Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 22, 2016 | |
Document Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
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 | 676,945,176 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
PPL Electric Utilities Corp [Member] | ||
Document Entity Information [Line Items] | ||
Amendment Flag | false | |
Entity Registrant Name | PPL ELECTRIC UTILITIES CORP | |
Entity Central Index Key | 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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Operating Revenues | |||
Operating Revenues | $ 2,011 | $ 2,230 | |
Operation | |||
Fuel | 197 | 253 | |
Energy purchases | 233 | 329 | |
Other operation and maintenance | 450 | 456 | |
Depreciation | 229 | 216 | |
Taxes, other than income | 79 | 86 | |
Total Operating Expenses | 1,188 | 1,340 | |
Operating Income | 823 | 890 | |
Other Income (Expense) - net | 61 | 88 | |
Interest Expense | 224 | 209 | |
Income Before Income Taxes | 660 | 769 | |
Income Taxes | 179 | 217 | |
Income from Continuing Operations After Income Taxes | 481 | 552 | |
Income (Loss) from Discontinued Operations (net of income taxes) | 0 | 95 | |
Net Income | $ 481 | $ 647 | |
Income from Continuing Operations After Income Taxes: | |||
Basic (in dollars per share) | $ 0.71 | $ 0.83 | |
Diluted (in dollars per share) | 0.71 | 0.82 | |
Net Income: | |||
Basic (in dollars per share) | 0.71 | 0.97 | |
Diluted (in dollars per share) | 0.71 | 0.96 | |
Dividends Declared Per Share of Common Stock | $ 0.38 | $ 0.3725 | |
Weighted-Average Shares of Common Stock Outstanding (in thousands) | |||
Basic | 675,441 | 666,974 | |
Diluted | 678,817 | 668,732 | |
PPL Electric Utilities Corp [Member] | |||
Operating Revenues | |||
Operating Revenues | $ 585 | $ 630 | |
Operation | |||
Energy purchases | 167 | 227 | |
Energy purchases from affiliates | 0 | 9 | |
Other operation and maintenance | 150 | 133 | |
Depreciation | 59 | 51 | |
Taxes, other than income | 29 | 35 | |
Total Operating Expenses | 405 | 455 | |
Operating Income | 180 | 175 | |
Other Income (Expense) - net | 3 | 2 | |
Interest Expense | 33 | 31 | |
Income Before Income Taxes | 150 | 146 | |
Income Taxes | 56 | 59 | |
Net Income | [1] | 94 | 87 |
LG And E And KU Energy LLC [Member] | |||
Operating Revenues | |||
Operating Revenues | 826 | 899 | |
Operation | |||
Fuel | 198 | 253 | |
Energy purchases | 66 | 92 | |
Other operation and maintenance | 202 | 209 | |
Depreciation | 99 | 95 | |
Taxes, other than income | 15 | 14 | |
Total Operating Expenses | 580 | 663 | |
Operating Income | 246 | 236 | |
Other Income (Expense) - net | (1) | (1) | |
Interest Expense | 49 | 42 | |
Interest Expense with Affiliates | 4 | 0 | |
Income Before Income Taxes | 192 | 193 | |
Income Taxes | 72 | 76 | |
Net Income | [2] | 120 | 117 |
Louisville Gas And Electric Co [Member] | |||
Operating Revenues | |||
Retail and wholesale | 375 | 417 | |
Electric revenue from affiliates | 11 | 22 | |
Operating Revenues | 386 | 439 | |
Operation | |||
Fuel | 78 | 103 | |
Energy purchases | 62 | 88 | |
Energy purchases from affiliates | 2 | 3 | |
Other operation and maintenance | 87 | 96 | |
Depreciation | 41 | 42 | |
Taxes, other than income | 8 | 7 | |
Total Operating Expenses | 278 | 339 | |
Operating Income | 108 | 100 | |
Other Income (Expense) - net | 0 | (1) | |
Interest Expense | 17 | 13 | |
Income Before Income Taxes | 91 | 86 | |
Income Taxes | 35 | 33 | |
Net Income | [1] | 56 | 53 |
Kentucky Utilities Co [Member] | |||
Operating Revenues | |||
Retail and wholesale | 451 | 482 | |
Electric revenue from affiliates | 2 | 3 | |
Operating Revenues | 453 | 485 | |
Operation | |||
Fuel | 120 | 150 | |
Energy purchases | 4 | 4 | |
Energy purchases from affiliates | 11 | 22 | |
Other operation and maintenance | 106 | 104 | |
Depreciation | 58 | 53 | |
Taxes, other than income | 7 | 7 | |
Total Operating Expenses | 306 | 340 | |
Operating Income | 147 | 145 | |
Other Income (Expense) - net | (2) | (1) | |
Interest Expense | 24 | 19 | |
Income Before Income Taxes | 121 | 125 | |
Income Taxes | 46 | 47 | |
Net Income | [2] | $ 75 | $ 78 |
[1] | Net income equals comprehensive income. | ||
[2] | Net income approximates comprehensive income. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Net income | $ 481 | $ 647 | |
Amounts arising during the period - gains (losses), net of tax (expense) benefit: | |||
Foreign currency translation adjustments, net of tax | (464) | (66) | |
Available-for-sale securities, net of tax | 0 | 5 | |
Qualifying derivatives, net of tax | 80 | 6 | |
Defined benefit plans: | |||
Net actuarial gain (loss), net of tax | 0 | (1) | |
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit): | |||
Available-for-sale securities, net of tax | 0 | (1) | |
Qualifying derivatives, net of tax | (78) | (17) | |
Equity investee's other comprehensive (income) loss, net of tax | 0 | (1) | |
Defined benefit plans: | |||
Net actuarial loss, net of tax | 31 | 38 | |
Total other comprehensive income (loss) | (431) | (37) | |
Comprehensive income | 50 | 610 | |
PPL Electric Utilities Corp [Member] | |||
Net income | [1] | 94 | 87 |
LG And E And KU Energy LLC [Member] | |||
Net income | [2] | 120 | 117 |
Defined benefit plans: | |||
Total other comprehensive income (loss) | 1 | ||
Louisville Gas And Electric Co [Member] | |||
Net income | [1] | 56 | 53 |
Kentucky Utilities Co [Member] | |||
Net income | [2] | $ 75 | 78 |
Defined benefit plans: | |||
Total other comprehensive income (loss) | $ (1) | ||
[1] | Net income equals comprehensive income. | ||
[2] | Net income approximates comprehensive income. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Tax effect of foreign currency translation adjustments arising during the period | $ (2) | $ (5) |
Tax effect of available-for-sale securities arising during the period | 0 | (6) |
Tax effect of qualifying derivatives arising during the period | (15) | 4 |
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period | 0 | 0 |
Tax effect of available-for-sale securities reclassified from accumulated other comprehensive income (loss) | 0 | 1 |
Tax effect of qualifying derivatives reclassified from accumulated other comprehensive income (loss) | 19 | 4 |
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss) | 0 | (1) |
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss) | $ (9) | $ (13) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash Flows from Operating Activities | |||
Net Income | $ 481 | $ 647 | |
Income (loss) from discontinued operations (net of income taxes) | 0 | 95 | |
Income from continuing operations (net of income taxes) | 481 | 552 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 229 | 216 | |
Amortization | 18 | 11 | |
Defined benefit plans - (income) expense | (13) | 16 | |
Deferred income taxes and investment tax credits | 162 | 111 | |
Unrealized (gains) losses on derivatives, and other hedging activities | (34) | (52) | |
Stock compensation expense | 13 | 14 | |
Other | (5) | (3) | |
Change in current assets and current liabilities | |||
Accounts receivable | (62) | (128) | |
Accounts payable | (43) | (49) | |
Unbilled revenues | 18 | 34 | |
Fuel, materials and supplies | 25 | 76 | |
Prepayments | (86) | (115) | |
Taxes payable | 15 | 14 | |
Other current liabilities | (66) | (124) | |
Other | 18 | 33 | |
Other operating activities | |||
Defined benefit plans - funding | (123) | (197) | |
Other assets | (5) | (6) | |
Other liabilities | 15 | 49 | |
Net cash provided by (used in) operating activities | 557 | 452 | |
Net cash provided by (used in) operating activities - discontinued operations | 0 | 221 | |
Net cash provided by (used in) operating activities | 557 | 673 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (656) | (833) | |
Expenditures for intangible assets | (6) | (10) | |
Purchases of other investments | 0 | (15) | |
Other investing activities | 1 | (2) | |
Net cash provided by (used in) investing activities | (661) | (860) | |
Net cash provided by (used in) investing activities - discontinued operations | 0 | (130) | |
Net cash provided by (used in) investing activities | (661) | (990) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 224 | 0 | |
Retirement of long-term debt | (224) | 0 | |
Issuance of common stock | 42 | 35 | |
Payment of common stock dividends | (255) | (250) | |
Net increase (decrease) in short-term debt | 351 | 163 | |
Other financing activities | (23) | (14) | |
Net cash provided by (used in) financing activities | 115 | (66) | |
Net cash provided by (used in) financing activities - discontinued operations | 0 | (222) | |
Net cash distributions to parent from discontinued operations | 0 | 191 | |
Net cash provided by (used in) financing activities | 115 | (97) | |
Effect of Exchange Rates on Cash and Cash Equivalents | (33) | (2) | |
Net (Increase) Decrease in Cash and Cash Equivalents included in Discontinued Operations | 0 | 131 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (22) | (285) | |
Cash and Cash Equivalents at Beginning of Period | 836 | 1,399 | |
Cash and Cash Equivalents at End of Period | 814 | 1,114 | |
PPL Electric Utilities Corp [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [1] | 94 | 87 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 59 | 51 | |
Amortization | 7 | 6 | |
Deferred income taxes and investment tax credits | 65 | 5 | |
Other | (3) | 1 | |
Change in current assets and current liabilities | |||
Accounts receivable | (43) | (73) | |
Accounts payable | (2) | (39) | |
Prepayments | (21) | (60) | |
Regulatory assets and liabilities | (21) | 18 | |
Taxes payable | (8) | 5 | |
Other | (7) | (29) | |
Other operating activities | |||
Defined benefit plans - funding | 0 | (33) | |
Other assets | 3 | (1) | |
Other liabilities | 1 | 17 | |
Net cash provided by (used in) operating activities | 124 | (45) | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (214) | (224) | |
Other investing activities | (1) | (1) | |
Net cash provided by (used in) investing activities | (215) | (225) | |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 224 | 0 | |
Retirement of long-term debt | (224) | 0 | |
Contributions from parent | 0 | 50 | |
Payment of common stock dividends to parent | (45) | (44) | |
Net increase (decrease) in short-term debt | 125 | 85 | |
Other financing activities | (2) | 0 | |
Net cash provided by (used in) financing activities | 78 | 91 | |
Net Increase (Decrease) in Cash and Cash Equivalents | (13) | (179) | |
Cash and Cash Equivalents at Beginning of Period | 47 | 214 | |
Cash and Cash Equivalents at End of Period | 34 | 35 | |
LG And E And KU Energy LLC [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [2] | 120 | 117 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 99 | 95 | |
Amortization | 7 | 6 | |
Defined benefit plans - (income) expense | 7 | 11 | |
Deferred income taxes and investment tax credits | 68 | 75 | |
Other | 0 | 17 | |
Change in current assets and current liabilities | |||
Accounts receivable | (15) | (39) | |
Accounts payable | 25 | (18) | |
Accounts payable to affiliates | 5 | 1 | |
Unbilled revenues | 8 | 32 | |
Fuel, materials and supplies | 21 | 71 | |
Income tax receivable | 0 | 134 | |
Taxes payable | (25) | (11) | |
Accrued interest | 42 | 37 | |
Other | (24) | (22) | |
Other operating activities | |||
Defined benefit plans - funding | (33) | (53) | |
Other assets | 0 | (6) | |
Other liabilities | (2) | 4 | |
Net cash provided by (used in) operating activities | 303 | 451 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (219) | (321) | |
Other investing activities | 0 | 4 | |
Net cash provided by (used in) investing activities | (219) | (317) | |
Cash Flows from Financing Activities | |||
Debt issuance and credit facility costs | (1) | 0 | |
Net increase (decrease) in notes payable to affiliates | 93 | (1) | |
Net increase (decrease) in short-term debt | (149) | (91) | |
Distributions to member | (29) | (23) | |
Net cash provided by (used in) financing activities | (86) | (115) | |
Net Increase (Decrease) in Cash and Cash Equivalents | (2) | 19 | |
Cash and Cash Equivalents at Beginning of Period | 30 | 21 | |
Cash and Cash Equivalents at End of Period | 28 | 40 | |
Louisville Gas And Electric Co [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [1] | 56 | 53 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 41 | 42 | |
Amortization | 3 | 3 | |
Defined benefit plans - (income) expense | 3 | 4 | |
Deferred income taxes and investment tax credits | 37 | 31 | |
Other | 0 | 14 | |
Change in current assets and current liabilities | |||
Accounts receivable | (6) | (16) | |
Accounts receivable from affiliates | (4) | 11 | |
Accounts payable | 5 | (15) | |
Unbilled revenues | 7 | 18 | |
Fuel, materials and supplies | 31 | 56 | |
Income tax receivable | 1 | 74 | |
Taxes payable | (9) | (7) | |
Accrued interest | 13 | 9 | |
Other | (9) | (3) | |
Other operating activities | |||
Defined benefit plans - funding | (13) | (22) | |
Other assets | 0 | (1) | |
Other liabilities | 1 | 0 | |
Net cash provided by (used in) operating activities | 157 | 251 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (109) | (173) | |
Net cash provided by (used in) investing activities | (109) | (173) | |
Cash Flows from Financing Activities | |||
Contributions from parent | 30 | 0 | |
Payment of common stock dividends to parent | (25) | (23) | |
Debt issuance and credit facility costs | (1) | 0 | |
Net increase (decrease) in short-term debt | (60) | (48) | |
Net cash provided by (used in) financing activities | (56) | (71) | |
Net Increase (Decrease) in Cash and Cash Equivalents | (8) | 7 | |
Cash and Cash Equivalents at Beginning of Period | 19 | 10 | |
Cash and Cash Equivalents at End of Period | 11 | 17 | |
Kentucky Utilities Co [Member] | |||
Cash Flows from Operating Activities | |||
Net Income | [2] | 75 | 78 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation | 58 | 53 | |
Amortization | 4 | 3 | |
Defined benefit plans - (income) expense | 2 | 3 | |
Deferred income taxes and investment tax credits | 44 | 43 | |
Other | 0 | 2 | |
Change in current assets and current liabilities | |||
Accounts receivable | (8) | (25) | |
Accounts payable | 23 | 1 | |
Accounts payable to affiliates | 2 | (14) | |
Unbilled revenues | 1 | 14 | |
Fuel, materials and supplies | (10) | 15 | |
Income tax receivable | 0 | 60 | |
Taxes payable | (8) | (1) | |
Accrued interest | 22 | 19 | |
Other | 1 | (5) | |
Other operating activities | |||
Defined benefit plans - funding | (10) | (15) | |
Other assets | 0 | (3) | |
Other liabilities | (1) | 1 | |
Net cash provided by (used in) operating activities | 195 | 229 | |
Cash Flows from Investing Activities | |||
Expenditures for property, plant and equipment | (110) | (148) | |
Other investing activities | 0 | 4 | |
Net cash provided by (used in) investing activities | (110) | (144) | |
Cash Flows from Financing Activities | |||
Payment of common stock dividends to parent | (64) | (30) | |
Debt issuance and credit facility costs | (1) | 0 | |
Net increase (decrease) in short-term debt | (14) | (43) | |
Net cash provided by (used in) financing activities | (79) | (73) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 6 | 12 | |
Cash and Cash Equivalents at Beginning of Period | 11 | 11 | |
Cash and Cash Equivalents at End of Period | $ 17 | $ 23 | |
[1] | Net income equals comprehensive income. | ||
[2] | Net income approximates comprehensive income. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current Assets | |||
Cash and cash equivalents | $ 814 | $ 836 | |
Accounts receivable (less reserve:) | |||
Customer | 727 | 673 | |
Other | 50 | 59 | |
Unbilled revenues | 419 | 453 | |
Fuel, materials and supplies | 332 | 357 | |
Prepayments | 150 | 66 | |
Price risk management assets | 183 | 139 | |
Regulatory assets | 26 | 48 | |
Other current assets | 38 | 63 | |
Total Current Assets | 2,713 | 2,646 | |
Property, Plant and Equipment | |||
Regulated utility plant | 33,849 | 34,399 | |
Less: accumulated depreciation - regulated utility plant | 5,731 | 5,683 | |
Regulated utility plant, net | 28,118 | 28,716 | |
Non-regulated property, plant and equipment | 476 | 516 | |
Less: accumulated depreciation - non-regulated property, plant and equipment | 144 | 165 | |
Non-regulated property, plant and equipment, net | 332 | 351 | |
Construction work in progress | 1,382 | 1,315 | |
Property, Plant and Equipment, net | 29,832 | 30,382 | |
Other Noncurrent Assets | |||
Regulatory assets | 1,747 | 1,733 | |
Goodwill | 3,336 | 3,550 | |
Other intangibles | 667 | 679 | |
Price risk management assets | 254 | 156 | |
Other noncurrent assets | 160 | 155 | |
Total Other Noncurrent Assets | 6,164 | 6,273 | |
Total Assets | 38,709 | 39,301 | |
Current Liabilities | |||
Short-term debt | 1,265 | 916 | |
Long-term debt due within one year | 485 | 485 | |
Accounts payable | 707 | 812 | |
Taxes | 96 | 85 | |
Interest | 315 | 303 | |
Dividends | 257 | 255 | |
Customer deposits | 306 | 326 | |
Regulatory liabilities | 119 | 145 | |
Other current liabilities | 516 | 549 | |
Total Current Liabilities | 4,066 | 3,876 | |
Long-term Debt | |||
Long-term Debt | 18,074 | 18,563 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 3,560 | 3,440 | |
Investment tax credits | 127 | 128 | |
Accrued pension obligations | 1,183 | 1,405 | |
Asset retirement obligations | 517 | 536 | |
Regulatory liabilities | 942 | 945 | |
Other deferred credits and noncurrent liabilities | 478 | 489 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 6,807 | $ 6,943 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [1] | $ 7 | $ 7 |
Additional paid-in capital | 9,729 | 9,687 | |
Earnings reinvested | 3,185 | 2,953 | |
Accumulated other comprehensive income (loss) | (3,159) | (2,728) | |
Total Stockholders' Equity | 9,762 | 9,919 | |
Total Liabilities and Equity | 38,709 | 39,301 | |
PPL Electric Utilities Corp [Member] | |||
Current Assets | |||
Cash and cash equivalents | 34 | 47 | |
Accounts receivable (less reserve:) | |||
Customer | 318 | 286 | |
Other | 14 | 10 | |
Unbilled revenues | 86 | 91 | |
Accounts receivable from affiliates | 7 | 0 | |
Fuel, materials and supplies | 31 | 34 | |
Prepayments | 87 | 66 | |
Regulatory assets | 9 | 13 | |
Other current assets | 13 | 21 | |
Total Current Assets | 590 | 555 | |
Property, Plant and Equipment | |||
Regulated utility plant | 8,889 | 8,734 | |
Less: accumulated depreciation - regulated utility plant | 2,616 | 2,573 | |
Regulated utility plant, net | 6,273 | 6,161 | |
Construction work in progress | 591 | 530 | |
Property, Plant and Equipment, net | 6,864 | 6,691 | |
Other Noncurrent Assets | |||
Regulatory assets | 1,003 | 1,006 | |
Other intangibles | 245 | 244 | |
Other noncurrent assets | 18 | 15 | |
Total Other Noncurrent Assets | 1,266 | 1,265 | |
Total Assets | 8,720 | 8,511 | |
Current Liabilities | |||
Short-term debt | 125 | 0 | |
Accounts payable | 300 | 288 | |
Accounts payable to affiliates | 38 | 35 | |
Taxes | 16 | 24 | |
Interest | 31 | 37 | |
Customer deposits | 22 | 31 | |
Regulatory liabilities | 89 | 113 | |
Other current liabilities | 73 | 77 | |
Total Current Liabilities | 694 | 605 | |
Long-term Debt | |||
Long-term Debt | 2,829 | 2,828 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,731 | 1,663 | |
Accrued pension obligations | 184 | 183 | |
Regulatory liabilities | 25 | 22 | |
Other deferred credits and noncurrent liabilities | 89 | 91 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 2,029 | $ 1,959 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [2] | $ 364 | $ 364 |
Additional paid-in capital | 1,934 | 1,934 | |
Earnings reinvested | 870 | 821 | |
Total Stockholders' Equity | 3,168 | 3,119 | |
Total Liabilities and Equity | 8,720 | 8,511 | |
LG And E And KU Energy LLC [Member] | |||
Current Assets | |||
Cash and cash equivalents | 28 | 30 | |
Accounts receivable (less reserve:) | |||
Customer | 225 | 209 | |
Other | 10 | 16 | |
Unbilled revenues | 139 | 147 | |
Fuel, materials and supplies | 277 | 298 | |
Prepayments | 26 | 23 | |
Regulatory assets | 17 | 35 | |
Other current assets | 5 | 7 | |
Total Current Assets | 727 | 765 | |
Property, Plant and Equipment | |||
Regulated utility plant | 12,040 | 11,906 | |
Less: accumulated depreciation - regulated utility plant | 1,260 | 1,163 | |
Regulated utility plant, net | 10,780 | 10,743 | |
Construction work in progress | 669 | 660 | |
Property, Plant and Equipment, net | 11,449 | 11,403 | |
Other Noncurrent Assets | |||
Regulatory assets | 744 | 727 | |
Goodwill | 996 | 996 | |
Other intangibles | 117 | 123 | |
Other noncurrent assets | 78 | 76 | |
Total Other Noncurrent Assets | 1,935 | 1,922 | |
Total Assets | 14,111 | 14,090 | |
Current Liabilities | |||
Short-term debt | 116 | 265 | |
Long-term debt due within one year | 25 | 25 | |
Notes payable with affiliates | 147 | 54 | |
Accounts payable | 232 | 266 | |
Accounts payable to affiliates | 10 | 5 | |
Taxes | 21 | 46 | |
Interest | 74 | 32 | |
Customer deposits | 53 | 52 | |
Price risk management liabilities | 6 | 5 | |
Regulatory liabilities | 30 | 32 | |
Asset retirement obligations | 70 | 50 | |
Other current liabilities | 90 | 135 | |
Total Current Liabilities | 874 | 967 | |
Long-term Debt | |||
Long-term debt | 4,663 | 4,663 | |
Long-term debt to affiliate | 400 | 400 | |
Long-term Debt | 5,063 | 5,063 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,532 | 1,463 | |
Investment tax credits | 127 | 128 | |
Price risk management liabilities | 47 | 42 | |
Accrued pension obligations | 267 | 296 | |
Asset retirement obligations | 470 | 485 | |
Regulatory liabilities | 917 | 923 | |
Other deferred credits and noncurrent liabilities | 205 | 206 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 3,565 | $ 3,543 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Member's Equity | $ 4,609 | $ 4,517 | |
Total Liabilities and Equity | 14,111 | 14,090 | |
Louisville Gas And Electric Co [Member] | |||
Current Assets | |||
Cash and cash equivalents | 11 | 19 | |
Accounts receivable (less reserve:) | |||
Customer | 97 | 92 | |
Other | 6 | 7 | |
Unbilled revenues | 60 | 67 | |
Accounts receivable from affiliates | 16 | 12 | |
Fuel, materials and supplies | 120 | 151 | |
Prepayments | 8 | 5 | |
Income taxes receivable | 3 | 4 | |
Regulatory assets | 7 | 16 | |
Other current assets | 2 | 2 | |
Total Current Assets | 330 | 375 | |
Property, Plant and Equipment | |||
Regulated utility plant | 4,889 | 4,804 | |
Less: accumulated depreciation - regulated utility plant | 441 | 404 | |
Regulated utility plant, net | 4,448 | 4,400 | |
Construction work in progress | 379 | 390 | |
Property, Plant and Equipment, net | 4,827 | 4,790 | |
Other Noncurrent Assets | |||
Regulatory assets | 430 | 424 | |
Goodwill | 389 | 389 | |
Other intangibles | 70 | 73 | |
Other noncurrent assets | 18 | 17 | |
Total Other Noncurrent Assets | 907 | 903 | |
Total Assets | 6,064 | 6,068 | |
Current Liabilities | |||
Short-term debt | 82 | 142 | |
Long-term debt due within one year | 25 | 25 | |
Accounts payable | 137 | 157 | |
Accounts payable to affiliates | 25 | 25 | |
Taxes | 11 | 20 | |
Interest | 24 | 11 | |
Customer deposits | 26 | 26 | |
Price risk management liabilities | 6 | 5 | |
Regulatory liabilities | 8 | 13 | |
Asset retirement obligations | 40 | 25 | |
Other current liabilities | 27 | 39 | |
Total Current Liabilities | 411 | 488 | |
Long-term Debt | |||
Long-term Debt | 1,617 | 1,617 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 867 | 829 | |
Investment tax credits | 34 | 35 | |
Price risk management liabilities | 47 | 42 | |
Accrued pension obligations | 43 | 56 | |
Asset retirement obligations | 136 | 149 | |
Regulatory liabilities | 428 | 431 | |
Other deferred credits and noncurrent liabilities | 90 | 91 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 1,645 | $ 1,633 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [3] | $ 424 | $ 424 |
Additional paid-in capital | 1,641 | 1,611 | |
Earnings reinvested | 326 | 295 | |
Total Stockholders' Equity | 2,391 | 2,330 | |
Total Liabilities and Equity | 6,064 | 6,068 | |
Kentucky Utilities Co [Member] | |||
Current Assets | |||
Cash and cash equivalents | 17 | 11 | |
Accounts receivable (less reserve:) | |||
Customer | 128 | 117 | |
Affiliate | 0 | 1 | |
Other | 3 | 8 | |
Unbilled revenues | 79 | 80 | |
Fuel, materials and supplies | 157 | 147 | |
Prepayments | 8 | 8 | |
Regulatory assets | 10 | 19 | |
Other current assets | 3 | 5 | |
Total Current Assets | 405 | 396 | |
Property, Plant and Equipment | |||
Regulated utility plant | 7,148 | 7,099 | |
Less: accumulated depreciation - regulated utility plant | 819 | 759 | |
