Utility Rate Regulation (Tables)

9 Months Ended

Sep. 30, 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
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	60	$	21	$	—	$	—
Rate adjustment mechanisms	96		—		—		—
Smart meter rider	5		11		5		11
Universal service rider	8		—		8		—
Fuel adjustment clause	46		11		—		—
Other	19		21		—		11
Total current regulatory assets	$	234	$	64	$	13	$	22
Noncurrent Regulatory Assets:
Defined benefit plans	$	670	$	523	$	252	$	256
Plant outage costs	48		54		—		—
Net metering	52		—		—		—
Environmental cost recovery	104		—		—		—
Taxes recoverable through future rates	48		—		—		—
Storm costs	127		11		—		—
Unamortized loss on debt	24		24		3		4
Interest rate swaps	7		18		—		—
Terminated interest rate swaps	66		70		—		—
Accumulated cost of removal of utility plant	216		228		216		228
AROs	309		302		—		—
Other	44		6		—		—
Total noncurrent regulatory assets	$	1,715	$	1,236	$	471	$	488

	PPL				PPL Electric
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Current Regulatory Liabilities:
Generation supply charge	$	19	$	10	$	19	$	10
Transmission service charge	10		21		10		21
Universal service rider	—		17		—		17
TCJA customer refund	25		22		25		22
Act 129 compliance rider	18		10		18		10
Transmission formula rate return on equity (a)	—		73		—		73
Economic relief billing credit	—		27		—		—
Transmission formula rate	11		—		11		—
Derivative instruments	71		—		—		—
Rate adjustment mechanism	77		—		—		—
Energy efficiency	23		—		—		—
RIE bill credit (b)	50		—		—		—
Other	25		2		4		—
Total current regulatory liabilities	$	329	$	182	$	87	$	153
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	925	$	639	$	—	$	—
Power purchase agreement - OVEC	29		35		—		—
Net deferred taxes	2,112		1,591		783		531
Defined benefit plans	148		95		40		28
Terminated interest rate swaps	60		62		—		—
Energy efficiency	46		—		—		—
Other	61		—		—		—
Total noncurrent regulatory liabilities	$	3,381	$	2,422	$	823	$	559

	LG&E				KU
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Current Regulatory Assets:
Gas supply clause	$	32	$	21	$	—	$	—
Gas line tracker	—		3		—		—
Generation formula rate	—		—		—		2
Fuel adjustment clause	16		4		30		7
Other	1		5		3		—
Total current regulatory assets	$	49	$	33	$	33	$	9
Noncurrent Regulatory Assets:
Defined benefit plans	$	203	$	164	$	135	$	103
Storm costs	7		8		3		3
Unamortized loss on debt	11		12		8		8
Interest rate swaps	7		18		—		—
Terminated interest rate swaps	38		41		27		29
AROs	76		75		221		227
Plant outage costs	13		15		35		39
Other	10		4		11		2
Total noncurrent regulatory assets	$	365	$	337	$	440	$	411

	LG&E				KU
	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Current Regulatory Liabilities:
Economic relief billing credit	$	—	$	21	$	—	$	6
Other	4		—		6		2
Total current regulatory liabilities	$	4	$	21	$	6	$	8
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	273	$	262	$	384	$	377
Power purchase agreement - OVEC	20		24		9		11
Net deferred taxes	480		491		552		569
Defined benefit plans	11		10		60		57
Terminated interest rate swaps	30		31		30		31
Total noncurrent regulatory liabilities	$	814	$	818	$	1,035	$	1,045

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

(b)As a condition of the acquisition, RIE will provide a credit to all its electric and natural gas distribution customers in the total amount of $50 million. The credits are expected to be issued during the fourth quarter of 2022. See Note 8 for additional information.