10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2021
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _________ to ___________

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number	IRS Employer Identification No.
1-11459	PPL Corporation (Exact name of Registrant as specified in its charter) Pennsylvania Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-2758192
1-905	PPL Electric Utilities Corporation (Exact name of Registrant as specified in its charter) Pennsylvania Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-0959590
333-173665	LG&E and KU Energy LLC (Exact name of Registrant as specified in its charter) Kentucky 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000	20-0523163
1-2893	Louisville Gas and Electric Company (Exact name of Registrant as specified in its charter) Kentucky 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000	61-0264150
1-3464	Kentucky Utilities Company (Exact name of Registrant as specified in its charter) (Kentucky and Virginia) One Quality Street Lexington, KY 40507-1462 (502) 627-2000	61-0247570

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol:	Name of each exchange on which registered
Common Stock of PPL Corporation	PPL	New York Stock Exchange
Junior Subordinated Notes of PPL Capital Funding, Inc.
2007 Series A due 2067	PPL/67	New York Stock Exchange
2013 Series B due 2073	PPX	New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.

PPL Corporation	Yes	☒	No	☐
PPL Electric Utilities Corporation	Yes	☒	No	☐
LG&E and KU Energy LLC	Yes	☒	No	☐
Louisville Gas and Electric Company	Yes	☒	No	☐
Kentucky Utilities Company	Yes	☒	No	☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). 

PPL Corporation	Yes	☒	No	☐
PPL Electric Utilities Corporation	Yes	☒	No	☐
LG&E and KU Energy LLC	Yes	☒	No	☐
Louisville Gas and Electric Company	Yes	☒	No	☐
Kentucky Utilities Company	Yes	☒	No	☐

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, smaller reporting companies or emerging growth companies. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
PPL Corporation	☒	☐	☐	☐	☐
PPL Electric Utilities Corporation	☐	☐	☒	☐	☐
LG&E and KU Energy LLC	☐	☐	☒	☐	☐
Louisville Gas and Electric Company	☐	☐	☒	☐	☐
Kentucky Utilities Company	☐	☐	☒	☐	☐

If emerging growth companies, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

PPL Corporation	☐
PPL Electric Utilities Corporation	☐
LG&E and KU Energy LLC	☐
Louisville Gas and Electric Company	☐
Kentucky Utilities Company	☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

PPL Corporation	Yes	☐	No	☒
PPL Electric Utilities Corporation	Yes	☐	No	☒
LG&E and KU Energy LLC	Yes	☐	No	☒
Louisville Gas and Electric Company	Yes	☐	No	☒
Kentucky Utilities Company	Yes	☐	No	☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

PPL Corporation    Common stock, $0.01 par value, 769,427,879 shares outstanding at April 30, 2021.

PPL Electric Utilities Corporation    Common stock, no par value, 66,368,056 shares outstanding and all held by PPL Corporation at April 30, 2021.

LG&E and KU Energy LLC    PPL Corporation holds all of the membership interests in LG&E and KU Energy LLC.

Louisville Gas and Electric Company    Common stock, no par value, 21,294,223 shares outstanding and all held by LG&E and KU Energy LLC at April 30, 2021.

Kentucky Utilities Company    Common stock, no par value, 37,817,878 shares outstanding and all held by LG&E and KU Energy LLC at April 30, 2021.

This document is available free of charge at the Investors section of PPL Corporation's website at www.pplweb.com. However, other information on this website does not constitute a part of this Form 10-Q.

PPL CORPORATION

PPL ELECTRIC UTILITIES CORPORATION

LG&E AND KU ENERGY LLC

LOUISVILLE GAS AND ELECTRIC COMPANY

KENTUCKY UTILITIES COMPANY

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2021

Table of Contents

This combined Form 10-Q is separately filed by the following Registrants in their individual capacity: PPL Corporation, PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant, except that information under "Forward-Looking Information" relating to subsidiaries of PPL Corporation is also attributed to PPL Corporation and information relating to the subsidiaries of LG&E and KU Energy LLC is also attributed to LG&E and KU Energy LLC.

Unless otherwise specified, references in this Report, individually, to PPL Corporation, PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company are references to such entities directly or to one or more of their subsidiaries, as the case may be, the financial results of which subsidiaries are consolidated into such Registrants' financial statements in accordance with GAAP. This presentation has been applied where identification of particular subsidiaries is not material to the matter being disclosed, and to conform narrative disclosures to the presentation of financial information on a consolidated basis.

				Page
GLOSSARY OF TERMS AND ABBREVIATIONS				i
FORWARD-LOOKING INFORMATION				1
PART I.  FINANCIAL INFORMATION
	Item 1.  Financial Statements
		PPL Corporation and Subsidiaries
			Condensed Consolidated Statements of Income (Loss)	3
			Condensed Consolidated Statements of Comprehensive Income (Loss)	4
			Condensed Consolidated Statements of Cash Flows	5
			Condensed Consolidated Balance Sheets	6
			Condensed Consolidated Statements of Equity	8
		PPL Electric Utilities Corporation and Subsidiaries
			Condensed Consolidated Statements of Income	10
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Balance Sheets	12
			Condensed Consolidated Statements of Equity	14
		LG&E and KU Energy LLC and Subsidiaries
			Condensed Consolidated Statements of Income	16
			Condensed Consolidated Statements of Cash Flows	17
			Condensed Consolidated Balance Sheets	18
			Condensed Consolidated Statements of Equity	20
		Louisville Gas and Electric Company
			Condensed Statements of Income	22
			Condensed Statements of Cash Flows	23
			Condensed Balance Sheets	24
			Condensed Statements of Equity	26
		Kentucky Utilities Company
			Condensed Statements of Income	28
			Condensed Statements of Cash Flows	29
			Condensed Balance Sheets	30
			Condensed Statements of Equity	32

	Combined Notes to Condensed Financial Statements (Unaudited)
		Index to Combined Notes to Condensed Financial Statements		33
		1.   Interim Financial Statements		33
		2.   Summary of Significant Accounting Policies		34
		3.   Segment and Related Information		35
		4.   Revenue from Contracts with Customers		36
		5.   Earnings Per Share		38
		6.   Income Taxes		39
		7.   Utility Rate Regulation		40
		8.   Financing Activities		44
		9.   Acquisitions, Development and Divestitures		47
		10. Defined Benefits		49
		11. Commitments and Contingencies		51
		12. Related Party Transactions		57
		13. Other Income (Expense) - net		58
		14. Fair Value Measurements		59
		15. Derivative Instruments and Hedging Activities		61
		16. Asset Retirement Obligations		69
		17. Accumulated Other Comprehensive Income (Loss)		69
	Item 2.  Combined Management's Discussion and Analysis of Financial Condition and Results of Operations
		Overview		71
			Introduction	71
			Business Strategy	73
			Financial and Operational Developments	73
		Results of Operations		76
			PPL Corporation and Subsidiaries - Statement of Income Analysis, Segment Earnings and Adjusted Gross Margins	77
			PPL Electric Utilities Corporation and Subsidiaries - Statement of Income Analysis	84
			LG&E and KU Energy LLC and Subsidiaries - Statement of Income Analysis	85
			Louisville Gas and Electric Company - Statement of Income Analysis	86
			Kentucky Utilities Company - Statement of Income Analysis	87
		Financial Condition		88
			Liquidity and Capital Resources	88
			Risk Management	94
			Foreign Currency Translation	96
			Related Party Transactions	96
			Acquisitions, Development and Divestitures	96
			Environmental Matters	97
		New Accounting Guidance		97
		Application of Critical Accounting Policies		97
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk			99
	Item 4.  Controls and Procedures			99
PART II.  OTHER INFORMATION
	Item 1. Legal Proceedings			99
	Item 1A. Risk Factors			99
	Item 4. Mine Safety Disclosures			99
	Item 6. Exhibits			100
SIGNATURES				102
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

GLOSSARY OF TERMS AND ABBREVIATIONS

PPL Corporation and its subsidiaries

KU - Kentucky Utilities Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky.

LG&E - Louisville Gas and Electric Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity and the distribution and sale of natural gas in Kentucky.

LKE - LG&E and KU Energy LLC, a subsidiary of PPL and the parent of LG&E, KU and other subsidiaries.

LKS - LG&E and KU Services Company, a subsidiary of LKE that provides administrative, management, and support services primarily to LKE and its subsidiaries.

PPL - PPL Corporation, the parent holding company of PPL Electric, PPL Energy Funding, PPL Capital Funding, LKE and other subsidiaries.

PPL Capital Funding - PPL Capital Funding, Inc., a financing subsidiary of PPL that provides financing for the operations of PPL and certain subsidiaries. Debt issued by PPL Capital Funding is fully and unconditionally guaranteed as to payment by PPL.

PPL Electric - PPL Electric Utilities Corporation, a public utility subsidiary of PPL engaged in the regulated transmission and distribution of electricity in its Pennsylvania service area and that provides electricity supply to its retail customers in this area as a PLR.

PPL Energy Funding - PPL Energy Funding Corporation, a subsidiary of PPL and the parent holding company of PPL Global and other subsidiaries.

PPL Energy Holdings - PPL Energy Holdings, LLC, a subsidiary of PPL and the parent holding company of PPL Energy Funding, LKE and other subsidiaries.

PPL EU Services - PPL EU Services Corporation, a subsidiary of PPL that provides administrative, management and support services primarily to PPL Electric.

PPL Global - PPL Global, LLC, a subsidiary of PPL Energy Funding that, primarily through its subsidiaries, owns and operates WPD, PPL's regulated electricity distribution businesses in the U.K.

PPL Rhode Island Holdings - PPL Rhode Island Holdings, LLC, a subsidiary of PPL Energy Holdings to which certain interests of PPL Energy Holdings in the Narragansett SPA were assigned.

PPL Services - PPL Services Corporation, a subsidiary of PPL that provides administrative, management and support services to PPL and its subsidiaries.

PPL WPD Investments Limited – a subsidiary of PPL WPD Limited and parent to WPD plc.

PPL WPD Limited - a U.K. subsidiary of PPL Global. Following reorganizations in October 2015 and October 2017, PPL WPD Limited is an indirect parent to WPD plc having previously been a sister company.

Safari Energy - Safari Energy, LLC, an indirect subsidiary of PPL, acquired in June 2018, that provides solar energy solutions for commercial customers in the U.S.

U.K. utility business – Includes PPL WPD Investments Limited and its subsidiaries, including, notably, WPD plc and the four DNOs, which substantially represents PPL's U.K. Regulated segment. On March 17, 2021, PPL WPD Limited entered into an agreement to sell PPL's U.K. utility business.

WPD - refers to PPL WPD Limited and its subsidiaries.

i

WPD (East Midlands) - Western Power Distribution (East Midlands) plc, a British regional electricity distribution utility company.

WPD plc - Western Power Distribution plc, a U.K. indirect subsidiary of PPL WPD Limited. Its principal indirectly owned subsidiaries are WPD (East Midlands), WPD (South Wales), WPD (South West) and WPD (West Midlands).

WPD Midlands - refers to WPD (East Midlands) and WPD (West Midlands), collectively.

WPD (South Wales) - Western Power Distribution (South Wales) plc, a British regional electricity distribution utility company.

WPD (South West) - Western Power Distribution (South West) plc, a British regional electricity distribution utility company.

WPD (West Midlands) - Western Power Distribution (West Midlands) plc, a British regional electricity distribution utility company.

WKE - Western Kentucky Energy Corp., a subsidiary of LKE that leased certain non-regulated utility generating plants in western Kentucky until July 2009.

Other terms and abbreviations

£ - British pound sterling.

2020 Form 10-K - Annual Report to the SEC on Form 10-K for the year ended December 31, 2020.

Act 11 - Act 11 of 2012 that became effective on April 16, 2012. The Pennsylvania legislation authorized the PUC to approve two specific ratemaking mechanisms: the use of a fully projected future test year in base rate proceedings and, subject to certain conditions, a DSIC.

Act 129 - Act 129 of 2008 that became effective in October 2008. The law amended the Pennsylvania Public Utility Code and created an energy efficiency and conservation program and smart metering technology requirements, adopted new PLR electricity supply procurement rules, provided remedies for market misconduct and changed the Alternative Energy Portfolio Standard (AEPS).

Act 129 Smart Meter program - PPL Electric's system wide meter replacement program that installs wireless digital meters that provide secure communication between PPL Electric and the meter as well as all related infrastructure.

Adjusted Gross Margins - a non-GAAP financial measure of performance used in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A).

Advanced Metering Infrastructure - meters and meter reading infrastructure that provide two-way communication capabilities, which communicate usage and other relevant data to LG&E and KU at regular intervals, and are also able to receive information from LG&E and KU, such as software upgrades and requests to provide meter readings in real time.

AFUDC - allowance for funds used during construction. The cost of equity and debt funds used to finance construction projects of regulated businesses, which is capitalized as part of construction costs.

AOCI - accumulated other comprehensive income or loss.

ARO - asset retirement obligation.

ATM Program - at-the-market stock offering program.

CCR(s) - coal combustion residual(s). CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes.

Clean Air Act - federal legislation enacted to address certain environmental issues related to air emissions, including acid rain, ozone and toxic air emissions.

ii

Clean Water Act - federal legislation enacted to address certain environmental issues relating to water quality including effluent discharges, cooling water intake, and dredge and fill activities.

COVID-19 - the disease caused by the novel coronavirus identified in 2019 that has caused a global pandemic.

CPCN - Certificate of Public Convenience and Necessity. Authority granted by the KPSC pursuant to Kentucky Revised Statute 278.020 to provide utility service to or for the public or the construction of certain plant, equipment, property or facility for furnishing of utility service to the public. A CPCN is required for any capital addition, subject to KPSC jurisdiction, in excess of $100 million.

CPI - consumer price index, a measure of inflation in the U.K. published monthly by the Office for National Statistics.

CPIH - consumer price index including owner-occupiers' housing costs. An aggregate measure of changes in the cost of living in the U.K., including a measure of owner-occupiers' housing costs.

Customer Choice Act - the Pennsylvania Electricity Generation Customer Choice and Competition Act, legislation enacted to restructure the state's electric utility industry to create retail access to a competitive market for generation of electricity.

DNO - Distribution Network Operator in the U.K.

DRIP - PPL Amended and Restated Direct Stock Purchase and Dividend Reinvestment Plan.

DSIC - Distribution System Improvement Charge. Authorized under Act 11, which is an alternative ratemaking mechanism providing more-timely cost recovery of qualifying distribution system capital expenditures.

DSM - Demand Side Management. Pursuant to Kentucky Revised Statute 278.285, the KPSC may determine the reasonableness of DSM programs proposed by any utility under its jurisdiction. DSM programs consist of energy efficiency programs intended to reduce peak demand and delay the investment in additional power plant construction, provide customers with tools and information regarding their energy usage and support energy efficiency.

DSO - Distribution System Operation in the U.K. is the effective delivery of a range of functions and services that need to happen to run an advanced electricity distribution network. These functions cover long-term network planning; operations, real-time processes and planning, and markets and settlement. This does not focus on a single party as an operator; but recognizes roles for a range of parties to deliver DSO.

DSP - Default Service Provider.

Earnings from Ongoing Operations - a non-GAAP financial measure of earnings adjusted for the impact of special items and used in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A).

ECR - Environmental Cost Recovery. Pursuant to Kentucky Revised Statute 278.183, Kentucky electric utilities are entitled to the current recovery of costs of complying with the Clean Air Act, as amended, and those federal, state or local environmental requirements that apply to coal combustion wastes and byproducts from the production of energy from coal.

ELG(s) - Effluent Limitation Guidelines, regulations promulgated by the EPA.

EPA - Environmental Protection Agency, a U.S. government agency.

EPS - earnings per share.

FERC - Federal Energy Regulatory Commission, the U.S. federal agency that regulates, among other things, interstate transmission and wholesale sales of electricity, hydroelectric power projects and related matters.

GAAP - Generally Accepted Accounting Principles in the U.S.

GBP - British pound sterling.

iii

GHG(s) - greenhouse gas(es).

GLT - gas line tracker. The KPSC approved mechanism for LG&E's recovery of costs associated with gas transmission lines, gas service lines, gas risers, leak mitigation, and gas main replacements.

IRS - Internal Revenue Service, a U.S. government agency.

KPSC - Kentucky Public Service Commission, the state agency that has jurisdiction over the regulation of rates and service of utilities in Kentucky.

LIBOR - London Interbank Offered Rate.

Moody's - Moody's Investors Service, Inc., a credit rating agency.

MW - megawatt, one thousand kilowatts.

NAAQS - National Ambient Air Quality Standards periodically adopted pursuant to the Clean Air Act. 

NERC - North American Electric Reliability Corporation.

NPNS - the normal purchases and normal sales exception as permitted by derivative accounting rules. Derivatives that qualify for this exception may receive accrual accounting treatment.

OCI - other comprehensive income or loss.

Ofgem - Office of Gas and Electricity Markets, the British agency that regulates transmission, distribution and wholesale sales of electricity and gas and related matters.

OVEC - Ohio Valley Electric Corporation, located in Piketon, Ohio, an entity in which LKE indirectly owns an 8.13% interest (consists of LG&E's 5.63% and KU's 2.50% interests), which is recorded at cost. OVEC owns and operates two coal-fired power plants, the Kyger Creek plant in Ohio and the Clifty Creek plant in Indiana, with combined capacities of 2,120 MW.

PEDFA - Pennsylvania Economic Development Financing Authority.

PLR - Provider of Last Resort, the role of PPL Electric in providing default electricity supply within its delivery area to retail customers who have not chosen to select an alternative electricity supplier under the Customer Choice Act.

PP&E - property, plant and equipment.

PPL EnergyPlus - prior to the June 1, 2015 spinoff, PPL Energy Supply, LLC, PPL EnergyPlus, LLC, a subsidiary of PPL Energy Supply that marketed and traded wholesale and retail electricity and gas and supplied energy and energy services in competitive markets.

PPL Energy Supply - prior to the June 1, 2015 spinoff, PPL Energy Supply, LLC, a subsidiary of PPL Energy Funding and the indirect parent company of PPL Montana, LLC.

PPL Montana - prior to the June 1, 2015 spinoff of PPL Energy Supply, PPL Montana, LLC, an indirect subsidiary of PPL Energy Supply that generated electricity for wholesale sales in Montana and the Pacific Northwest.

PUC - Pennsylvania Public Utility Commission, the state agency that regulates certain ratemaking, services, accounting and operations of Pennsylvania utilities.

RAV - regulatory asset value. This term, used within the U.K. regulatory environment, is also commonly known as RAB or regulatory asset base. RAV is based on historical investment costs at time of privatization, plus subsequent allowed additions less annual regulatory depreciation, and represents the value on which DNOs earn a return in accordance with the regulatory cost of capital. RAV is indexed to Retail Price Index (RPI) in order to allow for the effects of inflation. RAV additions have been and continue to be based on a percentage of annual total expenditures that have a long-term benefit to WPD (similar to capital projects for the U.S. regulated businesses that are generally included in rate base).

iv

RCRA - Resource Conservation and Recovery Act of 1976.

Registrant(s) - refers to the Registrants named on the cover of this Report (each a "Registrant" and collectively, the "Registrants").

Regulation S-X - SEC regulation governing the form and content of and requirements for financial statements required to be filed pursuant to the federal securities laws.

RIIO - Ofgem's framework for setting U.K. regulated gas and electric utility price controls which stands for "Revenues = Incentive + Innovation + Outputs." RIIO-1 refers to the first generation of price controls under the RIIO framework. RIIO-ED1 refers to the RIIO regulatory price control applicable to the operators of U.K. electricity distribution networks, the duration of which is April 2015 through March 2023. RIIO-2 refers to the second generation of price controls under the RIIO framework. RIIO-ED2 refers to the second generation of the RIIO regulatory price control applicable to the operators of U.K. electricity distribution networks, which will begin in April 2023.

Riverstone - Riverstone Holdings LLC, a Delaware limited liability company and, as of December 6, 2016, ultimate parent company of the entities that own the competitive power generation business contributed to Talen Energy.

RPI - retail price index, is a measure of inflation in the United Kingdom published monthly by the Office for National Statistics.

Sarbanes-Oxley - Sarbanes-Oxley Act of 2002, which sets requirements for management's assessment of internal controls for financial reporting. It also requires an independent auditor to make its own assessment.

Scrubber - an air pollution control device that can remove particulates and/or gases (primarily sulfur dioxide) from exhaust gases.

SEC - the U.S. Securities and Exchange Commission, a U.S. government agency primarily responsible to protect investors and maintain the integrity of the securities markets.

Smart metering technology - technology that can measure, among other things, time of electricity consumption to permit offering rate incentives for usage during lower cost or demand intervals. The use of this technology also has the potential to strengthen network reliability.

S&P - S&P Global Ratings, a credit rating agency.

Superfund - federal environmental statute that addresses remediation of contaminated sites; states also have similar statutes.

Talen Energy - Talen Energy Corporation, the Delaware corporation formed to be the publicly traded company and owner of the competitive generation assets of PPL Energy Supply and certain affiliates of Riverstone, which as of December 6, 2016, became wholly owned by Riverstone.

Talen Energy Marketing - Talen Energy Marketing, LLC, the successor name of PPL EnergyPlus after the spinoff of PPL Energy Supply that marketed and traded wholesale and retail electricity and gas, and supplied energy and energy services in competitive markets, after the June 1, 2015 spinoff of PPL Energy Supply.

TCJA - Tax Cuts and Jobs Act. Comprehensive U.S. federal tax legislation enacted on December 22, 2017.

Treasury Stock Method - a method applied to calculate diluted EPS that assumes any proceeds that could be obtained upon exercise of options and warrants (and their equivalents) would be used to purchase common stock at the average market price during the relevant period.

VEBA - Voluntary Employee Beneficiary Association. A tax-exempt trust under the Internal Revenue Code Section 501(c)(9) used by employers to fund and pay eligible medical, life and similar benefits.

VSCC - Virginia State Corporation Commission, the state agency that has jurisdiction over the regulation of Virginia corporations, including utilities.

v

Forward-looking Information

Statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact are "forward-looking statements" within the meaning of the federal securities laws. Although the Registrants believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct. Forward-looking statements are subject to many risks and uncertainties, and actual results may differ materially from the results discussed in forward-looking statements. In addition to the specific factors discussed in each Registrant's 2020 Form 10-K and in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, the following are among the important factors that could cause actual results to differ materially and adversely from the forward-looking statements:

•strategic acquisitions, dispositions, or similar transactions, including the expected sale of our U.K. utility business and the expected acquisition of The Narragansett Electric Company, and our ability to consummate these business transactions or realize expected benefits from them;

•the COVID-19 pandemic and its continuing impact on economic conditions and financial markets;

•other pandemic health events or other catastrophic events such as fires, earthquakes, explosions, floods, droughts, tornadoes, hurricanes and other storms;

•the outcome of rate cases or other cost recovery or revenue proceedings;

•changes in U.S. state or federal or U.K. tax laws or regulations;

•the direct or indirect effects on PPL or its subsidiaries or business systems of cyber-based intrusion or the threat of cyberattacks;

•significant decreases in demand for electricity in the U.S.;

•expansion of alternative and distributed sources of electricity generation and storage;

•changes in foreign currency exchange rates for British pound sterling and the related impact on unrealized gains and losses on PPL's foreign currency economic hedges;

•the effectiveness of our risk management programs, including foreign currency and interest rate hedging;

•non-achievement by WPD of performance targets set by Ofgem;

•the effect of changes in RPI on WPD's revenues and index linked debt;

•developments related to the U.K.'s withdrawal from the European Union and any responses thereto;

•defaults by counterparties or suppliers for energy, capacity, coal, natural gas or key commodities, goods or services;

•capital market conditions, including the availability of capital or credit, changes in interest rates and certain economic indices, and decisions regarding capital structure;

•a material decline in the market value of PPL's equity;

•significant decreases in the fair value of debt and equity securities and their impact on the value of assets in defined benefit plans, and the potential cash funding requirements if fair value declines;

•interest rates and their effect on pension and retiree medical liabilities, ARO liabilities and interest payable on certain debt securities;

•volatility in or the impact of other changes in financial markets and economic conditions;

•the potential impact of any unrecorded commitments and liabilities of the Registrants and their subsidiaries;

•new accounting requirements or new interpretations or applications of existing requirements;

•changes in the corporate credit ratings or securities analyst rankings of the Registrants and their securities;

•any requirement to record impairment charges pursuant to GAAP with respect to any of our significant investments;

•laws or regulations to reduce emissions of GHGs or the physical effects of climate change;

•continuing ability to access fuel supply for LG&E and KU, as well as the ability to recover fuel costs and environmental expenditures in a timely manner at LG&E and KU and natural gas supply costs at LG&E;

•weather and other conditions affecting generation, transmission and distribution operations, operating costs and customer energy use;

•war, armed conflicts, terrorist attacks, or similar disruptive events;

•changes in political, regulatory or economic conditions in states, regions or countries where the Registrants or their subsidiaries conduct business;

•receipt of necessary governmental permits and approvals;

•new state, federal or foreign legislation or regulatory developments;

•the impact of any state, federal or foreign investigations applicable to the Registrants and their subsidiaries and the energy industry;

•our ability to attract and retain qualified employees;

•the effect of any business or industry restructuring;

•development of new projects, markets and technologies;

1

•performance of new ventures;

•collective labor bargaining negotiations; and

•the outcome of litigation involving the Registrants and their subsidiaries.

Any forward-looking statements should be considered in light of these important factors and in conjunction with other documents of the Registrants on file with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for the Registrants to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and the Registrants undertake no obligation to update the information contained in the statement to reflect subsequent developments or information.

2

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, except share data)

	Three Months Ended March 31,
	2021		2020
Operating Revenues	$	1,498	$	1,440
Operating Expenses
Operation
Fuel	177		163
Energy purchases	220		201
Other operation and maintenance	367		355
Depreciation	267		250
Taxes, other than income	52		47
Total Operating Expenses	1,083		1,016
Operating Income	415		424
Other Income (Expense) - net	—		(5)
Interest Expense	153		154
Income from Continuing Operations Before Income Taxes	262		265
Income Taxes	59		61
Income from Continuing Operations After Income Taxes	203		204
Income (Loss) from Discontinued Operations (net of income taxes) (Note 9)	(2,043)		350
Net Income (Loss)	$	(1,840)	$	554
Earnings Per Share of Common Stock:
Basic and Diluted
Income (Loss) from Continuing Operations After Income Taxes	$	0.26	$	0.27
Income (Loss) from Discontinued Operations (net of income taxes)	(2.65)		0.45
Net Income (Loss) Available to PPL Common Shareowners	$	(2.39)	$	0.72
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic	769,159		767,948
Diluted	770,710		768,738

 The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Net income (loss)	$	(1,840)	$	554
Other comprehensive income (loss):
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Foreign currency translation adjustments, net of tax of ($80), $0	303		(61)
Qualifying derivatives, net of tax of $16, ($2)	(30)		8
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Qualifying derivatives, net of tax of ($14), $0	25		(3)
Defined benefit plans:
Prior service costs, net of tax of $0, $0	—		1
Net actuarial (gain) loss, net of tax of ($22), ($12)	40		47
Total other comprehensive income (loss)	338		(8)
Comprehensive income (loss)	$	(1,502)	$	546

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income (loss)	$	(1,840)	$	554
Loss (income) from discontinued operations (net of income taxes)	2,043		(350)
Income from continuing operations (net of income taxes)	203		204
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	267		250
Amortization	11		9
Defined benefit plans - (income) expense	4		9
Deferred income taxes and investment tax credits	50		75
Unrealized (gains) losses on derivatives, and other hedging activities	—		(4)
Stock-based compensation expense	6		6
Other	(5)		1
Change in current assets and current liabilities
Accounts receivable	(60)		—
Accounts payable	(42)		(42)
Unbilled revenues	76		62
Fuel, materials and supplies	41		12
Prepayments	(76)		(75)
Regulatory assets and liabilities, net	29		(25)
Accrued interest	69		66
Other current liabilities	(103)		(132)
Other	2		22
Other operating activities
Defined benefit plans - funding	(33)		(54)
Other assets	(74)		42
Other liabilities	31		(13)
Net cash provided by operating activities - continuing operations	396		413
Net cash provided by operating activities - discontinued operations	267		279
Net cash provided by operating activities	663		692
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(471)		(616)
Other investing activities	(1)		(3)
Net cash used in investing activities - continuing operations	(472)		(619)
Net cash used in investing activities - discontinued operations	(263)		(214)
Net cash used in investing activities	(735)		(833)
Cash Flows from Financing Activities
Proceeds from project financing	5		—
Issuance of common stock	1		20
Payment of common stock dividends	(320)		(317)
Issuance of term loan	—		200
Retirement of term loan	(300)		—
Retirement of commercial paper	(73)		—
Net increase (decrease) in short-term debt	752		388
Other financing activities	(10)		(8)
Net cash provided by financing activities - continuing operations	55		283
Net cash used in financing activities - discontinued operations	(126)		(43)
Net cash provided by (used in) financing activities	(71)		240
Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash included in Discontinued Operations	8		1
Net (Increase) Decrease in Cash, Cash Equivalents and Restricted Cash included in Discontinued Operations	114		(23)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(21)		77
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	443		660
Cash, Cash Equivalents and Restricted Cash at End of Period	$	422	$	737
Supplemental Disclosures of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at March 31,	$	229	$	237

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

5

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	421	$	442
Accounts receivable (less reserve: 2021, $72; 2020, $71)
Customer	634		603
Other	77		86
Unbilled revenues (less reserve: 2021, $3; 2020, $4)	225		301
Fuel, materials and supplies	260		302
Prepayments	132		53
Regulatory assets	121		99
Other current assets	32		31
Current assets held for sale (Note 9)	18,425		18,983
Total Current Assets	20,327		20,900
Property, Plant and Equipment
Regulated utility plant	29,354		29,040
Less:  accumulated depreciation - regulated utility plant	6,156		6,008
Regulated utility plant, net	23,198		23,032
Non-regulated property, plant and equipment	245		237
Less:  accumulated depreciation - non-regulated property, plant and equipment	38		37
Non-regulated property, plant and equipment, net	207		200
Construction work in progress	1,292		1,268
Property, Plant and Equipment, net	24,697		24,500
Other Noncurrent Assets
Regulatory assets	1,233		1,262
Goodwill	716		716
Other intangibles	348		351
Pension benefit asset	67		24
Other noncurrent assets	393		363
Total Other Noncurrent Assets	2,757		2,716
Total Assets	$	47,781	$	48,116

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

6

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Liabilities and Equity
Current Liabilities
Short-term debt	$	1,547	$	1,168
Long-term debt due within one year	976		1,074
Accounts payable	660		745
Taxes	45		69
Interest	182		113
Dividends	320		319
Regulatory liabilities	130		79
Other current liabilities	387		465
Current liabilities held for sale (Note 9)	11,376		11,023
Total Current Liabilities	15,623		15,055
Long-term Debt	13,715		13,615
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	3,370		2,536
Investment tax credits	121		122
Accrued pension obligations	183		189
Asset retirement obligations	130		132
Regulatory liabilities	2,526		2,530
Other deferred credits and noncurrent liabilities	559		564
Total Deferred Credits and Other Noncurrent Liabilities	6,889		6,073
Commitments and Contingent Liabilities (Notes 7 and 11)
Equity
Common stock - $0.01 par value (a)	8		8
Additional paid-in capital	12,273		12,270
Earnings reinvested	3,155		5,315
Accumulated other comprehensive loss	(3,882)		(4,220)
Total Equity	11,554		13,373
Total Liabilities and Equity	$	47,781	$	48,116

(a)1,560,000 shares authorized; 769,427 and 768,907 shares issued and outstanding at March 31, 2021 and December 31, 2020.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

7

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)  

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Accumulated other comprehensive loss		Total
December 31, 2020	768,907	$	8	$	12,270	$	5,315	$	(4,220)	$	13,373
Common stock issued	520			16						16
Stock-based compensation				(13)						(13)
Net income (loss)						(1,840)				(1,840)
Dividends and dividend equivalents (b)						(320)				(320)
Other comprehensive income (loss)								338		338
March 31, 2021	769,427	$	8	$	12,273	$	3,155	$	(3,882)	$	11,554
December 31, 2019	767,233	$	8	$	12,214	$	5,127	$	(4,358)	$	12,991
Common stock issued	1,033			34						34
Stock-based compensation				(9)						(9)
Net income (loss)						554				554
Dividends and dividend equivalents (b)						(319)				(319)
Other comprehensive income (loss)								(8)		(8)
Adoption of financial instrument credit losses guidance cumulative effect adjustment						(2)				(2)
March 31, 2020	768,266	$	8	$	12,239	$	5,360	$	(4,366)	$	13,241

(a)Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

(b)Dividends declared per share of common stock were $0.415 for the three months ended March 31, 2021 and March 31, 2020.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

8

THIS PAGE INTENTIONALLY LEFT BLANK.

9

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Operating Revenues	$	605	$	608
Operating Expenses
Operation
Energy purchases	149		144
Other operation and maintenance	128		137
Depreciation	108		98
Taxes, other than income	32		30
Total Operating Expenses	417		409
Operating Income	188		199
Other Income (Expense) - net	5		3
Interest Income from Affiliate	—		1
Interest Expense	43		44
Income Before Income Taxes	150		159
Income Taxes	37		41
Net Income (a)	$	113	$	118

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income	$	113	$	118
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	108		98
Amortization	6		5
Defined benefit plans - expense (income)	(3)		(1)
Deferred income taxes and investment tax credits	13		32
Other	(4)		9
Change in current assets and current liabilities
Accounts receivable	(37)		(26)
Accounts payable	(9)		(20)
Unbilled revenues	37		34
Prepayments	(78)		(76)
Regulatory assets and liabilities, net	39		(11)
Other	(14)		(21)
Other operating activities
Defined benefit plans - funding	(21)		(21)
Other assets	(27)		4
Other liabilities	(2)		8
Net cash provided by operating activities	121		132
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(223)		(280)
Expenditures for intangible assets	(1)		(1)
Other investing activities	2		—
Net cash used in investing activities	(222)		(281)
Cash Flows from Financing Activities
Payment of common stock dividends to parent	(115)		(165)
Net increase in short-term debt	205		85
Net cash provided by (used in) financing activities	90		(80)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(11)		(229)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	40		264
Cash, Cash Equivalents and Restricted Cash at End of Period	$	29	$	35
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at March 31,	$	143	$	158

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

11

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	29	$	40
Accounts receivable (less reserve: 2021, $41; 2020, $41)
Customer	346		311
Other	19		17
Accounts receivable from affiliates	10		10
Unbilled revenues (less reserve: 2021, $1; 2020, $2)	84		121
Materials and supplies	59		59
Prepayments	87		9
Regulatory assets	47		40
Other current assets	15		13
Total Current Assets	696		620
Property, Plant and Equipment
Regulated utility plant	13,680		13,514
Less: accumulated depreciation - regulated utility plant	3,348		3,297
Regulated utility plant, net	10,332		10,217
Construction work in progress	588		592
Property, Plant and Equipment, net	10,920		10,809
Other Noncurrent Assets
Regulatory assets	525		541
Intangibles	268		268
Pension benefit asset	42		12
Other noncurrent assets	103		74
Total Other Noncurrent Assets	938		895
Total Assets	$	12,554	$	12,324

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

12

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Liabilities and Equity
Current Liabilities
Short-term debt	$	205	$	—
Long-term debt due within one year	400		400
Accounts payable	375		428
Accounts payable to affiliates	71		39
Taxes	10		17
Interest	45		39
Regulatory liabilities	114		68
Other current liabilities	94		105
Total Current Liabilities	1,314		1,096
Long-term Debt	3,837		3,836
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,579		1,559
Accrued pension obligations	8		8
Regulatory liabilities	573		578
Other deferred credits and noncurrent liabilities	121		123
Total Deferred Credits and Other Noncurrent Liabilities	2,281		2,268
Commitments and Contingent Liabilities (Notes 7 and 11)
Equity
Common stock - no par value (a)	364		364
Additional paid-in capital	3,753		3,753
Earnings reinvested	1,005		1,007
Total Equity	5,122		5,124
Total Liabilities and Equity	$	12,554	$	12,324

(a)170,000 shares authorized; 66,368 shares issued and outstanding at March 31, 2021 and December 31, 2020.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

13

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
December 31, 2020	66,368	$	364	$	3,753	$	1,007	$	5,124
Net income						113		113
Dividends declared on common stock						(115)		(115)
March 31, 2021	66,368	$	364	$	3,753	$	1,005	$	5,122
December 31, 2019	66,368	$	364	$	3,558	$	910	$	4,832
Net income						118		118
Dividends declared on common stock						(165)		(165)
March 31, 2020	66,368	$	364	$	3,558	$	863	$	4,785

(a)Shares in thousands. All common shares of PPL Electric stock are owned by PPL.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

14

THIS PAGE INTENTIONALLY LEFT BLANK.

15

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Operating Revenues	$	885	$	825
Operating Expenses
Operation
Fuel	177		163
Energy purchases	71		57
Other operation and maintenance	220		204
Depreciation	156		149
Taxes, other than income	21		18
Total Operating Expenses	645		591
Operating Income	240		234
Interest Expense	51		58
Interest Expense with Affiliate	13		7
Income Before Income Taxes	176		169
Income Taxes	30		34
Net Income (a)	$	146	$	135

(a)Net income approximates comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

16

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income	$	146	$	135
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	156		149
Amortization	4		4
Defined benefit plans - expense	5		5
Deferred income taxes and investment tax credits	20		31
Change in current assets and current liabilities
Accounts receivable	3		20
Accounts payable	(4)		(18)
Accounts payable to affiliates	9		1
Unbilled revenues	39		27
Fuel, materials and supplies	42		24
Regulatory assets and liabilities, net	(10)		(14)
Taxes payable	(18)		(27)
Accrued interest	45		51
Other	(51)		(37)
Other operating activities
Defined benefit plans - funding	(2)		(23)
Expenditures for asset retirement obligations	(15)		(15)
Other assets	1		1
Other liabilities	6		6
Net cash provided by operating activities	376		320
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(238)		(255)
Net cash used in investing activities	(238)		(255)
Cash Flows from Financing Activities
Net increase in notes payable with affiliate	(24)		92
Net increase (decrease) in short-term debt	8		(85)
Retirement of commercial paper	(73)		—
Distributions to member	(62)		(52)
Net cash used in financing activities	(151)		(45)
Net Increase (Decrease) in Cash and Cash Equivalents	(13)		20
Cash and Cash Equivalents at Beginning of Period	29		27
Cash and Cash Equivalents at End of Period	$	16	$	47
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at March 31,	$	86	$	78

 The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

17

CONDENSED CONSOLIDATED BALANCE SHEETS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	March 31, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	16	$	29
Accounts receivable (less reserve: 2021, $30; 2020, $30)
Customer	282		283
Other	52		69
Unbilled revenues (less reserve: 2021, $2; 2020, $2)	137		176
Fuel, materials and supplies	200		242
Prepayments	27		30
Regulatory assets	74		59
Other current assets	1		4
Total Current Assets	789		892
Property, Plant and Equipment
Regulated utility plant	15,706		15,557
Less: accumulated depreciation - regulated utility plant	2,816		2,717
Regulated utility plant, net	12,890		12,840
Construction work in progress	669		640
Property, Plant and Equipment, net	13,559		13,480
Other Noncurrent Assets
Regulatory assets	708		721
Goodwill	996		996
Other intangibles	59		61
Other noncurrent assets	127		127
Total Other Noncurrent Assets	1,890		1,905
Total Assets	$	16,238	$	16,277

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

18

CONDENSED CONSOLIDATED BALANCE SHEETS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	March 31, 2021		December 31, 2020
Liabilities and Equity
Current Liabilities
Short-term debt	$	400	$	465
Long-term debt due within one year	476		674
Notes payable with affiliates	227		251
Accounts payable	261		294
Accounts payable to affiliates	25		16
Customer deposits	64		64
Taxes	53		71
Price risk management liabilities	1		2
Regulatory liabilities	16		11
Interest	82		37
Asset retirement obligations	41		50
Other current liabilities	108		162
Total Current Liabilities	1,754		2,097
Long-term Debt
Long-term debt	4,399		4,200
Long-term debt to affiliate	1,200		1,200
Total Long-term Debt	5,599		5,400
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,208		1,175
Investment tax credits	121		121
Price risk management liabilities	16		21
Accrued pension obligations	106		112
Asset retirement obligations	130		132
Regulatory liabilities	1,953		1,952
Other deferred credits and noncurrent liabilities	148		151
Total Deferred Credits and Other Noncurrent Liabilities	3,682		3,664
Commitments and Contingent Liabilities (Notes 7 and 11)
Member's Equity	5,203		5,116
Total Liabilities and Equity	$	16,238	$	16,277

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

19

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Member's Equity
December 31, 2020	$	5,116
Net income	146
Distributions to member	(62)
Other comprehensive income	3
March 31, 2021	$	5,203
December 31, 2019	$	4,942
Net income	135
Distributions to member	(52)
Other comprehensive income	1
March 31, 2020	$	5,026

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

20

THIS PAGE INTENTIONALLY LEFT BLANK.

21

CONDENSED STATEMENTS OF INCOME

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Operating Revenues
Retail and wholesale	$	421	$	393
Electric revenue from affiliate	7		14
Total Operating Revenues	428		407
Operating Expenses
Operation
Fuel	67		74
Energy purchases	66		52
Energy purchases from affiliate	5		—
Other operation and maintenance	96		92
Depreciation	66		64
Taxes, other than income	11		10
Total Operating Expenses	311		292
Operating Income	117		115
Other Income (Expense) - net	(2)		(1)
Interest Expense	21		22
Income Before Income Taxes	94		92
Income Taxes	19		19
Net Income (a)	$	75	$	73

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

22

CONDENSED STATEMENTS OF CASH FLOWS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income	$	75	$	73
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	66		64
Amortization	2		2
Defined benefit plans - expense	1		1
Deferred income taxes and investment tax credits	(1)		1
Change in current assets and current liabilities
Accounts receivable	(1)		14
Accounts receivable from affiliates	(3)		(6)
Accounts payable	8		(12)
Accounts payable to affiliates	(5)		(4)
Unbilled revenues	19		11
Fuel, materials and supplies	28		27
Regulatory assets and liabilities, net	(10)		(2)
Taxes payable	4		2
Accrued interest	18		18
Other	(17)		(10)
Other operating activities
Defined benefit plans - funding	(1)		(4)
Expenditures for asset retirement obligations	(6)		(4)
Other assets	—		(1)
Other liabilities	4		1
Net cash provided by operating activities	181		171
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(111)		(117)
Net cash used in investing activities	(111)		(117)
Cash Flows from Financing Activities
Net increase in notes payable with affiliates	—		21
Net increase (decrease) in short-term debt	31		(79)
Retirement of commercial paper	(41)		—
Payment of common stock dividends to parent	(60)		(29)
Contributions from parent	—		25
Net cash used in financing activities	(70)		(62)
Net Increase (Decrease) in Cash and Cash Equivalents	—		(8)
Cash and Cash Equivalents at Beginning of Period	7		15
Cash and Cash Equivalents at End of Period	$	7	$	7
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at March 31,	$	46	$	39

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

23

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	7	$	7
Accounts receivable (less reserve: 2021, $2; 2020, $2)
Customer	129		127
Other	25		35
Unbilled revenues (less reserve: 2021, $1; 2020, $1)	60		79
Accounts receivable from affiliates	19		16
Fuel, materials and supplies	91		119
Prepayments	13		14
Regulatory assets	36		23
Other current assets	1		1
Total Current Assets	381		421
Property, Plant and Equipment
Regulated utility plant	6,805		6,735
Less: accumulated depreciation - regulated utility plant	1,056		1,020
Regulated utility plant, net	5,749		5,715
Construction work in progress	319		320
Property, Plant and Equipment, net	6,068		6,035
Other Noncurrent Assets
Regulatory assets	339		351
Goodwill	389		389
Other intangibles	34		35
Other noncurrent assets	117		114
Total Other Noncurrent Assets	879		889
Total Assets	$	7,328	$	7,345

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

24

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Liabilities and Equity
Current Liabilities
Short-term debt	$	252	$	262
Long-term debt due within one year	94		292
Accounts payable	137		153
Accounts payable to affiliates	27		31
Customer deposits	31		32
Taxes	36		32
Price risk management liabilities	1		2
Regulatory liabilities	3		—
Interest	33		15
Asset retirement obligations	14		10
Other current liabilities	33		50
Total Current Liabilities	661		879
Long-term Debt	1,913		1,715
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	719		716
Investment tax credits	33		33
Price risk management liabilities	16		21
Asset retirement obligations	48		57
Regulatory liabilities	881		882
Other deferred credits and noncurrent liabilities	94		94
Total Deferred Credits and Other Noncurrent Liabilities	1,791		1,803
Commitments and Contingent Liabilities (Notes 7 and 11)
Stockholder's Equity
Common stock - no par value (a)	424		424
Additional paid-in capital	1,923		1,923
Earnings reinvested	616		601
Total Equity	2,963		2,948
Total Liabilities and Equity	$	7,328	$	7,345

(a)75,000 shares authorized; 21,294 shares issued and outstanding at March 31, 2021 and December 31, 2020.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

25

CONDENSED STATEMENTS OF EQUITY

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
December 31, 2020	21,294	$	424	$	1,923	$	601	$	2,948
Net income						75		75
Cash dividends declared on common stock						(60)		(60)
March 31, 2021	21,294	$	424	$	1,923	$	616	$	2,963
December 31, 2019	21,294	$	424	$	1,820	$	518	$	2,762
Net income						73		73
Capital contributions from parent				25				25
Cash dividends declared on common stock						(29)		(29)
March 31, 2020	21,294	$	424	$	1,845	$	562	$	2,831

(a)Shares in thousands. All common shares of LG&E stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

26

THIS PAGE INTENTIONALLY LEFT BLANK.

27

CONDENSED STATEMENTS OF INCOME

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Operating Revenues
Retail and wholesale	$	464	$	432
Electric revenue from affiliate	5		—
Total Operating Revenues	469		432
Operating Expenses
Operation
Fuel	110		89
Energy purchases	5		5
Energy purchases from affiliate	7		14
Other operation and maintenance	115		104
Depreciation	89		84
Taxes, other than income	10		9
Total Operating Expenses	336		305
Operating Income	133		127
Other Income (Expense) - net	1		1
Interest Expense	27		28
Income Before Income Taxes	107		100
Income Taxes	21		20
Net Income (a)	$	86	$	80

(a)Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

28

CONDENSED STATEMENTS OF CASH FLOWS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income	$	86	$	80
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	89		84
Amortization	2		3
Deferred income taxes and investment tax credits	(2)		4
Change in current assets and current liabilities
Accounts receivable	2		6
Accounts receivable from affiliates	1		—
Accounts payable	(7)		(2)
Accounts payable to affiliates	2		(3)
Unbilled revenues	20		16
Fuel, materials and supplies	15		(3)
Regulatory assets and liabilities, net	—		(12)
Taxes payable	13		6
Accrued interest	25		25
Other	(17)		(4)
Other operating activities
Defined benefit plans - funding	—		(1)
Expenditures for asset retirement obligations	(9)		(11)
Other assets	—		3
Other liabilities	4		2
Net cash provided by operating activities	224		193
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(127)		(138)
Net increase in notes receivable with affiliates	—		(21)
Net cash used in investing activities	(127)		(159)
Cash Flows from Financing Activities
Net decrease in short-term debt	(23)		(6)
Retirement of commercial paper	(32)		—
Payment of common stock dividends to parent	(56)		(37)
Contributions from parent	—		37
Net cash used in financing activities	(111)		(6)
Net Increase (Decrease) in Cash and Cash Equivalents	(14)		28
Cash and Cash Equivalents at Beginning of Period	22		12
Cash and Cash Equivalents at End of Period	$	8	$	40
Supplemental Disclosure of Cash Flow Information
Significant non-cash transactions:
Accrued expenditures for property, plant and equipment at March 31,	$	40	$	39

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

29

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	8	$	22
Accounts receivable (less reserve: 2021, $1; 2020, $1)
Customer	153		156
Other	25		30
Unbilled revenues (less reserve: 2021, $1; 2020, $1)	77		97
Accounts receivable from affiliates	—		1
Fuel, materials and supplies	109		123
Prepayments	13		15
Regulatory assets	38		36
Other current assets	—		1
Total Current Assets	423		481
Property, Plant and Equipment
Regulated utility plant	8,886		8,808
Less: accumulated depreciation - regulated utility plant	1,753		1,690
Regulated utility plant, net	7,133		7,118
Construction work in progress	350		321
Property, Plant and Equipment, net	7,483		7,439
Other Noncurrent Assets
Regulatory assets	369		370
Goodwill	607		607
Other intangibles	25		26
Other noncurrent assets	153		149
Total Other Noncurrent Assets	1,154		1,152
Total Assets	$	9,060	$	9,072

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

30

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	March 31, 2021		December 31, 2020
Liabilities and Equity
Current Liabilities
Short-term debt	$	148	$	203
Long-term debt due within one year	132		132
Accounts payable	109		121
Accounts payable to affiliates	46		43
Customer deposits	33		32
Taxes	42		29
Regulatory liabilities	13		11
Interest	44		19
Asset retirement obligations	27		40
Other current liabilities	40		59
Total Current Liabilities	634		689
Long-term Debt	2,486		2,486
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	839		835
Investment tax credits	88		88
Asset retirement obligations	82		75
Regulatory liabilities	1,072		1,070
Other deferred credits and noncurrent liabilities	47		47
Total Deferred Credits and Other Noncurrent Liabilities	2,128		2,115
Commitments and Contingent Liabilities (Notes 7 and 11)
Stockholder's Equity
Common stock - no par value (a)	308		308
Additional paid-in capital	2,857		2,857
Earnings reinvested	647		617
Total Equity	3,812		3,782
Total Liabilities and Equity	$	9,060	$	9,072

(a)80,000 shares authorized; 37,818 shares issued and outstanding at March 31, 2021 and December 31, 2020.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

31

CONDENSED STATEMENTS OF EQUITY

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested		Total
December 31, 2020	37,818	$	308	$	2,857	$	617	$	3,782
Net income						86		86
Cash dividends declared on common stock						(56)		(56)
March 31, 2021	37,818	$	308	$	2,857	$	647	$	3,812
December 31, 2019	37,818	$	308	$	2,729	$	537	$	3,574
Net income						80		80
Capital contributions from parent				37				37
Cash dividends declared on common stock						(37)		(37)
March 31, 2020	37,818	$	308	$	2,766	$	580	$	3,654

(a)Shares in thousands. All common shares of KU stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

32

Combined Notes to Condensed Financial Statements (Unaudited)

Index to Combined Notes to Condensed Financial Statements

The notes to the condensed financial statements that follow are a combined presentation. The following list indicates the Registrants to which the notes apply:

	Registrant
	PPL	PPL Electric	LKE	LG&E	KU
1. Interim Financial Statements	x	x	x	x	x
2. Summary of Significant Accounting Policies	x	x	x	x	x
3. Segment and Related Information	x	x	x	x	x
4. Revenue from Contracts with Customers	x	x	x	x	x
5. Earnings Per Share	x
6. Income Taxes	x	x	x	x	x
7. Utility Rate Regulation	x	x	x	x	x
8. Financing Activities	x	x	x	x	x
9. Acquisitions, Development and Divestitures	x
10. Defined Benefits	x	x	x	x	x
11. Commitments and Contingencies	x	x	x	x	x
12. Related Party Transactions		x	x	x	x
13. Other Income (Expense) - net	x
14. Fair Value Measurements	x	x	x	x	x
15. Derivative Instruments and Hedging Activities	x	x	x	x	x
16. Asset Retirement Obligations	x		x	x	x
17. Accumulated Other Comprehensive Income (Loss)	x

1. Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2020 is derived from that Registrant's 2020 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2020 Form 10-K. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

(PPL)

On March 17, 2021, PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business, which substantially represents PPL’s U.K. Regulated segment, to a subsidiary of National Grid plc. The results of operations of the U.K. utility business have been classified as Discontinued Operations on PPL's Statements of Income. The assets and liabilities of the U.K. utility business have been classified as assets and liabilities held for sale on PPL's Balance Sheets. PPL has elected

33

to separately report the cash flows of continuing and discontinued operations on the Statements of Cash Flows. Unless otherwise noted, the notes to these financial statements exclude amounts related to discontinued operations and assets and liabilities held for sale for all periods presented. See Note 9 for additional information.