Regulated utility plant, net | 6,329 | 6,340 | |
Construction work in progress | 286 | 267 | |
Property, Plant and Equipment, net | 6,615 | 6,607 | |
Other Noncurrent Assets | |||
Regulatory assets | 314 | 303 | |
Goodwill | 607 | 607 | |
Other intangibles | 47 | 50 | |
Other noncurrent assets | 50 | 48 | |
Total Other Noncurrent Assets | 1,018 | 1,008 | |
Total Assets | 8,038 | 8,011 | |
Current Liabilities | |||
Short-term debt | 34 | 48 | |
Accounts payable | 77 | 88 | |
Accounts payable to affiliates | 42 | 39 | |
Taxes | 12 | 20 | |
Interest | 38 | 16 | |
Customer deposits | 27 | 26 | |
Regulatory liabilities | 22 | 19 | |
Asset retirement obligations | 30 | 25 | |
Other current liabilities | 28 | 44 | |
Total Current Liabilities | 310 | 325 | |
Long-term Debt | |||
Long-term Debt | 2,326 | 2,326 | |
Deferred Credits and Other Noncurrent Liabilities | |||
Deferred income taxes | 1,091 | 1,046 | |
Investment tax credits | 93 | 93 | |
Accrued pension obligations | 37 | 46 | |
Asset retirement obligations | 334 | 336 | |
Regulatory liabilities | 489 | 492 | |
Other deferred credits and noncurrent liabilities | 60 | 60 | |
Total Deferred Credits and Other Noncurrent Liabilities | $ 2,104 | $ 2,073 | |
Commitments and Contingent Liabilities | |||
Equity | |||
Common stock | [4] | $ 308 | $ 308 |
Additional paid-in capital | 2,596 | 2,596 | |
Earnings reinvested | 394 | 383 | |
Total Stockholders' Equity | 3,298 | 3,287 | |
Total Liabilities and Equity | $ 8,038 | $ 8,011 | |
[1] | 780,000 shares authorized; 676,384 and 673,857 shares issued and outstanding at March 31, 2016 and December 31, 2015 . | ||
[2] | 170,000 shares authorized; 66,368 shares issued and outstanding at March 31, 2016 and December 31, 2015 . | ||
[3] | 75,000 shares authorized ; 21 , 294 shares issued and outstanding at March 31, 2016 and December 31, 2015 . | ||
[4] | 80,000 shares authorized; 37 , 818 shares issued and outstanding at March 31, 2016 and December 31, 2015 . |
CONDENSED CONSOLIDATED BALANCE7
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 48 | $ 41 |
Equity | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 780,000 | 780,000 |
Common stock shares issued | 676,384 | 673,857 |
Common stock shares outstanding | 676,384 | 673,857 |
PPL Electric Utilities Corp [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 21 | $ 16 |
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 | $ 24 | $ 23 |
Louisville Gas And Electric Co [Member] | ||
Receivables Net Current [Abstract] | ||
Accounts receivable reserve for uncollectible accounts | $ 1 | $ 1 |
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, 2014 | 665,849 | [1] | 66,368 | [2] | 21,294 | [3] | 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] | 1,864 | ||||||||||||||||||||||||||
Common stock issued | 54 | 54 | ||||||||||||||||||||||||||
Stock-based compensation | (7) | (7) | ||||||||||||||||||||||||||
Net income | 647 | 647 | 87 | [5] | 87 | 117 | [6] | 53 | [5] | 53 | 78 | [6] | 78 | |||||||||||||||
Capital contributions from parent | 50 | 50 | ||||||||||||||||||||||||||
Dividends and dividend equivalents | (249) | (249) | ||||||||||||||||||||||||||
Dividends declared on common stock | (44) | (44) | (23) | (23) | (30) | (30) | ||||||||||||||||||||||
Distributions to member | (23) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (37) | (37) | (1) | (1) | ||||||||||||||||||||||||
Balance at end of period - shares at Mar. 31, 2015 | 667,713 | [1] | 66,368 | [2] | 21,294 | [3] | 37,818 | [4] | ||||||||||||||||||||
Balance at end of period at Mar. 31, 2015 | 4,342 | |||||||||||||||||||||||||||
Balance at end of period at Mar. 31, 2015 | $ 14,036 | $ 7 | 9,480 | 6,860 | (2,311) | $ 2,810 | $ 364 | 1,653 | 793 | $ 2,204 | $ 424 | 1,521 | 259 | $ 3,253 | $ 308 | 2,596 | 350 | (1) | ||||||||||
Balance at beginning of period - shares at Dec. 31, 2015 | 673,857 | 673,857 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | ||||||||||||||||
Balance at beginning of period at Dec. 31, 2015 | 4,517 | |||||||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2015 | $ 9,919 | $ 7 | 9,687 | 2,953 | (2,728) | $ 3,119 | $ 364 | 1,934 | 821 | $ 2,330 | $ 424 | 1,611 | 295 | $ 3,287 | $ 308 | 2,596 | 383 | 0 | ||||||||||
Common stock shares issued | [1] | 2,527 | ||||||||||||||||||||||||||
Common stock issued | 70 | 70 | ||||||||||||||||||||||||||
Stock-based compensation | (28) | (28) | ||||||||||||||||||||||||||
Net income | 481 | 481 | 94 | [5] | 94 | 120 | [6] | 56 | [5] | 56 | 75 | [6] | 75 | |||||||||||||||
Capital contributions from parent | 30 | 30 | ||||||||||||||||||||||||||
Dividends and dividend equivalents | (256) | (256) | ||||||||||||||||||||||||||
Dividends declared on common stock | $ (45) | (45) | $ (25) | (25) | $ (64) | (64) | ||||||||||||||||||||||
Distributions to member | (29) | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (431) | (431) | 1 | |||||||||||||||||||||||||
Adoption of stock-based compensation guidance cumulative effect adjustment | $ 7 | 7 | ||||||||||||||||||||||||||
Balance at end of period - shares at Mar. 31, 2016 | 676,384 | 676,384 | [1] | 66,368 | 66,368 | [2] | 21,294 | 21,294 | [3] | 37,818 | 37,818 | [4] | ||||||||||||||||
Balance at end of period at Mar. 31, 2016 | $ 4,609 | |||||||||||||||||||||||||||
Balance at end of period at Mar. 31, 2016 | $ 9,762 | $ 7 | $ 9,729 | $ 3,185 | $ (3,159) | $ 3,168 | $ 364 | $ 1,934 | $ 870 | $ 2,391 | $ 424 | $ 1,641 | $ 326 | $ 3,298 | $ 308 | $ 2,596 | $ 394 | $ 0 | ||||||||||
[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 equals comprehensive income. | |||||||||||||||||||||||||||
[6] | Net income approximates comprehensive income. |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2016Integer | |
Vote per share of PPL's common stock | 1 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 is derived from that Registra nt ' s 2015 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 2015 Form 10-K . The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations. The classification of certain prior period amounts has been changed to conform to the presentation in the March 31, 2016 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. In addition, the Statement of Cash Flows for the three months ended March 31, 2015 separately reports the cash flows of the discontinued operations. See Note 8 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 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 months ended March 31, 2016 , PPL Electric purchased $ 382 million of accounts receivable from unaffiliated third parties. During the three months ended March 31, 2015 , PPL Electric purchased $ 331 million of accounts receivable from unaffiliated third parties and $ 93 million from PPL EnergyPlus . 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 Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffi liated third party. Discount Rate Change for U.K. Pension Plans (PPL) In selecting the discount rate for its U.K. pension plans, WPD historically used a single weighted-average discount rate in the calculation of net periodic defined benefit cost. Effective January 1, 2016, WPD began using individual spot rates to measure service cost and interest cost to calculate net periodic defined benefit cost. For the three months ended March 31, 2016 , this change in discount rate resulted in lower net periodic defined benefit costs recognized on the Statement of Income of $ 11 million ( $ 9 million after-tax or $ 0.01 per share). New Accounting Guidance Adopted (All Registrants) Accounting for Stock-Based Compensation Effective January 1, 2016, the Registrants adopted accounting guidance to simplify the accounting for share-based payment transactions. The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense on the statement of income, eliminates the requirement that excess tax benefits be realized before companies can recognize them and changes the threshold for statutory income tax withholding requirements to qualify for equity classification to the maximum statutory tax rates in the applicable jurisdictions . This guidance also changes the classification of excess tax benefits to an operating activity and employee taxes paid when shares are withheld to satisfy the employer's statutory income tax withholding obligation to a financing activity on the statement of cash flows and allows entities to make a policy election to either estimate forfeitures or recognize them when t hey occur . The adoption of this guidance had the following impacts: Using the required prospective method of transition, PPL recorded a tax benefit of $ 8 million ($0.01 per share) and PPL Electric recorded a tax benefit of $ 5 million re lated to excess tax benefits for awards that were exercised and vested for the period ending March 31, 2016. These amount s w ere recorded to Income taxes o n the Statement s of Income and Deferred income taxes o n the Balance Sheet s . The impact on LKE was not significant. PPL elected to use the prospective method of transition for classifying excess tax benefits as an Operating activity o n the Statement of Cash Flows . The amounts classified as Financing activities in the prior periods were not signific ant. Using the required modified retrospective method of transition , PPL recorded a cumulative effect adjustment of $ 7 million to increase Earnings reinvested and decrease Deferred income taxes on the Balance Sheet related to prior period unrecogn ized excess tax benefits. PPL has historically presented employee taxes paid for net settled awards as a Financing activity on the Statement of Cash Flows. Therefore, there is no transition impact for this requirement. PPL has elected to recognize forfe itures when they occur. Due to past experience of insignificant forfeitures there is no transition impact of this policy election. |
Segment and Related Information
Segment and Related Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment and Related Information [Abstract] | |
Segment and Related Information | 3. Segment and Related Information (PPL) See Note 2 in PPL's 2015 Form 10-K for a discussion of reportable segments and related information. Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are: Three Months 2016 2015 Income Statement Data Revenues from external customers U.K. Regulated $ 595 $ 697 Kentucky Regulated 826 899 Pennsylvania Regulated 585 630 Corporate and Other 5 4 Total $ 2,011 $ 2,230 Net Income U.K. Regulated (a) $ 289 $ 375 Kentucky Regulated 112 109 Pennsylvania Regulated 94 87 Corporate and Other (14) (19) Discontinued Operations (b) 95 Total $ 481 $ 647 March 31, December 31, 2016 2015 Balance Sheet Data Assets U.K. Regulated (c) $ 15,802 $ 16,669 Kentucky Regulated 13,777 13,756 Pennsylvania Regulated 8,720 8,511 Corporate and Other (d) 410 365 Total assets $ 38,709 $ 39,301 (a) Includes unrealized gains and losses from hedging foreign-currency related economic activity . See Note 14 for additional information. (b) See Note 8 for additional information. (c) Includes $11.4 billion and $12.2 billion of net PP&E as of March 31, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP. (d) Primarily consists of unallocated items, including c ash, PP&E and the elimination of inter-segment transactions. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
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 secu rities were converted to common shares as calculated using the T reasury Stock Method . 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 March 31 used in the EPS calculation are: Three Months 2016 2015 Income (Numerator) Income from continuing operations after income taxes $ 481 $ 552 Less amounts allocated to participating securities 2 3 Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted $ 479 $ 549 Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted $ 95 Net income $ 481 $ 647 Less amounts allocated to participating securities 2 3 Net income available to PPL common shareowners - Basic and Diluted $ 479 $ 644 Shares of Common Stock (Denominator) Weighted-average shares - Basic EPS 675,441 666,974 Add incremental non-participating securities: Share-based payment awards 3,376 1,758 Weighted-average shares - Diluted EPS 678,817 668,732 Basic EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.71 $ 0.83 Income (loss) from discontinued operations (net of income taxes) 0.14 Net Income $ 0.71 $ 0.97 Diluted EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.71 $ 0.82 Income (loss) from discontinued operations (net of income taxes) 0.14 Net Income $ 0.71 $ 0.96 For the periods ended March 31, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands): Three Months 2016 2015 Stock-based compensation plans (a) 2,125 1,445 DRIP 402 419 (a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. Three Months 2016 2015 Stock options 696 1,473 Performance units 146 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 5. Income Taxes Reconciliations of income taxes for the periods ended March 31 are as follows. (PPL) Three Months 2016 2015 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 231 $ 269 Increase (decrease) due to: State income taxes, net of federal income tax benefit 13 14 Valuation allowance adjustments 6 9 Impact of lower U.K. income tax rates (54) (62) Interest benefit on U.K. financing entities (5) (7) Stock-based compensation (a) (8) Other (4) (6) Total increase (decrease) (52) (52) Total income taxes $ 179 $ 217 (a) During the three months ended March 31, 2016, PPL recorded an $8 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. (PPL Electric) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 53 $ 51 Increase (decrease) due to: State income taxes, net of federal income tax benefit 9 10 Stock-based compensation (a) (5) Other (1) (2) Total increase (decrease) 3 8 Total income taxes $ 56 $ 59 (a ) During the three months ended March 31, 2016, PPL Electric recorded a $5 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. (LKE) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 67 $ 68 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 7 Valuation allowance adjustments 3 Stock-based compensation (1) Other (1) (2) Total increase (decrease) 5 8 Total income taxes $ 72 $ 76 (LG&E) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 32 $ 30 Increase (decrease) due to: State income taxes, net of federal income tax benefit 3 3 Total increase (decrease) 3 3 Total income taxes $ 35 $ 33 (KU) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 42 $ 44 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 4 Other (1) Total increase (decrease) 4 3 Total income taxes $ 46 $ 47 |
Utility Rate Regulation
Utility Rate Regulation | 3 Months Ended |
Mar. 31, 2016 | |
Utility Rate Regulation [Line Items] | |
Utility Rate Regulation | 6 . Utility Rate Regulation ( All Registrants ) The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. PPL PPL Electric March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Current Regulatory Assets: Environmental cost recovery $ 6 $ 24 Transmission service charge 7 10 $ 7 $ 10 Other 13 14 2 3 Total current regulatory assets (a) $ 26 $ 48 $ 9 $ 13 Noncurrent Regulatory Assets: Defined benefit plans $ 801 $ 809 $ 465 $ 469 Taxes recoverable through future rates 328 326 328 326 Storm costs 84 93 26 30 Unamortized loss on debt 68 68 43 42 Interest rate swaps 145 141 Accumulated cost of removal of utility plant 139 137 139 137 AROs 165 143 Other 17 16 2 2 Total noncurrent regulatory assets $ 1,747 $ 1,733 $ 1,003 $ 1,006 Current Regulatory Liabilities: Generation supply charge $ 30 $ 41 $ 30 $ 41 Demand side management 11 8 Gas supply clause 6 Universal service rider 6 5 6 5 Transmission formula rate 37 48 37 48 Fuel adjustment clause 16 14 Storm damage expense 15 16 15 16 Other 4 7 1 3 Total current regulatory liabilities $ 119 $ 145 $ 89 $ 113 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 693 $ 691 Coal contracts (b) 14 17 Power purchase agreement - OVEC (b) 82 83 Net deferred tax assets 22 23 Act 129 compliance rider 25 22 $ 25 $ 22 Defined benefit plans 24 24 Interest rate swaps 79 82 Other 3 3 Total noncurrent regulatory liabilities $ 942 $ 945 $ 25 $ 22 LKE LG&E KU March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Current Regulatory Assets: Environmental cost recovery $ 6 $ 24 $ 6 $ 13 $ 11 Gas supply clause 1 1 Gas line tracker 1 1 1 1 Other 10 9 1 $ 10 8 Total current regulatory assets $ 17 $ 35 $ 7 $ 16 $ 10 $ 19 Noncurrent Regulatory Assets: Defined benefit plans $ 336 $ 340 $ 211 $ 215 $ 125 $ 125 Storm costs 58 63 32 35 26 28 Unamortized loss on debt 25 26 16 17 9 9 Interest rate swaps 145 141 103 98 42 43 AROs 165 143 64 57 101 86 Plant retirement costs 6 6 6 6 Other 9 8 4 2 5 6 Total noncurrent regulatory assets $ 744 $ 727 $ 430 $ 424 $ 314 $ 303 Current Regulatory Liabilities: Demand side management $ 11 $ 8 $ 5 $ 4 $ 6 $ 4 Gas supply clause 6 6 Fuel adjustment clause 16 14 3 2 13 12 Other 3 4 1 3 3 Total current regulatory liabilities $ 30 $ 32 $ 8 $ 13 $ 22 $ 19 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 693 $ 691 $ 303 $ 301 $ 390 $ 390 Coal contracts (b) 14 17 6 7 8 10 Power purchase agreement - OVEC (b) 82 83 57 57 25 26 Net deferred tax assets 22 23 22 23 Defined benefit plans 24 24 24 24 Interest rate swaps 79 82 39 41 40 41 Other 3 3 1 2 2 1 Total noncurrent regulatory liabilities $ 917 $ 923 $ 428 $ 431 $ 489 $ 492 (a) These amounts are included in "Other current assets" on the Balance Sheets. (b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. Regulatory Matters U.K. Activities ( PPL ) Ofgem Review of Line Loss Calculation In 2014, Ofgem issued its final decision on the DPCR4 line loss incentives and penalties mechanism. WPD began refunding its liability for over-recovery of line losses to customers on April 1, 2015 and will continue through March 31, 2019. The liability at March 31, 2016 was $ 45 million. Kentucky Activities CPCN and ECR Filings (PPL, LKE, LG&E and KU) On January 29, 2016, LG&E and KU submitted applications to the KPSC for CPCNs and for ECR rate treatment regarding upcoming environmental construction projects relating to the EPA’s regulations addressing the handling of coal combustion byproducts and MATS. The construction projects are expected to begin in 2016 and continue through 2023 and are estimated to cost approximately $316 million at LG&E and $678 million at KU. The applications request an authorized 10% return on equity with respect to LG&E’s and KU’s ECR mechanisms consistent with the 2014 Kentucky rate case approved in June 2015. Two parties have been granted intervenor status in the proceedings. Gas Franchise ( LKE and LG&E) LG&E’s existing gas franchise agreement for the Louisville/Jefferson County service area expired o n March 31, 2016. Pursuant to Kentucky law, upon expiration of a franchise, LG&E retains a revocable license to own and operate its facilities and to provide service. LG&E and city representatives are negotiating regarding a new franchise agreement and, in the interim, LG&E continues to provide gas service to customers in this service area at existing rates, but without collecting the prior franchise fee. LG&E cannot predict the outcome of this matter but does not anticipate that it will have a material effect on its financial condition or results of operation. Pennsylvania Activities ( PPL and PPL Electric ) Act 129 Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet specified goals for reduction in customer electricity usage and peak demand by specified dates. EDCs not meeting the requirements of Act 129 are subject to significant penalties. In November 2015, PPL Electric filed with the PUC its Act 129 Phase III Energy Efficiency and Conservation Plan for the period June 1, 2016 through May 31, 2021. In January 2016, PPL Electric and the other parties reached a settlement of all major issues in the case and filed that settlement with the Administrative Law Judge. In March 2016, the PUC issued an Order approving PPL Electric’s Phase III Plan as modified by the settlement, allowing PPL Electric to recover a maximum $ 313 million in program cost over the five- year period June 1, 2016 through May 31, 2021 through the Act 129 compliance rider. Act 129 also requires Default Service Providers (DSP) to provide electricity generation supply service to customers pursuant to a PUC-approved default service procurement plan through auctions, requests for proposal and bilateral contracts at the sole discretion of the DSP. Act 129 requires a mix of spot market purchases, short-term contrac ts and long-term contracts (4 to 20 years), with long-term contracts limited to 25% of load unless otherwise approved by the PUC. A DSP is able to recover the costs associated with its default service procurement plan. PPL Electric has received PUC approval of biannual DSP procurement plans for all periods required under Act 129. In January 2016, PPL Electric filed a Petition for Approval of a new DSP procurement plan with the PUC for the period June 1, 2017 through May 31, 2021. Hearings are sched uled for June 2016. This proceeding remains pending before the PUC. PPL Electric cannot predict the outcome of this proceeding. |
Financing Activities
Financing Activities | 3 Months Ended |
Mar. 31, 2016 | |
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 borr owed below are recorded as "Short-term debt" on the Balance Sheets. The following credit facilities were in place at: March 31, 2016 December 31, 2015 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 Jan. 2021 £ 210 £ 144 £ 72 £ 133 WPD (South West) Syndicated Credit Facility July 2020 245 245 WPD (East Midlands) Syndicated Credit Facility July 2020 300 37 263 WPD (West Midlands) Syndicated Credit Facility July 2020 300 300 Uncommitted Credit Facilities 40 £ 4 36 £ 4 Total U.K. Credit Facilities (a) £ 1,095 £ 181 £ 4 £ 916 £ 133 £ 4 U.S. PPL Capital Funding Syndicated Credit Facility Jan. 2021 $ 700 $ 700 $ 151 Syndicated Credit Facility Nov. 2018 300 73 $ 227 300 Bilateral Credit Facility Mar. 2017 150 17 133 20 Total PPL Capital Funding Credit Facilities $ 1,150 $ 790 $ 360 $ 471 PPL Electric Syndicated Credit Facility Jan. 2021 $ 400 $ 126 $ 274 $ 1 LKE Syndicated Credit Facility (b) Oct. 2018 $ 75 $ 75 $ 75 LG&E Syndicated Credit Facility Dec. 2020 $ 500 $ 82 $ 418 $ 142 KU Syndicated Credit Facility Dec. 2020 $ 400 $ 34 $ 366 $ 48 Letter of Credit Facility Oct. 2017 198 198 198 Total KU Credit Facilities $ 598 $ 232 $ 366 $ 246 (a ) WPD plc 's amounts borrowed at March 31, 2016 and December 31, 2015 were USD-denominated borrowings of $ 200 million for both periods, which bore interest at 1.26% and 1.83% . The unused capacity reflects the amount borrowed in GBP of £ 138 million as of the date borrowed. WPD (East Midlands) amount borrowed at March 31, 2016 was a GBP-denominated borrowing which equated to $ 51 million and bore interest at 0.91% . At March 31, 2016 , the unused capacity under the U.K. credit facilities was approximately $ 1.3 billion. (b) LKE’s interest rate on outstanding bor rowings at December 31, 2015 was 1.68% . PPL, 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: March 31, 2016 December 31, 2015 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Capital Funding 0.85% $ 1,000 $ 773 $ 227 0.78% $ 451 PPL Electric 0.72% 400 125 275 LG&E 0.79% 350 82 268 0.71% 142 KU 0.64% 350 34 316 0.72% 48 Total $ 2,100 $ 1,014 $ 1,086 $ 641 (LKE ) See Note 11 for discussion of intercompany borrowings. Long-term Debt (PPL and PPL Electric) In March 2016, the LCIDA issued $ 116 million of Pollution Control Revenue Refunding Bonds, Series 2016A due 2029 and $ 108 million of Pollution Control Revenue Refunding Bonds, Series 2016B due 2027 on behalf of PPL Electric. The bonds were issued bearing interest at an initial term rate of 0.90% through their mandatory purchase da tes of September 1, 2017 and August 15, 2017 . The proceeds of the bonds were used to redeem $ 116 million of 4.70% Pollution Control Revenue Refunding Bonds, 2005 Series A due 2029 and $ 108 million of 4.75% Pollution Control Revenue Refunding Bonds, 2005 Series B due 2027 previously issued by the LCIDA on behalf of PPL Electric. In connection with the issuance of each of these new series of LCIDA bonds, PPL Electric entered into a loan agreement with the LCIDA pursuant to which the LCIDA has loaned to PPL Electric the proceeds of the LCIDA bonds on payment terms that correspond to the LCIDA bonds. In order to secure its obligations under the loan agreement, PPL Electric issued $ 224 million of First Mortgage Bonds under its 2001 Mortgage Indenture, which also have payment terms that correspond to the LCIDA bonds. (PPL) ATM Program I n February 2015 , PPL filed a registration statement with the SEC and 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 periods ended March 31, 2016 and 2015, PPL did not issue any shares under the a greements. Distributions In February 2016 , PPL declared a quarterly common stock dividend, payable April 1, 2016 , of 38 cents per share (equivalent to $ 1.52 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors . |
