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Financing Activities (Tables)
 12 Months Ended
Dec. 31, 2012
Financing Activities [Line Items]  
Credit Facilities in Place at Period End

The following credit facilities were in place at:

       December 31, 2012 December 31, 2011
                Letters of      Letters of
                Credit Issued       Credit Issued
                and       and
                Commercial       Commercial
       Expiration    Borrowed Paper Unused Borrowed Paper
        Date Capacity (a) Backup Capacity (a) Backup
PPL                    
 WPD Credit Facilities                    
  PPL WW Syndicated                    
   Credit Facility (b) (c) (f) Jan. 2013 £ 150 £ 106  n/a £ 44 £ 111  n/a
  WPD (South West)                     
   Syndicated Credit Facility (c) (f) Jan. 2017   245     n/a   245     n/a
  WPD (East Midlands)                     
   Syndicated Credit Facility (c) (d) (f) Apr. 2016   300         300    £ 70
  WPD (West Midlands)                    
   Syndicated Credit Facility (c) (d) (f) Apr. 2016   300         300      71
  Uncommitted Credit Facilities     84    £ 4   80      3
   Total WPD Credit Facilities (e)   £ 1,079 £ 106 £ 4 £ 969 £ 111 £ 144
                           
PPL Energy Supply                     
 Syndicated Credit Facility (f) (g) (h)  Nov. 2017 $ 3,000    $ 499 $ 2,501    $ 541
 Letter of Credit Facility (k) Mar. 2013   200  n/a   132   68  n/a   89
 Uncommitted Credit Facilities (h)      200  n/a   40   160  n/a  n/a
   Total PPL Energy Supply                    
    Credit Facilities    $ 3,400    $ 671 $ 2,729    $ 630
                           
PPL Electric                    
 Syndicated Credit Facility (f) (h) Oct. 2017 $ 300    $ 1 $ 299    $ 1
 Asset-backed Credit Facility (i) Sept 2013   100     n/a   100     n/a
   Total PPL Electric Credit Facilities    $ 400    $ 1 $ 399    $ 1
                           
LG&E                     
 Syndicated Credit Facility (f) (h)  Nov. 2017 $ 500      55 $ 445      
                           
KU                     
 Syndicated Credit Facility (f) (h)  Nov. 2017 $ 400    $ 70 $ 330      
 Letter of Credit Facility (f) (h) (j) Apr. 2014   198      198     n/a $ 198
   Total KU Credit Facilities    $ 598    $ 268 $ 330    $ 198

(a)       Amounts borrowed are recorded as "Short-term debt" on the Balance Sheets.

(b)       In December 2012, the PPL WW credit facility was subsequently replaced with a credit facility expiring in December 2016 and the capacity was increased to £210 million.

(c)       The facilities contain financial covenants that require the company to maintain an interest coverage ratio of not less than 3.0 times consolidated earnings before income taxes, depreciation and amortization and total net debt not in excess of 85% of its RAV, calculated in accordance with the credit facility.

(d)       Under these facilities, WPD (East Midlands) and WPD (West Midlands) each have the ability to request the lenders to issue up to £80 million of letters of credit in lieu of borrowing.

(e)       The total amounts borrowed at December 31, 2012 and 2011 were USD-denominated borrowings of $171 million and $178 million, which equated to £106 million and £111 million at the time of the borrowings. The interest rates at December 31, 2012 and 2011 were 0.8452% and 1.05%. At December 31, 2012, the unused capacity of WPD's credit facilities was approximately $1.6 billion.

(f)       Each company pays customary fees under its respective facility and borrowings generally bear interest at LIBOR-based rates plus an applicable margin.

(g)       In October 2010, PPL Energy Supply borrowed $3.2 billion under this facility in order to enable a subsidiary to make loans to certain affiliates to provide interim financing of amounts required by PPL to partially fund PPL's acquisition of LKE. Such borrowing bore interest at 2.26% and was refinanced primarily through the issuance of long-term debt by LKE, LG&E and KU and the use of internal funds. This borrowing and related payments were included in "Net increase (decrease) in short-term debt" on the Statement of Cash Flows.

 

PPL Energy Supply incurred an aggregate of $41 million of fees in 2010 in connection with establishing this facility. Such fees were initially deferred and amortized through December 2014. In connection with the reduction in the capacity from $4 billion to $3 billion in December 2010, PPL Energy Supply wrote off $10 million, $6 million after tax, of deferred fees, which was reflected in "Interest Expense" in the Statement of Income.

