SCHEDULE I - PPL CORPORATION
CONDENSED UNCONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31,
(Millions of Dollars, except share data)

			2011		2010		2009

Operating Revenues			$		$		$

Operating Expenses
Other operation and maintenance						4
Total Operating Expenses						4

Operating Loss						(4)

Other Income - net
	Equity in earnings of subsidiaries			1,562		1,038		378
	Other income (expense)			(25)		(60)		3
		Total		1,537		978		381

Interest Expense - net				76		80		(39)

Income Before Income Taxes				1,461		894		420

Income Tax Expense (Benefit)				(34)		(44)		13

Net Income Attributable to PPL Corporation			$	1,495	$	938	$	407

Earnings Per Share of Common Stock:
	Net Income Available to PPL Corporation Common Shareowners:
		Basic	$	2.71	$	2.17	$	1.08
		Diluted	$	2.70	$	2.17	$	1.08

Weighted-Average Shares of Common Stock Outstanding (in thousands)
		Basic		550,395		431,345		376,082
		Diluted		550,952		431,569		376,406

		The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

SCHEDULE I - PPL CORPORATION
CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31,
(Millions of Dollars)

			2011		2010		2009

Cash Flows from Operating Activities
Net cash provided by (used in) operating activities			$	880	$	713	$	995

Cash Flows from Investing Activities
	Capital contributions to affiliated subsidiaries			(827)		(2,709)		(642)
	Acquisition of LKE					(6,842)
	Return of capital from affiliated subsidiaries			549		150		100
Net cash provided by (used in) investing activities				(278)		(9,401)		(542)

Cash Flows from Financing Activities
	Issuance of equity, net of issuance costs			2,297		2,441		60
	Net increase (decrease) in short-term debt with affiliates			(2,071)		6,826		5
	Payment of common stock dividends			(746)		(566)		(517)
	Contract adjustment payment			(72)		(13)
	Other			(10)				(1)
Net cash provided by (used in) financing activities				(602)		8,688		(453)

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period			$		$		$


Supplemental Disclosures of Cash Flow Information:
Cash Dividends Received from Affiliated Subsidiaries			$	812	$	507	$	717
Non-cash transactions:
	Reduction in "Short-term debt with affiliates" and "Affiliated companies
		at equity"			$	2,784
	Present value of contract adjustment payments		$	123		157

The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

SCHEDULE I - PPL CORPORATION
CONDENSED UNCONSOLIDATED BALANCE SHEETS AT DECEMBER 31,
(Millions of Dollars)

			2011		2010
Assets

Current Assets
	Accounts Receivable
		Other	$	5	$	6
		Affiliates		25		29
	Prepayments			36		121
	Deferred income taxes			8		11
	Price risk management assets			23		15
	Total Current Assets			97		182

Investments
	Affiliated companies at equity			14,181		13,406

Other Noncurrent Assets				80		32
Total Assets			$	14,358	$	13,620


Liabilities and Equity

Current Liabilities
	Short-term debt with affiliates		$	1,991	$	4,062
	Accounts payable with affiliates			1,095		958
	Dividends			203		170
	Price risk management liabilities			23		22
	Other current liabilities			98		55
	Total Current Liabilities			3,410		5,267


Deferred Credits and Other Noncurrent Liabilities				120		143

Equity
	PPL Corporation Shareowners' Common Equity
		Common stock - $0.01 par value (a)		6		5
		Additional paid-in capital		6,813		4,602
		Earnings reinvested		4,797		4,082
		Accumulated other comprehensive loss		(788)		(479)
		Total PPL Corporation Shareowners' Common Equity		10,828		8,210

Total Liabilities and Equity			$	14,358	$	13,620

(a) 780,000 shares authorized; 578,405 and 483,391 shares issued and outstanding at December 31, 2011 and December 31, 2010.

PPL Corporation is a holding company and conducts substantially all of its business operations through its subsidiaries. Substantially all of its consolidated assets are held by such subsidiaries. Accordingly, its cash flow and its ability to meet its obligations are largely dependent upon the earnings of these subsidiaries and the distribution or other payment of such earnings to it in the form of dividends, loans or advances or repayment of loans and advances from it. These condensed financial statements and related footnotes have been prepared in accordance with Reg. §210.12-04 of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of PPL Corporation.

