ 500 |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities (Fair Values) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |||
Derivatives Designated As Hedging Instruments [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | $ 81 | $ 46 | |||
Liability value | 32 | 111 | |||
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | [1] | 46 | 12 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | 1 | [1],[2] | 0 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | 26 | [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 | [1] | 19 | 12 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | [1] | 35 | 34 | ||
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 | [1],[2] | 35 | 29 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | 0 | 5 | [1] | ||
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1] | 31 | 97 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1],[2] | 31 | 94 | ||
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | 0 | 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] | Noncurrent Liabilities [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1] | 1 | 14 | ||
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1],[2] | 1 | 14 | ||
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 Not Designated As Hedging Instruments [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | 150 | 113 | |||
Liability value | 57 | 50 | |||
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | [1] | 76 | 67 | ||
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 | [1] | 76 | 67 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Asset value | [1] | 74 | 46 | ||
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 | [1] | 74 | 46 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1] | 11 | 5 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1],[2] | 5 | 5 | ||
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 | 6 | [1] | 0 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1] | 46 | 45 | ||
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | |||||
Fair Values by Balance Sheet Location [Abstract] | |||||
Liability value | [1],[2] | 45 | 43 | ||
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 | [1] | 1 | 2 | ||
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 | 0 | 66 | [3] | ||
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 | 50 | 48 | |||
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 | [3] | 5 | 5 | ||
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 | [3] | 5 | 5 | ||
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 | [3] | 45 | 43 | ||
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 | [3] | 45 | 43 | ||
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 | 0 | 33 | [3] | ||
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 | 50 | 48 | |||
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 | [3] | 5 | 5 | ||
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 | [3] | 5 | 5 | ||
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 | [3] | 45 | 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 | [3] | 45 | 43 | ||
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 | $ 0 | $ 33 | [3] | ||
[1] | Included in "Other current assets", "Other current liabilities", "Other noncurrent assets" and "Other deferred credits and noncurrent liabilities" on the B alance S heets . | ||||
[2] | Excludes accrued interest, if applicable. | ||||
[3] | Represents the location on the Balance Sheets |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities (Gains and Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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) | $ (13) | $ 15 | $ 27 | $ 0 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | (70) | 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) | (30) | (7) | 4 | (83) |
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) | (27) | (5) | (29) | (65) |
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) | (2) | (5) | (9) | (14) |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 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) | (3) | (2) | 33 | (18) |
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 | 1 | 1 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 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) | (10) | 12 | 22 | (17) |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 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 | 8 | 13 | 30 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 7 | 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) | 7 | 25 | 6 | 7 |
Derivatives 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 | (42) | (4) | (22) | (4) |
Derivatives Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Liabilities Noncurrent [Member] | ||||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||||
Gain (loss) recognized as regulatory liabilities/assets | 6 | 6 | ||
Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [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 | 0 | ||
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | (77) | ||
Derivatives Not Designated As Hedging Instruments [Member] | ||||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||||
Gain (loss) recognized in income on derivative | 76 | 132 | 58 | 32 |
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 | (5) | 0 | (2) | (6) |
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) | (6) | (6) |
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 | 78 | 134 | 64 | 38 |
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 | (42) | (4) | (22) | (4) |
LG And E And KU Energy LLC [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Liabilities Noncurrent [Member] | ||||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||||
Gain (loss) recognized as regulatory liabilities/assets | 6 | 6 | ||
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 | (5) | 0 | (2) | (6) |
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) | (6) | (6) |