2. Summary of Significant Accounting Policies

(All Registrants)

The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2020 Form 10-K and should be read in conjunction with those disclosures.

Restricted Cash and Cash Equivalents (PPL)

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:

	PPL
	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	421	$	442
Restricted cash - current (a)	1		1
Total Cash, Cash Equivalents and Restricted Cash	$	422	$	443

(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets."

Current Expected Credit Losses

(All Registrants)

The following table shows changes in the allowance for credit losses for the three months ended March 31, 2021:

	Balance at Beginning of Period		Charged to Income		Deductions (a)		Balance at End of Period
PPL
Accounts Receivable - Customer and Unbilled Revenue	$	44	$	2	$	1	$	45
Other (b)	28		—		—		28
PPL Electric
Accounts Receivable - Customer and Unbilled Revenue	$	39	$	1	$	—	$	40
Other	1		—		—		1
LKE
Accounts Receivable - Customer and Unbilled Revenue	$	5	$	1	$	1	$	5
Other (b)	27		—		—		27
LG&E
Accounts Receivable - Customer and Unbilled Revenue	$	3	$	—	$	—	$	3
KU
Accounts Receivable - Customer and Unbilled Revenue	$	2	$	1	$	1	$	2

(a)Primarily related to uncollectible accounts receivable written off.

(b)Primarily related to receivables at WKE, which are fully reserved.

34

Income Taxes

The TCJA included new provisions requiring that certain income, referred to as global intangible low-tax income (GILTI), earned by certain foreign subsidiaries must be included in the gross income of their U.S. shareholder. Accounting guidance allows a policy election regarding the timing of inclusion of GILTI in an entity’s financial statements. The election may be either to record deferred taxes for expected GILTI in future periods or record such taxes as a current-period expense when incurred. PPL has elected to record the tax effect of expected GILTI inclusions and thus, records deferred taxes relating to such inclusions.

In light of the anticipated sale of PPL's U.K. utility business and the associated classification of that business as assets held for sale, indefinite reinvestment is no longer relevant. As such, PPL expects to realize the outside book-tax basis difference in those assets in the foreseeable future. Accordingly, a deferred tax liability is recorded reflecting the expected tax cost associated with the realization of that basis difference.

See Note 6 for additional discussion regarding income taxes, including the impact of the TCJA.

3. Segment and Related Information

(PPL)

See Note 2 in PPL's 2020 Form 10-K for a discussion of reportable segments and related information.

On March 17, 2021, PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business, which substantially represents PPL's U.K. Regulated segment. As a result of this strategic shift in the operations of the business, PPL will no longer provide segment information for the U.K. Regulated segment. See Note 9 for additional information.

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are as follows:

	Three Months
	2021		2020
Operating Revenues from external customers
Kentucky Regulated	$	885	$	825
Pennsylvania Regulated	605		608
Corporate and Other	8		7
Total	$	1,498	$	1,440
Net Income
Kentucky Regulated (a)	$	146	$	127
Pennsylvania Regulated (a)	113		118
Corporate and Other (a)	(56)		(41)
Discontinued Operations (b)	(2,043)		350
Total	$	(1,840)	$	554

(a)For the period ended March 31, 2020, corporate level financing costs of $8 million, net of $2 million of income taxes, and an immaterial amount were allocated to the Kentucky Regulated and Pennsylvania Regulated segments. Beginning in 2021, corporate level financing costs will no longer be allocated to the reportable segments and are being reported in Corporate and Other.

(b)Includes unrealized gains and losses from hedging foreign currency economic activity. See Note 9 for additional information.

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	March 31, 2021		December 31, 2020
Assets
Kentucky Regulated	$	15,904	$	15,943
Pennsylvania Regulated	12,585		12,347
Corporate and Other (a)	867		843
Assets Held for Sale (b)	18,425		18,983
Total	$	47,781	$	48,116

35

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill, the elimination of inter-segment transactions as well as the assets of Safari Energy.

(b)See Note 9 for additional information.

(PPL Electric, LKE, LG&E and KU)

PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. LKE, LG&E and KU are individually single operating and reportable segments.

4. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in PPL's 2020 Form 10-K for a discussion of the principal activities from which the Registrants and PPL’s segments generate their revenues.

The following tables reconcile "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,498	$	605	$	885	$	428	$	469
Revenues derived from:
Alternative revenue programs (b)	24		22		2		—		2
Other (c)	(6)		—		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,440	$	608	$	825	$	407	$	432
Revenues derived from:
Alternative revenue programs (b)	(3)		—		(3)		(3)		—
Other (c)	(8)		(2)		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)PPL Electric and LKE represent revenues from external customers reported by the Pennsylvania Regulated and Kentucky Regulated segments. See Note 3 for additional information.

(b)Alternative revenue programs include the transmission formula rate for PPL Electric, the ECR and DSM programs for LG&E and KU, the GLT program for LG&E, and the generation formula rate for KU. For PPL Electric, the three months ended March 31, 2021 includes a $27 million reserve recorded as a result of a challenge to the transmission formula rate return on equity. See Note 7 for further information. This line item shows the over/under collection of these rate mechanisms with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts.

(c)Represents additional revenues outside the scope of revenues from contracts with customers, such as lease and other miscellaneous revenues.

36

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	774	$	361	$	413	$	205	$	208
Commercial	313		82		231		121		110
Industrial	152		12		140		46		94
Other (a)	91		12		71		34		37
Wholesale - municipality	6		—		6		—		6
Wholesale - other (b)	20		—		20		19		13
Transmission	160		160		—		—		—
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	714	$	344	$	370	$	187	$	183
Commercial	312		81		231		124		107
Industrial	144		8		136		45		91
Other (a)	87		14		66		28		38
Wholesale - municipality	5		—		5		—		5
Wholesale - other (b)	8		—		8		17		5
Transmission	159		159		—		—		—
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses.

(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at LKE.

As discussed in Note 2 in PPL's 2020 Form 10-K, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above.

Contract receivables from customers are primarily included in "Accounts receivable - Customer" and "Unbilled revenues" on the Balance Sheets.

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended March 31.

	Three Months
	2021		2020
PPL	$	2	$	6
PPL Electric	1		4
LKE	1		2
LG&E	—		1
KU	1		1

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LKE		LG&E		KU
Contract liabilities at December 31, 2020	$	40	$	23	$	11	$	5	$	6
Contract liabilities at March 31, 2021	33		16		10		5		5
Revenue recognized during the three months ended March 31, 2021 that was included in the contract liability balance at December 31, 2020	21		9		11		5		6
Contract liabilities at December 31, 2019	$	37	$	21	$	9	$	5	$	4
Contract liabilities at March 31, 2020	34		15		14		10		4
Revenue recognized during the three months ended March 31, 2020 that was included in the contract liability balance at December 31, 2019	19		8		9		5		4

37

Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are recognized as revenue ratably over the billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

At March 31, 2021, PPL had $47 million of performance obligations attributable to Corporate and Other that have not been satisfied. Of this amount, PPL expects to recognize approximately $38 million within the next 12 months.

5. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive share-based payment awards were converted to common shares as calculated using the Two-Class Method or Treasury Stock Method.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended March 31 used in the EPS calculation are:

	Three Months
	2021		2020
Income (Numerator)
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	203	$	204
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	(2,043)	$	350
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	(1,840)	$	554
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	769,159		767,948
Add: Dilutive share-based payment awards	1,551		790
Weighted-average shares - Diluted EPS	770,710		768,738
Basic and Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.26	$	0.27
Income (loss) from discontinued operations (net of income taxes)	(2.65)		0.45
Net Income (Loss) available to PPL common shareowners	$	(2.39)	$	0.72

For the periods ended March 31, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months
	2021	2020
Stock-based compensation plans	520	598
DRIP	—	434

For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months
	2021	2020
Stock-based compensation awards	233	250

38

6. Income Taxes

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(PPL)
	Three Months
	2021		2020
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 21%	$	55	$	56
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Valuation allowance adjustments	8		6
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(12)		(11)
Other	(2)		(1)
Total increase (decrease)	4		5
Total income tax expense (benefit)	$	59	$	61

(PPL Electric)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	32	$	33
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		—
Total increase (decrease)	5		8
Total income tax expense (benefit)	$	37	$	41

(LKE)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	37	$	35
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	7		7
Valuation allowance adjustments	(4)		—
Amortization of excess deferred federal and state income taxes	(7)		(7)
Other	(3)		(1)
Total increase (decrease)	(7)		(1)
Total income tax expense (benefit)	$	30	$	34

(LG&E)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	20	$	19
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		(1)
Total increase (decrease)	(1)		—
Total income tax expense (benefit)	$	19	$	19

39

(KU)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	22	$	21
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(4)		(4)
Other	(1)		(1)
Total increase (decrease)	(1)		(1)
Total income tax expense (benefit)	$	21	$	20

Other

TCJA Regulatory Update (All Registrants)

In July 2020, the IRS issued final and new proposed regulations relating to the limitation on interest deductibility. The final regulations do not apply to the Registrants until the 2021 tax year. The new proposed regulations were finalized on January 5, 2021 and will apply to the Registrants in the 2022 tax year. The Registrants have evaluated the final regulations issued in 2021 and concluded that neither the 2020 or 2021 regulations should have a material impact on the Registrants’ financial condition or results of operations.

7. Utility Rate Regulation

(All Registrants)

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

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	—	$	—
Gas supply clause	8		4		—		—
Smart meter rider	21		17		21		17
Transmission formula rate	20		15		20		15
Storm costs	5		7		5		7
Other	12		10		1		1
Total current regulatory assets	$	121	$	99	$	47	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	556	$	570	$	282	$	290
Storm costs	14		17		—		—
Unamortized loss on debt	29		30		7		8
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	74		75		—		—
Accumulated cost of removal of utility plant	234		240		234		240
AROs	304		300		—		—
Other	4		7		2		3
Total noncurrent regulatory assets	$	1,233	$	1,262	$	525	$	541

40

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	18	$	21	$	18	$	21
Transmission service charge	27		1		27		1
Environmental cost recovery	6		4		—		—
Universal service rider	16		22		16		22
Fuel adjustment clause	5		5		—		—
TCJA customer refund	15		11		15		11
Storm damage expense rider	5		6		5		6
Act 129 compliance rider	6		7		6		7
Challenge to transmission formula rate return on equity reserve (a)	27		—		27		—
Other	5		2		—		—
Total current regulatory liabilities	$	130	$	79	$	114	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	—	$	—
Power purchase agreement - OVEC	41		43		—		—
Net deferred taxes	1,673		1,690		552		560
Defined benefit plans	64		60		21		18
Terminated interest rate swaps	65		66		—		—
Other	18		18		—		—
Total noncurrent regulatory liabilities	$	2,526	$	2,530	$	573	$	578

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	20	$	12	$	35	$	34
Gas supply clause	8		4		8		4		—		—
Other	11		9		8		7		3		2
Total current regulatory assets	$	74	$	59	$	36	$	23	$	38	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	274	$	280	$	170	$	174	$	104	$	106
Storm costs	14		17		9		11		5		6
Unamortized loss on debt	22		22		13		13		9		9
Interest rate swaps	18		23		18		23		—		—
Terminated interest rate swaps	74		75		43		44		31		31
AROs	304		300		85		85		219		215
Other	2		4		1		1		1		3
Total noncurrent regulatory assets	$	708	$	721	$	339	$	351	$	369	$	370

41

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	6	$	4	$	—	$	—	$	6	$	4
Fuel adjustment clause	5		5		1		—		4		5
Other	5		2		2		—		3		2
Total current regulatory liabilities	$	16	$	11	$	3	$	—	$	13	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	278	$	274	$	387	$	379
Power purchase agreement - OVEC	41		43		28		30		13		13
Net deferred taxes	1,121		1,130		525		528		596		602
Defined benefit plans	43		42		1		—		42		42
Terminated interest rate swaps	65		66		33		33		32		33
Other	18		18		16		17		2		1
Total noncurrent regulatory liabilities	$	1,953	$	1,952	$	881	$	882	$	1,072	$	1,070

(a)See “Regulatory Matters - Federal Matters - Challenge to PPL Electric Transmission Formula Rate Return on Equity” below for further information.

Regulatory Matters

Kentucky Activities (PPL, LKE, LG&E and KU)

Rate Case Proceedings

On November 25, 2020, LG&E and KU filed requests with the KPSC for an increase in annual electricity and gas revenues of approximately $331 million ($131 million and $170 million in electricity revenues at LG&E and KU and $30 million in gas revenues at LG&E). The revenue increases would be an increase of 11.6% and 10.4% in electricity revenues at LG&E and KU, and an increase of 8.3% in gas revenues at LG&E. In recognition of the economic impact of COVID-19, LG&E and KU requested approval of a one-year billing credit which will credit customers approximately $53 million ($41 million at LG&E and $12 million at KU). The billing credit represents the return to customers of certain regulatory liabilities on LG&E’s and KU’s Balance Sheets and serves to partially mitigate the rate increases during the first year in which the new rates are in effect.

LG&E’s and KU’s applications also included a request for a CPCN to deploy Advanced Metering Infrastructure across LG&E’s and KU’s service territories in Kentucky.

The applications were based on a forecasted test year of July 1, 2021 through June 30, 2022 and requested an authorized return on equity of 10.0%.

On April 19, 2021, LG&E and KU entered into an agreement with all intervening parties to the proceedings resolving all matters in their applications, with the explicit exception of LG&E's and KU's net metering proposals. The agreement proposes increases in annual revenues of $217 million ($77 million and $116 million in electricity revenues at LG&E and KU and $24 million in gas revenues at LG&E) based on an authorized return on equity of 9.55%. The proposal includes an authorized 9.35% return on equity for the ECR and GLT mechanisms. The agreement does not modify the requested one-year billing credit. The agreement proposes that the KPSC should grant LG&E’s and KU’s request for a CPCN to deploy Advanced Metering Infrastructure and proposes the establishment of a Retired Asset Recovery rider (RAR) to provide for recovery of and return on the remaining investment in certain electric generating units upon their retirement over a ten-year period following retirement. In respect of the RAR rider, the agreement proposes that LG&E and KU will continue to use currently approved depreciation rates for Mill Creek units 1 and 2 and Brown Unit 3. The agreement also proposes a four-year “stay-out” commitment from LG&E and KU to refrain from effective base rate increases before July 1, 2025, subject to certain exceptions.

A hearing on the agreement, and the underlying proceedings, was completed on April 28, 2021. Subject to KPSC approval, the rates, decreased by the amount of the billing credit, are expected to become effective July 1, 2021. An Order on the net metering issues is expected by the end of September 2021. PPL, LKE, LG&E and KU cannot predict the outcome of these proceedings.

42

Pennsylvania Activities (PPL and PPL Electric)

Act 129

Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet, by specified dates, specified goals for reduction in customer electricity usage and peak demand. EDCs not meeting the requirements of Act 129 are subject to significant penalties. PPL Electric filed with the PUC its Act 129 Phase IV Energy Efficiency and Conservation Plan (Phase IV Act 129 Plan) on November 30, 2020, for the five-year period starting June 1, 2021 and ending on May 31, 2026. PPL Electric's Phase IV Act 129 Plan was approved by the PUC at its March 25, 2021, public meeting.

Federal Matters

Challenge to PPL Electric Transmission Formula Rate Return on Equity (PPL and PPL Electric)

On May 21, 2020, PP&L Industrial Customer Alliance (PPLICA) filed a complaint with the FERC alleging that PPL Electric's base return on equity (ROE) of 11.18% used to determine PPL Electric's formula transmission rate is unjust and unreasonable, and proposing an alternative ROE of 8.0% based on its interpretation of FERC Opinion No. 569. However, also on May 21, 2020, the FERC issued Opinion No. 569-A in response to numerous requests for rehearing of Opinion No. 569, which revised the method for analyzing base ROE. On June 10, 2020, PPLICA filed a Motion to Supplement the May 21, 2020 complaint in which PPLICA continued to allege that PPL Electric’s base ROE is unjust and unreasonable, but revised its analysis of PPL Electric's base ROE to reflect the guidance provided in Opinion No. 569-A. The amended complaint proposed an updated alternative ROE of 8.5% and also requested that the FERC preserve the original refund effective date as established by the filing of the original complaint on May 21, 2020. Several parties have filed motions to intervene, including one party who filed Comments in Support of the original complaint.

On July 10, 2020, PPL Electric filed its Answer and supporting Testimony to the PPLICA filings arguing that the FERC should deny the original and amended complaints as they are without merit and fail to demonstrate the existing base ROE is unjust and unreasonable. In addition, PPL Electric contended any refund effective date should be set for no earlier than June 10, 2020 and PPLICA's proposed replacement ROE should be rejected.

On October 15, 2020, the FERC issued an order on the PPLICA complaints which established hearing and settlement procedures, set a refund effective date of May 21, 2020 and granted the motions to intervene. On November 16, 2020, PPL Electric filed a request for rehearing of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date. On December 17, 2020, the FERC issued a Notice of Denial of Rehearing by Operation of Law and Providing for Further Consideration. On February 16 and April 19, 2021, PPL Electric filed Petitions for Review with the United States Court of Appeals for the District of Columbia Circuit of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date.

PPL Electric continues to believe its ROE is just and reasonable and that it has meritorious defenses against the original and amended complaints. Settlement negotiations are currently proceeding, but there can be no assurance that they will result in a final settlement. Although PPL Electric cannot predict the outcome of this matter, in the first quarter of 2021, PPL Electric recorded a revenue reserve of $19 million after-tax. Of this amount, $13 million relates to the period from May 21, 2020 to December 31, 2020. Additional revenue earned from May 21, 2020 through the ultimate resolution of this matter may be subject to refund. A change of 50 basis points to the base ROE would impact PPL Electric's net income by approximately $12 million on an annual basis.

FERC Transmission Rate Filing (PPL, LKE, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. Due to the development of robust, accessible energy markets over time, LG&E and KU believe the mitigation commitments are no longer relevant or appropriate. In March 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E

43

and KU of a transition mechanism for certain existing power supply arrangements, subject to FERC review and approval. In July 2019, LG&E and KU proposed their transition mechanism to the FERC and in September 2019, the FERC rejected the proposed transition mechanism. In September 2020, the FERC issued orders in the rehearing process that modified various aspects of the September 2019 orders which had approved future termination of the credits, including adjusting which customer arrangements are covered by the transition mechanism and respective future periods or dates for termination of credits. In November 2020, the FERC denied the parties' rehearing requests. In November 2020 and January 2021, LG&E and KU and other parties appealed the September 2020 and November 2020 orders at the D.C. Circuit Court of Appeals. The appellate proceedings are continuing, and also include certain additional prior pending petitions for review relating to the matter. On January 15, 2021, LG&E and KU made a filing seeking FERC acceptance of a new proposal for a transition mechanism. On March 16, 2021, the FERC accepted the filed transition mechanism agreements effective on March 17, 2021 but subject to refund, and established hearing and settlement procedures. LG&E and KU are also required to make certain compliance filings consistent with the March 16, 2021 order. LG&E and KU cannot predict the outcome of the respective appellate and FERC proceedings. LG&E and KU currently receive recovery of the waivers and credits provided through other rate mechanisms and such rate recovery would be anticipated to be adjusted consistent with potential changes or terminations of the waivers and credits, as such become effective.

Other

Purchase of Receivables Program (PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three months ended March 31, 2021, and 2020, PPL Electric purchased $324 million and $311 million of accounts receivable from alternative suppliers.

8. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and act as a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Capital Funding’s term loan agreement due March 2022, which are reflected in “Long-term debt due within one year” at March 31, 2021 and “Long-term debt” at December 31, 2020. The following credit facilities were in place at:

44

	March 31, 2021									December 31, 2020
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
PPL Capital Funding
Syndicated Credit Facility	Jan. 2024	$	1,450	$	—	$	942	$	508	$	—	$	402
Term Loan Credit Facility	Mar. 2022	100		100		—		—		100		—
Bilateral Credit Facility	Mar. 2022	50		—		—		50		—		—
Bilateral Credit Facility	Mar. 2022	50		—		15		35		—		15
Term Loan Credit Facility	Mar. 2021	—		—		—		—		100		—
Term Loan Credit Facility	Mar. 2021	—		—		—		—		200		—
Total PPL Capital Funding Credit Facilities		$	1,650	$	100	$	957	$	593	$	400	$	417
PPL Electric
Syndicated Credit Facility	Jan. 2024	$	650	$	—	$	206	$	444	$	—	$	1
LG&E
Syndicated Credit Facility	Jan. 2024	$	500	$	—	$	252	$	248	$	—	$	262
KU
Syndicated Credit Facility	Jan. 2024	$	400	$	—	$	148	$	252	$	—	$	203

(All Registrants)

PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:

	March 31, 2021							December 31, 2020
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.22%	$	1,500	$	942	$	558	0.25%	$	402
PPL Electric	0.20%	650		205		445			—
LG&E (a)	0.22%	425		252		173		0.28%	262
KU	0.21%	350		148		202		0.28%	203
Total		$	2,925	$	1,547	$	1,378		$	867

(a)In March 2021, the capacity for the LG&E commercial paper program was increased from $350 million to $425 million.

(PPL Electric, LKE, LG&E, and KU)

See Note 12 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In April 2021, PPL Capital Funding repaid the $100 million term loan credit facility expiring in March 2022.

45

(PPL, LKE and LG&E)

In April 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $128 million of Pollution Control Revenue Bonds, 2003 Series A due 2033 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 2.00% through their maturity date of October 1, 2033.

In May 2021, the County of Trimble, Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

In May 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

(PPL)

Equity Securities

ATM Program

In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the three months ended March 31, 2021. The ATM program expired in February 2021.

Distributions

In February 2021, PPL declared a quarterly common stock dividend, payable April 1, 2021, of 41.5 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.

46

9. Acquisitions, Development and Divestitures

(PPL)

Discontinued Operations

Share Purchase Agreement to Sell U.K. Utility Business

On March 17, 2021, PPL WPD Limited (WPD Limited) entered into a share purchase agreement (WPD SPA) to sell PPL's U.K. utility business to National Grid Holdings One plc (National Grid U.K.), a subsidiary of National Grid plc. Pursuant to the WPD SPA, National Grid U.K. will acquire 100% of the issued share capital of PPL WPD Investments Limited (WPD Investments) for £7.8 billion in cash. WPD Limited will also receive an additional amount of £548,000 for each day during the period from January 1, 2021 to the closing date if the dividends usually declared by WPD Investments to WPD Limited are not paid for that period.

The completion of the transaction, which is currently expected to occur by the end of July 2021, is subject to approval by National Grid plc's shareholders and receipt of regulatory approvals from the Financial Conduct Authority (the FCA), the Guernsey Financial Services Commission and, if applicable at the time of closing, from the U.K. Secretary of State in connection with the National Security and Investment Bill 2020. On April 22, 2021, National Grid plc’s shareholders approved the transaction pursuant to the listing rules of the FCA. On May 4, 2021, the Guernsey Financial Services Commission approved the transaction. The approval of the FCA is the sole remaining approval before the transaction can be consummated.

WPD Limited and National Grid U.K. have each made customary representations and warranties in the WPD SPA, as well as certain customary covenants by WPD Limited to conduct the businesses that are subject to the WPD SPA in the ordinary course between the execution of the WPD SPA and the closing of the sale. National Grid U.K., at its expense, has purchased warranty and indemnity insurance. The consummation of the transaction is not subject to a financing condition. PPL will not have any significant involvement with the U.K. utility business after completion of the sale.

Loss on Sale

In connection with entering into the WPD SPA, the U.K. utility business has met the accounting criteria to be classified as assets and liabilities held for sale and discontinued operations beginning with the first quarter of 2021. Accordingly, PPL’s investment in the U.K. utility business has been reported at its estimated fair value, less costs to sell, resulting in an estimated pre-tax loss on sale of $1.6 billion as of March 31, 2021, as determined below.

	Three Months
	2021
Sales proceeds (a)	$	10,806
Costs to sell (b)	48
Carrying value (c)	12,405
Loss on Sale (d)	(1,647)

(a)Amount represents a contractual selling price of £7.8 billion (a Level 1 fair value measurement) as well as accrued additional consideration of approximately £49 million converted at the March 31, 2021 spot rate of $1.38 per GBP.

(b)Estimated amounts incurred for bank advisory, legal and accounting fees to facilitate the transaction.

(c)The measurement of PPL’s carrying value of the U.K. utility business includes the realization of accumulated other comprehensive losses of $3.7 billion, which arose primarily from currency translation adjustments and defined benefit plans associated with the U.K. utility business.

(d)This loss has been recorded as a reduction to goodwill.

Summarized Results of Discontinued Operations

The operations of the U.K. utility business are included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income. Following are the components of discontinued operations in the Statements of Income for the periods ended March 31:

47

	Three Months
	2021		2020
Operating Revenues	$	634	$	614
Operating Expenses	252		222
Other Income (Expense) - net	66		130
Interest Expense (a)	93		93
Income before income taxes	355		429
Loss on sale	(1,647)		—
Income tax expense (b)	751		79
Income (loss) from Discontinued Operations (net of income taxes)	$	(2,043)	$	350

(a)No interest from corporate level debt was allocated to discontinued operations.

(b)2021 primarily includes a federal tax expense of $689 million for the recognition of the tax cost associated with the realization of the book-tax outside basis difference in PPL's investment in the U.K. utility business and foreign tax expense of $73 million on current year operations.

Summarized Assets and Liabilities Held for Sale

The assets and liabilities of PPL's U.K. utility business at March 31, 2021 and December 31, 2020 are included in "Current assets held for sale" and "Current liabilities held for sale" on PPL's Balance Sheets. The following major classes of assets and liabilities were reclassified on PPL's Balance Sheet as of March 31, 2021 and December 31, 2020:

	Held for Sale at March 31, 2021		Held for Sale at December 31, 2020
Cash and cash equivalents	$	152	$	266
Accounts receivable and unbilled revenues	459		389
Price risk management assets	62		146
Property, plant and equipment, net (a)	15,236		14,392
Goodwill (b)	1,029		2,558
Other intangibles	434		413
Pension benefit asset	911		682
Other assets	142		137
Total Assets	$	18,425	$	18,983
Short-term debt and long-term debt due within one year	$	812	$	994
Accounts payable	199		220
Customer deposits	240		217
Accrued interest	178		190
Long-term debt	8,297		7,938
Total deferred income taxes	1,123		1,032
Price risk management liabilities	180		137
Other deferred credits and liabilities	347		295
Total Liabilities	$	11,376	$	11,023
Net assets (c)	$	7,049	$	7,960

(a)Depreciation of fixed assets ceased upon classification as held for sale.

(b)The change in Goodwill is due to the loss on sale of $1,647 million and a gain on foreign currency translation of $118 million.

(c)The net assets and liabilities held for sale exclude $3.7 billion of accumulated other comprehensive losses related to the U.K. utility business that are required to be included in the carrying value of the loss on sale calculation presented above. Accumulated other comprehensive losses related to the U.K. utility business will be reported as a component of PPL’s equity until the sale of the U.K. utility business occurs.

48

Acquisitions

Share Purchase Agreement to Acquire The Narragansett Electric Company

On March 17, 2021, PPL and its subsidiary, PPL Energy Holdings, entered into a share purchase agreement (Narragansett SPA) with National Grid USA (National Grid U.S.), a subsidiary of National Grid plc to acquire 100% of the outstanding shares of common stock of The Narragansett Electric Company (Narragansett Electric) for approximately $3.8 billion in cash. On May 3, 2021, an Assignment and Assumption Agreement was entered into by PPL, PPL Energy Holdings, PPL Rhode Island Holdings and National Grid U.S. whereby certain interests of PPL Energy Holdings in the Narragansett SPA were assigned to and assumed by PPL Rhode Island Holdings. Pursuant to that Assignment and Assumption Agreement, PPL Rhode Island Holdings became the purchasing entity under the Narragansett SPA. The acquisition is expected to be funded with proceeds from the sale of the U.K. utility business. PPL has agreed to guarantee all obligations of PPL Energy Holdings and PPL Rhode Island Holdings under the Narragansett SPA and the related Assignment and Assumption Agreement.

The closing of the acquisition, which is currently expected to occur by March 2022, is subject to the prior closing of the sale of WPD Investments to National Grid U.K. and is also subject to the receipt of certain U.S. regulatory approvals, including, among others, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, receipt of the approvals, authorizations or waivers from the Rhode Island Division of Public Utilities and Carriers, the FERC and the Massachusetts Department of Public Utilities, as well as other customary conditions to closing, including the execution and delivery of certain related transaction documents. PPL Energy Holdings and PPL Rhode Island Holdings and National Grid U.S. have each made customary representations, warranties and covenants in the Narragansett SPA, including, among others, customary indemnification provisions and covenants by National Grid U.S. to conduct the Narragansett Electric business in the ordinary course between the execution of the Narragansett SPA and the closing of the acquisition. The consummation of the transaction is not subject to a financing condition.

In connection with the acquisition, National Grid U.S. and one or more of its subsidiaries and PPL Energy Holdings and/or one or more of its subsidiaries will enter into a transition services agreement, pursuant to which National Grid U.S. and/or one or more of its affiliates will agree to provide certain transition services to Narragansett Electric and its affiliates to facilitate the operation of Narragansett Electric following the consummation of the acquisition and the transition of operations to PPL, as agreed upon in the Narragansett SPA.

10. Defined Benefits

(PPL, LKE and LG&E)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE, and LG&E for the periods ended March 31:

	Pension Benefits
	Three Months
	U.S.				U.K. (a)
	2021		2020		2021		2020
PPL
Service cost	$	13	$	13	$	25	$	23
Interest cost	32		38		29		36
Expected return on plan assets	(61)		(60)		(177)		(158)
Amortization of:
Prior service cost	2		2		—		—
Actuarial loss	25		20		54		54
Net periodic defined benefit costs (credits)	$	11	$	13	$	(69)	$	(45)

(a)    U.K. amounts are reflected in discontinued operations. See Note 9 for additional information on the share purchase agreement to sell the U.K. utility business.

49

	Pension Benefits
	Three Months
	2021		2020
LKE
Service cost	$	6	$	5
Interest cost	14		16
Expected return on plan assets	(24)		(24)
Amortization of:
Prior service cost	2		2
Actuarial loss (a)	11		9
Net periodic defined benefit costs (credits)	$	9	$	8

(a)    As a result of treatment approved by the KPSC, the difference between actuarial loss calculated in accordance with LKE's accounting policy and actuarial loss calculated using a 15-year amortization period was $3 million for the three months ended March 31, 2021 and 2020.

.

	Other Postretirement Benefits
	Three Months
	2021		2020
PPL
Service cost	$	2	$	2
Interest cost	4		5
Expected return on plan assets	(5)		(5)
Net periodic defined benefit costs	$	1	$	2
LKE
Service cost	$	1	$	1
Interest cost	2		2
Expected return on plan assets	(2)		(2)
Net periodic defined benefit costs	$	1	$	1

(PPL Electric, LG&E and KU)

PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and LG&E and KU are allocated costs of defined benefit plans sponsored by LKE. LG&E and KU are also allocated costs of defined benefit plans from LKS for defined benefit plans sponsored by LKE. See Note 12 for additional information on costs allocated to LG&E and KU from LKS. These allocations are based on participation in those plans, which management believes are reasonable. For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

(All Registrants)

The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in "Other Income (Expense) - net" on the Statements of Income. See Note 13 for additional information.

50

11. Commitments and Contingencies

Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

Talen Litigation (PPL)

Background

In September 2013, one of PPL's former subsidiaries, PPL Montana entered into an agreement to sell its hydroelectric generating facilities. In June 2014, PPL and PPL Energy Supply, the parent company of PPL Montana, entered into various definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and ultimately combine it with Riverstone's competitive power generation businesses to form a stand-alone company named Talen Energy. In November 2014, after executing the spinoff agreements but prior to the closing of the spinoff transaction, PPL Montana closed the sale of its hydroelectric generating facilities. Subsequently, on June 1, 2015, the spinoff of PPL Energy Supply was completed. Following the spinoff transaction, PPL had no continuing ownership interest in or control of PPL Energy Supply. In connection with the spinoff transaction, PPL Montana became Talen Montana, LLC (Talen Montana), a subsidiary of Talen Energy. Talen Energy Marketing also became a subsidiary of Talen Energy as a result of the June 2015 spinoff of PPL Energy Supply. Talen Energy has owned and operated both Talen Montana and Talen Energy Marketing since the spinoff. At the time of the spinoff, affiliates of Riverstone acquired a 35% ownership interest in Talen Energy. Riverstone subsequently acquired the remaining interests in Talen Energy in a take private transaction in December 2016.

Talen Montana Retirement Plan and Talen Energy Marketing, LLC, Individually and on Behalf of All Others Similarly Situated v. PPL Corporation et al.

On October 29, 2018, Talen Montana Retirement Plan and Talen Energy Marketing filed a putative class action complaint on behalf of current and contingent creditors of Talen Montana who allegedly suffered harm or allegedly will suffer reasonably foreseeable harm as a result of a November 2014 distribution of proceeds from the sale of then-PPL Montana's hydroelectric generating facilities. The action was filed in the Sixteenth Judicial District of the State of Montana, Rosebud County, against PPL and certain of its affiliates and current and former officers and directors (Talen Putative Class Action). Plaintiff asserts claims for, among other things, fraudulent transfer, both actual and constructive; recovery against subsequent transferees; civil conspiracy; aiding and abetting tortious conduct; and unjust enrichment. Plaintiff is seeking avoidance of the purportedly fraudulent transfer, unspecified damages, including punitive damages, the imposition of a constructive trust, and other relief. In December 2018, PPL removed the Talen Putative Class Action from the Sixteenth Judicial District of the State of Montana to the United States District Court for the District of Montana, Billings Division (MT Federal Court). In January 2019, the plaintiff moved to remand the Talen Putative Class Action back to state court, and dismissed without prejudice all current and former PPL Corporation directors from the case. In September 2019, the MT Federal Court granted plaintiff's motion to remand the case back to state court. Although, the PPL defendants petitioned the Ninth Circuit Court of Appeals to grant an appeal of the remand decision, in November 2019, the Ninth Circuit Court of Appeals denied that request and in December 2019, Talen Montana Retirement Plan filed a Second Amended Complaint in the Sixteenth Judicial District of the State of Montana, Rosebud County, which removed Talen Energy Marketing as a plaintiff. In January 2020, PPL defendants filed a motion to dismiss the Second Amended Complaint or, in the alternative, to stay the proceedings pending the resolution of the below mentioned Delaware Action. The Court held a hearing on June 24, 2020 regarding the motions. On September 11, 2020, the Court granted PPL defendants' alternative Motion for a Stay of the proceedings.

PPL Corporation et al. vs. Riverstone Holdings LLC, Talen Energy Corporation et al.

On November 30, 2018, PPL, certain PPL affiliates, and certain current and former officers and directors (PPL plaintiffs) filed a complaint in the Court of Chancery of the State of Delaware seeking various forms of relief against Riverstone, Talen Energy and certain of their affiliates (Delaware Action), in response to and as part of the defense strategy for an action filed by Talen Montana, LLC (the Talen Direct Action, since dismissed) and the Talen Putative Class Action described above (together, the Montana Actions) originally filed in Montana state court in October 2018. In the complaint, the PPL plaintiffs ask the Delaware Court of Chancery for declaratory and injunctive relief. This includes a declaratory judgment that, under the separation

51

agreement governing the spinoff of PPL Energy Supply, all related claims that arise must be heard in Delaware; that the statute of limitations in Delaware and the spinoff agreement bar these claims at this time; that PPL is not liable for the claims in either the Talen Direct Action or the Talen Putative Class Action as PPL Montana was solvent at all relevant times; and that the separation agreement requires that Talen Energy indemnify PPL for all losses arising from the debts of Talen Montana, among other things. PPL's complaint also seeks damages against Riverstone for interfering with the separation agreement and against Riverstone affiliates for breach of the implied covenant of good faith and fair dealing. The complaint was subsequently amended on January 11, 2019 and March 20, 2019, to include, among other things, claims related to indemnification with respect to the Montana Actions, request a declaration that the Montana Actions are time-barred under the spinoff agreements, and allege additional facts to support the tortious interference claim. In April 2019, the defendants filed motions to dismiss the amended complaint. In July 2019, the Court heard oral arguments from the parties regarding the motions to dismiss, and in October 2019, the Delaware Court of Chancery issued an opinion sustaining all of the PPL plaintiffs' claims except for the claim for breach of implied covenant of good faith and fair dealing. As a result of the dismissal of the Talen Direct Action in December 2019, in January 2020, Talen Energy filed a new motion to dismiss five of the remaining eight claims in the amended complaint. The Court heard oral argument on the motion to dismiss on May 28, 2020, and on June 22, 2020, issued an opinion denying the motion in its entirety. Discovery is proceeding, and a trial has been scheduled for February 2022.

With respect to each of the Talen-related matters described above, PPL believes that the 2014 distribution of proceeds was made in compliance with all applicable laws and that PPL Montana was solvent at all relevant times. Additionally, the agreements entered into in connection with the spinoff, which PPL and affiliates of Talen Energy and Riverstone negotiated and executed prior to the 2014 distribution, directly address the treatment of the proceeds from the sale of PPL Montana's hydroelectric generating facilities; in those agreements, Talen Energy and Riverstone definitively agreed that PPL was entitled to retain the proceeds.

PPL believes that it has meritorious defenses to the claims made in the Talen Putative Class Action and intends to continue to vigorously defend against this action. The Talen Putative Class Action and the Delaware Action are both in early stages of litigation; at this time, PPL cannot predict the outcome of these matters or estimate the range of possible losses, if any, that PPL might incur as a result of the claims, although they could be material.

(PPL, LKE and LG&E)

Cane Run Environmental Claims

In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky (U.S. District Court) alleging violations of the Clean Air Act, RCRA, and common law claims of nuisance, trespass and negligence. In July 2014, the U.S. District Court dismissed the RCRA claims and all but one Clean Air Act claim, but declined to dismiss the common law tort claims. In February 2017, the U.S. District Court dismissed PPL as a defendant and dismissed the final federal claim against LG&E, and in April 2017, issued an Order declining to exercise supplemental jurisdiction on the state law claims dismissing the case in its entirety. In June 2017, the plaintiffs filed a class action complaint in Jefferson County, Kentucky Circuit Court, against LG&E alleging state law nuisance, negligence and trespass tort claims. The plaintiffs seek compensatory and punitive damages for alleged property damage due to purported plant emissions on behalf of a class of residents within one to three miles of the plant. On January 8, 2020, the Jefferson Circuit Court issued an order denying the plaintiffs’ request for class certification. On January 14, 2020, the plaintiffs filed a notice of appeal in the Kentucky Court of Appeals. On December 11, 2020, the Court of Appeals issued an order affirming the lower court’s denial of class certification. In December 2020, plaintiffs filed a petition for discretionary review with the Kentucky Supreme Court. On April 21, 2021, the Kentucky Supreme Court denied further review of the lower court order. The case will be remanded to the Jefferson Circuit Court for the claims of the three remaining petitioners to be heard on an individual basis. PPL, LKE and LG&E cannot predict the ultimate outcome of the remaining proceedings, but do not anticipate this matter will have a material impact on operations or financial condition.

(PPL, LKE and KU)

E.W. Brown Environmental Claims

In July 2017, the Kentucky Waterways Alliance and the Sierra Club filed a citizen suit complaint against KU in the U.S. District Court for the Eastern District of Kentucky (U.S. District Court) alleging discharges at the E.W. Brown plant in violation of the Clean Water Act and the plant's water discharge permit and alleging contamination that may present an imminent and substantial endangerment in violation of the RCRA. The plaintiffs' suit relates to prior notices of intent to file a citizen suit submitted in October and November 2015 and October 2016. These plaintiffs sought injunctive relief ordering KU

52

to take all actions necessary to comply with the Clean Water Act and RCRA, including ceasing the discharges in question, abating effects associated with prior discharges and eliminating the alleged imminent and substantial endangerment. These plaintiffs also sought assessment of civil penalties and an award of litigation costs and attorney fees. In December 2017, the U.S. District Court issued an Order dismissing the Clean Water Act and RCRA complaints against KU in their entirety. In January 2018, the plaintiffs appealed the dismissal Order to the U.S. Court of Appeals for the Sixth Circuit. In September 2018, the U.S. Court of Appeals for the Sixth Circuit issued its ruling affirming the lower court's decision to dismiss the Clean Water Act claims but reversing its dismissal of the RCRA claims against KU and remanding the latter to the U.S. District Court. In October 2018, KU filed a petition for rehearing to the U.S. Court of Appeals for the Sixth Circuit regarding the RCRA claims. In November 2018, the U.S. Court of Appeals for the Sixth Circuit denied KU's petition for rehearing regarding the RCRA claims. In January 2019, KU filed an answer to plaintiffs’ complaint in the U.S. District Court. Discovery is complete and the parties' motions for partial summary judgment are pending. In December 2020, the U.S. District Court delayed the trial scheduled for February 2, 2021 indefinitely due to pandemic considerations. PPL, LKE and KU cannot predict the outcome of these matters and an estimate or range of possible losses cannot be determined.

KU is undertaking extensive remedial measures at the E.W. Brown plant including closure of the former ash pond, implementation of a groundwater remedial action plan and performance of a corrective action plan including aquatic study of adjacent surface waters and risk assessment. The aquatic study and risk assessment are being undertaken pursuant to a 2017 agreed Order with the Kentucky Energy and Environment Cabinet (KEEC). KU conducted sampling of Herrington Lake in 2017 and 2018. In June 2019, KU submitted to the KEEC the required aquatic study and risk assessment, conducted by an independent third-party consultant, finding that discharges from the E.W. Brown plant have not had any significant impact on Herrington Lake and that the water in the lake is safe for recreational use and meets safe drinking water standards. However, until the KEEC assesses the study and issues any regulatory determinations, PPL, LKE and KU are unable to determine whether additional remedial measures will be required at the E.W. Brown plant.

Air

Sulfuric Acid Mist Emissions (PPL, LKE and LG&E)

In June 2016, the EPA issued a notice of violation under the Clean Air Act alleging that LG&E violated applicable rules relating to sulfuric acid mist emissions at its Mill Creek plant. The notice alleges failure to install proper controls, failure to operate the facility consistent with good air pollution control practice, and causing emissions exceeding applicable requirements or constituting a nuisance or endangerment. LG&E believes it has complied with applicable regulations during the relevant time period. On July 31, 2020, the U.S. Department of Justice and Louisville Metro Air Pollution Control District filed a complaint in the U.S. District Court for the Western District of Kentucky alleging violations specified in the EPA notice of violation and seeking civil penalties and injunctive relief. In October 2020, LG&E filed a motion to dismiss the complaint. In December 2020, the U.S. Department of Justice and the Louisville Metro Air Pollution Control District filed an amended complaint. In February 2021, LG&E filed a renewed motion to dismiss regarding the amended complaint. PPL, LKE and LG&E are unable to predict the outcome of this matter or the potential impact on operations of the Mill Creek plant, including increased capital or operating costs, and potential civil penalties or remedial measures, if any. An estimate or range of possible losses cannot be determined.

Water/Waste

(PPL, LKE, LG&E and KU)

ELGs

In 2015, the EPA finalized ELGs for wastewater discharge permits for new and existing steam electricity generating facilities. These guidelines require deployment of additional control technologies providing physical, chemical and biological treatment and mandate operational changes including "no discharge" requirements for certain wastewaters. The implementation date for individual generating stations was to be determined by the states on a case-by-case basis according to criteria provided by the EPA. Legal challenges to the final rule were consolidated before the U.S. Court of Appeals for the Fifth Circuit. In April 2017, the EPA announced that it would grant petitions for reconsideration of the rule. In September 2017, the EPA issued a rule to postpone the compliance date for certain requirements. On October 13, 2020, the EPA published final revisions to its best available technology standards for certain wastewaters and potential extensions to compliance dates. The rule is expected to be implemented by the states or applicable permitting authorities in the course of their normal permitting activities. LG&E and KU are currently implementing responsive compliance strategies and schedules. Certain aspects of these compliance plans and estimates relate to developments in state water quality standards, which are separate from the ELG rule or its implementation.

53

Certain costs are included in the Registrants' capital plans and expected to be recovered from customers through rate recovery mechanisms, but additional costs and recovery will depend on further regulatory developments at the state level.

CCRs

In 2015, the EPA issued a final rule governing management of CCRs which include fly ash, bottom ash and sulfur dioxide scrubber wastes. The CCR Rule imposes extensive new requirements for certain CCR impoundments and landfills, including public notifications, location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements, and specifies restrictions relating to the beneficial use of CCRs. In July 2018, the EPA issued a final rule extending the deadline for closure of certain impoundments and adopting other substantive changes. In August 2018, the D.C. Circuit Court of Appeals vacated and remanded portions of the CCR Rule. In December 2019, the EPA addressed the deficiencies identified by the court and proposed amendments to change the closure deadline. In August 2020, the EPA published a final rule extending the deadline to initiate closure to April 11, 2021, while providing for certain extensions. The EPA is conducting ongoing rulemaking actions regarding various other amendments to the rule. Certain ongoing legal challenges to various provisions of the CCR Rule have been held in abeyance pending review by the EPA pursuant to the President's executive order. PPL, LKE, LG&E and KU are unable to predict the outcome of the ongoing litigation and rulemaking or potential impacts on current LG&E and KU compliance plans. The Registrants are currently finalizing closure plans and schedules.

In January 2017, Kentucky issued a new state rule relating to CCR management, effective May 2017, aimed at reflecting the requirements of the federal CCR rule. As a result of a subsequent legal challenge, in January 2018, the Franklin County, Kentucky Circuit Court issued an opinion invalidating certain procedural elements of the rule. LG&E and KU presently operate their facilities under continuing permits authorized under the former program and do not currently anticipate material impacts as a result of the judicial ruling. The Kentucky Energy and Environmental Cabinet has announced it intends to propose new state rules aimed at addressing procedural deficiencies identified by the court and providing the regulatory framework necessary for operation of the state program in lieu of the federal CCR Rule. Associated costs are expected to be subject to rate recovery.

LG&E and KU received KPSC approval for a compliance plan providing for the closure of impoundments at the Mill Creek, Trimble County, E.W. Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with the federal CCR rule, KU also received KPSC approval for its plans to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law. As of April 2021, LG&E and KU have commenced closure of all of the subject impoundments and have completed closure of some of their smaller impoundments. LG&E and KU generally expect to complete impoundment closures within five years of commencement, although a longer period may be required to complete closure of some facilities. Associated costs are expected to be subject to rate recovery.

In connection with the final CCR rule, LG&E and KU recorded adjustments to existing AROs beginning in 2015 and continue to record adjustments as required. See Note 16 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are subject to rate recovery.

(All Registrants)

Superfund and Other Remediation

PPL Electric, LG&E and KU are potentially responsible for investigating and remediating contamination under the federal Superfund program and similar state programs. Actions are under way at certain sites including former coal gas manufacturing plants in Pennsylvania and Kentucky previously owned or operated by, or currently owned by predecessors or affiliates of, PPL Electric, LG&E and KU. PPL Electric is potentially responsible for a share of clean-up costs at certain sites including the Columbia Gas Plant site and the Brodhead site. Cleanup actions have been or are being undertaken at these sites as requested by governmental agencies, the costs of which have not been and are not expected to be significant to PPL Electric.

As of March 31, 2021 and December 31, 2020, PPL Electric had a recorded liability of $10 million representing its best estimate of the probable loss incurred to remediate the sites identified above. Depending on the outcome of investigations at identified sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, additional costs of remediation could be incurred. PPL Electric, LG&E and KU lack sufficient information about such additional sites to estimate any potential liability or range of reasonably possible losses, if any, related to these sites. Such costs, however, are not currently expected to be significant.

54

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result, individual states may establish stricter standards for water quality and soil cleanup, that could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of possible losses, if any, related to these matters.

Regulatory Issues (All Registrants)

See Note 7 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

PPL Electric, LG&E and KU monitor their compliance with the Reliability Standards and self-report or self-log potential violations of applicable reliability requirements whenever identified, and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and an estimate or range of possible losses cannot be determined.

Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of March 31, 2021. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The probability of expected payment/performance under each of these guarantees is remote except for "WPD guarantee of pension and other obligations of unconsolidated entities," for which PPL has a total recorded liability of $4 million at March 31, 2021 and $5 million at December 31, 2020, which is included in “Current liabilities held for sale” on the Balance Sheets. For reporting purposes, on a consolidated basis, all guarantees of PPL Electric, LKE, LG&E and KU also apply to PPL, and all guarantees of LG&E and KU also apply to LKE.

55

	Exposure at March 31, 2021			Expiration Date
PPL
WPD indemnifications for entities in liquidation and sales of assets	$	11	(a)	2023
WPD guarantee of pension and other obligations of unconsolidated entities	96		(b)
LKE
Indemnification of lease termination and other divestitures	$	200	(c)	2021
LG&E and KU
LG&E and KU obligation of shortfall related to OVEC			(d)

(a)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. Additionally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

(b)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 March 31, 2021, 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.

(c)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 may exceed the maximum. 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 various indemnification scenarios, but does not expect such outcomes to result in significant losses above the amounts recorded.

(d)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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $103 million at March 31, 2021, consisting of LG&E's share of $71 million and KU's share of $32 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" in Note 11 in PPL's, LKE's, LG&E's and KU's 2020 Form 10-K for additional information on the OVEC power purchase contract.