Acquisitions, Development and D
Acquisitions, Development and Divestitures | 3 Months Ended |
Mar. 31, 2016 | |
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 Registrants' 2015 Form 10-K for additional information. (PPL) Discontinued Operations Spinoff of PPL Energy Supply In June 2015, PPL and PPL Energy Supply completed the spinoff of PPL Energy Supply which combined its competitive power generation businesses with those of Riverstone to form a new , stand-alone, publicly traded company named Talen Energy. Following completion of the spinoff, PPL shareowners owned 65% of Talen Energy and affiliates of Riverstone owned 35% . The spinoff had no ef fect 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 ow nership interest in or control of Talen Energy and Talen Energy Supply (formerly PPL Energy Supply). See Note 8 in PPL's 2015 Form 10-K for additional information. Continuing Involvement (PPL and PPL Electric) As a result of the spinoff, PPL and PPL Energy Supply entered into a Transition Services Agreement (TSA) that terminates no later than two years after the spinoff . Pursuant to the TSA, PPL is providing Talen Energy certain information technology, financial and accounting, human resource and other specified services. For the three months ended March 31, 2016 , the amounts PPL billed Talen Energy for these services were $ 10 million. In general, the fees for the transition 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 su pply contracts for a portion of the PLR generation supply for PPL Electric, which were retained by Talen Energy Marketing as part of the spinoff. PPL Electric's supply contracts with Talen Energy Marketing extend through November 2016. Energy purchases f rom PPL EnergyPlus 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. For the three months ended March 31, 2016 , PPL Electric’s energy purchases from Talen Ene rgy Marketing were $ 54 million and are no longer considered affiliate transactions. Summarized Results of Discontinued Operations (PPL) The operations of the Supply segment prior to the spinoff on June 1, 2015 are included in “Income (Loss) fr om Discontinued Operations (net of income taxes)” on the Statements of Income. Following are the components of Discontinued Operations in the Statement of Income for the period ended March 31, 2015: Operating revenues $ 944 Operating expenses 767 Other Income (Expense) - net 7 Interest expense (a) 38 Income (loss) before income taxes 146 Income tax expense (benefit) 51 Income (Loss) from Discontinued Operations (net of income taxes) $ 95 (a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized . Development Regional Transmission Line Expansion Plan (PPL and PPL Electric) Northeast/Pocono In October 2012, the FERC issued an order in response to PPL Electric's December 2011 request for ratemaking incentives for the Northeast/Pocono Reliability project (a new 58 -mile, 230 kV transmission line that includes three new substations and upgrades to adjacent facilities). The FERC granted the incentive for inclusion in rate base of all prudently incurred construction work in progress costs but denied the requested incentive for a 100 basis point adder to the return on equity. In December 2012, PPL Electric submitted an application to the PUC requesting permission to s ite and construct the project. In January 2014, the PUC issued a Final Order approving the application. The line was energized in April 2016 , completing the $ 350 million project which includes additional substation security enhancements . Costs related to the project were capitalized and are included on the Balance Sheet s, primari ly in "Regulated utility plant." |
Defined Benefits
Defined Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefits [Abstract] | |
Defined Benefits | 9 . Defined Benefits (PPL, LKE and LG&E) Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital , expense and regulatory assets , including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the three month periods ended March 31 : Pension Benefits Other Postretirement Benefits U.S. U.K. 2016 2015 2016 (b) 2015 2016 2015 PPL Service cost $ 17 $ 30 $ 18 $ 20 $ 2 $ 4 Interest cost 43 57 62 79 6 7 Expected return on plan assets (56) (75) (133) (131) (5) (7) Amortization of: Prior service cost 1 2 Actuarial (gain) loss 15 24 37 39 Net periodic defined benefit costs (credits) (a) $ 20 $ 38 $ (16) $ 7 $ 3 $ 4 LKE Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 17 17 2 2 Expected return on plan assets (21) (22) (2) (1) Amortization of: Prior service cost 1 2 1 1 Actuarial (gain) loss 5 8 Net periodic defined benefit costs (credits) $ 8 $ 12 $ 2 $ 3 LG&E Interest cost $ 3 $ 3 Expected return on plan assets (5) (5) Amortization of: Prior service cost 1 1 Actuarial (gain) loss 2 3 Net periodic defined benefit costs (credits) $ 1 $ 2 (a) For the three months ended March 31, 2015 , the total net periodic defined benefit cost includes $ 11 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff. (b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans. (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 March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU . Three Months 2016 2015 PPL Electric $ 6 $ 8 LG&E 2 3 KU 3 5 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10 . Commitments and Contingencies Legal Matters (All Registrants) PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted. WKE Indemnification (PPL and LKE) See footnote (e) to the table in "Guarantees and Other Assurances" below for information on an LKE indemnity relating to its former WKE lease, including related leg al proceedings. (PPL, LKE, LG&E and KU) Cane Run Environmental Claims In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky alleging violations of the Clean Air Act and RCRA. In addition, these plaintiffs assert common law claims of nuisance, trespass and negligence. These plaintiffs seek injunctive relief and civil penalties, plus c osts 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. Oral argument before the Sixth Circuit was held in August 2015. In Nove mber 2015, the Sixth Circuit issued an opinion affirming the District Court's ruling that plaintiffs' state law claims are not preempted by the Clean Air Act and remanding the matter to the District Court for further proceedings. Certain discovery matters are before the District 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 for the Western District of Kentucky for alleged violations of the Clean Water Act. The Sierra Club alleges that various discharges at the Mill Creek plant constitute violations of the plant's water discharge permit. The Sierra Club seeks civil penalties, injunctive relief, 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. Discovery proceedings are underway and the parties have also conducted limited settlement discussions in the matter. PPL, LKE and LG&E cannot predict the outcome of this matter or the potential impact on the operations of the Mill Creek plant, including increased capital or operating costs, if any, 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 dis charges at the E.W. Brown plant in violation of applicable rules and the plant's water discharge permit. The claimant asserts that, unless the alleged discharges are promptly brought into compliance, it intends to seek civil penalties, injunctive relief a nd attorney's fees. In November 2015, the claimants submitted an amended notice of intent to add the Kentucky Waterways Alliance as a claimant. The parties have conducted limited settlement discussions in the matter. PPL, LKE and KU cannot predict the o utcome of this matter or the potential impact on the operations of the E. W. Brown plant, including increased capital or operating costs, if any. 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 Trimble County Unit 2 baseload coal-fired generating unit, but the agency upheld the permit in an order issued in September 2007. In resp onse 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 envi ronmental groups petitioned the EPA to object to the revised state permit. Until the EPA issues a final ruling on the pending petition and all available appeals are exhausted, PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potentia l impact on the operations of the Trimble County plant, including increased capital or operating costs, if any. Trimble County Water Discharge Permit In May 2010, the Kentucky Waterways Alliance and other environmental groups filed a petition with the Ke ntucky Energy and Environment Cabinet (KEEC) challenging the Kentucky Pollutant Discharge Elimination System permit issued in April 2010, which covers water discharges from the Trimble County plant. In November 2010, the KEEC issued a final order upholdin g the permit t hat was subsequently appealed by the environmental 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, the Court of Appeals upheld the lower court ruling. On February 10, 2016, the Kentucky Supreme Court issued an order granting discretionary review. PPL, LKE, LG&E and KU are unable to predict th e outcome of this matter or the potential impact on the operations of the Trimble County plant, including increased capital or operating costs, if any. 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 system . The FERC oversees this process and independently enforces the Reliability Standards. The Reliability Standards have the force and effect of law and apply to certain users of the bulk power electricity system, including electric utility companies, gene rators 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 Reliabi lity 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. Any Reg ional Reliability Entity (including RFC or SERC) determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC. In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and cannot es timate a range of reasonably possible losses, if any. 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 co mpanies' 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 a ssurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities. ( PPL, LKE, LG&E and KU ) Air The Clean Air Act, which regulates air pollutants from mobile and stationary sources, has a significant impact on the operation of fossil fuel plants. The Clean 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 a s NAAQS. The six criteria pollutants are carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter , and sulfur dioxide. Federal environmental regulations of these criteria pollutants require states to adopt implementation plans, known as state i mplementation plans, for certain pollutants, 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 t hat do not (non-attainment areas), and must develop a state implementation plan 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 particula tes standards, states in the eastern portion of the country, 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 state implementation plans, o r future revisions to regional programs, may require installation 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 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 determi ne attainment with the new ozone standard through review of relevant ambient air monitoring data, with attainment or nonattainment designations scheduled no later than October 2017. States are also obligated to address interstate transport issues associat ed 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 fina lized revised NAAQS for sulfur dioxide and required states to identify areas that meet those standards and areas that are in "non-attainment". In July 2013, the EPA finalized non-attainment designations for parts of the country, including part of Jefferso n County in Kentucky. Attainment must be achieved by 2018. PPL, LKE, LG&E and 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 generati ng units at LG&E’s Cane Run plant and KU’s Green River plant, 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 reductions 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 state s and was upheld by the U.S. Court of Appeals for the D. C. Circuit 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 in June 2015, the Supreme Court held that the EPA failed to properly consider costs when deciding to regulate hazardous air emissions from power plants under MATS. The Supreme Court remanded the matter to the D.C. Circuit Court, which in December 2015 remanded the rule to EPA without vacati ng it. The EPA has proposed a supplemental finding regarding costs of the rule and has announced that it intends to make a final determination in 2016. The EPA's MATS rule remains in effect during the pendency of the ongoing proceedings. LG&E and KU ha ve installed significant controls in connection with the MATS rule and in conjunction with compliance with other environmental requirements, including fabric-filter baghouses , upgraded scrubbers or chemical additive systems for which appropriate KPSC autho rization and/or ECR treatment has been received. LG&E and KU are seeking KPSC approval for a compliance plan providing for installation of additional MATS-related controls ; however, the estimated cost of these controls is not expected to be significant fo r either LG&E or KU . PPL, LKE, LG&E and KU cannot predict the outcome of the MATS rule or its potential impact, if any, on plant operations, rate treatment or future capital or operating needs. See Note 6 for additional information. New Source Review (NS R) The NSR litigation brought by the EPA, states and environmental groups against coal-fired generating plants in past years continues to proceed through the courts. Although none of this litigation directly involves PPL, LKE, LG&E or KU, it can influenc e the permitting of large capital projects at LG&E ’s and KU's power plants, the costs of which cannot presently be determined but could be significant. Climate Change There is continuing attention focused on issues related to climate change. Most recently, in December 2015, 195 nations, including the U.S., signed the Paris Agreement on Climate which establishes a comprehensive framework for the reduction of greenhouse gas ( GHG ) emissions from both developed and developing nat ions. Although the agreement does not establish binding reduction requirements, it requires each nation to prepare, communicate and maintain GHG reduction commitments. Reductions can currently be achieved in a variety of ways , including energy conservati on, power plant efficiency improvements, reduced utilization of coal-fired generation, or replacing coal-fired generation with natural gas or renewable generation. Based on EPA's Clean Power Plan described below, the U.S. has committed to an initial reduc tion target of 26% to 28% below 2005 levels by 2025. The EPA's Rules under Section 111 of the Clean Air Act As further described below, the EPA finalized rules imposing GHG emission standards for both new and existing power plants. The EPA has also is sued a proposed federal implementation plan that would apply to any states that fail to submit an acceptable state implementation plan under these rules. The EPA's authority to promulgate these regulations under Section 111 of the Clean Air Act has been c hallenged in the D.C. Circuit Court by several states and industry groups. On February 9, 2016, the Supreme Court stayed the rule for existing plants (the Clean Power Plan) pending the D.C. Circuit Court's review and subsequent review by the Supreme Court if a writ of certiorari is filed and granted. The EPA's rule for new power plants imposes separate emission standards for coal and natural gas units based on the application of different technologies. The coal standard is based on the application of partial carbon capture and sequestration technology, but because this technology is not presently commercially available, the rule effectively precludes the construction of new coal-fired plants. The standard for NGCC power plants is the same as the EPA p roposed 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. 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 Clean Power Plan contains state-specific rate-based and mass-based reduction goals and guidelines for the development, submission an d implementation of state implementation plans to achieve the state goals. State-specific goals were calculated from 2012 data by applying the 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 plans 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 collaborations. Under the rate-based approach, Kentucky would need to make a 41% reduction from its 2012 emiss ions 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 significant challenges to the state. If the Clean Power Plan is ultimately upheld and Kentucky fails to develop an approvable implementation plan by the applicable deadline, the EPA would impose a federal implementation plan that could be more stringent than what the state plan might provide. Depending on the provisions of the Kentucky implementat ion plan, LG&E and KU may need to modify their current portfolio of generating assets during the 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 lev el . Various states, industry groups, and individual companies including LKE have filed petitions for reconsideration with EPA and petitions for review with the D.C. Circuit Court challenging the Clean Power Plan. On February 9, 2016, the Supreme Court stayed the rule pending the D.C. Circuit Court’s review. 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 costs . PPL, LKE, LG&E and KU b elieve 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 perf ormance 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 ava ilable at each power plant, rather than renewable energy, end-use energy efficiency, fuel switching and re-dispatch. These statutory restrictions may make it more difficult for Kentucky to achieve the GHG reduction levels that the EPA has established for Kentucky. 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 impos es extensive new requirements, including location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements on CCR impoundments and landfills that are located on active power plants and not closed. Under the rule, the EPA will regulate CCRs as non-hazardous under Subtitle D of RCRA and allow beneficial use of CCRs, with some restrictions. The rule's requirements for covered CCR impoundments and landfills include implementation of groundwater monitoring and commencement or completion of closure activities generally between three and ten years from certain triggering events. This self-implementing rule requires posting of compliance documentation on a publicly acce ssible website and is enforceable solely through citizen suits. LG&E and KU are also subject to state rules applicable to CCR management which may potentially be modified to reflect some or all requirements of the federal rule. I ndustry groups, environme ntal groups, in dividual companies and others have filed legal challenges to the final rule which are pending before the D.C. Circuit Court of Appeals. LG&E and KU are pursuing KPSC approval for a compliance plan providing for construction of additional landfill capacity at the Brown Station, closure of impoundments at the Mill Creek, Trimble County, Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compl iance with federal CCR rule requirements, LG&E and KU are also proposing to close impoundments at the retired Green River, Pineville, and Tyrone plants to comply with applicable state law requirements. PPL, LKE, LG&E, and KU estimate the cost of these CCR compliance measures at $311 million for LG&E and $661 million for KU. See Note 6 for additional information. In connection with the final CCR rule, LG&E and KU recorded increases to existing AROs during 2015. See Note 1 6 for additional information. Fu rther 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. Costs relating to this rule are subject to rate recovery. Clean Water Act Regulations under the federal Clean Water Act dictate permitting and mitigati on requirements for many of LG&E’s and KU’s facilities and 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 temperature of effluent disc harges and the location, design and construction of cooling water intake structures at generating facilities, standar ds intended to protect aquatic organisms by reducing capture in the screens attached to cooling water intake structures (impingement) a t generating facilities and the water volume brought into the facilities (entrainment). The requirements could impose si gnificant 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 f acilities. The rule provides strict technology-based discharge limitations for control of pollutants in scrubber wastewater, fly ash and bottom ash transport water, mercury control wastewater, gasification wastewater, and combustion residual leachate. Th e new guidelines require deployment of additional control technologies providing physical, chemical, 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 generating 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 has not been decided how Kentucky intends to integrate the ELGs into its routine permit renewal process. I ndustry groups, environmental g roups, individual companies and others have filed legal challenges to the final rule which have been consolidated before the 5 th Circuit Court of Appeals . LG&E and KU are developing compliance strategies and schedules . PPL, LKE, LG&E and KU are unable to fully estimate compliance costs or timing at this time 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. 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 s ite-specific determinations under the rule. The rule requires existing facilities to choose between several options to reduce the impact to aquatic organisms that become trapped against water intake screens (impingement) and to determine the intake struct ure'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 technology to comply with the rule. Based on studies conducted by LG&E and KU to date, all plants will incur only insignificant operational costs. In addition, LG&E’s Mill Creek Unit 1 is expected to incur capital costs. PPL, LKE, LG&E and KU are evalu ating 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 in effect anywhere in the United States. The ultimate outcome of the court's review of the rule remains uncertain. Beca use of the strict permitting programs already in place in Kentucky and Pennsylvania, t he Registrants do not expect the rule to have a significant impact on their operations. Other Issues The EPA is reassessing its p olychlorinated biphenyls (PCB) regulations under the Toxic Substance Control Act, which 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-o ut of all or some PCB-containing equipment. The EPA has postponed the release of the revised regulations to June 2016 . The Registrants cannot predict at this time the outcome of these proposed EPA regulations and what impact, if any, they would have on t heir facilities, but the costs could be significant. 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 Pl ant 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 fu ture, however, or should PPL Electric's share of costs at multi-party sites increase substantially more than expected, the costs could be significant. PPL Electric, LG&E and KU are investigating, responding to agency inquiries, remediating, or have comple ted the remediation of, several sites that were not addressed under a regulatory program such as Superfund, but for which PPL Electric, LG&E and KU may be liable for remediation. These include a number of former coal gas manufacturing plants in Pennsylvan ia and Kentucky previously owned or operated or currently owned by predecessors or affiliates of PPL Electric, LG&E and KU. To date, the costs of these sites have not been significant. There are additional sites, formerly owned or operated by PPL Electri c, LG&E and KU predecessors or affiliates. LG&E and KU lack information on the conditions of such additional sites and are therefore unable to estimate any potential liability they may have or a range of reasonably possible losses, if any, related to thes e matters. At March 31, 2016 and December 31, 2015, PPL Electric has a liability of $10 million representing its best estimate of the probable loss incurred to remediate additional sites previously owned or operated by PPL Electric predecessors or affilia tes. Depending on the outcome of investigations at sites where investigations have not begun or been completed or developments at sites for which information is incomplete, the costs of remediation and other liabilities could be significant and may be as much as approximately $30 million. The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result of the EPA's evaluation, individual states may establish str icter standards for water quality and soil cleanup. This could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters. From time to time, PPL's subsidiaries undertake remedial action in response to notices of violations, spills or other releases at various on-site and off-site locations, negotiate with the EPA and state and local agencies regarding actions necessary for compliance with applicable requirements, negotiate with property owners and other third parties alleging impacts from PPL's operations and undertake similar actions necessary to resolve environm ental matters that arise in the course of normal operations. Based on analyses to date, resolution of these environmental matters is not expected to have a significant adverse impact on the operations of PPL Electric, LG&E and KU. Future cleanup or remediation work at sites under review, or at sites not yet identified, may result in significant additional costs for PPL, PPL Electric, LKE, LG&E and KU. Insurance policies maintained by LKE, LG&E and KU may be applicable to certain of the costs or other obligations related to these matters but the amount of insurance coverage or reimbursement cannot be estimated or assured. Environmental Matters - WPD (PPL ) WPD's distribution businesses are subject to certain statutory and regulatory environmental requirements. In connection with the matters discussed below, it may be necessary for WPD to incur significant compliance costs, which costs may be recoverable through rates subject to the approval of Ofgem . PPL believes that WPD has taken and continues to take measures to comply with all applicable environmental laws and regulations. European Union Creosote Ban In 2011, the European Commission amended the European Union Biocides Directive to ban the use of creosote in contact with soil. Creosote is a wood preservative used to extend the life of wooden poles that support power lines. Although European Union member countr ies were required to pass implementing laws by 2012, the U.K. has not passed an implementing law and there are no legal penalties for failing to do so. If the U.K. were to pass an implementing law, WPD's creosote-treated wood poles would need to be replac ed with an acceptable alternative at the time of routine repl |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
