Fair Value Measurements and Credit Concentration (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements and Credit Concentration [Line Items]

Fair Value of Assets and Liabilities Measured on Recurring Basis

The assets and liabilities measured at fair value were:

				September 30, 2014								December 31, 2013
				Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
	Cash and cash equivalents			$	1,188	$	1,188					$	1,102	$	1,102
	Restricted cash and cash equivalents (a)				324		324						134		134
	Price risk management assets:
		Energy commodities			1,041		4	$	945	$	92		1,188		3	$	1,123	$	62
		Interest rate swaps			6				6				91				91
		Foreign currency contracts			51				51
	Total price risk management assets				1,098		4		1,002		92		1,279		3		1,214		62
	NDT funds:
		Cash and cash equivalents			17		17						14		14
		Equity securities
			U.S. large-cap		582		432		150				547		409		138
			U.S. mid/small-cap		83		35		48				81		33		48
		Debt securities
			U.S. Treasury		98		98						95		95
			U.S. government sponsored agency		6				6				6				6
			Municipality		77				77				77				77
			Investment-grade corporate		40				40				38				38
			Other		6				6				5				5
		Receivables (payables), net			2				2				1		(1)		2
	Total NDT funds				911		582		329				864		550		314
	Auction rate securities (b)				13						13		19						19
Total assets				$	3,534	$	2,098	$	1,331	$	105	$	3,398	$	1,789	$	1,528	$	81
Liabilities
	Price risk management liabilities:
		Energy commodities		$	1,137	$	2	$	1,063	$	72	$	1,070	$	4	$	1,028	$	38
		Interest rate swaps			64				64				36				36
		Foreign currency contracts			26				26				106				106
		Cross-currency swaps			47				47				32				32
	Total price risk management liabilities			$	1,274	$	2	$	1,200	$	72	$	1,244	$	4	$	1,202	$	38
PPL Energy Supply
Assets
	Cash and cash equivalents			$	194	$	194					$	239	$	239
	Restricted cash and cash equivalents (a)				284		284						85		85
	Price risk management assets:
		Energy commodities			1,041		4	$	945	$	92		1,188		3	$	1,123	$	62
	Total price risk management assets				1,041		4		945		92		1,188		3		1,123		62
	NDT funds:
		Cash and cash equivalents			17		17						14		14
		Equity securities
			U.S. large-cap		582		432		150				547		409		138
			U.S. mid/small-cap		83		35		48				81		33		48
		Debt securities
			U.S. Treasury		98		98						95		95
			U.S. government sponsored agency		6				6				6				6
			Municipality		77				77				77				77
			Investment-grade corporate		40				40				38				38
			Other		6				6				5				5
		Receivables (payables), net			2				2				1		(1)		2
	Total NDT funds				911		582		329				864		550		314
	Auction rate securities (b)				10						10		16						16
Total assets				$	2,440	$	1,064	$	1,274	$	102	$	2,392	$	877	$	1,437	$	78
Liabilities
	Price risk management liabilities:
		Energy commodities		$	1,137	$	2	$	1,063	$	72	$	1,070	$	4	$	1,028	$	38
	Total price risk management liabilities			$	1,137	$	2	$	1,063	$	72	$	1,070	$	4	$	1,028	$	38
PPL Electric
Assets
	Cash and cash equivalents			$	111	$	111					$	25	$	25
	Restricted cash and cash equivalents (c)				3		3						12		12
Total assets				$	114	$	114					$	37	$	37

