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Available-for-Sale Securities
 12 Months Ended
Dec. 31, 2012
Available-for-Sale Securities [Line Items]  
Available-for-Sale Securities

23. Available-for-Sale Securities

 

(PPL, PPL Energy Supply, LKE and LG&E)

 

Certain short-term investments, 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, 2012 December 31, 2011
          Gross Gross      Gross Gross  
       Amortized   Unrealized   Unrealized    Amortized  Unrealized  Unrealized   
       Cost Gains Losses Fair Value  Cost  Gains Losses Fair Value
PPL                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   20      1   19   25      1   24
 Total  $ 494 $ 239 $ 2 $ 731 $ 479 $ 187 $ 2 $ 664
                              
PPL Energy Supply                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   17      1   16   20      1   19
 Total $ 491 $ 239 $ 2 $ 728 $ 474 $ 187 $ 2 $ 659

There were no securities with credit losses at December 31, 2012 and 2011.

 

The following table shows the scheduled maturity dates of debt securities held at December 31, 2012.

   Maturity Maturity Maturity Maturity   
    Less Than1-56-10in Excess  
   1 YearYearsYearsof 10 YearsTotal
PPL               
Amortized cost $ 12 $ 79 $ 62 $ 78 $ 231
Fair value   12   83   68   85   248
                 
PPL Energy Supply               
Amortized cost $ 12 $ 79 $ 62 $ 75 $ 228
Fair value   12   83   68   82   245

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities.
           
   2012 2011 2010
PPL         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    5   163   
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5
           
PPL Energy Supply         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    3      
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5

(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.

Short-term Investments (PPL, LKE and LG&E)

 

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. In 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

 

NDT Funds (PPL and PPL Energy Supply)

 

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.

 

When the fair value of a security is less than amortized cost, PPL and PPL Energy Supply must make certain assertions to avoid recording an other-than-temporary impairment that requires a current period charge to earnings. The NRC requires that nuclear decommissioning trusts be managed by independent investment managers, with discretion to buy and sell securities in the trusts. As a result, PPL and PPL Energy Supply have been unable to demonstrate the ability to hold an impaired security until it recovers its value; therefore, unrealized losses on equity securities for all periods presented, represented other-than-temporary impairments that required a current period charge to earnings. PPL and PPL Energy Supply recorded impairments for certain securities invested in the NDT funds of $1 million, $6 million and $3 million for 2012, 2011 and 2010. These impairments are reflected on the Statements of Income in "Other-Than-Temporary Impairments."

PPL Energy Supply LLC [Member]
  
Available-for-Sale Securities [Line Items]  
Available-for-Sale Securities

23. Available-for-Sale Securities

 

(PPL, PPL Energy Supply, LKE and LG&E)

 

Certain short-term investments, 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, 2012 December 31, 2011
          Gross Gross      Gross Gross  
       Amortized   Unrealized   Unrealized    Amortized  Unrealized  Unrealized   
       Cost Gains Losses Fair Value  Cost  Gains Losses Fair Value
PPL                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   20      1   19   25      1   24
 Total  $ 494 $ 239 $ 2 $ 731 $ 479 $ 187 $ 2 $ 664
                              
PPL Energy Supply                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   17      1   16   20      1   19
 Total $ 491 $ 239 $ 2 $ 728 $ 474 $ 187 $ 2 $ 659

There were no securities with credit losses at December 31, 2012 and 2011.

 

The following table shows the scheduled maturity dates of debt securities held at December 31, 2012.

   Maturity Maturity Maturity Maturity   
    Less Than1-56-10in Excess  
   1 YearYearsYearsof 10 YearsTotal
PPL               
Amortized cost $ 12 $ 79 $ 62 $ 78 $ 231
Fair value   12   83   68   85   248
                 
PPL Energy Supply               
Amortized cost $ 12 $ 79 $ 62 $ 75 $ 228
Fair value   12   83   68   82   245

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities.
           
   2012 2011 2010
PPL         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    5   163   
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5
           
PPL Energy Supply         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    3      
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5

(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.

Short-term Investments (PPL, LKE and LG&E)

 

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. In 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

 

NDT Funds (PPL and PPL Energy Supply)

 

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.

 

When the fair value of a security is less than amortized cost, PPL and PPL Energy Supply must make certain assertions to avoid recording an other-than-temporary impairment that requires a current period charge to earnings. The NRC requires that nuclear decommissioning trusts be managed by independent investment managers, with discretion to buy and sell securities in the trusts. As a result, PPL and PPL Energy Supply have been unable to demonstrate the ability to hold an impaired security until it recovers its value; therefore, unrealized losses on equity securities for all periods presented, represented other-than-temporary impairments that required a current period charge to earnings. PPL and PPL Energy Supply recorded impairments for certain securities invested in the NDT funds of $1 million, $6 million and $3 million for 2012, 2011 and 2010. These impairments are reflected on the Statements of Income in "Other-Than-Temporary Impairments."

