Defined Benefits

9 Months Ended

Sep. 30, 2012

Defined Benefits [Abstract]

Defined Benefits

9. Defined Benefits

(PPL, PPL Energy Supply and PPL 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.

(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&Efor the periods ended September 30:

			Pension Benefits
			Three Months								Nine Months
			U.S.				U.K.				U.S.				U.K.
			2012		2011		2012		2011		2012		2011		2012		2011
PPL
Service cost			$	25	$	24	$	13	$	14	$	77	$	71	$	40	$	31
Interest cost				55		54		85		88		165		163		254		200
Expected return on plan assets				(65)		(61)		(115)		(103)		(195)		(184)		(340)		(243)
Amortization of:
		Prior service cost		6		6		1		1		18		18		3		3
		Actuarial (gain) loss		11		7		19		15		32		21		59		44
Net periodic defined benefit
	costs (credits) prior to
	termination benefits			32		30		3		15		97		89		16		35
Termination benefits (a)										45								47
Net periodic defined benefit
	costs (credits)		$	32	$	30	$	3	$	60	$	97	$	89	$	16	$	82

(a)       In 2011, WPD Midlands recorded early retirement deficiency costs payable under applicable pension plans related to employees leaving the WPD Midlands companies. See Note 8 for additional information.

		Pension Benefits
		Three Months				Nine Months
		2012		2011		2012		2011
PPL Energy Supply
Service cost		$	1	$	1	$	4	$	3
Interest cost			2		1		6		5
Expected return on plan assets			(2)		(2)		(7)		(6)
Amortization of:
	Actuarial (gain) loss		1		1		2		2
Net periodic defined benefit costs (credits)		$	2	$	1	$	5	$	4

LKE
Service cost		$	5	$	6	$	16	$	18
Interest cost			16		16		48		50
Expected return on plan assets			(17)		(16)		(52)		(48)
Amortization of:
	Prior service cost		2		2		4		4
	Actuarial (gain) loss		5		6		16		17
Net periodic defined benefit costs (credits)		$	11	$	14	$	32	$	41
LG&E
Service cost						$	1	$	1
Interest cost		$	4	$	4		11		11
Expected return on plan assets			(5)		(4)		(14)		(13)
Amortization of:
	Prior service cost		1				2		1
	Actuarial (gain) loss		3		3		8		9
Net periodic defined benefit costs (credits)		$	3	$	3	$	8	$	9

		Other Postretirement Benefits
		Three Months				Nine Months
		2012		2011		2012		2011
PPL
Service cost		$	3	$	3	$	9	$	9
Interest cost			7		9		23		25
Expected return on plan assets			(6)		(6)		(17)		(17)
Amortization of:
	Transition obligation						1		1
	Prior service cost		1				1
	Actuarial (gain) loss		1		1		3		4
Net periodic defined benefit costs (credits)		$	6	$	7	$	20	$	22

LKE
Service cost		$	1	$	1	$	3	$	3
Interest cost			3		3		7		8
Expected return on plan assets			(1)		(1)		(3)		(3)
Amortization of:
	Transition obligation						1		1
	Prior service cost				1		2		2
	Actuarial (gain) loss						(1)
Net periodic defined benefit costs (credits)		$	3	$	4	$	9	$	11

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

In addition to the specific plans they sponsor, PPL Energy Supply 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. For the periods ended September 30, PPL Services allocated the following net periodic benefit costs to PPL Energy Supply subsidiaries and PPLElectric, 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.

	Three Months				Nine Months
	2012		2011		2012		2011
PPL Energy Supply	$	10	$	8	$	29	$	23
PPL Electric		8		6		23		18

LG&E	3	5	9	13
KU	4	6	13	17

Expected Cash Flows - U.K. Pension Plans

(PPL)

At September 30, 2012, WPD'sexpected pension contributions for 2012are $344 million compared with$161 millionas disclosed in PPL's2011 Form 10-K. During the nine months ended September 30, 2012, contributions of $302 million were made. The additional contributions are being made to prepay future contribution requirements to fund pension plan deficits.