LKE
Assets
	Cash and cash equivalents			$	47	$	47			$	35	$	35
	Price risk management assets:
			Interest rate swaps		6			$	6
	Cash collateral posted to counterparties (d)				20		20				22		22
Total assets				$	73	$	67	$	6	$	57	$	57
Liabilities
	Price risk management liabilities:
		Interest rate swaps		$	46			$	46	$	36			$	36
Total price risk management liabilities				$	46			$	46	$	36			$	36
LG&E
Assets
	Cash and cash equivalents			$	25	$	25			$	8	$	8
	Price risk management assets:
			Interest rate swaps		3			$	3
	Cash collateral posted to counterparties (d)				20		20				22		22
Total assets				$	48	$	45	$	3	$	30	$	30
Liabilities
	Price risk management liabilities:
		Interest rate swaps		$	44			$	44	$	36			$	36
Total price risk management liabilities				$	44			$	44	$	36			$	36
KU
Assets
	Cash and cash equivalents			$	22	$	22			$	21	$	21
	Price risk management assets:
			Interest rate swaps		3			$	3
Total assets				$	25	$	22	$	3	$	21	$	21
Liabilities
	Price risk management liabilities:
		Interest rate swaps		$	2			$	2
Total price risk management liabilities				$	2			$	2

(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" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(d)Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset.

Reconciliation of Net Assets and Liabilities Classified as Level 3

A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2014 is as follows:
					Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
					Three Months							Nine Months
					Energy		Auction		Cross-			Energy		Auction		Cross-
					Commodities,		Rate		Currency			Commodities,		Rate		Currency
					net		Securities		Swaps	Total		net		Securities		Swaps		Total
PPL
Balance at beginning of
	period				$	74	$	16		$	90	$	24	$	19			$	43
		Total realized/unrealized
			gains (losses)
				Included in earnings		(84)					(84)		(147)						(147)
				Included in OCI (a)												$	(1)		(1)
		Purchases											(6)						(6)
		Sales				67		(3)			64		67		(6)				61
		Settlements				(37)					(37)		82						82
		Transfers out of Level 3															1		1
Balance at end of period					$	20	$	13		$	33	$	20	$	13	$		$	33
PPL Energy Supply
Balance at beginning of
	period				$	74	$	13		$	87	$	24	$	16			$	40
		Total realized/unrealized
			gains (losses)
				Included in earnings		(84)					(84)		(147)						(147)
		Purchases											(6)						(6)
		Sales				67		(3)			64		67		(6)				61
		Settlements				(37)					(37)		82						82
Balance at end of period					$	20	$	10		$	30	$	20	$	10			$	30

(a)"Energy Commodities, net" 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.

A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2013 is as follows:
					Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
					Three Months								Nine Months
					Energy		Auction		Cross-				Energy		Auction		Cross-
					Commodities,		Rate		Currency				Commodities,		Rate		Currency
					net		Securities		Swaps		Total		net		Securities		Swaps		Total
PPL
Balance at beginning of
	period				$	40	$	19	$	3	$	62	$	22	$	16	$	1	$	39
		Total realized/unrealized
			gains (losses)
				Included in earnings		18						18		23						23
				Included in OCI (a)						(2)		(2)						1		1
		Sales												(2)						(2)
		Settlements				(2)						(2)		1						1
		Transfers into Level 3				(7)						(7)		1		3		3		7
		Transfers out of Level 3				(2)				(1)		(3)		2				(5)		(3)
Balance at end of period					$	47	$	19	$		$	66	$	47	$	19	$		$	66
PPL Energy Supply
Balance at beginning of
	period				$	40	$	16			$	56	$	22	$	13			$	35
		Total realized/unrealized
			gains (losses)
				Included in earnings		18						18		23						23
		Sales												(2)						(2)
		Settlements				(2)						(2)		1						1
		Transfers into Level 3				(7)						(7)		1		3				4
		Transfers out of Level 3				(2)						(2)		2						2
Balance at end of period					$	47	$	16			$	63	$	47	$	16			$	63

(a)"Energy Commodities, net" 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.

Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities Classified as Level 3

The significant unobservable inputs used in and quantitative information about the fair value measurement of assets and liabilities classified as Level 3 are as follows:

			September 30, 2014
			Fair Value, net			Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average) (a)
PPL
Energy commodities
	Natural gas contracts (b)	$	9	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (36%)
	Power sales contracts (c)		(31)	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (68%)
	FTR purchase contracts (d)		4	Discounted cash flow	Historical settled prices used to model forward prices	100% (100%)
	Heat rate options (e)		38	Discounted cash flow	Proprietary model used to calculate forward prices	24% - 52% (45%)
Auction rate securities (f)			13	Discounted cash flow	Modeled from SIFMA Index	53% - 74% (64%)
PPL Energy Supply
Energy commodities
	Natural gas contracts (b)	$	9	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (36%)
	Power sales contracts (c)		(31)	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (68%)
	FTR purchase contracts (d)		4	Discounted cash flow	Historical settled prices used to model forward prices	100% (100%)
	Heat rate options (e)		38	Discounted cash flow	Proprietary model used to calculate forward prices	24% - 52% (45%)
Auction rate securities (f)			10	Discounted cash flow	Modeled from SIFMA Index	57% - 74% (66%)

			December 31, 2013
			Fair Value, net			Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average) (a)
PPL
Energy commodities
	Natural gas contracts (b)	$	36	Discounted cash flow	Proprietary model used to calculate forward prices	10% - 100% (86%)
	Power sales contracts (c)		(12)	Discounted cash flow	Proprietary model used to calculate forward prices	100% - 100% (100%)
Auction rate securities (f)			19	Discounted cash flow	Modeled from SIFMA Index	10% - 80% (63%)
PPL Energy Supply
Energy commodities
	Natural gas contracts (b)	$	36	Discounted cash flow	Proprietary model used to calculate forward prices	10% - 100% (86%)
	Power sales contracts (c)		(12)	Discounted cash flow	Proprietary model used to calculate forward prices	100% - 100% (100%)
Auction rate securities (f)			16	Discounted cash flow	Modeled from SIFMA Index	10% - 80% (63%)

(a)For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs.

(b)As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases.

(c)As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases.

(d)As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases).

(e)The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of the contracts increases/(decreases).

(f)The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases).

The significant unobservable inputs used in and the quantitative information about the nonrecurring fair value measurement of assets and liabilities classified as Level 3 are as follows:
			Fair Value, net		Significant	Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average)(a)
PPL and PPL Energy Supply
Kerr Dam Project
	March 31, 2014	$	29	Discounted cash flow	Proprietary model used to calculate plant value	38% (38%)

(a)The range and weighted average represent the percentage of fair value derived from the unobservable inputs.

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 periods ended September 30 are reported in the Statements of Income as follows:

		Three Months
		Energy Commodities, net
		Unregulated				Unregulated							Energy
		Wholesale Energy				Retail Energy				Fuel			Purchases
		2014		2013		2014		2013		2014	2013		2014		2013
PPL and PPL Energy Supply
Total gains (losses) included in earnings		$	(102)	$	3	$	16	$	3		$	3	$	2	$	9
Change in unrealized gains (losses) relating
	to positions still held at the reporting date		6		17		13		3					1

		Nine Months
		Energy Commodities, net
		Unregulated				Unregulated							Energy
		Wholesale Energy				Retail Energy				Fuel			Purchases
		2014		2013		2014		2013		2014	2013		2014		2013
PPL and PPL Energy Supply
Total gains (losses) included in earnings		$	(133)	$	(7)	$	(35)	$	18		$	3	$	21	$	9
Change in unrealized gains (losses) relating
	to positions still held at the reporting date		5		7		(12)		18					(3)		5

Fair Value of Assets and Liabilities Measured on Nonrecurring Basis

The following nonrecurring fair value measurement occurred during the nine months ended September 30, 2014, resulting in an asset impairment:

	Carrying		Fair Value Measurements Using
	Amount (a)		Level 3		Loss (b)
PPL and PPL Energy Supply
Kerr Dam Project	$	47	$	29	$	18

(a)Represents carrying value before fair value measurement.

(b)The loss on the Kerr Dam Project was recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on PPL's and PPL Energy Supply's Statement of Income.

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

The carrying amounts of contract adjustment payments related to the 2011 Purchase Contract component of the 2011 Equity Units and long-term debt on the Balance Sheets and their estimated fair values are set forth below.

