Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities [Line Items]

Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts

At September 30, 2013, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows.

		Volume (a)
Commodity	Unit of Measure	2013 (b)	2014	2015	Thereafter
Power	MWh	(9,950,950)	(28,280,182)	(4,110,530)	10,991,752
Capacity	MW-Month	(5,114)	(14,418)	(309)	1,990
Gas	MMBtu	12,653,279	18,794,545	(3,852,725)	5,320,453
Coal	Tons		(30,000)
FTRs	MW-Month	5,056	8,724	1,465
Oil	Barrels	(15,335)	300,000	384,334	371,466

(a)Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option.

(b)Represents balance of the current year.

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets.

						September 30, 2013								December 31, 2012
						Derivatives designated as				Derivatives not designated				Derivatives designated as				Derivatives not designated
						hedging instruments				as hedging instruments (a)				hedging instruments				as hedging instruments (a)
						Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (b):
			Interest rate swaps (c)			$	83	$	16			$	4	$	14	$	22			$	5
			Cross-currency swaps				1		1								3
			Foreign currency
				contracts					5	$			24				2				23
			Commodity contracts								961		773		59			$	1,452		1,010
					Total current		84		22		961		801		73		27		1,452		1,038
Noncurrent:
	Price Risk Management
		Assets/Liabilities (b):
			Interest rate swaps (c)				3		1				37		1						53
			Cross-currency swaps				27								14		1
			Foreign currency
				contracts					6		1		32								19
			Commodity contracts								519		462		27				530		556
					Total noncurrent		30		7		520		531		42		1		530		628
Total derivatives						$	114	$	29	$	1,481	$	1,332	$	115	$	28	$	1,982	$	1,666

(a)$216 million and $300 million of net gains associated with derivatives that were no longer designated as hedging instruments are recorded in AOCI at September 30, 2013 and December 31, 2012.

(b)Represents the location on the Balance Sheets.

(c)Excludes accrued interest, if applicable.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for theperiods ended September 30, 2013.

Three Months

Nine Months

Gain (Loss)

Gain (Loss)

Recognized

Recognized

in Income

in Income

on Derivative

Gain (Loss)

on Derivative

Gain (Loss)

(Ineffective

Reclassified

(Ineffective

Location of

Reclassified

Portion and

from AOCI

Portion and

Derivative Gain

Gain (Loss)

from AOCI

Amount

into

Amount

(Loss) Recognized in

Recognized

into Income

Excluded from

Income

Excluded from

Derivative

OCI (Effective Portion)

in Income

(Effective

Effectiveness

(Effective

Effectiveness

Relationships

Three Months

Nine Months

on Derivative

Portion)

Testing)

Portion)

Testing)

Cash Flow Hedges:

Interest rate swaps

$

25

$

102

Interest expense

$

(5)

$

(14)

Cross-currency swaps

(36)

16

Interest expense

(1)

Other income

(expense) - net

(25)

45

Commodity contracts

Wholesale energy

marketing

58

198

$

1

Depreciation

1

2

Energy purchases

(11)

(41)

Total

$

(11)

$

118

$

17

$

190

$

1

Net Investment Hedges:

Foreign currency contracts

$

(22)

$

(5)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months		Nine Months
Foreign currency contracts	Other income (expense) - net	$	(117)	$	6
Interest rate swaps	Interest expense		(2)		(6)
Commodity contracts	Unregulated retail electric and gas		3		18
	Wholesale energy marketing		104		144
	Net energy trading margins (a)		14		8
	Fuel		4		2
	Energy purchases		(86)		(99)
	Total	$	(80)	$	73
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent	$	2	$	18
Derivatives Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months		Nine Months
Interest rate swaps	Regulatory liabilities - noncurrent	$	12	$	70

(a)Differs from the Statement of Income due to intra-month transactions that PPL defines as spot activity, which is not accounted for as a derivative.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI, or regulatory assets and regulatory liabilitiesfor theperiods ended September 30, 2012.

