Utility Rate Regulation (Tables)

3 Months Ended

Mar. 31, 2016

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

		PPL				PPL Electric
		March 31,		December 31,		March 31,		December 31,
		2016		2015		2016		2015

Current Regulatory Assets:
	Environmental cost recovery	$	6	$	24
	Transmission service charge		7		10	$	7	$	10
	Other		13		14		2		3
Total current regulatory assets (a)		$	26	$	48	$	9	$	13

Noncurrent Regulatory Assets:
	Defined benefit plans	$	801	$	809	$	465	$	469
	Taxes recoverable through future rates		328		326		328		326
	Storm costs		84		93		26		30
	Unamortized loss on debt		68		68		43		42
	Interest rate swaps		145		141
	Accumulated cost of removal of utility plant		139		137		139		137
	AROs		165		143
	Other		17		16		2		2
Total noncurrent regulatory assets		$	1,747	$	1,733	$	1,003	$	1,006

		LKE				LG&E				KU
		March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
		2016		2015		2016		2015		2016		2015
Current Regulatory Assets:
	Environmental cost recovery	$	6	$	24	$	6	$	13			$	11
	Gas supply clause				1				1
	Gas line tracker		1		1		1		1
	Other		10		9				1	$	10		8
Total current regulatory assets		$	17	$	35	$	7	$	16	$	10	$	19

Noncurrent Regulatory Assets:
	Defined benefit plans	$	336	$	340	$	211	$	215	$	125	$	125
	Storm costs		58		63		32		35		26		28
	Unamortized loss on debt		25		26		16		17		9		9
	Interest rate swaps		145		141		103		98		42		43
	AROs		165		143		64		57		101		86
	Plant retirement costs		6		6						6		6
	Other		9		8		4		2		5		6
Total noncurrent regulatory assets		$	744	$	727	$	430	$	424	$	314	$	303

(a) These amounts are included in "Other current assets" on the Balance Sheets.

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

Current Regulatory Liabilities:
	Generation supply charge	$	30	$	41	$	30	$	41
	Demand side management		11		8
	Gas supply clause				6
	Universal service rider		6		5		6		5
	Transmission formula rate		37		48		37		48
	Fuel adjustment clause		16		14
	Storm damage expense		15		16		15		16
	Other		4		7		1		3
Total current regulatory liabilities		$	119	$	145	$	89	$	113

Noncurrent Regulatory Liabilities:
	Accumulated cost of removal of utility plant	$	693	$	691
	Coal contracts (b)		14		17
	Power purchase agreement - OVEC (b)		82		83
	Net deferred tax assets		22		23
	Act 129 compliance rider		25		22	$	25	$	22
	Defined benefit plans		24		24
	Interest rate swaps		79		82
	Other		3		3
Total noncurrent regulatory liabilities		$	942	$	945	$	25	$	22

Current Regulatory Liabilities:
	Demand side management		$	11	$	8	$	5	$	4	$	6	$	4
	Gas supply clause					6				6
	Fuel adjustment clause			16		14		3		2		13		12
	Other			3		4				1		3		3
Total current regulatory liabilities			$	30	$	32	$	8	$	13	$	22	$	19

Noncurrent Regulatory Liabilities:
	Accumulated cost of removal
		of utility plant	$	693	$	691	$	303	$	301	$	390	$	390
	Coal contracts (b)			14		17		6		7		8		10
	Power purchase agreement - OVEC (b)			82		83		57		57		25		26
	Net deferred tax assets			22		23		22		23
	Defined benefit plans			24		24						24		24
	Interest rate swaps			79		82		39		41		40		41
	Other			3		3		1		2		2		1
Total noncurrent regulatory liabilities			$	917	$	923	$	428	$	431	$	489	$	492

(b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL.