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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer
(All Registrants)

The following is a description of the principal activities from which the Registrants and PPL’s segments generate their revenues.

(PPL and PPL Electric)

Pennsylvania Regulated Segment Revenue

The Pennsylvania Regulated Segment generates substantially all of its revenues from contracts with customers from PPL Electric’s tariff-based distribution and transmission of electricity.

Distribution Revenue

PPL Electric provides distribution services to residential, commercial, industrial, municipal and governmental end users of energy. PPL Electric satisfies its performance obligation to its distribution customers and revenue is recognized over-time as electricity is delivered and simultaneously consumed by the customer. The amount of revenue recognized is the volume of electricity delivered during the period multiplied by the price per tariff, plus a monthly fixed charge. This method of recognition fairly presents PPL Electric's transfer of electric service to the customer as the calculation is based on actual volumes, and the price per tariff and the monthly fixed charge are set by the PUC. Customers are typically billed monthly and outstanding amounts are normally due within 21 days of the date of the bill.

Distribution customers are "at will" customers of PPL Electric with no term contract and no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with PPL Electric’s retail account contracts.
Transmission Revenue

PPL Electric generates transmission revenues from a FERC-approved PJM Open Access Transmission Tariff. An annual revenue requirement for PPL Electric to provide transmission services is calculated using a formula-based rate. This revenue requirement is converted into a daily rate (dollars per day). PPL Electric satisfies its performance obligation to provide transmission services and revenue is recognized over-time as transmission services are provided and consumed. This method of recognition fairly presents PPL Electric's transfer of transmission services as the daily rate is set by a FERC approved formula-based rate. PJM remits payment on a weekly basis.

PPL Electric's agreement to provide transmission services contains no minimum purchase commitment. The performance obligation is limited to the service requested and received to date. Accordingly, PPL Electric has no unsatisfied performance obligations.

(PPL, LG&E and KU)

Kentucky Regulated Segment Revenue

The Kentucky Regulated Segment generates substantially all of its revenues from contracts with customers from LG&E's and KU's regulated tariff-based sales of electricity and LG&E's regulated tariff-based sales of natural gas.

LG&E and KU are engaged in the generation, transmission, distribution and sale of electricity in Kentucky and, in KU's case, Virginia. LG&E also engages in the distribution and sale of natural gas in Kentucky. Revenue from these activities is generated from tariffs approved by applicable regulatory authorities including the FERC, KPSC and VSCC. LG&E and KU satisfy their performance obligations upon LG&E's and KU's delivery of electricity and LG&E's delivery of natural gas to customers. This revenue is recognized over-time as the customer simultaneously receives and consumes the benefits provided by LG&E and KU. The amount of revenue recognized is the billed volume of electricity or natural gas delivered multiplied by a tariff rate per-unit of energy, plus any applicable fixed charges or additional regulatory mechanisms. Customers are billed monthly and outstanding amounts are typically due within 22 days of the date of the bill. Additionally, unbilled revenues are recognized as a result of customers' bills rendered throughout the month, rather than bills being rendered at the end of the month. Unbilled revenues for a month are calculated by multiplying an estimate of unbilled kWh or Mcf delivered but not yet billed by the estimated average cents per kWh or Mcf. Any difference between estimated and actual revenues is adjusted the following month when the previous unbilled estimate is reversed and actual billings occur. This method of recognition fairly presents LG&E's and KU's transfer of electricity and LG&E's transfer of natural gas to the customer as the amount recognized is based on actual and estimated volumes delivered and the tariff rate per-unit of energy and any applicable fixed charges or regulatory mechanisms as set by the respective regulatory body.

LG&E's and KU's customers generally have no minimum purchase commitment. Performance obligations are limited to the service requested and received to date. Accordingly, there is no unsatisfied performance obligation associated with these customers.