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 pric e 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 c ustomers 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. Support Costs (PPL Electric, LKE, LG&E and KU) PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services . PPL EU Services provide s the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provide s certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. G en eral costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipient s' i nvested 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 infor mat ion. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 I n 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 March 31, 2016 and December 31, 2015 , $ 147 million and $ 54 million were outstanding and were reflected in “Notes payable with affiliate” on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2016 and December 31, 2015 were 1.94% and 1.74% . Interest on the revolving line of credit was not significant for the three months ended March 31, 2016 an d 2015 . LKE has a $ 400 million ten-year note with a PPL af filiate with an interest rate of 3.5% . At March 31, 2016 , the note was reflected in "Long-term debt to affiliate" on the Balance Sh eet. 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 pric e 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 c ustomers 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. Support Costs (PPL Electric, LKE, LG&E and KU) PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services . PPL EU Services provide s the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provide s certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. G en eral costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipient s' i nvested 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 infor mat ion. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 I n 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 March 31, 2016 and December 31, 2015 , $ 147 million and $ 54 million were outstanding and were reflected in “Notes payable with affiliate” on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2016 and December 31, 2015 were 1.94% and 1.74% . Interest on the revolving line of credit was not significant for the three months ended March 31, 2016 an d 2015 . LKE has a $ 400 million ten-year note with a PPL af filiate with an interest rate of 3.5% . At March 31, 2016 , the note was reflected in "Long-term debt to affiliate" on the Balance Sh eet. 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 pric e 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 c ustomers 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. Support Costs (PPL Electric, LKE, LG&E and KU) PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services . PPL EU Services provide s the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provide s certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. G en eral costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipient s' i nvested 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 infor mat ion. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 I n 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 March 31, 2016 and December 31, 2015 , $ 147 million and $ 54 million were outstanding and were reflected in “Notes payable with affiliate” on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2016 and December 31, 2015 were 1.94% and 1.74% . Interest on the revolving line of credit was not significant for the three months ended March 31, 2016 an d 2015 . LKE has a $ 400 million ten-year note with a PPL af filiate with an interest rate of 3.5% . At March 31, 2016 , the note was reflected in "Long-term debt to affiliate" on the Balance Sh eet. 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 pric e 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 c ustomers 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. Support Costs (PPL Electric, LKE, LG&E and KU) PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services . PPL EU Services provide s the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provide s certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. G en eral costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipient s' i nvested 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 infor mat ion. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 I n 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 March 31, 2016 and December 31, 2015 , $ 147 million and $ 54 million were outstanding and were reflected in “Notes payable with affiliate” on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at March 31, 2016 and December 31, 2015 were 1.94% and 1.74% . Interest on the revolving line of credit was not significant for the three months ended March 31, 2016 an d 2015 . LKE has a $ 400 million ten-year note with a PPL af filiate with an interest rate of 3.5% . At March 31, 2016 , the note was reflected in "Long-term debt to affiliate" on the Balance Sh eet. Other (PPL Electric, LG&E and KU) See Note 9 for discussions regarding intercompany allocations associated with defined benefits. |
Other Income (Expense) - net
Other Income (Expense) - net | 3 Months Ended |
Mar. 31, 2016 | |
Other Income (Expense) Net [Abstract] | |
Other Income (Expense) - net | 12 . Other Income (Expense) - net (PPL) " Other Income (Expense) - net " for the three months ended March 31, 2016 and 2015 consisted primarily of gains on foreign currency contracts to economically hedge PPL’s translation risk related to its GBP denominated earnings in the U.K . See Note 14 for additional information on these derivatives. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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 an asset or liability, as ap propriate. 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 asset or liability. These i nputs 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-repor ting-period values. During the three months ended March 31, 2016 and 2015 , there were no transfers between Level 1 and Level 2. See Note 1 in each Registrant's 2015 Form 10-K for information on the levels in the fair value hierarchy. Rec urring Fair Value Measurements The assets and liabilities measured at fair value were: March 31, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 814 $ 814 $ 836 $ 836 Restricted cash and cash equivalents (a) 32 32 33 33 Price risk management assets (b): Foreign currency contracts 249 $ 249 209 $ 209 Cross-currency swaps 188 188 86 86 Total price risk management assets 437 437 295 295 Auction rate securities (c) 2 $ 2 2 $ 2 Total assets $ 1,285 $ 846 $ 437 $ 2 $ 1,166 $ 869 $ 295 $ 2 Liabilities Price risk management liabilities (b): Interest rate swaps $ 95 $ 95 $ 71 $ 71 Foreign currency contracts 3 3 1 1 Total price risk management liabilities $ 98 $ 98 $ 72 $ 72 PPL Electric Assets Cash and cash equivalents $ 34 $ 34 $ 47 $ 47 Restricted cash and cash equivalents (a) 2 2 2 2 Total assets $ 36 $ 36 $ 49 $ 49 LKE Assets Cash and cash equivalents $ 28 $ 28 $ 30 $ 30 Cash collateral posted to counterparties (d) 8 8 9 9 Total assets $ 36 $ 36 $ 39 $ 39 Liabilities Price risk management liabilities: Interest rate swaps $ 53 $ 53 $ 47 $ 47 Total price risk management liabilities $ 53 $ 53 $ 47 $ 47 LG&E Assets Cash and cash equivalents $ 11 $ 11 $ 19 $ 19 Cash collateral posted to counterparties (d) 8 8 9 9 Total assets $ 19 $ 19 $ 28 $ 28 Liabilities Price risk management liabilities: Interest rate swaps $ 53 $ 53 $ 47 $ 47 Total price risk management liabilities $ 53 $ 53 $ 47 $ 47 KU Assets Cash and cash equivalents $ 17 $ 17 $ 11 $ 11 Total assets $ 17 $ 17 $ 11 $ 11 (a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. (b) Current portion is included in "Price risk management assets" and "Other current liabilities" and n oncurrent portion is included in "Price risk management 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 counterparties 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 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. Financial Instruments Not Recorded at Fair Value (All Registrants) The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below . The fair values were estimated using an income approach by discounting future cash flows at estimated current cost of funding rates, which incorporate the credit risk of the Registrants. Long-term debt is classified as Level 2. The effect of third-par ty credit enhancements is not included in the fair value measurement. March 31, 2016 December 31, 2015 Carrying Carrying Amount (a) Fair Value Amount (a) Fair Value PPL $ 18,559 $ 21,046 $ 19,048 $ 21,218 PPL Electric 2,829 3,216 2,828 3,088 LKE 5,088 5,625 5,088 5,384 LG&E 1,642 1,779 1,642 1,704 KU 2,326 2,587 2,326 2,467 (a) A mount s are net of debt issuance costs. 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 Risk Management Committee, comprised of senior management and chaired by the Director – Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and t ransaction limits, value-at-risk analyses ( VaR , a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Ente rprise Risk Management 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 orwar d contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and foreign currency exchange rates. Many of the contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected . The following summarizes the market risks that affect PPL and its subsidiaries. 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 and derivatives held by defined benefit plans. This risk is significantly mit igated to the extent 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 ri sk primarily associated 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. 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 commodity price risk by entering into full-requirement supply agreements to serve its PLR customers. These supply agreements transfer the commodity price risk associated with the PLR obligation to the energy suppliers. LG&E's and KU's rates include certain mechanisms for fuel and fue l-related expenses. In addition, LG&E's rates include a mechanism for natural gas supply expenses . These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses. Volumetric risk PPL is exposed to volumetric 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. Under the RIIO – ED1 price control period, recovery of such exposure occur s on a two year lag. See Note 1 in PPL’s 2015 Form 10-K for additional information on revenue recognition under RIIO - ED1. PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases . Equity securities price risk PPL and its subsidiaries are exposed to equity securities price risk associated with defined benefit plans. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place. 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 disc ussed 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 polici es in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisi ons, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net wo rth 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 obl igation to return cash collateral (a payable) under master netting arrangements. PPL had an obligation to return $ 15 million of cash collateral under master netting arrangements at March 31, 2016 and no obligation to return c ash collateral under master netting arrangements at December 31, 2015 . LKE, LG&E and KU had no obligation to return cash collateral under master netting arrangements at March 31, 2016 and December 31, 2015 . PPL, LKE and LG&E posted $ 8 million and $ 9 million of cash collateral under master netting arrangements at March 31, 2016 and December 31, 2015 . KU did not post any cash collateral under master netting arrangements at March 31, 2016 and December 31, 2015 . 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 (All Registrants ) 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. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases. 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 March 31, 2016 , PPL held an aggregate notional value in inte rest rate swap contracts of $ 300 million that range in maturity through 2026 . At March 31, 2016 , PPL held an aggregate notional value in cross-currency interest rate swap contracts of $ 1.3 billion that range in maturity from 2016 through 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. For the three months ended March 31, 2016 and 2015 , PPL had no 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 t he end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring . For the three months ended March 31, 2016 , PPL had an insignificant amount of cash flow hedges reclassified into earnings associated with discontinued cash flow hedges and no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges for the three months ended March 31, 2015 . At March 31, 2016 , 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. 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 lo sses 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. Rea lized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded . At March 31, 2016 , 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 March 31, 2016 had a notional amount of £ 116 million (app roximately $ 180 million based on contracted rates). The settlement dates of these contracts range from April 2016 through June 2016 . At March 31, 2016 , PPL had $ 21 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI, compared to $ 19 million at December 31, 2015 . Economic Activity PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings. At March 31, 2016 , the total exposure hedged by PPL was approximately £ 2.0 billion (approximately $ 3.1 billion based on contracted rates). These contracts had termination dates ranging from April 2016 through November 2018 . 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 in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's and KU's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at March 31, 2016 and December 31, 2015 . See Notes 1 and 17 in each Registrant's 2015 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 . March 31, 2016 December 31, 2015 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) $ 42 $ 6 $ 24 $ 5 Cross-currency swaps (b) $ 71 $ 35 Foreign currency contracts 12 $ 100 3 10 $ 94 1 Total current 83 42 100 9 45 24 94 6 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps (b) 47 42 Cross-currency swaps (b) 117 51 Foreign currency contracts 137 105 Total noncurrent 117 137 47 51 105 42 Total derivatives $ 200 $ 42 $ 237 $ 56 $ 96 $ 24 $ 199 $ 48 (a) Current portion is included in " Price risk management assets " and "Other current liabilities" and noncurrent portion is included in " Price risk management 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 three months ended March 31. 2016 2015 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 2016 2015 on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (18) $ (19) Interest expense $ (1) $ (4) Cross-currency swaps 113 21 Interest expense 1 1 Other income (expense) - net 97 17 Commodity contracts Discontinued operations 7 Total $ 95 $ 2 $ 97 $ 21 Net Investment Hedges: Foreign currency contracts $ 3 $ 16 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative 2016 2015 Foreign currency contracts Other income (expense) - net $ 60 $ 88 Interest rate swaps Interest expense (2) (2) Total $ 58 $ 86 Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets 2016 2015 Interest rate swaps Regulatory assets- noncurrent $ (56) Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (6) $ (4) (LKE) 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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (56) (LG&E) 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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (28) (KU) 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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (28) (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 . March 31, 2016 December 31, 2015 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 6 $ 5 Total current 6 5 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps 47 42 Total noncurrent 47 42 Total derivatives $ 53 $ 47 (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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives 2016 2015 Interest rate swaps Interest expense $ (2) $ (2) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (6) $ (4) ( 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 March 31, 2016 Treasury Derivatives PPL $ 437 $ 45 $ 15 $ 377 $ 98 $ 45 $ 8 $ 45 LKE 53 8 45 LG&E 53 8 45 December 31, 2015 Treasury Derivatives PPL $ 295 $ 25 $ 270 $ 72 $ 25 $ 9 $ 38 LKE 47 9 38 LG&E 47 9 38 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 rating w ere to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing f ull 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 reason able concerns regarding the performance of PPL's, LKE ' s, LG&E ' s, and KU ' s obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash a nd 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 March 31, 2016 , derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related eff ect 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 $ 31 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 8 8 8 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 23 22 22 (a) Includes the effect of net receivables and payables alread y recorded on the Balance Sheet. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | 15 . Goodwill (PPL) The change in the carrying amount of goodwill for the three months ended March 31, 2016 was due to the effect of foreign currency exchange rates on the U.K. Regulated segment. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 LKE’s, LG&E’s and KU’s ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 LKE’s, LG&E’s and KU’s ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 LKE’s, LG&E’s and KU’s ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 LKE’s, LG&E’s and KU’s ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Accumulated Other Comprehensive Income (Loss) | 17 . Accumulated Other Comprehensive Income (Loss) (PPL) The after-tax changes in AOCI by component for the three month periods ended March 31 were as follows. Foreign Unrealized gains (losses) Defined benefit plans currency Available- Equity Prior Actuarial translation for-sale Qualifying investees' service gain adjustments securities derivatives AOCI costs (loss) Total December 31, 2015 $ (520) $ (7) $ (6) $ (2,195) $ (2,728) Amounts arising during the period (464) 80 (384) Reclassifications from AOCI (78) 31 (47) Net OCI during the period (464) 2 31 (431) March 31, 2016 $ (984) $ (5) $ (6) $ (2,164) $ (3,159) December 31, 2014 $ (286) $ 201 $ 20 $ 1 $ 3 $ (2,213) $ (2,274) Amounts arising during the period (66) 5 6 (1) (56) Reclassifications from AOCI (1) (17) (1) 38 19 Net OCI during the period (66) 4 (11) (1) 37 (37) March 31, 2015 $ (352) $ 205 $ 9 $ $ 3 $ (2,176) $ (2,311) The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the three month periods ended March 31. The defined benefit plan components of AOCI are not reflected in their entirety in the Statement of I ncome during the periods; rather, they are included in the computation of net periodic defined benefit costs (credits) and subject to capitalization. See Note 9 for additional information. Three Months Affected Line Item on the Details about AOCI 2016 2015 Statements of Income Available-for-sale securities $ 2 Other Income (Expense) - net Total Pre-tax 2 Income Taxes (1) Total After-tax 1 Qualifying derivatives Interest rate swaps $ (1) (4) Interest Expense Cross-currency swaps 97 17 Other Income (Expense) - net 1 1 Interest Expense Commodity contracts 7 Discontinued operations Total Pre-tax 97 21 Income Taxes (19) (4) Total After-tax 78 17 Equity investees' AOCI 2 Other Income (Expense) - net Total Pre-tax 2 Income Taxes (1) Total After-tax 1 Defined benefit plans Net actuarial loss (40) (51) Total Pre-tax (40) (51) Income Taxes 9 13 Total After-tax (31) (38) Total reclassifications during the period $ 47 $ (19) |
New Accounting Guidance Pending
New Accounting Guidance Pending Adoption | 3 Months Ended |
Mar. 31, 2016 | |
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. Accounting for Leases In February 2016, the FASB issue d accounting guidance for leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purpose s, the FASB retained a dual model for lessees, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. Lessor accounting under the new guidance is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Similar to current practice , lessors will classify leases as operating, direct financing, or sales-type. The standard is effective for public c ompanies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedie nts. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Registrants are currently assessing the impact of adopting this guidance. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 , PPL Electric purchased $ 382 million of accounts receivable from unaffiliated third parties. During the three months ended March 31, 2015 , PPL Electric purchased $ 331 million of accounts receivable from unaffiliated third parties and $ 93 million from PPL EnergyPlus . 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 Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffi liated third party. |