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 | (21) | (2) | (11) | (2) |
Louisville Gas And Electric Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Liabilities Noncurrent [Member] | ||||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||||
Gain (loss) recognized as regulatory liabilities/assets | 3 | 3 | ||
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 | (5) | 0 | (2) | (6) |
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) | (6) | (6) |
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 | $ (21) | (2) | $ (11) | (2) |
Kentucky Utilities Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Liabilities Noncurrent [Member] | ||||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||||
Gain (loss) recognized as regulatory liabilities/assets | $ 3 | $ 3 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities (Offseting Derivative Instruments and Credit Risk-Related Features) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Credit Risk-Related Contingent Features [Abstract] | |||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features | $ 32 | ||
Aggregate fair value of collateral posted on these derivative instruments | 10 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 22 | |
Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 231 | $ 159 | |
Derivative instruments eligible for offset - assets | 33 | 65 | |
Net assets | 198 | 94 | |
Gross liabilities | 89 | 161 | |
Derivative instruments eligible for offset - liabilities | 33 | 65 | |
Cash collateral pledged eligible for offset - liabilities | 10 | 21 | |
Net liabilities | 46 | 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 | 30 | ||
Aggregate fair value of collateral posted on these derivative instruments | 10 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 20 | |
LG And E And KU Energy LLC [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 0 | 0 | |
Derivative instruments eligible for offset - assets | 0 | 0 | |
Cash collateral received eligible for offset - assets | 0 | 0 | |
Net assets | 0 | 0 | |
Gross liabilities | 50 | 114 | |
Derivative instruments eligible for offset - liabilities | 0 | 0 | |
Cash collateral pledged eligible for offset - liabilities | 10 | 20 | |
Net liabilities | 40 | 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 | 30 | ||
Aggregate fair value of collateral posted on these derivative instruments | 10 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 20 | |
Louisville Gas And Electric Co [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 0 | 0 | |
Derivative instruments eligible for offset - assets | 0 | 0 | |
Cash collateral received eligible for offset - assets | 0 | 0 | |
Net assets | 0 | 0 | |
Gross liabilities | 50 | 81 | |
Derivative instruments eligible for offset - liabilities | 0 | 0 | |
Cash collateral pledged eligible for offset - liabilities | 10 | 20 | |
Net liabilities | $ 40 | 61 | |
Kentucky Utilities Co [Member] | Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 0 | ||
Derivative instruments eligible for offset - assets | 0 | ||
Cash collateral received eligible for offset - assets | 0 | ||
Net assets | 0 | ||
Gross liabilities | 33 | ||
Derivative instruments eligible for offset - liabilities | 0 | ||
Cash collateral pledged eligible for offset - liabilities | 0 | ||
Net liabilities | $ 33 | ||
[1] | Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | $ 336 | |
Accretion | 14 | |
Changes in estimated cash flow or settlement date | 221 | |
Effect of foreign currency exchange rates | (1) | |
Obligations settled | (5) | |
Balance at End of Period | $ 565 | 565 |
Increase to the asset retirement obligation in connection with the final Coal Combustion Residual rule | 57 | 219 |
LG And E And KU Energy LLC [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 285 | |
Accretion | 13 | |
Changes in estimated cash flow or settlement date | 221 | |
Obligations settled | (5) | |
Balance at End of Period | 514 | 514 |
Increase to the asset retirement obligation in connection with the final Coal Combustion Residual rule | 57 | 219 |
Louisville Gas And Electric Co [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 74 | |
Accretion | 4 | |
Changes in estimated cash flow or settlement date | 83 | |
Obligations settled | (4) | |
Balance at End of Period | 157 | 157 |
Increase to the asset retirement obligation in connection with the final Coal Combustion Residual rule | 36 | 81 |
Kentucky Utilities Co [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 211 | |
Accretion | 9 | |
Changes in estimated cash flow or settlement date | 138 | |
Obligations settled | (1) | |
Balance at End of Period | 357 | 357 |
Increase to the asset retirement obligation in connection with the final Coal Combustion Residual rule | $ 21 | $ 138 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) (After-tax Changes by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | $ (2,284) | $ (1,398) | $ (2,274) | $ (1,565) |
Amounts arising during the period | 33 | (55) | (36) | 43 |
Reclassifications from accumulated other comprehensive income | 45 | 15 | 128 | 84 |
Net other comprehensive income during the period | 78 | (40) | 92 | 127 |
Distribution of PPL Energy Supply | (24) | |||
Balance at end of period | (2,206) | (1,438) | (2,206) | (1,438) |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (435) | 117 | (286) | (11) |
Amounts arising during the period | 52 | (48) | (97) | 80 |
Reclassifications from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Net other comprehensive income during the period | 52 | (48) | (97) | 80 |
Distribution of PPL Energy Supply | 0 | |||
Balance at end of period | (383) | 69 | (383) | 69 |
Available For Sale Securities Unrealized Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 0 | 190 | 202 | 173 |
Amounts arising during the period | 0 | (1) | 7 | 18 |
Reclassifications from accumulated other comprehensive income | 0 | (3) | (2) | (5) |
Net other comprehensive income during the period | 0 | (4) | 5 | 13 |
