Fair Value Measurements and Credit Concentration (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Measurements and Credit Concentration [Abstract]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The assets and liabilities measured at fair value were:

				December 31, 2011								December 31, 2010
				Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
	Cash and cash equivalents			$	1,202	$	1,202					$	925	$	925
	Short-term investments - municipal debt
		securities											163		163
	Restricted cash and cash equivalents (a)				209		209						66		66
	Price risk management assets:
		Energy commodities			3,423		3	$	3,390	$	30		2,503			$	2,452	$	51
		Interest rate swaps			3				3				15				15
		Foreign currency exchange contracts			18				18				11				11
		Cross-currency swaps			24				20		4		44				44
	Total price risk management assets				3,468		3		3,431		34		2,573				2,522		51
	NDT funds:
		Cash and cash equivalents			12		12						10		10
		Equity securities
			U.S. large-cap		292		202		90				303		207		96
			U.S. mid/small-cap		117		87		30				119		89		30
		Debt securities
			U.S. Treasury		86		86						75		75
			U.S. government sponsored agency		10				10				7				7
			Municipality		83				83				69				69
			Investment-grade corporate		38				38				33				33
			Other		2				2				1				1
		Receivables (payables), net					(3)		3				1		(1)		2
	Total NDT funds				640		384		256				618		380		238
	Auction rate securities (b)				24						24		25						25
Total assets				$	5,543	$	1,798	$	3,687	$	58	$	4,370	$	1,534	$	2,760	$	76

Liabilities
	Price risk management liabilities:
		Energy commodities		$	2,345	$	1	$	2,327	$	17	$	1,552			$	1,498	$	54
		Interest rate swaps			63				63				53				53
		Cross-currency swaps			2				2				9				9
	Total price risk management liabilities			$	2,410	$	1	$	2,392	$	17	$	1,614			$	1,560	$	54

PPL Energy Supply
Assets
	Cash and cash equivalents			$	379	$	379					$	661	$	661
	Restricted cash and cash equivalents (a)				145		145						26		26
	Price risk management assets:
		Energy commodities			3,423		3	$	3,390	$	30		2,503			$	2,452	$	51
		Foreign currency exchange contracts											11				11
		Cross-currency swaps											44				44
	Total price risk management assets				3,423		3		3,390		30		2,558				2,507		51
	NDT funds:
		Cash and cash equivalents			12		12						10		10
		Equity securities
			U.S. large-cap		292		202		90				303		207		96
			U.S. mid/small-cap		117		87		30				119		89		30
		Debt securities
			U.S. Treasury		86		86						75		75
			U.S. government sponsored agency		10				10				7				7
			Municipality		83				83				69				69
			Investment-grade corporate		38				38				33				33
			Other		2				2				1				1
		Receivables (payables), net					(3)		3				1		(1)		2
	Total NDT funds				640		384		256				618		380		238
	Auction rate securities (b)				19						19		20						20
Total assets				$	4,606	$	911	$	3,646	$	49	$	3,883	$	1,067	$	2,745	$	71

Liabilities
	Price risk management liabilities:
		Energy commodities		$	2,345	$	1	$	2,327	$	17	$	1,541			$	1,487	$	54
		Cross-currency swaps											9				9
	Total price risk management liabilities			$	2,345	$	1	$	2,327	$	17	$	1,550			$	1,496	$	54

PPL Electric
Assets
	Cash and cash equivalents			$	320	$	320					$	204	$	204
	Restricted cash and cash equivalents (c)				13		13						14		14
Total assets				$	333	$	333					$	218	$	218

(a) Current portion is included in "Restricted cash and cash equivalents" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(b) Included in "Other investments" on the Balance Sheets.

(c) Current portion is included in "Other current assets" on the Balance Sheets. Such amounts were insignificant at December 31, 2011 and December 31, 2010. The long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(d) Included in "Other current liabilities" on the Balance Sheets.

(e) Current portion is included in "Other current liabilities" on the Balance Sheets. The long-term portion is included in "Price risk management liabilities" on the Balance Sheets.