New Accounting Guidance Adopted | New Accounting Guidance Adopted (All Registrants) Accounting for Stock-Based Compensation Effective January 1, 2016, the Registrants adopted accounting guidance to simplify the accounting for share-based payment transactions. The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense on the statement of income, eliminates the requirement that excess tax benefits be realized before companies can recognize them and changes the threshold for statutory income tax withholding requirements to qualify for equity classification to the maximum statutory tax rates in the applicable jurisdictions . This guidance also changes the classification of excess tax benefits to an operating activity and employee taxes paid when shares are withheld to satisfy the employer's statutory income tax withholding obligation to a financing activity on the statement of cash flows and allows entities to make a policy election to either estimate forfeitures or recognize them when t hey occur . The adoption of this guidance had the following impacts: Using the required prospective method of transition, PPL recorded a tax benefit of $ 8 million ($0.01 per share) and PPL Electric recorded a tax benefit of $ 5 million re lated to excess tax benefits for awards that were exercised and vested for the period ending March 31, 2016. These amount s w ere recorded to Income taxes o n the Statement s of Income and Deferred income taxes o n the Balance Sheet s . The impact on LKE was not significant. PPL elected to use the prospective method of transition for classifying excess tax benefits as an Operating activity o n the Statement of Cash Flows . The amounts classified as Financing activities in the prior periods were not signific ant. Using the required modified retrospective method of transition , PPL recorded a cumulative effect adjustment of $ 7 million to increase Earnings reinvested and decrease Deferred income taxes on the Balance Sheet related to prior period unrecogn ized excess tax benefits. PPL has historically presented employee taxes paid for net settled awards as a Financing activity on the Statement of Cash Flows. Therefore, there is no transition impact for this requirement. PPL has elected to recognize forfe itures when they occur. Due to past experience of insignificant forfeitures there is no transition impact of this policy election. |
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 months ended March 31, 2016 , PPL Electric purchased $ 382 million of accounts receivable from unaffiliated third parties. During the three months ended March 31, 2015 , PPL Electric purchased $ 331 million of accounts receivable from unaffiliated third parties and $ 93 million from PPL EnergyPlus . 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 Electric’s purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffi liated third party. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Transfers between levels are recognized at end-of-repor ting-period values. |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 obl igation to return cash collateral (a payable) under master netting arrangements. |
Segment and Related Informati31
Segment and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment and Related Information [Abstract] | |
Segment and Related Information | Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are: Three Months 2016 2015 Income Statement Data Revenues from external customers U.K. Regulated $ 595 $ 697 Kentucky Regulated 826 899 Pennsylvania Regulated 585 630 Corporate and Other 5 4 Total $ 2,011 $ 2,230 Net Income U.K. Regulated (a) $ 289 $ 375 Kentucky Regulated 112 109 Pennsylvania Regulated 94 87 Corporate and Other (14) (19) Discontinued Operations (b) 95 Total $ 481 $ 647 March 31, December 31, 2016 2015 Balance Sheet Data Assets U.K. Regulated (c) $ 15,802 $ 16,669 Kentucky Regulated 13,777 13,756 Pennsylvania Regulated 8,720 8,511 Corporate and Other (d) 410 365 Total assets $ 38,709 $ 39,301 (a) Includes unrealized gains and losses from hedging foreign-currency related economic activity . See Note 14 for additional information. (b) See Note 8 for additional information. (c) Includes $11.4 billion and $12.2 billion of net PP&E as of March 31, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP. (d) Primarily consists of unallocated items, including c ash, PP&E and the elimination of inter-segment transactions. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31 used in the EPS calculation are: Three Months 2016 2015 Income (Numerator) Income from continuing operations after income taxes $ 481 $ 552 Less amounts allocated to participating securities 2 3 Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted $ 479 $ 549 Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted $ 95 Net income $ 481 $ 647 Less amounts allocated to participating securities 2 3 Net income available to PPL common shareowners - Basic and Diluted $ 479 $ 644 Shares of Common Stock (Denominator) Weighted-average shares - Basic EPS 675,441 666,974 Add incremental non-participating securities: Share-based payment awards 3,376 1,758 Weighted-average shares - Diluted EPS 678,817 668,732 Basic EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.71 $ 0.83 Income (loss) from discontinued operations (net of income taxes) 0.14 Net Income $ 0.71 $ 0.97 Diluted EPS Available to PPL common shareowners: Income from continuing operations after income taxes $ 0.71 $ 0.82 Income (loss) from discontinued operations (net of income taxes) 0.14 Net Income $ 0.71 $ 0.96 |
Common Stock Issuances | For the periods ended March 31, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands): Three Months 2016 2015 Stock-based compensation plans (a) 2,125 1,445 DRIP 402 419 (a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors. |
Antidilutive Securities Excluded From Diluted EPS | For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive. Three Months 2016 2015 Stock options 696 1,473 Performance units 146 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are as follows. (PPL) Three Months 2016 2015 Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35% $ 231 $ 269 Increase (decrease) due to: State income taxes, net of federal income tax benefit 13 14 Valuation allowance adjustments 6 9 Impact of lower U.K. income tax rates (54) (62) Interest benefit on U.K. financing entities (5) (7) Stock-based compensation (a) (8) Other (4) (6) Total increase (decrease) (52) (52) Total income taxes $ 179 $ 217 (a) During the three months ended March 31, 2016, PPL recorded an $8 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. |
PPL Electric Utilities Corp [Member] | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are as follows. (PPL Electric) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 53 $ 51 Increase (decrease) due to: State income taxes, net of federal income tax benefit 9 10 Stock-based compensation (a) (5) Other (1) (2) Total increase (decrease) 3 8 Total income taxes $ 56 $ 59 (a ) During the three months ended March 31, 2016, PPL Electric recorded a $5 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. |
LG And E And KU Energy LLC [Member] | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are as follows. (LKE) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 67 $ 68 Increase (decrease) due to: State income taxes, net of federal income tax benefit 7 7 Valuation allowance adjustments 3 Stock-based compensation (1) Other (1) (2) Total increase (decrease) 5 8 Total income taxes $ 72 $ 76 |
Louisville Gas And Electric Co [Member] | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are as follows. (LG&E) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 32 $ 30 Increase (decrease) due to: State income taxes, net of federal income tax benefit 3 3 Total increase (decrease) 3 3 Total income taxes $ 35 $ 33 |
Kentucky Utilities Co [Member] | |
Income Taxes [Line Items] | |
Reconciliation of Income Tax Expense Derived From Statutory Tax Rate | Reconciliations of income taxes for the periods ended March 31 are as follows. (KU) Three Months 2016 2015 Federal income tax on Income Before Income Taxes at statutory tax rate - 35% $ 42 $ 44 Increase (decrease) due to: State income taxes, net of federal income tax benefit 4 4 Other (1) Total increase (decrease) 4 3 Total income taxes $ 46 $ 47 |
Utility Rate Regulation (Tables
Utility Rate Regulation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Utility Rate Regulation [Line Items] | |
Regulatory Assets | The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. PPL PPL Electric March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Current Regulatory Assets: Environmental cost recovery $ 6 $ 24 Transmission service charge 7 10 $ 7 $ 10 Other 13 14 2 3 Total current regulatory assets (a) $ 26 $ 48 $ 9 $ 13 Noncurrent Regulatory Assets: Defined benefit plans $ 801 $ 809 $ 465 $ 469 Taxes recoverable through future rates 328 326 328 326 Storm costs 84 93 26 30 Unamortized loss on debt 68 68 43 42 Interest rate swaps 145 141 Accumulated cost of removal of utility plant 139 137 139 137 AROs 165 143 Other 17 16 2 2 Total noncurrent regulatory assets $ 1,747 $ 1,733 $ 1,003 $ 1,006 LKE LG&E KU March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Current Regulatory Assets: Environmental cost recovery $ 6 $ 24 $ 6 $ 13 $ 11 Gas supply clause 1 1 Gas line tracker 1 1 1 1 Other 10 9 1 $ 10 8 Total current regulatory assets $ 17 $ 35 $ 7 $ 16 $ 10 $ 19 Noncurrent Regulatory Assets: Defined benefit plans $ 336 $ 340 $ 211 $ 215 $ 125 $ 125 Storm costs 58 63 32 35 26 28 Unamortized loss on debt 25 26 16 17 9 9 Interest rate swaps 145 141 103 98 42 43 AROs 165 143 64 57 101 86 Plant retirement costs 6 6 6 6 Other 9 8 4 2 5 6 Total noncurrent regulatory assets $ 744 $ 727 $ 430 $ 424 $ 314 $ 303 (a) These amounts are included in "Other current assets" on the Balance Sheets. |
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 $ 30 $ 41 $ 30 $ 41 Demand side management 11 8 Gas supply clause 6 Universal service rider 6 5 6 5 Transmission formula rate 37 48 37 48 Fuel adjustment clause 16 14 Storm damage expense 15 16 15 16 Other 4 7 1 3 Total current regulatory liabilities $ 119 $ 145 $ 89 $ 113 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 693 $ 691 Coal contracts (b) 14 17 Power purchase agreement - OVEC (b) 82 83 Net deferred tax assets 22 23 Act 129 compliance rider 25 22 $ 25 $ 22 Defined benefit plans 24 24 Interest rate swaps 79 82 Other 3 3 Total noncurrent regulatory liabilities $ 942 $ 945 $ 25 $ 22 Current Regulatory Liabilities: Demand side management $ 11 $ 8 $ 5 $ 4 $ 6 $ 4 Gas supply clause 6 6 Fuel adjustment clause 16 14 3 2 13 12 Other 3 4 1 3 3 Total current regulatory liabilities $ 30 $ 32 $ 8 $ 13 $ 22 $ 19 Noncurrent Regulatory Liabilities: Accumulated cost of removal of utility plant $ 693 $ 691 $ 303 $ 301 $ 390 $ 390 Coal contracts (b) 14 17 6 7 8 10 Power purchase agreement - OVEC (b) 82 83 57 57 25 26 Net deferred tax assets 22 23 22 23 Defined benefit plans 24 24 24 24 Interest rate swaps 79 82 39 41 40 41 Other 3 3 1 2 2 1 Total noncurrent regulatory liabilities $ 917 $ 923 $ 428 $ 431 $ 489 $ 492 (b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL. |
Financing Activities (Tables)
Financing Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financing Activities [Line Items] | |
Credit Facilities in Place at Period End | The following credit facilities were in place at: March 31, 2016 December 31, 2015 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 Jan. 2021 £ 210 £ 144 £ 72 £ 133 WPD (South West) Syndicated Credit Facility July 2020 245 245 WPD (East Midlands) Syndicated Credit Facility July 2020 300 37 263 WPD (West Midlands) Syndicated Credit Facility July 2020 300 300 Uncommitted Credit Facilities 40 £ 4 36 £ 4 Total U.K. Credit Facilities (a) £ 1,095 £ 181 £ 4 £ 916 £ 133 £ 4 U.S. PPL Capital Funding Syndicated Credit Facility Jan. 2021 $ 700 $ 700 $ 151 Syndicated Credit Facility Nov. 2018 300 73 $ 227 300 Bilateral Credit Facility Mar. 2017 150 17 133 20 Total PPL Capital Funding Credit Facilities $ 1,150 $ 790 $ 360 $ 471 PPL Electric Syndicated Credit Facility Jan. 2021 $ 400 $ 126 $ 274 $ 1 LKE Syndicated Credit Facility (b) Oct. 2018 $ 75 $ 75 $ 75 LG&E Syndicated Credit Facility Dec. 2020 $ 500 $ 82 $ 418 $ 142 KU Syndicated Credit Facility Dec. 2020 $ 400 $ 34 $ 366 $ 48 Letter of Credit Facility Oct. 2017 198 198 198 Total KU Credit Facilities $ 598 $ 232 $ 366 $ 246 (a ) WPD plc 's amounts borrowed at March 31, 2016 and December 31, 2015 were USD-denominated borrowings of $ 200 million for both periods, which bore interest at 1.26% and 1.83% . The unused capacity reflects the amount borrowed in GBP of £ 138 million as of the date borrowed. WPD (East Midlands) amount borrowed at March 31, 2016 was a GBP-denominated borrowing which equated to $ 51 million and bore interest at 0.91% . At March 31, 2016 , the unused capacity under the U.K. credit facilities was approximately $ 1.3 billion. (b) LKE’s interest rate on outstanding bor rowings at December 31, 2015 was 1.68% . |
Commercial paper | March 31, 2016 December 31, 2015 Weighted - Commercial Weighted - Commercial Average Paper Unused Average Paper Interest Rate Capacity Issuances Capacity Interest Rate Issuances PPL Capital Funding 0.85% $ 1,000 $ 773 $ 227 0.78% $ 451 PPL Electric 0.72% 400 125 275 LG&E 0.79% 350 82 268 0.71% 142 KU 0.64% 350 34 316 0.72% 48 Total $ 2,100 $ 1,014 $ 1,086 $ 641 |
Acquisitions, Development and36
Acquisitions, Development and Divestures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions, Development and Divestitures [Line Items] | |
Components of Discontinued Operations | Following are the components of Discontinued Operations in the Statement of Income for the period ended March 31, 2015: Operating revenues $ 944 Operating expenses 767 Other Income (Expense) - net 7 Interest expense (a) 38 Income (loss) before income taxes 146 Income tax expense (benefit) 51 Income (Loss) from Discontinued Operations (net of income taxes) $ 95 (a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized . |
Defined Benefits (Tables)
Defined Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefits [Line Items] | |
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the three month periods ended March 31 : Pension Benefits Other Postretirement Benefits U.S. U.K. 2016 2015 2016 (b) 2015 2016 2015 PPL Service cost $ 17 $ 30 $ 18 $ 20 $ 2 $ 4 Interest cost 43 57 62 79 6 7 Expected return on plan assets (56) (75) (133) (131) (5) (7) Amortization of: Prior service cost 1 2 Actuarial (gain) loss 15 24 37 39 Net periodic defined benefit costs (credits) (a) $ 20 $ 38 $ (16) $ 7 $ 3 $ 4 LKE Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 17 17 2 2 Expected return on plan assets (21) (22) (2) (1) Amortization of: Prior service cost 1 2 1 1 Actuarial (gain) loss 5 8 Net periodic defined benefit costs (credits) $ 8 $ 12 $ 2 $ 3 LG&E Interest cost $ 3 $ 3 Expected return on plan assets (5) (5) Amortization of: Prior service cost 1 1 Actuarial (gain) loss 2 3 Net periodic defined benefit costs (credits) $ 1 $ 2 (a) For the three months ended March 31, 2015 , the total net periodic defined benefit cost includes $ 11 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff. (b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans. |
PPL Electric Utilities Corp [Member] | |
Defined Benefits [Line Items] | |
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU . Three Months 2016 2015 PPL Electric $ 6 $ 8 LG&E 2 3 KU 3 5 |
LG And E And KU Energy LLC [Member] | |
Defined Benefits [Line Items] | |
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the three month periods ended March 31 : Pension Benefits Other Postretirement Benefits U.S. U.K. 2016 2015 2016 (b) 2015 2016 2015 PPL Service cost $ 17 $ 30 $ 18 $ 20 $ 2 $ 4 Interest cost 43 57 62 79 6 7 Expected return on plan assets (56) (75) (133) (131) (5) (7) Amortization of: Prior service cost 1 2 Actuarial (gain) loss 15 24 37 39 Net periodic defined benefit costs (credits) (a) $ 20 $ 38 $ (16) $ 7 $ 3 $ 4 LKE Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 17 17 2 2 Expected return on plan assets (21) (22) (2) (1) Amortization of: Prior service cost 1 2 1 1 Actuarial (gain) loss 5 8 Net periodic defined benefit costs (credits) $ 8 $ 12 $ 2 $ 3 LG&E Interest cost $ 3 $ 3 Expected return on plan assets (5) (5) Amortization of: Prior service cost 1 1 Actuarial (gain) loss 2 3 Net periodic defined benefit costs (credits) $ 1 $ 2 |
Louisville Gas And Electric Co [Member] | |
Defined Benefits [Line Items] | |
Schedule Of Net Periodic Defined Benefit Costs (Credits) | Following are the net periodic defined benefit costs (credits ) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the three month periods ended March 31 : Pension Benefits Other Postretirement Benefits U.S. U.K. 2016 2015 2016 (b) 2015 2016 2015 PPL Service cost $ 17 $ 30 $ 18 $ 20 $ 2 $ 4 Interest cost 43 57 62 79 6 7 Expected return on plan assets (56) (75) (133) (131) (5) (7) Amortization of: Prior service cost 1 2 Actuarial (gain) loss 15 24 37 39 Net periodic defined benefit costs (credits) (a) $ 20 $ 38 $ (16) $ 7 $ 3 $ 4 LKE Service cost $ 6 $ 7 $ 1 $ 1 Interest cost 17 17 2 2 Expected return on plan assets (21) (22) (2) (1) Amortization of: Prior service cost 1 2 1 1 Actuarial (gain) loss 5 8 Net periodic defined benefit costs (credits) $ 8 $ 12 $ 2 $ 3 LG&E Interest cost $ 3 $ 3 Expected return on plan assets (5) (5) Amortization of: Prior service cost 1 1 Actuarial (gain) loss 2 3 Net periodic defined benefit costs (credits) $ 1 $ 2 |
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU . Three Months 2016 2015 PPL Electric $ 6 $ 8 LG&E 2 3 KU 3 5 |
Kentucky Utilities Co [Member] | |
Defined Benefits [Line Items] | |
Allocation of Net Periodic Benefit Costs | For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU . Three Months 2016 2015 PPL Electric $ 6 $ 8 LG&E 2 3 KU 3 5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Guarantees | The table below details guarantees provi ded as of March 31, 2016 . Exposure at Expiration March 31, 2016 Date PPL Indemnifications related to the WPD Midlands acquisition (a) WPD indemnifications for entities in liquidation and sales of assets $ 11 (b) 2019 WPD guarantee of pension and other obligations of unconsolidated entities 111 (c) PPL Electric Guarantee of inventory value 26 (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. Additionally, 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 modi fied electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At March 31, 2016 , WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure ha s been 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 rem aining 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 t he LKE 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 exposure 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 pow er, has a term expiring in 2023, and a maximum exposure of $ 100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE’s indemnitee filed a motion 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 . In Febr uary 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the deman ds. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting preliminary settlement discussions, however, the ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations f or 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 cove red losses or liabilities being claimed by an indemnified party. LKE cannot predict the ultimate outcomes of the indemnification circumstances, but does not expect such outcomes to result in significant losses above the amounts recorded. (f ) Pursua nt to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement and decommissioning costs, as well as any shortfall from amounts included within a demand charge designed and expected t o cover these costs over the term of the contract. LKE’s proportionate share of OVEC’s outstanding debt was $124 million at March 31, 2016, consisting of LG&E’s share of $86 million and KU’s share of $38 million. 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 2015 Form 10-K for additional information on the OVEC power purchase co ntract. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
PPL Electric Utilities Corp [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 |
LG And E And KU Energy LLC [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 |
Louisville Gas And Electric Co [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 |
Kentucky Utilities Co [Member] | |
Related Party Transactions [Line Items] | |
Intercompany Support Cost Allocations | PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods t hat are believed to be reasonable. Three Months 2016 2015 PPL Electric from PPL Services $ 37 $ 30 LKE from PPL Services 5 4 PPL Electric from PPL EU Services 17 15 LG&E from LKS 47 51 KU from LKS 56 56 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The assets and liabilities measured at fair value were: March 31, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 PPL Assets Cash and cash equivalents $ 814 $ 814 $ 836 $ 836 Restricted cash and cash equivalents (a) 32 32 33 33 Price risk management assets (b): Foreign currency contracts 249 $ 249 209 $ 209 Cross-currency swaps 188 188 86 86 Total price risk management assets 437 437 295 295 Auction rate securities (c) 2 $ 2 2 $ 2 Total assets $ 1,285 $ 846 $ 437 $ 2 $ 1,166 $ 869 $ 295 $ 2 Liabilities Price risk management liabilities (b): Interest rate swaps $ 95 $ 95 $ 71 $ 71 Foreign currency contracts 3 3 1 1 Total price risk management liabilities $ 98 $ 98 $ 72 $ 72 PPL Electric Assets Cash and cash equivalents $ 34 $ 34 $ 47 $ 47 Restricted cash and cash equivalents (a) 2 2 2 2 Total assets $ 36 $ 36 $ 49 $ 49 LKE Assets Cash and cash equivalents $ 28 $ 28 $ 30 $ 30 Cash collateral posted to counterparties (d) 8 8 9 9 Total assets $ 36 $ 36 $ 39 $ 39 Liabilities Price risk management liabilities: Interest rate swaps $ 53 $ 53 $ 47 $ 47 Total price risk management liabilities $ 53 $ 53 $ 47 $ 47 LG&E Assets Cash and cash equivalents $ 11 $ 11 $ 19 $ 19 Cash collateral posted to counterparties (d) 8 8 9 9 Total assets $ 19 $ 19 $ 28 $ 28 Liabilities Price risk management liabilities: Interest rate swaps $ 53 $ 53 $ 47 $ 47 Total price risk management liabilities $ 53 $ 53 $ 47 $ 47 KU Assets Cash and cash equivalents $ 17 $ 17 $ 11 $ 11 Total assets $ 17 $ 17 $ 11 $ 11 (a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets. (b) Current portion is included in "Price risk management assets" and "Other current liabilities" and n oncurrent portion is included in "Price risk management 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 counterparties 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 . March 31, 2016 December 31, 2015 Carrying Carrying Amount (a) Fair Value Amount (a) Fair Value PPL $ 18,559 $ 21,046 $ 19,048 $ 21,218 PPL Electric 2,829 3,216 2,828 3,088 LKE 5,088 5,625 5,088 5,384 LG&E 1,642 1,779 1,642 1,704 KU 2,326 2,587 2,326 2,467 (a) A mount s are net of debt issuance costs. |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 . March 31, 2016 December 31, 2015 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) $ 42 $ 6 $ 24 $ 5 Cross-currency swaps (b) $ 71 $ 35 Foreign currency contracts 12 $ 100 3 10 $ 94 1 Total current 83 42 100 9 45 24 94 6 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps (b) 47 42 Cross-currency swaps (b) 117 51 Foreign currency contracts 137 105 Total noncurrent 117 137 47 51 105 42 Total derivatives $ 200 $ 42 $ 237 $ 56 $ 96 $ 24 $ 199 $ 48 (a) Current portion is included in " Price risk management assets " and "Other current liabilities" and noncurrent portion is included in " Price risk management 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 three months ended March 31. 2016 2015 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 2016 2015 on Derivative Portion) Testing) Portion) Testing) Cash Flow Hedges: Interest rate swaps $ (18) $ (19) Interest expense $ (1) $ (4) Cross-currency swaps 113 21 Interest expense 1 1 Other income (expense) - net 97 17 Commodity contracts Discontinued operations 7 Total $ 95 $ 2 $ 97 $ 21 Net Investment Hedges: Foreign currency contracts $ 3 $ 16 Derivatives Not Designated as Location of Gain (Loss) Recognized in Hedging Instruments Income on Derivative 2016 2015 Foreign currency contracts Other income (expense) - net $ 60 $ 88 Interest rate swaps Interest expense (2) (2) Total $ 58 $ 86 Derivatives Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets 2016 2015 Interest rate swaps Regulatory assets- noncurrent $ (56) Derivatives Not Designated as Location of Gain (Loss) Recognized as Hedging Instruments Regulatory Liabilities/Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (6) $ (4) |