(h)       The facilities contain a financial covenant requiring debt to total capitalization not to exceed 65% for PPL Energy Supply and 70% for PPL Electric, LG&E and KU, as calculated in accordance with the facilities and other customary covenants. Additionally, as it relates to the syndicated credit facilities and subject to certain conditions, PPL Energy Supply may request that its facility's capacity be increased by up to $500 million and PPL Electric and KU each may request up to a $100 million increase in its facility's' capacity.

(i)       PPL Electric participates in an asset-backed commercial paper program through which PPL Electric obtains financing by selling and contributing its eligible accounts receivable and unbilled revenue to a special purpose, wholly owned subsidiary on an ongoing basis. The subsidiary has pledged these assets to secure loans from a commercial paper conduit sponsored by a financial institution.

 

At December 31, 2012 and December 31, 2011, $238 million and $251 million of accounts receivable and $106 million and $98 million of unbilled revenue were pledged by the subsidiary under the credit agreement related to PPL Electric's and the subsidiary's participation in the asset-backed commercial paper program. Based on the accounts receivable and unbilled revenue pledged at December 31, 2012, the amount available for borrowing under the facility was $100 million. PPL Electric's sale to its subsidiary of the accounts receivable and unbilled revenue is an absolute sale of assets, and PPL Electric does not retain an interest in these assets. However, for financial reporting purposes, the subsidiary's financial results are consolidated in PPL Electric's financial statements. PPL Electric performs certain record-keeping and cash collection functions with respect to the assets in return for a servicing fee from the subsidiary.

(j)       KU's letter of credit facility agreement allows for certain payments under the letter of credit facility to be converted to loans rather than requiring immediate payment.

(k)       In February 2013, PPL Energy Supply extended the expiration date of the agreement to March 2014 and, effective April 2013, the capacity will be reduced to $150 million.

 
Long-term Debt

Long-term Debt (PPL, PPL Energy Supply, PPL Electric, LKE, LG&E and KU)

    Weighted-Average   December 31,
    Rate Maturities 2012 2011
PPL         
U.S.         
 Senior Unsecured Notes (a)4.66% 2013 - 2038 $ 4,506 $ 3,805
 Senior Secured Notes/First Mortgage Bonds (b) (c) (d) (e)4.19% 2013 - 2041   5,587   5,111
 Junior Subordinated Notes4.89% 2018 - 2067   2,608   2,608
 Other6.95% 2014 - 2020   15   15
   Total U.S. Long-term Debt      12,716   11,539
             
U.K.         
 Senior Unsecured Notes (f)5.71% 2016 - 2040   6,111   5,862
 Index-linked Senior Unsecured Notes (g)1.85% 2043 - 2056   608   581
   Total U.K. Long-term Debt (h)      6,719   6,443
   Total Long-term Debt Before Adjustments      19,435   17,982
             
 Fair market value adjustments      78   65
 Unamortized premium and (discount), net      (37)   (54)
   Total Long-term Debt      19,476   17,993
 Less current portion of Long-term Debt      751   
   Total Long-term Debt, noncurrent    $ 18,725 $ 17,993
             
PPL Energy Supply         
 Senior Unsecured Notes (a)5.50% 2013 - 2038 $ 2,581 $ 2,581
 Senior Secured Notes (b)8.31% 2013 - 2025   663   437
 Other6.00% 2020   5   5
   Total Long-term Debt Before Adjustments      3,249   3,023
             
 Fair market value adjustments      22   
 Unamortized premium and (discount), net      1   1
   Total Long-term Debt      3,272   3,024
 Less current portion of Long-term Debt      751   
   Total Long-term Debt, noncurrent    $ 2,521 $ 3,024
             
PPL Electric         
 Senior Secured Notes/First Mortgage Bonds (c) (d)4.60% 2015 - 2041 $ 1,964 $ 1,714
 Other7.38% 2014   10   10
   Total Long-term Debt Before Adjustments      1,974   1,724
             
 Unamortized discount       (7)   (6)
   Total Long-term Debt    $ 1,967 $ 1,718
             
LKE         
 Senior Unsecured Notes3.31% 2015 - 2021 $ 1,125 $ 1,125
 Senior Secured Notes/First Mortgage Bonds (c) (e)3.00% 2015 - 2040   2,960   2,960
   Total Long-term Debt Before Adjustments      4,085   4,085
             
 Fair market value adjustments       7   7
 Unamortized discount       (17)   (19)
   Total Long-term Debt    $ 4,075 $ 4,073
             
LG&E         
 Senior Secured Notes/First Mortgage Bonds (c) (e)2.49% 2015 - 2040 $ 1,109 $ 1,109
   Total Long-term Debt Before Adjustments      1,109   1,109
             
 Fair market value adjustments      6  6
 Unamortized discount       (3)   (3)
   Total Long-term Debt    $ 1,112 $ 1,112
             