Derivatives in	Hedged Items in		Location of Gain	Gain (Loss) Recognized			Gain (Loss) Recognized
Fair Value Hedging	Fair Value Hedging		(Loss) Recognized in	in Income on Derivative			in Income on Related Item
Relationships	Relationships		Income on Derivative	Three Months		Nine Months	Three Months		Nine Months
Interest rate swaps	Fixed rate debt	Interest expense		$	(1)		$	1	$	3

									Three Months				Nine Months
											Gain (Loss)				Gain (Loss)
											Recognized				Recognized
											in Income				in Income
											on Derivative		Gain (Loss)		on Derivative
									Gain (Loss)		(Ineffective		Reclassified		(Ineffective
							Location of		Reclassified		Portion and		from AOCI		Portion and
			Derivative Gain				Gain (Loss)		from AOCI		Amount		into		Amount
			(Loss) Recognized in				Recognized		into Income		Excluded from		Income		Excluded from
Derivative			OCI (Effective Portion)					in Income	(Effective		Effectiveness		(Effective		Effectiveness
Relationships			Three Months		Nine Months		on Derivative		Portion)		Testing)		Portion)		Testing)
Cash Flow Hedges:
	Interest rate swaps		$	(6)	$	(28)	Interest expense		$	(4)			$	(13)
							Other income
								(expense) - net		1				1
	Cross-currency swaps			(49)		(3)	Interest expense							(1)
							Other income
								(expense) - net		(40)				(12)
	Commodity contracts					99	Wholesale energy
								marketing		174				673	$	(1)
							Depreciation			1				2
							Energy purchases			(20)	$	1		(105)		(2)
Total			$	(55)	$	68			$	112	$	1	$	545	$	(3)
Net Investment Hedges:
		Foreign currency contracts	$	(4)	$	(5)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months		Nine Months
Foreign currency contracts	Other income (expense) - net	$	(47)	$	(40)
Interest rate swaps	Interest expense		(2)		(4)
Commodity contracts	Unregulated retail electric and gas		(3)		20
	Wholesale energy marketing		(476)		900
	Net energy trading margins (a)		(10)		12
	Fuel		6
	Energy purchases		364		(717)
	Total	$	(168)	$	171
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent	$	1	$	(2)

(a)Differs from the Statement of Income due to intra-month transactions that PPL defines as spot activity, which is not accounted for as a derivative.

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

		Assets								Liabilities
				Eligible for Offset								Eligible for Offset
						Cash								Cash
				Derivative		Collateral						Derivative		Collateral
		Gross		Instruments		Received		Net		Gross		Instruments		Pledged		Net
September 30, 2013
PPL
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113
	Treasury Derivatives		115		47				68		126		47	$	22		57
Total		$	1,595	$	1,169	$	14	$	412	$	1,361	$	1,169	$	22	$	170
PPL Energy Supply
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113

LKE
	Treasury Derivatives	$	55	$	22	$	33
LG&E
	Treasury Derivatives	$	48	$	22	$	26
KU
	Treasury Derivatives	$	7			$	7

December 31, 2012
PPL
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144
	Treasury Derivatives		29		19				10		128		19		30		79
Total		$	2,097	$	1,432	$	111	$	554	$	1,694	$	1,432	$	39	$	223
PPL Energy Supply
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144

LKE
	Treasury Derivatives	$	14	$	14	$	58	$	30	$	28
LG&E
	Treasury Derivatives	$	7	$	7	$	58	$	30	$	28
KU
	Treasury Derivatives	$	7	$	7

Credit Risk-Related Contingent Features

At September 30, 2013, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows:

				PPL
		PPL		Energy Supply		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability
	position with credit risk-related contingent features	$	178	$	115	$	29	$	29
Aggregate fair value of collateral posted on these derivative instruments			39		17		22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		167		127		7		7

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

PPL Energy Supply LLC [Member]

Derivative Instruments And Hedging Activities [Line Items]

Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts

At September 30, 2013, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows.

		Volume (a)
Commodity	Unit of Measure	2013 (b)	2014	2015	Thereafter
Power	MWh	(9,950,950)	(28,280,182)	(4,110,530)	10,991,752
Capacity	MW-Month	(5,114)	(14,418)	(309)	1,990
Gas	MMBtu	12,653,279	18,794,545	(3,852,725)	5,320,453
Coal	Tons		(30,000)
FTRs	MW-Month	5,056	8,724	1,465
Oil	Barrels	(15,335)	300,000	384,334	371,466

(a)Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option.

