Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(PPL)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income from Continuing Operations Before
	Income Taxes at statutory tax rate - 35%			$	132	$	180	$	282	$	377
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			(7)		14		(5)		17
		State valuation allowance adjustments (a)			46				46
		Impact of lower U.K. income tax rates			(31)		(25)		(76)		(63)
		U.S. income tax on foreign earnings - net of foreign tax credit (b)			10		(7)		21		(5)
		Federal and state tax reserve adjustments (c)					(39)				(40)
		Federal income tax credits			(1)		(2)		(2)		(5)
		Amortization of investment tax credit			(1)		(2)		(3)		(5)
		Depreciation not normalized			(2)		(1)		(4)		(4)
		State deferred tax rate change			3				3
		Other					(9)		(1)		(12)
			Total increase (decrease)		17		(71)		(21)		(117)
Total income taxes				$	149	$	109	$	261	$	260

(a)As a result of thespinoff announcement, PPL recorded deferred income tax expense during the three and six months ended June 30, 2014 to adjust valuation allowances on deferred tax assets primarily for state net operating loss carryforwards that were previously supported by the future earnings of PPL Energy Supply. See Note 8 for additional information on the anticipated spinoff.

(b)During the three and sixmonths ended June30, 2014, PPL recorded income tax expense primarily attributable to the expected taxable amount of cash repatriation in 2014.

       During the three and six months ended June 30, 2013, PPL recorded a $14 million increase to income tax expense primarily attributable to a revision in the expected taxable amount of cash repatriation in 2013 offset by a $19 million income tax benefit associated with a ruling obtained from the IRS impacting the recalculation of 2010 U.K. earnings and profits that was reflected on amended 2010 U.S. tax returns.

(c)In 1997, the U.K. imposed a Windfall Profits Tax (WPT) on privatized utilities, including WPD. PPL filed its tax returns for years subsequent to its 1997 and 1998 claims for refund on the basis that the U.K. WPT was creditable. In September 2010, the U.S. Tax Court (Tax Court) ruled in PPL's favor in a dispute with the IRS, concluding that the U.K. WPT is a creditable tax for U.S. tax purposes. In January 2011, the IRS appealed the Tax Court's decision to the U.S. Court of Appeals for the Third Circuit (Third Circuit). In December 2011, the Third Circuit issued its opinion reversing the Tax Court's decision, holding that the U.K. WPT is not a creditable tax. As a result of the Third Circuit's adverse determination, PPL recorded a $39 million expense in 2011.In June 2012, the U.S. Court of Appeals for the Fifth Circuit issued a contrary opinion in an identical case involving another company. In July 2012, PPL filed a petition for a writ of certiorari seeking U.S. Supreme Court review of the Third Circuit's opinion. The Supreme Court granted PPL's petition and oral argument was held in February 2013. In May 2013, the Supreme Court reversed the Third Circuit's opinion and ruled that the WPT is a creditable tax. As a result of the Supreme Court ruling, PPL recorded a tax benefit of $44 million during the three and six months ended June 30, 2013, of which $19 million relates to interest.

PPL Energy Supply LLC [Member]

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(PPL Energy Supply)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income (Loss) Before Income Taxes at statutory
	tax rate - 35%			$	4	$	54	$	(37)	$	28
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit (a)			(9)		9		(18)		3
		Federal and state tax reserve adjustments			1		7		1		6
		Federal income tax credits							(1)		(3)
		State deferred tax rate change			3				3
		Other			(2)		(3)				(2)
			Total increase (decrease)		(7)		13		(15)		4
Total income taxes				$	(3)	$	67	$	(52)	$	32

(a)During the second quarter of 2014, PPL Energy Supply recorded a $9 million credit to income tax expense, comprised of a $4million credit to income tax expense recorded in 2013 and a $5million credit related to an adjustment to the annual estimated effective income tax rate utilized to calculate income tax expense for the three months ended March 31, 2014. The adjustment to the annual estimated effective income tax rate had no impact on income tax expense for the six months ended June 30, 2014. The adjustment related to 2013 is not material to previously-issued financial statements and is not expected to be material to the full year results for 2014.

PPL Electric Utilities Corp [Member]

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(PPL Electric)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income Before Income Taxes at statutory
	tax rate - 35%			$	29	$	24	$	77	$	58
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			4		3		12		8
		Federal and state tax reserve adjustments			(1)		(2)		(1)		(4)
		Depreciation not normalized			(1)		(1)		(3)		(4)
		Other							(1)		(1)
			Total increase (decrease)		2				7		(1)
Total income taxes				$	31	$	24	$	84	$	57

LG And E And KU Energy LLC [Member]

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(LKE)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income from Continuing Operations Before
	Income Taxes at statutory tax rate - 35%			$	37	$	35	$	102	$	89
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			4		3		10		8
		Other					(1)		(2)		(3)
			Total increase (decrease)		4		2		8		5
Total income taxes from continuing operations				$	41	$	37	$	110	$	94

Louisville Gas And Electric Co [Member]

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(LG&E)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income Before Income Taxes at statutory
	tax rate - 35%			$	20	$	16	$	48	$	40
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			2		1		5		4
		Other			(1)				(2)		(2)
			Total increase (decrease)		1		1		3		2
Total income taxes				$	21	$	17	$	51	$	42

Kentucky Utilities Co [Member]

Income Taxes [Line Items]

Reconciliation of Income Tax Expense Derived From Statutory Tax Rate

Reconciliations of income taxes for the periods ended June 30 are:

(KU)
				Three Months				Six Months
				2014		2013		2014		2013
Federal income tax on Income Before Income Taxes at statutory
	tax rate - 35%			$	23	$	25	$	66	$	61
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			2		2		7		6
		Other			1		(1)		(1)		(2)
			Total increase (decrease)		3		1		6		4
Total income taxes				$	26	$	26	$	72	$	65