Reconciliation of Net Assets and Liabilities Classified as Level 3

A reconciliation of net assets and liabilities classified as Level 3 for the years ended is as follows:

			PPL
			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Energy		Auction		Cross-
			Commodities,		Rate		Currency
			net		Securities		Swaps		Total
December 31, 2011
Balance at beginning of period			$	(3)	$	25			$	22
	Total realized/unrealized gains (losses)
		Included in earnings		(65)						(65)
		Included in OCI (a)		(1)		(1)	$	(10)		(12)
	Purchases			1						1
	Sales			(3)						(3)
	Settlements			20						20
	Transfers into Level 3			(10)				14		4
	Transfers out of Level 3			74						74
Balance at end of period			$	13	$	24	$	4	$	41

December 31, 2010
Balance at beginning of period			$	107	$	25			$	132
	Total realized/unrealized gains (losses)
		Included in earnings		(137)						(137)
		Included in OCI (a)		11						11
	Net purchases, sales, issuances and settlements (b)			(16)						(16)
	Transfers into Level 3			(15)						(15)
	Transfers out of Level 3			47						47
Balance at end of period			$	(3)	$	25			$	22

(a) "Energy Commodities" and "Cross-Currency Swaps" are included in "Qualifying derivatives" and "Auction Rate Securities" are included in "Available-for-sale securities" on the Statements of Comprehensive Income.

(b) Accounting guidance effective January 1, 2011 requires purchase, sale, issuance and settlement transactions within Level 3 to be presented on a gross basis. The transactions in 2010 are reported on a net basis.

Fair Value of Assets and Liabilities Classified as Level 3 Measured on Recurring Basis Included in Earnings

Net gains and losses on assets and liabilities classified as Level 3 and included in earnings for the years ended were reported in the Statements of Income as follows:

		PPL and PPL Energy Supply
		Energy Commodities, net


			Unregulated Retail		Wholesale Energy		Net Energy
			Electric and Gas		Marketing		Trading Margins		Energy Purchases
December 31, 2011
Total gains (losses) included in earnings			$	32			$	(1)	$	(96)
Change in unrealized gains (losses) relating to
	positions still held at the reporting date			23	$	5		1		(2)

December 31, 2010
Total gains (losses) included in earnings				11		14				(162)
Change in unrealized gains (losses) relating to
	positions still held at the reporting date			4		6				(119)

Fair Value of Assets and Liabilities Measured on Nonrecurring Basis

The following nonrecurring fair value measurements occurred during the reporting periods, resulting in asset impairments.

		Carrying		Fair Value Measurements Using
		Amount (a)		Level 2		Level 3		Loss (b)
Sulfur dioxide emission allowances (c):
	September 30, 2011	$	1					$	1
	March 31, 2011		1						1
	December 31, 2010		2			$	1		1
	September 30, 2010		6				2		4
	June 30, 2010		11				3		8
	March 31, 2010		13				10		3
	December 31, 2009		20				13		7
	March 31, 2009		45				15		30
RECs (c):
	September 30, 2011		1						1
	June 30, 2011		2	$	1				1
	March 31, 2011		3						3
Certain non-core generation facilities:
	September 30, 2010		473		381				96
Long Island generation business:
	December 31, 2009		132		128				5
	September 30, 2009		137		133				5
	June 30, 2009		189		138				52

(a) Represents carrying value before fair value measurement.

(b) Losses on sulfur dioxide emission allowances and RECs were recorded in the Supply segment and included in "Other operation and maintenance" on the Statements of Income. Losses on certain non-core generation facilities and the Long Island generation business were recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income.

(c) Current and long-term sulfur dioxide emission allowances and RECs are included in "Other intangibles" in their respective areas on the Balance Sheets.

Fair value of Financial Instruments Not Recorded at Fair Value - Other

Financial Instruments Not Recorded at Fair Value (PPL, PPL Energy Supply, PPL Electric, LKE, LG&E and KU)

		December 31, 2011				December 31, 2010
		Carrying				Carrying
		Amount		Fair Value		Amount		Fair Value
PPL
	Contract adjustment payments (a)	$	198	$	198	$	146	$	148
	Long-term debt		17,993		19,392		12,663		12,868
PPL Energy Supply
	Long-term debt		3,024		3,397		5,589		5,919
PPL Electric
	Long-term debt		1,718		2,012		1,472		1,578

(a) Included in "Other current liabilities" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

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- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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