Defined Benefits

3 Months Ended

Mar. 31, 2012

Defined Benefits [Abstract]

Defined Benefits

9. Defined Benefits

(PPL, PPL Energy SupplyandPPL Electric)

Prior to January 1, 2012, the majority of PPL's Montana and Pennsylvania employees were eligible for pension benefits under PPL Montana's cash balance pension plan or PPL's qualified and non-qualified non-contributory defined benefit pension plans with benefits based on length of service and final average pay, as defined by the plans. Effective January 1, 2012, these plans were closed to newly hired salaried employees. Newly hired bargaining unit employees will continue to be eligible under these plans based on their collective bargaining agreements. Salaried employees hired on or after January 1, 2012 will be eligible to participate in the new PPL Retirement Savings Plan, a 401(k) savings plan with enhanced employer matching. The changes to the plans are not expected to have a significant near-term cost impact.

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

Following are the net periodic defined benefit costs (credits) of the plans sponsored byPPL, PPL Energy Supply, LKE and LG&E for the three months ended March 31.

										Other Postretirement
		Pension Benefits								Benefits
		U.S.				U.K.
		2012		2011		2012		2011		2012		2011
PPL
Service cost		$	26	$	24	$	13	$	5	$	3	$	3
Interest cost			56		55		84		39		8		8
Expected return on plan assets			(66)		(62)		(111)		(52)		(6)		(6)
Amortization of:
	Transition obligation										1
	Prior service cost		6		6		1		1
	Actuarial (gain) loss		10		6		20		14		1		2
Net periodic defined benefit costs (credits)		$	32	$	29	$	7	$	7	$	7	$	7
PPL Energy Supply
Service cost		$	1	$	1
Interest cost			2		2
Expected return on plan assets			(2)		(2)
Amortization of:
	Actuarial (gain) loss		1
Net periodic defined benefit costs (credits)		$	2	$	1

LKE
Service cost		$	6	$	6	$	1	$	1
Interest cost			17		17		2		3
Expected return on plan assets			(18)		(16)		(1)		(1)
Amortization of:
	Prior service cost		1		1		1		1
	Actuarial (gain) loss		5		5
Net periodic defined benefit costs (credits)		$	11	$	13	$	3	$	4
LG&E
Interest cost		$	4	$	4
Expected return on plan assets			(5)		(4)
Amortization of:
	Prior service cost		1
	Actuarial (gain) loss		3		3
Net periodic defined benefit costs (credits)		$	3	$	3

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

In addition to the specific plans they sponsor, PPL Energy Supply and its subsidiaries are also allocated costs of defined benefit plans sponsored by PPL Services and LG&E is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. PPL Electric and KU do not directly sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. PPL Services allocated the following net periodic benefit costs to PPL Energy Supply and PPL Electric and LKE allocated the following net periodic benefit costs to LG&E and KU, including amounts applied to accounts that are further distributed between capital and expense for the three months ended March 31.

	2012		2011
PPL Energy Supply	$	10	$	7
PPL Electric		8		6

LG&E	3	4
KU	4	6

Expected Cash Flows - U.K. Pension Plans

(PPL)

During the three months ended March 31,2012, WPD adjusted its expected pension contributions for 2012to $307 million from$161 millionas disclosed in PPL's 2011 Form 10-K. As of April 30, 2012, contributions of $186 million havebeen made. The increased contributions are being made to prepay future contribution requirements to fund pension plan deficits.