In March 2018, a sponsor with a 4.85% pro-rata share of OVEC obligations filed for bankruptcy under Chapter 11 and, in August 2018, received a rejection order for the OVEC power purchase contract in the bankruptcy proceeding. OVEC and other entities challenged the contract rejection, the bankruptcy plan confirmation and regulatory aspects of the plan in various forums. In May 2020, OVEC and the relevant sponsor announced a settlement resolving all disputed matters in the bankruptcy and other proceedings, including providing that the sponsor will withdraw its request to reject the power purchase agreement. The settlement was implemented in July 2020.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is remote.

PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

Risks and Uncertainties (All Registrants)

The COVID-19 pandemic has disrupted the U.S. and global economies and continues to present extraordinary challenges to businesses, communities, workforces and markets. In the U.S. and throughout the world, governmental authorities have taken urgent and extensive actions to contain the spread of the virus and mitigate known or foreseeable impacts. In the Registrants’ service territories, mitigation measures have included quarantines, stay-at-home orders, travel restrictions, reduced operations or closures of businesses, schools and governmental agencies, and legislative or regulatory actions to address health or other pandemic-related concerns, all of which have the potential to adversely impact the Registrants' business and operations, especially if these measures remain in effect for a prolonged period of time.

56

To date, there has been no material impact on the Registrants’ operations, financial condition, liquidity or on their supply chain as a result of COVID-19; however, the duration and severity of the outbreak and its ultimate effects on the global economy, the financial markets, or the Registrants’ workforce, customers and suppliers are uncertain. A protracted slowdown of broad sectors of the economy, prolonged or pervasive restrictions on businesses and their workforces, or significant changes in legislation or regulatory policy to address the COVID-19 pandemic all present significant risks to the Registrants. These or other unpredictable events resulting from the pandemic could further reduce customer demand for electricity and gas, impact the Registrants’ employees and supply chains, result in an increase in certain costs, delay payments or increase bad debts, or result in changes in the fair value of their assets and liabilities, which could materially and adversely affect the Registrants’ business, results of operations, financial condition or liquidity.

12. Related Party Transactions

Support Costs (PPL Electric, LKE, LG&E and KU)

PPL Services, PPL EU Services and LKS provide PPL, PPL Electric and LKE, their respective subsidiaries, including LG&E and KU, and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services may also use a ratio of overall direct and indirect costs or a weighted average cost ratio. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

PPL Energy Funding maintains a $650 million revolving line of credit with a PPL Electric subsidiary. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rates on borrowings are equal to one-month LIBOR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the Income Statements.

(LKE)

LKE maintains a $375 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. The interest rates on borrowings are equal to one-month LIBOR plus a spread. At March 31, 2021 and December 31, 2020, $227 million and $251 million were outstanding and reflected in "Notes payable with affiliates" on the Balance Sheets. The interest rates on the outstanding borrowings at March 31, 2021 and December 31, 2020 were 1.62% and 1.65%. Interest expense on the revolving line of credit was not significant for the three months ended March 31, 2021 and 2020.

57

LKE maintains an agreement with a PPL affiliate that has a $300 million borrowing limit whereby LKE can loan funds on a short-term basis at market-based rates. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rate on the loan is based on the PPL affiliate's credit rating and equal to one-month LIBOR plus a spread.

LKE maintains ten-year notes with a combined value of $1.2 billion with a PPL affiliate with a weighted-average interest rate of 3.89% and maturities ranging from 2026 to 2030. At March 31, 2021 and December 31, 2020, the notes were reflected in "Long-term debt to affiliate" on the Balance Sheets. The total interest expense on the 10-year notes was $12 million and $7 million for the three months ended March 31, 2021 and 2020.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. LG&E's money pool borrowing limit is $325 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. KU's money pool borrowing limit is $300 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

VEBA Funds Receivable (PPL Electric)

In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. The intercompany receivable balance associated with these funds was $20 million as of March 31, 2021, of which $10 million was reflected in "Accounts receivable from affiliates" and $10 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet. The intercompany receivable balance associated with these funds was $22 million as of December 31, 2020, of which $10 million was reflected in "Accounts receivable from affiliates" and $12 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet.

Other (PPL Electric, LG&E and KU)

See Note 10 for discussions regarding intercompany allocations associated with defined benefits.

13. Other Income (Expense) - net

(PPL)

The details of "Other Income (Expense) - net" for the periods ended March 31, were:

	Three Months
	2021		2020
Other Income
Defined benefit plans - non-service credits (Note 10)	$	4	$	1
AFUDC - equity component	4		3
Miscellaneous	—		1
Total Other Income	8		5
Other Expense
Charitable contributions	1		1
Miscellaneous	7		9
Total Other Expense	8		10
Other Income (Expense) - net	$	—	$	(5)

58

14. Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 in each Registrant's 2020 Form 10-K for information on the levels in the fair value hierarchy.

Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	421	$	421	$	—	$	—	$	442	$	442	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Special use funds (a):
Commingled debt fund measured at NAV (b)	25		—		—		—		26		—		—		—
Commingled equity fund measured at NAV (b)	24		—		—		—		25		—		—		—
Total special use funds	49		—		—		—		51		—		—		—
Total assets	$	471	$	422	$	—	$	—	$	494	$	443	$	—	$	—
Liabilities
Price risk management liabilities (c):
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
PPL Electric
Assets
Cash and cash equivalents	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
Total assets	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Total assets	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—

59

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—

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

(b)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(c)Current portion is included in "Other current liabilities" and noncurrent portion is included in "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

Special Use Funds

(PPL)

The special use funds are investments restricted for paying active union employee medical costs. In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA to be used to pay medical claims of active bargaining unit employees. The funds are invested primarily in commingled debt and equity funds measured at NAV and are classified as investments in equity securities. Changes in fair value of the funds are recorded to the Statements of Income.

Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps

(PPL, LKE, LG&E and KU)

To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency exchange risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Nonrecurring Fair Value Measurements (PPL)

See Note 9 for information regarding the estimated fair value of the U.K. utility business which is classified as held for sale as of March 31, 2021.

Financial Instruments Not Recorded at Fair Value (All Registrants)

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement.

60

	March 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,691	$	16,607	$	14,689	$	17,774
PPL Electric	4,237		4,881		4,236		5,338
LKE	6,075		7,051		6,074		7,589
LG&E	2,007		2,321		2,007		2,499
KU	2,618		3,042		2,618		3,334

(a)Amounts are net of debt issuance costs.

The carrying amounts of other current financial instruments (except for long-term debt due within one year) approximate their fair values because of their short-term nature.

15. Derivative Instruments and Hedging Activities

Risk Management Objectives

(All Registrants)

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances and foreign exchange (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Senior Director-Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and foreign currency exchange rates. Many of these contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest Rate Risk

•PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and WPD hold over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. PPL, LKE and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LKE, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuances.

•PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utilities and for certain plans at WPD due to the recovery methods in place.

Foreign Currency Risk (PPL)

•PPL is exposed to foreign currency exchange risk primarily associated with its investments in and earnings of U.K. affiliates.

61

(All Registrants)

Commodity Price Risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is insignificant and mitigated through its PUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below.

•WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO-ED1 price control regulations, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2020 Form 10-K for additional information on revenue recognition under RIIO-ED1.

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Equity Securities Price Risk

•PPL and its subsidiaries are exposed to equity securities price risk associated with the fair value of the defined benefit plans' assets. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery methods in place.

•PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" interest rate derivatives with financial institutions, as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of PPL Electric, LG&E or KU defaults on its obligation, those Registrants would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thereby mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements (PPL, LKE, LG&E and KU)

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had no obligation and an immaterial obligation to return cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

62

PPL had a $22 million obligation and no obligation to post cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

LKE, LG&E and KU had no obligation to return cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

LKE, LG&E and KU had no obligation to post cash collateral under master netting arrangements at March 31, 2021.and December 31, 2020.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. A variety of financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of the debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges (PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL had no such contracts at March 31, 2021.

At March 31, 2021, PPL held an aggregate notional value in cross-currency interest rate swap contracts of $202 million that mature in 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. In March 2021, $500 million of WPD's U.S. dollar-denominated senior notes were repaid prior to maturity and $500 million notional value of cross-currency interest rate swap contracts matured.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

For the three months ended March 31, 2021 and 2020, PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges.

At March 31, 2021, the amount of accumulated net unrecognized after-tax gains (losses) on qualifying derivatives expected to be reclassified into earnings during the next 12 months is insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity (PPL, LKE and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments. Because realized gains and losses from the swaps, including terminated swap contracts, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At March 31, 2021, LG&E held contracts with a notional amount of $64 million that mature in 2033.

63

Foreign Currency Risk (PPL)

PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions, including the anticipated sale of its U.K. utility business and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings.

Net Investment Hedges

PPL enters into foreign currency contracts on behalf of a subsidiary to protect the value of a portion of its net investment in WPD. There were no contracts outstanding at March 31, 2021.

At March 31, 2021 and December 31, 2020, PPL had $33 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI.

Economic Activity

PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings and anticipated transactions, including the anticipated sale of its U.K. utility business. At March 31, 2021, the total exposure hedged by PPL was approximately £7.5 billion.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts include certain full requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 7 for amounts recorded in regulatory assets and regulatory liabilities at March 31, 2021 and December 31, 2020.

See Note 1 in each Registrant's 2020 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

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

64

	March 31, 2021								December 31, 2020
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	2
Cross-currency swaps (c)	2		—		—		—		94		—		—		—
Foreign currency contracts (c)	—		—		23		180		—		—		—		137
Total current	2		1		23		180		94		—		—		139
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	—		16		—		—		—		—		—		21
Cross-currency swaps (c)	37		—		—		—		52		—		—		—
Total noncurrent	37		16		—		—		52		—		—		21
Total derivatives	$	39	$	17	$	23	$	180	$	146	$	—	$	—	$	160

(a)Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b)Excludes accrued interest, if applicable.

(c)Included in "Current assets held for sale" and "Current liabilities held for sale" on the Balance Sheets.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2021.

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	Interest expense	$	(1)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	(46)		Income (Loss) from Discontinued Operations (net of taxes)	(37)
Total	$	(46)		$	(39)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued Operations (net of taxes)	$	(25)
Interest rate swaps	Interest expense	(1)
	Total	$	(26)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	6

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2020.

65

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	(5)	Interest expense	$	(2)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	15		Income (Loss) from Discontinued Operations (net of taxes)	6
Total	$	10		$	3

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued operations (net of taxes)	$	62
Interest rate swaps	Interest expense	(1)
	Total	$	61
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2021.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of income taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	153	$	(2,043)
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		(1)
Cross-currency swaps:
Hedged items	—		37
Amount of gain (loss) reclassified from AOCI to Income	—		(37)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2020.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	154	$	350
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(2)		(1)
Cross-currency swaps:
Hedged items	—		(6)
Amount of gain (loss) reclassified from AOCI to Income	—		6

66

(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.

	March 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	2
Total current	—		1		—		2
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	—		16		—		21
Total noncurrent	—		16		—		21
Total derivatives	$	—	$	17	$	—	$	23

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2021.

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

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2020. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months
Interest rate swaps	Interest expense	$	(1)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

(PPL, LKE, LG&E and KU)

Offsetting Derivative Instruments

PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LKE, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. 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.

67

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
March 31, 2021
Treasury Derivatives
PPL	$	62	$	18	$	—	$	44	$	197	$	18	$	22	$	157
LKE	—		—		—		—		17		—		—		17
LG&E	—		—		—		—		17		—		—		17

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2020
Treasury Derivatives
PPL	$	146	$	34	$	—	$	112	$	160	$	34	$	—	$	126
LKE	—		—		—		—		23		—		—		23
LG&E	—		—		—		—		23		—		—		23

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LKE, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LKE's, LG&E's and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts disclosed below represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL)

At March 31, 2021, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	139

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

68

16. Asset Retirement Obligations

(PPL, LKE, LG&E and KU)

PPL's, LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 11 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LKE, LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, at the time of retirement, the related ARO regulatory asset is offset against the associated cost of removal regulatory liability, PP&E and ARO liability.

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

17. Accumulated Other Comprehensive Income (Loss)

(PPL)

The after-tax changes in AOCI by component for the periods ended March 31 were as follows.

	Foreign currency translation adjustments (a)		Unrealized gains (losses)  on qualifying derivatives		Defined benefit plans (b)
					Prior service costs		Actuarial gain (loss)		Total
PPL
December 31, 2020	$	(1,158)	$	—	$	(16)	$	(3,046)	$	(4,220)
Amounts arising during the period	303		(30)		—		—		273
Reclassifications from AOCI	—		25		—		40		65
Net OCI during the period	303		(5)		—		40		338
March 31, 2021	$	(855)	$	(5)	$	(16)	$	(3,006)	$	(3,882)
December 31, 2019	$	(1,425)	$	(5)	$	(18)	$	(2,910)	$	(4,358)
Amounts arising during the period	(61)		8		—		—		(53)
Reclassifications from AOCI	—		(3)		1		47		45
Net OCI during the period	(61)		5		1		47		(8)
March 31, 2020	$	(1,486)	$	—	$	(17)	$	(2,863)	$	(4,366)

(a)    Amounts relate to operations of the U.K. utility business.

(b)    Substantially all of the amounts relate to pension plans of the U.K. utility business. At March 31, 2021, the combined accumulated other comprehensive loss related to these plans was $2.8 billion.

69

The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended March 31.

	Three Months				Affected Line Item on the
Details about AOCI	2021		2020		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(2)	Interest Expense
	(1)		(1)		Income (Loss) from Discontinued Operations (net of income taxes)
Cross-currency swaps	(37)		6		Income (Loss) from Discontinued Operations (net of income taxes)
Total Pre-tax	(39)		3
Income Taxes	14		—
Total After-tax	(25)		3
Defined benefit plans
Prior service costs (a)	—		(1)
Net actuarial loss (a)	(62)		(59)
Total Pre-tax	(62)		(60)
Income Taxes	22		12
Total After-tax	(40)		(48)
Total reclassifications during the period	$	(65)	$	(45)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 10 for additional information.

70

Item 2. Combined Management's Discussion and Analysis of Financial Condition and

Results of Operations

(All Registrants)

This "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" is separately filed by PPL, PPL Electric, LKE, LG&E and KU. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for individual Registrants when significant.

The following should be read in conjunction with the Registrants' Condensed Consolidated Financial Statements and the accompanying Notes and with the Registrants' 2020 Form 10-K. Capitalized terms and abbreviations are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" includes the following information:

•"Overview" provides a description of each Registrant's business strategy and a discussion of important financial and operational developments.

•"Results of Operations" for all Registrants includes a "Statement of Income Analysis," which discusses significant changes in principal line items on the Statements of Income, comparing the three months ended March 31, 2021 with the same period in 2020. The PPL "Results of Operations" also includes "Segment Earnings" and "Adjusted Gross Margins," which provide a detailed analysis of earnings by reportable segment. These discussions include non-GAAP financial measures, including "Earnings from Ongoing Operations" and "Adjusted Gross Margins" and provide explanations of the non-GAAP financial measures and a reconciliation of the non-GAAP financial measures to the most comparable GAAP measure.

•"Financial Condition - Liquidity and Capital Resources" provides an analysis of the Registrants' liquidity positions and credit profiles. This section also includes a discussion of rating agency actions.

•"Financial Condition - Risk Management" provides an explanation of the Registrants' risk management programs relating to market and credit risk.

•"Application of Critical Accounting Policies" provides an update to PPL's critical accounting policy related to "Income Taxes."

Overview

Introduction

(PPL)

PPL, headquartered in Allentown, Pennsylvania, is a utility holding company. PPL, through its regulated utility subsidiaries, delivers electricity to customers in the U.K., Pennsylvania, Kentucky and Virginia; delivers natural gas to customers in Kentucky; and generates electricity from power plants in Kentucky. On March 17, 2021, PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business, which substantially represents PPL's U.K. Regulated segment. As a result of this strategic shift in the operations of the business, PPL will no longer provide segment information for the U.K. Regulated segment. See "Financial and Operational Developments - "Share Purchase Agreement to Sell U.K. Utility Business" below for additional information.

PPL's principal subsidiaries are shown below (* denotes a Registrant).

71

		PPL Corporation*
PPL Electric* Engages in the regulated transmission and distribution of electricity in Pennsylvania		LKE*		PPL Capital Funding Provides financing for the operations of PPL and certain subsidiaries
	LG&E* Engages in the regulated generation, transmission, distribution and sale of electricity and regulated distribution and sale of natural gas in Kentucky		KU* Engages in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky
Pennsylvania Regulated Segment		Kentucky Regulated Segment

PPL's reportable segments' results primarily represent the results of LKE and PPL Electric, except that in 2020 the reportable segments were also allocated certain corporate level financing and other costs that were not included in the results of LKE and PPL Electric. In 2021, corporate level financing costs are no longer being allocated to the reportable segments.

 In addition to PPL, the other Registrants included in this filing are as follows.

(PPL Electric)

PPL Electric, headquartered in Allentown, Pennsylvania, is a wholly owned subsidiary of PPL and a regulated public utility that is an electricity transmission and distribution service provider in eastern and central Pennsylvania. PPL Electric is subject to regulation as a public utility by the PUC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act. PPL Electric delivers electricity in its Pennsylvania service area and provides electricity supply to retail customers in that area as a PLR under the Customer Choice Act.

(LKE)

LKE, headquartered in Louisville, Kentucky, is a wholly owned subsidiary of PPL and a holding company that owns regulated utility operations through its subsidiaries, LG&E and KU, which constitute substantially all of LKE's assets. LG&E and KU are engaged in the generation, transmission, distribution and sale of electricity. LG&E also engages in the transmission, distribution and sale of natural gas in Kentucky. LG&E and KU maintain separate corporate identities and serve customers in Kentucky under their respective names. KU also serves customers in Virginia under the Old Dominion Power name.

(LG&E)

LG&E, headquartered in Louisville, Kentucky, is a wholly owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky. LG&E is subject to regulation as a public utility by the KPSC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act.

(KU)

KU, headquartered in Lexington, Kentucky, is a wholly owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity in Kentucky and Virginia. KU is subject to regulation as a public utility by the KPSC and the VSCC, and certain of its transmission and wholesale power activities are subject to the jurisdiction

72

of the FERC under the Federal Power Act. KU serves its Kentucky customers under the KU name and its Virginia customers under the Old Dominion Power name.

Business Strategy

(All Registrants)

PPL's strategy, which is supported by the other Registrants, is to achieve industry-leading performance in safety, reliability, customer satisfaction and operational efficiency; to advance a clean energy transition while maintaining affordability and reliability; to maintain a strong financial foundation and create long-term value for our shareowners; to foster a diverse and exceptional workplace; and to build strong communities in areas that we serve.

Central to PPL's strategy is recovering capital project costs efficiently through various rate-making mechanisms, including periodic base rate case proceedings using forward test years, annual FERC formula rate mechanisms and other regulatory agency-approved recovery mechanisms designed to limit regulatory lag. In Kentucky, the KPSC has adopted a series of regulatory mechanisms (ECR, DSM, GLT, fuel adjustment clause, and gas supply clause) and recovery on construction work-in-progress that reduce regulatory lag and provide timely recovery of and return on, as appropriate, prudently incurred costs. In Pennsylvania, the FERC transmission formula rate, DSIC mechanism, Smart Meter Rider and other recovery mechanisms operate to reduce regulatory lag and provide for timely recovery of and a return on, as appropriate, prudently incurred costs.

In March 2021, PPL entered into definitive agreements that strategically reposition the company as a U.S.-based energy company focused on building the utilities of the future. PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business to a subsidiary of National Grid plc. PPL and its subsidiary, PPL Energy Holdings also entered into a separate share purchase agreement to acquire The Narragansett Electric Company from a different subsidiary of National Grid plc, to be financed with a portion of the proceeds from the sale of the U.K. utility business. On May 3, 2021, an Assignment and Assumption Agreement was entered into by PPL, PPL Energy Holdings, PPL Rhode Island Holdings and National Grid U.S. whereby certain interests of PPL Energy Holdings in the Narragansett SPA were assigned to and assumed by PPL Rhode Island Holdings. The announced transactions are intended to strengthen PPL’s credit metrics, enhance long-term earnings growth and predictability, and provide the company with greater financial flexibility to invest in sustainable energy solutions. See Note 9 to the Financial Statements, and the discussions in "Financial and Operating Developments" below, for additional information on these transactions.

Financial and Operational Developments

(PPL)

Share Purchase Agreement to Sell U.K. Utility Business

On March 17, 2021, PPL WPD Limited (WPD Limited) entered into a share purchase agreement (WPD SPA) to sell PPL's U.K. utility business to National Grid Holdings One plc (National Grid U.K.), a subsidiary of National Grid plc. Pursuant to the WPD SPA, National Grid U.K. will acquire 100% of the issued share capital of PPL WPD Investments Limited (WPD Investments) for £7.8 billion in cash. WPD Limited will also receive an additional amount of £548,000 for each day during the period from January 1, 2021 to the closing date if the dividends usually declared by WPD Investments to WPD Limited are not paid for that period.

The completion of the transaction, which is currently expected to occur by the end of July 2021, is subject to approval by National Grid plc's shareholders and receipt of regulatory approvals from the Financial Conduct Authority (the FCA), the Guernsey Financial Services Commission and, if applicable at the time of closing, from the U.K. Secretary of State in connection with the National Security and Investment Bill 2020. On April 22, 2021, National Grid plc’s shareholders approved the transaction pursuant to the listing rules of the FCA. On May 4, 2021, the Guernsey Financial Services Commission approved the transaction. The approval of the FCA is the sole remaining approval before the transaction can be consummated. The consummation of the transaction is not subject to a financing condition.

In connection with entering into the WPD SPA, the U.K. utility business has met the accounting criteria to be classified as assets and liabilities held for sale and discontinued operations beginning with the first quarter of 2021. Accordingly, PPL’s investment in the U.K. utility business has been reported at its estimated fair value, less costs to sell, resulting in an estimated pre-tax loss on sale of $1.6 billion as of March 31, 2021.

73

See Note 9 to the Financial Statements for additional information on the WPD SPA.

Share Purchase Agreement to Acquire The Narragansett Electric Company

On March 17, 2021, PPL and its subsidiary, PPL Energy Holdings, entered into a share purchase agreement (Narragansett SPA) with National Grid USA (National Grid U.S.), a subsidiary of National Grid plc to acquire 100% of the outstanding shares of common stock of The Narragansett Electric Company (Narragansett Electric) for approximately $3.8 billion in cash. On May 3, 2021, an Assignment and Assumption Agreement was entered into by PPL, PPL Energy Holdings, PPL Rhode Island Holdings and National Grid U.S. whereby certain interests of PPL Energy Holdings in the Narragansett SPA were assigned to and assumed by PPL Rhode Island Holdings. Pursuant to that Assignment and Assumption Agreement, PPL Rhode Island Holdings became the purchasing entity under the Narragansett SPA. The acquisition is expected to be funded with proceeds from the sale of the U.K. utility business. PPL has agreed to guarantee all obligations of PPL Energy Holdings and PPL Rhode Island Holdings under the Narragansett SPA and the related Assignment and Assumption Agreement.

The closing of the acquisition, which is currently expected to occur by March 2022, is subject to the prior closing of the sale of WPD Investments to National Grid U.K. and is also subject to the receipt of certain U.S. regulatory approvals, as well as other customary conditions to closing. The consummation of the transaction is not subject to a financing condition.

See Note 9 to the Financial Statements for additional information on the Narragansett SPA.

Regulatory Requirements

(All Registrants)

The Registrants cannot predict the impact that future regulatory requirements may have on their financial condition or results of operations.

(PPL, LKE, LG&E and KU)

The businesses of LKE, LG&E and KU are subject to extensive federal, state and local environmental laws, rules and regulations, including those pertaining to CCRs, GHG, and ELGs. See Notes 7, 11 and 16 to the Financial Statements for a discussion of these significant environmental matters. These and other environmental requirements led PPL, LKE, LG&E and KU to retire approximately 1,200 MW of coal-fired generating plants in Kentucky since 2010.

Challenge to PPL Electric Transmission Formula Rate Return on Equity (PPL and PPL Electric)

On May 21, 2020, PP&L Industrial Customer Alliance (PPLICA) filed a complaint with the FERC alleging that PPL Electric's base return on equity (ROE) of 11.18% used to determine PPL Electric's formula transmission rate is unjust and unreasonable, and proposing an alternative ROE of 8.0% based on its interpretation of FERC Opinion No. 569. However, also on May 21, 2020, the FERC issued Opinion No. 569-A in response to numerous requests for rehearing of Opinion No. 569, which revised the method for analyzing base ROE. On June 10, 2020, PPLICA filed a Motion to Supplement the May 21, 2020 complaint in which PPLICA continued to allege that PPL Electric’s base ROE is unjust and unreasonable, but revised its analysis of PPL Electric's base ROE to reflect the guidance provided in Opinion No. 569-A. The amended complaint proposed an updated alternative ROE of 8.5% and also requested that the FERC preserve the original refund effective date as established by the filing of the original complaint on May 21, 2020. Several parties have filed motions to intervene, including one party who filed Comments in Support of the original complaint.

On July 10, 2020, PPL Electric filed its Answer and supporting Testimony to the PPLICA filings arguing that the FERC should deny the original and amended complaints as they are without merit and fail to demonstrate the existing base ROE is unjust and unreasonable. In addition, PPL Electric contended any refund effective date should be set for no earlier than June 10, 2020 and PPLICA's proposed replacement ROE should be rejected.

On October 15, 2020, the FERC issued an order on the PPLICA complaints which established hearing and settlement procedures, set a refund effective date of May 21, 2020 and granted the motions to intervene. On November 16, 2020, PPL Electric filed a request for rehearing of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date. On December 17, 2020, the FERC issued a Notice of Denial of Rehearing by Operation of Law and Providing for Further Consideration. On February 16 and April 19, 2021, PPL Electric filed Petitions for Review with the United States Court of

74

Appeals for the District of Columbia Circuit of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date.

PPL Electric continues to believe its ROE is just and reasonable and that it has meritorious defenses against the original and amended complaints. Settlement negotiations are currently proceeding, but there can be no assurance that they will result in a final settlement. Although PPL Electric cannot predict the outcome of this matter, in the first quarter of 2021, PPL Electric recorded a revenue reserve of $19 million after-tax. Of this amount, $13 million relates to the period from May 21, 2020 to December 31, 2020. Additional revenue earned from May 21, 2020 through the ultimate resolution of this matter may be subject to refund. A change of 50 basis points to the base ROE would impact PPL Electric's net income by approximately $12 million on an annual basis.

FERC Transmission Rate Filing (PPL, LKE, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. Due to the development of robust, accessible energy markets over time, LG&E and KU believe the mitigation commitments are no longer relevant or appropriate. In March 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E and KU of a transition mechanism for certain existing power supply arrangements, subject to FERC review and approval. In July 2019, LG&E and KU proposed their transition mechanism to the FERC and in September 2019, the FERC rejected the proposed transition mechanism. In September 2020, the FERC issued orders in the rehearing process that modified various aspects of the September 2019 orders which had approved future termination of the credits, including adjusting which customer arrangements are covered by the transition mechanism and respective future periods or dates for termination of credits. In November 2020, the FERC denied the parties' rehearing requests. In November 2020 and January 2021, LG&E and KU and other parties appealed the September 2020 and November 2020 orders at the D.C. Circuit Court of Appeals. The appellate proceedings are continuing, and also include certain additional prior pending petitions for review relating to the matter. On January 15, 2021, LG&E and KU made a filing seeking FERC acceptance of a new proposal for a transition mechanism. On March 16, 2021, the FERC accepted the filed transition mechanism agreements effective on March 17, 2021 but subject to refund, and established hearing and settlement procedures. LG&E and KU are also required to make certain compliance filings consistent with the March 16, 2021 order. LG&E and KU cannot predict the outcome of the respective appellate and FERC proceedings. LG&E and KU currently receive recovery of the waivers and credits provided through other rate mechanisms and such rate recovery would be anticipated to be adjusted consistent with potential changes or terminations of the waivers and credits, as such become effective.

Rate Case Proceedings (PPL, LKE, LG&E and KU)

On November 25, 2020, LG&E and KU filed requests with the KPSC for an increase in annual electricity and gas revenues of approximately $331 million ($131 million and $170 million in electricity revenues at LG&E and KU and $30 million in gas revenues at LG&E). The revenue increases would be an increase of 11.6% and 10.4% in electricity revenues at LG&E and KU, and an increase of 8.3% in gas revenues at LG&E. In recognition of the economic impact of COVID-19, LG&E and KU requested approval of a one-year billing credit which will credit customers approximately $53 million ($41 million at LG&E and $12 million at KU). The billing credit represents the return to customers of certain regulatory liabilities on LG&E’s and KU’s Balance Sheets and serves to partially mitigate the rate increases during the first year in which the new rates are in effect.

LG&E’s and KU’s applications also included a request for a CPCN to deploy Advanced Metering Infrastructure across LG&E’s and KU’s service territories in Kentucky.

The applications were based on a forecasted test year of July 1, 2021 through June 30, 2022 and requested an authorized return on equity of 10.0%.

On April 19, 2021, LG&E and KU entered into an agreement with all intervening parties to the proceedings resolving all matters in their applications, with the explicit exception of LG&E's and KU's net metering proposals. The agreement proposes increases in annual revenues of $217 million ($77 million and $116 million in electricity revenues at LG&E and KU and $24 million in gas revenues at LG&E) based on an authorized return on equity of 9.55%. The proposal includes an authorized

75

9.35% return on equity for the ECR and GLT mechanisms. The agreement does not modify the requested one-year billing credit. The agreement proposes that the KPSC should grant LG&E’s and KU’s request for a CPCN to deploy Advanced Metering Infrastructure and proposes the establishment of a Retired Asset Recovery rider (RAR) to provide recovery of and return on the remaining investment in certain electric generating units upon their retirement over a ten-year period following retirement. In respect of the RAR rider, the agreement proposes that LG&E and KU will continue to use currently approved depreciation rates for Mill Creek units 1 and 2 and Brown Unit 3. The agreement also proposes a four-year “stay-out” commitment from LG&E and KU to refrain from effective base rate increases before July 1, 2025, subject to certain exceptions.

A hearing on the agreement, and the underlying proceedings, was completed on April 28, 2021. Subject to KPSC approval, the rates, decreased by the amount of the billing credit, are expected to become effective July 1, 2021. An Order on the net metering issues is expected by the end of September 2021. PPL, LKE, LG&E and KU cannot predict the outcome of these proceedings.

Results of Operations

(PPL)

The "Statement of Income Analysis" discussion below describes significant changes in principal line items on the Statements of Income, comparing the three months ended March 31, 2021 with the same period in 2020. The "Segment Earnings" and "Adjusted Gross Margins" discussions provide a review of results by reportable segment. These discussions include non-GAAP financial measures, including "Earnings from Ongoing Operations" and "Adjusted Gross Margins," and provide explanations of the non-GAAP financial measures and a reconciliation of those measures to the most comparable GAAP measure.

(PPL Electric, LKE, LG&E and KU)

A "Statement of Income Analysis" is presented separately for PPL Electric, LKE, LG&E and KU. The "Statement of Income Analysis" discussion below describes significant changes in principal line items on the Statements of Income, comparing the three months ended March 31, 2021 with the same period in 2020.

(All Registrants)

The results for interim periods can be disproportionately influenced by numerous factors and developments and by seasonal variations. As such, the results of operations for interim periods do not necessarily indicate results or trends for the year or future periods.

76

PPL: Statement of Income Analysis, Segment Earnings and Adjusted Gross Margins

Statement of Income Analysis

Net income for the periods ended March 31 includes the following results:

	Three Months
	2021		2020		$ Change
Operating Revenues	$	1,498	$	1,440	$	58
Operating Expenses
Operation
Fuel	177		163		14
Energy purchases	220		201		19
Other operation and maintenance	367		355		12
Depreciation	267		250		17
Taxes, other than income	52		47		5
Total Operating Expenses	1,083		1,016		67
Other Income (Expense) - net	—		(5)		5
Interest Expense	153		154		(1)
Income from Continuing Operations Before Income Taxes	262		265		(3)
Income Taxes	59		61		(2)
Income from Continuing Operations After Income Taxes	203		204		(1)
Income (Loss) from Discontinued Operations (net of income taxes) (Note 9)	(2,043)		350		(2,393)
Net Income (Loss)	$	(1,840)	$	554	$	(2,394)

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months
PPL Electric Distribution price	$	(2)
PPL Electric Distribution volume (a)	17
PPL Electric PLR (b)	6
PPL Electric Transmission Formula Rate (c)	(22)
LKE Volumes (a)	42
LKE Fuel and other energy prices (d)	14
Other	3
Total	$	58

(a)The increase was primarily due to favorable weather.

(b)The increase was due to favorable volumes of $32 million, partially offset by lower prices of $20 million and higher customer shopping of $6 million.

(c)The decrease was primarily due to a $27 million reserve recorded due to a challenge to the transmission formula rate return on equity and a $17 million decrease as a result of a lower PPL zonal peak load billing factor, partially offset by $19 million from returns on additional transmission capital investments. See Note 7 to the Financial Statements for additional information on the transmission formula rate return on equity challenge.

(d)The increase was primarily due to higher recoveries of fuel and energy purchases due to higher commodity costs and higher off-system sales prices.

Fuel

Fuel increased $14 million for the three months ended March 31, 2021 compared with 2020, primarily due to an increase in volumes driven by weather.

Energy Purchases

Energy purchases increased $19 million for the three months ended March 31, 2021 compared with 2020, primarily due to an $11 million increase in gas volumes driven by weather and a $3 million increase in commodity costs. at LKE

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

77

	Three Months
PPL Electric storm costs	$	6
PPL Electric Act 129	(1)
PPL Electric bad debts	(3)
PPL Electric canceled projects	(11)
LKE plant operations and maintenance	8
LKE transmission operations and maintenance	3
LKE distribution operations and maintenance	3
Other	7
Total	$	12

Depreciation

The increase in depreciation was due to:

	Three Months
Additions to PP&E, net	$	13
Other	4
Total	$	17

Income Taxes

Income taxes decreased $2 million for the three months ended March 31, 2021 compared with 2020, primarily due to a change in pre-tax income. See Note 6 to the Financial Statements for additional information on income taxes.

Income (Loss) from Discontinued Operations (net of income taxes)

Income (Loss) from Discontinued Operations (net of income taxes) decreased $2.4 billion for the three months ended March 31, 2021 compared with 2020. The decrease was attributable primarily to a loss on sale of approximately $1.6 billion and an increase in income tax expense of $672 million in 2021. The increase in income tax expense includes federal tax expense of $689 million for the recognition of the tax cost associated with the realization of the book-tax outside basis difference in PPL's investment in the U.K. utility business. See "Discontinued Operations" in Note 9 to the Financial Statements for summarized results of operations for the U.K. utility business.

Segment Earnings

PPL's Net Income by reportable segment for the periods ended March 31 was as follows:

	Three Months
	2021		2020		$ Change
Kentucky Regulated	$	146	$	127	$	19
Pennsylvania Regulated	113		118		(5)
Corporate and Other (a)(b)	(56)		(41)		(15)
Discontinued Operations (c)	(2,043)		350		(2,393)
Net Income	$	(1,840)	$	554	$	(2,394)

(a)Primarily represents financing and certain other costs incurred at the corporate level that have not been allocated or assigned to the segments, which are presented to reconcile segment information to PPL's consolidated results.

(b)The amount for the period ended March 31, 2020 has been adjusted for certain costs that were previously included in the U.K. Regulated segment.

(c)See Note 9 to the Financial Statements for additional information.

Earnings from Ongoing Operations

Management utilizes "Earnings from Ongoing Operations" as a non-GAAP financial measure that should not be considered as an alternative to net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance.

78

Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as:

• Gains and losses on sales of assets not in the ordinary course of business.

• Impairment charges.

• Significant workforce reduction and other restructuring effects.

• Acquisition and divestiture-related adjustments.

• Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.

PPL's Earnings from Ongoing Operations by reportable segment for the periods ended March 31 were as follows:

	Three Months
	2021		2020		$ Change
Kentucky Regulated	$	142	$	127	$	15
Pennsylvania Regulated	126		118		8
Corporate and Other (a)	(49)		(39)		(10)
Earnings from Ongoing Operations	$	219	$	206	$	13

(a)The amount for the period ended March 31, 2020 has been adjusted for certain costs that were previously included in the U.K. Regulated segment.

See "Reconciliation of Earnings from Ongoing Operations" below for a reconciliation of this non-GAAP financial measure to Net Income.

Kentucky Regulated Segment

The Kentucky Regulated segment consists primarily of LKE's regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. In addition, certain costs are allocated to the Kentucky Regulated segment. The Kentucky Regulated segment represents 72% of PPL's Income from Continuing Operations After Income Taxes for the three months ended March 31, 2021 and 54% of PPL's assets excluding "Current assets held for sale" at March 31, 2021.

Net Income and Earnings from Ongoing Operations for the periods ended March 31 include the following results.

	Three Months
	2021		2020		$ Change
Operating revenues	$	885	$	825	$	60
Fuel	177		163		14
Energy purchases	71		57		14
Other operation and maintenance	220		204		16
Depreciation	156		149		7
Taxes, other than income	21		18		3
Total operating expenses	645		591		54
Other Income (Expense) - net	—		—		—
Interest Expense	64		75		(11)
Income Taxes	30		32		(2)
Net Income	146		127		19
Less: Special Items	4		—		4
Earnings from Ongoing Operations	$	142	$	127	$	15

The following after-tax gains (losses), which management considers special items, impacted the Kentucky Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended March 31.

	Income Statement Line Item	Three Months
		2021		2020
Valuation allowance adjustment (a)	Income Taxes	$	4	$	—
Total Special Items		$	4	$	—

79

(a)Adjustment of valuation allowances related to certain tax credits recorded in 2017 as a result of the TCJA.

The changes in the components of the Kentucky Regulated segment's results between these periods were due to the factors set forth below, which reflect amounts classified as Kentucky Adjusted Gross Margins and the items that management considers special on separate lines and not in their respective Statement of Income line items.

	Three Months
Kentucky Adjusted Gross Margins	$	23
Other operation and maintenance	(12)
Depreciation	(4)
Taxes, other than income	(1)
Other Income (Expense) - net	—
Interest Expense	11
Income Taxes	(2)
Earnings from Ongoing Operations	15
Special items, after-tax	4
Net Income	$	19

•See "Adjusted Gross Margins - Changes in Adjusted Gross Margins" for an explanation of Kentucky Adjusted Gross Margins.

•Higher other operation and maintenance expense primarily due to a $7 million increase in plant operations and maintenance and a $4 million increase in distribution operations and maintenance.

•Lower interest expense primarily due to interest costs allocated to the Kentucky Regulated segment in 2020 that were not allocated in 2021.

Pennsylvania Regulated Segment

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric. In addition, certain costs are allocated to the Pennsylvania Regulated segment. The Pennsylvania Regulated segment represents 56% of PPL's Income from Continuing Operations After Income Taxes for the three months ended March 31, 2021 and 43% of PPL's assets excluding "Current assets held for sale" at March 31, 2021.

Net Income and Earnings from Ongoing Operations for the periods ended March 31 include the following results.

	Three Months
	2021		2020		$ Change
Operating revenues	$	605	$	608	$	(3)
Energy purchases	149		144		5
Other operation and maintenance	128		137		(9)
Depreciation	108		98		10
Taxes, other than income	32		30		2
Total operating expenses	417		409		8
Other Income (Expense) - net	5		4		1
Interest Expense	43		44		(1)
Income Taxes	37		41		(4)
Net Income	113		118		(5)
Less: Special Item	(13)		—		(13)
Earnings from Ongoing Operations	$	126	$	118	$	8

The following after-tax gains (losses), which management considers special items, impacted the Pennsylvania Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended March 31.

	Income Statement Line Item	Three Months
		2021		2020
Challenge to transmission formula rate return on equity reserve, net of tax of $6 (a)	Operating revenues	$	(13)	$	—
Total Special Items		$	(13)	$	—

80

(a) Represents the portion of the reserve recognized in the March 31, 2021 Statements of Income related to the period from May 21, 2020 through December 31, 2020. See Note 7 to the Financial Statements for additional information.

The changes in the components of the Pennsylvania Regulated segment's results between these periods are due to the factors set forth below, which reflect amounts classified as Pennsylvania Adjusted Gross Margins and the items that management considers special on separate lines and not in their respective Statement of Income line items.

	Three Months
Pennsylvania Adjusted Gross Margins	$	2
Other operation and maintenance	11
Depreciation	(5)
Taxes, other than income	—
Other Income (Expense) - net	1
Interest Expense	1
Income Taxes	(2)
Earnings from Ongoing Operations	8
Special Item, after tax	(13)
Net Income	$	(5)

•See "Adjusted Gross Margins - Changes in Adjusted Gross Margins" for an explanation of Pennsylvania Adjusted Gross Margins.

•Lower other operation and maintenance expense primarily due to lower canceled project write offs.

Reconciliation of Earnings from Ongoing Operations

The following tables contain after-tax gains (losses), in total, which management considers special items, that are excluded from Earnings from Ongoing Operations and a reconciliation to PPL's "Net Income" for the periods ended March 31.

	2021 Three Months
	KY Regulated		PA Regulated		Corporate and Other		Discontinued Operations (a)		Total
Net Income	$	146	$	113	$	(56)	$	(2,043)	$	(1,840)
Less: Special Items (expense) benefit:
Income (Loss) from Discontinued Operations (a)	—		—		—		(2,047)		(2,047)
Talen litigation costs, net of tax of $1 (b)	—		—		(3)		—		(3)
Valuation allowance adjustment (c)	4		—		(4)		4		4
Challenge to transmission formula rate return on equity reserve, net of tax of $6	—		(13)		—		—		(13)
Total Special Items	4		(13)		(7)		(2,043)		(2,059)
Earnings from Ongoing Operations	$	142	$	126	$	(49)	$	—	$	219
	2020 Three Months
	KY Regulated		PA Regulated		Corporate and Other (d)		Discontinued Operations (a)		Total
Net Income	$	127	$	118	$	(41)	$	350	$	554
Less: Special Items (expense) benefit:
Income (Loss) from Discontinued Operations (a)	—		—		—		350		350
Talen litigation costs, net of tax of $1 (b)	—		—		(2)		—		(2)
Total Special Items	—		—		(2)		350		348
Earnings from Ongoing Operations	$	127	$	118	$	(39)	$	—	$	206

(a)See Note 9 to the Financial Statements for additional information.

(b)PPL incurred legal expenses related to litigation with its former affiliate, Talen Montana. See Note 11 to the Financial Statements for additional information.

(c)Adjustment of valuation allowances related to certain tax credits recorded in 2017 as a result of the TCJA.

(d)The amount for the period ended March 31, 2020 has been adjusted for certain costs that were previously included in the U.K. Regulated segment.

81

Adjusted Gross Margins

Management also utilizes the following non-GAAP financial measures as indicators of performance for its businesses:

•"Kentucky Adjusted Gross Margins" is a single financial performance measure of the electricity generation, transmission and distribution operations of the Kentucky Regulated segment, as well as the Kentucky Regulated segment's distribution and sale of natural gas. In calculating this measure, fuel, energy purchases and certain variable costs of production (recorded in "Other operation and maintenance" on the Statements of Income) are deducted from operating revenues. In addition, certain other expenses, recorded in "Other operation and maintenance," "Depreciation" and "Taxes, other than income" on the Statements of Income, associated with approved cost recovery mechanisms are offset against the recovery of those expenses, which are included in revenues. These mechanisms allow for direct recovery of these expenses and, in some cases, returns on capital investments and performance incentives. As a result, this measure represents the net revenues from electricity and gas operations.

•"Pennsylvania Adjusted Gross Margins" is a single financial performance measure of the electricity transmission and distribution operations of the Pennsylvania Regulated segment. In calculating this measure, utility revenues and expenses associated with approved recovery mechanisms, including energy provided as a PLR, are offset with minimal impact on earnings. Costs associated with these mechanisms are recorded in "Energy purchases," "Other operation and maintenance" (which are primarily Act 129, Storm Damage and Universal Service program costs), "Depreciation" (which is primarily related to the Act 129 Smart Meter program) and "Taxes, other than income" (which is primarily gross receipts tax) on the Statements of Income. This measure represents the net revenues from the Pennsylvania Regulated segment's electricity delivery operations.

These measures are not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator of overall operating performance. Other companies may use different measures to analyze and report their results of operations. Management believes these measures provide additional useful criteria to make investment decisions. These performance measures are used, in conjunction with other information, by senior management and PPL's Board of Directors to manage operations and analyze actual results compared with budget.

Changes in Adjusted Gross Margins

The following table shows Adjusted Gross Margins by PPL's reportable segment and by component, as applicable for the periods ended March 31 as well as the change between periods. The factors that gave rise to the changes are described following the table.

	Three Months
	2021		2020		$ Change
Kentucky Regulated
Kentucky Adjusted Gross Margins	$	570	$	547	$	23
Pennsylvania Regulated
Pennsylvania Adjusted Gross Margins
Distribution	$	247	$	242	$	5
Transmission	156		159		(3)
Total Pennsylvania Adjusted Gross Margins	$	403	$	401	$	2

Kentucky Adjusted Gross Margins

Kentucky Adjusted Gross Margins increased due to increased sales volumes primarily due to weather.

Pennsylvania Adjusted Gross Margins

Distribution

Distribution Adjusted Gross Margins increased primarily due to $13 million of higher sales volumes largely due to weather, partially offset by $8 million of lower returns on distribution system improvement capital investments.

82

Transmission

Transmission Adjusted Gross Margins decreased for the three months ended March 31, 2021, compared with 2020, primarily due to a $17 million decrease as a result of a lower PPL zonal peak load billing factor and $8 million due to a reserve recorded as a result of a challenge to the transmission formula rate return on equity. Partially offsetting these unfavorable items was $19 million of returns on additional transmission capital investments focused on replacing aging infrastructure and improving reliability. See Note 7 to the Financial Statements for additional information on the transmission formula rate return on equity challenge.

Reconciliation of Adjusted Gross Margins

The following tables contain the components from the Statement of Income that are included in the non-GAAP financial measures and a reconciliation to PPL's "Operating Income" for the periods ended March 31.

	2021 Three Months
	Kentucky  Adjusted Gross Margins		Pennsylvania Adjusted Gross Margins		Other (a)		Operating Income (b)
Operating Revenues	$	885	$	624	$	(11)	$	1,498
Operating Expenses
Fuel	177		—		—		177
Energy purchases	71		149		—		220
Other operation and maintenance	25		25		317		367
Depreciation	40		17		210		267
Taxes, other than income	2		30		20		52
Total Operating Expenses	315		221		547		1,083
Total	$	570	$	403	$	(558)	$	415
	2020 Three Months
	Kentucky  Adjusted Gross Margins		Pennsylvania Adjusted Gross Margins		Other (a)		Operating Income (b)
Operating Revenues	$	825	$	608	$	7	$	1,440
Operating Expenses
Fuel	163		—		—		163
Energy purchases	57		144		—		201
Other operation and maintenance	21		23		311		355
Depreciation	37		12		201		250
Taxes, other than income	—		28		19		47
Total Operating Expenses	278		207		531		1,016
Total	$	547	$	401	$	(524)	$	424

(a)Represents amounts excluded from Adjusted Gross Margins.

(b)As reported on the Statements of Income.

83

PPL Electric: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended March 31 includes the following results.

	Three Months
	2021		2020		$ Change
Operating Revenues	$	605	$	608	$	(3)
Operating Expenses
Operation
Energy purchases	149		144		5
Other operation and maintenance	128		137		(9)
Depreciation	108		98		10
Taxes, other than income	32		30		2
Total Operating Expenses	417		409		8
Other Income (Expense) - net	5		3		2
Interest Income from Affiliate	—		1		(1)
Interest Expense	43		44		(1)
Income Taxes	37		41		(4)
Net Income	$	113	$	118	$	(5)

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months
Distribution price	$	(2)
Distribution volume (a)	17
PLR (b)	6
Transmission Formula Rate (c)	(22)
Other	(2)
Total	$	(3)

(a)The increase was primarily due to favorable weather.

(b)The increase was due to favorable volumes of $32 million, partially offset by lower prices of $20 million and higher customer shopping of $6 million.

(c)The decrease was primarily due to a $27 million reserve recorded due to a challenge to the transmission formula rate return on equity and a $17 million decrease as a result of a lower PPL zonal peak load billing factor, partially offset by $19 million from returns on additional transmission capital investments. See Note 7 to the Financial Statements for additional information on the transmission formula rate return on equity challenge.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance was due to:

	Three Months
Canceled projects	$	(11)
Bad debts	(3)
Act 129	(1)
Storm costs	6
Total	$	(9)

Depreciation

Deprecation increased $10 million for the three months ended March 31, 2021 compared with 2020, primarily due to additional assets placed in service, net of retirements.

84

LKE: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended March 31 includes the following results.

	Three Months
	2021		2020		$ Change
Operating Revenues	$	885	$	825	$	60
Operating Expenses
Operation
Fuel	177		163		14
Energy purchases	71		57		14
Other operation and maintenance	220		204		16
Depreciation	156		149		7
Taxes, other than income	21		18		3
Total Operating Expenses	645		591		54
Other Income (Expense) - net	—		—		—
Interest Expense	51		58		(7)
Interest Expense with Affiliate	13		7		6
Income Taxes	30		34		(4)
Net Income	$	146	$	135	$	11

Operating Revenues

The increase in operating revenues was due to:

	Three Months
Volumes (a)	$	42
Fuel and other energy prices (b)	14
Other	4
Total	$	60

(a)The increase was primarily due to favorable weather.

(b)The increase was primarily due to higher recoveries of fuel and energy purchases due to higher commodity costs and higher off-system sales prices.

Fuel

Fuel increased $14 million for the three months ended March 31, 2021 compared with 2020, primarily due to an increase in volumes driven by weather.

Energy Purchases

Energy purchases increased $14 million for the three months ended March 31, 2021 compared with 2020, due to an $11 million increase in gas volumes driven by weather and a $3 million increase in commodity costs.

Other Operation and Maintenance

The increase in other operation and maintenance was due to:

	Three Months
Plant operations and maintenance	$	8
Transmission operations and maintenance	3
Distribution operations and maintenance	3
Other	2
Total	$	16

85

Depreciation

Depreciation increased $7 million for the three months ended March 31, 2021 compared with 2020, primarily due to additional assets placed into service, net of retirements.

LG&E: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended March 31 includes the following results.

