SCHEDULE I - CONDENSED UNCONSOLICATED FINANCIAL STATEMENTS AND NOTES TO CONDENSED UNCONSOLIDATED FINANCIAL STATEMENTS (L G And E And K U Energy L L C Unconsolidated [Member])

12 Months Ended

Dec. 31, 2013

L G And E And K U Energy L L C Unconsolidated [Member]

Condensed Unconsolidated Financial Information [Line Items]

Schedule I - Condensed Unconsolidated Financial Information

SCHEDULE I - LG&E and KU Energy LLC
CONDENSED UNCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31,
(Millions of Dollars)
		2013		2012		2011
Operating Revenues
Operating Expenses
	Other operation and maintenance			$	3
	Total Operating Expenses				3
Operating Income (Loss)					(3)
Equity in Earnings of Subsidiaries		$	376		234	$	267
Interest Income with Affiliate			5		10		29
Interest Expense			39		39		31
Interest Expense with Affiliate			3		2		2
Income (Loss) Before Income Taxes			339		200		263
Income Tax Expense (Benefit)			(8)		(19)		(2)
Net Income (Loss) Attributable to Member		$	347	$	219	$	265
Comprehensive Income (Loss) Attributable to Member		$	375	$	200	$	263
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
FOR THE YEARS ENDED DECEMBER 31,
(Millions of Dollars)
		2013		2012		2011
Cash Flows from Operating Activities
Net cash provided by (used in) operating activities		$	136	$	364	$	346
Cash Flows from Investing Activities
	Capital contributions to affiliated subsidiaries		(243)
	Net decrease (increase) in notes receivable from affiliates		(122)		(15)		(63)
Net cash provided by (used in) investing activities			(365)		(15)		(63)
Cash Flows from Financing Activities
	Net increase (decrease) in notes payable with affiliates		171		(196)
	Net increase (decrease) in short-term debt		75
	Issuance of long-term debt						250
	Contribution from member		243
	Distribution to member		(254)		(155)		(533)
Net cash provided by (used in) financing activities			235		(351)		(283)
Net Increase (Decrease) in Cash and Cash Equivalents			6		(2)
Cash and Cash Equivalents at Beginning of Period					2		2
Cash and Cash Equivalents at End of Period		$	6	$		$	2
Supplemental disclosures of cash flow information:
Cash Dividends Received from Affiliated Subsidiaries		$	223	$	175	$	207
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)
		2013		2012
Assets
Current Assets
	Cash and cash equivalents	$	6
	Accounts receivable		2
	Accounts receivable from affiliates		11	$	4
	Notes receivable from affiliates		1,682		1,560
	Deferred income taxes		10		1
	Total Current Assets		1,711		1,565
Investments
	Affiliated companies at equity		4,519		4,096
Other Noncurrent Assets
	Deferred income taxes		170		184
	Other noncurrent assets		6		7
	Total Other Noncurrent Assets		176		191
Total Assets		$	6,406	$	5,852
Liabilities and Equity
Current Liabilities
	Short-term debt	$	75
	Notes payable to affiliates			$	25
	Accounts payable to affiliates		843		906
	Taxes		12		8
	Other current liabilities		6		6
	Total Current Liabilities		936		945
Long-term Debt
	Long-term debt		1,121		1,121
	Notes payable to affiliates		196
	Total Long-term Debt		1,317		1,121
Deferred Credits and Other Noncurrent Liabilities			3
Equity			4,150		3,786
Total Liabilities and Equity		$	6,406	$	5,852
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements.

Schedule I– LG&E and KU Energy LLC

Notes to Condensed Unconsolidated Financial Statements

1.       Basis of Presentation

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 dividendsfrom its subsidiaries to fund LKE's dividends to its member and to meet its other cash requirements.

2.Commitments and Contingencies

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

Guarantees

LKE provides certain indemnifications, the most significant of which relate to the termination of the WKE lease 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 the LKE 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 ending July 2021, and a cumulative maximum exposure of $200 million. Certain items such as government fines and penalties fall outside the cumulative cap. LKE has contested the applicability of the indemnification requirement relating to one matter presented by a counterparty under this guarantee. Another guarantee with a maximum exposure of $100 million covering other indemnifications expires in 2023. In May 2012, LKE's indemnitee received an arbitration panel's decision affecting this matter, which granted LKE's indemnitee certain rights of first refusal to purchase excess power at a market-based price rather than at an absolute fixed price. In January 2013, LKE's indemnitee commenced a proceeding in the Kentucky Court of Appeals appealing the December 2012 order of the Henderson Circuit Court, confirming the arbitration award. A decision in the appellate matter may occur during 2014. LKE believes its indemnification obligations in this matter remain subject to various uncertainties, including potential for additional legal challenges regarding the arbitration decision as well as future prices, availability and demand for the subject excess power. LKE continues to evaluate various legal and commercial options with respect to this indemnification matter. The ultimate outcomes of the WKE termination-related indemnifications cannot be predicted at this time. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum; however, LKE is not aware of formal claims under such indemnities 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. In the second quarter of 2012, LKE adjusted its estimated liability for certain of these indemnifications by $9 million ($5 million after-tax), which is reflected in "Equity in Earnings of Subsidiaries" on the Statement of Income. LKE cannot predict the ultimate outcomes of such indemnification circumstances, but does not currently expect such outcomes to result in significant losses above the amounts recorded.