PPL Corporation indirectly or directly owns all of the ownership interests of its significant subsidiaries. PPL Corporation does not own the preferred securities of PPL Electric Utilities Corporation. PPL Corporation relies on dividends or loans from its subsidiaries to fund PPL Corporation's dividends to its common shareholders and to meet its other cash requirements.

See Note 15 to PPL Corporation's consolidated financial statements for commitments and contingencies of its subsidiaries.

PPL Corporation's subsidiaries are separate and distinct legal entities and have no obligation to pay any amounts that may become due under PPL Corporation's guarantees or other assurances or to make any funds available for such payment.

PPL Corporation fully and unconditionally guarantees the payment of principal, premium and interest on all of the debt securities of PPL Capital Funding. The estimated maximum potential amount of future payments that could be required under the guarantees at December 31, 2011 was $5.2 billion. These guarantees will expire in 2067.

PPL Corporation has provided indemnification to the purchaser of PPL Gas Utilities and Penn Fuel Propane, LLC for damages arising out of any breach of the representations, warranties and covenants under the related transaction agreement and for damages arising out of certain other matters, including certain pre-closing unknown environmental liabilities relating to former manufactured gas plant properties or off-site disposal sites, if any, outside of Pennsylvania. The estimated maximum potential amount of future payments that could be required under the indemnifications at December 31, 2011 was $300 million. The indemnification provisions for most representations and warranties, including tax and environmental matters, are capped at $45 million, in the aggregate, and are triggered (i) only if the individual claim exceeds $50,000, and (ii) only if, and only to the extent that, in the aggregate, total claims exceed $4.5 million. The indemnification provisions for most representations and warranties expired on September 30, 2009 without any claims having been made. Certain representations and warranties, including those having to do with transaction authorization and title, survive indefinitely, are capped at the purchase price and are not subject to the above threshold or deductible. The indemnification provision for the tax matters representations survives for the duration of the applicable statute of limitation. The indemnification provision for the environmental matters representations expired on September 30, 2011 without any claims having been made. The indemnification for covenants survives until the applicable covenant is performed and is not subject to any cap.

SCHEDULE I - LG&E and KU Energy LLC
CONDENSED UNCONSOLIDATED STATEMENTS OF INCOME
(Millions of Dollars)

		Successor				Predecessor
				Two Months		Ten Months
		Year Ended		Ended		Ended		Year Ended
		December 31,		December 31,		October 31,		December 31,
		2011		2010		2010		2009

Operating Revenues

Operating Expenses
	Other operation and maintenance					$	(3)	$	(1)
	Total Operating Expenses						(3)		(1)

Loss on Impairment of Goodwill									1,493

Operating Income (Loss)							3		(1,492)

Equity in Earnings of Subsidiaries		$	267	$	48		204		(61)

Other Income (Expense) - net							(1)

Interest Income with Affiliate			29		5		29		31

Interest Expense			31		4

Interest Expense with Affiliate			2		1		47		60

Income (Loss) from Continuing Operations Before Income
	Taxes		263		48		188		(1,582)

Income Tax Expense (Benefit)			(2)		1		(2)		(6)

Income (Loss) from Continuing Operations After Income
	Taxes		265		47		190		(1,576)

Income (Loss) from Discontinued Operations (net of
	income taxes)								39

Net Income (Loss)			265		47		190		(1,537)

Noncontrolling Interest - Loss from Discontinued Operations									5

Net Income (Loss) Attributable to Member		$	265	$	47	$	190	$	(1,542)


The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

SCHEDULE I - LG&E and KU Energy LLC
CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of Dollars)

		Successor				Predecessor
				Two Months		Ten Months
		Year Ended		Ended		Ended		Year Ended
		December 31,		December 31,		October 31,		December 31,
		2011		2010		2010		2009

Cash Flows from Operating Activities
Net cash provided by (used in) operating activities		$	346	$	53	$	156	$	63

Cash Flows from Investing Activities
	Capital contributions to affiliated subsidiaries				(3)		(525)		(75)
	Net decrease (increase) in notes receivable from affiliates		(63)		313		234		(742)
Net cash provided by (used in) investing activities			(63)		310		(291)		(817)