	Three Months
	2021		2020		$ Change
Operating Revenues
Retail and wholesale	$	421	$	393	$	28
Electric revenue from affiliate	7		14		(7)
Total Operating Revenues	428		407		21
Operating Expenses
Operation
Fuel	67		74		(7)
Energy purchases	66		52		14
Energy purchases from affiliate	5		—		5
Other operation and maintenance	96		92		4
Depreciation	66		64		2
Taxes, other than income	11		10		1
Total Operating Expenses	311		292		19
Other Income (Expense) - net	(2)		(1)		(1)
Interest Expense	21		22		(1)
Income Taxes	19		19		—
Net Income	$	75	$	73	$	2

Operating Revenues

The increase (decrease) in operating revenues was due to:

	Three Months
Volumes (a)	$	13
Fuel and other energy prices (b)	10
Other	(2)
Total	$	21

(a)The increase was primarily due to weather.

(b)The increase was primarily due to higher recoveries of fuel and energy purchases due to higher commodity costs and higher off-system sales prices.

Fuel

Fuel decreased $7 million for the three months ended March 31, 2021 compared with 2020, primarily due to the timing of generation maintenance outages.

Energy Purchases

Energy purchases increased $14 million for the three months ended March 31, 2021 compared with 2020, due to an $11 million increase in gas volumes driven by weather and a $3 million increase in commodity costs.

86

Energy Purchases from affiliate

Energy purchases from affiliate increased $5 million for the three months ended March 31, 2021 compared with 2020, primarily due to the timing of generation maintenance outages.

Other Operation and Maintenance

The increase in other operation and maintenance was due to:

	Three Months
Plant operations and maintenance	$	3
Other	1
Total	$	4

KU: Statement of Income Analysis

Statement of Income Analysis

Net income for the periods ended March 31 includes the following results.

	Three Months
	2021		2020		$ Change
Operating Revenues
Retail and wholesale	$	464	$	432	$	32
Electric revenue from affiliate	5		—		5
Total Operating Revenues	469		432		37
Operating Expenses
Operation
Fuel	110		89		21
Energy purchases	5		5		—
Energy purchases from affiliate	7		14		(7)
Other operation and maintenance	115		104		11
Depreciation	89		84		5
Taxes, other than income	10		9		1
Total Operating Expenses	336		305		31
Other Income (Expense) - net	1		1		—
Interest Expense	27		28		(1)
Income Taxes	21		20		1
Net Income	$	86	$	80	$	6

Operating Revenues

The increase in operating revenues was due to:

	Three Months
Volumes (a)	$	26
Fuel and other energy prices (b)	5
Other	6
Total	$	37

(a)The increase was primarily due to weather.

(b)The increase was primarily due to higher recoveries of fuel and energy purchases due to higher commodity costs and higher off-system sales prices.

Fuel

Fuel increased $21 million for the three months ended March 31, 2021 compared with 2020, primarily due to an increase in volumes driven by weather.

87

Energy Purchases from affiliate

Energy purchases from affiliate decreased $7 million for the three months ended March 31, 2021 compared with 2020, primarily due to the timing of generation maintenance outages.

Other Operation and Maintenance

The increase in other operation and maintenance was due to:

	Three Months
Plant operations and maintenance	$	5
Transmission operations and maintenance	3
Distribution operations and maintenance	3
Total	$	11

Depreciation

Depreciation increased $5 million for the three months ended March 31, 2021 compared with 2020, primarily due to additional assets placed into service, net of retirements.

Financial Condition

The remainder of this Item 2 in this Form 10-Q is presented on a combined basis, providing information, as applicable, for all Registrants.

Liquidity and Capital Resources

(All Registrants)

The Registrants had the following at:

	PPL		PPL Electric		LKE		LG&E		KU
March 31, 2021
Cash and cash equivalents	$	421	$	29	$	16	$	7	$	8
Short-term debt	1,547		205		400		252		148
Long-term debt due within one year	976		400		476		94		132
Notes payable with affiliates			—		227		—		—
December 31, 2020
Cash and cash equivalents	$	442	$	40	$	29	$	7	$	22
Short-term debt	1,168		—		465		262		203
Long-term debt due within one year	1,074		400		674		292		132
Notes payable with affiliates			—		251		—		—

(PPL)

The Statements of Cash Flows separately report the cash flows of discontinued operations. The "Operating Activities",

"Investing Activities" and "Financing Activities" sections below include only the cash flows of continuing operations.

(All Registrants)

Net cash provided by (used in) operating, investing and financing activities for the three month periods ended March 31, and the changes between periods, were as follows.

88

	PPL		PPL Electric		LKE		LG&E		KU
2021
Operating activities	$	396	$	121	$	376	$	181	$	224
Investing activities	(472)		(222)		(238)		(111)		(127)
Financing activities	55		90		(151)		(70)		(111)
2020
Operating activities	$	413	$	132	$	320	$	171	$	193
Investing activities	(619)		(281)		(255)		(117)		(159)
Financing activities	283		(80)		(45)		(62)		(6)
Change - Cash Provided (Used)
Operating activities	$	(17)	$	(11)	$	56	$	10	$	31
Investing activities	147		59		17		6		32
Financing activities	(228)		170		(106)		(8)		(105)

Operating Activities

The components of the change in cash provided by (used in) operating activities for the three months ended March 31, 2021 compared with 2020 were as follows.

	PPL		PPL Electric		LKE		LG&E		KU
Change - Cash Provided (Used)
Net income	$	(1)	$	(5)	$	11	$	2	$	6
Non-cash components	(13)		(23)		(4)		—		(2)
Working capital	48		58		28		3		25
Defined benefit plan funding	21		—		21		3		1
Other operating activities	(72)		(41)		—		2		1
Total	$	(17)	$	(11)	$	56	$	10	$	31

(PPL)

PPL's cash provided by operating activities in 2021 decreased $17 million compared with 2020.

•Net income decreased $1 million between the periods and included a decrease in non-cash charges of $13 million. The decrease in non-cash charges was primarily due a decrease in deferred income taxes (due to book versus tax plant timing differences and Federal net operating losses) and a decrease in defined benefit plan expense partially offset by an increase in depreciation expense (primarily due to higher depreciation rates and additional assets placed into service, net of retirements).

•The $48 million increase in cash from changes in working capital was primarily due to a decrease in fuel inventory (primarily due to higher generation and natural gas consumption due to weather), a decrease in unbilled revenue (primarily due to weather), partially offset by an increase in accounts receivable (primarily due to weather, the impact of COVID-19 and timing of receipts) and an increase in regulatory assets and liabilities, net.

•The $72 million decrease in cash provided by other operating activities was driven primarily by a decrease in other assets (primarily related to pension plan assets).

(PPL Electric)

PPL Electric's cash provided by operating activities in 2021 decreased $11 million compared with 2020.

•Net income decreased $5 million between the periods and included a decrease in non-cash components of $23 million. The decrease in non-cash components was primarily due to a decrease in deferred income taxes and investment tax credits (primarily due to book versus tax plant timing differences) and a decrease in other expenses (primarily due to a decrease in canceled projects), partially offset by an increase in depreciation expense (primarily due to additional assets placed into service, net of retirements).

•The $58 million increase in cash from changes in working capital was primarily due to an increase in regulatory liabilities (primarily due to the challenge to transmission formula rate return on equity reserve and the timing of rate recovery mechanisms).

89

•The $41 million decrease in cash provided by other operating activities was driven primarily by an increase in non-current assets (primarily related to noncurrent receivables and prepayments).

(LKE)

LKE's cash provided by operating activities in 2021 increased $56 million compared with 2020.

•Net income increased $11 million between the periods and included a decrease in non-cash components of $4 million. The decrease in non-cash components was primarily driven by a decrease in deferred income tax expense (primarily due to book versus tax plant timing differences and the adjustment of valuation allowances related to certain tax credits), partially offset by an increase in depreciation expense (primarily due to additional assets placed into service, net of retirements).

•The increase in cash from changes in working capital was primarily driven by a decrease in fuel inventory (primarily due to higher generation and natural gas consumption due to weather), an increase in accounts payable (primarily due to timing of payments), a decrease in unbilled revenue (primarily due to weather), and an increase in taxes payable (primarily due to the utilization of a tax credit in the prior year), partially offset by an increase in accounts receivable (primarily due to weather and the impact of COVID-19) and a decrease in other current liabilities (primarily due to timing of payments).

•Defined benefit plan funding was $21 million lower in 2021.

(LG&E)

LG&E's cash provided by operating activities in 2021 increased $10 million compared with 2020.

•Net income increased $2 million between the periods. Non-cash components were consistent between periods.

•The increase in cash from changes in working capital was primarily due to an increase in accounts payable (primarily due to timing of payments) and a decrease in unbilled revenues (primarily due to weather), partially offset by an increase in accounts receivable (primarily due to weather and the impact of COVID-19), an increase in net regulatory assets (primarily due to the timing of rate recovery mechanisms) and a decrease in other current liabilities (primarily due to timing of payments).

(KU)

KU's cash provided by operating activities in 2021 increased $31 million compared with 2020.

•Net income increased $6 million between the periods and included a decrease in non-cash components of $2 million. The decrease in non-cash components was driven by a decrease in deferred income tax expense (primarily due to book versus tax plant timing differences), partially offset by an increase in depreciation expense (primarily due to additional assets placed into service, net of retirements).

•The increase in cash from changes in working capital was primarily due to a decrease in fuel inventory (primarily due to higher generation due to weather), a decrease in net regulatory assets (primarily due to the timing of rate recovery mechanisms), an increase in taxes payable (primarily due to an increase in taxable income), a decrease in unbilled revenue (primarily due to weather), partially offset by an increase in accounts receivable (primarily due to weather and the impact of COVID-19) and a decrease in other current liabilities (primarily due to timing of payments).

Investing Activities

(All Registrants)

The components of the change in cash provided by (used in) investing activities for the three months ended March 31, 2021 compared with 2020 were as follows.

90

	PPL		PPL Electric		LKE		LG&E		KU
Change - Cash Provided (Used)
Expenditures for PP&E	$	145	$	57	$	17	$	6	$	11
Notes receivable from affiliate	—		—		—		—		21
Other investing activities	2		2		—		—		—
Total	$	147	$	59	$	17	$	6	$	32

For PPL, the decrease in expenditures for PP&E was due to lower project expenditures at Safari Energy, PPL Electric, LKE, LG&E and KU. The decrease in expenditures at Safari Energy was primarily due to timing differences on capital spending projects. The decrease in expenditures at PPL Electric was primarily due to timing differences on capital spending projects related to the ongoing efforts to improve reliability and replace aging infrastructure. The decrease in expenditures at LKE was primarily due to decreased spending for environmental water projects at LG&E and KU's Trimble County plant, LG&E's Mill Creek plant and KU's Ghent plant, and decreased spending on various other projects at LG&E and KU that are not individually significant, partially offset by spending on ELG projects at LG&E and KU.

Financing Activities

(All Registrants)

The components of the change in cash provided by (used in) financing activities for the three months ended March 31, 2021 compared with 2020 were as follows.

	PPL		PPL Electric		LKE		LG&E		KU
Change - Cash Provided (Used)
Proceeds from project financing	$	5	$	—	$	—	$	—	$	—
Stock issuances/redemptions, net	(19)		—		—		—		—
Dividends	(3)		50		—		(31)		(19)
Capital contributions/distributions, net	—		—		(10)		(25)		(37)
Issuance of term loan	(200)		—		—		—		—
Retirement of term loan	(300)		—		—		—		—
Change in short-term debt, net	364		120		93		110		(17)
Retirement of commercial paper	(73)		—		(73)		(41)		(32)
Notes payable with affiliate	—		—		(116)		(21)		—
Other financing activities	(2)		—		—		—		—
Total	$	(228)	$	170	$	(106)	$	(8)	$	(105)

See Note 8 to the Financial Statements in this Form 10-Q for information on 2021 short-term and long-term debt activity, equity transactions and PPL dividends. See Note 8 to the Financial Statements in the Registrants' 2020 Form 10-K for information on 2020 activity.

Credit Facilities

The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. Amounts borrowed under these credit facilities are reflected in "Short-term debt" on the Balance Sheets. At March 31, 2021, the total committed borrowing capacity under credit facilities and the borrowings under these facilities were:

91

External 

	Committed Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity
PPL Capital Funding Credit Facilities	$	1,600	$	100	$	942	$	558
PPL Electric Credit Facility	650		—		206		444
LG&E Credit Facilities	500		—		252		248
KU Credit Facilities	400		—		148		252
Total LKE	900		—		400		500
Total U.S. Credit Facilities (a)	$	3,150	$	100	$	1,548	$	1,502

(a)The commitments under the U.S. credit facilities are provided by a diverse bank group, with no one bank and its affiliates providing an aggregate commitment of more than the following percentages of the total committed capacity: PPL - 6%, PPL Electric - 6%, LKE - 7%, LG&E - 7% and KU - 7%.

See Note 8 to the Financial Statements for further discussion of the Registrants' credit facilities.

Intercompany (LKE, LG&E and KU)

	Committed Capacity		Borrowed		Commercial Paper Program Capacity		Unused Capacity
LKE Credit Facility	$	375	$	227	$	—	$	148
LG&E Money Pool (a)	750		—		425		325
KU Money Pool (a)	650		—		350		300

(a)LG&E and KU participate in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E, and LKE and/or LG&E make available to KU funds up to the difference between LG&E's and KU's FERC borrowing limit and LG&E's and KU's commercial paper capacity limit, at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR.

See Note 12 to the Financial Statements for further discussion of intercompany credit facilities.

Commercial Paper (All Registrants)

PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs, as necessary. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facility. The following commercial paper programs were in place at March 31, 2021:

	Capacity		Commercial Paper Issuances		Unused Capacity
PPL Capital Funding	$	1,500	$	942	$	558
PPL Electric	650		205		445
LG&E (a)	425		252		173
KU	350		148		202
Total LKE	775		400		375
Total PPL	$	2,925	$	1,547	$	1,378

(a)In March 2021, the capacity for the LG&E commercial paper program was increased from $350 million to $425 million.

Long-term Debt (All Registrants)

See Note 8 to the Financial Statements for information regarding the Registrants’ long-term debt activities.

92

(PPL)

Equity Securities Activities

ATM

In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the three months ended March 31, 2021. The ATM program expired in February 2021.

Common Stock Dividends

In February 2021, PPL declared a quarterly common stock dividend, payable April 1, 2021, of 41.5 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.

Rating Agency Actions

(All Registrants)

Moody's and S&P periodically review the credit ratings of the debt of the Registrants and their subsidiaries. Based on their respective independent reviews, the rating agencies may make certain ratings revisions or ratings affirmations.

A credit rating reflects an assessment by the rating agency of the creditworthiness associated with an issuer and particular securities that it issues. The credit ratings of the Registrants and their subsidiaries are based on information provided by the Registrants and other sources. The ratings of Moody's and S&P are not a recommendation to buy, sell or hold any securities of the Registrants or their subsidiaries. Such ratings may be subject to revisions or withdrawal by the agencies at any time and should be evaluated independently of each other and any other rating that may be assigned to the securities.

The credit ratings of the Registrants and their subsidiaries affect their liquidity, access to capital markets and cost of borrowing under their credit facilities. A downgrade in the Registrants' or their subsidiaries' credit ratings could result in higher borrowing costs and reduced access to capital markets. The Registrants and their subsidiaries have no credit rating triggers that would result in the reduction of access to capital markets or the acceleration of maturity dates of outstanding debt.

The rating agencies have taken the following actions related to the Registrants and their subsidiaries during 2021:

(PPL)

In March 2021, Moody's revised its outlook to positive for PPL and PPL Capital Funding.

(PPL and PPL Electric)

In March 2021, S&P revised its outlook to positive for PPL Electric.

(PPL, LKE and LG&E)

In March 2021, Moody’s and S&P assigned ratings of A1 and A to the Louisville/Jefferson County Metro Government, Kentucky’s $128 million 2.00% Pollution Control Revenue Bonds, 2003 Series A, due 2033, previously issued on behalf of LG&E. The bonds were remarketed April 1, 2021.

In March 2021, Moody’s assigned a rating of A1 and in April 2021, S&P assigned a rating of A to the Louisville/Jefferson County Metro Government, Kentucky’s $35 million 1.35% Pollution Control Revenue Bonds, 2001 Series B, due 2027, previously issued on behalf of LG&E. The bonds were remarketed May 3, 2021.

93

In March 2021, Moody’s assigned a rating of A1 and in April 2021, S&P assigned a rating of A to the County of Trimble, Kentucky’s $35 million 1.35% Pollution Control Revenue Bonds, 2001 Series B, due 2027, previously issued on behalf of LG&E. The bonds were remarketed May 3, 2021.

Ratings Triggers

(PPL, LKE, LG&E and KU)

Various derivative and non-derivative contracts, including contracts for the sale and purchase of electricity and fuel, commodity transportation and storage, interest rate and foreign currency instruments (for PPL), contain provisions that require the posting of additional collateral or permit the counterparty to terminate the contract, if PPL's, LKE's, LG&E's or KU's or their subsidiaries' credit rating, as applicable, were to fall below investment grade. See Note 15 to the Financial Statements for a discussion of "Credit Risk-Related Contingent Features," including a discussion of the potential additional collateral requirements for PPL, LKE and LG&E for derivative contracts in a net liability position at March 31, 2021.

(All Registrants)

For additional information on the Registrants' liquidity and capital resources, see "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Registrants' 2020 Form 10-K.

Risk Management

Market Risk

(All Registrants)

See Notes 14 and 15 to the Financial Statements for information about the Registrants' risk management objectives, valuation techniques and accounting designations.

The forward-looking information presented below provides estimates of what may occur in the future, assuming certain adverse market conditions and model assumptions. Actual future results may differ materially from those presented. These are not precise indicators of expected future losses, but are rather only indicators of possible losses under normal market conditions at a given confidence level.

Interest Rate Risk

The Registrants and their subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. The Registrants and their subsidiaries utilize various financial derivative instruments to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of their debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under the risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolios due to changes in the absolute level of interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

94

The following interest rate hedges were outstanding at March 31, 2021.

	Exposure Hedged		Fair Value, Net - Asset (Liability) (a)		Effect of a 10% Adverse Movement in Rates (b)		Maturities Ranging Through
PPL
Cash flow hedges
Cross-currency swaps (c)	$	202	$	39	$	(27)	2028
Economic hedges
Interest rate swaps (d)	64		(18)		(1)		2033
LKE
Economic hedges
Interest rate swaps (d)	64		(18)		(1)		2033
LG&E
Economic hedges
Interest rate swaps (d)	64		(18)		(1)		2033

(a)Includes accrued interest, if applicable.

(b)Effects of adverse movements decrease assets or increase liabilities, as applicable, which could result in an asset becoming a liability. Sensitivities represent a 10% adverse movement in interest rates, except for cross-currency swaps which also includes a 10% adverse movement in foreign currency exchange rates.

(c)All cross-currency swaps are related to the U.K. utility business. Changes in the fair value of these instruments are recorded in equity and reclassified into earnings in the same period during which the item being hedged affects earnings.

(d)Realized changes in the fair value of such economic hedges are recoverable through regulated rates and any subsequent changes in the fair value of these derivatives are included in regulatory assets or regulatory liabilities.

The Registrants are exposed to a potential increase in interest expense and to changes in the fair value of their debt portfolios. The estimated impact of a 10% adverse movement in interest rates on interest expense at March 31, 2021 was insignificant for PPL, PPL Electric, LKE, LG&E and KU. The estimated impact of a 10% adverse movement in interest rates on the fair value of debt at March 31, 2021 is shown below.

	10% Adverse Movement in Rates
PPL	$	546
PPL Electric	188
LKE	221
LG&E	80
KU	127

Foreign Currency Risk (PPL)

PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions, including the anticipated sale of its U.K. utility business and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings.

The following foreign currency hedges were outstanding at March 31, 2021.

	Exposure Hedged		Fair Value, Net - Asset (Liability)		Effect of a 10% Adverse Movement in Foreign Currency Exchange Rates (a)		Maturities Ranging Through
Economic hedges (b)	£	7,493	$	(157)	$	(903)	2021

(a)Effects of adverse movements decrease assets or increase liabilities, as applicable, which could result in an asset becoming a liability.

(b)To economically hedge the translation risk of sales proceeds denominated in GBP from the anticipated sale of the U.K. utility business.

95

(All Registrants)

Commodity Price Risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is insignificant and mitigated through its PUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below.

•WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO-ED1 price control regulations, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2020 Form 10-K for additional information on revenue recognition under RIIO-ED1.

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Credit Risk (All Registrants)

See Notes 14 and 15 to the Financial Statements in this Form 10-Q and "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Risk Management - Credit Risk" in the Registrants' 2020 Form 10-K for additional information.

Foreign Currency Translation (PPL)

The value of the British pound sterling fluctuates in relation to the U.S. dollar. Changes in this exchange rate resulted in a pre-tax foreign currency translation gain of $383 million for the three months ended March 31, 2021, which primarily reflected a $662 million increase to PP&E, a $118 million increase to goodwill and a $40 million increase to other net assets, partially offset by a $363 million increase to long-term debt, a $49 million increase to deferred income taxes and a $25 million increase to long term debt due within one year. Changes in this exchange rate resulted in a pre-tax foreign currency translation loss of $63 million for the three months ended March 31, 2020, which primarily reflected a $108 million decrease to PP&E and a $20 million decrease to goodwill, partially offset by a $63 million decrease to long-term debt and a $2 million decrease to other net liabilities.

The impact of foreign currency translation is recorded in AOCI. The assets and liabilities of the U.K. utility business have been classified as held for sale. See Note 9 to the Financial Statements for additional information.

Related Party Transactions (All Registrants)

The Registrants are not aware of any material ownership interests or operating responsibility by senior management in outside partnerships, including leasing transactions with variable interest entities, or other entities doing business with the Registrants. See Note 12 to the Financial Statements for additional information on related party transactions for PPL Electric, LKE, LG&E and KU.

Acquisitions, Development and Divestitures (All Registrants)

The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with, modify or terminate the projects. Any resulting transactions may impact future financial results. See Note 9 to the Financial Statements for information on significant activities.

96

Environmental Matters (All Registrants)

Extensive federal, state and local environmental laws and regulations are applicable to PPL's, PPL Electric's, LKE's, LG&E's and KU's air emissions, water discharges and the management of hazardous and solid waste, as well as other aspects of the Registrants' businesses. The costs of compliance or alleged non-compliance cannot be predicted with certainty but could be significant. In addition, costs may increase significantly if the requirements or scope of environmental laws or regulations, or similar rules, are expanded or changed. Costs may take the form of increased capital expenditures or operating and maintenance expenses, monetary fines, penalties or other restrictions. Many of these environmental law considerations are also applicable to the operations of key suppliers, or customers, such as coal producers and industrial power users, and may impact the costs for their products or their demand for the Registrants' services. Increased capital and operating costs are subject to rate recovery. PPL, PPL Electric, LKE, LG&E and KU can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities.

See "Environmental Matters" in Item 1. "Business" in the Registrants' 2020 Form 10-K for information about environmental laws and regulations affecting the Registrants' business. See "Legal Matters" in Note 11 to the Financial Statements for a discussion of the more significant environmental claims. See "Financial Condition - Liquidity and Capital Resources - Forecasted Uses of Cash - Capital Expenditures" in "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Registrants' 2020 Form 10-K for information on projected environmental capital expenditures for 2021 through 2025. See Note 16 to the Financial Statements for information related to the impacts of CCRs on AROs.

The information below represents an update to “Item 1. Business – Environmental Matters – Air – NAAQS” and "Item 1. Business – Environmental Matters – Air – Climate Change" in the Registrants' 2020 Form 10-K.

NAAQS (PPL, LKE, LG&E and KU)

In March 2021, the EPA released final revisions to the Cross-State Air Pollution Rule (CSAPR) providing for reductions in ozone season nitrogen oxide emissions for 2021 and subsequent years from sources in 12 states, including Kentucky. Additionally, the EPA reversed its previous approval of the Kentucky State Implementation Plan with respect to these requirements. The CSAPR revisions are aimed at ensuring compliance with the 2008 ozone NAAQS, so additional nitrogen oxide emission reductions could potentially be required for compliance with the revised 2015 ozone NAAQS. PPL, LKE, LG&E and KU are currently assessing the potential impact of the CSAPR revisions on operations, but such impact is not expected to be material. Pursuant to the President’s executive order, the EPA is currently reviewing its previous determinations made in December 2020 to retain the existing NAAQS for ozone and particulate matter without change.

PPL, LKE, LG&E, and KU are unable to predict future emission reductions that may be required by future federal rules or state implementation actions. Compliance with the NAAQS, CSAPR and related requirements may require installation of additional pollution controls or other compliance actions, the costs of which PPL, LKE, LG&E and KU believe would be subject to rate recovery.

Climate Change (All Registrants)

The new U.S. presidential administration is undertaking wide-ranging efforts to address climate change. Recent government actions and policy developments, including the President’s announced goal of a carbon free electricity sector by 2035, could have far-reaching impacts on PPL’s business operations, products, and services. All of these developments are preliminary or ongoing in nature and the Registrants cannot predict their final outcome or ultimate impact on operations.

New Accounting Guidance (All Registrants)

There has been no new accounting guidance adopted in 2021 and there is no new significant accounting guidance pending adoption as of March 31, 2021.

Application of Critical Accounting Policies (All Registrants)

Financial condition and results of operations are impacted by the methods, assumptions and estimates used in the application of critical accounting policies. The following table summarizes the accounting policies by Registrant that are particularly important to an understanding of the reported financial condition or results of operations and require management to make estimates or other judgments of matters that are inherently uncertain. See "Item 7. Combined Management's Discussion and

97

Analysis of Financial Condition and Results of Operations" in the Registrants' 2020 Form 10-K for a discussion of each critical accounting policy.

		PPL
	PPL	Electric	LKE	LG&E	KU
Defined Benefits	X	X	X	X	X
Income Taxes	X	X	X	X	X
Regulatory Assets and Liabilities	X	X	X	X	X
Price Risk Management	X
Goodwill Impairment	X		X	X	X
AROs	X		X	X	X
Revenue Recognition - Unbilled Revenue			X	X	X

Following is an update to the critical accounting policies disclosed in PPL's 2020 Form 10-K.

Income Taxes (PPL)

Significant management judgment is required in developing the Registrants' provision for income taxes, primarily due to the uncertainty related to tax positions taken or expected to be taken on tax returns, valuation allowances on deferred tax assets, as well as whether the undistributed earnings of WPD are considered indefinitely reinvested.

Additionally, significant management judgment is required to determine the amount of benefit recognized related to an uncertain tax position. On a quarterly basis, uncertain tax positions are reassessed by considering information known as of the reporting date. Based on management's assessment of new information, a tax benefit may subsequently be recognized for a previously unrecognized tax position, a previously recognized tax position may be derecognized, or the benefit of a previously recognized tax position may be remeasured. The amounts ultimately paid upon resolution of issues raised by taxing authorities may differ materially from the amounts accrued and may materially impact the financial statements in the future.

The need for valuation allowances to reduce deferred tax assets also requires significant management judgment. Valuation allowances are initially recorded and reevaluated each reporting period by assessing the likelihood of the ultimate realization of a deferred tax asset. Management considers several factors in assessing the expected realization of a deferred tax asset, including the reversal of temporary differences, future taxable income and ongoing prudent and feasible tax planning strategies. Any tax planning strategy utilized in this assessment must meet the recognition and measurement criteria utilized to account for an uncertain tax position. When evaluating the need for valuation allowances, the uncertainty posed by political risk on such factors is also considered by management. The amount of deferred tax assets ultimately realized may differ materially from the estimates utilized in the computation of valuation allowances and may materially impact the financial statements in the future.

The TCJA included new provisions requiring that certain income, referred to as global intangible low-taxed income (GILTI), earned by certain foreign subsidiaries be included in the gross income of their U.S. shareholder. Accounting guidance allows a policy election regarding the timing of inclusion of GILTI in an entity’s financial statements. The election may be either to record deferred taxes for expected GILTI in future periods or record such taxes as a current-period expense when incurred. PPL has elected to record the tax effect of expected GILTI inclusions and thus, records deferred taxes relating to such inclusions.

In light of the anticipated sale of PPL's U.K. utility business and the associated classification of that business as assets held for sale, indefinite reinvestment is no longer relevant. As such, PPL expects to realize the outside book-tax basis difference in those assets in the foreseeable future. Accordingly, a deferred tax liability has been recorded reflecting the expected tax cost associated with the realization of that basis difference.

See Note 6 to the Financial Statements for income tax disclosures, including the impact of the TCJA.

98

PPL Corporation

PPL Electric Utilities Corporation

LG&E and KU Energy LLC

Louisville Gas and Electric Company

Kentucky Utilities Company

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Reference is made to "Risk Management" in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations."

Item 4. Controls and Procedures

Although the COVID-19 pandemic prompted the Registrants to make certain procedural adjustments to accommodate an increased remote workforce, PPL’s accounting and reporting systems and functions were well prepared to perform necessary accounting and reporting activities as of March 31, 2021 and to maintain the effectiveness of its disclosure controls and procedures and internal control over financial reporting.

(a) Evaluation of disclosure controls and procedures.

The Registrants' principal executive officers and principal financial officers, based on their evaluation of the Registrants' disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934) have concluded that, as of March 31, 2021, the Registrants' disclosure controls and procedures are effective to ensure that material information relating to the Registrants and their consolidated subsidiaries is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms, particularly during the period for which this quarterly report has been prepared. The principal officers have concluded that the disclosure controls and procedures are also effective to ensure that information required to be disclosed in reports filed under the Exchange Act is accumulated and communicated to management, including the principal executive and principal financial officers, to allow for timely decisions regarding required disclosure.

(b) Change in internal controls over financial reporting.

The Registrants' principal executive officers and principal financial officers have concluded that there were no changes in the Registrants' internal controls over financial reporting during the Registrants' first fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrants' internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal, tax, regulatory, environmental or other administrative proceedings that became reportable events or were pending in the first quarter of 2021 see:

•"Item 3. Legal Proceedings" in each Registrant's 2020 Form 10-K; and

•Notes 6, 7 and 11 to the Financial Statements.

Item 1A. Risk Factors

There have been no material changes in the Registrants' risk factors from those disclosed in "Item 1A. Risk Factors" of the Registrants' 2020 Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

99

Item 6. Exhibits

The following Exhibits indicated by an asterisk preceding the Exhibit number are filed herewith. The balance of the Exhibits has heretofore been filed with the Commission and pursuant to Rule 12(b)-23 are incorporated herein by reference. Exhibits indicated by a [_] are filed or listed pursuant to Item 601(b)(10)(iii) of Regulation S-K.

2(a)	-	Share Purchase Agreement, dated as of March 17, 2021, by and among PPL WPD Limited, National Grid Holdings One plc and National Grid plc. (Exhibit 2.1 to PPL Corporation Form 8-K Report (File No. 1-11459) dated March 18, 2021)
2(b)-1	-	Share Purchase Agreement, dated as of March 17, 2021, by and among PPL Energy Holdings, LLC, PPL Corporation (solely as guarantor), and National Grid USA (Exhibit 2.2 to PPL Corporation Form 8-K Report (File No. 1-11459) dated March 18, 2021)
*2(b)-2	-	Assignment and Assumption Agreement, dated as of May 3, 2021, by and among PPL Energy Holdings, LLC, PPL Corporation, National Grid USA and PPL Rhode Island Holdings, LLC
10(a)	-	£350,000,000 Facility Agreement, dated February 26, 2021, among Western Power Distribution plc, J.P. Morgan AG as Agent and the financial institutions party thereto as Original Lenders (Exhibit 10.1 to PPL Corporation Form 8-K Report (File No. 1-11459) dated March 4, 2021)
*10(b)-1	-	Amendment Letter, dated as of March 18, 2021, to the £210 million Multicurrency Revolving Credit Facility Agreement, dated January 13, 2016, among Western Power Distribution plc as the Borrower, the Co-ordinators, the Arrangers, the Original Lenders and Mizuho Bank, Ltd. as Facility Agent
*10(b)-2	-	Amendment Letter, dated as of April 7, 2021, to the £210 million Multicurrency Revolving Credit Facility Agreement, dated January 13, 2016, among Western Power Distribution plc as the Borrower, the Co-ordinators, the Arrangers, the Original Lenders and Mizuho Bank, Ltd. as Facility Agent
*10(c)	-	Amendment Letter, dated as of April 7, 2021, to the £50 million Facility Agreement, dated June 7, 2019, among Western Power Distribution plc as the Borrower and National Westminster Bank plc as the Original Lender and Agent
*10(d)	-	Amendment Letter, dated as of April 7, 2021, to the £845 million Multicurrency Revolving Facility Agreement, dated May 13, 2020, among Western Power Distribution (East Midlands) plc, Western Power Distribution (West Midlands) plc, Western Power Distribution (South West) plc, and Western Power Distribution (South Wales) plc as the Borrowers, the Joint Co-ordinators, the Bookrunners, the Arrangers, the Original Lenders and Lloyds Bank plc as Facility Agent
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended March 31, 2021, filed by the following officers for the following companies:
*31(a)	-	PPL Corporation's principal executive officer
*31(b)	-	PPL Corporation's principal financial officer
*31(c)	-	PPL Electric Utilities Corporation's principal executive officer
*31(d)	-	PPL Electric Utilities Corporation's principal financial officer
*31(e)	-	LG&E and KU Energy LLC's principal executive officer
*31(f)	-	LG&E and KU Energy LLC's principal financial officer
*31(g)	-	Louisville Gas and Electric Company's principal executive officer
*31(h)	-	Louisville Gas and Electric Company's principal financial officer
*31(i)	-	Kentucky Utilities Company's principal executive officer
*31(j)	-	Kentucky Utilities Company's principal financial officer
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended March 31, 2021, furnished by the following officers for the following companies:
*32(a)	-	PPL Corporation's principal executive officer and principal financial officer
*32(b)	-	PPL Electric Utilities Corporation's principal executive officer and principal financial officer
*32(c)	-	LG&E and KU Energy LLC's principal executive officer and principal financial officer
*32(d)	-	Louisville Gas and Electric Company's principal executive officer and principal financial officer

100

*32(e)	-	Kentucky Utilities Company's principal executive officer and principal financial officer
101.INS	-	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	-	XBRL Taxonomy Extension Schema
101.CAL	-	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	-	XBRL Taxonomy Extension Definition Linkbase
101.LAB	-	XBRL Taxonomy Extension Label Linkbase
101.PRE	-	XBRL Taxonomy Extension Presentation Linkbase
104	-	The Cover Page Interactive Data File is formatted as Inline XBRL and contained in Exhibits 101.

101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.

		PPL Corporation
		(Registrant)
Date:	May 6, 2021	/s/  Marlene C. Beers
		Marlene C. Beers Vice President and Controller
		(Principal Accounting Officer)
		PPL Electric Utilities Corporation
		(Registrant)
Date:	May 6, 2021	/s/  Stephen K. Breininger
		Stephen K. Breininger Vice President-Finance and Regulatory Affairs and Controller
		(Principal Financial Officer and Principal Accounting Officer)
		LG&E and KU Energy LLC
		(Registrant)
		Louisville Gas and Electric Company
		(Registrant)
		Kentucky Utilities Company
		(Registrant)
Date:	May 6, 2021	/s/  Kent W. Blake
		Kent W. Blake Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

102

EX-2.B2

ASSIGNMENT AND ASSUMPTION AGREEMENT This Assignment and Assumption Agreement (this “Agreement”), dated as of May 3, 2021, is entered into by and among PPL Energy Holdings, LLC, a Delaware limited liability company (“Pluto”), PPL Corporation, a Pennsylvania corporation (“Pluto Topco”), National Grid USA, a Delaware corporation, (“Newquay”) and PPL Rhode Island Holdings, LLC, a Delaware limited liability company (“Pluto RI” and together with Pluto, Pluto Topco and Newquay, the “Parties”). RECITALS WHEREAS, Pluto, Newquay and (solely with respect to Section 4.10 and Section 6.14) Pluto Topco entered into that certain Share Purchase Agreement, dated as of March 17, 2021 (the “Purchase Agreement”), relating to the purchase of common stock in The Narragansett Electric Company, a Rhode Island corporation; WHEREAS, Pluto desires for all of Pluto’s right, title and interest in, to and under Article I and Sections 3.2(a) and (b) of the Purchase Agreement (the “Specified Sections”) to be assigned, conveyed, transferred and delivered to Pluto RI, and Pluto RI desires to assume all of Pluto’s liabilities, obligations and commitments under the Specified Sections pursuant to this Agreement; and WHEREAS, in accordance with Section 11.9 of the Purchase Agreement, no Party (as defined in the Purchase Agreement) may assign its rights or obligations under the Purchase Agreement without the prior written consent of the other Party. NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned agree as follows: SECTION 1. Capitalized Terms. Capitalized terms used and not otherwise defined herein shall for all purposes of this Agreement, including the preceding recitals, have the respective meanings specified therefor in the Purchase Agreement. SECTION 2. Assignment and Assumption. Effective as of the date hereof, Pluto does hereby assign, convey, transfer and deliver to Pluto RI all of Pluto’s respective right, title and interest in, to and under the Specified Sections and Pluto does hereby assign to Pluto RI all of its liabilities, obligations and commitments under the Specified Sections. Pluto RI hereby accepts the foregoing assignment and expressly assumes, confirms and agrees to perform and observe all of the covenants, agreements, terms, conditions, obligations, duties and liabilities of Pluto under the Specified Sections, including any liabilities, obligations or commitments set forth therein. From and after the date hereof, Pluto RI is and shall be bound by, and shall enjoy the benefits of, the Specified Sections as if Pluto RI had been a party thereto in lieu of Pluto from the original execution and delivery thereof, pursuant to the terms and conditions of the Purchase Agreement. SECTION 3. Continuing Effectiveness; No Other Amendments. Except for the assignment and assumption of the Specified Sections as expressly provided in this Agreement, all of the terms and conditions of the Purchase Agreement remain in full force and effect and are hereby ratified and confirmed, including Section 6.14 of the Purchase Agreement. For the Exhibit 2(b)-2

2 hereby ratified and confirmed, including Section 6.14 of the Purchase Agreement. For the avoidance of doubt, in accordance with Section 6.14 of the Purchase Agreement, (i) Pluto Topco shall cause Pluto RI to comply with all of Pluto RI’s agreements, covenants and obligations under the Purchase Agreement, and (ii) all of Pluto RI’s agreements, covenants and obligations under the Purchase Agreement shall constitute Guaranteed Obligations guaranteed by Pluto Topco. SECTION 4. Further Assurances. Each of the Parties shall execute and deliver, at the reasonable request of the other Parties, such additional documents, instruments, conveyances and assurances and take such further actions as such other Parties may reasonably request to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement. SECTION 5. Entire Agreement. This Agreement, together with the Purchase Agreement, the Island Sale Purchase Agreement, the Transition Services Agreement and the Confidentiality Agreement and all Annexes and Exhibits hereto and thereto, embody the entire agreement of the Parties with respect to the subject matter hereof and supersede all prior agreements with respect thereto. SECTION 6. Other Terms. The provisions of Article XI of the Purchase Agreement (other than Section 11.6 of the Purchase Agreement) are incorporated herein by reference and shall apply to the terms and provisions of this Agreement and the Parties mutatis mutandis. [remainder of page intentionally left blank]

EX-10.B1

EU-DOCS\32205615.1 To: Mizuho Bank, Ltd. as Facility Agent under the Facility Agreement (as defined below) 18th March 2021 WPD plc Revolving Facility Agreement – Amendment Letter (the “Letter”) Dear All Revolving Facility Agreement dated 13 January 2016 and made between, amongst others, Western Power Distribution plc as the Borrower, the Co-ordinators, the Arrangers, the Original Lenders and Mizuho Bank, Ltd. as Facility Agent (each such term as defined therein) (as amended, restated and/or supplemented from time to time, the “Facility Agreement”) 1. INTRODUCTION 1.1 We refer to the Facility Agreement. Terms defined in the Facility Agreement (as amended pursuant to this Letter) shall have the same meaning when used in this Letter. 1.2 Clauses 1.2 (Construction) and 1.3 (Third Party Rights) of the Facility Agreement will be deemed to be set out in full in this Letter, but as if references in such clauses to the Facility Agreement were references to this Letter. 1.3 The purpose of this Letter is to make an amendment to Clauses 19.5.1 and 19.5.2 of the Facility Agreement to clarify and confirm that the negative pledge restrictions only apply to any Holding Company of a Distribution Company to the extent that such Holding Company is a member of the Group, as further set out below. 1.4 This Letter is designated as a Finance Document. 2. AMENDMENT With effect from (and including) the date of countersignature of this Letter, Clauses 19.5.1 and 19.5.2 of the Facility Agreement shall be deemed to be deleted in their entirety and replaced with the following wording: “19.5.1 Except as provided below, none of the Borrower, any Distribution Company nor any Holding Company of a Distribution Company (to the extent such Holding Company is a member of the Group) may create or allow to exist any Security Interest or Quasi-Security on any of its assets. 19.5.2 Except as provided below, none of the Borrower, any Distribution Company nor any Holding Company of a Distribution Company (to the extent such Holding Company is a member of the Group) may: (a) sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by the Borrower or any other member of the Group; (b) sell, transfer or otherwise dispose of any of its receivables on recourse terms; (c) enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or (d) enter into any other preferential arrangement having a similar effect, Exhibit 10(b)-1

EU-DOCS\32205615.1 in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.” 3. REPEATED REPRESENTATIONS 3.1 The Borrower confirms to each Finance Party that the Repeating Representations are true in all material respects on the date on which the Facility Agent countersigns this Letter by reference to the facts and circumstances then existing on such date. 3.2 References to “this Agreement” in the Repeating Representations should be construed as references to this Letter. 4. MISCELLANEOUS 4.1 Except as varied by the terms of this Letter, the Facility Agreement will remain in full force and effect and any reference in the amended Facility Agreement or to any provision of the Facility Agreement will be construed as a reference to the amended Facility Agreement, or that provision, as amended by this Letter. 4.2 This Letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Letter. 4.3 We hereby request that, by counter-signing this Letter, the Facility Agent confirms, on behalf of the Majority Lenders, that no Default or Event of Default is outstanding in relation to (i) the amendments to the Facility Agreement contemplated by clause 2 (Amendment) of this Letter or (ii) the existence of any Security Interest or Quasi-Security over any of the assets of any Holding Company of any Distribution Company that is not a member of the Group. 4.4 The provisions of Clauses 27.7 (Waivers and remedies cumulative), 33 (Severability), 35 (Notices), 37 (Governing law) and 38 (Enforcement) of the Facility Agreement apply to this Letter as though they were set out in full in this Letter but as if references in such clauses to the Facility Agreement were references to this Letter. Please sign and return to us a counterpart of this Letter as soon as possible and, in any event, by no later than 5 p.m. (London time) on 23 March 2021 in order to indicate your agreement (on behalf of the Majority Lenders) to its terms. Yours faithfully

[WPD plc RCF – Amendment Letter to the Facility Agreement] THE BORROWER For and on behalf of WESTERN POWER DISTRIBUTION PLC By : _____________________________ Name : Julie Hunt Title : Treasurer

[WPD plc RCF – Amendment Letter to the Facility Agreement] Acknowledged and accepted on behalf of the Majority Lenders: THE FACILITY AGENT For and on behalf of MIZUHO BANK, LTD. By : _____________________________ By : _____________________________ Name : Name : Title : Title :

EX-10.B2

EU-DOCS\32205615.1 To: Mizuho Bank, Ltd. as Facility Agent under the Facility Agreement (as defined below) 30 March 2021 (as updated on 7 April 2021) WPD plc Revolving Facility Agreement – Amendment Letter (the “Letter”) Dear All Revolving Facility Agreement dated 13 January 2016 and made between, amongst others, Western Power Distribution plc as the Borrower, the Co-ordinators, the Arrangers, the Original Lenders and Mizuho Bank, Ltd. as Facility Agent (each such term as defined therein) (as amended, restated and/or supplemented from time to time, the “Facility Agreement”) 1. INTRODUCTION 1.1 We refer to the Facility Agreement. Terms defined in the Facility Agreement (as amended pursuant to this Letter) shall have the same meaning when used in this Letter. 1.2 Clauses 1.2 (Construction) and 1.3 (Third Party Rights) of the Facility Agreement will be deemed to be set out in full in this Letter, but as if references in such clauses to the Facility Agreement were references to this Letter. 1.3 The purpose of this Letter is to make an amendment to Clauses 1.1 and 8.2 of the Facility Agreement, as further set out below. 1.4 This Letter is designated as a Finance Document. 2. AMENDMENT 2.1 With effect from (and including) the date of countersignature of this Letter, the below definition to be included in Clause 1.1 (Definitions): ""Acquisition" means the acquisition of the entire share capital of PPL WPD Investments Limited and its subsidiaries by National Grid Holdings One plc as announced by National Grid plc on 18 March 2021." 2.2 With effect from (and including) the date of countersignature of this Letter, Clause 8.2 of the Facility Agreement shall be deemed to be deleted in its entirety and replaced with the following wording: “8.2 Mandatory prepayment - change of control If, except to the extent of a group reorganisation where the Borrower continues to be controlled directly or indirectly by PPL Corporation or, on and following the Acquisition, National Grid plc, the Borrower becomes aware of any person (whether alone or together with any associated person or persons) gaining control of the Borrower (for these purposes "associated person" means, in relation to any person, a person who is (i) "acting in concert" (as defined in the City Code on Takeovers and Mergers) with that person or (ii) a "connected person" (as defined in section 1122 of the CTA 2010) of that person and "control" means the relevant person satisfies any of the criteria set out in paragraphs (1)(a) to (c) of Section 1159 of the Companies Act 2006): 8.2.1 within five days of such date, the Borrower shall give notice of such change of control to the Facility Agent; Exhibit 10(b)-2

EU-DOCS\32205615.1 8.2.2 the Lenders and the Borrower shall immediately enter into negotiations for a period of not more than 45 days from the date of the change of control with a view to agreeing whether the Facility shall continue to be made available and on what terms; 8.2.3 if no such agreement is reached within the said period of 45 days then: (a) any Lender may on 10 days’ notice to the Facility Agent and to the Borrower require the repayment of its share in each Loan and cancel its Commitment; or (b) the Majority Lenders may on 10 days’ notice to the Borrower require repayment in full of all outstanding Loans and cancel the Total Commitments; and 8.2.4 a Lender shall not be obliged to fund any further loans under the Facility (except for a Rollover Loan) during the negotiation period set out in sub-clause 8.2.2, and if no agreement is reached within such negotiation period, during the 10 day notice period set out in sub-clause 8.2.3.” 3. REPEATED REPRESENTATIONS 3.1 The Borrower confirms to each Finance Party that the Repeating Representations are true in all material respects on the date on which the Facility Agent countersigns this Letter by reference to the facts and circumstances then existing on such date. 3.2 References to “this Agreement” in the Repeating Representations should be construed as references to the Agreement as amended by this Letter. 4. MISCELLANEOUS 4.1 Except as varied by the terms of this Letter, the Facility Agreement will remain in full force and effect and any reference in the amended Facility Agreement or to any provision of the Facility Agreement will be construed as a reference to the amended Facility Agreement, or that provision, as amended by this Letter. 4.2 This Letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Letter. 4.3 The provisions of Clauses 27.7 (Waivers and remedies cumulative), 33 (Severability), 35 (Notices) and 38 (Enforcement) of the Facility Agreement apply to this Letter as though they were set out in full in this Letter but as if references in such clauses to the Facility Agreement were references to this Letter. 4.4 This Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. Please sign and return to us a counterpart of this Letter as soon as possible and, in any event, by no later than 5 p.m. (London time) on 12 April 2021 in order to indicate your agreement (on behalf of all Lenders) to its terms. Yours faithfully

[WPD plc RCF – Amendment Letter to the Facility Agreement] THE BORROWER For and on behalf of WESTERN POWER DISTRIBUTION PLC By : _____________________________ Name : Julie Hunt Title : Treasurer

[WPD plc RCF – Amendment Letter to the Facility Agreement] Acknowledged and accepted on behalf of all Lenders: THE FACILITY AGENT For and on behalf of MIZUHO BANK, LTD. By : _____________________________ By : _____________________________ Name : Name : Title : Title : Date : Date :

EX-10.C

EU-DOCS\32205615.1 To: National Westminster Bank PLC as Agent under the Facility Agreement (as defined below) 30 March 2021 (as updated on 7 April 2021) £50m Facility Agreement – Amendment Letter (the “Letter”) Dear All Facility Agreement dated 7 June 2019 and made between Western Power Distribution plc as the Borrower and National Westminster Bank plc as the Original Lender and Agent (each such term as defined therein) (as amended, restated and/or supplemented from time to time, the “Facility Agreement”) 1. INTRODUCTION 1.1 We refer to the Facility Agreement. Terms defined in the Facility Agreement (as amended pursuant to this Letter) shall have the same meaning when used in this Letter. 1.2 Clauses 1.2 (Construction) and 1.3 (Third Party Rights) of the Facility Agreement will be deemed to be set out in full in this Letter, but as if references in such clauses to the Facility Agreement were references to this Letter. 1.3 The purpose of this Letter is to make an amendment to Clauses 1.1 and 7.2 of the Facility Agreement, as further set out below. 1.4 This Letter is designated as a Finance Document. 2. AMENDMENT 2.1 With effect from (and including) the date of countersignature of this Letter, the below definition to be included in Clause 1.1 (Definitions): ""Acquisition" means the acquisition of the entire share capital of PPL WPD Investments Limited and its subsidiaries by National Grid Holdings One plc as announced by National Grid plc on 18 March 2021." 2.2 With effect from (and including) the date of countersignature of this Letter, Clause 7.2 of the Facility Agreement shall be deemed to be deleted in its entirety and replaced with the following wording: “7.2 Change of Control If, except to the extent of a group reorganisation where the Borrower continues to be controlled directly or indirectly by PPL Corporation or, on and following the Acquisition, National Grid plc, the Borrower becomes aware of any person (whether alone or together with any associated person or persons) gaining control of the Borrower (for these purposes "associated person" means, in relation to any person, a person who is (i) "acting in concert" (as defined in the City Code on Takeovers and Mergers) with that person or (ii) a "connected person" (as defined in section 1122 of the CTA 2010) of that person and "control" means the relevant person satisfies any of the criteria set out in paragraphs (1)(a) to (c) of Section 1159 of the Companies Act 2006): 7.2.1 within five days of such date, the Borrower shall give notice of such change of control to the Agent; Exhibit 10(c)

