Other Income (Expense) - net

9 Months Ended

Sep. 30, 2012

Other Income (Expense) Net [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
		2012		2011		2012		2011
PPL
Other Income
	Gain on redemption of debt (a)			$	22			$	22
	Earnings on securities in NDT funds	$	5		2	$	17		20
	Interest income		1		1		4		5
	AFUDC - equity component		2		2		7		5
	Net hedge gains associated with the 2011 Bridge Facility (b)								55
	Earnings (losses) from equity method investments		(1)		1		(7)		1
	Miscellaneous - Domestic		3		2		8		9
	Miscellaneous - U.K.		(1)				1		1
	Total Other Income		9		30		30		118
Other Expense
	Economic foreign currency exchange contracts (Note 14)		47		(11)		40		(11)
	Charitable contributions		1		2		7		7
	WPD Midlands acquisition-related costs (Note 8)								36
	Foreign currency loss on 2011 Bridge Facility (c)								57
	U.K. stamp duty tax (Note 8)								21
	Miscellaneous - Domestic		4		2		12		7
	Miscellaneous - U.K.		1				2		3
	Total Other Expense		53		(7)		61		120
Other Income (Expense) - net		$	(44)	$	37	$	(31)	$	(2)
PPL Energy Supply
Other Income
	Earnings on securities in NDT funds	$	5	$	2	$	17	$	20
	Interest income				1		1		1
	Miscellaneous		1				3		5
	Total Other Income		6		3		21		26
Other Expense
	Charitable contributions		1		1		2		2
	Miscellaneous		1				5		4
	Total Other Expense		2		1		7		6
Other Income (Expense) - net		$	4	$	2	$	14	$	20

(a)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.

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

(c)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, 2012and 2011 for PPL Electric is primarily the equity component of AFUDC."Other Income (Expense) - net" for the nine months ended September30,2012for LKE andKU is primarilylosses from an equity method investment.The components of "Other Income (Expense) - net" for the three months ended September 30, 2012 and 2011 and for the nine months ended September 30, 2011 for LKE and KU are not significant. The components of "Other Income (Expense) - net" for the three and nine months ended September 30, 2012 and 2011 for LG&Eare not significant.