LG And E And KU Energy LLC [Member]
  
Available-for-Sale Securities [Line Items]  
Available-for-Sale Securities

23. Available-for-Sale Securities

 

(PPL, PPL Energy Supply, LKE and LG&E)

 

Certain short-term investments, 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, 2012 December 31, 2011
          Gross Gross      Gross Gross  
       Amortized   Unrealized   Unrealized    Amortized  Unrealized  Unrealized   
       Cost Gains Losses Fair Value  Cost  Gains Losses Fair Value
PPL                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   20      1   19   25      1   24
 Total  $ 494 $ 239 $ 2 $ 731 $ 479 $ 187 $ 2 $ 664
                              
PPL Energy Supply                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   17      1   16   20      1   19
 Total $ 491 $ 239 $ 2 $ 728 $ 474 $ 187 $ 2 $ 659

There were no securities with credit losses at December 31, 2012 and 2011.

 

The following table shows the scheduled maturity dates of debt securities held at December 31, 2012.

   Maturity Maturity Maturity Maturity   
    Less Than1-56-10in Excess  
   1 YearYearsYearsof 10 YearsTotal
PPL               
Amortized cost $ 12 $ 79 $ 62 $ 78 $ 231
Fair value   12   83   68   85   248
                 
PPL Energy Supply               
Amortized cost $ 12 $ 79 $ 62 $ 75 $ 228
Fair value   12   83   68   82   245

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities.
           
   2012 2011 2010
PPL         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    5   163   
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5
           
PPL Energy Supply         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    3      
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5

(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.

Short-term Investments (PPL, LKE and LG&E)

 

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. In 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

 

NDT Funds (PPL and PPL Energy Supply)

 

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.

 

When the fair value of a security is less than amortized cost, PPL and PPL Energy Supply must make certain assertions to avoid recording an other-than-temporary impairment that requires a current period charge to earnings. The NRC requires that nuclear decommissioning trusts be managed by independent investment managers, with discretion to buy and sell securities in the trusts. As a result, PPL and PPL Energy Supply have been unable to demonstrate the ability to hold an impaired security until it recovers its value; therefore, unrealized losses on equity securities for all periods presented, represented other-than-temporary impairments that required a current period charge to earnings. PPL and PPL Energy Supply recorded impairments for certain securities invested in the NDT funds of $1 million, $6 million and $3 million for 2012, 2011 and 2010. These impairments are reflected on the Statements of Income in "Other-Than-Temporary Impairments."

Louisville Gas And Electric Co [Member]
  
Available-for-Sale Securities [Line Items]  
Available-for-Sale Securities

23. Available-for-Sale Securities

 

(PPL, PPL Energy Supply, LKE and LG&E)

 

Certain short-term investments, 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, 2012 December 31, 2011
          Gross Gross      Gross Gross  
       Amortized   Unrealized   Unrealized    Amortized  Unrealized  Unrealized   
       Cost Gains Losses Fair Value  Cost  Gains Losses Fair Value
PPL                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   20      1   19   25      1   24
 Total  $ 494 $ 239 $ 2 $ 731 $ 479 $ 187 $ 2 $ 664
                              
PPL Energy Supply                        
 NDT funds:                        
   Cash and cash equivalents $ 11       $ 11 $ 12       $ 12
   Equity securities:                         
    U.S. large-cap   222 $ 190      412   211 $ 146      357
    U.S. mid/small-cap   30   30      60   29   23      52
   Debt securities:                        
    U.S. Treasury   86   9      95   76   10      86
    U.S. government sponsored                        
     agency   8   1      9   9   1      10
    Municipality   78   5 $ 1   82   80   4 $ 1   83
    Investment-grade corporate   36   4      40   35   3      38
    Other   3         3   2         2
   Total NDT funds   474   239   1   712   454   187   1   640
 Auction rate securities   17      1   16   20      1   19
 Total $ 491 $ 239 $ 2 $ 728 $ 474 $ 187 $ 2 $ 659

There were no securities with credit losses at December 31, 2012 and 2011.

 

The following table shows the scheduled maturity dates of debt securities held at December 31, 2012.

   Maturity Maturity Maturity Maturity   
    Less Than1-56-10in Excess  
   1 YearYearsYearsof 10 YearsTotal
PPL               
Amortized cost $ 12 $ 79 $ 62 $ 78 $ 231
Fair value   12   83   68   85   248
                 
PPL Energy Supply               
Amortized cost $ 12 $ 79 $ 62 $ 75 $ 228
Fair value   12   83   68   82   245

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities.
           
   2012 2011 2010
PPL         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    5   163   
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5
           
PPL Energy Supply         
Proceeds from sales of NDT securities (a) $ 139 $ 156 $ 114
Other proceeds from sales    3      
Gross realized gains (b)   29   28   13
Gross realized losses (b)   21   16   5

(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.

Short-term Investments (PPL, LKE and LG&E)

 

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. In 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

 

NDT Funds (PPL and PPL Energy Supply)

 

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.

 

When the fair value of a security is less than amortized cost, PPL and PPL Energy Supply must make certain assertions to avoid recording an other-than-temporary impairment that requires a current period charge to earnings. The NRC requires that nuclear decommissioning trusts be managed by independent investment managers, with discretion to buy and sell securities in the trusts. As a result, PPL and PPL Energy Supply have been unable to demonstrate the ability to hold an impaired security until it recovers its value; therefore, unrealized losses on equity securities for all periods presented, represented other-than-temporary impairments that required a current period charge to earnings. PPL and PPL Energy Supply recorded impairments for certain securities invested in the NDT funds of $1 million, $6 million and $3 million for 2012, 2011 and 2010. These impairments are reflected on the Statements of Income in "Other-Than-Temporary Impairments."