EU-DOCS\32205615.1 7.2.2 the Lenders and the Borrower shall immediately enter into negotiations for a period of not more than 45 days from the date of the change of control with a view to agreeing whether the Facility shall continue to be made available and on what terms; 7.2.3 if no such agreement is reached within the said period of 45 days, then any Lender may, on 10 Business Days’ notice to the Agent and to the Borrower, require the repayment of its share in the Loan and the cancellation of its Commitment; and 7.2.4 a Lender shall not be obliged to fund its participation in the Loan during the negotiation period set out in paragraph 7.2.2 above and, if no agreement is reached within such negotiation period, during the 10 Business Day notice period set out in paragraph 7.2.3 above.” 3. REPEATED REPRESENTATIONS 3.1 The Borrower confirms to each Finance Party that the Repeating Representations are true in all material respects on the date on which the Agent countersigns this Letter by reference to the facts and circumstances then existing on such date. 3.2 References to “this Agreement” in the Repeating Representations should be construed as references to the Agreement as amended by this Letter. 4. MISCELLANEOUS 4.1 Except as varied by the terms of this Letter, the Facility Agreement will remain in full force and effect and any reference in the amended Facility Agreement or to any provision of the Facility Agreement will be construed as a reference to the amended Facility Agreement, or that provision, as amended by this Letter. 4.2 This Letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Letter. 4.3 The provisions of Clauses 27.6 (Waivers and remedies cumulative), 34 (Severability), 36 (Notices), 38 (Governing law) and 39 (Enforcement) of the Facility Agreement apply to this Letter as though they were set out in full in this Letter but as if references in such clauses to the Facility Agreement were references to this Letter. 4.4 This Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. Please sign and return to us a counterpart of this Letter as soon as possible and, in any event, by no later than 5 p.m. (London time) on 12 April 2021 in order to indicate your agreement (on behalf of Majority Lenders) to its terms. Yours faithfully

[WPD plc Term Loan – Amendment Letter to the Facility Agreement] THE BORROWER For and on behalf of WESTERN POWER DISTRIBUTION PLC By : _____________________________ Name : Julie Hunt Title : Treasurer

[WPD plc Term Loan – Amendment Letter to the Facility Agreement] Acknowledged and accepted on behalf of Majority Lenders: THE AGENT For and on behalf of NATIONAL WESTMINSTER BANK PLC By : _____________________________ By : _____________________________ Name : Name : Title : Title : Date : Date : Director, Corporates & Institutions 9th April 2021 Andreas Argyrou

EX-10.D

EU-DOCS\32205615.1 To: Lloyds Bank PLC as Facility Agent under the Facility Agreement (as defined below) 30 March 2021 (as updated on 7 April 2021) £845m Revolving Facility Agreement – Amendment Letter (the “Letter”) Dear All Revolving Facility Agreement dated 13 May 2020 and made between, amongst others, Western Power Distribution (East Midlands) plc, Western Power Distribution (West Midlands) plc, Western Power Distribution (South West) plc and Western Power Distribution (South Wales) plc as the Borrowers, the Joint Co-ordinators, the Bookrunners, the Arrangers, the Original Lenders and Lloyds Bank plc as Facility Agent (each such term as defined therein) (as amended, restated and/or supplemented from time to time, the “Facility Agreement”) 1. INTRODUCTION 1.1 We refer to the Facility Agreement. Terms defined in the Facility Agreement (as amended pursuant to this Letter) shall have the same meaning when used in this Letter. 1.2 Clauses 1.2 (Construction) and 1.3 (Third Party Rights) of the Facility Agreement will be deemed to be set out in full in this Letter, but as if references in such clauses to the Facility Agreement were references to this Letter. 1.3 The purpose of this Letter is to make an amendment to Clauses 1.1 and 9.2 of the Facility Agreement, as further set out below. 1.4 This Letter is designated as a Finance Document. 2. AMENDMENT 2.1 With effect from (and including) the date of countersignature of this Letter, the below definition to be included in Clause 1.1 (Definitions): ""Acquisition" means the acquisition of the entire share capital of PPL WPD Investments Limited and its subsidiaries by National Grid Holdings One plc as announced by National Grid plc on 18 March 2021." 2.2 With effect from (and including) the date of countersignature of this Letter, Clause 9.2 of the Facility Agreement shall be deemed to be deleted in its entirety and replaced with the following wording: “9.2 Mandatory prepayment - change of control If, except in the context of a group reorganisation where each Borrower continues to be controlled directly or indirectly by PPL or, on and following the Acquisition, National Grid plc, a Borrower becomes aware of any person (whether alone or together with any associated person or persons) gaining control of that Borrower (for these purposes “associated person” means, in relation to any person, a person who is (i) “acting in concert” (as defined in the City Code on Takeovers and Mergers) with that person or (ii) a “connected” person (as defined in section 1122 of the Taxes Act) of that person and “control” means the relevant person satisfies any of the criteria set out in paragraphs (1)(a) to (c) of Section 1159 of the Companies Act 2006): 9.2.1 within five days of such date, that Borrower shall give notice of such change of control to the Facility Agent; Exhibit 10(d)

EU-DOCS\32205615.1 9.2.2 the Lenders and the relevant Borrower shall immediately enter into negotiations for a period of not more than 45 days from the date of the change of control with a view to agreeing whether the Facility shall continue to be made available and on what terms; 9.2.3 if no such agreement is reached within the said period of 45 days then: (a) any Lender may on 10 days’ notice to the Facility Agent and to the Borrower require the repayment of its share in each Loan and cancel its Commitment; or (b) the Majority Lenders may on 10 days’ notice to the Borrower require repayment in full of all outstanding Loans and cancel the Total Commitments; and 9.2.4 a Lender shall not be obliged to fund any further loans under the Facility (except for a Rollover Loan) during the negotiation period set out in sub-clause 9.2.2, and if no agreement is reached within such negotiation period, during the 10 day notice period set out in sub-clause 9.2.3.” 3. REPEATED REPRESENTATIONS 3.1 Each Borrower confirms to each Finance Party that the Repeating Representations are true in all material respects on the date on which the Facility Agent countersigns this Letter by reference to the facts and circumstances then existing on such date. 3.2 References to “this Agreement” in the Repeating Representations should be construed as references to the Agreement as amended by this Letter. 4. MISCELLANEOUS 4.1 Except as varied by the terms of this Letter, the Facility Agreement will remain in full force and effect and any reference in the amended Facility Agreement or to any provision of the Facility Agreement will be construed as a reference to the amended Facility Agreement, or that provision, as amended by this Letter. 4.2 This Letter may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Letter. 4.3 The provisions of Clauses 27.8 (Waivers and remedies cumulative), 34 (Severability), 36 (Notices) and 39 (Enforcement) of the Facility Agreement apply to this Letter as though they were set out in full in this Letter but as if references in such clauses to the Facility Agreement were references to this Letter. 4.4 This Letter and any non-contractual obligations arising out of or in connection with it are governed by English law. Please sign and return to us a counterpart of this Letter as soon as possible and, in any event, by no later than 5 p.m. (London time) on 12 April 2021 in order to indicate your agreement (on behalf of all Lenders) to its terms. Yours faithfully

[DNO RCF – Amendment Letter to the Facility Agreement] THE BORROWERS For and on behalf of WESTERN POWER DISTRIBUTION (EAST MIDLANDS) PLC By : _____________________________ Name : Julie Hunt Title : Treasurer For and on behalf of WESTERN POWER DISTRIBUTION (WEST MIDLANDS) PLC By : _____________________________ Name : Julie Hunt Title : Treasurer For and on behalf of WESTERN POWER DISTRIBUTION (SOUTH WEST) PLC By : _____________________________ Name : Julie Hunt Title : Treasurer For and on behalf of WESTERN POWER DISTRIBUTION (SOUTH WALES) PLC By : _____________________________ Name : Julie Hunt Title : Treasurer

[DNO RCF – Amendment Letter to the Facility Agreement] Acknowledged and accepted on behalf of all Lenders: THE FACILITY AGENT For and on behalf of LLOYDS BANK PLC By : _____________________________ By : _____________________________ Name : Name : Title : Title : Date : Date : JENNIFER ESPINER ASSOCIATE DIRECTOR, AGENCY 12TH APRIL 2021

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, VINCENT SORGI, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Vincent Sorgi
		Vincent Sorgi
		President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, JOSEPH P. BERGSTEIN, JR., certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Joseph P. Bergstein, Jr.
		Joseph P. Bergstein, Jr.
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

EX-31.C

Exhibit 31(c)

CERTIFICATION

I, STEPHANIE R. RAYMOND, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Stephanie R. Raymond
		Stephanie R. Raymond
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation

EX-31.D

Exhibit 31(d)

CERTIFICATION

I, STEPHEN K. BREININGER, certify that:

1.I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Stephen K. Breininger
		Stephen K. Breininger
		Vice President-Finance and Regulatory Affairs and Controller
		(Principal Financial Officer)
		PPL Electric Utilities Corporation

EX-31.E

Exhibit 31(e)

CERTIFICATION

I, PAUL W. THOMPSON, certify that:

1.I have reviewed this quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		LG&E and KU Energy LLC

EX-31.F

Exhibit 31(f)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1.I have reviewed this quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		LG&E and KU Energy LLC

EX-31.G

Exhibit 31(g)

CERTIFICATION

I, PAUL W. THOMPSON, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		Louisville Gas and Electric Company

EX-31.H

Exhibit 31(h)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		Louisville Gas and Electric Company

EX-31.I

Exhibit 31(i)

CERTIFICATION

I, PAUL W. THOMPSON, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		Kentucky Utilities Company

EX-31.J

Exhibit 31(j)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 6, 2021	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		Kentucky Utilities Company

EX-32.A

Exhibit 32(a)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

    In connection with the quarterly report on Form 10-Q of PPL Corporation (the "Company") for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Vincent Sorgi, the Principal Executive Officer of the Company, and Joseph P. Bergstein, Jr., the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2021	/s/  Vincent Sorgi
		Vincent Sorgi
		President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation
		/s/  Joseph P. Bergstein, Jr.
		Joseph P. Bergstein, Jr.
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

Exhibit 32(b)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL ELECTRIC UTILITIES CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

    In connection with the quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "Company") for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Stephanie R. Raymond, the Principal Executive Officer of the Company, and Stephen K. Breininger, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2021	/s/  Stephanie R. Raymond
		Stephanie R. Raymond
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation
		/s/  Stephen K. Breininger
		Stephen K. Breininger
		Vice President-Finance and Regulatory Affairs and Controller
		(Principal Financial Officer)
		PPL Electric Utilities Corporation

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.C

Exhibit 32(c)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR LG&E AND KU ENERGY LLC'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

    In connection with the quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "Company") for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Paul W. Thompson, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		LG&E and KU Energy LLC
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		LG&E and KU Energy LLC

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.D

Exhibit 32(d)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR LOUISVILLE GAS AND ELECTRIC COMPANY'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

    In connection with the quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "Company") for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Paul W. Thompson, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		Louisville Gas and Electric Company
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		Louisville Gas and Electric Company

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.E

Exhibit 32(e)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR KENTUCKY UTILITIES COMPANY'S FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

    In connection with the quarterly report on Form 10-Q of Kentucky Utilities Company (the "Company") for the quarter ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Paul W. Thompson, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

•The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

•The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 6, 2021	/s/  Paul W. Thompson
		Paul W. Thompson
		President and Chief Executive Officer
		(Principal Executive Officer)
		Kentucky Utilities Company
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer)
		Kentucky Utilities Company

    A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 30, 2021
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-11459
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Entity Registrant Name	PPL Corporation
Entity Tax Identification Number	23-2758192
Entity Central Index Key	0000922224
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		769,427,879
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Document Quarterly Report	true
Document Transition Report	false
Common Stock [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	Common Stock of PPL Corporation
Trading Symbol	PPL
Security Exchange Name	NYSE
2013 Series B Junior Subordinated Notes due 2073 [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	2013 Series B due 2073
Trading Symbol	PPX
Security Exchange Name	NYSE
2007 Series A Junior Subordinated Notes due 2067 [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	2007 Series A due 2067
Trading Symbol	PPL/67
Security Exchange Name	NYSE
PPL Electric Utilities Corp [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-905
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151
Amendment Flag	false
Entity Registrant Name	PPL Electric Utilities Corporation
Entity Tax Identification Number	23-0959590
Entity Central Index Key	0000317187
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		66,368,056
LG And E And KU Energy LLC [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	333-173665
Entity Incorporation, State or Country Code	KY
Entity Address, Address Line One	220 West Main Street
Entity Address, City or Town	Louisville,
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40202-1377
City Area Code	(502)
Local Phone Number	627-2000
Amendment Flag	false
Entity Registrant Name	LG&E and KU Energy LLC
Entity Tax Identification Number	20-0523163
Entity Central Index Key	0001518339
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Louisville Gas And Electric Co [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-2893
Entity Incorporation, State or Country Code	KY
Entity Address, Address Line One	220 West Main Street
Entity Address, City or Town	Louisville,
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40202-1377
City Area Code	(502)
Local Phone Number	627-2000
Amendment Flag	false
Entity Registrant Name	Louisville Gas and Electric Company
Entity Tax Identification Number	61-0264150
Entity Central Index Key	0000060549
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		21,294,223
Kentucky Utilities Co [Member]
Document Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	1-3464
Entity Incorporation, State or Country Code	KY
Entity Incorporation, State or Country Code	VA
Entity Address, Address Line One	One Quality Street
Entity Address, City or Town	Lexington,
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40507-1462
City Area Code	(502)
Local Phone Number	627-2000
Amendment Flag	false
Entity Registrant Name	Kentucky Utilities Company
Entity Tax Identification Number	61-0247570
Entity Central Index Key	0000055387
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		37,817,878

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Operating Revenues
Operating Revenues		$ 1,498	$ 1,440
Operation
Fuel		177	163
Energy purchases		220	201
Other operation and maintenance		367	355
Depreciation		267	250
Taxes, other than income		52	47
Total Operating Expenses		1,083	1,016
Operating Income		415	424
Other Income (Expense) - net		0	(5)
Interest Expense		153	154
Income from Continuing Operations Before Income Taxes		262	265
Income Taxes		59	61
Income from continuing operations after income taxes		203	204
Income (Loss) from Discontinued Operations (net of income taxes)		(2,043)	350
Net Income (Loss)		$ (1,840)	$ 554
Net Income:
Income (Loss) from Continuing Operations After Income Taxes		$ 0.26	$ 0.27
Income (loss) from Discontinued Operations (net of income taxes)		(2.65)	0.45
Net Income (Loss) Available to PPL Common Shareowners		$ (2.39)	$ 0.72
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic (in shares)		769,159	767,948
Diluted (in shares)		770,710	768,738
PPL Electric Utilities Corp [Member]
Operating Revenues
Operating Revenues		$ 605	$ 608
Operation
Energy purchases		149	144
Other operation and maintenance		128	137
Depreciation		108	98
Taxes, other than income		32	30
Total Operating Expenses		417	409
Operating Income		188	199
Other Income (Expense) - net		5	3
Interest Income from Affiliate		0	1
Interest Expense		43	44
Income from Continuing Operations Before Income Taxes		150	159
Income Taxes		37	41
Net Income (Loss)	[1]	113	118
LG And E And KU Energy LLC [Member]
Operating Revenues
Operating Revenues		885	825
Operation
Fuel		177	163
Energy purchases		71	57
Other operation and maintenance		220	204
Depreciation		156	149
Taxes, other than income		21	18
Total Operating Expenses		645	591
Operating Income		240	234
Interest Expense		51	58
Interest Expense with Affiliate		13	7
Income from Continuing Operations Before Income Taxes		176	169
Income Taxes		30	34
Net Income (Loss)	[2]	146	135
Louisville Gas And Electric Co [Member]
Operating Revenues
Retail and wholesale		421	393
Electric revenue from affiliate		7	14
Operating Revenues		428	407
Operation
Fuel		67	74
Energy purchases		66	52
Energy purchases from affiliate		5	0
Other operation and maintenance		96	92
Depreciation		66	64
Taxes, other than income		11	10
Total Operating Expenses		311	292
Operating Income		117	115
Other Income (Expense) - net		(2)	(1)
Interest Expense		21	22
Income from Continuing Operations Before Income Taxes		94	92
Income Taxes		19	19
Net Income (Loss)	[3]	75	73
Kentucky Utilities Co [Member]
Operating Revenues
Retail and wholesale		464	432
Electric revenue from affiliate		5	0
Operating Revenues		469	432
Operation
Fuel		110	89
Energy purchases		5	5
Energy purchases from affiliate		7	14
Other operation and maintenance		115	104
Depreciation		89	84
Taxes, other than income		10	9
Total Operating Expenses		336	305
Operating Income		133	127
Other Income (Expense) - net		1	1
Interest Expense		27	28
Income from Continuing Operations Before Income Taxes		107	100
Income Taxes		21	20
Net Income (Loss)	[4]	$ 86	$ 80

[1] Net income equals comprehensive income.

[2] Net income approximates comprehensive income.

[3] Net income equals comprehensive income.

[4] Net income equals comprehensive income.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Net income (loss)		$ (1,840)	$ 554
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Foreign currency translation adjustments, net of tax		303	(61)
Qualifying derivatives, net of tax		(30)	8
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Qualifying derivatives, net of tax		25	(3)
Other Comprehensive (Income) Loss, Defined Benefit Plans, after Reclassification Adjustment, after Tax [Abstract]
Defined benefit plans, Prior service costs, net of tax		0	1
Defined benefit plans, Net actuarial (gain) loss, net of tax		40	47
Total other comprehensive income (loss)		338	(8)
Comprehensive income (loss)		(1,502)	546
LG And E And KU Energy LLC [Member]
Net income (loss)	[1]	146	135
Other Comprehensive (Income) Loss, Defined Benefit Plans, after Reclassification Adjustment, after Tax [Abstract]
Total other comprehensive income (loss)		$ 3	$ 1

[1] Net income approximates comprehensive income.

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Tax effect of foreign currency translation adjustments arising during the period	$ (80)	$ 0
Tax effect of qualifying derivatives arising during the period	16	(2)
Tax effect of qualifying derivatives reclassified from AOCI	(14)	0
Other Comprehensive (Income) Loss, Defined Benefit Plans, Prior Service Costs (Credit), Reclassification Adjustment from AOCI, Tax	0	0
Other Comprehensive (Income) Loss, Defined Benefit Plans, Net Actuarial Gain(Loss), Reclassification Adjustment from AOCI, Tax	$ (22)	$ (12)

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net income (loss)		$ (1,840)	$ 554
Loss (income) from discontinued operations (net of income taxes)		2,043	(350)
Income from continuing operations (net of income taxes)		203	204
Depreciation		267	250
Amortization		11	9
Defined benefit plans - (income) expense		4	9
Deferred income taxes and investment tax credits		50	75
Unrealized (gains) losses on derivatives, and other hedging activities		0	(4)
Stock-based compensation expense		6	6
Other		(5)	1
Change in current assets and current liabilities
Accounts receivable		(60)	0
Accounts payable		(42)	(42)
Unbilled revenues		76	62
Fuel, materials and supplies		41	12
Prepayments		(76)	(75)
Regulatory assets and liabilities, net		29	(25)
Accrued interest		69	66
Other current liabilities		(103)	(132)
Other		2	22
Other operating activities
Defined benefit plans - funding		(33)	(54)
Other assets		(74)	42
Other liabilities		31	(13)
Net cash provided by operating activities - continuing operations		396	413
Net cash provided by operating activities - discontinued operations		267	279
Net cash provided by operating activities		663	692
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(471)	(616)
Other investing activities		(1)	(3)
Net cash used in investing activities - continuing operations		(472)	(619)
Net cash used in investing activities - discontinued operations		(263)	(214)
Net cash used in investing activities		(735)	(833)
Cash Flows from Financing Activities
Proceeds from project financing		5	0
Issuance of common stock		1	20
Payment of common stock dividends		(320)	(317)
Issuance of term loan		0	200
Retirement of term loan		(300)	0
Retirement of commercial paper		(73)	0
Net increase (decrease) in short-term debt		752	388
Other financing activities		(10)	(8)
Net cash provided by financing activities - continuing operations		55	283
Net cash used in financing activities - discontinued operations		(126)	(43)
Net cash provided by (used in) financing activities		(71)	240
Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash included in Discontinued Operations		8	1
Net (Increase) Decrease in Cash, Cash Equivalents and Restricted Cash included in Discontinued Operations		114	(23)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(21)	77
Cash and Cash Equivalents at Beginning of Period		442
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		443	660
Cash and Cash Equivalents at End of Period		421
Cash, Cash Equivalents and Restricted Cash at End of Period		422	737
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at March 31,		229	237
PPL Electric Utilities Corp [Member]
Cash Flows from Operating Activities
Net income (loss)	[1]	113	118
Depreciation		108	98
Amortization		6	5
Defined benefit plans - (income) expense		(3)	(1)
Deferred income taxes and investment tax credits		13	32
Other		(4)	9
Change in current assets and current liabilities
Accounts receivable		(37)	(26)
Accounts payable		(9)	(20)
Unbilled revenues		37	34
Prepayments		(78)	(76)
Regulatory assets and liabilities, net		39	(11)
Other		(14)	(21)
Other operating activities
Defined benefit plans - funding		(21)	(21)
Other assets		(27)	4
Other liabilities		(2)	8
Net cash provided by operating activities		121	132
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(223)	(280)
Expenditures for intangible assets		(1)	(1)
Other investing activities		2	0
Net cash used in investing activities		(222)	(281)
Cash Flows from Financing Activities
Payment of common stock dividends to parent		(115)	(165)
Net increase (decrease) in short-term debt		205	85
Net cash provided by (used in) financing activities		90	(80)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		(11)	(229)
Cash and Cash Equivalents at Beginning of Period		40
Cash, Cash Equivalents and Restricted Cash at Beginning of Period		40	264
Cash and Cash Equivalents at End of Period		29
Cash, Cash Equivalents and Restricted Cash at End of Period		29	35
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at March 31,		143	158
LG And E And KU Energy LLC [Member]
Cash Flows from Operating Activities
Net income (loss)	[2]	146	135
Depreciation		156	149
Amortization		4	4
Defined benefit plans - (income) expense		5	5
Deferred income taxes and investment tax credits		20	31
Change in current assets and current liabilities
Accounts receivable		3	20
Accounts payable		(4)	(18)
Accounts payable to affiliates		9	1
Unbilled revenues		39	27
Fuel, materials and supplies		42	24
Regulatory assets and liabilities, net		(10)	(14)
Taxes payable		(18)	(27)
Accrued interest		45	51
Other		(51)	(37)
Other operating activities
Defined benefit plans - funding		(2)	(23)
Expenditures for asset retirement obligations		(15)	(15)
Other assets		1	1
Other liabilities		6	6
Net cash provided by operating activities		376	320
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(238)	(255)
Net cash used in investing activities		(238)	(255)
Cash Flows from Financing Activities
Net increase in notes payable with affiliate		(24)	92
Distributions to member		(62)	(52)
Retirement of commercial paper		(73)	0
Net increase (decrease) in short-term debt		8	(85)
Net cash provided by (used in) financing activities		(151)	(45)
Cash and Cash Equivalents, Period Increase (Decrease)		(13)	20
Cash and Cash Equivalents at Beginning of Period		29	27
Cash and Cash Equivalents at End of Period		16	47
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at March 31,		86	78
Louisville Gas And Electric Co [Member]
Cash Flows from Operating Activities
Net income (loss)	[3]	75	73
Depreciation		66	64
Amortization		2	2
Defined benefit plans - (income) expense		1	1
Deferred income taxes and investment tax credits		(1)	1
Change in current assets and current liabilities
Accounts receivable		(1)	14
Accounts receivable from affiliates		(3)	(6)
Accounts payable		8	(12)
Accounts payable to affiliates		(5)	(4)
Unbilled revenues		19	11
Fuel, materials and supplies		28	27
Regulatory assets and liabilities, net		(10)	(2)
Taxes payable		4	2
Accrued interest		18	18
Other		(17)	(10)
Other operating activities
Defined benefit plans - funding		(1)	(4)
Expenditures for asset retirement obligations		(6)	(4)
Other assets		0	(1)
Other liabilities		4	1
Net cash provided by operating activities		181	171
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(111)	(117)
Net cash used in investing activities		(111)	(117)
Cash Flows from Financing Activities
Net increase in notes payable with affiliate		0	21
Retirement of commercial paper		(41)	0
Payment of common stock dividends to parent		(60)	(29)
Net increase (decrease) in short-term debt		31	(79)
Contributions from parent		0	25
Net cash provided by (used in) financing activities		(70)	(62)
Cash and Cash Equivalents, Period Increase (Decrease)		0	(8)
Cash and Cash Equivalents at Beginning of Period		7	15
Cash and Cash Equivalents at End of Period		7	7
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at March 31,		46	39
Kentucky Utilities Co [Member]
Cash Flows from Operating Activities
Net income (loss)	[4]	86	80
Depreciation		89	84
Amortization		2	3
Deferred income taxes and investment tax credits		(2)	4
Change in current assets and current liabilities
Accounts receivable		2	6
Accounts receivable from affiliates		1	0
Accounts payable		(7)	(2)
Accounts payable to affiliates		2	(3)
Unbilled revenues		20	16
Fuel, materials and supplies		15	(3)
Regulatory assets and liabilities, net		0	(12)
Taxes payable		13	6
Accrued interest		25	25
Other		(17)	(4)
Other operating activities
Defined benefit plans - funding		0	(1)
Expenditures for asset retirement obligations		(9)	(11)
Other assets		0	3
Other liabilities		4	2
Net cash provided by operating activities		224	193
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(127)	(138)
Net (increase) decrease in notes receivable from affiliate		0	(21)
Net cash used in investing activities		(127)	(159)
Cash Flows from Financing Activities
Retirement of commercial paper		(32)	0
Payment of common stock dividends to parent		(56)	(37)
Net increase (decrease) in short-term debt		(23)	(6)
Contributions from parent		0	37
Net cash provided by (used in) financing activities		(111)	(6)
Cash and Cash Equivalents, Period Increase (Decrease)		(14)	28
Cash and Cash Equivalents at Beginning of Period		22	12
Cash and Cash Equivalents at End of Period		8	40
Supplemental Disclosures of Cash Flow Information
Accrued expenditures for property, plant and equipment at March 31,		$ 40	$ 39

[1] Net income equals comprehensive income.

[2] Net income approximates comprehensive income.

[3] Net income equals comprehensive income.

[4] Net income equals comprehensive income.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions		Mar. 31, 2021	Dec. 31, 2020
Assets, Current [Abstract]
Cash and cash equivalents		$ 421	$ 442
Accounts receivable (less reserve:)
Customer		634	603
Other		77	86
Unbilled revenues		225	301
Fuel, materials and supplies		260	302
Prepayments		132	53
Regulatory assets		121	99
Other current assets		32	31
Current assets held for sale		18,425	18,983
Total Current Assets		20,327	20,900
Property, Plant and Equipment
Regulated utility plant		29,354	29,040
Less:  accumulated depreciation - regulated utility plant		6,156	6,008
Regulated utility plant, net		23,198	23,032
Non-regulated property, plant and equipment		245	237
Less:  accumulated depreciation - non-regulated property, plant and equipment		38	37
Non-regulated property, plant and equipment, net		207	200
Construction work in progress		1,292	1,268
Property, Plant and Equipment, net		24,697	24,500
Other Noncurrent Assets
Regulatory assets		1,233	1,262
Goodwill		716	716
Other intangibles		348	351
Pension benefit asset		67	24
Other noncurrent assets		393	363
Total Other Noncurrent Assets		2,757	2,716
Total Assets		47,781	48,116
Current Liabilities
Short-term debt		1,547	1,168
Long-term debt due within one year		976	1,074
Accounts payable		660	745
Taxes		45	69
Interest		182	113
Dividends		320	319
Regulatory liabilities		130	79
Other current liabilities		387	465
Current liabilities held for sale		11,376	11,023
Total Current Liabilities		15,623	15,055
Long-term Debt
Long-term Debt		13,715	13,615
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		3,370	2,536
Investment tax credits		121	122
Accrued pension obligations		183	189
Asset retirement obligations		130	132
Regulatory liabilities		2,526	2,530
Other deferred credits and noncurrent liabilities		559	564
Total Deferred Credits and Other Noncurrent Liabilities		6,889	6,073
Commitments and Contingent Liabilities
Equity
Common stock	[1]	8	8
Additional paid-in capital		12,273	12,270
Earnings reinvested		3,155	5,315
Accumulated other comprehensive loss		(3,882)	(4,220)
Total Equity		11,554	13,373
Total Liabilities and Equity		47,781	48,116
PPL Electric Utilities Corp [Member]
Assets, Current [Abstract]
Cash and cash equivalents		29	40
Accounts receivable (less reserve:)
Customer		346	311
Other		19	17
Accounts receivable from affiliates		10	10
Unbilled revenues		84	121
Fuel, materials and supplies		59	59
Prepayments		87	9
Regulatory assets		47	40
Other current assets		15	13
Total Current Assets		696	620
Property, Plant and Equipment
Regulated utility plant		13,680	13,514
Less:  accumulated depreciation - regulated utility plant		3,348	3,297
Regulated utility plant, net		10,332	10,217
Construction work in progress		588	592
Property, Plant and Equipment, net		10,920	10,809
Other Noncurrent Assets
Regulatory assets		525	541
Other intangibles		268	268
Pension benefit asset		42	12
Other noncurrent assets		103	74
Total Other Noncurrent Assets		938	895
Total Assets		12,554	12,324
Current Liabilities
Short-term debt		205	0
Long-term debt due within one year		400	400
Accounts payable		375	428
Accounts payable to affiliates		71	39
Taxes		10	17
Interest		45	39
Regulatory liabilities		114	68
Other current liabilities		94	105
Total Current Liabilities		1,314	1,096
Long-term Debt
Long-term Debt		3,837	3,836
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,579	1,559
Accrued pension obligations		8	8
Regulatory liabilities		573	578
Other deferred credits and noncurrent liabilities		121	123
Total Deferred Credits and Other Noncurrent Liabilities		2,281	2,268
Commitments and Contingent Liabilities
Equity
Common stock	[2]	364	364
Additional paid-in capital		3,753	3,753
Earnings reinvested		1,005	1,007
Total Equity		5,122	5,124
Total Liabilities and Equity		12,554	12,324
LG And E And KU Energy LLC [Member]
Assets, Current [Abstract]
Cash and cash equivalents		16	29
Accounts receivable (less reserve:)
Customer		282	283
Other		52	69
Unbilled revenues		137	176
Fuel, materials and supplies		200	242
Prepayments		27	30
Regulatory assets		74	59
Other current assets		1	4
Total Current Assets		789	892
Property, Plant and Equipment
Regulated utility plant		15,706	15,557
Less:  accumulated depreciation - regulated utility plant		2,816	2,717
Regulated utility plant, net		12,890	12,840
Construction work in progress		669	640
Property, Plant and Equipment, net		13,559	13,480
Other Noncurrent Assets
Regulatory assets		708	721
Goodwill		996	996
Other intangibles		59	61
Other noncurrent assets		127	127
Total Other Noncurrent Assets		1,890	1,905
Total Assets		16,238	16,277
Current Liabilities
Short-term debt		400	465
Long-term debt due within one year		476	674
Notes payable with affiliates		227	251
Accounts payable		261	294
Accounts payable to affiliates		25	16
Taxes		53	71
Price risk management liabilities		1	2
Interest		82	37
Current Customer Deposits		64	64
Regulatory liabilities		16	11
Asset retirement obligations		41	50
Other current liabilities		108	162
Total Current Liabilities		1,754	2,097
Long-term Debt
Long-term debt		4,399	4,200
Long-term debt to affiliate		1,200	1,200
Long-term Debt		5,599	5,400
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,208	1,175
Investment tax credits		121	121
Accrued pension obligations		106	112
Asset retirement obligations		130	132
Regulatory liabilities		1,953	1,952
Price risk management liabilities		16	21
Other deferred credits and noncurrent liabilities		148	151
Total Deferred Credits and Other Noncurrent Liabilities		3,682	3,664
Commitments and Contingent Liabilities
Equity
Member's Equity		5,203	5,116
Total Liabilities and Equity		16,238	16,277
Louisville Gas And Electric Co [Member]
Assets, Current [Abstract]
Cash and cash equivalents		7	7
Accounts receivable (less reserve:)
Customer		129	127
Other		25	35
Accounts receivable from affiliates		19	16
Unbilled revenues		60	79
Fuel, materials and supplies		91	119
Prepayments		13	14
Regulatory assets		36	23
Other current assets		1	1
Total Current Assets		381	421
Property, Plant and Equipment
Regulated utility plant		6,805	6,735
Less:  accumulated depreciation - regulated utility plant		1,056	1,020
Regulated utility plant, net		5,749	5,715
Construction work in progress		319	320
Property, Plant and Equipment, net		6,068	6,035
Other Noncurrent Assets
Regulatory assets		339	351
Goodwill		389	389
Other intangibles		34	35
Other noncurrent assets		117	114
Total Other Noncurrent Assets		879	889
Total Assets		7,328	7,345
Current Liabilities
Short-term debt		252	262
Long-term debt due within one year		94	292
Accounts payable		137	153
Accounts payable to affiliates		27	31
Taxes		36	32
Price risk management liabilities		1	2
Interest		33	15
Current Customer Deposits		31	32
Regulatory liabilities		3	0
Asset retirement obligations		14	10
Other current liabilities		33	50
Total Current Liabilities		661	879
Long-term Debt
Long-term Debt		1,913	1,715
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		719	716
Investment tax credits		33	33
Asset retirement obligations		48	57
Regulatory liabilities		881	882
Price risk management liabilities		16	21
Other deferred credits and noncurrent liabilities		94	94
Total Deferred Credits and Other Noncurrent Liabilities		1,791	1,803
Commitments and Contingent Liabilities
Equity
Common stock	[3]	424	424
Additional paid-in capital		1,923	1,923
Earnings reinvested		616	601
Total Equity		2,963	2,948
Total Liabilities and Equity		7,328	7,345
Kentucky Utilities Co [Member]
Assets, Current [Abstract]
Cash and cash equivalents		8	22
Accounts receivable (less reserve:)
Customer		153	156
Other		25	30
Accounts receivable from affiliates		0	1
Unbilled revenues		77	97
Fuel, materials and supplies		109	123
Prepayments		13	15
Regulatory assets		38	36
Other current assets		0	1
Total Current Assets		423	481
Property, Plant and Equipment
Regulated utility plant		8,886	8,808
Less:  accumulated depreciation - regulated utility plant		1,753	1,690
Regulated utility plant, net		7,133	7,118
Construction work in progress		350	321
Property, Plant and Equipment, net		7,483	7,439
Other Noncurrent Assets
Regulatory assets		369	370
Goodwill		607	607
Other intangibles		25	26
Other noncurrent assets		153	149
Total Other Noncurrent Assets		1,154	1,152
Total Assets		9,060	9,072
Current Liabilities
Short-term debt		148	203
Long-term debt due within one year		132	132
Accounts payable		109	121
Accounts payable to affiliates		46	43
Taxes		42	29
Interest		44	19
Current Customer Deposits		33	32
Regulatory liabilities		13	11
Asset retirement obligations		27	40
Other current liabilities		40	59
Total Current Liabilities		634	689
Long-term Debt
Long-term Debt		2,486	2,486
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		839	835
Investment tax credits		88	88
Asset retirement obligations		82	75
Regulatory liabilities		1,072	1,070
Other deferred credits and noncurrent liabilities		47	47
Total Deferred Credits and Other Noncurrent Liabilities		2,128	2,115
Commitments and Contingent Liabilities
Equity
Common stock	[4]	308	308
Additional paid-in capital		2,857	2,857
Earnings reinvested		647	617
Total Equity		3,812	3,782
Total Liabilities and Equity		$ 9,060	$ 9,072

[1] 1,560,000 shares authorized; 769,427 and 768,907 shares issued and outstanding at March 31, 2021 and December 31, 2020.

[2] 170,000 shares authorized; 66,368 shares issued and outstanding at March 31, 2021 and December 31, 2020.

[3] 75,000 shares authorized; 21,294 shares issued and outstanding at March 31, 2021 and December 31, 2020.

[4] 80,000 shares authorized; 37,818 shares issued and outstanding at March 31, 2021 and December 31, 2020.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 72	$ 71
Unbilled revenues, reserve	$ 3	$ 4
Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	1,560,000	1,560,000
Common stock shares issued (in shares)	769,427	768,907
Common stock shares outstanding (in shares)	769,427	768,907
PPL Electric Utilities Corp [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 41	$ 41
Unbilled revenues, reserve	$ 1	$ 2
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	170,000	170,000
Common stock shares issued (in shares)	66,368	66,368
Common stock shares outstanding (in shares)	66,368	66,368
LG And E And KU Energy LLC [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 30	$ 30
Unbilled revenues, reserve	2	2
Louisville Gas And Electric Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	2	2
Unbilled revenues, reserve	$ 1	$ 1
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	75,000	75,000
Common stock shares issued (in shares)	21,294	21,294
Common stock shares outstanding (in shares)	21,294	21,294
Kentucky Utilities Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 1	$ 1
Unbilled revenues, reserve	$ 1		$ 1
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	80,000	80,000
Common stock shares issued (in shares)	37,818	37,818
Common stock shares outstanding (in shares)	37,818	37,818

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Millions		Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock [Member]		Additional Paid-in Capital [Member]	Earnings Reinvested [Member]	Earnings Reinvested [Member] Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss [Member]	PPL Electric Utilities Corp [Member]		PPL Electric Utilities Corp [Member] Common Stock [Member]		PPL Electric Utilities Corp [Member] Additional Paid-in Capital [Member]	PPL Electric Utilities Corp [Member] Earnings Reinvested [Member]	LG And E And KU Energy LLC [Member]		Louisville Gas And Electric Co [Member]		Louisville Gas And Electric Co [Member] Common Stock [Member]		Louisville Gas And Electric Co [Member] Additional Paid-in Capital [Member]	Louisville Gas And Electric Co [Member] Earnings Reinvested [Member]	Kentucky Utilities Co [Member]		Kentucky Utilities Co [Member] Common Stock [Member]		Kentucky Utilities Co [Member] Additional Paid-in Capital [Member]	Kentucky Utilities Co [Member] Earnings Reinvested [Member]
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.415
Balance at beginning of period - shares at Dec. 31, 2019				767,233,000	[1]							66,368,000	[2]							21,294,000	[3]					37,818,000	[4]
Balance at beginning of period at Dec. 31, 2019		$ 12,991		$ 8		$ 12,214	$ 5,127		$ (4,358)	$ 4,832		$ 364		$ 3,558	$ 910			$ 2,762		$ 424		$ 1,820	$ 518	$ 3,574		$ 308		$ 2,729	$ 537
Balance at beginning of period at Dec. 31, 2019																$ 4,942
Common stock shares issued	[1]			1,033,000
Common stock issued		34				34
Stock-based compensation		(9)				(9)
Net income (loss)		554					554			118	[5]				118	135	[6]	73	[7]				73	80	[8]				80
Capital contributions from parent																		25				25		37				37
Dividends and dividend equivalents	[9]	(319)					(319)
Dividends declared on common stock										(165)					(165)			(29)					(29)	(37)					(37)
Distributions to member																(52)
Other comprehensive income (loss)		(8)							(8)							1
Balance at end of period - shares at Mar. 31, 2020				768,266,000	[1]							66,368,000	[2]							21,294,000	[3]					37,818,000	[4]
Balance at end of period at Mar. 31, 2020		$ 13,241		$ 8		12,239	5,360		(4,366)	$ 4,785		$ 364		3,558	863			2,831		$ 424		1,845	562	3,654		$ 308		2,766	580
Balance at end of period at Mar. 31, 2020																5,026
Contributions from parent																		$ 25						$ 37
Cumulative Effect of New Accounting Principle in Period of Adoption			$ (2)					$ (2)
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.415
Balance at beginning of period - shares at Dec. 31, 2020		768,907,000		768,907,000	[1]					66,368,000		66,368,000	[2]					21,294,000		21,294,000	[3]			37,818,000		37,818,000	[4]
Balance at beginning of period at Dec. 31, 2020		$ 13,373		$ 8		12,270	5,315		(4,220)	$ 5,124		$ 364		3,753	1,007			$ 2,948		$ 424		1,923	601	$ 3,782		$ 308		2,857	617
Balance at beginning of period at Dec. 31, 2020																5,116
Common stock shares issued		0		520,000
Common stock issued		$ 16				16
Stock-based compensation		(13)				(13)
Net income (loss)		(1,840)					(1,840)			113	[5]				113	146	[6]	75	[7]				75	86	[8]				86
Dividends and dividend equivalents	[9]	(320)					(320)
Dividends declared on common stock										$ (115)					(115)			$ (60)					(60)	$ (56)					(56)
Distributions to member																(62)
Other comprehensive income (loss)		$ 338							338							3
Balance at end of period - shares at Mar. 31, 2021		769,427,000		769,427,000						66,368,000		66,368,000	[2]					21,294,000		21,294,000	[3]			37,818,000		37,818,000	[4]
Balance at end of period at Mar. 31, 2021		$ 11,554		$ 8		$ 12,273	$ 3,155		$ (3,882)	$ 5,122		$ 364		$ 3,753	$ 1,005			$ 2,963		$ 424		$ 1,923	$ 616	$ 3,812		$ 308		$ 2,857	$ 647
Balance at end of period at Mar. 31, 2021																$ 5,203
Contributions from parent																		$ 0						$ 0

[1] Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

[2] Shares in thousands. All common shares of PPL Electric stock are owned by PPL.

[3] Shares in thousands. All common shares of LG&E stock are owned by LKE.

[4] Shares in thousands. All common shares of KU stock are owned by LKE.

[5] Net income equals comprehensive income.

[6] Net income approximates comprehensive income.

[7] Net income equals comprehensive income.

[8] Net income equals comprehensive income.

[9] Dividends declared per share of common stock were $0.415 for the three months ended March 31, 2021 and March 31, 2020.

XML

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - vote	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Vote per share of PPL's common stock	1	1

XML

Segment and Related Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment and Related Information

3. Segment and Related Information

(PPL)

See Note 2 in PPL's 2020 Form 10-K for a discussion of reportable segments and related information.

On March 17, 2021, PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business, which substantially represents PPL's U.K. Regulated segment. As a result of this strategic shift in the operations of the business, PPL will no longer provide segment information for the U.K. Regulated segment. See Note 9 for additional information.

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are as follows:

	Three Months
	2021		2020
Operating Revenues from external customers
Kentucky Regulated	$	885	$	825
Pennsylvania Regulated	605		608
Corporate and Other	8		7
Total	$	1,498	$	1,440
Net Income
Kentucky Regulated (a)	$	146	$	127
Pennsylvania Regulated (a)	113		118
Corporate and Other (a)	(56)		(41)
Discontinued Operations (b)	(2,043)		350
Total	$	(1,840)	$	554

(a)For the period ended March 31, 2020, corporate level financing costs of $8 million, net of $2 million of income taxes, and an immaterial amount were allocated to the Kentucky Regulated and Pennsylvania Regulated segments. Beginning in 2021, corporate level financing costs will no longer be allocated to the reportable segments and are being reported in Corporate and Other.

(b)Includes unrealized gains and losses from hedging foreign currency economic activity. See Note 9 for additional information.

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	March 31, 2021		December 31, 2020
Assets
Kentucky Regulated	$	15,904	$	15,943
Pennsylvania Regulated	12,585		12,347
Corporate and Other (a)	867		843
Assets Held for Sale (b)	18,425		18,983
Total	$	47,781	$	48,116

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill, the elimination of inter-segment transactions as well as the assets of Safari Energy.

(b)See Note 9 for additional information.

(PPL Electric, LKE, LG&E and KU)

PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. LKE, LG&E and KU are individually single operating and reportable segments.

XML

Earnings Per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive share-based payment awards were converted to common shares as calculated using the Two-Class Method or Treasury Stock Method.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended March 31 used in the EPS calculation are:

	Three Months
	2021		2020
Income (Numerator)
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	203	$	204
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	(2,043)	$	350
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	(1,840)	$	554
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	769,159		767,948
Add: Dilutive share-based payment awards	1,551		790
Weighted-average shares - Diluted EPS	770,710		768,738
Basic and Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.26	$	0.27
Income (loss) from discontinued operations (net of income taxes)	(2.65)		0.45
Net Income (Loss) available to PPL common shareowners	$	(2.39)	$	0.72

For the periods ended March 31, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months
	2021	2020
Stock-based compensation plans	520	598
DRIP	—	434

For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months
	2021	2020
Stock-based compensation awards	233	250

XML

Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

6. Income Taxes

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(PPL)
	Three Months
	2021		2020
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 21%	$	55	$	56
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Valuation allowance adjustments	8		6
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(12)		(11)
Other	(2)		(1)
Total increase (decrease)	4		5
Total income tax expense (benefit)	$	59	$	61

(PPL Electric)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	32	$	33
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		—
Total increase (decrease)	5		8
Total income tax expense (benefit)	$	37	$	41

(LKE)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	37	$	35
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	7		7
Valuation allowance adjustments	(4)		—
Amortization of excess deferred federal and state income taxes	(7)		(7)
Other	(3)		(1)
Total increase (decrease)	(7)		(1)
Total income tax expense (benefit)	$	30	$	34

(LG&E)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	20	$	19
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		(1)
Total increase (decrease)	(1)		—
Total income tax expense (benefit)	$	19	$	19

(KU)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	22	$	21
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(4)		(4)
Other	(1)		(1)
Total increase (decrease)	(1)		(1)
Total income tax expense (benefit)	$	21	$	20

Other

TCJA Regulatory Update (All Registrants)

In July 2020, the IRS issued final and new proposed regulations relating to the limitation on interest deductibility. The final regulations do not apply to the Registrants until the 2021 tax year. The new proposed regulations were finalized on January 5, 2021 and will apply to the Registrants in the 2022 tax year. The Registrants have evaluated the final regulations issued in 2021 and concluded that neither the 2020 or 2021 regulations should have a material impact on the Registrants’ financial condition or results of operations.

XML

Utility Rate Regulation

3 Months Ended

Mar. 31, 2021

Regulated Operations [Abstract]

Utility Rate Regulation

7. Utility Rate Regulation

(All Registrants)

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

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	—	$	—
Gas supply clause	8		4		—		—
Smart meter rider	21		17		21		17
Transmission formula rate	20		15		20		15
Storm costs	5		7		5		7
Other	12		10		1		1
Total current regulatory assets	$	121	$	99	$	47	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	556	$	570	$	282	$	290
Storm costs	14		17		—		—
Unamortized loss on debt	29		30		7		8
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	74		75		—		—
Accumulated cost of removal of utility plant	234		240		234		240
AROs	304		300		—		—
Other	4		7		2		3
Total noncurrent regulatory assets	$	1,233	$	1,262	$	525	$	541

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	18	$	21	$	18	$	21
Transmission service charge	27		1		27		1
Environmental cost recovery	6		4		—		—
Universal service rider	16		22		16		22
Fuel adjustment clause	5		5		—		—
TCJA customer refund	15		11		15		11
Storm damage expense rider	5		6		5		6
Act 129 compliance rider	6		7		6		7
Challenge to transmission formula rate return on equity reserve (a)	27		—		27		—
Other	5		2		—		—
Total current regulatory liabilities	$	130	$	79	$	114	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	—	$	—
Power purchase agreement - OVEC	41		43		—		—
Net deferred taxes	1,673		1,690		552		560
Defined benefit plans	64		60		21		18
Terminated interest rate swaps	65		66		—		—
Other	18		18		—		—
Total noncurrent regulatory liabilities	$	2,526	$	2,530	$	573	$	578

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	20	$	12	$	35	$	34
Gas supply clause	8		4		8		4		—		—
Other	11		9		8		7		3		2
Total current regulatory assets	$	74	$	59	$	36	$	23	$	38	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	274	$	280	$	170	$	174	$	104	$	106
Storm costs	14		17		9		11		5		6
Unamortized loss on debt	22		22		13		13		9		9
Interest rate swaps	18		23		18		23		—		—
Terminated interest rate swaps	74		75		43		44		31		31
AROs	304		300		85		85		219		215
Other	2		4		1		1		1		3
Total noncurrent regulatory assets	$	708	$	721	$	339	$	351	$	369	$	370

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	6	$	4	$	—	$	—	$	6	$	4
Fuel adjustment clause	5		5		1		—		4		5
Other	5		2		2		—		3		2
Total current regulatory liabilities	$	16	$	11	$	3	$	—	$	13	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	278	$	274	$	387	$	379
Power purchase agreement - OVEC	41		43		28		30		13		13
Net deferred taxes	1,121		1,130		525		528		596		602
Defined benefit plans	43		42		1		—		42		42
Terminated interest rate swaps	65		66		33		33		32		33
Other	18		18		16		17		2		1
Total noncurrent regulatory liabilities	$	1,953	$	1,952	$	881	$	882	$	1,072	$	1,070

(a)See “Regulatory Matters - Federal Matters - Challenge to PPL Electric Transmission Formula Rate Return on Equity” below for further information.

Regulatory Matters

Kentucky Activities (PPL, LKE, LG&E and KU)

Rate Case Proceedings

On November 25, 2020, LG&E and KU filed requests with the KPSC for an increase in annual electricity and gas revenues of approximately $331 million ($131 million and $170 million in electricity revenues at LG&E and KU and $30 million in gas revenues at LG&E). The revenue increases would be an increase of 11.6% and 10.4% in electricity revenues at LG&E and KU, and an increase of 8.3% in gas revenues at LG&E. In recognition of the economic impact of COVID-19, LG&E and KU requested approval of a one-year billing credit which will credit customers approximately $53 million ($41 million at LG&E and $12 million at KU). The billing credit represents the return to customers of certain regulatory liabilities on LG&E’s and KU’s Balance Sheets and serves to partially mitigate the rate increases during the first year in which the new rates are in effect.

LG&E’s and KU’s applications also included a request for a CPCN to deploy Advanced Metering Infrastructure across LG&E’s and KU’s service territories in Kentucky.

The applications were based on a forecasted test year of July 1, 2021 through June 30, 2022 and requested an authorized return on equity of 10.0%.

On April 19, 2021, LG&E and KU entered into an agreement with all intervening parties to the proceedings resolving all matters in their applications, with the explicit exception of LG&E's and KU's net metering proposals. The agreement proposes increases in annual revenues of $217 million ($77 million and $116 million in electricity revenues at LG&E and KU and $24 million in gas revenues at LG&E) based on an authorized return on equity of 9.55%. The proposal includes an authorized 9.35% return on equity for the ECR and GLT mechanisms. The agreement does not modify the requested one-year billing credit. The agreement proposes that the KPSC should grant LG&E’s and KU’s request for a CPCN to deploy Advanced Metering Infrastructure and proposes the establishment of a Retired Asset Recovery rider (RAR) to provide for recovery of and return on the remaining investment in certain electric generating units upon their retirement over a ten-year period following retirement. In respect of the RAR rider, the agreement proposes that LG&E and KU will continue to use currently approved depreciation rates for Mill Creek units 1 and 2 and Brown Unit 3. The agreement also proposes a four-year “stay-out” commitment from LG&E and KU to refrain from effective base rate increases before July 1, 2025, subject to certain exceptions.

A hearing on the agreement, and the underlying proceedings, was completed on April 28, 2021. Subject to KPSC approval, the rates, decreased by the amount of the billing credit, are expected to become effective July 1, 2021. An Order on the net metering issues is expected by the end of September 2021. PPL, LKE, LG&E and KU cannot predict the outcome of these proceedings.

