Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies [Line Items]

Unrecorded Unconditional Purchase Obligations

LG&E and KU enter into purchase contracts to supply the coal and natural gas requirements for generation facilities and LG&E’s gas supply operations. These contracts include the following commitments:

	Maximum
	Maturity
Contract Type	Date
Coal	2022
Coal Transportation and Fleeting Services	2024
Natural Gas Storage	2024
Natural Gas Transportation	2026

Future obligations for power purchases from OVEC are unconditional demand payments, comprised of annual minimum debt service payments, as well as contractually required reimbursement of plant operating, maintenance and other expenses are projected as follows:

	LG&E		KU		Total
2016	$	18	$	8	$	26
2017		19		8		27
2018		19		8		27
2019		19		9		28
2020		20		9		29
Thereafter		435		193		628
	$	530	$	235	$	765

LG&E and KU had total energy purchases under the OVEC power purchase agreement for the years ended December 31 as follows:

	2015		2014		2013
LG&E	$	15	$	17	$	18
KU		7		8		8
Total	$	22	$	25	$	26

Guarantees

The table below details guarantees provided as of December 31, 2015.

	Exposure at			Expiration
	December 31, 2015			Date
PPL
Indemnifications related to the WPD Midlands acquisition			(a)
WPD indemnifications for entities in liquidation and sales of assets	$	11	(b)	2019
WPD guarantee of pension and other obligations of unconsolidated entities		114	(c)
PPL Electric
Guarantee of inventory value		29	(d)	2018
LKE
Indemnification of lease termination and other divestitures		301	(e)	2021 - 2023
LG&E and KU
LG&E and KU guarantee of shortfall related to OVEC			(f)

(a)Indemnifications related to certain liabilities, including a specific unresolved tax issue and those relating to properties and assets owned by the seller that were transferred to WPD Midlands in connection with the acquisition. A cross indemnity has been received from the seller on the tax issue. The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents.

(b)Indemnification to the liquidators and certain others for existing liabilities or expenses or liabilities arising during the liquidation process. The indemnifications are limited to distributions made from the subsidiary to its parent either prior or subsequent to liquidation or are not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases where the agreements provide for specific limits.

In connection with their sales of various businesses, WPD and its affiliates have provided the purchasers with indemnifications that are standard for such transactions, including indemnifications for certain pre-existing liabilities and environmental and tax matters or have agreed to continue their obligations under existing third-party guarantees, either for a set period of time following the transactions or upon the condition that the purchasers make reasonable efforts to terminate the guarantees. Finally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

(c)Relates to certain obligations of discontinued or modified electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At December 31, 2015, WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure has been estimated.

(d)A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any remaining inventory that has not been used or sold.

(e)LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE’s indemnitee filed a motion for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. In September 2015, the counterparty issued a demand letter to LKE’s indemnitee. In February 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claims made and has disputed the demands. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting preliminary settlement discussions, however, the ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum; LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. LKE cannot predict the ultimate outcomes of the indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded.

(f)Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement and decommissioning costs, as well as any shortfall from amounts currently included within a demand charge designed and currently expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $124 million at December 31, 2015, consisting of LG&E's share of $86 million and KU's share of $38 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" above for additional information on the OVEC power purchase contract.

LG And E And KU Energy LLC [Member]

Commitments And Contingencies [Line Items]

Unrecorded Unconditional Purchase Obligations

LG&E and KU enter into purchase contracts to supply the coal and natural gas requirements for generation facilities and LG&E’s gas supply operations. These contracts include the following commitments:

	Maximum
	Maturity
Contract Type	Date
Coal	2022
Coal Transportation and Fleeting Services	2024
Natural Gas Storage	2024
Natural Gas Transportation	2026

Future obligations for power purchases from OVEC are unconditional demand payments, comprised of annual minimum debt service payments, as well as contractually required reimbursement of plant operating, maintenance and other expenses are projected as follows:

	LG&E		KU		Total
2016	$	18	$	8	$	26
2017		19		8		27
2018		19		8		27
2019		19		9		28
2020		20		9		29
Thereafter		435		193		628
	$	530	$	235	$	765

LG&E and KU had total energy purchases under the OVEC power purchase agreement for the years ended December 31 as follows:

	2015		2014		2013
LG&E	$	15	$	17	$	18
KU		7		8		8
Total	$	22	$	25	$	26

Louisville Gas And Electric Co [Member]

Commitments And Contingencies [Line Items]

Unrecorded Unconditional Purchase Obligations

LG&E and KU enter into purchase contracts to supply the coal and natural gas requirements for generation facilities and LG&E’s gas supply operations. These contracts include the following commitments:

	Maximum
	Maturity
Contract Type	Date
Coal	2022
Coal Transportation and Fleeting Services	2024
Natural Gas Storage	2024
Natural Gas Transportation	2026

Future obligations for power purchases from OVEC are unconditional demand payments, comprised of annual minimum debt service payments, as well as contractually required reimbursement of plant operating, maintenance and other expenses are projected as follows:

	LG&E		KU		Total
2016	$	18	$	8	$	26
2017		19		8		27
2018		19		8		27
2019		19		9		28
2020		20		9		29
Thereafter		435		193		628
	$	530	$	235	$	765

LG&E and KU had total energy purchases under the OVEC power purchase agreement for the years ended December 31 as follows:

	2015		2014		2013
LG&E	$	15	$	17	$	18
KU		7		8		8
Total	$	22	$	25	$	26

Kentucky Utilities Co [Member]

Commitments And Contingencies [Line Items]

Unrecorded Unconditional Purchase Obligations

LG&E and KU enter into purchase contracts to supply the coal and natural gas requirements for generation facilities and LG&E’s gas supply operations. These contracts include the following commitments:

	Maximum
	Maturity
Contract Type	Date
Coal	2022
Coal Transportation and Fleeting Services	2024
Natural Gas Storage	2024
Natural Gas Transportation	2026

Future obligations for power purchases from OVEC are unconditional demand payments, comprised of annual minimum debt service payments, as well as contractually required reimbursement of plant operating, maintenance and other expenses are projected as follows:

	LG&E		KU		Total
2016	$	18	$	8	$	26
2017		19		8		27
2018		19		8		27
2019		19		9		28
2020		20		9		29
Thereafter		435		193		628
	$	530	$	235	$	765

LG&E and KU had total energy purchases under the OVEC power purchase agreement for the years ended December 31 as follows:

	2015		2014		2013
LG&E	$	15	$	17	$	18
KU		7		8		8
Total	$	22	$	25	$	26