Distribution of PPL Energy Supply | (207) | |||
Balance at end of period | 0 | 186 | 0 | 186 |
Qualifying Derivatives Unrealized Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 2 | 61 | 20 | 94 |
Amounts arising during the period | (19) | (5) | 8 | (52) |
Reclassifications from accumulated other comprehensive income | 10 | (12) | 20 | 2 |
Net other comprehensive income during the period | (9) | (17) | 28 | (50) |
Distribution of PPL Energy Supply | (55) | |||
Balance at end of period | (7) | 44 | (7) | 44 |
Equity Investees Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 0 | 1 | 1 | 1 |
Amounts arising during the period | 0 | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 0 | (1) | 0 |
Net other comprehensive income during the period | 0 | 0 | (1) | 0 |
Distribution of PPL Energy Supply | 0 | |||
Balance at end of period | 0 | 1 | 0 | 1 |
Defined Benefit Plans Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (3) | (4) | 3 | (6) |
Amounts arising during the period | 0 | 0 | (6) | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 1 | 0 | 3 |
Net other comprehensive income during the period | 0 | 1 | (6) | 3 |
Distribution of PPL Energy Supply | 0 | |||
Balance at end of period | (3) | (3) | (3) | (3) |
Defined Benefit Plans Actuarial Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (1,849) | (1,764) | (2,215) | (1,817) |
Amounts arising during the period | 0 | (1) | 52 | (3) |
Reclassifications from accumulated other comprehensive income | 35 | 29 | 111 | 84 |
Net other comprehensive income during the period | 35 | 28 | 163 | 81 |
Distribution of PPL Energy Supply | 238 | |||
Balance at end of period | (1,814) | (1,736) | (1,814) | (1,736) |
Defined Benefit Plans Transition Assset Obligation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 1 | 1 | 1 | 1 |
Amounts arising during the period | 0 | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Net other comprehensive income during the period | 0 | 0 | 0 | 0 |
Distribution of PPL Energy Supply | 0 | |||
Balance at end of period | 1 | 1 | 1 | 1 |
LG And E And KU Energy LLC [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (52) | 10 | (45) | 13 |
Amounts arising during the period | 0 | 0 | (8) | (2) |
Reclassifications from accumulated other comprehensive income | 1 | 2 | (1) | |
Net other comprehensive income during the period | 1 | 0 | (6) | (3) |
Balance at end of period | (51) | 10 | (51) | 10 |
LG And E And KU Energy LLC [Member] | Equity Investees Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (1) | 0 | 0 | 1 |
Amounts arising during the period | 0 | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | (1) | (1) | |
Net other comprehensive income during the period | 0 | 0 | (1) | (1) |
Balance at end of period | (1) | 0 | (1) | 0 |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans Prior Service Costs [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (7) | (2) | (8) | (2) |
Amounts arising during the period | 0 | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 1 | 0 | |
Net other comprehensive income during the period | 0 | 0 | 1 | 0 |
Balance at end of period | (7) | (2) | (7) | (2) |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans Actuarial Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (44) | 12 | (37) | 14 |
Amounts arising during the period | 0 | 0 | (8) | (2) |
Reclassifications from accumulated other comprehensive income | 1 | 2 | 0 | |
Net other comprehensive income during the period | 1 | 0 | (6) | (2) |
Balance at end of period | (43) | 12 | (43) | 12 |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans Transition Assset Obligation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 0 | 0 | 0 | 0 |
Amounts arising during the period | 0 | 0 | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 0 | ||
Net other comprehensive income during the period | 0 | 0 | 0 | 0 |
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Loss) (Income (Expense) Effect of Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Affected Line Item on the Statements of Income [Line Items] | ||||
Depreciation | $ (226) | $ (233) | $ (658) | $ (688) |
Other Income (Expense) - net | 75 | 136 | 61 | 33 |
Interest Expense | (221) | (213) | (645) | (637) |
Total Pre-tax | 540 | 611 | 1,630 | 1,563 |
Income Taxes | (144) | (201) | (432) | (534) |
Total After-Tax | 396 | 410 | 1,198 | 1,029 |
Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Affected Line Item on the Statements of Income [Line Items] | ||||
Total After-Tax | (45) | (15) | (128) | (84) |
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 | 0 | 7 | 4 | 11 |
Total Pre-tax | 0 | 7 | 4 | 11 |
Income Taxes | 0 | (4) | (2) | (6) |
Total After-Tax | 0 | 3 | 2 | 5 |
Qualifying Derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Affected Line Item on the Statements of Income [Line Items] | ||||
Total Pre-tax | (13) | 15 | (43) | 2 |
Income Taxes | 3 | (3) | 23 | (4) |
Total After-Tax | (10) | 12 | (20) | (2) |
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 | (2) | (5) | (9) | (12) |
Discontinued operations | 0 | 0 | (77) | 0 |
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 | (10) | 12 | 22 | (17) |
Interest Expense | (1) | 0 | 1 | 1 |
Qualifying Derivatives [Member] | Energy Commodities [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||||
Affected Line Item on the Statements of Income [Line Items] | ||||
Discontinued operations | 0 | 8 | 20 | 30 |
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 | (45) | (40) | (146) | (116) |
Income Taxes | 10 | 10 | 35 | 29 |
Total After-Tax | (35) | (30) | (111) | (87) |
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) | 0 | (6) |
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 | (45) | (38) | (146) | (110) |
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 | 0 | 0 | 2 | 0 |
Total Pre-tax | 0 | 0 | 2 | 0 |
Income Taxes | 0 | 0 | (1) | 0 |
Total After-Tax | $ 0 | $ 0 | $ 1 | $ 0 |