XML 51 R33.htm IDEA: XBRL DOCUMENT v3.22.2.2
Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2022
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income tax expense (benefit) for the periods ended September 30 are as follows.
(PPL)
Three MonthsNine Months
2022202120222021
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 21%$45 $55 $150 $70 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit8 17 56 12 
Valuation allowance adjustments (a)(1)5 9 39 
Impact of the U.K. Finance Acts on deferred tax balances (b)— — — 383 
Amortization of investment tax credit including deferred taxes on basis adjustment— (1)(7)(2)
Depreciation and other items not normalized— — (8)(4)
Amortization of excess deferred federal and state income taxes (7)(18)(47)(38)
Federal and state income tax return adjustments— (4)(1)(4)
State income tax rate change (c)(5)— (5)— 
Other1 (3)— (1)
Total increase (decrease)(4)(4)(3)385 
Total income tax expense (benefit)$41 $51 $147 $455 

(a)In 2021, PPL recorded a $31 million state deferred tax benefit on a net operating loss and an offsetting valuation allowance in connection with the loss on extinguishment associated with a tender offer to purchase and retire PPL Capital Funding's outstanding Senior Notes.
(b)The U.K. Finance Act 2021, formally enacted on June 10, 2021, increased the U.K. corporation tax rate from 19% to 25%, effective April 1, 2023. The primary impact of the corporation tax rate increase was an increase in deferred tax liabilities of the U.K. utility business, which was sold on June 14, 2021, and a corresponding deferred tax expense of $383 million, which was recognized in continuing operations in the second quarter of 2021.
(c)    On July 8, 2022, the Governor of Pennsylvania signed into law Pennsylvania House Bill 1342 (H.B. 1342). Among other changes to the state tax code, the bill will reduce the corporate net income tax rate from 9.99% to 8.99% beginning January 1, 2023, and further reduces the rate annually by half a percentage point until the rate reaches 4.99% in 2031. The income statement impact of the corporate net income tax reduction was a deferred tax benefit of $5 million.
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 September 30 are as follows.
(PPL Electric)  
Three MonthsNine Months
2022202120222021
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$38 $36 $114 $95 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit14 13 43 36 
Depreciation and other items not normalized(1)— (7)(4)
Amortization of excess deferred federal and state income taxes(4)(5)(9)(11)
State income tax rate change (a)(9)— (9)— 
Other(1)1 (1)— 
Total increase (decrease)(1)9 17 21 
Total income tax expense (benefit) $37 $45 $131 $116 
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 September 30 are as follows.
(LG&E)  
 Three MonthsNine Months
 2022202120222021
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$21 $21 $57 $53 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit4 4 11 10 
Amortization of excess deferred federal and state income taxes(3)(7)(17)(13)
Other(1)(1)(2)(2)
Total increase (decrease)— (4)(8)(5)
Total income tax expense (benefit)$21 $17 $49 $48 
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 September 30 are as follows.
(KU)  
 Three MonthsNine Months
 2022202120222021
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%$25 $26 $70 $63 
Increase (decrease) due to:    
State income taxes, net of federal income tax benefit5 5 13 12 
Amortization of excess deferred federal and state income taxes(4)(6)(16)(14)
Other(2)(2)(4)(4)
Total increase (decrease)(1)(3)(7)(6)
Total income tax expense (benefit)$24 $23 $63 $57