Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

(PPL and PPL Electric)

PPL Electric has identified legal retirement obligations for the retirement of certain transmission assets that could not be reasonably estimated due to indeterminable settlement dates. These assets are located on rights-of-way that allow the grantor to require PPL Electric to relocate or remove the assets. Since this option is at the discretion of the grantor of the right-of-way, PPL Electric is unable to determine when these events may occur.

(PPL, LG&E and KU)

PPL's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 13 for information on the CCR rule. LG&E and RIE also have AROs related to natural gas mains and wells. LG&E's and KU's transmission and distribution lines largely operate under perpetual property easement agreements, which do not generally require restoration upon removal of the property. Therefore, no material AROs are recorded for transmission and distribution assets. For LG&E, KU, and RIE , all ARO accretion and depreciation expenses are reclassified as a regulatory asset or regulatory liability. ARO regulatory assets associated with certain CCR projects are amortized to expense in accordance with regulatory approvals. For other AROs, deferred accretion and depreciation expense is recovered through cost of removal.

The changes in the carrying amounts of AROs were as follows:

	PPL				LG&E				KU
	2023		2022		2023		2022		2023		2022
ARO at beginning of period	$	177	$	189	$	86	$	84	$	82	$	105
Acquisition of RIE	—		10		—		—		—		—
Accretion	9		6		4		3		5		3
Obligations incurred	2		2		1		2		1		—
Changes in estimated timing or cost	15		15		11		12		6		4
Obligations settled	(39)		(45)		(11)		(15)		(28)		(30)
Other	(6)		—		(6)		—		—		—
ARO at end of period	$	158	$	177	$	85	$	86	$	66	$	82