Available-for-Sale Securities

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Available-for-Sale Securities

17. Available-for-Sale Securities

Securities held by Talen Energy’s NDT funds and auction rate securities are classified as available-for-sale. Available-for-sale securities are carried on the Balance Sheets at fair value. Unrealized gains and losses on these securities are reported, net of tax, in OCI or are recognized currently in earnings when a decline in fair value is determined to be other-than-temporary. The specific identification method is used to calculate realized gains and losses.

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI and the fair value of Talen Energy’s available-for-sale securities.

	June 30, 2015								December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
NDT funds:
Cash and cash equivalents	$	15	$	—	$	—	$	15	$	19	$	—	$	—	$	19
Equity securities		292		420		—		712		283		417		—		700
Debt securities		225		7		1		231		218		11		—		229
Receivables/payables, net		—		—		—		—		2		—		—		2
Total NDT funds	$	532	$	427	$	1	$	958	$	522	$	428	$	—	$	950
Auction rate securities	$	7	$	—	$	—	$	7	$	8	$	—	$	—	$	8

See Note 13 for details on the securities held by the NDT funds.

There were no securities with credit losses at June 30, 2015 and December 31, 2014.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2015.

	Maturity Less Than 1 Year		Maturity 1-5 Years		Maturity 6-10 Years		Maturity in Excess of 10 Years		Total
Amortized cost	$	10	$	82	$	75	$	65	$	232
Fair value		10		84		76		68		238

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the period ended June 30.

	Six Months
	2015		2014
Proceeds from sales of NDT securities (a)	$	100	$	65
Other proceeds from sales		—		3
Gross realized gains (b)		13		8
Gross realized losses (b)		9		4

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized on the Statements of Income.

PPL Energy Supply LLC [Member]

Available-for-Sale Securities

16. Available-for-Sale Securities

Securities held by the NDT funds and auction rate securities are classified as available-for-sale.

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI and the fair value of available-for-sale securities.

	December 31, 2014							December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses	Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
NDT funds:
Cash and cash equivalents	$	19				$	19	$	14					$	14
Equity securities		283	$	417			700		265	$	363				628
Debt securities		218		11			229		217		7	$	3		221
Receivables/payables, net		2					2		1						1
Total NDT funds	$	522	$	428		$	950	$	497	$	370	$	3	$	864
Auction rate securities:	$	8					8	$	17			$	1	$	16

See Note 12 for details on the securities held by the NDT funds.

There were no securities with credit losses at December 31, 2014 and 2013.

The following table shows the scheduled maturity dates of debt securities held at December 31, 2014.

	Maturity Less Than 1 Year		Maturity 1-5 Years		Maturity 6-10 Years		Maturity in Excess 10 Year		Total
Amortized cost	$	10	$	87	$	64	$	65	$	226
Fair value		10		89		67		71		237

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities.

	2014		2013		2012
Proceeds from sales of NDT securities (a)	$	154	$	144	$	139
Other proceeds from sales		9				3
Gross realized gains (b)		23		17		29
Gross realized losses (b)		10		7		21

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized on the Statements of Income.

NDT Funds

Amounts previously collected from PPL Electric’s customers for decommissioning the Susquehanna nuclear plant, less applicable taxes, were deposited in external trust funds for investment and can only be used for future decommissioning costs. To the extent that the actual costs for decommissioning exceed the amounts in the nuclear decommissioning trust funds, PPL Susquehanna would be obligated to fund 90% of the shortfall.