(b)Represents balance of the current year.

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets.

					September 30, 2013				December 31, 2012
					Derivatives not designated				Derivatives designated as			Derivatives not designated
					as hedging instruments (a)				hedging instruments			as hedging instruments (a)
					Assets		Liabilities		Assets		Liabilities	Assets		Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (b):
			Commodity contracts		$	961	$	773	$	59		$	1,452	$	1,010
				Total current		961		773		59			1,452		1,010
Noncurrent:
	Price Risk Management
		Assets/Liabilities (b):
			Commodity contracts			519		462		27			530		556
				Total noncurrent		519		462		27			530		556
Total derivatives					$	1,480	$	1,235	$	86		$	1,982	$	1,566

(a)$216 million and $300 million of net gains associated with derivatives that were no longer designated as hedging instruments are recorded in AOCI at September 30, 2013 and December 31, 2012.

(b)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivative instruments recognized in income or OCI for the periods endedSeptember 30, 2013.

Three Months

Nine Months

Gain (Loss)

Gain (Loss)

Recognized

Recognized

in Income

in Income

on Derivative

on Derivative

Gain (Loss)

(Ineffective

Gain (Loss)

(Ineffective

Location of

Reclassified

Portion and

Reclassified

Portion and

Derivative Gain

Gains (Losses)

from AOCI

Amount

from AOCI

Amount

(Loss) Recognized in

Recognized

into Income

Excluded from

into Income

Excluded from

Derivative

OCI (Effective Portion)

in Income

(Effective

Effectiveness

(Effective

Effectiveness

Relationships

Three Months

Nine Months

on Derivative

Portion)

Testing)

Portion)

Testing)

Cash Flow Hedges:

Commodity contracts

Wholesale energy

marketing

$

58

$

198

$

1

Depreciation

1

2

Energy purchases

(11)

(41)

Total

$

48

$

159

$

1

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instrument	Income on Derivative	Three Months		Nine Months
Commodity contracts	Unregulated retail electric and gas	$	3	$	18
	Wholesale energy marketing		104		144
	Net energy trading margins (a)		14		8
	Fuel		4		2
	Energy purchases		(86)		(99)
	Total	$	39	$	73

(a)Differs from the Statementsof Income due to intra-month transactions that PPL Energy Supply defines as spot activity, which is not accounted for as a derivative.

The following tables present the pre-tax effect of derivative instruments recognized in income or OCI for theperiods ended September 30, 2012.

Three Months

Nine Months

Gain (Loss)

Gain (Loss)

Recognized

Recognized

in Income

in Income

on Derivative

on Derivative

Gain (Loss)

(Ineffective

Gain (Loss)

(Ineffective

Location of

Reclassified

Portion and

Reclassified

Portion and

Derivative Gain

Gains (Losses)

from AOCI

Amount

from AOCI

Amount

(Loss) Recognized in

Recognized

into Income

Excluded from

into Income

Excluded from

Derivative

OCI (Effective Portion)

in Income

(Effective

Effectiveness

(Effective

Effectiveness

Relationships

Three Months

Nine Months

on Derivative

Portion)

Testing)

Portion)

Testing)

Cash Flow Hedges:

Wholesale energy

Commodity contracts

$

99

marketing

$

174

$

673

$

(1)

Depreciation

1

Energy purchases

(20)

$

1

(105)

(2)

Total

$

99

$

154

$

1

$

569

$

(3)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months		Nine Months
Commodity contracts	Unregulated retail electric and gas	$	(3)	$	20
	Wholesale energy marketing		(476)		900
	Net energy trading margins (a)		(10)		12
	Fuel		6
	Energy purchases		364		(717)
	Total	$	(119)	$	215

(a)Differs from the Statements of Income due to intra-month transactions that PPL Energy Supply defines as spot activity, which is not accounted for as a derivative.