Pennsylvania Activities (PPL and PPL Electric)

Act 129

Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet, by specified dates, specified goals for reduction in customer electricity usage and peak demand. EDCs not meeting the requirements of Act 129 are subject to significant penalties. PPL Electric filed with the PUC its Act 129 Phase IV Energy Efficiency and Conservation Plan (Phase IV Act 129 Plan) on November 30, 2020, for the five-year period starting June 1, 2021 and ending on May 31, 2026. PPL Electric's Phase IV Act 129 Plan was approved by the PUC at its March 25, 2021, public meeting.

Federal Matters

Challenge to PPL Electric Transmission Formula Rate Return on Equity (PPL and PPL Electric)

On May 21, 2020, PP&L Industrial Customer Alliance (PPLICA) filed a complaint with the FERC alleging that PPL Electric's base return on equity (ROE) of 11.18% used to determine PPL Electric's formula transmission rate is unjust and unreasonable, and proposing an alternative ROE of 8.0% based on its interpretation of FERC Opinion No. 569. However, also on May 21, 2020, the FERC issued Opinion No. 569-A in response to numerous requests for rehearing of Opinion No. 569, which revised the method for analyzing base ROE. On June 10, 2020, PPLICA filed a Motion to Supplement the May 21, 2020 complaint in which PPLICA continued to allege that PPL Electric’s base ROE is unjust and unreasonable, but revised its analysis of PPL Electric's base ROE to reflect the guidance provided in Opinion No. 569-A. The amended complaint proposed an updated alternative ROE of 8.5% and also requested that the FERC preserve the original refund effective date as established by the filing of the original complaint on May 21, 2020. Several parties have filed motions to intervene, including one party who filed Comments in Support of the original complaint.

On July 10, 2020, PPL Electric filed its Answer and supporting Testimony to the PPLICA filings arguing that the FERC should deny the original and amended complaints as they are without merit and fail to demonstrate the existing base ROE is unjust and unreasonable. In addition, PPL Electric contended any refund effective date should be set for no earlier than June 10, 2020 and PPLICA's proposed replacement ROE should be rejected.

On October 15, 2020, the FERC issued an order on the PPLICA complaints which established hearing and settlement procedures, set a refund effective date of May 21, 2020 and granted the motions to intervene. On November 16, 2020, PPL Electric filed a request for rehearing of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date. On December 17, 2020, the FERC issued a Notice of Denial of Rehearing by Operation of Law and Providing for Further Consideration. On February 16 and April 19, 2021, PPL Electric filed Petitions for Review with the United States Court of Appeals for the District of Columbia Circuit of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date.

PPL Electric continues to believe its ROE is just and reasonable and that it has meritorious defenses against the original and amended complaints. Settlement negotiations are currently proceeding, but there can be no assurance that they will result in a final settlement. Although PPL Electric cannot predict the outcome of this matter, in the first quarter of 2021, PPL Electric recorded a revenue reserve of $19 million after-tax. Of this amount, $13 million relates to the period from May 21, 2020 to December 31, 2020. Additional revenue earned from May 21, 2020 through the ultimate resolution of this matter may be subject to refund. A change of 50 basis points to the base ROE would impact PPL Electric's net income by approximately $12 million on an annual basis.

FERC Transmission Rate Filing (PPL, LKE, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. Due to the development of robust, accessible energy markets over time, LG&E and KU believe the mitigation commitments are no longer relevant or appropriate. In March 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E

and KU of a transition mechanism for certain existing power supply arrangements, subject to FERC review and approval. In July 2019, LG&E and KU proposed their transition mechanism to the FERC and in September 2019, the FERC rejected the proposed transition mechanism. In September 2020, the FERC issued orders in the rehearing process that modified various aspects of the September 2019 orders which had approved future termination of the credits, including adjusting which customer arrangements are covered by the transition mechanism and respective future periods or dates for termination of credits. In November 2020, the FERC denied the parties' rehearing requests. In November 2020 and January 2021, LG&E and KU and other parties appealed the September 2020 and November 2020 orders at the D.C. Circuit Court of Appeals. The appellate proceedings are continuing, and also include certain additional prior pending petitions for review relating to the matter. On January 15, 2021, LG&E and KU made a filing seeking FERC acceptance of a new proposal for a transition mechanism. On March 16, 2021, the FERC accepted the filed transition mechanism agreements effective on March 17, 2021 but subject to refund, and established hearing and settlement procedures. LG&E and KU are also required to make certain compliance filings consistent with the March 16, 2021 order. LG&E and KU cannot predict the outcome of the respective appellate and FERC proceedings. LG&E and KU currently receive recovery of the waivers and credits provided through other rate mechanisms and such rate recovery would be anticipated to be adjusted consistent with potential changes or terminations of the waivers and credits, as such become effective.

Other

Purchase of Receivables Program (PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three months ended March 31, 2021, and 2020, PPL Electric purchased $324 million and $311 million of accounts receivable from alternative suppliers.

XML

Financing Activities

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Financing Activities

8. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and act as a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Capital Funding’s term loan agreement due March 2022, which are reflected in “Long-term debt due within one year” at March 31, 2021 and “Long-term debt” at December 31, 2020. The following credit facilities were in place at:

	March 31, 2021									December 31, 2020
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
PPL Capital Funding
Syndicated Credit Facility	Jan. 2024	$	1,450	$	—	$	942	$	508	$	—	$	402
Term Loan Credit Facility	Mar. 2022	100		100		—		—		100		—
Bilateral Credit Facility	Mar. 2022	50		—		—		50		—		—
Bilateral Credit Facility	Mar. 2022	50		—		15		35		—		15
Term Loan Credit Facility	Mar. 2021	—		—		—		—		100		—
Term Loan Credit Facility	Mar. 2021	—		—		—		—		200		—
Total PPL Capital Funding Credit Facilities		$	1,650	$	100	$	957	$	593	$	400	$	417
PPL Electric
Syndicated Credit Facility	Jan. 2024	$	650	$	—	$	206	$	444	$	—	$	1
LG&E
Syndicated Credit Facility	Jan. 2024	$	500	$	—	$	252	$	248	$	—	$	262
KU
Syndicated Credit Facility	Jan. 2024	$	400	$	—	$	148	$	252	$	—	$	203

(All Registrants)

PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:

	March 31, 2021							December 31, 2020
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.22%	$	1,500	$	942	$	558	0.25%	$	402
PPL Electric	0.20%	650		205		445			—
LG&E (a)	0.22%	425		252		173		0.28%	262
KU	0.21%	350		148		202		0.28%	203
Total		$	2,925	$	1,547	$	1,378		$	867

(a)In March 2021, the capacity for the LG&E commercial paper program was increased from $350 million to $425 million.

(PPL Electric, LKE, LG&E, and KU)

See Note 12 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In April 2021, PPL Capital Funding repaid the $100 million term loan credit facility expiring in March 2022.

(PPL, LKE and LG&E)

In April 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $128 million of Pollution Control Revenue Bonds, 2003 Series A due 2033 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 2.00% through their maturity date of October 1, 2033.

In May 2021, the County of Trimble, Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

In May 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

(PPL)

Equity Securities

ATM Program

In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the three months ended March 31, 2021. The ATM program expired in February 2021.

Distributions

In February 2021, PPL declared a quarterly common stock dividend, payable April 1, 2021, of 41.5 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.

XML

Defined Benefits

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Defined Benefits

10. Defined Benefits

(PPL, LKE and LG&E)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE, and LG&E for the periods ended March 31:

	Pension Benefits
	Three Months
	U.S.				U.K. (a)
	2021		2020		2021		2020
PPL
Service cost	$	13	$	13	$	25	$	23
Interest cost	32		38		29		36
Expected return on plan assets	(61)		(60)		(177)		(158)
Amortization of:
Prior service cost	2		2		—		—
Actuarial loss	25		20		54		54
Net periodic defined benefit costs (credits)	$	11	$	13	$	(69)	$	(45)

(a)    U.K. amounts are reflected in discontinued operations. See Note 9 for additional information on the share purchase agreement to sell the U.K. utility business.

	Pension Benefits
	Three Months
	2021		2020
LKE
Service cost	$	6	$	5
Interest cost	14		16
Expected return on plan assets	(24)		(24)
Amortization of:
Prior service cost	2		2
Actuarial loss (a)	11		9
Net periodic defined benefit costs (credits)	$	9	$	8

(a)    As a result of treatment approved by the KPSC, the difference between actuarial loss calculated in accordance with LKE's accounting policy and actuarial loss calculated using a 15-year amortization period was $3 million for the three months ended March 31, 2021 and 2020.

.

	Other Postretirement Benefits
	Three Months
	2021		2020
PPL
Service cost	$	2	$	2
Interest cost	4		5
Expected return on plan assets	(5)		(5)
Net periodic defined benefit costs	$	1	$	2
LKE
Service cost	$	1	$	1
Interest cost	2		2
Expected return on plan assets	(2)		(2)
Net periodic defined benefit costs	$	1	$	1

(PPL Electric, LG&E and KU)

PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and LG&E and KU are allocated costs of defined benefit plans sponsored by LKE. LG&E and KU are also allocated costs of defined benefit plans from LKS for defined benefit plans sponsored by LKE. See Note 12 for additional information on costs allocated to LG&E and KU from LKS. These allocations are based on participation in those plans, which management believes are reasonable. For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

(All Registrants)

The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in "Other Income (Expense) - net" on the Statements of Income. See Note 13 for additional information.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

Talen Litigation (PPL)

Background

In September 2013, one of PPL's former subsidiaries, PPL Montana entered into an agreement to sell its hydroelectric generating facilities. In June 2014, PPL and PPL Energy Supply, the parent company of PPL Montana, entered into various definitive agreements with affiliates of Riverstone to spin off PPL Energy Supply and ultimately combine it with Riverstone's competitive power generation businesses to form a stand-alone company named Talen Energy. In November 2014, after executing the spinoff agreements but prior to the closing of the spinoff transaction, PPL Montana closed the sale of its hydroelectric generating facilities. Subsequently, on June 1, 2015, the spinoff of PPL Energy Supply was completed. Following the spinoff transaction, PPL had no continuing ownership interest in or control of PPL Energy Supply. In connection with the spinoff transaction, PPL Montana became Talen Montana, LLC (Talen Montana), a subsidiary of Talen Energy. Talen Energy Marketing also became a subsidiary of Talen Energy as a result of the June 2015 spinoff of PPL Energy Supply. Talen Energy has owned and operated both Talen Montana and Talen Energy Marketing since the spinoff. At the time of the spinoff, affiliates of Riverstone acquired a 35% ownership interest in Talen Energy. Riverstone subsequently acquired the remaining interests in Talen Energy in a take private transaction in December 2016.

Talen Montana Retirement Plan and Talen Energy Marketing, LLC, Individually and on Behalf of All Others Similarly Situated v. PPL Corporation et al.

On October 29, 2018, Talen Montana Retirement Plan and Talen Energy Marketing filed a putative class action complaint on behalf of current and contingent creditors of Talen Montana who allegedly suffered harm or allegedly will suffer reasonably foreseeable harm as a result of a November 2014 distribution of proceeds from the sale of then-PPL Montana's hydroelectric generating facilities. The action was filed in the Sixteenth Judicial District of the State of Montana, Rosebud County, against PPL and certain of its affiliates and current and former officers and directors (Talen Putative Class Action). Plaintiff asserts claims for, among other things, fraudulent transfer, both actual and constructive; recovery against subsequent transferees; civil conspiracy; aiding and abetting tortious conduct; and unjust enrichment. Plaintiff is seeking avoidance of the purportedly fraudulent transfer, unspecified damages, including punitive damages, the imposition of a constructive trust, and other relief. In December 2018, PPL removed the Talen Putative Class Action from the Sixteenth Judicial District of the State of Montana to the United States District Court for the District of Montana, Billings Division (MT Federal Court). In January 2019, the plaintiff moved to remand the Talen Putative Class Action back to state court, and dismissed without prejudice all current and former PPL Corporation directors from the case. In September 2019, the MT Federal Court granted plaintiff's motion to remand the case back to state court. Although, the PPL defendants petitioned the Ninth Circuit Court of Appeals to grant an appeal of the remand decision, in November 2019, the Ninth Circuit Court of Appeals denied that request and in December 2019, Talen Montana Retirement Plan filed a Second Amended Complaint in the Sixteenth Judicial District of the State of Montana, Rosebud County, which removed Talen Energy Marketing as a plaintiff. In January 2020, PPL defendants filed a motion to dismiss the Second Amended Complaint or, in the alternative, to stay the proceedings pending the resolution of the below mentioned Delaware Action. The Court held a hearing on June 24, 2020 regarding the motions. On September 11, 2020, the Court granted PPL defendants' alternative Motion for a Stay of the proceedings.

PPL Corporation et al. vs. Riverstone Holdings LLC, Talen Energy Corporation et al.

On November 30, 2018, PPL, certain PPL affiliates, and certain current and former officers and directors (PPL plaintiffs) filed a complaint in the Court of Chancery of the State of Delaware seeking various forms of relief against Riverstone, Talen Energy and certain of their affiliates (Delaware Action), in response to and as part of the defense strategy for an action filed by Talen Montana, LLC (the Talen Direct Action, since dismissed) and the Talen Putative Class Action described above (together, the Montana Actions) originally filed in Montana state court in October 2018. In the complaint, the PPL plaintiffs ask the Delaware Court of Chancery for declaratory and injunctive relief. This includes a declaratory judgment that, under the separation

agreement governing the spinoff of PPL Energy Supply, all related claims that arise must be heard in Delaware; that the statute of limitations in Delaware and the spinoff agreement bar these claims at this time; that PPL is not liable for the claims in either the Talen Direct Action or the Talen Putative Class Action as PPL Montana was solvent at all relevant times; and that the separation agreement requires that Talen Energy indemnify PPL for all losses arising from the debts of Talen Montana, among other things. PPL's complaint also seeks damages against Riverstone for interfering with the separation agreement and against Riverstone affiliates for breach of the implied covenant of good faith and fair dealing. The complaint was subsequently amended on January 11, 2019 and March 20, 2019, to include, among other things, claims related to indemnification with respect to the Montana Actions, request a declaration that the Montana Actions are time-barred under the spinoff agreements, and allege additional facts to support the tortious interference claim. In April 2019, the defendants filed motions to dismiss the amended complaint. In July 2019, the Court heard oral arguments from the parties regarding the motions to dismiss, and in October 2019, the Delaware Court of Chancery issued an opinion sustaining all of the PPL plaintiffs' claims except for the claim for breach of implied covenant of good faith and fair dealing. As a result of the dismissal of the Talen Direct Action in December 2019, in January 2020, Talen Energy filed a new motion to dismiss five of the remaining eight claims in the amended complaint. The Court heard oral argument on the motion to dismiss on May 28, 2020, and on June 22, 2020, issued an opinion denying the motion in its entirety. Discovery is proceeding, and a trial has been scheduled for February 2022.

With respect to each of the Talen-related matters described above, PPL believes that the 2014 distribution of proceeds was made in compliance with all applicable laws and that PPL Montana was solvent at all relevant times. Additionally, the agreements entered into in connection with the spinoff, which PPL and affiliates of Talen Energy and Riverstone negotiated and executed prior to the 2014 distribution, directly address the treatment of the proceeds from the sale of PPL Montana's hydroelectric generating facilities; in those agreements, Talen Energy and Riverstone definitively agreed that PPL was entitled to retain the proceeds.

PPL believes that it has meritorious defenses to the claims made in the Talen Putative Class Action and intends to continue to vigorously defend against this action. The Talen Putative Class Action and the Delaware Action are both in early stages of litigation; at this time, PPL cannot predict the outcome of these matters or estimate the range of possible losses, if any, that PPL might incur as a result of the claims, although they could be material.

(PPL, LKE and LG&E)

Cane Run Environmental Claims

In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky (U.S. District Court) alleging violations of the Clean Air Act, RCRA, and common law claims of nuisance, trespass and negligence. In July 2014, the U.S. District Court dismissed the RCRA claims and all but one Clean Air Act claim, but declined to dismiss the common law tort claims. In February 2017, the U.S. District Court dismissed PPL as a defendant and dismissed the final federal claim against LG&E, and in April 2017, issued an Order declining to exercise supplemental jurisdiction on the state law claims dismissing the case in its entirety. In June 2017, the plaintiffs filed a class action complaint in Jefferson County, Kentucky Circuit Court, against LG&E alleging state law nuisance, negligence and trespass tort claims. The plaintiffs seek compensatory and punitive damages for alleged property damage due to purported plant emissions on behalf of a class of residents within one to three miles of the plant. On January 8, 2020, the Jefferson Circuit Court issued an order denying the plaintiffs’ request for class certification. On January 14, 2020, the plaintiffs filed a notice of appeal in the Kentucky Court of Appeals. On December 11, 2020, the Court of Appeals issued an order affirming the lower court’s denial of class certification. In December 2020, plaintiffs filed a petition for discretionary review with the Kentucky Supreme Court. On April 21, 2021, the Kentucky Supreme Court denied further review of the lower court order. The case will be remanded to the Jefferson Circuit Court for the claims of the three remaining petitioners to be heard on an individual basis. PPL, LKE and LG&E cannot predict the ultimate outcome of the remaining proceedings, but do not anticipate this matter will have a material impact on operations or financial condition.

(PPL, LKE and KU)

E.W. Brown Environmental Claims

In July 2017, the Kentucky Waterways Alliance and the Sierra Club filed a citizen suit complaint against KU in the U.S. District Court for the Eastern District of Kentucky (U.S. District Court) alleging discharges at the E.W. Brown plant in violation of the Clean Water Act and the plant's water discharge permit and alleging contamination that may present an imminent and substantial endangerment in violation of the RCRA. The plaintiffs' suit relates to prior notices of intent to file a citizen suit submitted in October and November 2015 and October 2016. These plaintiffs sought injunctive relief ordering KU

to take all actions necessary to comply with the Clean Water Act and RCRA, including ceasing the discharges in question, abating effects associated with prior discharges and eliminating the alleged imminent and substantial endangerment. These plaintiffs also sought assessment of civil penalties and an award of litigation costs and attorney fees. In December 2017, the U.S. District Court issued an Order dismissing the Clean Water Act and RCRA complaints against KU in their entirety. In January 2018, the plaintiffs appealed the dismissal Order to the U.S. Court of Appeals for the Sixth Circuit. In September 2018, the U.S. Court of Appeals for the Sixth Circuit issued its ruling affirming the lower court's decision to dismiss the Clean Water Act claims but reversing its dismissal of the RCRA claims against KU and remanding the latter to the U.S. District Court. In October 2018, KU filed a petition for rehearing to the U.S. Court of Appeals for the Sixth Circuit regarding the RCRA claims. In November 2018, the U.S. Court of Appeals for the Sixth Circuit denied KU's petition for rehearing regarding the RCRA claims. In January 2019, KU filed an answer to plaintiffs’ complaint in the U.S. District Court. Discovery is complete and the parties' motions for partial summary judgment are pending. In December 2020, the U.S. District Court delayed the trial scheduled for February 2, 2021 indefinitely due to pandemic considerations. PPL, LKE and KU cannot predict the outcome of these matters and an estimate or range of possible losses cannot be determined.

KU is undertaking extensive remedial measures at the E.W. Brown plant including closure of the former ash pond, implementation of a groundwater remedial action plan and performance of a corrective action plan including aquatic study of adjacent surface waters and risk assessment. The aquatic study and risk assessment are being undertaken pursuant to a 2017 agreed Order with the Kentucky Energy and Environment Cabinet (KEEC). KU conducted sampling of Herrington Lake in 2017 and 2018. In June 2019, KU submitted to the KEEC the required aquatic study and risk assessment, conducted by an independent third-party consultant, finding that discharges from the E.W. Brown plant have not had any significant impact on Herrington Lake and that the water in the lake is safe for recreational use and meets safe drinking water standards. However, until the KEEC assesses the study and issues any regulatory determinations, PPL, LKE and KU are unable to determine whether additional remedial measures will be required at the E.W. Brown plant.

Air

Sulfuric Acid Mist Emissions (PPL, LKE and LG&E)

In June 2016, the EPA issued a notice of violation under the Clean Air Act alleging that LG&E violated applicable rules relating to sulfuric acid mist emissions at its Mill Creek plant. The notice alleges failure to install proper controls, failure to operate the facility consistent with good air pollution control practice, and causing emissions exceeding applicable requirements or constituting a nuisance or endangerment. LG&E believes it has complied with applicable regulations during the relevant time period. On July 31, 2020, the U.S. Department of Justice and Louisville Metro Air Pollution Control District filed a complaint in the U.S. District Court for the Western District of Kentucky alleging violations specified in the EPA notice of violation and seeking civil penalties and injunctive relief. In October 2020, LG&E filed a motion to dismiss the complaint. In December 2020, the U.S. Department of Justice and the Louisville Metro Air Pollution Control District filed an amended complaint. In February 2021, LG&E filed a renewed motion to dismiss regarding the amended complaint. PPL, LKE and LG&E are unable to predict the outcome of this matter or the potential impact on operations of the Mill Creek plant, including increased capital or operating costs, and potential civil penalties or remedial measures, if any. An estimate or range of possible losses cannot be determined.

Water/Waste

(PPL, LKE, LG&E and KU)

ELGs

In 2015, the EPA finalized ELGs for wastewater discharge permits for new and existing steam electricity generating facilities. These guidelines require deployment of additional control technologies providing physical, chemical and biological treatment and mandate operational changes including "no discharge" requirements for certain wastewaters. The implementation date for individual generating stations was to be determined by the states on a case-by-case basis according to criteria provided by the EPA. Legal challenges to the final rule were consolidated before the U.S. Court of Appeals for the Fifth Circuit. In April 2017, the EPA announced that it would grant petitions for reconsideration of the rule. In September 2017, the EPA issued a rule to postpone the compliance date for certain requirements. On October 13, 2020, the EPA published final revisions to its best available technology standards for certain wastewaters and potential extensions to compliance dates. The rule is expected to be implemented by the states or applicable permitting authorities in the course of their normal permitting activities. LG&E and KU are currently implementing responsive compliance strategies and schedules. Certain aspects of these compliance plans and estimates relate to developments in state water quality standards, which are separate from the ELG rule or its implementation.

Certain costs are included in the Registrants' capital plans and expected to be recovered from customers through rate recovery mechanisms, but additional costs and recovery will depend on further regulatory developments at the state level.

CCRs

In 2015, the EPA issued a final rule governing management of CCRs which include fly ash, bottom ash and sulfur dioxide scrubber wastes. The CCR Rule imposes extensive new requirements for certain CCR impoundments and landfills, including public notifications, location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements, and specifies restrictions relating to the beneficial use of CCRs. In July 2018, the EPA issued a final rule extending the deadline for closure of certain impoundments and adopting other substantive changes. In August 2018, the D.C. Circuit Court of Appeals vacated and remanded portions of the CCR Rule. In December 2019, the EPA addressed the deficiencies identified by the court and proposed amendments to change the closure deadline. In August 2020, the EPA published a final rule extending the deadline to initiate closure to April 11, 2021, while providing for certain extensions. The EPA is conducting ongoing rulemaking actions regarding various other amendments to the rule. Certain ongoing legal challenges to various provisions of the CCR Rule have been held in abeyance pending review by the EPA pursuant to the President's executive order. PPL, LKE, LG&E and KU are unable to predict the outcome of the ongoing litigation and rulemaking or potential impacts on current LG&E and KU compliance plans. The Registrants are currently finalizing closure plans and schedules.

In January 2017, Kentucky issued a new state rule relating to CCR management, effective May 2017, aimed at reflecting the requirements of the federal CCR rule. As a result of a subsequent legal challenge, in January 2018, the Franklin County, Kentucky Circuit Court issued an opinion invalidating certain procedural elements of the rule. LG&E and KU presently operate their facilities under continuing permits authorized under the former program and do not currently anticipate material impacts as a result of the judicial ruling. The Kentucky Energy and Environmental Cabinet has announced it intends to propose new state rules aimed at addressing procedural deficiencies identified by the court and providing the regulatory framework necessary for operation of the state program in lieu of the federal CCR Rule. Associated costs are expected to be subject to rate recovery.

LG&E and KU received KPSC approval for a compliance plan providing for the closure of impoundments at the Mill Creek, Trimble County, E.W. Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with the federal CCR rule, KU also received KPSC approval for its plans to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law. As of April 2021, LG&E and KU have commenced closure of all of the subject impoundments and have completed closure of some of their smaller impoundments. LG&E and KU generally expect to complete impoundment closures within five years of commencement, although a longer period may be required to complete closure of some facilities. Associated costs are expected to be subject to rate recovery.

In connection with the final CCR rule, LG&E and KU recorded adjustments to existing AROs beginning in 2015 and continue to record adjustments as required. See Note 16 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are subject to rate recovery.

(All Registrants)

Superfund and Other Remediation

PPL Electric, LG&E and KU are potentially responsible for investigating and remediating contamination under the federal Superfund program and similar state programs. Actions are under way at certain sites including former coal gas manufacturing plants in Pennsylvania and Kentucky previously owned or operated by, or currently owned by predecessors or affiliates of, PPL Electric, LG&E and KU. PPL Electric is potentially responsible for a share of clean-up costs at certain sites including the Columbia Gas Plant site and the Brodhead site. Cleanup actions have been or are being undertaken at these sites as requested by governmental agencies, the costs of which have not been and are not expected to be significant to PPL Electric.

As of March 31, 2021 and December 31, 2020, PPL Electric had a recorded liability of $10 million representing its best estimate of the probable loss incurred to remediate the sites identified above. Depending on the outcome of investigations at identified sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, additional costs of remediation could be incurred. PPL Electric, LG&E and KU lack sufficient information about such additional sites to estimate any potential liability or range of reasonably possible losses, if any, related to these sites. Such costs, however, are not currently expected to be significant.

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result, individual states may establish stricter standards for water quality and soil cleanup, that could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of possible losses, if any, related to these matters.

Regulatory Issues (All Registrants)

See Note 7 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

PPL Electric, LG&E and KU monitor their compliance with the Reliability Standards and self-report or self-log potential violations of applicable reliability requirements whenever identified, and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and an estimate or range of possible losses cannot be determined.

Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of March 31, 2021. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The probability of expected payment/performance under each of these guarantees is remote except for "WPD guarantee of pension and other obligations of unconsolidated entities," for which PPL has a total recorded liability of $4 million at March 31, 2021 and $5 million at December 31, 2020, which is included in “Current liabilities held for sale” on the Balance Sheets. For reporting purposes, on a consolidated basis, all guarantees of PPL Electric, LKE, LG&E and KU also apply to PPL, and all guarantees of LG&E and KU also apply to LKE.

	Exposure at March 31, 2021			Expiration Date
PPL
WPD indemnifications for entities in liquidation and sales of assets	$	11	(a)	2023
WPD guarantee of pension and other obligations of unconsolidated entities	96		(b)
LKE
Indemnification of lease termination and other divestitures	$	200	(c)	2021
LG&E and KU
LG&E and KU obligation of shortfall related to OVEC			(d)

(a)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. Additionally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

(b)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 March 31, 2021, 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.

(c)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 may exceed the maximum. 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 various indemnification scenarios, but does not expect such outcomes to result in significant losses above the amounts recorded.

(d)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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $103 million at March 31, 2021, consisting of LG&E's share of $71 million and KU's share of $32 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" in Note 11 in PPL's, LKE's, LG&E's and KU's 2020 Form 10-K for additional information on the OVEC power purchase contract.

In March 2018, a sponsor with a 4.85% pro-rata share of OVEC obligations filed for bankruptcy under Chapter 11 and, in August 2018, received a rejection order for the OVEC power purchase contract in the bankruptcy proceeding. OVEC and other entities challenged the contract rejection, the bankruptcy plan confirmation and regulatory aspects of the plan in various forums. In May 2020, OVEC and the relevant sponsor announced a settlement resolving all disputed matters in the bankruptcy and other proceedings, including providing that the sponsor will withdraw its request to reject the power purchase agreement. The settlement was implemented in July 2020.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is remote.

PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

Risks and Uncertainties (All Registrants)

The COVID-19 pandemic has disrupted the U.S. and global economies and continues to present extraordinary challenges to businesses, communities, workforces and markets. In the U.S. and throughout the world, governmental authorities have taken urgent and extensive actions to contain the spread of the virus and mitigate known or foreseeable impacts. In the Registrants’ service territories, mitigation measures have included quarantines, stay-at-home orders, travel restrictions, reduced operations or closures of businesses, schools and governmental agencies, and legislative or regulatory actions to address health or other pandemic-related concerns, all of which have the potential to adversely impact the Registrants' business and operations, especially if these measures remain in effect for a prolonged period of time.

To date, there has been no material impact on the Registrants’ operations, financial condition, liquidity or on their supply chain as a result of COVID-19; however, the duration and severity of the outbreak and its ultimate effects on the global economy, the financial markets, or the Registrants’ workforce, customers and suppliers are uncertain. A protracted slowdown of broad sectors of the economy, prolonged or pervasive restrictions on businesses and their workforces, or significant changes in legislation or regulatory policy to address the COVID-19 pandemic all present significant risks to the Registrants. These or other unpredictable events resulting from the pandemic could further reduce customer demand for electricity and gas, impact the Registrants’ employees and supply chains, result in an increase in certain costs, delay payments or increase bad debts, or result in changes in the fair value of their assets and liabilities, which could materially and adversely affect the Registrants’ business, results of operations, financial condition or liquidity.

XML

Related Party Transactions

3 Months Ended

Mar. 31, 2021

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Related Party Transactions

12. Related Party Transactions

Support Costs (PPL Electric, LKE, LG&E and KU)

PPL Services, PPL EU Services and LKS provide PPL, PPL Electric and LKE, their respective subsidiaries, including LG&E and KU, and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services may also use a ratio of overall direct and indirect costs or a weighted average cost ratio. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

PPL Energy Funding maintains a $650 million revolving line of credit with a PPL Electric subsidiary. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rates on borrowings are equal to one-month LIBOR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the Income Statements.

(LKE)

LKE maintains a $375 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. The interest rates on borrowings are equal to one-month LIBOR plus a spread. At March 31, 2021 and December 31, 2020, $227 million and $251 million were outstanding and reflected in "Notes payable with affiliates" on the Balance Sheets. The interest rates on the outstanding borrowings at March 31, 2021 and December 31, 2020 were 1.62% and 1.65%. Interest expense on the revolving line of credit was not significant for the three months ended March 31, 2021 and 2020.

LKE maintains an agreement with a PPL affiliate that has a $300 million borrowing limit whereby LKE can loan funds on a short-term basis at market-based rates. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rate on the loan is based on the PPL affiliate's credit rating and equal to one-month LIBOR plus a spread.

LKE maintains ten-year notes with a combined value of $1.2 billion with a PPL affiliate with a weighted-average interest rate of 3.89% and maturities ranging from 2026 to 2030. At March 31, 2021 and December 31, 2020, the notes were reflected in "Long-term debt to affiliate" on the Balance Sheets. The total interest expense on the 10-year notes was $12 million and $7 million for the three months ended March 31, 2021 and 2020.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. LG&E's money pool borrowing limit is $325 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. KU's money pool borrowing limit is $300 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

VEBA Funds Receivable (PPL Electric)

In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. The intercompany receivable balance associated with these funds was $20 million as of March 31, 2021, of which $10 million was reflected in "Accounts receivable from affiliates" and $10 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet. The intercompany receivable balance associated with these funds was $22 million as of December 31, 2020, of which $10 million was reflected in "Accounts receivable from affiliates" and $12 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet.

Other (PPL Electric, LG&E and KU)

See Note 10 for discussions regarding intercompany allocations associated with defined benefits.

LG And E And KU Energy LLC [Member]

Related Party Transactions [Line Items]

Related Party Transactions

12. Related Party Transactions

Support Costs (PPL Electric, LKE, LG&E and KU)

PPL Services, PPL EU Services and LKS provide PPL, PPL Electric and LKE, their respective subsidiaries, including LG&E and KU, and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services may also use a ratio of overall direct and indirect costs or a weighted average cost ratio. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

PPL Energy Funding maintains a $650 million revolving line of credit with a PPL Electric subsidiary. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rates on borrowings are equal to one-month LIBOR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the Income Statements.

(LKE)

LKE maintains a $375 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. The interest rates on borrowings are equal to one-month LIBOR plus a spread. At March 31, 2021 and December 31, 2020, $227 million and $251 million were outstanding and reflected in "Notes payable with affiliates" on the Balance Sheets. The interest rates on the outstanding borrowings at March 31, 2021 and December 31, 2020 were 1.62% and 1.65%. Interest expense on the revolving line of credit was not significant for the three months ended March 31, 2021 and 2020.

LKE maintains an agreement with a PPL affiliate that has a $300 million borrowing limit whereby LKE can loan funds on a short-term basis at market-based rates. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rate on the loan is based on the PPL affiliate's credit rating and equal to one-month LIBOR plus a spread.

LKE maintains ten-year notes with a combined value of $1.2 billion with a PPL affiliate with a weighted-average interest rate of 3.89% and maturities ranging from 2026 to 2030. At March 31, 2021 and December 31, 2020, the notes were reflected in "Long-term debt to affiliate" on the Balance Sheets. The total interest expense on the 10-year notes was $12 million and $7 million for the three months ended March 31, 2021 and 2020.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. LG&E's money pool borrowing limit is $325 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. KU's money pool borrowing limit is $300 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

VEBA Funds Receivable (PPL Electric)

In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. The intercompany receivable balance associated with these funds was $20 million as of March 31, 2021, of which $10 million was reflected in "Accounts receivable from affiliates" and $10 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet. The intercompany receivable balance associated with these funds was $22 million as of December 31, 2020, of which $10 million was reflected in "Accounts receivable from affiliates" and $12 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet.

Other (PPL Electric, LG&E and KU)

See Note 10 for discussions regarding intercompany allocations associated with defined benefits.

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

12. Related Party Transactions

Support Costs (PPL Electric, LKE, LG&E and KU)

PPL Services, PPL EU Services and LKS provide PPL, PPL Electric and LKE, their respective subsidiaries, including LG&E and KU, and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services may also use a ratio of overall direct and indirect costs or a weighted average cost ratio. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

PPL Energy Funding maintains a $650 million revolving line of credit with a PPL Electric subsidiary. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rates on borrowings are equal to one-month LIBOR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the Income Statements.

(LKE)

LKE maintains a $375 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. The interest rates on borrowings are equal to one-month LIBOR plus a spread. At March 31, 2021 and December 31, 2020, $227 million and $251 million were outstanding and reflected in "Notes payable with affiliates" on the Balance Sheets. The interest rates on the outstanding borrowings at March 31, 2021 and December 31, 2020 were 1.62% and 1.65%. Interest expense on the revolving line of credit was not significant for the three months ended March 31, 2021 and 2020.

LKE maintains an agreement with a PPL affiliate that has a $300 million borrowing limit whereby LKE can loan funds on a short-term basis at market-based rates. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rate on the loan is based on the PPL affiliate's credit rating and equal to one-month LIBOR plus a spread.

LKE maintains ten-year notes with a combined value of $1.2 billion with a PPL affiliate with a weighted-average interest rate of 3.89% and maturities ranging from 2026 to 2030. At March 31, 2021 and December 31, 2020, the notes were reflected in "Long-term debt to affiliate" on the Balance Sheets. The total interest expense on the 10-year notes was $12 million and $7 million for the three months ended March 31, 2021 and 2020.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. LG&E's money pool borrowing limit is $325 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. KU's money pool borrowing limit is $300 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

VEBA Funds Receivable (PPL Electric)

In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. The intercompany receivable balance associated with these funds was $20 million as of March 31, 2021, of which $10 million was reflected in "Accounts receivable from affiliates" and $10 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet. The intercompany receivable balance associated with these funds was $22 million as of December 31, 2020, of which $10 million was reflected in "Accounts receivable from affiliates" and $12 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet.

Other (PPL Electric, LG&E and KU)

See Note 10 for discussions regarding intercompany allocations associated with defined benefits.

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

12. Related Party Transactions

Support Costs (PPL Electric, LKE, LG&E and KU)

PPL Services, PPL EU Services and LKS provide PPL, PPL Electric and LKE, their respective subsidiaries, including LG&E and KU, and each other with administrative, management and support services. For all services companies, the costs of directly assignable and attributable services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. PPL Services may also use a ratio of overall direct and indirect costs or a weighted average cost ratio. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and KU are reimbursed through LKS.

Intercompany Borrowings

(PPL Electric)

PPL Energy Funding maintains a $650 million revolving line of credit with a PPL Electric subsidiary. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rates on borrowings are equal to one-month LIBOR plus a spread. Interest income is reflected in "Interest Income from Affiliate" on the Income Statements.

(LKE)

LKE maintains a $375 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. The interest rates on borrowings are equal to one-month LIBOR plus a spread. At March 31, 2021 and December 31, 2020, $227 million and $251 million were outstanding and reflected in "Notes payable with affiliates" on the Balance Sheets. The interest rates on the outstanding borrowings at March 31, 2021 and December 31, 2020 were 1.62% and 1.65%. Interest expense on the revolving line of credit was not significant for the three months ended March 31, 2021 and 2020.

LKE maintains an agreement with a PPL affiliate that has a $300 million borrowing limit whereby LKE can loan funds on a short-term basis at market-based rates. No balance was outstanding at March 31, 2021 and December 31, 2020. The interest rate on the loan is based on the PPL affiliate's credit rating and equal to one-month LIBOR plus a spread.

LKE maintains ten-year notes with a combined value of $1.2 billion with a PPL affiliate with a weighted-average interest rate of 3.89% and maturities ranging from 2026 to 2030. At March 31, 2021 and December 31, 2020, the notes were reflected in "Long-term debt to affiliate" on the Balance Sheets. The total interest expense on the 10-year notes was $12 million and $7 million for the three months ended March 31, 2021 and 2020.

(LG&E and KU)

LG&E participates in an intercompany money pool agreement whereby LKE and/or KU make available to LG&E funds up to the difference between LG&E's FERC borrowing limit and LG&E's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. LG&E's money pool borrowing limit is $325 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

KU participates in an intercompany money pool agreement whereby LKE and/or LG&E make available to KU funds up to the difference between KU's FERC borrowing limit and KU's commercial paper capacity limit at an interest rate based on the lower of a market index of commercial paper issues and two additional rate options based on LIBOR. KU's money pool borrowing limit is $300 million. No balances were outstanding at March 31, 2021 and December 31, 2020.

VEBA Funds Receivable (PPL Electric)

In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA, to be used to pay medical claims of active bargaining unit employees. Based on PPL Electric's participation in PPL’s Other Postretirement Benefit plan, PPL Electric was allocated a portion of the excess funds from PPL Services. These funds have been recorded as an intercompany receivable on PPL Electric's Balance Sheets. The receivable balance decreases as PPL Electric pays incurred medical claims and is reimbursed by PPL Services. The intercompany receivable balance associated with these funds was $20 million as of March 31, 2021, of which $10 million was reflected in "Accounts receivable from affiliates" and $10 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet. The intercompany receivable balance associated with these funds was $22 million as of December 31, 2020, of which $10 million was reflected in "Accounts receivable from affiliates" and $12 million was reflected in "Other noncurrent assets" on the PPL Electric Balance Sheet.

Other (PPL Electric, LG&E and KU)

See Note 10 for discussions regarding intercompany allocations associated with defined benefits.

XML

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

14. Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. See Note 1 in each Registrant's 2020 Form 10-K for information on the levels in the fair value hierarchy.

Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	421	$	421	$	—	$	—	$	442	$	442	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Special use funds (a):
Commingled debt fund measured at NAV (b)	25		—		—		—		26		—		—		—
Commingled equity fund measured at NAV (b)	24		—		—		—		25		—		—		—
Total special use funds	49		—		—		—		51		—		—		—
Total assets	$	471	$	422	$	—	$	—	$	494	$	443	$	—	$	—
Liabilities
Price risk management liabilities (c):
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
PPL Electric
Assets
Cash and cash equivalents	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
Total assets	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Total assets	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—

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

(b)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(c)Current portion is included in "Other current liabilities" and noncurrent portion is included in "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

Special Use Funds

(PPL)

The special use funds are investments restricted for paying active union employee medical costs. In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA to be used to pay medical claims of active bargaining unit employees. The funds are invested primarily in commingled debt and equity funds measured at NAV and are classified as investments in equity securities. Changes in fair value of the funds are recorded to the Statements of Income.

Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps

(PPL, LKE, LG&E and KU)

To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency exchange risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Nonrecurring Fair Value Measurements (PPL)

See Note 9 for information regarding the estimated fair value of the U.K. utility business which is classified as held for sale as of March 31, 2021.

Financial Instruments Not Recorded at Fair Value (All Registrants)

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement.

	March 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,691	$	16,607	$	14,689	$	17,774
PPL Electric	4,237		4,881		4,236		5,338
LKE	6,075		7,051		6,074		7,589
LG&E	2,007		2,321		2,007		2,499
KU	2,618		3,042		2,618		3,334

(a)Amounts are net of debt issuance costs.

The carrying amounts of other current financial instruments (except for long-term debt due within one year) approximate their fair values because of their short-term nature.

XML

Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

15. Derivative Instruments and Hedging Activities

Risk Management Objectives

(All Registrants)

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances and foreign exchange (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Senior Director-Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and foreign currency exchange rates. Many of these contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest Rate Risk

•PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and WPD hold over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. PPL, LKE and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LKE, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuances.

•PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utilities and for certain plans at WPD due to the recovery methods in place.

Foreign Currency Risk (PPL)

•PPL is exposed to foreign currency exchange risk primarily associated with its investments in and earnings of U.K. affiliates.

(All Registrants)

Commodity Price Risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

•PPL Electric is required to purchase electricity to fulfill its obligation as a PLR. Potential commodity price risk is insignificant and mitigated through its PUC-approved cost recovery mechanism and full-requirement supply agreements to serve its PLR customers which transfer the risk to energy suppliers.

•LG&E's and KU's rates include certain mechanisms for fuel, fuel-related expenses and energy purchases. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric Risk

Volumetric risk is the risk related to the changes in volume of retail sales due to weather, economic conditions or other factors. PPL is exposed to volumetric risk through its subsidiaries as described below.

•WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO-ED1 price control regulations, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2020 Form 10-K for additional information on revenue recognition under RIIO-ED1.

•PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Equity Securities Price Risk

•PPL and its subsidiaries are exposed to equity securities price risk associated with the fair value of the defined benefit plans' assets. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery methods in place.

•PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" interest rate derivatives with financial institutions, as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of PPL Electric, LG&E or KU defaults on its obligation, those Registrants would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thereby mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements (PPL, LKE, LG&E and KU)

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had no obligation and an immaterial obligation to return cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

PPL had a $22 million obligation and no obligation to post cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

LKE, LG&E and KU had no obligation to return cash collateral under master netting arrangements at March 31, 2021 and December 31, 2020.

LKE, LG&E and KU had no obligation to post cash collateral under master netting arrangements at March 31, 2021.and December 31, 2020.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. A variety of financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of the debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges (PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL had no such contracts at March 31, 2021.

At March 31, 2021, PPL held an aggregate notional value in cross-currency interest rate swap contracts of $202 million that mature in 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. In March 2021, $500 million of WPD's U.S. dollar-denominated senior notes were repaid prior to maturity and $500 million notional value of cross-currency interest rate swap contracts matured.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

For the three months ended March 31, 2021 and 2020, PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges.

At March 31, 2021, the amount of accumulated net unrecognized after-tax gains (losses) on qualifying derivatives expected to be reclassified into earnings during the next 12 months is insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity (PPL, LKE and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments. Because realized gains and losses from the swaps, including terminated swap contracts, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At March 31, 2021, LG&E held contracts with a notional amount of $64 million that mature in 2033.

Foreign Currency Risk (PPL)

PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions, including the anticipated sale of its U.K. utility business and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings.

Net Investment Hedges

PPL enters into foreign currency contracts on behalf of a subsidiary to protect the value of a portion of its net investment in WPD. There were no contracts outstanding at March 31, 2021.

At March 31, 2021 and December 31, 2020, PPL had $33 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI.

Economic Activity

PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings and anticipated transactions, including the anticipated sale of its U.K. utility business. At March 31, 2021, the total exposure hedged by PPL was approximately £7.5 billion.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts include certain full requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 7 for amounts recorded in regulatory assets and regulatory liabilities at March 31, 2021 and December 31, 2020.

See Note 1 in each Registrant's 2020 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

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

	March 31, 2021								December 31, 2020
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	2
Cross-currency swaps (c)	2		—		—		—		94		—		—		—
Foreign currency contracts (c)	—		—		23		180		—		—		—		137
Total current	2		1		23		180		94		—		—		139
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	—		16		—		—		—		—		—		21
Cross-currency swaps (c)	37		—		—		—		52		—		—		—
Total noncurrent	37		16		—		—		52		—		—		21
Total derivatives	$	39	$	17	$	23	$	180	$	146	$	—	$	—	$	160

(a)Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b)Excludes accrued interest, if applicable.

(c)Included in "Current assets held for sale" and "Current liabilities held for sale" on the Balance Sheets.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2021.

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	Interest expense	$	(1)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	(46)		Income (Loss) from Discontinued Operations (net of taxes)	(37)
Total	$	(46)		$	(39)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued Operations (net of taxes)	$	(25)
Interest rate swaps	Interest expense	(1)
	Total	$	(26)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	6

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2020.

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	(5)	Interest expense	$	(2)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	15		Income (Loss) from Discontinued Operations (net of taxes)	6
Total	$	10		$	3

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued operations (net of taxes)	$	62
Interest rate swaps	Interest expense	(1)
	Total	$	61
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2021.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of income taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	153	$	(2,043)
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		(1)
Cross-currency swaps:
Hedged items	—		37
Amount of gain (loss) reclassified from AOCI to Income	—		(37)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2020.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	154	$	350
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(2)		(1)
Cross-currency swaps:
Hedged items	—		(6)
Amount of gain (loss) reclassified from AOCI to Income	—		6

(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.

	March 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	2
Total current	—		1		—		2
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	—		16		—		21
Total noncurrent	—		16		—		21
Total derivatives	$	—	$	17	$	—	$	23

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2021.

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

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2020. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months
Interest rate swaps	Interest expense	$	(1)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

(PPL, LKE, LG&E and KU)

Offsetting Derivative Instruments

PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LKE, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. 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
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
March 31, 2021
Treasury Derivatives
PPL	$	62	$	18	$	—	$	44	$	197	$	18	$	22	$	157
LKE	—		—		—		—		17		—		—		17
LG&E	—		—		—		—		17		—		—		17

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2020
Treasury Derivatives
PPL	$	146	$	34	$	—	$	112	$	160	$	34	$	—	$	126
LKE	—		—		—		—		23		—		—		23
LG&E	—		—		—		—		23		—		—		23

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LKE, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LKE's, LG&E's and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts disclosed below represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL)

At March 31, 2021, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	139

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

XML

Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations

(PPL, LKE, LG&E and KU)

PPL's, LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 11 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LKE, LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, at the time of retirement, the related ARO regulatory asset is offset against the associated cost of removal regulatory liability, PP&E and ARO liability.

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

LG And E And KU Energy LLC [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations

(PPL, LKE, LG&E and KU)

PPL's, LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 11 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LKE, LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, at the time of retirement, the related ARO regulatory asset is offset against the associated cost of removal regulatory liability, PP&E and ARO liability.

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

Louisville Gas And Electric Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations

(PPL, LKE, LG&E and KU)

PPL's, LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 11 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LKE, LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, at the time of retirement, the related ARO regulatory asset is offset against the associated cost of removal regulatory liability, PP&E and ARO liability.

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

Kentucky Utilities Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations

(PPL, LKE, LG&E and KU)

PPL's, LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 11 for information on the CCR rule. LG&E also has AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LKE, LG&E and KU, all ARO accretion and depreciation expenses are reclassified as a regulatory asset. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, at the time of retirement, the related ARO regulatory asset is offset against the associated cost of removal regulatory liability, PP&E and ARO liability.

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

XML

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss)

17. Accumulated Other Comprehensive Income (Loss)

(PPL)

The after-tax changes in AOCI by component for the periods ended March 31 were as follows.

	Foreign currency translation adjustments (a)		Unrealized gains (losses)  on qualifying derivatives		Defined benefit plans (b)
					Prior service costs		Actuarial gain (loss)		Total
PPL
December 31, 2020	$	(1,158)	$	—	$	(16)	$	(3,046)	$	(4,220)
Amounts arising during the period	303		(30)		—		—		273
Reclassifications from AOCI	—		25		—		40		65
Net OCI during the period	303		(5)		—		40		338
March 31, 2021	$	(855)	$	(5)	$	(16)	$	(3,006)	$	(3,882)
December 31, 2019	$	(1,425)	$	(5)	$	(18)	$	(2,910)	$	(4,358)
Amounts arising during the period	(61)		8		—		—		(53)
Reclassifications from AOCI	—		(3)		1		47		45
Net OCI during the period	(61)		5		1		47		(8)
March 31, 2020	$	(1,486)	$	—	$	(17)	$	(2,863)	$	(4,366)

(a)    Amounts relate to operations of the U.K. utility business.

(b)    Substantially all of the amounts relate to pension plans of the U.K. utility business. At March 31, 2021, the combined accumulated other comprehensive loss related to these plans was $2.8 billion.

The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended March 31.

	Three Months				Affected Line Item on the
Details about AOCI	2021		2020		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(2)	Interest Expense
	(1)		(1)		Income (Loss) from Discontinued Operations (net of income taxes)
Cross-currency swaps	(37)		6		Income (Loss) from Discontinued Operations (net of income taxes)
Total Pre-tax	(39)		3
Income Taxes	14		—
Total After-tax	(25)		3
Defined benefit plans
Prior service costs (a)	—		(1)
Net actuarial loss (a)	(62)		(59)
Total Pre-tax	(62)		(60)
Income Taxes	22		12
Total After-tax	(40)		(48)
Total reclassifications during the period	$	(65)	$	(45)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 10 for additional information.

XML

Acquisitions, Development and Divestitures (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Disposal Group, Including Discontinued Operation, Income Statement Line Items

Following are the components of discontinued operations in the Statements of Income for the periods ended March 31:

	Three Months
	2021		2020
Operating Revenues	$	634	$	614
Operating Expenses	252		222
Other Income (Expense) - net	66		130
Interest Expense (a)	93		93
Income before income taxes	355		429
Loss on sale	(1,647)		—
Income tax expense (b)	751		79
Income (loss) from Discontinued Operations (net of income taxes)	$	(2,043)	$	350

(a)No interest from corporate level debt was allocated to discontinued operations.

(b)2021 primarily includes a federal tax expense of $689 million for the recognition of the tax cost associated with the realization of the book-tax outside basis difference in PPL's investment in the U.K. utility business and foreign tax expense of $73 million on current year operations.

