Acquisitions, Development and Divestures (Tables)

6 Months Ended

Jun. 30, 2011

Notes To Financial Statements [Abstract]

Schedule of Acquisition

The fair value of the consideration paid for Central Networks was as follows (in billions):

Aggregate enterprise consideration	$	6.6
Less: fair value of long-term debt outstanding assumed through consolidation		0.8
Total cash consideration paid		5.8
Less: funds made available to Central Networks to repay pre-acquisition affiliate indebtedness		1.7
Cash consideration paid for Central Networks' outstanding ordinary share capital	$	4.1

The following table summarizes (in billions) the preliminary allocation of the purchase price to the fair value of the major classes of assets acquired and liabilities assumed.

Current assets (a)	$	0.3
PP&E		4.9
Intangible assets (b)		0.1
Other noncurrent assets		0.1
Current liabilities (c)		(0.6)
PPL WEM affiliate indebtedness		(1.7)
Long-term debt (current and noncurrent) (c)		(0.8)
Other noncurrent liabilities (c)		(0.5)
Net identifiable assets acquired		1.8
Goodwill		2.3
Net assets acquired	$	4.1

(a)       Includes gross contractual amount of the accounts receivable acquired of $119million, which approximates fair value.

(b)       Intangible assets recorded include $88 million of easements, which have an indefinite life, and $11 million of customer contracts, which have a weighted-average amortization period of 10 years.

(c)       Represents non-cash activity excluded from the Statement of Cash Flows for the six months ended June 30, 2011.

The pro forma operating revenues and net income attributable to PPL for theperiods ended June 30,which includes LKE as if the acquisition had occurred January 1, 2009 and WPD Midlands as if the acquisition had occurred January 1, 2010, are as follows.

	Three Months				Six Months
	2011		2010		2011		2010
Operating Revenues - PPL consolidated pro forma	$	2,570	$	2,324	$	5,772	$	6,351
Net Income (Loss) Attributable to PPL - PPL consolidated pro forma		319		172		820		554

Nonrecurring adjustments include the following credits (expenses):

		Income Statement	Three Months				Six Months
		Line Item	2011		2010		2011		2010
WPD Midlands acquisition
	2011 Bridge facility costs	Interest Expense	$	(36)			$	(43)
	Foreign currency loss on 2011 Bridge Facility	Other Income (Expense) - net		(58)				(58)
	Net hedge gains associated with the 2011 Bridge Facility	Other Income (Expense) - net		63				56
	Hedge ineffectiveness	Interest Expense		(12)				(12)
	U.K. stamp duty tax	Other Income (Expense) - net		(21)				(21)
	Other acquisition-related costs	(a)		(42)				(52)
LKE acquisition
	2010 Bridge facility costs	Interest Expense			$	(22)			$	(22)
	Other acquisition-related costs	Other Income (Expense) - net				(7)				(7)

(a)Primarily includes advisory, accounting and legal fees recorded in "Other Income (Expense) - net" and the separation costs recognized during the second quarter of 2011 as noted above, recorded in "Other operation and maintenance" on the Statements of Income.

Components of Discontinued Operations

Sale of Certain Non-core Generation Facilities

Following are the components of Discontinued Operations in the Statements of Income for the periods ended June 30.

	Three Months				Six Months
	2011		2010		2011		2010
Operating revenues			$	29	$	19	$	57
Operating expenses	$	2		17		11		29
Operating income		(2)		12		8		28
Other income (expense) - net				1				1
Interest expense (a)				1		3		3
Income before income taxes		(2)		12		5		26
Income tax expense		(1)		5		3		11
Income (Loss) from Discontinued Operations	$	(1)	$	7	$	2	$	15

(a)       Represents allocated interest expense based upon debt attributable to the generation facilities sold.