KU         
 Senior Secured Notes/First Mortgage Bonds (c) (e)3.30% 2015 - 2040 $ 1,851 $ 1,851
   Total Long-term Debt Before Adjustments      1,851   1,851
             
 Fair market value adjustments      1  1
 Unamortized discount       (10)   (10)
   Total Long-term Debt    $ 1,842 $ 1,842

(a)       Includes $300 million of 5.70% REset Put Securities due 2035 (REPS). The REPS bear interest at a rate of 5.70% per annum to, but excluding, October 15, 2015 (Remarketing Date). The REPS are required to be put by existing holders on the Remarketing Date either for (a) purchase and remarketing by a designated remarketing dealer or (b) repurchase by PPL Energy Supply. If the remarketing dealer elects to purchase the REPS for remarketing, it will purchase the REPS at 100% of the principal amount, and the REPS will bear interest on and after the Remarketing Date at a new fixed rate per annum determined in the remarketing. PPL Energy Supply has the right to terminate the remarketing process. If the remarketing is terminated at the option of PPL Energy Supply or under certain other circumstances, including the occurrence of an event of default by PPL Energy Supply under the related indenture or a failed remarketing for certain specified reasons, PPL Energy Supply will be required to pay the remarketing dealer a settlement amount as calculated in accordance with the related remarketing agreement.

(b)       Includes lease financing consolidated through a VIE. See Note 22 for additional information.

(c)       Includes PPL Electric's senior secured and first mortgage bonds that are secured by the lien of PPL Electric's 2001 Mortgage Indenture, which covers substantially all electric distribution plant and certain transmission plant owned by PPL Electric. The carrying value of PPL Electric's property, plant and equipment was approximately $4.3 billion and $3.9 billion at December 31, 2012 and 2011.

 

LG&E's first mortgage bonds are secured by the lien of the LG&E 2010 Mortgage Indenture, which creates a lien, subject to certain exceptions and exclusions, on substantially all of LG&E's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity and the storage and distribution of natural gas. The aggregate carrying value of the property subject to the lien was $2.7 billion and $2.6 billion at December 31, 2012 and December 31, 2011.

 

KU's first mortgage bonds are secured by the lien of the KU 2010 Mortgage Indenture, which creates a lien, subject to certain exceptions and exclusions, on substantially all of KU's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity. The aggregate carrying value of the property subject to the lien was $4.4 billion and $4.1 billion at December 31, 2012 and December 31, 2011.

(d)       Includes PPL Electric's series of senior secured bonds that secure its obligations to make payments with respect to each series of Pollution Control Bonds that were issued by the LCIDA and the PEDFA on behalf of PPL Electric. These senior secured bonds were issued in the same principal amount, contain payment and redemption provisions that correspond to and bear the same interest rate as such Pollution Control Bonds. These senior secured bonds were issued under PPL Electric's 2001 Mortgage Indenture and are secured as noted in (c) above. This amount includes $224 million that may be redeemed at par beginning in 2015 and $90 million that may be redeemed, in whole or in part, at par beginning in October 2020 and are subject to mandatory redemption upon determination that the interest rate on the bonds would be included in the holders' gross income for federal tax purposes.

(e)       Includes LG&E's and KU's series of first mortgage bonds that were issued to the respective trustees of tax-exempt revenue bonds to secure its respective obligations to make payments with respect to each series of bonds. The first mortgage bonds were issued in the same principal amount, contain payment and redemption provisions that correspond to and bear the same interest rate as such tax-exempt revenue bonds. These first mortgage bonds were issued under the LG&E 2010 Mortgage Indenture and the KU 2010 Mortgage Indenture and are secured as noted in (c) above. The related tax-exempt revenue bonds were issued by various governmental entities, principally counties in Kentucky, on behalf of LG&E and KU. The related revenue bond documents allow LG&E and KU to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, term rate of at least one year or, in some cases, an auction rate or a LIBOR index rate.

 

At December 31, 2012, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a term rate mode totaled $321 million for LKE, comprised of $294 million and $27 million for LG&E and KU. At December 31, 2012, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a variable rate mode totaled $604 million for LKE, comprised of $280 million and $324 million for LG&E and KU.

Several series of the tax-exempt revenue bonds are insured by monoline bond insurers whose ratings were reduced due to exposures relating to insurance of sub-prime mortgages. Of the bonds outstanding, $231 million are in the form of insured auction rate securities, wherein interest rates are reset either weekly or every 35 days via an auction process. Beginning in late 2007, the interest rates on these insured bonds began to increase due to investor concerns about the creditworthiness of the bond insurers. During 2008, interest rates increased, and LG&E and KU experienced failed auctions when there were insufficient bids for the bonds. When a failed auction occurs, the interest rate is set pursuant to a formula stipulated in the indenture. As noted above, the instruments governing these auction rate bonds permit LG&E and KU to convert the bonds to other interest rate modes.