(All Registrants)

The following table reconciles "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the years ended December 31:
2021
PPLPPL ElectricLG&EKU
Operating Revenues (a)$5,783 $2,402 $1,569 $1,826 
Revenues derived from:
Alternative revenue programs (b)77 83 (3)(3)
Other (c)(22)(3)(8)(9)
Revenues from Contracts with Customers$5,838 $2,482 $1,558 $1,814 
2020
PPLPPL ElectricLG&EKU
Operating Revenues (a)$5,474 $2,331 $1,456 $1,690 
Revenues derived from:
Alternative revenue programs (b)(24)(12)(8)(4)
Other (c)(21)(3)(7)(10)
Revenues from Contracts with Customers$5,429 $2,316 $1,441 $1,676 
2019
PPLPPL ElectricLG&EKU
Operating Revenues (a)$5,602 $2,358 $1,500 $1,740 
Revenues derived from:
Alternative revenue programs (b)(30)(6)(10)(14)
Other (c)(31)(10)(9)(12)
Revenues from Contracts with Customers$5,541 $2,342 $1,481 $1,714 

(a)Amounts for PPL Electric represent revenues from external customers reported by the Pennsylvania Regulated segment and amounts for LG&E and KU, net of intercompany power sales and transmission revenues, represent revenues from external customers reported by the Kentucky Regulated segment. See Note 2 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 and GSC programs for LG&E, and the generation formula rate for KU. For PPL Electric, revenue in 2021 was reduced by $78 million for a reduction in the transmission formula rate return on equity. See Note 7 for additional 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 leases and other miscellaneous revenues.

The following table shows revenues from contracts with customers disaggregated by customer class for the years ended December 31:
2021
ResidentialCommercialIndustrialOther (a)Wholesale - municipalityWholesale - other (b)TransmissionRevenues from Contracts with Customers
PPL
PA Regulated$1,299 $350 $53 $50 $— $— $730 $2,482 
KY Regulated1,416 928 586 305 24 66 — 3,325 
Corp and Other— — — 31 — — — 31 
Total PPL$2,715 $1,278 $639 $386 $24 $66 $730 $5,838 
PPL Electric$1,299 $350 $53 $50 $— $— $730 $2,482 
LG&E$711 $473 $180 $145 $— $49 $— $1,558 
KU$705 $455 $406 $160 $24 $64 $— $1,814 
2020
ResidentialCommercialIndustrialOther (a)Wholesale - municipalityWholesale - other (b)TransmissionRevenues from Contracts with Customers
PPL
PA Regulated$1,238 $314 $44 $50 $— $— $670 $2,316 
KY Regulated1,347 871 538 261 20 40 — 3,077 
Corp and Other— — — 36 — — — 36 
Total PPL$2,585 $1,185 $582 $347 $20 $40 $670 $5,429 
PPL Electric $1,238 $314 $44 $50 $— $— $670 $2,316 
LG&E$676 $444 $173 $114 $— $34 $— $1,441 
KU$671 $427 $365 $147 $20 $46 $— $1,676 

2019
ResidentialCommercialIndustrialOther (a)Wholesale - municipalityWholesale - other (b)TransmissionRevenues from Contracts with Customers
PPL
PA Regulated$1,288 $349 $59 $52 $— $— $594 $2,342 
KY Regulated1,322 908 562 277 43 49 — 3,161 
Corp and Other— — — 38 — — — 38 
Total PPL$2,610 $1,257 $621 $367 $43 $49 $594 $5,541 
PPL Electric $1,288 $349 $59 $52 $— $— $594 $2,342 
LG&E$668 $466 $180 $121 $— $46 $— $1,481 
KU$654 $442 $382 $156 $43 $37 $— $1,714 

(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 PPL.

As discussed in Note 2, 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. PPL Electric's revenues from contracts with customers are further disaggregated by distribution and transmission as indicated in the above tables.

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 year ended December 31:
202120202019
PPL$22 $25 $27 
PPL Electric10 17 21 
LG&E4 4 2 
KU8 4 4 
The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers:
PPLPPL ElectricLG&EKU
Contract liabilities as of December 31, 2021$42 $25 $6 $6 
Contract liabilities as of December 31, 202040 23 5 6 
Revenue recognized during the year ended December 31, 2021 that was included in the contract liability balance at December 31, 202024 11 5 6 
Contract liabilities as of December 31, 2020$40 $23 $5 $6 
Contract liabilities as of December 31, 201937 21 5 4 
Revenue recognized during the year ended December 31, 2020 that was included in the contract liability balance at December 31, 201922 9 5 4 
Contract liabilities as of December 31, 2019$37 $21 $5 $4 
Contract liabilities as of December 31, 201840 23 5 4 
Revenue recognized during the year ended December 31, 2019 that was included in the contract liability balance at December 31, 201825 11 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 December 31, 2021, PPL had $46 million of performance obligations attributable to Corporate and Other that have not been satisfied. Of this amount, PPL expects to recognize approximately $41 million within the next 12 months.