Disposal Group, Including Discontinued Operation, Assets and Liabilities

The following major classes of assets and liabilities were reclassified on PPL's Balance Sheet as of March 31, 2021 and December 31, 2020:

	Held for Sale at March 31, 2021		Held for Sale at December 31, 2020
Cash and cash equivalents	$	152	$	266
Accounts receivable and unbilled revenues	459		389
Price risk management assets	62		146
Property, plant and equipment, net (a)	15,236		14,392
Goodwill (b)	1,029		2,558
Other intangibles	434		413
Pension benefit asset	911		682
Other assets	142		137
Total Assets	$	18,425	$	18,983
Short-term debt and long-term debt due within one year	$	812	$	994
Accounts payable	199		220
Customer deposits	240		217
Accrued interest	178		190
Long-term debt	8,297		7,938
Total deferred income taxes	1,123		1,032
Price risk management liabilities	180		137
Other deferred credits and liabilities	347		295
Total Liabilities	$	11,376	$	11,023
Net assets (c)	$	7,049	$	7,960

(a)Depreciation of fixed assets ceased upon classification as held for sale.

(b)The change in Goodwill is due to the loss on sale of $1,647 million and a gain on foreign currency translation of $118 million.

(c)The net assets and liabilities held for sale exclude $3.7 billion of accumulated other comprehensive losses related to the U.K. utility business that are required to be included in the carrying value of the loss on sale calculation presented above. Accumulated other comprehensive losses related to the U.K. utility business will be reported as a component of PPL’s equity until the sale of the U.K. utility business occurs.

Disposal Group, Including Discontinued Operation, Components of Gain (loss) on Sale

Accordingly, PPL’s investment in the U.K. utility business has been reported at its estimated fair value, less costs to sell, resulting in an estimated pre-tax loss on sale of $1.6 billion as of March 31, 2021, as determined below.

	Three Months
	2021
Sales proceeds (a)	$	10,806
Costs to sell (b)	48
Carrying value (c)	12,405
Loss on Sale (d)	(1,647)

(a)Amount represents a contractual selling price of £7.8 billion (a Level 1 fair value measurement) as well as accrued additional consideration of approximately £49 million converted at the March 31, 2021 spot rate of $1.38 per GBP.

(b)Estimated amounts incurred for bank advisory, legal and accounting fees to facilitate the transaction.

(c)The measurement of PPL’s carrying value of the U.K. utility business includes the realization of accumulated other comprehensive losses of $3.7 billion, which arose primarily from currency translation adjustments and defined benefit plans associated with the U.K. utility business.

(d)This loss has been recorded as a reduction to goodwill.

XML

Interim Financial Statements

3 Months Ended

Mar. 31, 2021

Interim Financial Statements [Abstract]

Interim Financial Statements

1. Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2020 is derived from that Registrant's 2020 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2020 Form 10-K. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

(PPL)

On March 17, 2021, PPL WPD Limited entered into a share purchase agreement to sell PPL's U.K. utility business, which substantially represents PPL’s U.K. Regulated segment, to a subsidiary of National Grid plc. The results of operations of the U.K. utility business have been classified as Discontinued Operations on PPL's Statements of Income. The assets and liabilities of the U.K. utility business have been classified as assets and liabilities held for sale on PPL's Balance Sheets. PPL has elected

to separately report the cash flows of continuing and discontinued operations on the Statements of Cash Flows. Unless otherwise noted, the notes to these financial statements exclude amounts related to discontinued operations and assets and liabilities held for sale for all periods presented. See Note 9 for additional information.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

(All Registrants)

The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2020 Form 10-K and should be read in conjunction with those disclosures.

Restricted Cash and Cash Equivalents (PPL)

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:

	PPL
	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	421	$	442
Restricted cash - current (a)	1		1
Total Cash, Cash Equivalents and Restricted Cash	$	422	$	443

(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets."

Current Expected Credit Losses

(All Registrants)

The following table shows changes in the allowance for credit losses for the three months ended March 31, 2021:

	Balance at Beginning of Period		Charged to Income		Deductions (a)		Balance at End of Period
PPL
Accounts Receivable - Customer and Unbilled Revenue	$	44	$	2	$	1	$	45
Other (b)	28		—		—		28
PPL Electric
Accounts Receivable - Customer and Unbilled Revenue	$	39	$	1	$	—	$	40
Other	1		—		—		1
LKE
Accounts Receivable - Customer and Unbilled Revenue	$	5	$	1	$	1	$	5
Other (b)	27		—		—		27
LG&E
Accounts Receivable - Customer and Unbilled Revenue	$	3	$	—	$	—	$	3
KU
Accounts Receivable - Customer and Unbilled Revenue	$	2	$	1	$	1	$	2

(a)Primarily related to uncollectible accounts receivable written off.

(b)Primarily related to receivables at WKE, which are fully reserved.

XML

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

4. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in PPL's 2020 Form 10-K for a discussion of the principal activities from which the Registrants and PPL’s segments generate their revenues.

The following tables reconcile "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,498	$	605	$	885	$	428	$	469
Revenues derived from:
Alternative revenue programs (b)	24		22		2		—		2
Other (c)	(6)		—		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,440	$	608	$	825	$	407	$	432
Revenues derived from:
Alternative revenue programs (b)	(3)		—		(3)		(3)		—
Other (c)	(8)		(2)		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)PPL Electric and LKE represent revenues from external customers reported by the Pennsylvania Regulated and Kentucky Regulated segments. See Note 3 for additional information.

(b)Alternative revenue programs include the transmission formula rate for PPL Electric, the ECR and DSM programs for LG&E and KU, the GLT program for LG&E, and the generation formula rate for KU. For PPL Electric, the three months ended March 31, 2021 includes a $27 million reserve recorded as a result of a challenge to the transmission formula rate return on equity. See Note 7 for further information. This line item shows the over/under collection of these rate mechanisms with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts.

(c)Represents additional revenues outside the scope of revenues from contracts with customers, such as lease and other miscellaneous revenues.

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	774	$	361	$	413	$	205	$	208
Commercial	313		82		231		121		110
Industrial	152		12		140		46		94
Other (a)	91		12		71		34		37
Wholesale - municipality	6		—		6		—		6
Wholesale - other (b)	20		—		20		19		13
Transmission	160		160		—		—		—
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	714	$	344	$	370	$	187	$	183
Commercial	312		81		231		124		107
Industrial	144		8		136		45		91
Other (a)	87		14		66		28		38
Wholesale - municipality	5		—		5		—		5
Wholesale - other (b)	8		—		8		17		5
Transmission	159		159		—		—		—
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses.

(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at LKE.

As discussed in Note 2 in PPL's 2020 Form 10-K, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above.

Contract receivables from customers are primarily included in "Accounts receivable - Customer" and "Unbilled revenues" on the Balance Sheets.

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended March 31.

	Three Months
	2021		2020
PPL	$	2	$	6
PPL Electric	1		4
LKE	1		2
LG&E	—		1
KU	1		1

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LKE		LG&E		KU
Contract liabilities at December 31, 2020	$	40	$	23	$	11	$	5	$	6
Contract liabilities at March 31, 2021	33		16		10		5		5
Revenue recognized during the three months ended March 31, 2021 that was included in the contract liability balance at December 31, 2020	21		9		11		5		6
Contract liabilities at December 31, 2019	$	37	$	21	$	9	$	5	$	4
Contract liabilities at March 31, 2020	34		15		14		10		4
Revenue recognized during the three months ended March 31, 2020 that was included in the contract liability balance at December 31, 2019	19		8		9		5		4

Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are recognized as revenue ratably over the billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

At March 31, 2021, PPL had $47 million of performance obligations attributable to Corporate and Other that have not been satisfied. Of this amount, PPL expects to recognize approximately $38 million within the next 12 months.

XML

Acquisitions, Development and Divestitures

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures

9. Acquisitions, Development and Divestitures

(PPL)

Discontinued Operations

Share Purchase Agreement to Sell U.K. Utility Business

On March 17, 2021, PPL WPD Limited (WPD Limited) entered into a share purchase agreement (WPD SPA) to sell PPL's U.K. utility business to National Grid Holdings One plc (National Grid U.K.), a subsidiary of National Grid plc. Pursuant to the WPD SPA, National Grid U.K. will acquire 100% of the issued share capital of PPL WPD Investments Limited (WPD Investments) for £7.8 billion in cash. WPD Limited will also receive an additional amount of £548,000 for each day during the period from January 1, 2021 to the closing date if the dividends usually declared by WPD Investments to WPD Limited are not paid for that period.

The completion of the transaction, which is currently expected to occur by the end of July 2021, is subject to approval by National Grid plc's shareholders and receipt of regulatory approvals from the Financial Conduct Authority (the FCA), the Guernsey Financial Services Commission and, if applicable at the time of closing, from the U.K. Secretary of State in connection with the National Security and Investment Bill 2020. On April 22, 2021, National Grid plc’s shareholders approved the transaction pursuant to the listing rules of the FCA. On May 4, 2021, the Guernsey Financial Services Commission approved the transaction. The approval of the FCA is the sole remaining approval before the transaction can be consummated.

WPD Limited and National Grid U.K. have each made customary representations and warranties in the WPD SPA, as well as certain customary covenants by WPD Limited to conduct the businesses that are subject to the WPD SPA in the ordinary course between the execution of the WPD SPA and the closing of the sale. National Grid U.K., at its expense, has purchased warranty and indemnity insurance. The consummation of the transaction is not subject to a financing condition. PPL will not have any significant involvement with the U.K. utility business after completion of the sale.

Loss on Sale

In connection with entering into the WPD SPA, the U.K. utility business has met the accounting criteria to be classified as assets and liabilities held for sale and discontinued operations beginning with the first quarter of 2021. Accordingly, PPL’s investment in the U.K. utility business has been reported at its estimated fair value, less costs to sell, resulting in an estimated pre-tax loss on sale of $1.6 billion as of March 31, 2021, as determined below.

	Three Months
	2021
Sales proceeds (a)	$	10,806
Costs to sell (b)	48
Carrying value (c)	12,405
Loss on Sale (d)	(1,647)

(a)Amount represents a contractual selling price of £7.8 billion (a Level 1 fair value measurement) as well as accrued additional consideration of approximately £49 million converted at the March 31, 2021 spot rate of $1.38 per GBP.

(b)Estimated amounts incurred for bank advisory, legal and accounting fees to facilitate the transaction.

(c)The measurement of PPL’s carrying value of the U.K. utility business includes the realization of accumulated other comprehensive losses of $3.7 billion, which arose primarily from currency translation adjustments and defined benefit plans associated with the U.K. utility business.

(d)This loss has been recorded as a reduction to goodwill.

Summarized Results of Discontinued Operations

The operations of the U.K. utility business are included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income. Following are the components of discontinued operations in the Statements of Income for the periods ended March 31:

	Three Months
	2021		2020
Operating Revenues	$	634	$	614
Operating Expenses	252		222
Other Income (Expense) - net	66		130
Interest Expense (a)	93		93
Income before income taxes	355		429
Loss on sale	(1,647)		—
Income tax expense (b)	751		79
Income (loss) from Discontinued Operations (net of income taxes)	$	(2,043)	$	350

(a)No interest from corporate level debt was allocated to discontinued operations.

(b)2021 primarily includes a federal tax expense of $689 million for the recognition of the tax cost associated with the realization of the book-tax outside basis difference in PPL's investment in the U.K. utility business and foreign tax expense of $73 million on current year operations.

Summarized Assets and Liabilities Held for Sale

The assets and liabilities of PPL's U.K. utility business at March 31, 2021 and December 31, 2020 are included in "Current assets held for sale" and "Current liabilities held for sale" on PPL's Balance Sheets. The following major classes of assets and liabilities were reclassified on PPL's Balance Sheet as of March 31, 2021 and December 31, 2020:

	Held for Sale at March 31, 2021		Held for Sale at December 31, 2020
Cash and cash equivalents	$	152	$	266
Accounts receivable and unbilled revenues	459		389
Price risk management assets	62		146
Property, plant and equipment, net (a)	15,236		14,392
Goodwill (b)	1,029		2,558
Other intangibles	434		413
Pension benefit asset	911		682
Other assets	142		137
Total Assets	$	18,425	$	18,983
Short-term debt and long-term debt due within one year	$	812	$	994
Accounts payable	199		220
Customer deposits	240		217
Accrued interest	178		190
Long-term debt	8,297		7,938
Total deferred income taxes	1,123		1,032
Price risk management liabilities	180		137
Other deferred credits and liabilities	347		295
Total Liabilities	$	11,376	$	11,023
Net assets (c)	$	7,049	$	7,960

(a)Depreciation of fixed assets ceased upon classification as held for sale.

(b)The change in Goodwill is due to the loss on sale of $1,647 million and a gain on foreign currency translation of $118 million.

(c)The net assets and liabilities held for sale exclude $3.7 billion of accumulated other comprehensive losses related to the U.K. utility business that are required to be included in the carrying value of the loss on sale calculation presented above. Accumulated other comprehensive losses related to the U.K. utility business will be reported as a component of PPL’s equity until the sale of the U.K. utility business occurs.

Acquisitions

Share Purchase Agreement to Acquire The Narragansett Electric Company

On March 17, 2021, PPL and its subsidiary, PPL Energy Holdings, entered into a share purchase agreement (Narragansett SPA) with National Grid USA (National Grid U.S.), a subsidiary of National Grid plc to acquire 100% of the outstanding shares of common stock of The Narragansett Electric Company (Narragansett Electric) for approximately $3.8 billion in cash. On May 3, 2021, an Assignment and Assumption Agreement was entered into by PPL, PPL Energy Holdings, PPL Rhode Island Holdings and National Grid U.S. whereby certain interests of PPL Energy Holdings in the Narragansett SPA were assigned to and assumed by PPL Rhode Island Holdings. Pursuant to that Assignment and Assumption Agreement, PPL Rhode Island Holdings became the purchasing entity under the Narragansett SPA. The acquisition is expected to be funded with proceeds from the sale of the U.K. utility business. PPL has agreed to guarantee all obligations of PPL Energy Holdings and PPL Rhode Island Holdings under the Narragansett SPA and the related Assignment and Assumption Agreement.

The closing of the acquisition, which is currently expected to occur by March 2022, is subject to the prior closing of the sale of WPD Investments to National Grid U.K. and is also subject to the receipt of certain U.S. regulatory approvals, including, among others, clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, receipt of the approvals, authorizations or waivers from the Rhode Island Division of Public Utilities and Carriers, the FERC and the Massachusetts Department of Public Utilities, as well as other customary conditions to closing, including the execution and delivery of certain related transaction documents. PPL Energy Holdings and PPL Rhode Island Holdings and National Grid U.S. have each made customary representations, warranties and covenants in the Narragansett SPA, including, among others, customary indemnification provisions and covenants by National Grid U.S. to conduct the Narragansett Electric business in the ordinary course between the execution of the Narragansett SPA and the closing of the acquisition. The consummation of the transaction is not subject to a financing condition.

In connection with the acquisition, National Grid U.S. and one or more of its subsidiaries and PPL Energy Holdings and/or one or more of its subsidiaries will enter into a transition services agreement, pursuant to which National Grid U.S. and/or one or more of its affiliates will agree to provide certain transition services to Narragansett Electric and its affiliates to facilitate the operation of Narragansett Electric following the consummation of the acquisition and the transition of operations to PPL, as agreed upon in the Narragansett SPA.

XML

Other Income (Expense) - net

3 Months Ended

Mar. 31, 2021

Other Income (Expense) Net [Line Items]

Other Income (Expense) - net

13. Other Income (Expense) - net

(PPL)

The details of "Other Income (Expense) - net" for the periods ended March 31, were:

	Three Months
	2021		2020
Other Income
Defined benefit plans - non-service credits (Note 10)	$	4	$	1
AFUDC - equity component	4		3
Miscellaneous	—		1
Total Other Income	8		5
Other Expense
Charitable contributions	1		1
Miscellaneous	7		9
Total Other Expense	8		10
Other Income (Expense) - net	$	—	$	(5)

XML

Derivative Instruments and Hedging Activities (Policies)	3 Months Ended
	Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives, Offsetting Fair Value Amounts, Policy	Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

XML

Adoption of Accounting Guidance (Tables)

3 Months Ended

Mar. 31, 2021

Summary Of Significant Accounting Policies [Line Items]

Financing Receivable, Allowance for Credit Loss [Table Text Block]

The following table shows changes in the allowance for credit losses for the three months ended March 31, 2021:

	Balance at Beginning of Period		Charged to Income		Deductions (a)		Balance at End of Period
PPL
Accounts Receivable - Customer and Unbilled Revenue	$	44	$	2	$	1	$	45
Other (b)	28		—		—		28
PPL Electric
Accounts Receivable - Customer and Unbilled Revenue	$	39	$	1	$	—	$	40
Other	1		—		—		1
LKE
Accounts Receivable - Customer and Unbilled Revenue	$	5	$	1	$	1	$	5
Other (b)	27		—		—		27
LG&E
Accounts Receivable - Customer and Unbilled Revenue	$	3	$	—	$	—	$	3
KU
Accounts Receivable - Customer and Unbilled Revenue	$	2	$	1	$	1	$	2

(a)Primarily related to uncollectible accounts receivable written off.

(b)Primarily related to receivables at WKE, which are fully reserved.

Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement

The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:

	PPL
	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	421	$	442
Restricted cash - current (a)	1		1
Total Cash, Cash Equivalents and Restricted Cash	$	422	$	443

(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets."

XML

Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment and Related Information

Income Statement data for the segments and reconciliation to PPL's consolidated results for the periods ended March 31 are as follows:

	Three Months
	2021		2020
Operating Revenues from external customers
Kentucky Regulated	$	885	$	825
Pennsylvania Regulated	605		608
Corporate and Other	8		7
Total	$	1,498	$	1,440
Net Income
Kentucky Regulated (a)	$	146	$	127
Pennsylvania Regulated (a)	113		118
Corporate and Other (a)	(56)		(41)
Discontinued Operations (b)	(2,043)		350
Total	$	(1,840)	$	554

(a)For the period ended March 31, 2020, corporate level financing costs of $8 million, net of $2 million of income taxes, and an immaterial amount were allocated to the Kentucky Regulated and Pennsylvania Regulated segments. Beginning in 2021, corporate level financing costs will no longer be allocated to the reportable segments and are being reported in Corporate and Other.

(b)Includes unrealized gains and losses from hedging foreign currency economic activity. See Note 9 for additional information.

The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated Balance Sheets as of:

	March 31, 2021		December 31, 2020
Assets
Kentucky Regulated	$	15,904	$	15,943
Pennsylvania Regulated	12,585		12,347
Corporate and Other (a)	867		843
Assets Held for Sale (b)	18,425		18,983
Total	$	47,781	$	48,116

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill, the elimination of inter-segment transactions as well as the assets of Safari Energy.

(b)See Note 9 for additional information.

XML

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contracts with Customers [Line Items]

Reconciliation of Revenue from Contracts with Customers [Table Text Block]

The following tables reconcile "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,498	$	605	$	885	$	428	$	469
Revenues derived from:
Alternative revenue programs (b)	24		22		2		—		2
Other (c)	(6)		—		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Operating Revenues (a)	$	1,440	$	608	$	825	$	407	$	432
Revenues derived from:
Alternative revenue programs (b)	(3)		—		(3)		(3)		—
Other (c)	(8)		(2)		(6)		(3)		(3)
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)PPL Electric and LKE represent revenues from external customers reported by the Pennsylvania Regulated and Kentucky Regulated segments. See Note 3 for additional information.

(b)Alternative revenue programs include the transmission formula rate for PPL Electric, the ECR and DSM programs for LG&E and KU, the GLT program for LG&E, and the generation formula rate for KU. For PPL Electric, the three months ended March 31, 2021 includes a $27 million reserve recorded as a result of a challenge to the transmission formula rate return on equity. See Note 7 for further information. This line item shows the over/under collection of these rate mechanisms with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts.

(c)Represents additional revenues outside the scope of revenues from contracts with customers, such as lease and other miscellaneous revenues.

Disaggregation of Revenue [Table Text Block]

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended March 31.

	2021 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	774	$	361	$	413	$	205	$	208
Commercial	313		82		231		121		110
Industrial	152		12		140		46		94
Other (a)	91		12		71		34		37
Wholesale - municipality	6		—		6		—		6
Wholesale - other (b)	20		—		20		19		13
Transmission	160		160		—		—		—
Revenues from Contracts with Customers	$	1,516	$	627	$	881	$	425	$	468
	2020 Three Months
	PPL		PPL Electric		LKE		LG&E		KU
Residential	$	714	$	344	$	370	$	187	$	183
Commercial	312		81		231		124		107
Industrial	144		8		136		45		91
Other (a)	87		14		66		28		38
Wholesale - municipality	5		—		5		—		5
Wholesale - other (b)	8		—		8		17		5
Transmission	159		159		—		—		—
Revenues from Contracts with Customers	$	1,429	$	606	$	816	$	401	$	429

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses.

(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at LKE.

Credit Loss Recognized from Contracts with Customers [Table Text Block]

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended March 31.

	Three Months
	2021		2020
PPL	$	2	$	6
PPL Electric	1		4
LKE	1		2
LG&E	—		1
KU	1		1

Contract with Customer, Asset and Liability [Table Text Block]

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LKE		LG&E		KU
Contract liabilities at December 31, 2020	$	40	$	23	$	11	$	5	$	6
Contract liabilities at March 31, 2021	33		16		10		5		5
Revenue recognized during the three months ended March 31, 2021 that was included in the contract liability balance at December 31, 2020	21		9		11		5		6
Contract liabilities at December 31, 2019	$	37	$	21	$	9	$	5	$	4
Contract liabilities at March 31, 2020	34		15		14		10		4
Revenue recognized during the three months ended March 31, 2020 that was included in the contract liability balance at December 31, 2019	19		8		9		5		4

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Basic and Diluted EPS Computations

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended March 31 used in the EPS calculation are:

	Three Months
	2021		2020
Income (Numerator)
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	203	$	204
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	(2,043)	$	350
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	(1,840)	$	554
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	769,159		767,948
Add: Dilutive share-based payment awards	1,551		790
Weighted-average shares - Diluted EPS	770,710		768,738
Basic and Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.26	$	0.27
Income (loss) from discontinued operations (net of income taxes)	(2.65)		0.45
Net Income (Loss) available to PPL common shareowners	$	(2.39)	$	0.72

Common Stock Issuances

For the periods ended March 31, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months
	2021	2020
Stock-based compensation plans	520	598
DRIP	—	434

Antidilutive Securities Excluded From Diluted EPS

For the periods ended March 31, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months
	2021	2020
Stock-based compensation awards	233	250

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2021

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(PPL)
	Three Months
	2021		2020
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 21%	$	55	$	56
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Valuation allowance adjustments	8		6
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(12)		(11)
Other	(2)		(1)
Total increase (decrease)	4		5
Total income tax expense (benefit)	$	59	$	61

PPL Electric Utilities Corp [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(PPL Electric)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	32	$	33
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	12		13
Depreciation and other items not normalized	(2)		(2)
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		—
Total increase (decrease)	5		8
Total income tax expense (benefit)	$	37	$	41

LG And E And KU Energy LLC [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(LKE)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	37	$	35
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	7		7
Valuation allowance adjustments	(4)		—
Amortization of excess deferred federal and state income taxes	(7)		(7)
Other	(3)		(1)
Total increase (decrease)	(7)		(1)
Total income tax expense (benefit)	$	30	$	34

Louisville Gas And Electric Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(LG&E)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	20	$	19
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(3)		(3)
Other	(2)		(1)
Total increase (decrease)	(1)		—
Total income tax expense (benefit)	$	19	$	19

Kentucky Utilities Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended March 31 are as follows.

(KU)
	Three Months
	2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	22	$	21
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4		4
Amortization of excess deferred federal and state income taxes	(4)		(4)
Other	(1)		(1)
Total increase (decrease)	(1)		(1)
Total income tax expense (benefit)	$	21	$	20

XML

Utility Rate Regulation (Tables)

3 Months Ended

Mar. 31, 2021

Utility Rate Regulation [Line Items]

Regulatory Assets and Liabilities

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

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	—	$	—
Gas supply clause	8		4		—		—
Smart meter rider	21		17		21		17
Transmission formula rate	20		15		20		15
Storm costs	5		7		5		7
Other	12		10		1		1
Total current regulatory assets	$	121	$	99	$	47	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	556	$	570	$	282	$	290
Storm costs	14		17		—		—
Unamortized loss on debt	29		30		7		8
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	74		75		—		—
Accumulated cost of removal of utility plant	234		240		234		240
AROs	304		300		—		—
Other	4		7		2		3
Total noncurrent regulatory assets	$	1,233	$	1,262	$	525	$	541

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	18	$	21	$	18	$	21
Transmission service charge	27		1		27		1
Environmental cost recovery	6		4		—		—
Universal service rider	16		22		16		22
Fuel adjustment clause	5		5		—		—
TCJA customer refund	15		11		15		11
Storm damage expense rider	5		6		5		6
Act 129 compliance rider	6		7		6		7
Challenge to transmission formula rate return on equity reserve (a)	27		—		27		—
Other	5		2		—		—
Total current regulatory liabilities	$	130	$	79	$	114	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	—	$	—
Power purchase agreement - OVEC	41		43		—		—
Net deferred taxes	1,673		1,690		552		560
Defined benefit plans	64		60		21		18
Terminated interest rate swaps	65		66		—		—
Other	18		18		—		—
Total noncurrent regulatory liabilities	$	2,526	$	2,530	$	573	$	578

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	20	$	12	$	35	$	34
Gas supply clause	8		4		8		4		—		—
Other	11		9		8		7		3		2
Total current regulatory assets	$	74	$	59	$	36	$	23	$	38	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	274	$	280	$	170	$	174	$	104	$	106
Storm costs	14		17		9		11		5		6
Unamortized loss on debt	22		22		13		13		9		9
Interest rate swaps	18		23		18		23		—		—
Terminated interest rate swaps	74		75		43		44		31		31
AROs	304		300		85		85		219		215
Other	2		4		1		1		1		3
Total noncurrent regulatory assets	$	708	$	721	$	339	$	351	$	369	$	370

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	6	$	4	$	—	$	—	$	6	$	4
Fuel adjustment clause	5		5		1		—		4		5
Other	5		2		2		—		3		2
Total current regulatory liabilities	$	16	$	11	$	3	$	—	$	13	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	278	$	274	$	387	$	379
Power purchase agreement - OVEC	41		43		28		30		13		13
Net deferred taxes	1,121		1,130		525		528		596		602
Defined benefit plans	43		42		1		—		42		42
Terminated interest rate swaps	65		66		33		33		32		33
Other	18		18		16		17		2		1
Total noncurrent regulatory liabilities	$	1,953	$	1,952	$	881	$	882	$	1,072	$	1,070

XML

Financing Activities (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

The following credit facilities were in place at:

	March 31, 2021									December 31, 2020
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
PPL Capital Funding
Syndicated Credit Facility	Jan. 2024	$	1,450	$	—	$	942	$	508	$	—	$	402
Term Loan Credit Facility	Mar. 2022	100		100		—		—		100		—
Bilateral Credit Facility	Mar. 2022	50		—		—		50		—		—
Bilateral Credit Facility	Mar. 2022	50		—		15		35		—		15
Term Loan Credit Facility	Mar. 2021	—		—		—		—		100		—
Term Loan Credit Facility	Mar. 2021	—		—		—		—		200		—
Total PPL Capital Funding Credit Facilities		$	1,650	$	100	$	957	$	593	$	400	$	417
PPL Electric
Syndicated Credit Facility	Jan. 2024	$	650	$	—	$	206	$	444	$	—	$	1
LG&E
Syndicated Credit Facility	Jan. 2024	$	500	$	—	$	252	$	248	$	—	$	262
KU
Syndicated Credit Facility	Jan. 2024	$	400	$	—	$	148	$	252	$	—	$	203

Schedule of Short-term Debt

The following commercial paper programs were in place at:

	March 31, 2021							December 31, 2020
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.22%	$	1,500	$	942	$	558	0.25%	$	402
PPL Electric	0.20%	650		205		445			—
LG&E (a)	0.22%	425		252		173		0.28%	262
KU	0.21%	350		148		202		0.28%	203
Total		$	2,925	$	1,547	$	1,378		$	867

XML

Defined Benefits (Tables)

3 Months Ended

Mar. 31, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE, and LG&E for the periods ended March 31:

	Pension Benefits
	Three Months
	U.S.				U.K. (a)
	2021		2020		2021		2020
PPL
Service cost	$	13	$	13	$	25	$	23
Interest cost	32		38		29		36
Expected return on plan assets	(61)		(60)		(177)		(158)
Amortization of:
Prior service cost	2		2		—		—
Actuarial loss	25		20		54		54
Net periodic defined benefit costs (credits)	$	11	$	13	$	(69)	$	(45)

(a)    U.K. amounts are reflected in discontinued operations. See Note 9 for additional information on the share purchase agreement to sell the U.K. utility business.

	Other Postretirement Benefits
	Three Months
	2021		2020
PPL
Service cost	$	2	$	2
Interest cost	4		5
Expected return on plan assets	(5)		(5)
Net periodic defined benefit costs	$	1	$	2
LKE
Service cost	$	1	$	1
Interest cost	2		2
Expected return on plan assets	(2)		(2)
Net periodic defined benefit costs	$	1	$	1

PPL Electric Utilities Corp [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Allocation of Net Periodic Benefit Costs

For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

LG And E And KU Energy LLC [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE, and LG&E for the periods ended March 31:

	Pension Benefits
	Three Months
	2021		2020
LKE
Service cost	$	6	$	5
Interest cost	14		16
Expected return on plan assets	(24)		(24)
Amortization of:
Prior service cost	2		2
Actuarial loss (a)	11		9
Net periodic defined benefit costs (credits)	$	9	$	8

(a)    As a result of treatment approved by the KPSC, the difference between actuarial loss calculated in accordance with LKE's accounting policy and actuarial loss calculated using a 15-year amortization period was $3 million for the three months ended March 31, 2021 and 2020.

	Other Postretirement Benefits
	Three Months
	2021		2020
PPL
Service cost	$	2	$	2
Interest cost	4		5
Expected return on plan assets	(5)		(5)
Net periodic defined benefit costs	$	1	$	2
LKE
Service cost	$	1	$	1
Interest cost	2		2
Expected return on plan assets	(2)		(2)
Net periodic defined benefit costs	$	1	$	1

Louisville Gas And Electric Co [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE, and LG&E for the periods ended March 31:.

Allocation of Net Periodic Benefit Costs

For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

Kentucky Utilities Co [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Allocation of Net Periodic Benefit Costs

For the periods ended March 31, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Guarantees

The table below details guarantees provided as of March 31, 2021.

	Exposure at March 31, 2021			Expiration Date
PPL
WPD indemnifications for entities in liquidation and sales of assets	$	11	(a)	2023
WPD guarantee of pension and other obligations of unconsolidated entities	96		(b)
LKE
Indemnification of lease termination and other divestitures	$	200	(c)	2021
LG&E and KU
LG&E and KU obligation of shortfall related to OVEC			(d)

(a)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. Additionally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

(b)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 March 31, 2021, 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.

(c)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 may exceed the maximum. 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 various indemnification scenarios, but does not expect such outcomes to result in significant losses above the amounts recorded.

(d)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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $103 million at March 31, 2021, consisting of LG&E's share of $71 million and KU's share of $32 million. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See "Energy Purchase Commitments" in Note 11 in PPL's, LKE's, LG&E's and KU's 2020 Form 10-K for additional information on the OVEC power purchase contract.

In March 2018, a sponsor with a 4.85% pro-rata share of OVEC obligations filed for bankruptcy under Chapter 11 and, in August 2018, received a rejection order for the OVEC power purchase contract in the bankruptcy proceeding. OVEC and other entities challenged the contract rejection, the bankruptcy plan confirmation and regulatory aspects of the plan in various forums. In May 2020, OVEC and the relevant sponsor announced a settlement resolving all disputed matters in the bankruptcy and other proceedings, including providing that the sponsor will withdraw its request to reject the power purchase agreement. The settlement was implemented in July 2020.

XML

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2021

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

LG And E And KU Energy LLC [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended March 31, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months
	2021		2020
PPL Electric from PPL Services	$	10	$	10
LKE from PPL Services	6		6
PPL Electric from PPL EU Services	50		41
LG&E from LKS	42		38
KU from LKS	44		41

XML

Other Income (Expense) - net (Tables)

3 Months Ended

Mar. 31, 2021

Other Income (Expense) Net [Line Items]

Schedule of Other Nonoperating Income (Expense)

The details of "Other Income (Expense) - net" for the periods ended March 31, were:

	Three Months
	2021		2020
Other Income
Defined benefit plans - non-service credits (Note 10)	$	4	$	1
AFUDC - equity component	4		3
Miscellaneous	—		1
Total Other Income	8		5
Other Expense
Charitable contributions	1		1
Miscellaneous	7		9
Total Other Expense	8		10
Other Income (Expense) - net	$	—	$	(5)

PPL Electric Utilities Corp [Member]

Other Income (Expense) Net [Line Items]

Schedule of Other Nonoperating Income (Expense)

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The assets and liabilities measured at fair value were:

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	421	$	421	$	—	$	—	$	442	$	442	$	—	$	—
Restricted cash and cash equivalents (a)	1		1		—		—		1		1		—		—
Special use funds (a):
Commingled debt fund measured at NAV (b)	25		—		—		—		26		—		—		—
Commingled equity fund measured at NAV (b)	24		—		—		—		25		—		—		—
Total special use funds	49		—		—		—		51		—		—		—
Total assets	$	471	$	422	$	—	$	—	$	494	$	443	$	—	$	—
Liabilities
Price risk management liabilities (c):
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
PPL Electric
Assets
Cash and cash equivalents	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
Total assets	$	29	$	29	$	—	$	—	$	40	$	40	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Total assets	$	16	$	16	$	—	$	—	$	29	$	29	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
LG&E
Assets
Cash and cash equivalents	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—
Total assets	$	7	$	7	$	—	$	—	$	7	$	7	$	—	$	—

	March 31, 2021								December 31, 2020
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
Total price risk management liabilities	$	17	$	—	$	17	$	—	$	23	$	—	$	23	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	22	$	22	$	—	$	—

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

(b)In accordance with accounting guidance, certain investments that are measured at fair value using net asset value per share (NAV), or its equivalent, have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Balance Sheets.

(c)Current portion is included in "Other current liabilities" and noncurrent portion is included in "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

Fair Value, by Balance Sheet Grouping

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below.

	March 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	14,691	$	16,607	$	14,689	$	17,774
PPL Electric	4,237		4,881		4,236		5,338
LKE	6,075		7,051		6,074		7,589
LG&E	2,007		2,321		2,007		2,499
KU	2,618		3,042		2,618		3,334

(a)Amounts are net of debt issuance costs.

XML

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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

	March 31, 2021								December 31, 2020
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	2
Cross-currency swaps (c)	2		—		—		—		94		—		—		—
Foreign currency contracts (c)	—		—		23		180		—		—		—		137
Total current	2		1		23		180		94		—		—		139
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps (a) (b)	—		16		—		—		—		—		—		21
Cross-currency swaps (c)	37		—		—		—		52		—		—		—
Total noncurrent	37		16		—		—		52		—		—		21
Total derivatives	$	39	$	17	$	23	$	180	$	146	$	—	$	—	$	160

(a)Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b)Excludes accrued interest, if applicable.

(c)Included in "Current assets held for sale" and "Current liabilities held for sale" on the Balance Sheets.

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2021.

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	—	Interest expense	$	(1)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	(46)		Income (Loss) from Discontinued Operations (net of taxes)	(37)
Total	$	(46)		$	(39)

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued Operations (net of taxes)	$	(25)
Interest rate swaps	Interest expense	(1)
	Total	$	(26)
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	6

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended March 31, 2020.

	Three Months			Three Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI		Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income
Cash Flow Hedges:
Interest rate swaps	$	(5)	Interest expense	$	(2)
			Income (Loss) from Discontinued Operations (net of taxes)	(1)
Cross-currency swaps	15		Income (Loss) from Discontinued Operations (net of taxes)	6
Total	$	10		$	3

Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	Three Months
Foreign currency contracts	Income (Loss) from Discontinued operations (net of taxes)	$	62
Interest rate swaps	Interest expense	(1)
	Total	$	61
Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2021.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of income taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	153	$	(2,043)
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(1)		(1)
Cross-currency swaps:
Hedged items	—		37
Amount of gain (loss) reclassified from AOCI to Income	—		(37)

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended March 31, 2020.

	Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
	Three Months
	Interest Expense		Income (Loss) from Discontinued Operations (net of taxes)
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded	$	154	$	350
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income	(2)		(1)
Cross-currency swaps:
Hedged items	—		(6)
Amount of gain (loss) reclassified from AOCI to Income	—		6

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
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
March 31, 2021
Treasury Derivatives
PPL	$	62	$	18	$	—	$	44	$	197	$	18	$	22	$	157
LKE	—		—		—		—		17		—		—		17
LG&E	—		—		—		—		17		—		—		17

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2020
Treasury Derivatives
PPL	$	146	$	34	$	—	$	112	$	160	$	34	$	—	$	126
LKE	—		—		—		—		23		—		—		23
LG&E	—		—		—		—		23		—		—		23

Credit Risk-Related Contingent Features

At March 31, 2021, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	139

(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]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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

	March 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	2
Total current	—		1		—		2
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	—		16		—		21
Total noncurrent	—		16		—		21
Total derivatives	$	—	$	17	$	—	$	23

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2021.

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

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2020. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months
Interest rate swaps	Interest expense	$	(1)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

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
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
March 31, 2021
Treasury Derivatives
PPL	$	62	$	18	$	—	$	44	$	197	$	18	$	22	$	157
LKE	—		—		—		—		17		—		—		17
LG&E	—		—		—		—		17		—		—		17

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2020
Treasury Derivatives
PPL	$	146	$	34	$	—	$	112	$	160	$	34	$	—	$	126
LKE	—		—		—		—		23		—		—		23
LG&E	—		—		—		—		23		—		—		23

Credit Risk-Related Contingent Features

At March 31, 2021, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	139

(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]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

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

	March 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	$	—	$	1	$	—	$	2
Total current	—		1		—		2
Noncurrent:
Price Risk Management
Assets/Liabilities:
Interest rate swaps	—		16		—		21
Total noncurrent	—		16		—		21
Total derivatives	$	—	$	17	$	—	$	23

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2021.

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

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended March 31, 2020. 

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months
Interest rate swaps	Interest expense	$	(1)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months
Interest rate swaps	Regulatory assets - noncurrent	$	(8)

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
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
March 31, 2021
Treasury Derivatives
PPL	$	62	$	18	$	—	$	44	$	197	$	18	$	22	$	157
LKE	—		—		—		—		17		—		—		17
LG&E	—		—		—		—		17		—		—		17

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2020
Treasury Derivatives
PPL	$	146	$	34	$	—	$	112	$	160	$	34	$	—	$	126
LKE	—		—		—		—		23		—		—		23
LG&E	—		—		—		—		23		—		—		23

Credit Risk-Related Contingent Features

At March 31, 2021, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	139

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

XML

Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

LG And E And KU Energy LLC [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

Louisville Gas And Electric Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

Kentucky Utilities Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

The changes in the carrying amounts of AROs were as follows.

	PPL		LKE		LG&E		KU
Balance at December 31, 2020	$	182	$	182	$	67	$	115
Accretion	4		4		1		3
Obligations settled	(15)		(15)		(6)		(9)
Balance at March 31, 2021	$	171	$	171	$	62	$	109

XML

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The after-tax changes in AOCI by component for the periods ended March 31 were as follows.

	Foreign currency translation adjustments (a)		Unrealized gains (losses)  on qualifying derivatives		Defined benefit plans (b)
					Prior service costs		Actuarial gain (loss)		Total
PPL
December 31, 2020	$	(1,158)	$	—	$	(16)	$	(3,046)	$	(4,220)
Amounts arising during the period	303		(30)		—		—		273
Reclassifications from AOCI	—		25		—		40		65
Net OCI during the period	303		(5)		—		40		338
March 31, 2021	$	(855)	$	(5)	$	(16)	$	(3,006)	$	(3,882)
December 31, 2019	$	(1,425)	$	(5)	$	(18)	$	(2,910)	$	(4,358)
Amounts arising during the period	(61)		8		—		—		(53)
Reclassifications from AOCI	—		(3)		1		47		45
Net OCI during the period	(61)		5		1		47		(8)
March 31, 2020	$	(1,486)	$	—	$	(17)	$	(2,863)	$	(4,366)

(a)    Amounts relate to operations of the U.K. utility business.

(b)    Substantially all of the amounts relate to pension plans of the U.K. utility business. At March 31, 2021, the combined accumulated other comprehensive loss related to these plans was $2.8 billion.

Reclassification out of Other Comprehensive Income (Loss)

The following table presents PPL's gains (losses) and related income taxes for reclassifications from AOCI for the periods ended March 31.

	Three Months				Affected Line Item on the
Details about AOCI	2021		2020		Statements of Income
Qualifying derivatives
Interest rate swaps	$	(1)	$	(2)	Interest Expense
	(1)		(1)		Income (Loss) from Discontinued Operations (net of income taxes)
Cross-currency swaps	(37)		6		Income (Loss) from Discontinued Operations (net of income taxes)
Total Pre-tax	(39)		3
Income Taxes	14		—
Total After-tax	(25)		3
Defined benefit plans
Prior service costs (a)	—		(1)
Net actuarial loss (a)	(62)		(59)
Total Pre-tax	(62)		(60)
Income Taxes	22		12
Total After-tax	(40)		(48)
Total reclassifications during the period	$	(65)	$	(45)

(a)    These AOCI components are included in the computation of net periodic defined benefit cost. See Note 10 for additional information.

XML

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 716	$ 716
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	421	442
Restricted Cash, Current	1	1
Cash, Cash Equivalents and Restricted Cash	422	443	$ 737	$ 660
Accounts Receivable - Customer and Unbilled Revenue [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	45	44
Charged to Income	2
Deductions	1
Other [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	28	28
Charged to Income	0
Deductions	0
PPL Electric Utilities Corp [Member]
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	29	40
Cash, Cash Equivalents and Restricted Cash	29	40	35	264
PPL Electric Utilities Corp [Member] | Accounts Receivable - Customer and Unbilled Revenue [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	40	39
Charged to Income	1
Deductions	0
PPL Electric Utilities Corp [Member] | Other [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	1	1
Charged to Income	0
Deductions	0
LG And E And KU Energy LLC [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	996	996
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	16	29	47	27
LG And E And KU Energy LLC [Member] | Accounts Receivable - Customer and Unbilled Revenue [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	5	5
Charged to Income	1
Deductions	1
LG And E And KU Energy LLC [Member] | Other [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	27	27
Charged to Income	0
Deductions	0
Louisville Gas And Electric Co [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	389	389
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	7	7	7	15
Louisville Gas And Electric Co [Member] | Accounts Receivable - Customer and Unbilled Revenue [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	3	3
Charged to Income	0
Deductions	0
Kentucky Utilities Co [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill	607	607
Reconciliation of Cash, Cash Equivalents and Restricted Cash from the Balance Sheet to Cash Flow Statement [Line Items]
Cash and cash equivalents	8	22	$ 40	$ 12
Kentucky Utilities Co [Member] | Accounts Receivable - Customer and Unbilled Revenue [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance	2	$ 2
Charged to Income	1
Deductions	$ 1

XML

Segment and Related Information (Details) $ in Millions		3 Months Ended
		Mar. 31, 2021 USD ($) Integer	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Income Statement Data [Abstract]
Operating Revenues from external customers		$ 1,498	$ 1,440
Net income (loss)		(1,840)	554
Balance Sheet Data [Abstract]
Assets		47,781		$ 48,116
Segment (Numeric) [Abstract]
Goodwill		716		716
Kentucky Regulated [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		885	825
Net income (loss)		146	127
Financing Costs Allocated to Segment, Net of Tax			8
Income Taxes Allocated to Segment			2
Balance Sheet Data [Abstract]
Assets		15,904		15,943
Pennsylvania Regulated [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		605	608
Net income (loss)		113	118
Balance Sheet Data [Abstract]
Assets		12,585		12,347
Corporate and Other [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		8	7
Net income (loss)		(56)	(41)
Balance Sheet Data [Abstract]
Assets		867		843
DiscontinuedOperationsSegment
Income Statement Data [Abstract]
Net income (loss)		(2,043)	350
Balance Sheet Data [Abstract]
Assets		18,425		18,983
PPL Electric Utilities Corp [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		605	608
Net income (loss)	[1]	113	118
Balance Sheet Data [Abstract]
Assets		$ 12,554		12,324
Segment (Numeric) [Abstract]
Number of Reportable Segments | Integer		1
Number of Operating Segments | Integer		2
LG And E And KU Energy LLC [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		$ 885	825
Net income (loss)	[2]	146	135
Balance Sheet Data [Abstract]
Assets		16,238		16,277
Segment (Numeric) [Abstract]
Goodwill		$ 996		996
Number of Reportable Segments | Integer		1
Number of Operating Segments | Integer		1
Louisville Gas And Electric Co [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		$ 428	407
Net income (loss)	[3]	75	73
Balance Sheet Data [Abstract]
Assets		7,328		7,345
Segment (Numeric) [Abstract]
Goodwill		$ 389		389
Number of Reportable Segments | Integer		1
Number of Operating Segments | Integer		1
Kentucky Utilities Co [Member]
Income Statement Data [Abstract]
Operating Revenues from external customers		$ 469	432
Net income (loss)	[4]	86	$ 80
Balance Sheet Data [Abstract]
Assets		9,060		9,072
Segment (Numeric) [Abstract]
Goodwill		$ 607		$ 607
Number of Reportable Segments | Integer		1
Number of Operating Segments | Integer		1

[1] Net income equals comprehensive income.

[2] Net income approximates comprehensive income.

[3] Net income equals comprehensive income.

[4] Net income equals comprehensive income.