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. Assets Liabilities Eligible for Offset Eligible for Offset Cash Cash Derivative Collateral Derivative Collateral Gross Instruments Received Net Gross Instruments Pledged Net March 31, 2016 Treasury Derivatives PPL $ 437 $ 45 $ 15 $ 377 $ 98 $ 45 $ 8 $ 45 LKE 53 8 45 LG&E 53 8 45 December 31, 2015 Treasury Derivatives PPL $ 295 $ 25 $ 270 $ 72 $ 25 $ 9 $ 38 LKE 47 9 38 LG&E 47 9 38 |
Credit Risk-Related Contingent Features | At March 31, 2016 , derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related eff ect 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 $ 31 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 8 8 8 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 23 22 22 (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 present s th e fair value and the location on the Balance Sheets of derivative s not designated as hedging instruments . March 31, 2016 December 31, 2015 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 6 $ 5 Total current 6 5 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps 47 42 Total noncurrent 47 42 Total derivatives $ 53 $ 47 (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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (56) 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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives 2016 2015 Interest rate swaps Interest expense $ (2) $ (2) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (6) $ (4) |
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. Assets Liabilities Eligible for Offset Eligible for Offset Cash Cash Derivative Collateral Derivative Collateral Gross Instruments Received Net Gross Instruments Pledged Net March 31, 2016 Treasury Derivatives PPL $ 437 $ 45 $ 15 $ 377 $ 98 $ 45 $ 8 $ 45 LKE 53 8 45 LG&E 53 8 45 December 31, 2015 Treasury Derivatives PPL $ 295 $ 25 $ 270 $ 72 $ 25 $ 9 $ 38 LKE 47 9 38 LG&E 47 9 38 |
Credit Risk-Related Contingent Features | At March 31, 2016 , derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related eff ect 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 $ 31 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 8 8 8 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 23 22 22 (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 present s th e fair value and the location on the Balance Sheets of derivative s not designated as hedging instruments . March 31, 2016 December 31, 2015 Assets Liabilities Assets Liabilities Current: Price Risk Management Assets/Liabilities (a): Interest rate swaps $ 6 $ 5 Total current 6 5 Noncurrent: Price Risk Management Assets/Liabilities (a): Interest rate swaps 47 42 Total noncurrent 47 42 Total derivatives $ 53 $ 47 (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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (28) 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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Income on Derivatives 2016 2015 Interest rate swaps Interest expense $ (2) $ (2) Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (6) $ (4) |
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. Assets Liabilities Eligible for Offset Eligible for Offset Cash Cash Derivative Collateral Derivative Collateral Gross Instruments Received Net Gross Instruments Pledged Net March 31, 2016 Treasury Derivatives PPL $ 437 $ 45 $ 15 $ 377 $ 98 $ 45 $ 8 $ 45 LKE 53 8 45 LG&E 53 8 45 December 31, 2015 Treasury Derivatives PPL $ 295 $ 25 $ 270 $ 72 $ 25 $ 9 $ 38 LKE 47 9 38 LG&E 47 9 38 |
Credit Risk-Related Contingent Features | At March 31, 2016 , derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related eff ect 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 $ 31 $ 30 $ 30 Aggregate fair value of collateral posted on these derivative instruments 8 8 8 Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a) 23 22 22 (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] | |
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 March 31 . Location of Gain (Loss) Recognized in Derivative Instruments Regulatory Assets 2016 2015 Interest rate swaps Regulatory assets - noncurrent $ (28) |
Derivative Positions Eligible for Offset with Related Cash Collateral | The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. Assets Liabilities Eligible for Offset Eligible for Offset Cash Cash Derivative Collateral Derivative Collateral Gross Instruments Received Net Gross Instruments Pledged Net March 31, 2016 Treasury Derivatives PPL $ 437 $ 45 $ 15 $ 377 $ 98 $ 45 $ 8 $ 45 LKE 53 8 45 LG&E 53 8 45 December 31, 2015 Treasury Derivatives PPL $ 295 $ 25 $ 270 $ 72 $ 25 $ 9 $ 38 LKE 47 9 38 LG&E 47 9 38 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 |
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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 |
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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 |
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, 2015 $ 586 $ 535 $ 175 $ 360 Accretion 6 6 2 4 Effect of foreign currency exchange rates (4) Obligations settled (1) (1) (1) Balance at March 31, 2016 $ 587 $ 540 $ 176 $ 364 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Accumulated Other Comprehensive Income (Loss) | The after-tax changes in AOCI by component for the three month periods ended March 31 were as follows. Foreign Unrealized gains (losses) Defined benefit plans currency Available- Equity Prior Actuarial translation for-sale Qualifying investees' service gain adjustments securities derivatives AOCI costs (loss) Total December 31, 2015 $ (520) $ (7) $ (6) $ (2,195) $ (2,728) Amounts arising during the period (464) 80 (384) Reclassifications from AOCI (78) 31 (47) Net OCI during the period (464) 2 31 (431) March 31, 2016 $ (984) $ (5) $ (6) $ (2,164) $ (3,159) December 31, 2014 $ (286) $ 201 $ 20 $ 1 $ 3 $ (2,213) $ (2,274) Amounts arising during the period (66) 5 6 (1) (56) Reclassifications from AOCI (1) (17) (1) 38 19 Net OCI during the period (66) 4 (11) (1) 37 (37) March 31, 2015 $ (352) $ 205 $ 9 $ $ 3 $ (2,176) $ (2,311) |
Reclassification out of Other Comprehensive Income (Loss) | The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the three month periods ended March 31. Three Months Affected Line Item on the Details about AOCI 2016 2015 Statements of Income Available-for-sale securities $ 2 Other Income (Expense) - net Total Pre-tax 2 Income Taxes (1) Total After-tax 1 Qualifying derivatives Interest rate swaps $ (1) (4) Interest Expense Cross-currency swaps 97 17 Other Income (Expense) - net 1 1 Interest Expense Commodity contracts 7 Discontinued operations Total Pre-tax 97 21 Income Taxes (19) (4) Total After-tax 78 17 Equity investees' AOCI 2 Other Income (Expense) - net Total Pre-tax 2 Income Taxes (1) Total After-tax 1 Defined benefit plans Net actuarial loss (40) (51) Total Pre-tax (40) (51) Income Taxes 9 13 Total After-tax (31) (38) Total reclassifications during the period $ 47 $ (19) |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Discount Rate Change for U.K. Pension Plans (Numeric) [Abstract] | ||
Decrease in net periodic defined benefit cost from change in the discount rate | $ 11 | |
Decrease in net periodic defined benefit cost from change in the discount rate, after-tax | $ 9 | |
Decrease in net periodic defined benefit cost from change in the discount rate, per share | $ 0.01 | |
Accounting for Stock-Based Compensation (Numeric) [Abstract] | ||
Income tax benefit | $ (179) | $ (217) |
Per share | $ 0.71 | $ 0.97 |
Cumulative effect adjustment to earnings reinvested | $ 7 | |
New Accounting Pronouncement Early Adoption [Member] | ||
Accounting for Stock-Based Compensation (Numeric) [Abstract] | ||
Income tax benefit | $ 8 | |
Per share | $ 0.01 | |
Cumulative effect adjustment to earnings reinvested | $ 7 | |
Unaffiliated Third Party Entity [Member] | ||
Accounts Receivable (Numeric) [Abstract] | ||
Purchases of accounts receivable | 382 | $ 331 |
PPL Electric Utilities Corp [Member] | ||
Accounting for Stock-Based Compensation (Numeric) [Abstract] | ||
Income tax benefit | (56) | (59) |
PPL Electric Utilities Corp [Member] | New Accounting Pronouncement Early Adoption [Member] | ||
Accounting for Stock-Based Compensation (Numeric) [Abstract] | ||
Income tax benefit | 5 | |
PPL Electric Utilities Corp [Member] | Unaffiliated Third Party Entity [Member] | ||
Accounts Receivable (Numeric) [Abstract] | ||
Purchases of accounts receivable | $ 382 | 331 |
PPL Electric Utilities Corp [Member] | PPL EnergyPlus [Member] | ||
Accounts Receivable (Numeric) [Abstract] | ||
Purchases of accounts receivable | $ 93 |
Segment and Related Informati45
Segment and Related Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Income Statement Data | |||||
Revenues | $ 2,011 | $ 2,230 | |||
Net Income | 481 | 647 | |||
Balance Sheet Data | |||||
Assets | 38,709 | $ 39,301 | |||
United Kingdom Regulated [Member] | |||||
Income Statement Data | |||||
Revenues | 595 | 697 | |||
Net Income | [1] | 289 | 375 | ||
Balance Sheet Data | |||||
Assets | [2] | 15,802 | 16,669 | ||
Segment (Numeric) [Abstract] | |||||
Net property, plant and equipment not subject to accounting for the effects of certain types of regulation | 11,400 | 12,200 | |||
Kentucky Regulated [Member] | |||||
Income Statement Data | |||||
Revenues | 826 | 899 | |||
Net Income | 112 | 109 | |||
Balance Sheet Data | |||||
Assets | 13,777 | 13,756 | |||
Pennsylvania Regulated [Member] | |||||
Income Statement Data | |||||
Revenues | 585 | 630 | |||
Net Income | 94 | 87 | |||
Balance Sheet Data | |||||
Assets | 8,720 | 8,511 | |||
Corporate And Other [Member] | |||||
Income Statement Data | |||||
Revenues | 5 | 4 | |||
Net Income | (14) | (19) | |||
Balance Sheet Data | |||||
Assets | [3] | 410 | $ 365 | ||
Discontinued Operations [Member] | |||||
Income Statement Data | |||||
Net Income | $ 0 | $ 95 | [4] | ||
[1] | Includes unrealized gains and losses from hedging foreign-currency related economic activity . See Note 14 for additional information. | ||||
[2] | Includes $11.4 billion and $12.2 billion of net PP&E as of March 31, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP. | ||||
[3] | Primarily consists of unallocated items, including c ash, PP&E and the elimination of inter-segment transactions. | ||||
[4] | See Note 8 for additional information. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Income (Numerator) | |||
Income from continuing operations after income taxes | $ 481 | $ 552 | |
Less amounts allocated to participating securities | 2 | 3 | |
Income from continuing operations after income taxes available to PPL common shareowners - Basic | 479 | 549 | |
Income from continuing operations after income taxes available to PPL common shareowners - Diluted | 479 | 549 | |
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted | 0 | 95 | |
Net income | 481 | 647 | |
Less amounts allocated to participating securities | 2 | 3 | |
Net income available to PPL common shareowners - Basic | 479 | 644 | |
Net income available to PPL common shareowners - Diluted | $ 479 | $ 644 | |
Shares of Common Stock (Denominator) | |||
Weighted-average shares - Basic EPS (in shares) | 675,441 | 666,974 | |
Add incremental non-participating securities: | |||
Share-based payment awards (in shares) | 3,376 | 1,758 | |
Weighted-average shares - Diluted EPS (in shares) | 678,817 | 668,732 | |
Basic EPS - Available to PPL common shareowners: | |||
Income from continuing operations after income taxes (in dollars per share) | $ 0.71 | $ 0.83 | |
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | 0 | 0.14 | |
Net Income Available to PPL common shareowners (in dollars per share) | 0.71 | 0.97 | |
Diluted EPS - Available to PPL common shareowners: | |||
Income from continuing operations after income taxes (in dollars per share) | 0.71 | 0.82 | |
Income (loss) from discontinued operations (net of income taxes) (in dollars per share) | 0 | 0.14 | |
Net Income Available to PPL common shareowners (in dollars per share) | $ 0.71 | $ 0.96 | |
Shares Issued (Numeric) [Abstract] | |||
Common stock issued under stock-based compensation plans (in shares) | [1] | 2,125 | 1,445 |
Common stock issued under DRIP (in shares) | 402 | 419 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computations of diluted EPS | 696 | 1,473 | |
Performance Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from the computations of diluted EPS | 0 | 146 | |
[1] | 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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 231 | $ 269 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | $ 13 | $ 14 | |
Valuation allowance adjustments | 6 | 9 | |
Impact of lower U.K. income tax rates | (54) | (62) | |
Interest benefit on United Kingdom financing entities | (5) | (7) | |
Stock-based compensation | (8) | [1] | 0 |
Other | (4) | (6) | |
Total increase (decrease) | (52) | (52) | |
Total income tax from continuing operations | 179 | 217 | |
PPL Electric Utilities Corp [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 53 | $ 51 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | $ 9 | $ 10 | |
Stock-based compensation | (5) | [2] | 0 |
Other | (1) | (2) | |
Total increase (decrease) | 3 | 8 | |
Total income tax from continuing operations | 56 | 59 | |
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% | $ 67 | $ 68 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | $ 7 | $ 7 | |
Valuation allowance adjustments | 0 | 3 | |
Stock-based compensation | (1) | 0 | |
Other | (1) | (2) | |
Total increase (decrease) | 5 | 8 | |
Total income tax from continuing operations | 72 | 76 | |
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% | $ 32 | $ 30 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | $ 3 | $ 3 | |
Total increase (decrease) | 3 | 3 | |
Total income tax from continuing operations | 35 | 33 | |
Kentucky Utilities Co [Member] | |||
Reconciliation of Income Tax Expense | |||
Federal income tax on Income (Loss) Before Income Taxes at statutory tax rate - 35% | $ 42 | $ 44 | |
Federal statutory tax rate | 35.00% | 35.00% | |
Increase (decrease) due to: | |||
State income taxes, net of federal income tax benefit | $ 4 | $ 4 | |
Other | 0 | (1) | |
Total increase (decrease) | 4 | 3 | |
Total income tax from continuing operations | $ 46 | $ 47 | |
[1] | During the three months ended March 31, 2016, PPL recorded an $8 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. | ||
[2] | During the three months ended March 31, 2016, PPL Electric recorded a $5 million tax benefit related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information. |
Utility Rate Regulation (Regula
Utility Rate Regulation (Regulatory Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Regulatory Assets [Line Items] | ||
Current regulatory assets | $ 26 | $ 48 |
Noncurrent regulatory assets | 1,747 | 1,733 |
Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 6 | 24 |
Transmission Service Charge [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 7 | 10 |
Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 801 | 809 |
Taxes Recoverable Through Future Rates [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 328 | 326 |
Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 84 | 93 |
Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 68 | 68 |
Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 145 | 141 |
Accumulated Cost Of Removal Of Utility Plant [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 139 | 137 |
Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 165 | 143 |
Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 13 | 14 |
Noncurrent regulatory assets | 17 | 16 |
PPL Electric Utilities Corp [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 9 | 13 |
Noncurrent regulatory assets | 1,003 | 1,006 |
PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 7 | 10 |
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 465 | 469 |
PPL Electric Utilities Corp [Member] | Taxes Recoverable Through Future Rates [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 328 | 326 |
PPL Electric Utilities Corp [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 26 | 30 |
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 43 | 42 |
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 139 | 137 |
PPL Electric Utilities Corp [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 2 | 3 |
Noncurrent regulatory assets | 2 | 2 |
LG And E And KU Energy LLC [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 17 | 35 |
Noncurrent regulatory assets | 744 | 727 |
LG And E And KU Energy LLC [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 6 | 24 |
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 1 |
LG And E And KU Energy LLC [Member] | Gas Line Tracker [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1 | 1 |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 336 | 340 |
LG And E And KU Energy LLC [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 58 | 63 |
LG And E And KU Energy LLC [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 25 | 26 |
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 145 | 141 |
LG And E And KU Energy LLC [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 165 | 143 |
LG And E And KU Energy LLC [Member] | Plant Retirement Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 6 | 6 |
LG And E And KU Energy LLC [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 10 | 9 |
Noncurrent regulatory assets | 9 | 8 |
Louisville Gas And Electric Co [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 7 | 16 |
Noncurrent regulatory assets | 430 | 424 |
Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 6 | 13 |
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 1 |
Louisville Gas And Electric Co [Member] | Gas Line Tracker [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 1 | 1 |
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 211 | 215 |
Louisville Gas And Electric Co [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 32 | 35 |
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 16 | 17 |
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 103 | 98 |
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 64 | 57 |
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 1 |
Noncurrent regulatory assets | 4 | 2 |
Kentucky Utilities Co [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 10 | 19 |
Noncurrent regulatory assets | 314 | 303 |
Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 0 | 11 |
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 125 | 125 |
Kentucky Utilities Co [Member] | Storm Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 26 | 28 |
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 9 | 9 |
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 42 | 43 |
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 101 | 86 |
Kentucky Utilities Co [Member] | Plant Retirement Costs [Member] | ||
Regulatory Assets [Line Items] | ||
Noncurrent regulatory assets | 6 | 6 |
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member] | ||
Regulatory Assets [Line Items] | ||
Current regulatory assets | 10 | 8 |
Noncurrent regulatory assets | $ 5 | $ 6 |
Utility Rate Regulation (Regu49
Utility Rate Regulation (Regulatory Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | $ 119 | $ 145 | |
Noncurrent regulatory liabilities | 942 | 945 | |
Generation Supply Charge [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 30 | 41 | |
Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 11 | 8 | |
Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 6 | |
Transmission Formula Rate [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 37 | 48 | |
Storm Damage Expense [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 15 | 16 | |
Accumulated Cost Of Removal Of Utility Plant [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 693 | 691 | |
Coal Contracts [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 14 | 17 |
Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 82 | 83 |
Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 23 | |
Act 129 Compliance Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 25 | 22 | |
Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 24 | 24 | |
Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 79 | 82 | |
Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 16 | 14 | |
Universal Service Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 6 | 5 | |
Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 4 | 7 | |
Noncurrent regulatory liabilities | 3 | 3 | |
PPL Electric Utilities Corp [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 89 | 113 | |
Noncurrent regulatory liabilities | 25 | 22 | |
PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 30 | 41 | |
PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 37 | 48 | |
PPL Electric Utilities Corp [Member] | Storm Damage Expense [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 15 | 16 | |
PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 25 | 22 | |
PPL Electric Utilities Corp [Member] | Universal Service Rider [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 6 | 5 | |
PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 1 | 3 | |
LG And E And KU Energy LLC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 30 | 32 | |
Noncurrent regulatory liabilities | 917 | 923 | |
LG And E And KU Energy LLC [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 11 | 8 | |
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 6 | |
LG And E And KU Energy LLC [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 693 | 691 | |
LG And E And KU Energy LLC [Member] | Coal Contracts [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 14 | 17 |
LG And E And KU Energy LLC [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 82 | 83 |
LG And E And KU Energy LLC [Member] | Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 23 | |
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 24 | 24 | |
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 79 | 82 | |
LG And E And KU Energy LLC [Member] | Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 16 | 14 | |
LG And E And KU Energy LLC [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 3 | 4 | |
Noncurrent regulatory liabilities | 3 | 3 | |
Louisville Gas And Electric Co [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 8 | 13 | |
Noncurrent regulatory liabilities | 428 | 431 | |
Louisville Gas And Electric Co [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 5 | 4 | |
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 6 | |
Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 303 | 301 | |
Louisville Gas And Electric Co [Member] | Coal Contracts [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 6 | 7 |
Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 57 | 57 |
Louisville Gas And Electric Co [Member] | Net Deferred Tax Assets [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 22 | 23 | |
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 39 | 41 | |
Louisville Gas And Electric Co [Member] | Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 3 | 2 | |
Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 0 | 1 | |
Noncurrent regulatory liabilities | 1 | 2 | |
Kentucky Utilities Co [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 22 | 19 | |
Noncurrent regulatory liabilities | 489 | 492 | |
Kentucky Utilities Co [Member] | Demand Side Management [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 6 | 4 | |
Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 390 | 390 | |
Kentucky Utilities Co [Member] | Coal Contracts [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 8 | 10 |
Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | [1] | 25 | 26 |
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 24 | 24 | |
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member] | |||
Regulatory Liabilities [Line Items] | |||
Noncurrent regulatory liabilities | 40 | 41 | |
Kentucky Utilities Co [Member] | Fuel Adjustment Clause [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 13 | 12 | |
Kentucky Utilities Co [Member] | Other Regulatory Liabilities [Member] | |||
Regulatory Liabilities [Line Items] | |||
Current regulatory liabilities | 3 | 3 | |
Noncurrent regulatory liabilities | $ 2 | $ 1 | |
[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 (Regu50
Utility Rate Regulation (Regulatory Matters) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)Integer | |
Regulatory Matters - United Kingdom Activities - Ofgem Review of Line Loss Calculation (Numeric) [Abstract] | |
Liability at period end regarding line loss incentive/penalty | $ 45 |
Regulatory Matters - Pennsylvania Activities - Act 129 (Numeric) [Abstract] | |
Maximum amount of costs that can be recovered under the Act 129 Phase III plan | $ 313 |
Period over which program costs can be recovered | 5 years |
Minimum term of long term supply contract under Act 129 | 4 years |
Maximum term of long term supply contract under Act 129 | 20 years |
Maximum percentage of long-term contracts that can be included in the mix of PLR supply contracts under Act 129 | 25.00% |
Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Requested return on equity | 10.00% |
Parties granted intervenor status in the proceedings | Integer | 2 |
LGE [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | $ 316 |
KU [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | 678 |
PPL Electric Utilities Corp [Member] | |
Regulatory Matters - Pennsylvania Activities - Act 129 (Numeric) [Abstract] | |
Maximum amount of costs that can be recovered under the Act 129 Phase III plan | $ 313 |
Period over which program costs can be recovered | 5 years |
Minimum term of long term supply contract under Act 129 | 4 years |
Maximum term of long term supply contract under Act 129 | 20 years |
Maximum percentage of long-term contracts that can be included in the mix of PLR supply contracts under Act 129 | 25.00% |
LG And E And KU Energy LLC [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Requested return on equity | 10.00% |
Parties granted intervenor status in the proceedings | Integer | 2 |
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | $ 316 |
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | 678 |
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | $ 316 |
Requested return on equity | 10.00% |
Parties granted intervenor status in the proceedings | Integer | 2 |
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | |
Regulatory Matters Kentucky Activities Certificate Of Public Convenience And Necessity And Environmental Cost Recovery Filings Numeric [Abstract] | |
Expected capitalized costs | $ 678 |
Requested return on equity | 10.00% |
Parties granted intervenor status in the proceedings | Integer | 2 |
Financing Activities (Credit Ar
Financing Activities (Credit Arrangements) (Details) £ in Millions, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016GBP (£) | Mar. 31, 2016USD ($) | Feb. 19, 2016GBP (£) | Dec. 31, 2015GBP (£) | Dec. 31, 2015USD ($) | ||
WPD PLC [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Jan. 13, 2021 | |||||
Interest rate on outstanding borrowing | 1.26% | 1.26% | 1.83% | 1.83% | ||
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% | ||||
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 | Jan. 29, 2021 | |||||
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. 17, 2017 | |||||
PPL Electric [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Jan. 29, 2021 | |||||
LKE [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Interest rate on outstanding borrowing | 1.68% | 1.68% | ||||
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 | Dec. 31, 2020 | |||||
KU [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Dec. 31, 2020 | |||||
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 | £ | £ 1,095 | |||||
Borrowed | £ | [1] | 181 | £ 133 | |||
Letters of credit and commercial paper issued | £ | 4 | 4 | ||||
Unused capacity | £ | [1] | 916 | ||||
United Kingdom, Pounds [Member] | WPD PLC [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | £ | 210 | |||||
Borrowed | 144 | 200 | £ 138 | 133 | $ 200 | |
Unused capacity | £ | 72 | |||||
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 | 37 | 51 | ||||
Unused capacity | £ | 263 | |||||
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 | £ | 40 | |||||
Letters of credit and commercial paper issued | £ | 4 | £ 4 | ||||
Unused capacity | £ | £ 36 | |||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 1,150 | |||||
Letters of credit and commercial paper issued | 790 | 471 | ||||
Unused capacity | 360 | |||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 700 | |||||
Letters of credit and commercial paper issued | 700 | 151 | ||||
Unused capacity | 0 | |||||
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 300 | |||||
Letters of credit and commercial paper issued | 73 | 300 | ||||
Unused capacity | 227 | |||||
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 | 17 | 20 | ||||
Unused capacity | 133 | |||||
United States of America, Dollars [Member] | PPL Electric [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 400 | |||||
Letters of credit and commercial paper issued | 126 | 1 | ||||
Unused capacity | 274 | |||||
United States of America, Dollars [Member] | LKE [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 75 | |||||
Borrowed | [2] | 75 | ||||
Unused capacity | 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 | 82 | 142 | ||||
Unused capacity | 418 | |||||
United States of America, Dollars [Member] | KU [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 598 | |||||
Letters of credit and commercial paper issued | 232 | 246 | ||||
Unused capacity | 366 | |||||
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 | 34 | 48 | ||||
Unused capacity | 366 | |||||
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 | ||||
Unused capacity | 0 | |||||
PPL Electric Utilities Corp [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Jan. 29, 2021 | |||||
PPL Electric Utilities Corp [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Capacity | 400 | |||||
Letters of credit and commercial paper issued | 126 | $ 1 | ||||
Unused capacity | 274 | |||||
LG And E And KU Energy LLC [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Interest rate on outstanding borrowing | 1.68% | 1.68% | ||||
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 | Dec. 31, 2020 | |||||
LG And E And KU Energy LLC [Member] | KU [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Dec. 31, 2020 | |||||
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 | ||||
Unused capacity | 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 | 82 | 142 | ||||
Unused capacity | 418 | |||||
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 | 232 | 246 | ||||
Unused capacity | 366 | |||||
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 | 34 | 48 | ||||
Unused capacity | 366 | |||||
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 | ||||
Unused capacity | 0 | |||||
Louisville Gas And Electric Co [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Dec. 31, 2020 | |||||
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 | 82 | 142 | ||||
Unused capacity | 418 | |||||
Kentucky Utilities Co [Member] | Syndicated Credit Facility [Member] | ||||||
Financing Activities [Line Items] | ||||||
Expiration date | Dec. 31, 2020 | |||||
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 | 232 | 246 | ||||
Unused capacity | 366 | |||||
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 | 34 | 48 | ||||
Unused capacity | 366 | |||||
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 | ||||
Unused capacity | $ 0 | |||||
[1] | WPD plc 's amounts borrowed at March 31, 2016 and December 31, 2015 were USD-denominated borrowings of $ 200 million for both periods, which bore interest at 1.26% and 1.83% . The unused capacity reflects the amount borrowed in GBP of £ 138 million as of the date borrowed. WPD (East Midlands) amount borrowed at March 31, 2016 was a GBP-denominated borrowing which equated to $ 51 million and bore interest at 0.91% . At March 31, 2016 , the unused capacity under the U.K. credit facilities was approximately $ 1.3 billion. | |||||
[2] | LKE’s interest rate on outstanding bor rowings at December 31, 2015 was 1.68% . |
Financing Activities (Short-ter
Financing Activities (Short-term Debt) (Details) - Commercial Paper [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Capacity | $ 2,100 | |
Commercial paper issuances | 1,014 | $ 641 |
Unused capacity | $ 1,086 | |
PPL Capital Funding [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.85% | 0.78% |
Capacity | $ 1,000 | |
Commercial paper issuances | 773 | $ 451 |
Unused capacity | $ 227 | |
PPL Electric [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.72% | |
Capacity | $ 400 | |
Commercial paper issuances | 125 | |
Unused capacity | $ 275 | |
LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.79% | 0.71% |
Capacity | $ 350 | |
Commercial paper issuances | 82 | $ 142 |
Unused capacity | $ 268 | |
KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.64% | 0.72% |
Capacity | $ 350 | |
Commercial paper issuances | 34 | $ 48 |
Unused capacity | $ 316 | |
PPL Electric Utilities Corp [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.72% | |
Capacity | $ 400 | |
Commercial paper issuances | 125 | |
Unused capacity | $ 275 | |
LG And E And KU Energy LLC [Member] | LGE [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.79% | 0.71% |
Capacity | $ 350 | |
Commercial paper issuances | 82 | $ 142 |
Unused capacity | $ 268 | |
LG And E And KU Energy LLC [Member] | KU [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.64% | 0.72% |
Capacity | $ 350 | |
Commercial paper issuances | 34 | $ 48 |
Unused capacity | $ 316 | |
Louisville Gas And Electric Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.79% | 0.71% |
Capacity | $ 350 | |
Commercial paper issuances | 82 | $ 142 |
Unused capacity | $ 268 | |
Kentucky Utilities Co [Member] | ||
Short-term Debt [Line Items] | ||
Weighted-average interest rate | 0.64% | 0.72% |
Capacity | $ 350 | |
Commercial paper issuances | 34 | $ 48 |
Unused capacity | $ 316 |
Financing Activities (Long-term
Financing Activities (Long-term Debt and Equity Securities) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Feb. 26, 2015USD ($)Integer | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
At-the-Market Stock Offering Program (Numeric) [Abstract] | ||||
Net proceeds from issuance of common stock | $ 42 | $ 35 | ||
PPL Electric [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016A [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 116 | 116 | ||
Maturity date | Mar. 9, 2029 | |||
Interest rate at an initial term rate | 0.90% | |||
Repurchase date of debt instruments | Sep. 1, 2017 | |||
PPL Electric [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016B [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 108 | $ 108 | ||
Maturity date | Mar. 9, 2027 | |||
Interest rate at an initial term rate | 0.90% | |||
Repurchase date of debt instruments | Aug. 15, 2017 | |||
PPL Electric [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series A [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Stated interest rate | 4.70% | 4.70% | ||
Maturity date | Mar. 9, 2029 | |||
Principal amount redeemed at par | $ 116 | $ 116 | ||
PPL Electric [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series B [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Stated interest rate | 4.75% | 4.75% | ||
Maturity date | Mar. 9, 2027 | |||
Principal amount redeemed at par | $ 108 | $ 108 | ||
PPL Electric [Member] | First Mortgage Bond [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | 224 | 224 | ||
PPL Electric Utilities Corp [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016A [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 116 | 116 | ||
Maturity date | Mar. 9, 2029 | |||
Interest rate at an initial term rate | 0.90% | |||
Repurchase date of debt instruments | Sep. 1, 2017 | |||
PPL Electric Utilities Corp [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016B [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 108 | $ 108 | ||
Maturity date | Mar. 9, 2027 | |||
Interest rate at an initial term rate | 0.90% | |||
Repurchase date of debt instruments | Aug. 15, 2017 | |||
PPL Electric Utilities Corp [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series A [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Stated interest rate | 4.70% | 4.70% | ||
Maturity date | Mar. 9, 2029 | |||
Principal amount redeemed at par | $ 116 | $ 116 | ||
PPL Electric Utilities Corp [Member] | Senior Secured Notes [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series B [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 108 | $ 108 | ||
Stated interest rate | 4.75% | 4.75% | ||
Maturity date | Mar. 9, 2027 | |||
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | ||||
Long-term Debt (Numeric) [Abstract] | ||||
Principal amount | $ 224 | $ 224 | ||
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 |
Financing Activities (Distribut
Financing Activities (Distributions and Capital Contributions) (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Distributions [Line Items] | |||
Quarterly common stock dividend declaration date | 2016-02 | ||
Dividend payable date of quarterly common stock dividend | Apr. 1, 2016 | ||
Current quarterly common stock dividend (in dollars per share) | $ 0.38 | $ 0.38 | $ 0.3725 |
Annualized current quarterly common stock dividend (in dollars per share) | $ 1.52 |
Acquisitions, Development and55
Acquisitions, Development and Divestures (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)kVIntegermi | Mar. 31, 2015USD ($) | ||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | $ 233 | $ 329 | |
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract] | |||
Income (Loss) from Discontinued Operations (net of income taxes) | $ 0 | 95 | |
Northeast Pocono Reliability Project [Member] | |||
Development Projects [Abstract] | |||
Total length (in miles) of the expansion project | mi | 58 | ||
Capacity (in kilovolts) of a transmission line | kV | 230 | ||
Adder to the return on equity incentive denied in ratemaking request (in basis points) | Integer | 100 | ||
Project costs capitalized | $ 350 | ||
Substations Included In Request | Integer | 3 | ||
PPL Energy Supply Spinoff [Member] | |||
Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract] | |||
Effective date of spinoff | Jun. 1, 2015 | ||
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% | ||
Continuing Involvement (Details) [Abstract] | |||
Maximum period for Transition Service Agreement (in years) | 2 years | ||
Amount for services billed to spinoff | $ 10 | ||
Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract] | |||
Operating revenues | 944 | ||
Operating expenses | 767 | ||
Other Income (Expense) - net | 7 | ||
Interest Expense | [1] | 38 | |
Income (loss) before income taxes | 146 | ||
Income tax expense (benefit) | 51 | ||
Income (Loss) from Discontinued Operations (net of income taxes) | 95 | ||
PPL Energy Supply Spinoff [Member] | Talen Energy Marketing [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | 54 | ||
PPL Electric Utilities Corp [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | $ 167 | 227 | |
PPL Electric Utilities Corp [Member] | Northeast Pocono Reliability Project [Member] | |||
Development Projects [Abstract] | |||
Total length (in miles) of the expansion project | mi | 58 | ||
Capacity (in kilovolts) of a transmission line | kV | 230 | ||
Adder to the return on equity incentive denied in ratemaking request (in basis points) | Integer | 100 | ||
Project costs capitalized | $ 350 | ||
Substations Included In Request | Integer | 3 | ||
PPL Electric Utilities Corp [Member] | PPL Energy Supply Spinoff [Member] | Talen Energy Marketing [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | $ 54 | ||
LG And E And KU Energy LLC [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | 66 | 92 | |
Louisville Gas And Electric Co [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | 62 | 88 | |
Kentucky Utilities Co [Member] | |||
Continuing Involvement (Details) [Abstract] | |||
Energy purchases | $ 4 | $ 4 | |
[1] | Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized . |
Defined Benefits (Details)
Defined Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Pension Benefits United States [Member] | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | ||||
Service cost | $ 17 | $ 30 | ||
Interest cost | 43 | 57 | ||
Expected return on plan assets | (56) | (75) | ||
Amortization of: | ||||
Prior service cost | 1 | 2 | ||
Actuarial (gain) loss | 15 | 24 | ||
Net periodic defined benefit costs (credits) | 20 | 38 | [1] | |
Net period defined benefit costs reflected in discontinued operations allocated from PPL's plans to PPL Energy Supply prior to the spinoff | 11 | |||
Pension Benefits United Kingdom [Member] | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | ||||
Service cost | 18 | 20 | ||
Interest cost | 62 | 79 | ||
Expected return on plan assets | (133) | (131) | ||
Amortization of: | ||||
Actuarial (gain) loss | 37 | 39 | ||
Net periodic defined benefit costs (credits) | (16) | [2] | 7 | |
Other Postretirement Benefits United States [Member] | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | ||||
Service cost | 2 | 4 | ||
Interest cost | 6 | 7 | ||
Expected return on plan assets | (5) | (7) | ||
Amortization of: | ||||
Net periodic defined benefit costs (credits) | 3 | 4 | ||
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 | 6 | 8 | ||
LG And E And KU Energy LLC [Member] | Pension Benefits United States [Member] | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | ||||
Service cost | 6 | 7 | ||
Interest cost | 17 | 17 | ||
Expected return on plan assets | (21) | (22) | ||
Amortization of: | ||||
Prior service cost | 1 | 2 | ||
Actuarial (gain) loss | 5 | 8 | ||
Net periodic defined benefit costs (credits) | 8 | 12 | ||
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 | ||
Interest cost | 2 | 2 | ||
Expected return on plan assets | (2) | (1) | ||
Amortization of: | ||||
Prior service cost | 1 | 1 | ||
Net periodic defined benefit costs (credits) | 2 | 3 | ||
Louisville Gas And Electric Co [Member] | LKE [Member] | ||||
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract] | ||||
Costs allocated to subsidiary by plan sponsors | 2 | 3 | ||
Louisville Gas And Electric Co [Member] | Pension Benefits United States [Member] | ||||
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract] | ||||
Interest cost | 3 | 3 | ||
Expected return on plan assets | (5) | (5) | ||
Amortization of: | ||||
Prior service cost | 1 | 1 | ||
Actuarial (gain) loss | 2 | 3 | ||
Net periodic defined benefit costs (credits) | 1 | 2 | ||
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 | $ 3 | $ 5 | ||
[1] | For the three months ended March 31, 2015 , the total net periodic defined benefit cost includes $ 11 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff. | |||
[2] | See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans. |
Commitments and Contingencies57
Commitments and Contingencies (Energy Purchases, Other Commitments, Legal Matters and Regulatory Issues) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)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 |
Additional generating units retired at the Cane Run plant | 2 |
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 |
Additional generating units retired at the Cane Run plant | 2 |
Louisville Gas And Electric Co [Member] | |
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract] | |
Number of residents that filed class action suit | 6 |
Number of miles within plant that would include a class of residents | 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 |
Additional generating units retired at the Cane Run plant | 2 |
Commitments and Contingencies58
Commitments and Contingencies (Environmental Matter and Other) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016GBP (£)Integer | Mar. 31, 2016USD ($)Integer | Dec. 31, 2015USD ($) | |
Environmental Matters - Domestic - Air (Numeric) [Abstract] | |||
Number of criteria pollutants | Integer | 6 | 6 | |
Environmental Matters - WPD - European Union Creosote Ban (Numeric) [Abstract] | |||
Number of poles to be replaced | Integer | 1,400,000 | 1,400,000 | |
Environmental Matters - WPD - Carbon Reduction Commitment (Numeric) [Abstract] | |||
Annual cost of purchasing allowances | £ | £ 400,000 | ||
Number of fuel sources no longer subject to reporting and emission allowance requirements | 18 fuel sources | 18 fuel sources | |
PPL Electric Additional Sites [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Environmental site accrual | $ 10 | $ 10 | |
Potential costs for remediation and other liabilities in excess of accrual | 30 | ||
Substation [Member] | Linear Alkyl Benzene [Member] | |||
Environmental Matters - WPD - Discharge at Substation (Numeric) [Abstract] | |||
Voluntary contribution made to public park | £ | £ 25,000 | ||
LGE [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | 311 | ||
KU [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | 661 | ||
PPL Electric Utilities Corp [Member] | PPL Electric Additional Sites [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Environmental site accrual | 10 | $ 10 | |
Potential costs for remediation and other liabilities in excess of accrual | $ 30 | ||
LG And E And KU Energy LLC [Member] | |||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | |||
Number of criteria pollutants | Integer | 6 | 6 | |
LG And E And KU Energy LLC [Member] | LGE [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | $ 311 | ||
LG And E And KU Energy LLC [Member] | KU [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | $ 661 | ||
Louisville Gas And Electric Co [Member] | |||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | |||
Number of criteria pollutants | Integer | 6 | 6 | |
Louisville Gas And Electric Co [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | $ 311 | ||
Kentucky Utilities Co [Member] | |||
Environmental Matters - Domestic - Air (Numeric) [Abstract] | |||
Number of criteria pollutants | Integer | 6 | 6 | |
Kentucky Utilities Co [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member] | |||
Enviromental Matters (Numeric) [Abstract] | |||
Potential costs for compliance | $ 661 |
Commitments and Contingencies59
Commitments and Contingencies (Guarantees and Other Assurances) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)Integer | Dec. 31, 2015USD ($) | ||
Guarantor Obligations [Line Items] | |||
Recorded liability for all guarantees | $ 24 | $ 25 | |
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 | 2,019 | ||
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] | $ 111 | |
PPL Electric Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | [3] | $ 26 | |
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 | ||
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. See “Energy Purchase Commitments” and "Guarantees and Other Assurances" in Note 13 in PPL's, LKE's, LG&E's and KU's 2015 Form 10-K for additional information on the OVEC power purchase contract. | ||
Contingent proportionate share of OVEC's outstanding debt | $ 124 | ||
PPL Electric Utilities Corp [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member] | |||
Guarantor Obligations [Line Items] | |||
Maximum exposure | [3] | $ 26 | |
Expiration date | 2,018 | ||
LG And E And KU Energy LLC [Member] | |||
Guarantor Obligations [Line Items] | |||
Recorded liability for all guarantees | $ 18 | $ 18 | |
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. | ||
Contingent proportionate share of OVEC's outstanding debt | $ 124 | ||
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. | ||
Contingent proportionate share of OVEC's outstanding debt | $ 86 | ||
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. | ||
Contingent proportionate share of OVEC's outstanding debt | $ 38 | ||
[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. Additionally, 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 modi fied electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At March 31, 2016 , WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure ha s been estimated. | ||
[3] | A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any rem aining 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 t he LKE 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 exposure 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 pow er, has a term expiring in 2023, and a maximum exposure of $ 100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE’s indemnitee filed a motion 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 . In Febr uary 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the deman ds. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting preliminary settlement discussions, however, the ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations f or 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 cove red losses or liabilities being claimed by an indemnified party. LKE cannot predict the ultimate outcomes of the indemnification circumstances, but does not 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 | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
