Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in the Registrants' 2022 Form 10-K for a discussion of the principal activities from which PPL Electric, LG&E and KU and PPL’s Pennsylvania Regulated, Rhode Island Regulated, and Kentucky Regulated 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 September 30.

	2023 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	2,043	$	737	$	398	$	505
Revenues derived from:
Alternative revenue programs (b)	1		(2)		—		—
Other (c)	(6)		(4)		(1)		(2)
Revenues from Contracts with Customers	$	2,038	$	731	$	397	$	503
	2022 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	2,134	$	766	$	436	$	553
Revenues derived from:
Alternative revenue programs (b)	51		3		3		1
Other (c)	(8)		(4)		(1)		(2)
Revenues from Contracts with Customers	$	2,177	$	765	$	438	$	552
	2023 Nine Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	6,281	$	2,295	$	1,227	$	1,439
Revenues derived from:
Alternative revenue programs (b)	42		5		1		(3)
Other (c)	(17)		(11)		(3)		(3)
Revenues from Contracts with Customers	$	6,306	$	2,289	$	1,225	$	1,433
	2022 Nine Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	5,612	$	2,217	$	1,339	$	1,569
Revenues derived from:
Alternative revenue programs (b)	(16)		(56)		12		5
Other (c)	(21)		(11)		(5)		(3)
Revenues from Contracts with Customers	$	5,575	$	2,150	$	1,346	$	1,571

(a)PPL includes $413 million and $1.4 billion for the three and nine months ended September 30, 2023 and $384 million and $512 million for the three and nine months ended September 30, 2022 of revenues from external customers reported by the Rhode Island Regulated segment. PPL Electric represents revenues from external customers reported by the Pennsylvania Regulated segment and 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)This line item shows the over/under collection of rate mechanisms deemed alternative revenue programs with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts. For PPL Electric, the nine months ended September 30, 2022, included $74 million related to the amortization of the regulatory liability recorded in 2021 for a reduction in the transmission formula rate return on equity that was reflected in rates in 2022.

(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 September 30.

	Three Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	389	$	113	$	13	$	14	$	—	$	—	$	202	$	731
KY Regulated	367		260		162		79		6		17		—		891
RI Regulated	110		32		4		223		—		—		47		416
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	866	$	405	$	179	$	316	$	6	$	17	$	249	$	2,038
2022
PA Regulated	$	407	$	135	$	22	$	13	$	—	$	—	$	188	$	765
KY Regulated	401		284		176		88		8		21		—		978
RI Regulated	100		34		3		251		—		—		39		427
Corp and Other	—		—		—		7		—		—		—		7
Total PPL	$	908	$	453	$	201	$	359	$	8	$	21	$	227	$	2,177
PPL Electric
2023	$	389	$	113	$	13	$	14	$	—	$	—	$	202	$	731
2022	$	407	$	135	$	22	$	13	$	—	$	—	$	188	$	765
LG&E
2023	$	182	$	127	$	49	$	33	$	—	$	6	$	—	$	397
2022	$	200	$	140	$	53	$	39	$	—	$	6	$	—	$	438
KU
2023	$	185	$	133	$	113	$	45	$	6	$	21	$	—	$	503
2022	$	201	$	144	$	123	$	51	$	8	$	25	$	—	$	552

	Nine Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2023
PA Regulated	$	1,266	$	346	$	44	$	40	$	—	$	—	$	593	$	2,289
KY Regulated	1,108		771		486		205		17		37		—		2,624
RI Regulated	480		182		17		586		—		—		128		1,393
Corp and Other	—		—		—		—		—		—		—		—
Total PPL	$	2,854	$	1,299	$	547	$	831	$	17	$	37	$	721	$	6,306
2022
PA Regulated	$	1,189	$	360	$	67	$	39	$	—	$	—	$	495	$	2,150
KY Regulated	1,218		805		497		264		22		66		—		2,872
RI Regulated	131		46		4		298		—		—		55		534
Corp and Other	—		—		—		19		—		—		—		19
Total PPL	$	2,538	$	1,211	$	568	$	620	$	22	$	66	$	550	$	5,575

	Nine Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL Electric
2023	$	1,266	$	346	$	44	$	40	$	—	$	—	$	593	$	2,289
2022	$	1,189	$	360	$	67	$	39	$	—	$	—	$	495	$	2,150
LG&E
2023	$	574	$	398	$	145	$	75	$	—	$	33	$	—	$	1,225
2022	$	615	$	410	$	147	$	125	$	—	$	49	$	—	$	1,346
KU
2023	$	534	$	373	$	341	$	130	$	17	$	38	$	—	$	1,433
2022	$	603	$	395	$	350	$	140	$	22	$	61	$	—	$	1,571

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. The Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes.

(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 the Kentucky Regulated segment.

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.

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

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended September 30.

	Three Months				Nine Months
	2023		2022		2023		2022
PPL	$	20	$	21	$	47	$	55
PPL Electric	10		7		27		12
LG&E	2		2		3		4
KU	1		3		2		5

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

	PPL		PPL Electric		LG&E		KU
Contract liabilities at December 31, 2022	$	34	$	23	$	5	$	6
Contract liabilities at September 30, 2023	33		21		5		6
Revenue recognized during the nine months ended September 30, 2023 that was included in the contract liability balance at December 31, 2022	21		10		5		6
Contract liabilities at December 31, 2021	$	42	$	25	$	6	$	6
Contract liabilities at September 30, 2022	35		18		6		6
Revenue recognized during the nine months ended September 30, 2022 that was included in the contract liability balance at December 31, 2021	25		12		6		6

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 generally recognized as revenue ratably over the quarterly billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.