Cash Flows from Financing Activities
	Net increase (decrease) in debt with affiliates				(208)		243		803
	Repayment of short-term borrowings				(2,103)
	Retirement of long-term debt				(400)
	Issuance of long-term debt		250		870
	Debt-issuance costs				(6)
	Contribution from member				1,565
	Distribution to member		(533)		(100)
	Payment of common stock dividends						(87)		(49)
Net cash provided by (used in) financing activities			(283)		(382)		156		754

Net Increase (Decrease) in Cash and Cash Equivalents					(19)		21
Cash and Cash Equivalents at Beginning of Period			2		21
Cash and Cash Equivalents at End of Period		$	2	$	2	$	21	$


Supplemental disclosures of cash flow information:
Cash Dividends Received from Affiliated Subsidiaries		$	207	$		$	105	$	80

The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

SCHEDULE I - LG&E and KU Energy LLC
CONDENSED UNCONSOLIDATED BALANCE SHEETS AT DECEMBER 31,
(Millions of Dollars)

		2011		2010
Assets

Current Assets
	Cash and cash equivalents	$	2	$	2
	Accounts receivable from affiliates		11		61
	Notes receivable from affiliates		1,520		787
	Other current assets		4
	Total Current Assets		1,537		850

Investments
	Affiliated companies at equity		4,056		3,998

Other Noncurrent Assets
	Notes receivable from affiliates				670
	Deferred income taxes		163		166
	Other noncurrent assets		8		6
	Total Other Noncurrent Assets		171		842

Total Assets		$	5,764	$	5,690

Liabilities and Equity

Current Liabilities
	Accounts payable to affiliates	$	701	$	606
	Other current liabilities		6		7
	Total Current Liabilities		707		613

Long-term Debt
	Long-term debt		1,120		870
	Notes payable to affiliates		196		196
	Total Long-term Debt		1,316		1,066

Equity			3,741		4,011

Total Liabilities and Equity		$	5,764	$	5,690

The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

LG&E and KU Energy LLC (LKE) is a holding company and conducts substantially all of its business operations through its subsidiaries. Substantially all of its consolidated assets are held by such subsidiaries. Accordingly, its cash flow and its ability to meet its obligations are largely dependent upon the earnings of these subsidiaries and the distribution or other payment of such earnings to it in the form of dividends or repayment of loans and advances from the subsidiaries. These condensed financial statements and related footnotes have been prepared in accordance with Reg. §210.12-04 of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of LKE.

LKE indirectly or directly owns all of the ownership interests of its significant subsidiaries. LKE relies primarily on dividends from its subsidiaries to fund LKE's dividends to its member and to meet its other cash requirements.

See Note 15 to LKE's consolidated financial statements for commitments and contingencies of its subsidiaries.

In connection with various divestitures, LKE has indemnified/guaranteed respective parties against certain liabilities that may arise in connection with these transactions and business activities. The terms of these indemnifications/guarantees vary, as do the expiration terms. LKE has issued direct financial guarantees to parties involved in the WKE lease termination, which occurred in July 2009. These guarantees cover the due and punctual payment, performance and discharge by each party of its respective present and future obligations. The most comprehensive of these guarantees is a guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under the WKE Transaction Termination Agreement. This guarantee has a term of 12 years beginning on July 16, 2009 and a cumulative maximum exposure of $200 million. Certain items, such as non-excluded government fines and penalties, fall outside the cumulative cap. Another guarantee with a maximum exposure of $100 million covering other indemnifications expires in 2023. Certain matters are currently under discussion among the parties, including one matter currently in arbitration and a further matter for which LKE is contesting the applicability of the indemnification requirement. The matter in arbitration may be ruled upon during early 2012, which ruling may result in increases or decreases to the liability estimate LKE has currently recorded. The ultimate outcome of both matters cannot be predicted at this time. See Note 9, Discontinued Operations, for further information. Additionally, LKE has indemnified various third parties related to historical obligations for divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum amounts range from being capped at the sale price to no specified maximum; however, LKE is not aware of claims made by any party at this time. LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. No additional material loss is anticipated by reason of such indemnifications. A subsidiary of LKE has recorded liabilities for all guarantees totaling $11 million with respect to which LKE has certain guarantee obligations.