PPL Electric Utilities Corp [Member] | PPL Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | $ 37 | $ 30 | |
PPL Electric Utilities Corp [Member] | PPL EU Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | 17 | 15 | |
LG And E And KU Energy LLC [Member] | |||
Intercompany Borrowings (Numeric) [Abstract] | |||
Notes payable to affiliates | 147 | $ 54 | |
Long-term debt to affiliate | 400 | $ 400 | |
LG And E And KU Energy LLC [Member] | PPL Services [Member] | |||
Support Costs (Details) [Abstract] | |||
Support cost allocations from subsidiary of parent to registrant | $ 5 | 4 | |
LG And E And KU Energy LLC [Member] | PPL Energy Funding [Member] | |||
Intercompany Borrowings (Numeric) [Abstract] | |||
Intercompany borrowings demand note rate on outstanding borrowing | 1.94% | 1.74% | |
Intercompany note with affiliate maximum borrowing capacity | $ 225 | ||
LG And E And KU Energy LLC [Member] | PPL Affiliate [Member] | |||
Intercompany Borrowings (Numeric) [Abstract] | |||
Intercompany note with affiliate maximum borrowing capacity | $ 400 | ||
Interest rate on ten-year note | 3.50% | ||
Louisville Gas And Electric Co [Member] | LKS [Member] | |||
Intercompany Billings by LKS (Details) [Abstract] | |||
Intercompany billings between affiliates | $ 47 | 51 | |
Kentucky Utilities Co [Member] | LKS [Member] | |||
Intercompany Billings by LKS (Details) [Abstract] | |||
Intercompany billings between affiliates | $ 56 | $ 56 |
Other Income (Expense) - net (D
Other Income (Expense) - net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Expense [Line Items] | ||
Other Income (Expense) - net | $ 61 | $ 88 |
PPL Electric Utilities Corp [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | 3 | 2 |
LG And E And KU Energy LLC [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | (1) | (1) |
Louisville Gas And Electric Co [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | 0 | (1) |
Kentucky Utilities Co [Member] | ||
Other Expense [Line Items] | ||
Other Income (Expense) - net | $ (2) | $ (1) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis Table) (Details) - Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Assets | |||
Cash and cash equivalents | $ 814 | $ 836 | |
Restricted cash and cash equivalents | [1] | 32 | 33 |
Price risk management assets: | |||
Foreign currency contracts assets | [2] | 249 | 209 |
Cross-currency swaps assets | [2] | 188 | 86 |
Total price risk management assets | [2] | 437 | 295 |
Auction rate securities | [3] | 2 | 2 |
Total assets | 1,285 | 1,166 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | [2] | 95 | 71 |
Foreign currency contracts liabilities | [2] | 3 | 1 |
Total price risk management liabilities | [2] | 98 | 72 |
Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 814 | 836 | |
Restricted cash and cash equivalents | [1] | 32 | 33 |
Price risk management assets: | |||
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 | 846 | 869 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | 0 | 0 | |
Foreign currency contracts liabilities | 0 | 0 | |
Total price risk management liabilities | 0 | 0 | |
Level 2 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Price risk management assets: | |||
Foreign currency contracts assets | [2] | 249 | 209 |
Cross-currency swaps assets | [2] | 188 | 86 |
Total price risk management assets | [2] | 437 | 295 |
Auction rate securities | 0 | 0 | |
Total assets | 437 | 295 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | [2] | 95 | 71 |
Foreign currency contracts liabilities | [2] | 3 | 1 |
Total price risk management liabilities | [2] | 98 | 72 |
Level 3 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |
Price risk management assets: | |||
Foreign currency contracts assets | 0 | 0 | |
Cross-currency swaps assets | 0 | 0 | |
Total price risk management assets | 0 | 0 | |
Auction rate securities | [3] | 2 | 2 |
Total assets | 2 | 2 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | 0 | 0 | |
Foreign currency contracts liabilities | 0 | 0 | |
Total price risk management liabilities | 0 | 0 | |
PPL Electric Utilities Corp [Member] | |||
Assets | |||
Cash and cash equivalents | 34 | 47 | |
Restricted cash and cash equivalents | [1] | 2 | 2 |
Price risk management assets: | |||
Total assets | 36 | 49 | |
PPL Electric Utilities Corp [Member] | Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 34 | 47 | |
Restricted cash and cash equivalents | [1] | 2 | 2 |
Price risk management assets: | |||
Total assets | 36 | 49 | |
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 | 28 | 30 | |
Price risk management assets: | |||
Cash collateral posted to counterparties | [4] | 8 | 9 |
Total assets | 36 | 39 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | 53 | 47 | |
Total price risk management liabilities | 53 | 47 | |
LG And E And KU Energy LLC [Member] | Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 28 | 30 | |
Price risk management assets: | |||
Cash collateral posted to counterparties | [4] | 8 | 9 |
Total assets | 36 | 39 | |
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 | 53 | 47 | |
Total price risk management liabilities | 53 | 47 | |
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 | 11 | 19 | |
Price risk management assets: | |||
Cash collateral posted to counterparties | [4] | 8 | 9 |
Total assets | 19 | 28 | |
Price risk management liabilities: | |||
Interest rate swaps liabilities | 53 | 47 | |
Total price risk management liabilities | 53 | 47 | |
Louisville Gas And Electric Co [Member] | Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 11 | 19 | |
Price risk management assets: | |||
Cash collateral posted to counterparties | [4] | 8 | 9 |
Total assets | 19 | 28 | |
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 | 53 | 47 | |
Total price risk management liabilities | 53 | 47 | |
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 | 17 | 11 | |
Price risk management assets: | |||
Total assets | 17 | 11 | |
Kentucky Utilities Co [Member] | Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 17 | 11 | |
Price risk management assets: | |||
Total assets | 17 | 11 | |
Kentucky Utilities Co [Member] | Level 2 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Price risk management assets: | |||
Total assets | 0 | 0 | |
Kentucky Utilities Co [Member] | Level 3 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Price risk management assets: | |||
Total assets | $ 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] | Current portion is included in "Price risk management assets" and "Other current liabilities" and n oncurrent portion is included in "Price risk management 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 counterparties 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 | Mar. 31, 2016 | Dec. 31, 2015 | |
Carrying Amount [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | [1] | $ 18,559 | $ 19,048 |
Fair Value [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | 21,046 | 21,218 | |
PPL Electric Utilities Corp [Member] | Carrying Amount [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | [1] | 2,829 | 2,828 |
PPL Electric Utilities Corp [Member] | Fair Value [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | 3,216 | 3,088 | |
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 | [1] | 5,088 | 5,088 |
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 | 5,625 | 5,384 | |
Louisville Gas And Electric Co [Member] | Carrying Amount [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | [1] | 1,642 | 1,642 |
Louisville Gas And Electric Co [Member] | Fair Value [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | 1,779 | 1,704 | |
Kentucky Utilities Co [Member] | Carrying Amount [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | [1] | 2,326 | 2,326 |
Kentucky Utilities Co [Member] | Fair Value [Member] | |||
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | |||
Long-term debt | $ 2,587 | $ 2,467 | |
[1] | A mount s are net of debt issuance costs. |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities (Intro) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Master Netting Arrangements (Numeric) [Line Items] | ||
Obligation to return cash collateral obligation under master netting arrangement | $ 15 | |
Cash collateral posted under master netting arrangements | 8 | $ 9 |
LG And E And KU Energy LLC [Member] | ||
Master Netting Arrangements (Numeric) [Line Items] | ||
Cash collateral posted under master netting arrangements | 8 | 9 |
Louisville Gas And Electric Co [Member] | ||
Master Netting Arrangements (Numeric) [Line Items] | ||
Cash collateral posted under master netting arrangements | $ 8 | $ 9 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities (Risk Disclosures) (Details) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016GBP (£) | Mar. 31, 2016USD ($) | |
Cash Flow Hedges [Member] | Interest Rate Swap Contracts [Member] | ||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | ||||
Notional amount | $ 300 | |||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | ||||
Year of expiration of the maximum maturity date of interest rate cash flow hedge contracts | 2,026 | |||
Insignificant or no hedge ineffectiveness associated with interest rate cash flow hedges | For the three months ended March 31, 2016 and 2015, PPL had no hedge ineffectiveness associated with interest rate derivatives. | |||
No or insignificant after-tax gains (losses) previously recorded in AOCI reclassified to earnings related to interest rate cash flow hedge contracts | For the three months ended March 31, 2016, PPL had an insignificant amount of cash flow hedges reclassified into earnings associated with discontinued cash flow hedges and no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges for the three months ended March 31, 2015. | |||
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 March 31, 2016, 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 | |||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | ||||
Latest maturity date of cross-currency cash flow hedge contracts | 2,028 | |||
Earliest maturity date of cross-currency cash flow hedge contracts | 2,016 | |||
Economic Hedges [Member] | Interest Rate Swap Contracts [Member] | ||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | ||||
Notional amount | 179 | |||
Interest Rate Risk - Economic Activity (Numeric) [Abstract] | ||||
Year of expiration of the maximum maturity date of interest rate economic activity contracts | 2,033 | |||
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 | £ 2,000 | 3,100 | ||
Earliest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | April 2,016 | |||
Latest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | November 2,018 | |||
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | ||||
Interest Rate Risk And Foreign Currency Risk [Line Items] | ||||
Notional amount | £ 116 | 180 | ||
Foreign Currency Risk - Economic Activity (Numeric) [Abstract] | ||||
Earliest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | April 2,016 | |||
Latest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity | June 2,016 | |||
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 | $ 21 | $ 19 | ||
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member] | ||||
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract] | ||||
Principal amount | 224 | |||
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 | |||
Interest Rate Risk - Economic Activity (Numeric) [Abstract] | ||||
Year of expiration of the maximum maturity date of interest rate economic activity contracts | 2,033 | |||
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 | |||
Interest Rate Risk - Economic Activity (Numeric) [Abstract] | ||||
Year of expiration of the maximum maturity date of interest rate economic activity contracts | 2,033 |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities (Fair Values) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Derivatives Designated As Hedging Instruments [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | $ 200 | $ 96 | |
Liability value | 42 | 24 | |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1] | 83 | 45 |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | 0 | 0 | |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1],[2] | 71 | 35 |
Derivatives Designated As Hedging Instruments [Member] | Current Assets [Member] | Foreign Currency Contracts [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1] | 12 | 10 |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1] | 117 | 51 |
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] | 117 | 51 |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | 0 | 0 | |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | [1] | 42 | 24 |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | [1],[2] | 42 | 24 |
Derivatives Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | 0 | 0 | |
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 | 0 | 0 | |
Derivatives Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | 0 | 0 | |
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 | 237 | 199 | |
Liability value | 56 | 48 | |
Derivatives Not Designated As Hedging Instruments [Member] | Current Assets [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1] | 100 | 94 |
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] | 100 | 94 |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Asset value | [1] | 137 | 105 |
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] | 137 | 105 |
Derivatives Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | [1] | 9 | 6 |
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] | 6 | 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 | [1] | 3 | 1 |
Derivatives Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | |||
Fair Values by Balance Sheet Location [Abstract] | |||
Liability value | [1] | 47 | 42 |
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] | 47 | 42 |
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 | 0 | 0 | |
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 | 53 | 47 | |
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 | 6 | 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] | 6 | 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 | 47 | 42 | |
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] | 47 | 42 |
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 | 53 | 47 | |
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 | 6 | 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] | 6 | 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 | 47 | 42 | |
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] | $ 47 | $ 42 |
[1] | Current portion is included in " Price risk management assets " and "Other current liabilities" and noncurrent portion is included in " Price risk management 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 Sheet s . |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities (Gains and Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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) | $ 97 | $ 21 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
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) | 95 | 2 |
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) | (18) | (19) |
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) | (1) | (4) |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Comprehensive Income [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in OCI on derivative (effective portion) | 113 | 21 |
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 | 1 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Income (Expense) Net [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 97 | 17 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Discontinued Operations [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) reclassified from AOCI into income on derivative (effective portion) | 0 | 7 |
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 |
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | Other Comprehensive Income [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in OCI on derivative (effective portion) | 3 | 16 |
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 | 0 | (56) |
Derivatives Not Designated As Hedging Instruments [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in income on derivative | 58 | 86 |
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 | (6) | (4) |
Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in income on derivative | (2) | (2) |
Derivatives Not Designated As Hedging Instruments [Member] | 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 | 60 | 88 |
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 | 0 | (56) |
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 | (6) | (4) |
LG And E And KU Energy LLC [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in income on derivative | (2) | (2) |
Louisville Gas And Electric Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized as regulatory liabilities/assets | 0 | (28) |
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 | (6) | (4) |
Louisville Gas And Electric Co [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized in income on derivative | (2) | (2) |
Kentucky Utilities Co [Member] | Derivatives Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member] | ||
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract] | ||
Gain (loss) recognized as regulatory liabilities/assets | $ 0 | $ (28) |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities (Offseting Derivative Instruments and Credit Risk-Related Features) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Credit Risk-Related Contingent Features [Abstract] | |||
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features | $ 31 | ||
Aggregate fair value of collateral posted on these derivative instruments | 8 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 23 | |
Treasury Derivatives [Member] | |||
Offsetting Assets And Liabilities [Line Items] | |||
Gross assets | 437 | $ 295 | |
Derivative instruments eligible for offset - assets | 45 | 25 | |
Cash collateral received eligible for offset - assets | 15 | 0 | |
Net assets | 377 | 270 | |
Gross liabilities | 98 | 72 | |
Derivative instruments eligible for offset - liabilities | 45 | 25 | |
Cash collateral pledged eligible for offset - liabilities | 8 | 9 | |
Net liabilities | 45 | 38 | |
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 | 8 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 22 | |
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 | 53 | 47 | |
Derivative instruments eligible for offset - liabilities | 0 | 0 | |
Cash collateral pledged eligible for offset - liabilities | 8 | 9 | |
Net liabilities | 45 | 38 | |
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 | 8 | ||
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade | [1] | 22 | |
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 | 53 | 47 | |
Derivative instruments eligible for offset - liabilities | 0 | 0 | |
Cash collateral pledged eligible for offset - liabilities | 8 | 9 | |
Net liabilities | $ 45 | $ 38 | |
[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 | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | $ 586 | |
Accretion | 6 | |
Effect of foreign currency exchange rates | (4) | |
Obligations settled | (1) | |
Balance at End of Period | 587 | |
LG And E And KU Energy LLC [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 535 | |
Accretion | 6 | |
Obligations settled | (1) | |
Balance at End of Period | 540 | |
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract] | ||
Asset retirement obligation classified as current liabilities | 70 | $ 50 |
Louisville Gas And Electric Co [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 175 | |
Accretion | 2 | |
Obligations settled | (1) | |
Balance at End of Period | 176 | |
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract] | ||
Asset retirement obligation classified as current liabilities | 40 | 25 |
Kentucky Utilities Co [Member] | ||
Asset Retirement Obligation [Rollforward] | ||
Balance at Beginning of Period | 360 | |
Accretion | 4 | |
Obligations settled | 0 | |
Balance at End of Period | 364 | |
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract] | ||
Asset retirement obligation classified as current liabilities | $ 30 | $ 25 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Loss) (After-tax Changes by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ (2,728) | $ (2,274) |
Amounts arising during the period | (384) | (56) |
Reclassifications from accumulated other comprehensive income | (47) | 19 |
Net other comprehensive income during the period | (431) | (37) |
Balance at end of period | (3,159) | (2,311) |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (520) | (286) |
Amounts arising during the period | (464) | (66) |
Reclassifications from accumulated other comprehensive income | 0 | 0 |
Net other comprehensive income during the period | (464) | (66) |
Balance at end of period | (984) | (352) |
Available For Sale Securities Unrealized Gains (Losses) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 0 | 201 |
Amounts arising during the period | 0 | 5 |
Reclassifications from accumulated other comprehensive income | 0 | (1) |
Net other comprehensive income during the period | 0 | 4 |
Balance at end of period | 0 | 205 |
Qualifying Derivatives Unrealized Gains (Losses) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (7) | 20 |
Amounts arising during the period | 80 | 6 |
Reclassifications from accumulated other comprehensive income | (78) | (17) |
Net other comprehensive income during the period | 2 | (11) |
Balance at end of period | (5) | 9 |
Equity Investees Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 0 | 1 |
Amounts arising during the period | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | (1) |
Net other comprehensive income during the period | 0 | (1) |
Balance at end of period | 0 | 0 |
Defined Benefit Plans Prior Service Costs [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (6) | 3 |
Amounts arising during the period | 0 | 0 |
Reclassifications from accumulated other comprehensive income | 0 | 0 |
Net other comprehensive income during the period | 0 | 0 |
Balance at end of period | (6) | 3 |
Defined Benefit Plans Actuarial Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (2,195) | (2,213) |
Amounts arising during the period | 0 | (1) |
Reclassifications from accumulated other comprehensive income | 31 | 38 |
Net other comprehensive income during the period | 31 | 37 |
Balance at end of period | (2,164) | $ (2,176) |
LG And E And KU Energy LLC [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Net other comprehensive income during the period | $ 1 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) (Income (Expense) Effect of Reclassifications) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Affected Line Item on the Statements of Income [Line Items] | ||
Depreciation | $ (229) | $ (216) |
Other Income (Expense) - net | 61 | 88 |
Interest Expense | (224) | (209) |
Total Pre-tax | 660 | 769 |
Income tax benefit | (179) | (217) |
Total After-Tax | 481 | 552 |
Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total After-Tax | 47 | (19) |
Commodity Contracts [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Discontinued operations | 0 | 7 |
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 | 2 |
Total Pre-tax | 0 | 2 |
Income tax benefit | 0 | (1) |
Total After-Tax | 0 | 1 |
Qualifying Derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | 97 | 21 |
Income tax benefit | (19) | (4) |
Total After-Tax | 78 | 17 |
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 | (1) | (4) |
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 | 97 | 17 |
Interest Expense | 1 | 1 |
Defined Benefit Plans [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member] | ||
Affected Line Item on the Statements of Income [Line Items] | ||
Total Pre-tax | (40) | (51) |
Income tax benefit | 9 | 13 |
Total After-Tax | (31) | (38) |
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 | (40) | (51) |
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 | 2 |
Total Pre-tax | 0 | 2 |
Income tax benefit | 0 | (1) |
Total After-Tax | $ 0 | $ 1 |