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Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2011
Notes To Financial Statements [Abstract] 
Business and Consolidation

Business and Consolidation (PPL)

 

As noted above, on April 1, 2011, PPL, through its indirect, wholly owned subsidiary, PPL WEM, completed the acquisition of WPD Midlands. PPL consolidates WPD, including WPD Midlands, on a one-month lag. Material intervening events, such as debt issuances that occur in the lag period, are recognized in the current period financial statements. Events that are significant but not material are disclosed. See Note 8 for additional information.

Regulation

Regulation (PPL, PPL Electric, LKE, LG&E and KU)

 

The electricity distribution subsidiaries of PPL WW and PPL WEM are not subject to accounting for the effects of certain types of regulation as prescribed by GAAP, as their operations do not meet the requirements for such accounting guidance. However, PPL Electric, LG&E and KU all apply this accounting guidance.

Accounts Receivable

Accounts Receivable (PPL, PPL Energy Supply and PPL Electric)

 

PPL Electric's customers may elect to procure generation supply from an alternative supplier. As a result of a PUC-approved purchase of accounts receivable program, PPL Electric has purchased certain accounts receivable from alternative suppliers at a nominal discount, which reflects a provision for uncollectible accounts. The alternative suppliers (including PPL Electric's affiliate, PPL EnergyPlus) have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. PPL Electric receives a nominal fee for administering its program. During the three and nine months ended September 30, 2011, PPL Electric purchased $219 million and $671 million of accounts receivable from unaffiliated third parties and $74 million and $194 million from its affiliate, PPL EnergyPlus. During the three and nine months ended September 30, 2010, PPL Electric purchased $203 million and $428 million of accounts receivable from unaffiliated third parties and $66 million and $157 million from its affiliate, PPL EnergyPlus.