Utility Rate Regulation (Tables)

12 Months Ended

Dec. 31, 2011

Utility Rate Regulation [Abstract]

Regulatory Assets

The following tables provide information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

		PPL				PPL Electric
		2011		2010		2011		2010
Current Regulatory Assets:
	Generation supply charge (a)			$	45			$	45
	Universal service rider				10				10
	Gas supply clause	$	6		4
	Fuel adjustment clause		3		3
	Other				23				8
Total current regulatory assets		$	9	$	85			$	63
Noncurrent Regulatory Assets:
	Defined benefit plans	$	615	$	592	$	276	$	262
	Taxes recoverable through future rates		289		254		289		254
	Storm costs		154		129		31		7
	Unamortized loss on debt		110		61		77		27
	Interest rate swaps		69		43
	Accumulated cost of removal of utility plant (b)		53		35		53		35
	Coal contracts (c)		11		22
	AROs		18		9
	Other		30		35		3		7
Total noncurrent regulatory assets		$	1,349	$	1,180	$	729	$	592

(a)       PPL Electric's generation supply charge recovery mechanism moved from an undercollected status at December 31, 2010 to an overcollected status at December 31, 2011, reflecting the impacts of changes in customer billing cycles, the timing of rate reconciliation filings, the levels of customers choosing alternative energy suppliers and other factors. Because customer rates are designed to collect the costs of PPL Electric's energy purchases to meet its PLR requirements, there is minimal impact on earnings.

(b)       The December 31, 2010 balance of accumulated cost of removal of utility plant was reclassified from "Accumulated depreciation - regulated utility plant" to noncurrent "Regulatory assets" on the Balance Sheets. These costs will continue to be included in future rate proceedings.

(c)       These regulatory assets and liabilities were recorded as offsets to certain intangible assets and liabilities that were recorded at fair value upon the acquisition of LKE.

Regulatory Liabilities

The following tables provide information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

Current Regulatory Liabilities:
	Coal contracts (c)			$	46
	Generation supply charge (a)	$	42			$	42
	ECR		7		12
	PURTA tax				10			$	10
	Gas supply clause		6		9
	Transmission service charge		2		8		2		8
	Other		16		24		9
Total current regulatory liabilities		$	73	$	109	$	53	$	18
Noncurrent Regulatory Liabilities:
	Accumulated cost of removal of utility plant	$	651	$	623
	Coal contracts (c)		180		213
	Power purchase agreement - OVEC (c)		116		124
	Net deferred tax assets		39		40
	Act 129 compliance rider		7		14	$	7	$	14
	Defined benefit plans		9		10
	Other		8		7
Total noncurrent regulatory liabilities		$	1,010	$	1,031	$	7	$	14

(a)       PPL Electric's generation supply charge recovery mechanism moved from an undercollected status at December 31, 2010 to an overcollected status at December 31, 2011, reflecting the impacts of changes in customer billing cycles, the timing of rate reconciliation filings, the levels of customers choosing alternative energy suppliers and other factors. Because customer rates are designed to collect the costs of PPL Electric's energy purchases to meet its PLR requirements, there is minimal impact on earnings.

(c)       These regulatory assets and liabilities were recorded as offsets to certain intangible assets and liabilities that were recorded at fair value upon the acquisition of LKE.