		September 30, 2014				December 31, 2013
		Carrying				Carrying
		Amount		Fair Value		Amount		Fair Value
Contract adjustment payments (a)
	PPL					$	21	$	22
Long-term debt
	PPL	$	20,757	$	22,854		20,907		22,177
	PPL Energy Supply		2,218		2,267		2,525		2,658
	PPL Electric		2,602		2,919		2,315		2,483

LKE	4,566	4,920	4,565	4,672
LG&E	1,353	1,443	1,353	1,372
KU	2,091	2,287	2,091	2,155

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

PPL Energy Supply LLC [Member]

Fair Value Measurements and Credit Concentration [Line Items]

Reconciliation of Net Assets and Liabilities Classified as Level 3

A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2014 is as follows:
					Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
					Three Months							Nine Months
					Energy		Auction		Cross-			Energy		Auction		Cross-
					Commodities,		Rate		Currency			Commodities,		Rate		Currency
					net		Securities		Swaps	Total		net		Securities		Swaps		Total
PPL
Balance at beginning of
	period				$	74	$	16		$	90	$	24	$	19			$	43
		Total realized/unrealized
			gains (losses)
				Included in earnings		(84)					(84)		(147)						(147)
				Included in OCI (a)												$	(1)		(1)
		Purchases											(6)						(6)
		Sales				67		(3)			64		67		(6)				61
		Settlements				(37)					(37)		82						82
		Transfers out of Level 3															1		1
Balance at end of period					$	20	$	13		$	33	$	20	$	13	$		$	33
PPL Energy Supply
Balance at beginning of
	period				$	74	$	13		$	87	$	24	$	16			$	40
		Total realized/unrealized
			gains (losses)
				Included in earnings		(84)					(84)		(147)						(147)
		Purchases											(6)						(6)
		Sales				67		(3)			64		67		(6)				61
		Settlements				(37)					(37)		82						82
Balance at end of period					$	20	$	10		$	30	$	20	$	10			$	30

(a)"Energy Commodities, net" 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.

A reconciliation of net assets and liabilities classified as Level 3 for the periods ended September 30, 2013 is as follows:
					Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
					Three Months								Nine Months
					Energy		Auction		Cross-				Energy		Auction		Cross-
					Commodities,		Rate		Currency				Commodities,		Rate		Currency
					net		Securities		Swaps		Total		net		Securities		Swaps		Total
PPL
Balance at beginning of
	period				$	40	$	19	$	3	$	62	$	22	$	16	$	1	$	39
		Total realized/unrealized
			gains (losses)
				Included in earnings		18						18		23						23
				Included in OCI (a)						(2)		(2)						1		1
		Sales												(2)						(2)
		Settlements				(2)						(2)		1						1
		Transfers into Level 3				(7)						(7)		1		3		3		7
		Transfers out of Level 3				(2)				(1)		(3)		2				(5)		(3)
Balance at end of period					$	47	$	19	$		$	66	$	47	$	19	$		$	66
PPL Energy Supply
Balance at beginning of
	period				$	40	$	16			$	56	$	22	$	13			$	35
		Total realized/unrealized
			gains (losses)
				Included in earnings		18						18		23						23
		Sales												(2)						(2)
		Settlements				(2)						(2)		1						1
		Transfers into Level 3				(7)						(7)		1		3				4
		Transfers out of Level 3				(2)						(2)		2						2
Balance at end of period					$	47	$	16			$	63	$	47	$	16			$	63

(a)"Energy Commodities, net" 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.

Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities Classified as Level 3

The significant unobservable inputs used in and quantitative information about the fair value measurement of assets and liabilities classified as Level 3 are as follows:

			September 30, 2014
			Fair Value, net			Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average) (a)
PPL
Energy commodities
	Natural gas contracts (b)	$	9	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (36%)
	Power sales contracts (c)		(31)	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (68%)
	FTR purchase contracts (d)		4	Discounted cash flow	Historical settled prices used to model forward prices	100% (100%)
	Heat rate options (e)		38	Discounted cash flow	Proprietary model used to calculate forward prices	24% - 52% (45%)
Auction rate securities (f)			13	Discounted cash flow	Modeled from SIFMA Index	53% - 74% (64%)
PPL Energy Supply
Energy commodities
	Natural gas contracts (b)	$	9	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (36%)
	Power sales contracts (c)		(31)	Discounted cash flow	Proprietary model used to calculate forward prices	17% - 100% (68%)
	FTR purchase contracts (d)		4	Discounted cash flow	Historical settled prices used to model forward prices	100% (100%)
	Heat rate options (e)		38	Discounted cash flow	Proprietary model used to calculate forward prices	24% - 52% (45%)
Auction rate securities (f)			10	Discounted cash flow	Modeled from SIFMA Index	57% - 74% (66%)

			December 31, 2013
			Fair Value, net			Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average) (a)
PPL
Energy commodities
	Natural gas contracts (b)	$	36	Discounted cash flow	Proprietary model used to calculate forward prices	10% - 100% (86%)
	Power sales contracts (c)		(12)	Discounted cash flow	Proprietary model used to calculate forward prices	100% - 100% (100%)
Auction rate securities (f)			19	Discounted cash flow	Modeled from SIFMA Index	10% - 80% (63%)
PPL Energy Supply
Energy commodities
	Natural gas contracts (b)	$	36	Discounted cash flow	Proprietary model used to calculate forward prices	10% - 100% (86%)
	Power sales contracts (c)		(12)	Discounted cash flow	Proprietary model used to calculate forward prices	100% - 100% (100%)
Auction rate securities (f)			16	Discounted cash flow	Modeled from SIFMA Index	10% - 80% (63%)

(a)For energy commodities and auction rate securities, the range and weighted average represent the percentage of fair value derived from the unobservable inputs.

(b)As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases.

(c)As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases.

(d)As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases).

(e)The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of the contracts increases/(decreases).

(f)The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases).

The significant unobservable inputs used in and the quantitative information about the nonrecurring fair value measurement of assets and liabilities classified as Level 3 are as follows:
			Fair Value, net		Significant	Range
			Asset	Valuation	Unobservable	(Weighted
			(Liability)	Technique	Input(s)	Average)(a)
PPL and PPL Energy Supply
Kerr Dam Project
	March 31, 2014	$	29	Discounted cash flow	Proprietary model used to calculate plant value	38% (38%)

(a)The range and weighted average represent the percentage of fair value derived from the unobservable inputs.

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 periods ended September 30 are reported in the Statements of Income as follows:

		Three Months
		Energy Commodities, net
		Unregulated				Unregulated							Energy
		Wholesale Energy				Retail Energy				Fuel			Purchases
		2014		2013		2014		2013		2014	2013		2014		2013
PPL and PPL Energy Supply
Total gains (losses) included in earnings		$	(102)	$	3	$	16	$	3		$	3	$	2	$	9
Change in unrealized gains (losses) relating
	to positions still held at the reporting date		6		17		13		3					1

		Nine Months
		Energy Commodities, net
		Unregulated				Unregulated							Energy
		Wholesale Energy				Retail Energy				Fuel			Purchases
		2014		2013		2014		2013		2014	2013		2014		2013
PPL and PPL Energy Supply
Total gains (losses) included in earnings		$	(133)	$	(7)	$	(35)	$	18		$	3	$	21	$	9
Change in unrealized gains (losses) relating
	to positions still held at the reporting date		5		7		(12)		18					(3)		5

Fair Value of Assets and Liabilities Measured on Nonrecurring Basis

The following nonrecurring fair value measurement occurred during the nine months ended September 30, 2014, resulting in an asset impairment:

	Carrying		Fair Value Measurements Using
	Amount (a)		Level 3		Loss (b)
PPL and PPL Energy Supply
Kerr Dam Project	$	47	$	29	$	18

(a)Represents carrying value before fair value measurement.

(b)The loss on the Kerr Dam Project was recorded in the Supply segment and included in "Income (Loss) from Discontinued Operations (net of income taxes)" on PPL's and PPL Energy Supply's Statement of Income.