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

		Assets								Liabilities
				Eligible for Offset								Eligible for Offset
						Cash								Cash
				Derivative		Collateral						Derivative		Collateral
		Gross		Instruments		Received		Net		Gross		Instruments		Pledged		Net
September 30, 2013
PPL
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113
	Treasury Derivatives		115		47				68		126		47	$	22		57
Total		$	1,595	$	1,169	$	14	$	412	$	1,361	$	1,169	$	22	$	170
PPL Energy Supply
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113

LKE
	Treasury Derivatives	$	55	$	22	$	33
LG&E
	Treasury Derivatives	$	48	$	22	$	26
KU
	Treasury Derivatives	$	7			$	7

December 31, 2012
PPL
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144
	Treasury Derivatives		29		19				10		128		19		30		79
Total		$	2,097	$	1,432	$	111	$	554	$	1,694	$	1,432	$	39	$	223
PPL Energy Supply
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144

LKE
	Treasury Derivatives	$	14	$	14	$	58	$	30	$	28
LG&E
	Treasury Derivatives	$	7	$	7	$	58	$	30	$	28
KU
	Treasury Derivatives	$	7	$	7

Credit Risk-Related Contingent Features

At September 30, 2013, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows:

				PPL
		PPL		Energy Supply		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability
	position with credit risk-related contingent features	$	178	$	115	$	29	$	29
Aggregate fair value of collateral posted on these derivative instruments			39		17		22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		167		127		7		7

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

LG And E And KU Energy LLC [Member]

Derivative Instruments And Hedging Activities [Line Items]

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges.

				September 30, 2013			December 31, 2012
				Assets	Liabilities		Assets		Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	14	$	14

(a)Represents the location on the Balance Sheets.

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

					September 30, 2013			December 31, 2012
					Assets	Liabilities			Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps			$	4			$	5
				Total current			4				5
Noncurrent:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps				37				53
				Total noncurrent			37				53
Total derivatives						$	41			$	58

(a)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the periods ended September 30, 2013.

Derivative Instruments	Location of Gain (Loss)	Three Months		Nine Months
Interest rate swaps	Regulatory liabilities - noncurrent	$	12	$	70

The following tables present the pre-tax effect of derivatives not designated as hedging instruments recognized in incomeor regulatory assets for the periods ended September 30, 2013.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Nine Months
Interest rate swaps	Interest expense	$	(2)	$	(6)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent (a)	$	2	$	18

(a)Includes both realized and unrealized gains (losses).

The following tables present the pre-tax effect of derivatives not designated as hedging instruments recognized in income or regulatory assetsfor the periods ended September 30, 2012.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Nine Months
Interest rate swaps	Interest expense	$	(2)	$	(6)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent (a)	$	1	$	(2)

(a)Includes both realized and unrealized gains (losses).

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

		Assets								Liabilities
				Eligible for Offset								Eligible for Offset
						Cash								Cash
				Derivative		Collateral						Derivative		Collateral
		Gross		Instruments		Received		Net		Gross		Instruments		Pledged		Net
September 30, 2013
PPL
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113
	Treasury Derivatives		115		47				68		126		47	$	22		57
Total		$	1,595	$	1,169	$	14	$	412	$	1,361	$	1,169	$	22	$	170
PPL Energy Supply
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113

LKE
	Treasury Derivatives	$	55	$	22	$	33
LG&E
	Treasury Derivatives	$	48	$	22	$	26
KU
	Treasury Derivatives	$	7			$	7

December 31, 2012
PPL
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144
	Treasury Derivatives		29		19				10		128		19		30		79
Total		$	2,097	$	1,432	$	111	$	554	$	1,694	$	1,432	$	39	$	223
PPL Energy Supply
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144

LKE
	Treasury Derivatives	$	14	$	14	$	58	$	30	$	28
LG&E
	Treasury Derivatives	$	7	$	7	$	58	$	30	$	28
KU
	Treasury Derivatives	$	7	$	7

Credit Risk-Related Contingent Features

At September 30, 2013, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows:

				PPL
		PPL		Energy Supply		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability
	position with credit risk-related contingent features	$	178	$	115	$	29	$	29
Aggregate fair value of collateral posted on these derivative instruments			39		17		22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		167		127		7		7

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

Louisville Gas And Electric Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges.

				September 30, 2013			December 31, 2012
				Assets	Liabilities		Assets		Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	7	$	7

(a)Represents the location on the Balance Sheets.

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

					September 30, 2013			December 31, 2012
					Assets	Liabilities			Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps			$	4			$	5
				Total current			4				5
Noncurrent:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps				37				53
				Total noncurrent			37				53
Total derivatives						$	41			$	58

(a)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the periods ended September 30, 2013.