XML

Revenue from Contracts with Customers (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2022	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	$ 1,498	$ 1,440
Alternative Revenue Programs	24	(3)
Other Revenue	(6)	(8)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	1,516	1,429
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	2	6
Contract with Customer, Liability	33	34		$ 40	$ 37
Contract with Customer, Liability, Revenue Recognized	21	19
Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	774	714
Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	313	312
Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	152	144
Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	91	87
Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	6	5
Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	20	8
Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	160	159
PPL Electric [Member]
Contract with Customer, Asset and Liability [Abstract]
Revenue Reserve for ROE Challenge	27
Pennsylvania Regulated [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	605	608
Kentucky Regulated [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	885	825
Corporate and Other [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	8	7
Corporate and Other [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	47
Corporate and Other [Member] | Forecast [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount			$ 38
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period			12 months
PPL Electric Utilities Corp [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	605	608
Alternative Revenue Programs	22	0
Other Revenue	0	(2)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	627	606
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	1	4
Contract with Customer, Liability	16	15		23	21
Contract with Customer, Liability, Revenue Recognized	9	8
Revenue Reserve for ROE Challenge	27
PPL Electric Utilities Corp [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	361	344
PPL Electric Utilities Corp [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	82	81
PPL Electric Utilities Corp [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	12	8
PPL Electric Utilities Corp [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	12	14
PPL Electric Utilities Corp [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0
PPL Electric Utilities Corp [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0
PPL Electric Utilities Corp [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	160	159
LG And E And KU Energy LLC [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	885	825
Alternative Revenue Programs	2	(3)
Other Revenue	(6)	(6)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	881	816
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	1	2
Contract with Customer, Liability	10	14		11	9
Contract with Customer, Liability, Revenue Recognized	11	9
LG And E And KU Energy LLC [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	413	370
LG And E And KU Energy LLC [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	231	231
LG And E And KU Energy LLC [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	140	136
LG And E And KU Energy LLC [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	71	66
LG And E And KU Energy LLC [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	6	5
LG And E And KU Energy LLC [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	20	8
LG And E And KU Energy LLC [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0
Louisville Gas And Electric Co [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	428	407
Alternative Revenue Programs	0	(3)
Other Revenue	(3)	(3)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	425	401
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	0	1
Contract with Customer, Liability	5	10		5	5
Contract with Customer, Liability, Revenue Recognized	5	5
Louisville Gas And Electric Co [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	205	187
Louisville Gas And Electric Co [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	121	124
Louisville Gas And Electric Co [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	46	45
Louisville Gas And Electric Co [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	34	28
Louisville Gas And Electric Co [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0
Louisville Gas And Electric Co [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	19	17
Louisville Gas And Electric Co [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	0	0
Kentucky Utilities Co [Member]
Reconciliation of Revenue from Contracts with Customers [Abstract]
Operating Revenues	469	432
Alternative Revenue Programs	2	0
Other Revenue	(3)	(3)
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	468	429
Contract with Customer, Asset and Liability [Abstract]
Accounts Receivable, Credit Loss Expense (Reversal)	1	1
Contract with Customer, Liability	5	4		$ 6	$ 4
Contract with Customer, Liability, Revenue Recognized	6	4
Kentucky Utilities Co [Member] | Residential [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	208	183
Kentucky Utilities Co [Member] | Commercial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	110	107
Kentucky Utilities Co [Member] | Industrial [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	94	91
Kentucky Utilities Co [Member] | Other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	37	38
Kentucky Utilities Co [Member] | Wholesale - municipal [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	6	5
Kentucky Utilities Co [Member] | Wholesale - other [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	13	5
Kentucky Utilities Co [Member] | Transmission [Member]
Disaggregation of Revenue [Abstract]
Revenues from Contracts with Customers	$ 0	$ 0

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income (Numerator) [Abstract]
Net income (loss)	$ (1,840)	$ 554
Net income (loss) available to PPL common shareowners - Basic	(1,840)	554
Net income (loss) available to PPL common shareowners - Diluted	$ (1,840)	$ 554
Shares of Common Stock (Denominator) [Abstract]
Weighted-average shares - Basic EPS (in shares)	769,159	767,948
Add incremental non-participating securities: [Abstract]
Share-based payment awards (in shares)	1,551	790
Weighted-average shares - Diluted EPS (in shares)	770,710	768,738
Shares Issued (Numeric) [Abstract]
Common stock issued under stock-based compensation plans (in shares)	520	598
Common stock issued under DRIP (in shares)	0	434
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$ 203	$ 204
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$ (2,043)	$ 350
Income (loss) from Discontinued Operations (net of income taxes)	$ (2.65)	$ 0.45
Income from Continuing Operations after income taxes	$ 0.26	$ 0.27
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the computations of diluted EPS	233	250

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	$ 55	$ 56
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	12	13
Depreciation and other items not normalized	(2)	(2)
Valuation allowance adjustments	8	6
Amortization of excess deferred income taxes	(12)	(11)
Other	(2)	(1)
Total increase (decrease)	4	5
Total income tax expense (benefit)	59	61
PPL Electric Utilities Corp [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	32	33
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	12	13
Depreciation and other items not normalized	(2)	(2)
Amortization of excess deferred income taxes	(3)	(3)
Other	(2)	0
Total increase (decrease)	5	8
Total income tax expense (benefit)	37	41
LG And E And KU Energy LLC [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	37	35
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	7	7
Valuation allowance adjustments	(4)	0
Amortization of excess deferred income taxes	(7)	(7)
Other	(3)	(1)
Total increase (decrease)	(7)	(1)
Total income tax expense (benefit)	30	34
Louisville Gas And Electric Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	20	19
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	4	4
Amortization of excess deferred income taxes	(3)	(3)
Other	(2)	(1)
Total increase (decrease)	(1)	0
Total income tax expense (benefit)	19	19
Kentucky Utilities Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income Before Income Taxes at statutory tax rate	22	21
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	4	4
Amortization of excess deferred income taxes	(4)	(4)
Other	(1)	(1)
Total increase (decrease)	(1)	(1)
Total income tax expense (benefit)	$ 21	$ 20

XML

Utility Rate Regulation - Regulatory Assets (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Regulatory Assets [Line Items]
Current regulatory assets	$ 121	$ 99
Noncurrent regulatory assets	1,233	1,262
Plant outage costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	55	46
Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	8	4
Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	21	17
Transmission Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets	20	15
Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	556	570
Storm Costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	5	7
Noncurrent regulatory assets	14	17
Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	29	30
Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	18	23
Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	74	75
Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	234	240
Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	304	300
Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	12	10
Noncurrent regulatory assets	4	7
PPL Electric Utilities Corp [Member]
Regulatory Assets [Line Items]
Current regulatory assets	47	40
Noncurrent regulatory assets	525	541
PPL Electric Utilities Corp [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Smart Meter Rider [Member]
Regulatory Assets [Line Items]
Current regulatory assets	21	17
PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets	20	15
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	282	290
PPL Electric Utilities Corp [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	5	7
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	7	8
PPL Electric Utilities Corp [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	234	240
PPL Electric Utilities Corp [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
PPL Electric Utilities Corp [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	1	1
Noncurrent regulatory assets	2	3
LG And E And KU Energy LLC [Member]
Regulatory Assets [Line Items]
Current regulatory assets	74	59
Noncurrent regulatory assets	708	721
LG And E And KU Energy LLC [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	55	46
LG And E And KU Energy LLC [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	8	4
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	274	280
LG And E And KU Energy LLC [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	14	17
LG And E And KU Energy LLC [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	22	22
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	18	23
LG And E And KU Energy LLC [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	74	75
LG And E And KU Energy LLC [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	304	300
LG And E And KU Energy LLC [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	11	9
Noncurrent regulatory assets	2	4
Louisville Gas And Electric Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets	36	23
Noncurrent regulatory assets	339	351
Louisville Gas And Electric Co [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	20	12
Louisville Gas And Electric Co [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	8	4
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	170	174
Louisville Gas And Electric Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	9	11
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	13	13
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	18	23
Louisville Gas And Electric Co [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	43	44
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	85	85
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	8	7
Noncurrent regulatory assets	1	1
Kentucky Utilities Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets	38	36
Noncurrent regulatory assets	369	370
Kentucky Utilities Co [Member] | Plant outage costs [Member]
Regulatory Assets [Line Items]
Current regulatory assets	35	34
Kentucky Utilities Co [Member] | Gas supply clause [Member]
Regulatory Assets [Line Items]
Current regulatory assets	0	0
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	104	106
Kentucky Utilities Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	5	6
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	9	9
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	0	0
Kentucky Utilities Co [Member] | Terminated Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	31	31
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets	219	215
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets	3	2
Noncurrent regulatory assets	$ 1	$ 3

XML

Utility Rate Regulation - Regulatory Liabilities (Details) - USD ($)
$ in Millions

3 Months Ended

7 Months Ended

Mar. 31, 2021

Dec. 31, 2020

Regulatory Liabilities [Line Items]

Current regulatory liabilities

$ 130

$ 79

Noncurrent regulatory liabilities

$ 2,526

2,530

Utility Rate Regulation

7. Utility Rate Regulation

(All Registrants)

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

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	—	$	—
Gas supply clause	8		4		—		—
Smart meter rider	21		17		21		17
Transmission formula rate	20		15		20		15
Storm costs	5		7		5		7
Other	12		10		1		1
Total current regulatory assets	$	121	$	99	$	47	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	556	$	570	$	282	$	290
Storm costs	14		17		—		—
Unamortized loss on debt	29		30		7		8
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	74		75		—		—
Accumulated cost of removal of utility plant	234		240		234		240
AROs	304		300		—		—
Other	4		7		2		3
Total noncurrent regulatory assets	$	1,233	$	1,262	$	525	$	541

	PPL				PPL Electric
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	18	$	21	$	18	$	21
Transmission service charge	27		1		27		1
Environmental cost recovery	6		4		—		—
Universal service rider	16		22		16		22
Fuel adjustment clause	5		5		—		—
TCJA customer refund	15		11		15		11
Storm damage expense rider	5		6		5		6
Act 129 compliance rider	6		7		6		7
Challenge to transmission formula rate return on equity reserve (a)	27		—		27		—
Other	5		2		—		—
Total current regulatory liabilities	$	130	$	79	$	114	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	—	$	—
Power purchase agreement - OVEC	41		43		—		—
Net deferred taxes	1,673		1,690		552		560
Defined benefit plans	64		60		21		18
Terminated interest rate swaps	65		66		—		—
Other	18		18		—		—
Total noncurrent regulatory liabilities	$	2,526	$	2,530	$	573	$	578

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	55	$	46	$	20	$	12	$	35	$	34
Gas supply clause	8		4		8		4		—		—
Other	11		9		8		7		3		2
Total current regulatory assets	$	74	$	59	$	36	$	23	$	38	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	274	$	280	$	170	$	174	$	104	$	106
Storm costs	14		17		9		11		5		6
Unamortized loss on debt	22		22		13		13		9		9
Interest rate swaps	18		23		18		23		—		—
Terminated interest rate swaps	74		75		43		44		31		31
AROs	304		300		85		85		219		215
Other	2		4		1		1		1		3
Total noncurrent regulatory assets	$	708	$	721	$	339	$	351	$	369	$	370

	LKE				LG&E				KU
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	6	$	4	$	—	$	—	$	6	$	4
Fuel adjustment clause	5		5		1		—		4		5
Other	5		2		2		—		3		2
Total current regulatory liabilities	$	16	$	11	$	3	$	—	$	13	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	665	$	653	$	278	$	274	$	387	$	379
Power purchase agreement - OVEC	41		43		28		30		13		13
Net deferred taxes	1,121		1,130		525		528		596		602
Defined benefit plans	43		42		1		—		42		42
Terminated interest rate swaps	65		66		33		33		32		33
Other	18		18		16		17		2		1
Total noncurrent regulatory liabilities	$	1,953	$	1,952	$	881	$	882	$	1,072	$	1,070

(a)See “Regulatory Matters - Federal Matters - Challenge to PPL Electric Transmission Formula Rate Return on Equity” below for further information.

Regulatory Matters

Kentucky Activities (PPL, LKE, LG&E and KU)

Rate Case Proceedings

On November 25, 2020, LG&E and KU filed requests with the KPSC for an increase in annual electricity and gas revenues of approximately $331 million ($131 million and $170 million in electricity revenues at LG&E and KU and $30 million in gas revenues at LG&E). The revenue increases would be an increase of 11.6% and 10.4% in electricity revenues at LG&E and KU, and an increase of 8.3% in gas revenues at LG&E. In recognition of the economic impact of COVID-19, LG&E and KU requested approval of a one-year billing credit which will credit customers approximately $53 million ($41 million at LG&E and $12 million at KU). The billing credit represents the return to customers of certain regulatory liabilities on LG&E’s and KU’s Balance Sheets and serves to partially mitigate the rate increases during the first year in which the new rates are in effect.

LG&E’s and KU’s applications also included a request for a CPCN to deploy Advanced Metering Infrastructure across LG&E’s and KU’s service territories in Kentucky.

The applications were based on a forecasted test year of July 1, 2021 through June 30, 2022 and requested an authorized return on equity of 10.0%.

On April 19, 2021, LG&E and KU entered into an agreement with all intervening parties to the proceedings resolving all matters in their applications, with the explicit exception of LG&E's and KU's net metering proposals. The agreement proposes increases in annual revenues of $217 million ($77 million and $116 million in electricity revenues at LG&E and KU and $24 million in gas revenues at LG&E) based on an authorized return on equity of 9.55%. The proposal includes an authorized 9.35% return on equity for the ECR and GLT mechanisms. The agreement does not modify the requested one-year billing credit. The agreement proposes that the KPSC should grant LG&E’s and KU’s request for a CPCN to deploy Advanced Metering Infrastructure and proposes the establishment of a Retired Asset Recovery rider (RAR) to provide for recovery of and return on the remaining investment in certain electric generating units upon their retirement over a ten-year period following retirement. In respect of the RAR rider, the agreement proposes that LG&E and KU will continue to use currently approved depreciation rates for Mill Creek units 1 and 2 and Brown Unit 3. The agreement also proposes a four-year “stay-out” commitment from LG&E and KU to refrain from effective base rate increases before July 1, 2025, subject to certain exceptions.

A hearing on the agreement, and the underlying proceedings, was completed on April 28, 2021. Subject to KPSC approval, the rates, decreased by the amount of the billing credit, are expected to become effective July 1, 2021. An Order on the net metering issues is expected by the end of September 2021. PPL, LKE, LG&E and KU cannot predict the outcome of these proceedings.

Pennsylvania Activities (PPL and PPL Electric)

Act 129

Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet, by specified dates, specified goals for reduction in customer electricity usage and peak demand. EDCs not meeting the requirements of Act 129 are subject to significant penalties. PPL Electric filed with the PUC its Act 129 Phase IV Energy Efficiency and Conservation Plan (Phase IV Act 129 Plan) on November 30, 2020, for the five-year period starting June 1, 2021 and ending on May 31, 2026. PPL Electric's Phase IV Act 129 Plan was approved by the PUC at its March 25, 2021, public meeting.

Federal Matters

Challenge to PPL Electric Transmission Formula Rate Return on Equity (PPL and PPL Electric)

On May 21, 2020, PP&L Industrial Customer Alliance (PPLICA) filed a complaint with the FERC alleging that PPL Electric's base return on equity (ROE) of 11.18% used to determine PPL Electric's formula transmission rate is unjust and unreasonable, and proposing an alternative ROE of 8.0% based on its interpretation of FERC Opinion No. 569. However, also on May 21, 2020, the FERC issued Opinion No. 569-A in response to numerous requests for rehearing of Opinion No. 569, which revised the method for analyzing base ROE. On June 10, 2020, PPLICA filed a Motion to Supplement the May 21, 2020 complaint in which PPLICA continued to allege that PPL Electric’s base ROE is unjust and unreasonable, but revised its analysis of PPL Electric's base ROE to reflect the guidance provided in Opinion No. 569-A. The amended complaint proposed an updated alternative ROE of 8.5% and also requested that the FERC preserve the original refund effective date as established by the filing of the original complaint on May 21, 2020. Several parties have filed motions to intervene, including one party who filed Comments in Support of the original complaint.

On July 10, 2020, PPL Electric filed its Answer and supporting Testimony to the PPLICA filings arguing that the FERC should deny the original and amended complaints as they are without merit and fail to demonstrate the existing base ROE is unjust and unreasonable. In addition, PPL Electric contended any refund effective date should be set for no earlier than June 10, 2020 and PPLICA's proposed replacement ROE should be rejected.

On October 15, 2020, the FERC issued an order on the PPLICA complaints which established hearing and settlement procedures, set a refund effective date of May 21, 2020 and granted the motions to intervene. On November 16, 2020, PPL Electric filed a request for rehearing of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date. On December 17, 2020, the FERC issued a Notice of Denial of Rehearing by Operation of Law and Providing for Further Consideration. On February 16 and April 19, 2021, PPL Electric filed Petitions for Review with the United States Court of Appeals for the District of Columbia Circuit of the portion of the October 15, 2020 Order that set the May 21, 2020 refund effective date.

PPL Electric continues to believe its ROE is just and reasonable and that it has meritorious defenses against the original and amended complaints. Settlement negotiations are currently proceeding, but there can be no assurance that they will result in a final settlement. Although PPL Electric cannot predict the outcome of this matter, in the first quarter of 2021, PPL Electric recorded a revenue reserve of $19 million after-tax. Of this amount, $13 million relates to the period from May 21, 2020 to December 31, 2020. Additional revenue earned from May 21, 2020 through the ultimate resolution of this matter may be subject to refund. A change of 50 basis points to the base ROE would impact PPL Electric's net income by approximately $12 million on an annual basis.

FERC Transmission Rate Filing (PPL, LKE, LG&E and KU)

In 2018, LG&E and KU applied to the FERC requesting elimination of certain on-going credits to a sub-set of transmission customers relating to the 1998 merger of LG&E's and KU's parent entities and the 2006 withdrawal of LG&E and KU from the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission operator and energy market. The application sought termination of LG&E's and KU's commitment to provide certain Kentucky municipalities mitigation for certain horizontal market power concerns arising out of the 1998 LG&E and KU merger and 2006 MISO withdrawal. The amounts at issue are generally waivers or credits granted to a limited number of Kentucky municipalities for either certain LG&E and KU or MISO transmission charges incurred for transmission service received. Due to the development of robust, accessible energy markets over time, LG&E and KU believe the mitigation commitments are no longer relevant or appropriate. In March 2019, the FERC granted LG&E's and KU's request to remove the ongoing credits, conditioned upon the implementation by LG&E

and KU of a transition mechanism for certain existing power supply arrangements, subject to FERC review and approval. In July 2019, LG&E and KU proposed their transition mechanism to the FERC and in September 2019, the FERC rejected the proposed transition mechanism. In September 2020, the FERC issued orders in the rehearing process that modified various aspects of the September 2019 orders which had approved future termination of the credits, including adjusting which customer arrangements are covered by the transition mechanism and respective future periods or dates for termination of credits. In November 2020, the FERC denied the parties' rehearing requests. In November 2020 and January 2021, LG&E and KU and other parties appealed the September 2020 and November 2020 orders at the D.C. Circuit Court of Appeals. The appellate proceedings are continuing, and also include certain additional prior pending petitions for review relating to the matter. On January 15, 2021, LG&E and KU made a filing seeking FERC acceptance of a new proposal for a transition mechanism. On March 16, 2021, the FERC accepted the filed transition mechanism agreements effective on March 17, 2021 but subject to refund, and established hearing and settlement procedures. LG&E and KU are also required to make certain compliance filings consistent with the March 16, 2021 order. LG&E and KU cannot predict the outcome of the respective appellate and FERC proceedings. LG&E and KU currently receive recovery of the waivers and credits provided through other rate mechanisms and such rate recovery would be anticipated to be adjusted consistent with potential changes or terminations of the waivers and credits, as such become effective.

Other

Purchase of Receivables Program (PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. Accounts receivable that are acquired are initially recorded at fair value on the date of acquisition. During the three months ended March 31, 2021, and 2020, PPL Electric purchased $324 million and $311 million of accounts receivable from alternative suppliers.

PPL Electric [Member]

Regulatory Liabilities [Line Items]

Regulatory Liability due to ROE Reserve, After Tax

$ 19

13

Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

18

21

Environmental Cost Recovery [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

4

Universal Service Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

16

22

Fuel adjustment clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

5

TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

15

11

Storm Damage Expense Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

6

Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

7

Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

665

653

Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

41

43

Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

1,673

1,690

Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

64

60

Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

65

66

Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

2

Noncurrent regulatory liabilities

18

18

Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

27

1

Change in Regulatory Liability due to ROE Adjustment

Regulatory Liabilities [Line Items]

Current regulatory liabilities

27

0

PPL Electric Utilities Corp [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

114

68

Noncurrent regulatory liabilities

573

578

Regulatory Liability due to ROE Reserve, After Tax

19

13

PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

18

21

PPL Electric Utilities Corp [Member] | Environmental Cost Recovery [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Universal Service Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

16

22

PPL Electric Utilities Corp [Member] | Fuel adjustment clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | TCJA customer refund [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

15

11

PPL Electric Utilities Corp [Member] | Storm Damage Expense Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

6

PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

7

PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

552

560

PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

21

18

PPL Electric Utilities Corp [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Noncurrent regulatory liabilities

0

0

PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

27

1

PPL Electric Utilities Corp [Member] | Change in Regulatory Liability due to ROE Adjustment

Regulatory Liabilities [Line Items]

Current regulatory liabilities

27

0

LG And E And KU Energy LLC [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

16

11

Noncurrent regulatory liabilities

1,953

1,952

LG And E And KU Energy LLC [Member] | Environmental Cost Recovery [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

4

LG And E And KU Energy LLC [Member] | Fuel adjustment clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

5

LG And E And KU Energy LLC [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

665

653

LG And E And KU Energy LLC [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

41

43

LG And E And KU Energy LLC [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

1,121

1,130

LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

43

42

LG And E And KU Energy LLC [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

65

66

LG And E And KU Energy LLC [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

5

2

Noncurrent regulatory liabilities

18

18

Louisville Gas And Electric Co [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

3

0

Noncurrent regulatory liabilities

881

882

Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

0

0

Louisville Gas And Electric Co [Member] | Fuel adjustment clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

1

0

Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

278

274

Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

28

30

Louisville Gas And Electric Co [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

525

528

Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

1

0

Louisville Gas And Electric Co [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

33

33

Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

2

0

Noncurrent regulatory liabilities

16

17

Kentucky Utilities Co [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

13

11

Noncurrent regulatory liabilities

1,072

1,070

Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

6

4

Kentucky Utilities Co [Member] | Fuel adjustment clause [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

4

5

Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

387

379

Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

13

13

Kentucky Utilities Co [Member] | Net deferred taxes [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

596

602

Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

42

42

Kentucky Utilities Co [Member] | Terminated interest rate swaps [Member]

Regulatory Liabilities [Line Items]

Noncurrent regulatory liabilities

32

33

Kentucky Utilities Co [Member] | Other Regulatory Liabilities [Member]

Regulatory Liabilities [Line Items]

Current regulatory liabilities

3

2

Noncurrent regulatory liabilities

$ 2

$ 1

XML

Utility Rate Regulation - Regulatory Matters (Details) - USD ($) $ in Millions				3 Months Ended	7 Months Ended	12 Months Ended	60 Months Ended
	Apr. 19, 2021	Nov. 25, 2020	May 21, 2020	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2022	May 31, 2026
PPL Electric [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage			11.18%
Change in Net Income due to ROE Adjustment				$ 12
Proposed Return Of Equity From Complaint			8.00%
Amended Proposed Return On Equity From Complaint			8.50%
Regulatory Liability due to ROE Reserve, After Tax				19	$ 13
LKE [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 331
Public Utilities, Requested Bill Credit		$ 53
LKE [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 217
LGE [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
LGE [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
LGE [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
LGE [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
LGE [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Bill Credit		$ 41
LGE [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 131
Public Utilities, Requested Rate Increase (Decrease), Percentage		11.60%
LGE [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 77
LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 30
Public Utilities, Requested Rate Increase (Decrease), Percentage		8.30%
LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 24
LGE [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery and Gas Line Tracker | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
KU [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
KU [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
KU [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
KU [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
KU [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 170
Public Utilities, Requested Rate Increase (Decrease), Percentage		10.40%
Public Utilities, Requested Bill Credit		$ 12
KU [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 116
KU [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
PPL Electric Utilities Corp [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage			11.18%
Change in Net Income due to ROE Adjustment				12
Proposed Return Of Equity From Complaint			8.00%
Amended Proposed Return On Equity From Complaint			8.50%
Regulatory Liability due to ROE Reserve, After Tax				$ 19	$ 13
PPL Electric Utilities Corp [Member] | PPL Electric [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Act 129 Recovery Period Under Phase IV Plan							5 years
LG And E And KU Energy LLC [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		331
Public Utilities, Requested Bill Credit		$ 53
LG And E And KU Energy LLC [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 217
LG And E And KU Energy LLC [Member] | LGE [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
LG And E And KU Energy LLC [Member] | LGE [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Bill Credit		$ 41
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 131
Public Utilities, Requested Rate Increase (Decrease), Percentage		11.60%
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 77
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 30
Public Utilities, Requested Rate Increase (Decrease), Percentage		8.30%
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Gas Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 24
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery and Gas Line Tracker | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
LG And E And KU Energy LLC [Member] | KU [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
LG And E And KU Energy LLC [Member] | KU [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 170
Public Utilities, Requested Rate Increase (Decrease), Percentage		10.40%
Public Utilities, Requested Bill Credit		$ 12
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 116
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
Louisville Gas And Electric Co [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
Louisville Gas And Electric Co [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Electric and Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Bill Credit		$ 41
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 131
Public Utilities, Requested Rate Increase (Decrease), Percentage		11.60%
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 77
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Gas Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 30
Public Utilities, Requested Rate Increase (Decrease), Percentage		8.30%
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Gas Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 24
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery and Gas Line Tracker | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
Kentucky Utilities Co [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Requested Billing Credit Period		1 year
Kentucky Utilities Co [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
RAR Rider post-retirement recovery period	10 years
Stay Out Commitment Period	4 years
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Forecast [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Return on Equity, Percentage						10.00%
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.55%
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Electric Rates
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Requested Rate Increase (Decrease), Amount		$ 170
Public Utilities, Requested Rate Increase (Decrease), Percentage		10.40%
Public Utilities, Requested Bill Credit		$ 12
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Return on Equity, Percentage	9.35%
KU [Member] | Kentucky Public Service Commission [Member] | Electric Rates | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - Rate Case Proceedings (Numeric) [Abstract]
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 116

XML

Utility Rate Regulation - Other (Details) - Unaffiliated Third Party Entity [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
PPL Electric [Member]
Purchases Of Accounts Receivable [Line Items]
Purchases of Accounts Receivable	$ 324	$ 311
PPL Electric Utilities Corp [Member]
Purchases Of Accounts Receivable [Line Items]
Purchases of Accounts Receivable	$ 324	$ 311

XML

Financing Activities - Credit Arrangements (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
PPL Capital Funding [Member]
Line of Credit Facility [Line Items]
Capacity	$ 1,650
Borrowed	100	$ 400
Letters of Credit and Commercial Paper Issued	957	417
Unused Capacity	593
PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	1,450
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	942	402
Unused Capacity	508
PPL Capital Funding [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	100
Borrowed	100	100
Letters of Credit and Commercial Paper Issued	0	0
Unused Capacity	0
PPL Capital Funding [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	100
Letters of Credit and Commercial Paper Issued	0	0
Unused Capacity	0
PPL Capital Funding [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Capacity	0
Borrowed	0	200
Letters of Credit and Commercial Paper Issued	0	0
Unused Capacity	0
PPL Capital Funding [Member] | Bilateral Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	50
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	15	15
Unused Capacity	35
PPL Capital Funding [Member] | Bilateral Credit Facility #2
Line of Credit Facility [Line Items]
Capacity	50
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	0	0
Unused Capacity	50
PPL Electric [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	206	1
Unused Capacity	444
LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	252	262
Unused Capacity	248
KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	148	203
Unused Capacity	252
PPL Electric Utilities Corp [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	650
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	206	1
Unused Capacity	444
LG And E And KU Energy LLC [Member] | LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	252	262
Unused Capacity	248
LG And E And KU Energy LLC [Member] | KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	148	203
Unused Capacity	252
Louisville Gas And Electric Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	500
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	252	262
Unused Capacity	248
Kentucky Utilities Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	400
Borrowed	0	0
Letters of Credit and Commercial Paper Issued	148	$ 203
Unused Capacity	$ 252

XML

Financing Activities - Short-term Debt (Details) - Commercial Paper [Member] - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Capacity	$ 2,925
Commercial Paper Issuances	1,547	$ 867
Unused Capacity	$ 1,378
PPL Capital Funding [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.22%	0.25%
Capacity	$ 1,500
Commercial Paper Issuances	942	$ 402
Unused Capacity	$ 558
PPL Electric [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.20%
Capacity	$ 650
Commercial Paper Issuances	205	$ 0
Unused Capacity	$ 445
LGE [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.22%	0.28%
Capacity	$ 425	$ 350
Commercial Paper Issuances	252	$ 262
Unused Capacity	$ 173
KU [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.21%	0.28%
Capacity	$ 350
Commercial Paper Issuances	148	$ 203
Unused Capacity	$ 202
PPL Electric Utilities Corp [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.20%
Capacity	$ 650
Commercial Paper Issuances	205	$ 0
Unused Capacity	$ 445
LG And E And KU Energy LLC [Member] | LGE [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.22%	0.28%
Capacity	$ 425	$ 350
Commercial Paper Issuances	252	$ 262
Unused Capacity	$ 173
LG And E And KU Energy LLC [Member] | KU [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.21%	0.28%
Capacity	$ 350
Commercial Paper Issuances	148	$ 203
Unused Capacity	$ 202
Louisville Gas And Electric Co [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.22%	0.28%
Capacity	$ 425	$ 350
Commercial Paper Issuances	252	$ 262
Unused Capacity	$ 173
Kentucky Utilities Co [Member]
Short-term Debt [Line Items]
Weighted - Average Interest Rate	0.21%	0.28%
Capacity	$ 350
Commercial Paper Issuances	148	$ 203
Unused Capacity	$ 202

XML

Financing Activities - Long-term Debt (Details) - USD ($) $ in Millions	May 31, 2021	Apr. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
PPL Capital Funding [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			$ 1,650
Borrowed			100	$ 400
PPL Capital Funding [Member] | Term Loan Facility [Member]
Long-term Debt (Numeric) [Abstract]
Capacity			100
Borrowed			$ 100	$ 100
PPL Capital Funding [Member] | Term Loan Facility [Member] | Repayment | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount		$ 100
LGE [Member] | Trimble County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
LGE [Member] | Jefferson County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
LGE [Member] | Louisville/Jefferson County Metro Government of Kentucky Pollution Control Revenue Bonds, 2003 Series A | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount		$ 128
Stated interest rate		2.00%
LG And E And KU Energy LLC [Member] | LGE [Member] | Trimble County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
LG And E And KU Energy LLC [Member] | LGE [Member] | Jefferson County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
LG And E And KU Energy LLC [Member] | LGE [Member] | Louisville/Jefferson County Metro Government of Kentucky Pollution Control Revenue Bonds, 2003 Series A | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount		$ 128
Stated interest rate		2.00%
Louisville Gas And Electric Co [Member] | Trimble County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
Louisville Gas And Electric Co [Member] | Jefferson County Pollution Control Revenue Bonds, 2001 Series B | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 35
Stated interest rate	1.35%
Louisville Gas And Electric Co [Member] | Louisville/Jefferson County Metro Government of Kentucky Pollution Control Revenue Bonds, 2003 Series A | Remarketed [Member] | Subsequent Event [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount		$ 128
Stated interest rate		2.00%

XML

Financing Activities - Equity Securities (Details) - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2021	Feb. 28, 2018
Other Liabilities Disclosure [Abstract]
Common Stock Aggregate Sales Price		$ 1.0
Maximum Percentage Paid To Selling Agents	2.00%
Common stock issued	0

XML

Financing Activities - Distributions (Details) - $ / shares	1 Months Ended	3 Months Ended
	Feb. 28, 2021	Mar. 31, 2021	Mar. 31, 2020
Distributions (Numeric) [Abstract]
Current quarterly common stock dividend (in dollars per share)	$ 0.415	$ 0.415	$ 0.415
Annualized current quarterly common stock dividend (in dollars per share)	$ 1.66

XML

Acquisitions, Development and Divestitures - Discontinued Operations (Details) £ in Thousands, $ in Millions			3 Months Ended
	Jul. 31, 2021 USD ($) Rate	Jul. 31, 2021 GBP (£)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Jul. 31, 2021 GBP (£) Rate	Dec. 31, 2020 USD ($)
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income (Loss) from Discontinued Operations (net of income taxes)			$ (2,043)	$ 350
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Total Assets			18,425			$ 18,983
Total Liabilities			11,376			11,023
Discontinued Operations, Held-for-sale | WPD
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]
Loss on Sale			(1,647)	0
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Disposal Group, Net of Tax			3,700
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Operating Revenues			634	614
Operating Expenses			252	222
Other Income (Expense) - net			66	130
Interest Expense			93	93
Income before income taxes			355	429
Loss on Sale			(1,647)	0
Income tax expense			751	79
Income (Loss) from Discontinued Operations (net of income taxes)			(2,043)	350
Disposal Group, Including Discontinued Operation, Income Tax Expense Attributable to Realization of Book-Tax Outside Basis, Domestic			689
Disposal Group, Including Discontinued Operation, Income Tax Expense Attributable to Realization of Book-Tax Outside Basis, Foreign			73
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Cash and cash equivalents			152			266
Accounts receivable and unbilled revenues			459			389
Price risk management assets			62			146
Property, plant and equipment, net			15,236			14,392
Goodwill			1,029			2,558
Other intangibles			434			413
Pension benefit asset			911			682
Other assets			142			137
Total Assets			18,425			18,983
Short-term debt and long-term debt due within one year			812			994
Accounts payable			199			220
Customer deposits			240			217
Accrued interest			178			190
Long-term debt			8,297			7,938
Total deferred income taxes			1,123			1,032
Price risk management liabilities			180			137
Other deferred credits and liabilities			347			295
Total Liabilities			11,376			11,023
Net assets			7,049			$ 7,960
Loss on Sale			(1,647)	$ 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax			118
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Disposal Group, Net of Tax			$ 3,700
Discontinued Operations, Held-for-sale | WPD | Forecast [Member]
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]
Sales proceeds	$ 10,806	£ 7,800,000
Proceeds from Daily Dividend, Divestiture of Business | £					£ 548
Loss on Sale	(1,647)
Costs to sell	48
Carrying value	12,405
Additional Proceeds From Divestiture Of Business Not Included In Selling Price | £		£ 49,000
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Disposal Group, Net of Tax	$ 3,700
Foreign Currency Exchange Rate, Translation | Rate	138.00%				138.00%
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Loss on Sale	$ (1,647)
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]
Loss on Sale	(1,647)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Disposal Group, Net of Tax	$ 3,700

XML

Acquisitions, Development and Divestitures - Development (Details) $ in Millions	Mar. 31, 2022 USD ($)
Forecast [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 3,800

XML

Defined Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Pension Plan [Member] | U.S.
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 13	$ 13
Interest cost	32	38
Expected return on plan assets	(61)	(60)
Amortization of: [Abstract]
Prior service cost	2	2
Actuarial loss	25	20
Net periodic defined benefit costs (credits)	11	13
Pension Plan [Member] | U.K.
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	25	23
Interest cost	29	36
Expected return on plan assets	(177)	(158)
Amortization of: [Abstract]
Prior service cost	0	0
Actuarial loss	54	54
Net periodic defined benefit costs (credits)	(69)	(45)
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	2	2
Interest cost	4	5
Expected return on plan assets	(5)	(5)
Amortization of: [Abstract]
Net periodic defined benefit costs (credits)	1	2
PPL Electric Utilities Corp [Member] | PPL Services [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors	0	3
LG And E And KU Energy LLC [Member] | Pension Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	6	5
Interest cost	14	16
Expected return on plan assets	(24)	(24)
Amortization of: [Abstract]
Prior service cost	2	2
Actuarial loss	11	9
Net periodic defined benefit costs (credits)	$ 9	$ 8
Regulatory Asset Amortization Period	15 years	15 years
Deferred recovery of the difference between pension costs calculated with pension accounting policy and pension cost using 15 year amortization period	$ 3
LG And E And KU Energy LLC [Member] | Other Postretirement Benefits Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	1	$ 1
Interest cost	2	2
Expected return on plan assets	(2)	(2)
Amortization of: [Abstract]
Net periodic defined benefit costs (credits)	1	1
Louisville Gas And Electric Co [Member] | LKE [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors	3	3
Kentucky Utilities Co [Member] | LKE [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors	$ 1	$ 1

XML

Commitments and Contingencies - Legal Matters and Regulatory Issues (Details) $ in Millions	1 Months Ended
	Jun. 30, 2017 mi	Jul. 31, 2014 claim	Dec. 31, 2013 resident	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 01, 2015
Claim By Former Affiliate [Abstract]
Percent of ownership of Talen Energy by Riverstone						35.00%
PPL Electric [Member] | PPL Electric Additional Sites [Member]
Claim By Former Affiliate [Abstract]
Accrual for Environmental Loss Contingencies | $				$ 10	$ 10
LGE [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit | resident			6
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | claim		1
LGE [Member] | Minimum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	1
LGE [Member] | Maximum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	3
PPL Electric Utilities Corp [Member] | PPL Electric Additional Sites [Member]
Claim By Former Affiliate [Abstract]
Accrual for Environmental Loss Contingencies | $				$ 10	$ 10
LG And E And KU Energy LLC [Member] | LGE [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit | resident			6
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | claim		1
LG And E And KU Energy LLC [Member] | LGE [Member] | Minimum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	1
LG And E And KU Energy LLC [Member] | LGE [Member] | Maximum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	3
Louisville Gas And Electric Co [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit | resident			6
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | claim		1
Louisville Gas And Electric Co [Member] | Minimum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	1
Louisville Gas And Electric Co [Member] | Maximum [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of miles within plant that would include a class of residents	3

XML

Commitments and Contingencies - Environmental Matters and Other (Details) - PPL Electric Additional Sites [Member] - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
PPL Electric [Member]
Environmental Matters - Superfund and Other Remediation (Numeric) [Abstract]
Accrual for Environmental Loss Contingencies	$ 10	$ 10
PPL Electric Utilities Corp [Member]
Environmental Matters - Superfund and Other Remediation (Numeric) [Abstract]
Accrual for Environmental Loss Contingencies	$ 10	$ 10

XML

Commitments and Contingencies - Guarantees and Other Assurances (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) Integer	Dec. 31, 2020 USD ($)
Guarantor Obligations [Line Items]
Recorded liability for all guarantees	$ 4	$ 5
Other Guarantee (Numeric) [Abstract]
Maximum aggregate coverage bodily injury and property damage	225
PPL Guarantee [Member] | Indemnification Guarantee [Member] | WPD Indemnifications For Entities In Liquidation and Sales Of Assets [Member]
Guarantor Obligations [Line Items]
Maximum exposure	$ 11
PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Entities In Liquidation Sales Of Assets
Guarantor Obligations [Line Items]
Minimum Period In Years That Indemnifications Generally Expire | Integer	2
Maximum Period In Years That Indemnifications Generally Expire | Integer	7
PPL Guarantee [Member] | Financial Guarantee [Member] | WPD Guarantee Of Pension And Other Obligations Of Unconsolidated Entities [Member]
Guarantor Obligations [Line Items]
Maximum exposure	$ 96
LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member]
Guarantor Obligations [Line Items]
Maximum exposure	$ 200
Term of guarantee (in years)	12
Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues	$ 200
LKE Guarantee [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable.
Contingent proportionate share of OVEC's outstanding debt	$ 103
LG And E And KU Energy LLC [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member]
Guarantor Obligations [Line Items]
Maximum exposure	$ 200
Term of guarantee (in years)	12
Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues	$ 200
LG And E And KU Energy LLC [Member] | LGE And KU Guarantee [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable
Contingent proportionate share of OVEC's outstanding debt	$ 103
Louisville Gas And Electric Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable
Contingent proportionate share of OVEC's outstanding debt	$ 71
Kentucky Utilities Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]
Guarantor Obligations [Line Items]
Maximum exposure is not estimable	The maximum exposure and the expiration date of these potential obligations are not presently determinable
Contingent proportionate share of OVEC's outstanding debt	$ 32

XML

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
PPL Electric Utilities Corp [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 10	$ 10
Intercompany Borrowings (Numeric) [Abstract]
VEBA Funds Receivable	20		$ 22
PPL Electric Utilities Corp [Member] | PPL EU Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	50	41
PPL Electric Utilities Corp [Member] | PPL Energy Funding [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany note with affiliate maximum borrowing capacity	650
Notes receivable from affiliate	0		0
PPL Electric Utilities Corp [Member] | Accounts receivable from affiliates [Member] | PPL Services [Member]
Intercompany Borrowings (Numeric) [Abstract]
VEBA Funds Receivable	10		10
PPL Electric Utilities Corp [Member] | Other Noncurrent Assets [Member] | PPL Services [Member]
Intercompany Borrowings (Numeric) [Abstract]
VEBA Funds Receivable	10		12
LG And E And KU Energy LLC [Member]
Intercompany Borrowings (Numeric) [Abstract]
Long-term debt to affiliate	1,200		1,200
Interest Expense with Affiliate	13	7
Notes payable with affiliates	227		251
LG And E And KU Energy LLC [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	6	6
LG And E And KU Energy LLC [Member] | PPL Energy Funding [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany note with affiliate maximum borrowing capacity	375
Notes payable with affiliates	$ 227		$ 251
Related Party Transaction, Rate	162.00%		1.65%
LG And E And KU Energy LLC [Member] | PPL Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany note with affiliate maximum borrowing capacity	$ 300
Notes receivable from affiliate	$ 0		$ 0
LG And E And KU Energy LLC [Member] | Note Payable [Member] | Affiliated Entity [Member]
Intercompany Borrowings (Numeric) [Abstract]
Debt instrument term (in years)	10 years
Long-term debt to affiliate	$ 1,200
Interest Expense with Affiliate	$ 12	7
Related Party Transaction, Rate	389.00%		389.00%
LG And E And KU Energy LLC [Member] | Note Payable [Member] | Affiliated Entity [Member]
Intercompany Borrowings (Numeric) [Abstract]
Debt instrument term (in years)	10 years
Louisville Gas And Electric Co [Member] | Parent And Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany Money Pool Agreement Maximum Borrowing Capacity	$ 325
Notes payable with affiliates	0		$ 0
Louisville Gas And Electric Co [Member] | LKS [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	42	38
Kentucky Utilities Co [Member] | Parent And Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany Money Pool Agreement Maximum Borrowing Capacity	300
Notes payable with affiliates	0		$ 0
Kentucky Utilities Co [Member] | LKS [Member]
Support Costs (Details) [Abstract]
Related Party Transaction, Amounts of Transaction	$ 44	$ 41

XML

Other Income (Expense) - net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Other Income
Defined benefit plans - non-service credits	$ 4	$ 1
AFUDC - equity component	4	3
Miscellaneous	0	1
Total Other Income	8	5
Other Expense
Charitable Contributions	1	1
Miscellaneous	7	9
Total Other Expense	8	10
Other Income (Expense) - net	0	(5)
PPL Electric Utilities Corp [Member]
Other Expense
Other Income (Expense) - net	$ 5	$ 3

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Table (Details) - Recurring Fair Value Measurements [Member] - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 421	$ 442
Restricted cash and cash equivalents	1	1
Special Use Funds [Abstract]
Commingled debt fund measured at NAV	25	26
Commingled equity fund measured at NAV	24	25
Total special use funds	49	51
Price risk management assets:
Total Assets	471	494
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
Level 1 [Member]
Assets
Cash and cash equivalents	421	442
Restricted cash and cash equivalents	1	1
Special Use Funds [Abstract]
Total special use funds	0	0
Price risk management assets:
Total Assets	422	443
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Special Use Funds [Abstract]
Total special use funds	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Restricted cash and cash equivalents	0	0
Special Use Funds [Abstract]
Total special use funds	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
PPL Electric Utilities Corp [Member]
Assets
Cash and cash equivalents	29	40
Price risk management assets:
Total Assets	29	40
PPL Electric Utilities Corp [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	29	40
Price risk management assets:
Total Assets	29	40
PPL Electric Utilities Corp [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
PPL Electric Utilities Corp [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
LG And E And KU Energy LLC [Member]
Assets
Cash and cash equivalents	16	29
Price risk management assets:
Total Assets	16	29
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
LG And E And KU Energy LLC [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	16	29
Price risk management assets:
Total Assets	16	29
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
LG And E And KU Energy LLC [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
LG And E And KU Energy LLC [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Louisville Gas And Electric Co [Member]
Assets
Cash and cash equivalents	7	7
Price risk management assets:
Total Assets	7	7
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
Louisville Gas And Electric Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	7	7
Price risk management assets:
Total Assets	7	7
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Louisville Gas And Electric Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	17	23
Total price risk management liabilities	17	23
Louisville Gas And Electric Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Price risk management liabilities:
Interest rate swaps	0	0
Total price risk management liabilities	0	0
Kentucky Utilities Co [Member]
Assets
Cash and cash equivalents	8	22
Price risk management assets:
Total Assets	8	22
Kentucky Utilities Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents	8	22
Price risk management assets:
Total Assets	8	22
Kentucky Utilities Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	0	0
Kentucky Utilities Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents	0	0
Price risk management assets:
Total Assets	$ 0	$ 0

XML

Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	$ 14,691	$ 14,689
Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	16,607	17,774
PPL Electric Utilities Corp [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	4,237	4,236
PPL Electric Utilities Corp [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	4,881	5,338
LG And E And KU Energy LLC [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	6,075	6,074
LG And E And KU Energy LLC [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	7,051	7,589
Louisville Gas And Electric Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	2,007	2,007
Louisville Gas And Electric Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	2,321	2,499
Kentucky Utilities Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	2,618	2,618
Kentucky Utilities Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Debt Instrument, Fair Value Disclosure	$ 3,042	$ 3,334

XML

Derivative Instruments and Hedging Activities - Intro (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Master Netting Arrangements (Numeric) [Line Items]
Cash colleteral posted under master netting arrangements	$ 22	$ 0
LG And E And KU Energy LLC [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	0	0
Cash colleteral posted under master netting arrangements	0	0
Louisville Gas And Electric Co [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	0	0
Cash colleteral posted under master netting arrangements	0	0
Kentucky Utilities Co [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral obligation under master netting arrangements	0	0
Cash colleteral posted under master netting arrangements	$ 0	$ 0

XML

Derivative Instruments and Hedging Activities - Risk Disclosures (Details) £ in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2021 GBP (£)
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	$ 0	$ 0
Cash Flow Hedges [Member] | Cross Currency Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	202
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Derivative Notional Amount Matured	500
Principal amount	500
Net Investment Hedges [Member] | Foreign Currency Contracts [Member]
Foreign Currency Risk - Net Investment Hedges (Numeric) [Abstract]
Net after tax gains (losses) on net investment hedges recognized in the foreign currency translation adjustment component of AOCI	33		$ 33
Economic Hedges [Member] | Foreign Currency Contracts [Member]
Foreign Currency Risk - Economic Activity (Numeric) [Abstract]
Total exposure hedged related to foreign currency contracts for anticipated earnings hedges classified as economic activity | £				£ 7,500
LGE [Member] | Economic Hedges [Member] | Interest Rate Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	64
LG And E And KU Energy LLC [Member] | LGE [Member] | Economic Hedges [Member] | Interest Rate Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	64
Louisville Gas And Electric Co [Member] | Economic Hedges [Member] | Interest Rate Swaps [Member]
Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]
Derivative, Notional Amount	$ 64

XML

Derivative Instruments and Hedging Activities - Fair Values (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	$ 39	$ 146
Liability value	17	0
Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	2	94
Designated As Hedging Instruments [Member] | Other current liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	0
Designated As Hedging Instruments [Member] | Current assets held for sale [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	2	94
Designated As Hedging Instruments [Member] | Current assets held for sale [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	37	52
Designated As Hedging Instruments [Member] | Price risk management assets, noncurrent [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Designated As Hedging Instruments [Member] | Other deferred credits and noncurrent liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	16	0
Designated As Hedging Instruments [Member] | Current liabilities held for sale [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	0
Designated As Hedging Instruments [Member] | Current liabilities held for sale [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	0
Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	0
Designated As Hedging Instruments [Member] | Price risk management assets, current [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	16	0
Designated As Hedging Instruments [Member] | Current assets held for sale via noncurrent assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	37	52
Designated As Hedging Instruments [Member] | Current liabilities held for sale via noncurrent liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	0
Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	23	0
Liability value	180	160
Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	23	0
Not Designated As Hedging Instruments [Member] | Other current liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	2
Not Designated As Hedging Instruments [Member] | Current assets held for sale [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Not Designated As Hedging Instruments [Member] | Current assets held for sale [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	23	0
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Not Designated As Hedging Instruments [Member] | Price risk management assets, noncurrent [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Not Designated As Hedging Instruments [Member] | Other deferred credits and noncurrent liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	21
Not Designated As Hedging Instruments [Member] | Current liabilities held for sale [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	0
Not Designated As Hedging Instruments [Member] | Current liabilities held for sale [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	180	137
Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	180	139
Not Designated As Hedging Instruments [Member] | Price risk management assets, current [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	21
Not Designated As Hedging Instruments [Member] | Current assets held for sale via noncurrent assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Not Designated As Hedging Instruments [Member] | Current liabilities held for sale via noncurrent liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Liability value	17	23
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	2
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	2
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	16	21
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	16	21
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Liability value	17	23
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	2
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	1	2
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	16	21
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	$ 16	$ 21

XML

Derivative Instruments and Hedging Activities - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	$ 153	$ 154
Other Income (Expense) - net	0	(5)
Cash Flow Hedges [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (Loss) Reclassified from AOCI into Income	(39)	3
Cash Flow Hedges [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative Gain (Loss) Recognized in OCI	(46)	10
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative Gain (Loss) Recognized in OCI	0	(5)
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (Loss) Reclassified from AOCI into Income	(1)	(2)
Amount of gain (loss) reclassified from AOCI to income	(1)	(2)
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Income (Loss) from Discontinued Operations (net of income taxes)
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (Loss) Reclassified from AOCI into Income	(1)	(1)
Amount of gain (loss) reclassified from AOCI to income	(1)	(1)
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative Gain (Loss) Recognized in OCI	(46)	15
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Amount of gain (loss) reclassified from AOCI to income		0
Hedged items	0	0
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Income (Loss) from Discontinued Operations (net of income taxes)
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (Loss) Reclassified from AOCI into Income	(37)	6
Amount of gain (loss) reclassified from AOCI to income	(37)	6
Hedged items	37	(6)
Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(26)	61
Asset value	23		$ 0
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	6	(8)
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(1)	(1)
Not Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Income (Loss) from Discontinued Operations (net of income taxes)
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(25)	62
Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	39		146
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	37		52
LG And E And KU Energy LLC [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	51	58
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	6	(8)
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(1)	(1)
Louisville Gas And Electric Co [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	21	22
Other Income (Expense) - net	(2)	(1)
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Noncurrent Assets [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Asset value	0		$ 0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	6	(8)
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(1)	(1)
Kentucky Utilities Co [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense	27	28
Other Income (Expense) - net	$ 1	$ 1

XML

Derivative Instruments and Hedging Activities - Offsetting Derivative Instruments and Credit Risk-Related Features (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Liabilities [Abstract]
Cash collateral pledged - eligible for offset	$ 22	$ 0
Credit Risk-Related Contingent Features [Abstract]
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	161
Aggregate fair value of collateral posted on these derivative instruments	22
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade	139
Treasury Derivatives [Member]
Assets [Abstract]
Gross	62	146
Derivative instruments - eligible for offset	18	34
Cash collateral received - eligible for offset	0	0
Net	44	112
Liabilities [Abstract]
Gross	197	160
Derivative instruments - eligible for offset	18	34
Cash collateral pledged - eligible for offset	22	0
Net	157	126
LG And E And KU Energy LLC [Member]
Assets [Abstract]
Cash collateral received - eligible for offset	0	0
Liabilities [Abstract]
Cash collateral pledged - eligible for offset	0	0
LG And E And KU Energy LLC [Member] | Treasury Derivatives [Member]
Assets [Abstract]
Gross	0	0
Derivative instruments - eligible for offset	0	0
Cash collateral received - eligible for offset	0	0
Net	0	0
Liabilities [Abstract]
Gross	17	23
Derivative instruments - eligible for offset	0	0
Cash collateral pledged - eligible for offset	0	0
Net	17	23
Louisville Gas And Electric Co [Member]
Assets [Abstract]
Cash collateral received - eligible for offset	0	0
Liabilities [Abstract]
Cash collateral pledged - eligible for offset	0	0
Louisville Gas And Electric Co [Member] | Treasury Derivatives [Member]
Assets [Abstract]
Gross	0	0
Derivative instruments - eligible for offset	0	0
Cash collateral received - eligible for offset	0	0
Net	0	0
Liabilities [Abstract]
Gross	17	23
Derivative instruments - eligible for offset	0	0
Cash collateral pledged - eligible for offset	0	0
Net	$ 17	$ 23

XML

Asset Retirement Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	$ 182
Accretion	4
Obligations settled	(15)
Balance at End of Period	171
LG And E And KU Energy LLC [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	182
Accretion	4
Obligations settled	(15)
Balance at End of Period	171
Louisville Gas And Electric Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	67
Accretion	1
Obligations settled	(6)
Balance at End of Period	62
Kentucky Utilities Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	115
Accretion	3
Obligations settled	(9)
Balance at End of Period	$ 109

XML

Accumulated Other Comprehensive Income (Loss) - After-tax Changes by Component (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (4,220)	$ (4,358)
Amounts arising during the period	273	(53)
Reclassifications from AOCI	65	45
Net OCI during the period	338	(8)
Balance at end of period	(3,882)	(4,366)
Foreign currency translation adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(1,158)	(1,425)
Amounts arising during the period	303	(61)
Reclassifications from AOCI	0	0
Net OCI during the period	303	(61)
Balance at end of period	(855)	(1,486)
Unrealized gains (losses) on qualifying derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	(5)
Amounts arising during the period	(30)	8
Reclassifications from AOCI	25	(3)
Net OCI during the period	(5)	5
Balance at end of period	(5)	0
Defined benefit plans Prior service costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(16)	(18)
Amounts arising during the period	0	0
Reclassifications from AOCI	0	1
Net OCI during the period	0	1
Balance at end of period	(16)	(17)
Defined benefit plans Actuarial gain (loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(3,046)	(2,910)
Amounts arising during the period	0	0
Reclassifications from AOCI	40	47
Net OCI during the period	40	47
Balance at end of period	(3,006)	(2,863)
Accumulated Defined Benefit Plans Net | WPD
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at end of period	2,800
LG And E And KU Energy LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net OCI during the period	$ 3	$ 1

XML

Accumulated Other Comprehensive Income (Loss) - Income (Expense) Effect of Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	$ (153)	$ (154)
Other Income (Expense) - net	0	(5)
Income Taxes	(59)	(61)
Income (Loss) from Discontinued Operations (net of income taxes)	(2,043)	350
Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total After-tax	(65)	(45)
Qualifying Derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	(39)	3
Income Taxes	14	0
Total After-tax	(25)	3
Qualifying Derivatives [Member] | Interest Rate Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	(1)	(2)
Income (Loss) from Discontinued Operations (net of income taxes)	(1)	(1)
Qualifying Derivatives [Member] | Cross Currency Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Income (Loss) from Discontinued Operations (net of income taxes)	(37)	6
Defined Benefit Plans [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	(62)	(60)
Income Taxes	22	12
Total After-tax	(40)	(48)
Defined Benefit Plans [Member] | Prior Service Costs [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	0	(1)
Defined Benefit Plans [Member] | Net Actuarial Loss [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	$ (62)	$ (59)