 

Certain variable rate tax-exempt revenue bonds totaling $348 million at December 31, 2012, are subject to tender for purchase by LG&E and KU at the option of the holder and to mandatory tender for purchase by LG&E and KU upon the occurrence of certain events.

(f)       Includes £225 million ($361 million at December 31, 2012) of notes that may be redeemed, in total but not in part, on December 21, 2026, at the greater of the principal value or a value determined by reference to the gross redemption yield on a nominated U.K. Government bond.

(g)       The principal amount of the notes issued by WPD (South West) and WPD (East Midlands) are adjusted based on changes in a specified index, as detailed in the terms of the related indentures. The adjustment to the principal amounts from 2011 to 2012 was an increase of approximately £9 million ($14 million) resulting from inflation. In addition, this amount includes £225 million ($361 million at December 31, 2012) of notes issued by WPD (South West) that may be redeemed, in total by series, on December 1, 2026, at the greater of the adjusted principal value and a make-whole value determined by reference to the gross real yield on a nominated U.K. government bond.

(h)       Includes £3.3 billion ($5.3 billion at December 31, 2012) of notes that may be put by the holders back to the issuer for redemption if the long-term credit ratings assigned to the notes are withdrawn by any of the rating agencies (Moody's, S&P or Fitch) or reduced to a non-investment grade rating of Ba1 or BB+ in connection with a restructuring event which includes the loss of, or a material adverse change to, the distribution licenses under which the issuer operates.

Long-term Debt Maturities

The aggregate maturities of long-term debt for the periods 2013 through 2017 and thereafter are as follows.

     PPL            
     Energy  PPL         
  PPL Supply Electric LKE LG&E KU
                   
2013 $ 751 $ 751            
2014   328   318 $ 10         
2015   1,317   317   100 $ 900 $ 250 $ 250
2016   828   368            
2017   118   18            
Thereafter   16,093   1,477   1,864   3,185   859   1,601
Total $ 19,435 $ 3,249 $ 1,974 $ 4,085 $ 1,109 $ 1,851
PPL Energy Supply LLC [Member]
  
Financing Activities [Line Items]  
Dividends/distributions paid to and capital contributions received from parent
(PPL Energy Supply, PPL Electric, LKE, LG&E and KU)
                    
The following distributions and capital contributions occurred in 2012:
                  
    PPL Energy PPL          
    Supply Electric  LKE LG&E KU
                    
Dividends/distributions paid to parent/member $ 787  $ 95 $ 155  $ 75 $ 100
Capital contributions received from parent/member   563    150          
PPL Electric Utilities Corp [Member]
  
Financing Activities [Line Items]  
Dividends/distributions paid to and capital contributions received from parent
(PPL Energy Supply, PPL Electric, LKE, LG&E and KU)
                    
The following distributions and capital contributions occurred in 2012:
                  
    PPL Energy PPL          
    Supply Electric  LKE LG&E KU
                    
Dividends/distributions paid to parent/member $ 787  $ 95 $ 155  $ 75 $ 100
Capital contributions received from parent/member   563    150          
LG And E And KU Energy LLC [Member]
  
Financing Activities [Line Items]  
Dividends/distributions paid to and capital contributions received from parent
(PPL Energy Supply, PPL Electric, LKE, LG&E and KU)
                    
The following distributions and capital contributions occurred in 2012:
                  
    PPL Energy PPL          
    Supply Electric  LKE LG&E KU
                    
Dividends/distributions paid to parent/member $ 787  $ 95 $ 155  $ 75 $ 100
Capital contributions received from parent/member   563    150          
Louisville Gas And Electric Co [Member]
  
Financing Activities [Line Items]  
Dividends/distributions paid to and capital contributions received from parent
(PPL Energy Supply, PPL Electric, LKE, LG&E and KU)
                    
The following distributions and capital contributions occurred in 2012:
                  
    PPL Energy PPL          
    Supply Electric  LKE LG&E KU
                    
Dividends/distributions paid to parent/member $ 787  $ 95 $ 155  $ 75 $ 100
Capital contributions received from parent/member   563    150          
Kentucky Utilities Co [Member]
  
Financing Activities [Line Items]  
Dividends/distributions paid to and capital contributions received from parent
(PPL Energy Supply, PPL Electric, LKE, LG&E and KU)
                    
The following distributions and capital contributions occurred in 2012:
                  
    PPL Energy PPL          
    Supply Electric  LKE LG&E KU
                    
Dividends/distributions paid to parent/member $ 787  $ 95 $ 155  $ 75 $ 100
Capital contributions received from parent/member   563    150