Derivative Instruments	Location of Gain (Loss)	Three Months		Nine Months
Interest rate swaps	Regulatory liabilities - noncurrent	$	6	$	35

The following tables present the pre-tax effect of derivatives not designated as hedging instruments recognized in incomeor regulatory assets for the periods ended September 30, 2013.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Nine Months
Interest rate swaps	Interest expense	$	(2)	$	(6)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent (a)	$	2	$	18

(a)Includes both realized and unrealized gains (losses).

The following tables present the pre-tax effect of derivatives not designated as hedging instruments recognized in income or regulatory assetsfor the periods ended September 30, 2012.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months		Nine Months
Interest rate swaps	Interest expense	$	(2)	$	(6)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Nine Months
Interest rate swaps	Regulatory assets - noncurrent (a)	$	1	$	(2)

(a)Includes both realized and unrealized gains (losses).

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

		Assets								Liabilities
				Eligible for Offset								Eligible for Offset
						Cash								Cash
				Derivative		Collateral						Derivative		Collateral
		Gross		Instruments		Received		Net		Gross		Instruments		Pledged		Net
September 30, 2013
PPL
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113
	Treasury Derivatives		115		47				68		126		47	$	22		57
Total		$	1,595	$	1,169	$	14	$	412	$	1,361	$	1,169	$	22	$	170
PPL Energy Supply
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113

LKE
	Treasury Derivatives	$	55	$	22	$	33
LG&E
	Treasury Derivatives	$	48	$	22	$	26
KU
	Treasury Derivatives	$	7			$	7

December 31, 2012
PPL
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144
	Treasury Derivatives		29		19				10		128		19		30		79
Total		$	2,097	$	1,432	$	111	$	554	$	1,694	$	1,432	$	39	$	223
PPL Energy Supply
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144

LKE
	Treasury Derivatives	$	14	$	14	$	58	$	30	$	28
LG&E
	Treasury Derivatives	$	7	$	7	$	58	$	30	$	28
KU
	Treasury Derivatives	$	7	$	7

Credit Risk-Related Contingent Features

At September 30, 2013, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows:

				PPL
		PPL		Energy Supply		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability
	position with credit risk-related contingent features	$	178	$	115	$	29	$	29
Aggregate fair value of collateral posted on these derivative instruments			39		17		22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		167		127		7		7

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

Kentucky Utilities Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Fair Value and Balance Sheet Location of Derivative Instruments

(KU)

The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges.

				September 30, 2013			December 31, 2012
				Assets	Liabilities		Assets		Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	7	$	7

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

(a)Represents the location on the Balance Sheets.

The following tables present the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the periods ended September 30, 2013.

Derivative Instruments	Location of Gain (Loss)	Three Months		Nine Months
Interest rate swaps	Regulatory liabilities - noncurrent	$	6	$	35

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

		Assets								Liabilities
				Eligible for Offset								Eligible for Offset
						Cash								Cash
				Derivative		Collateral						Derivative		Collateral
		Gross		Instruments		Received		Net		Gross		Instruments		Pledged		Net
September 30, 2013
PPL
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113
	Treasury Derivatives		115		47				68		126		47	$	22		57
Total		$	1,595	$	1,169	$	14	$	412	$	1,361	$	1,169	$	22	$	170
PPL Energy Supply
	Energy Commodities	$	1,480	$	1,122	$	14	$	344	$	1,235	$	1,122			$	113

LKE
	Treasury Derivatives	$	55	$	22	$	33
LG&E
	Treasury Derivatives	$	48	$	22	$	26
KU
	Treasury Derivatives	$	7			$	7

December 31, 2012
PPL
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144
	Treasury Derivatives		29		19				10		128		19		30		79
Total		$	2,097	$	1,432	$	111	$	554	$	1,694	$	1,432	$	39	$	223
PPL Energy Supply
	Energy Commodities	$	2,068	$	1,413	$	111	$	544	$	1,566	$	1,413	$	9	$	144

LKE
	Treasury Derivatives	$	14	$	14	$	58	$	30	$	28
LG&E
	Treasury Derivatives	$	7	$	7	$	58	$	30	$	28
KU
	Treasury Derivatives	$	7	$	7