Utility Rate Regulation (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	22	$	21	$	—	$	—
Smart meter rider	7		11		7		11
Fuel adjustment clause	15		11		—		—
Other	14		21		6		11
Total current regulatory assets (a)	$	58	$	64	$	13	$	22
Noncurrent Regulatory Assets:
Defined benefit plans	$	509	$	523	$	248	$	256
Plant outage costs	51		54		—		—
Storm costs	12		11		—		—
Unamortized loss on debt	23		24		3		4
Interest rate swaps	14		18		—		—
Terminated interest rate swaps	68		70		—		—
Accumulated cost of removal of utility plant	224		228		224		228
AROs	302		302		—		—
Other	16		6		—		—
Total noncurrent regulatory assets	$	1,219	$	1,236	$	475	$	488

	PPL				PPL Electric
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Current Regulatory Liabilities:
Generation supply charge	$	9	$	10	$	9	$	10
Transmission service charge	23		21		23		21
Universal service rider	4		17		4		17
TCJA customer refund	19		22		19		22
Act 129 compliance rider	15		10		15		10
Transmission formula rate return on equity (b)	30		73		30		73
Economic relief billing credit	13		27		—		—
Other	9		2		1		—
Total current regulatory liabilities	$	122	$	182	$	101	$	153
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	647	$	639	$	—	$	—
Power purchase agreement - OVEC	33		35		—		—
Net deferred taxes	1,574		1,591		523		531
Defined benefit plans	101		95		32		28
Terminated interest rate swaps	62		62		—		—
Total noncurrent regulatory liabilities	$	2,417	$	2,422	$	555	$	559

	LG&E				KU
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	22	$	21	$	—	$	—
Gas line tracker	—		3		—		—
Generation formula rate	—		—		1		2
Fuel adjustment clause	4		4		11		7
Other	5		5		2		—
Total current regulatory assets	$	31	$	33	$	14	$	9
Noncurrent Regulatory Assets:
Defined benefit plans	$	160	$	164	$	101	$	103
Storm costs	8		8		4		3
Unamortized loss on debt	12		12		8		8
Interest rate swaps	14		18		—		—
Terminated interest rate swaps	40		41		28		29
AROs	75		75		227		227
Plant outage costs	14		15		37		39
Other	6		4		10		2
Total noncurrent regulatory assets	$	329	$	337	$	415	$	411

	LG&E				KU
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Current Regulatory Liabilities:
Demand side management	$	—	$	—	$	3	$	—
Gas line tracker	3		—		—		—
Economic relief billing credit	10		21		3		6
Other	1		—		1		2
Total current regulatory liabilities	$	14	$	21	$	7	$	8
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	268	$	262	$	379	$	377
Power purchase agreement - OVEC	23		24		10		11
Net deferred taxes	487		491		564		569
Defined benefit plans	11		10		58		57
Terminated interest rate swaps	31		31		31		31
Total noncurrent regulatory liabilities	$	820	$	818	$	1,042	$	1,045

(a)For PPL, these amounts are included in "Other current assets" on the Balance Sheets.

(b)See “Regulatory Matters - Federal Matters - PPL Electric Transmission Formula Rate Return on Equity” below for additional information.