The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Energy Supply, PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts borrowed below are recorded as "Short-term debt" on the Balance Sheets. The following credit facilities were in place at:

				March 31, 2014										December 31, 2013
										Letters of						Letters of
										Credit						Credit
										and						and
										Commercial						Commercial
				Expiration						Paper		Unused				Paper
				Date		Capacity		Borrowed		Issued		Capacity		Borrowed		Issued
PPL
U.K.

		PPL WW Syndicated
			Credit Facility		Dec. 2016	£	210	£	98			£	112	£	103
		WPD (South West)
			Syndicated Credit Facility		Jan. 2017		245						245
		WPD (East Midlands)
			Syndicated Credit Facility		Apr. 2016		300						300
		WPD (West Midlands)
			Syndicated Credit Facility		Apr. 2016		300						300
		Uncommitted Credit Facilities					88			£	5		83			£	5
			Total U.K. Credit Facilities (a)			£	1,143	£	98	£	5	£	1,040	£	103	£	5

U.S.
	PPL Capital Funding
		Syndicated Credit Facility (b)			Nov. 2018	$	300	$	185			$	115	$	270
		Bilateral Credit Facility			Mar. 2015		150						150
			Total PPL Capital Funding Credit Facilities			$	450	$	185			$	265	$	270

PPL Energy Supply
	Syndicated Credit Facility (b)				Nov. 2017	$	3,000	$	350	$	730	$	1,920			$	29
	Letter of Credit Facility				Mar. 2015		150				91		59				138
	Uncommitted Credit Facilities						175				77		98				77
			Total PPL Energy Supply Credit Facilities			$	3,325	$	350	$	898	$	2,077			$	244

PPL Electric
	Syndicated Credit Facility				Oct. 2017	$	300			$	61	$	239			$	21

LKE
	Syndicated Credit Facility (b)				Oct. 2018	$	75	$	75					$	75

LG&E
	Syndicated Credit Facility				Nov. 2017	$	500			$	15	$	485			$	20

KU
	Syndicated Credit Facility				Nov. 2017	$	400			$	110	$	290			$	150
	Letter of Credit Facility				May 2016		198				198						198
			Total KU Credit Facilities			$	598			$	308	$	290			$	348

(a) PPL WW's amounts borrowed at March 31, 2014 and December 31, 2013 were USD-denominated borrowings of $164 million and $166 million, which equated to £98 million and £103 million at the time of borrowings and bore interest at 1.86% and 1.87%. At March 31, 2014, the unused capacity under the U.K. credit facilities was $1.7 billion.

(b) At March 31, 2014, interest rates on outstanding borrowings were 1.79% for PPL Capital Funding and 1.66% for PPL Energy Supply and LKE. At December 31, 2013, interest rates on outstanding borrowings were 1.79% for PPL Capital Funding and 1.67% for LKE.

PPL Energy Supply, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs, as necessary. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's Syndicated Credit Facility. The following commercial paper programs were in place at:

		March 31, 2014								December 31, 2013
		Weighted -				Commercial				Weighted -		Commercial
		Average				Paper		Unused		Average		Paper
		Interest Rate		Capacity		Issuances		Capacity		Interest Rate		Issuances

PPL Energy Supply			0.48%	$	750	$	620	$	130
PPL Electric			0.33%		300		60		240		0.23%	$	20
LG&E			0.27%		350		15		335		0.29%		20
KU			0.29%		350		110		240		0.32%		150
	Total			$	1,750	$	805	$	945			$	190

PPL Energy Supply maintains a $500 million Facility Agreement expiring June 2017, that provides PPL Energy Supply the ability to request up to $500 million of committed letter of credit capacity at fees to be agreed upon at the time of each request, based on certain market conditions. At March 31, 2014, PPL Energy Supply had not requested any capacity for the issuance of letters of credit under this arrangement.

PPL Energy Supply, PPL EnergyPlus, PPL Montour and PPL Brunner Island maintain an $800 million secured energy marketing and trading facility, whereby PPL EnergyPlus will receive credit to be applied to satisfy collateral posting obligations related to its energy marketing and trading activities with counterparties participating in the facility. The credit amount is guaranteed by PPL Energy Supply, PPL Montour and PPL Brunner Island. PPL Montour and PPL Brunner Island have granted liens on their respective generating facilities to secure any amount they may owe under their guarantees. The facility expires in November 2018, but is subject to automatic one-year renewals under certain conditions. There were no secured obligations outstanding under this facility at March 31, 2014.

In March 2014, PPL Capital Funding remarketed $978 million of 4.32% Junior Subordinated Notes due 2019 that were originally issued in April 2011 as a component of PPL's 2011 Equity Units. In connection with the remarketing, PPL Capital Funding retired $228 million of the 4.32% Junior Subordinated Notes due 2019 and issued $350 million of 2.189% Junior Subordinated Notes due 2017 and $400 million of 3.184% Junior Subordinated Notes due 2019. Simultaneously, the newly issued notes were exchanged for $350 million of 3.95% Senior Notes due 2024 and $400 million of 5.00% Senior Notes due 2044. The transaction was accounted for as a debt extinguishment, resulting in a $(9) million gain (loss) on extinguishment of the Junior Subordinated Notes, recorded to "Interest Expense" on the Statement of Income. Except for the $228 million retirement of the 4.32% Junior Subordinated Notes and fees related to the transactions, the activity was non-cash and was excluded from the Statement of Cash Flows for the three months ended March 31, 2014. Additionally, on May 1, 2014, PPL issued 31.7 million shares of common stock at $30.86 per share to settle the 2011 Purchase Contracts. PPL received net cash proceeds of $978 million, which will be used to repay short-term debt and for general corporate purposes.

In February 2014, PPL declared its quarterly common stock dividend, payable April 1, 2014, at 37.25 cents per share (equivalent to $1.49 per annum). Future dividends, declared at the discretion of the Board of Directors, will be dependent upon future earnings, cash flows, financial and legal requirements and other factors.