Other Income (Expense) - net

9 Months Ended

Sep. 30, 2011

Notes To Financial Statements [Abstract]

Other Income (Expense) - net

12. Other Income (Expense) - net

(PPL,PPL Energy Supply, PPL Electric, LKE, LG&E and KU)

The breakdown of "Other Income (Expense) - net" for the periods ended September 30was:

		Three Months				Nine Months
		2011		2010		2011		2010
PPL
Other Income
	Earnings on securities in NDT funds	$	2	$	4	$	20	$	15
	Interest income		1		3		5		4
	AFUDC		2		1		5		3
	Net hedge gains associated with the 2011 Bridge Facility (a)						55
	Gain on redemption of debt (b)		22				22
	Miscellaneous - Domestic		3		1		10		5
	Miscellaneous - International						1		1
	Total Other Income		30		9		118		28
Other Expense
	Economic foreign currency exchange contracts		(11)		1		(11)		(1)
	Charitable contributions		2				7		2
	Cash flow hedges (c)				29				29
	LKE other acquisition-related costs				4				11
	WPD Midlands other acquisition-related costs						36
	Foreign currency loss on 2011 Bridge Facility (d)						57
	U.K. stamp duty tax						21
	Miscellaneous - Domestic		2		1		7		4
	Miscellaneous - International						3		1
	Total Other Expense		(7)		35		120		46
Other Income (Expense) - net		$	37	$	(26)	$	(2)	$	(18)
PPL Energy Supply
Other Income
	Earnings on securities in NDT funds	$	2	$	4	$	20	$	15
	Miscellaneous		1		3		6		6
	Total Other Income		3		7		26		21
Other Expense
	Miscellaneous		1		1		6		4
	Total Other Expense		1		1		6		4
Other Income (Expense) - net		$	2	$	6	$	20	$	17

		Three Months				Nine Months
		2011		2010		2011		2010
		Successor		Predecessor		Successor		Predecessor
LKE
Other Income
	Net derivative gains (losses)			$	29			$	19
	Equity in earnings of unconsolidated affiliate	$	1		2	$	1		3
	Miscellaneous				3		3		4
	Total Other Income		1		34		4		26
Other Expense
	Charitable contributions		1				3		3
	Miscellaneous				3		2		6
	Total Other Expense		1		3		5		9
Other Income (Expense) - net		$		$	31	$	(1)	$	17
LG&E
Other Income
	Net derivative gains (losses)			$	29			$	19
	Miscellaneous					$	2		1
	Total Other Income				29		2		20
Other Expense
	Charitable contributions						2		1
	Miscellaneous								2
	Total Other Expense						2		3
Other Income (Expense) - net				$	29	$		$	17

(a)       Represents a gain on foreign currency forward contracts that hedged the repayment of the 2011 Bridge Facility borrowing.

(b)In July 2011, as a result of PPL Electric's redemption of 7.125% Senior Secured Bonds due 2013, PPL recorded a gain on the accelerated amortization of the fair value adjustment to the debt recorded in connection with previously settled fair value hedges.

(c)       As a result of the net proceeds from the sale of certain non-core generation facilities, coupled with the monetization of full-requirement sales contracts, debt that had been planned to be issued by PPL Energy Supply was no longer needed. As a result, hedge accounting associated with interest rate swaps entered into by PPL in anticipation of a debt issuance by PPL Energy Supply was discontinued. Associated net losses were reclassified from AOCI into earnings.

(d)       Represents a foreign currency loss related to the repayment of the 2011 Bridge Facility borrowing.

"Other Income (Expense) - net" for the three and nine months ended September 30, 2011and 2010 for PPL Electric is primarily AFUDC. KU amounts are not significant.