Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies [Abstract]

Bargaining Unit Special Termination Benefits

As a result, for the nine months ended September 30, 2014, the following total separation benefits have been recorded:

			PPL Energy		PPL
	PPL		Supply		Electric
Pension Benefits	$	13	$	11	$	2
Severance Compensation		7		6		1
Total Separation Benefits	$	20	$	17	$	3
Number of Employees		121		105		15

Guarantees

The table below details guarantees provided as of September 30, 2014.

	Exposure at			Expiration
	September 30, 2014			Date
PPL
Indemnifications related to the WPD Midlands acquisition			(a)
WPD indemnifications for entities in liquidation and sales of assets	$	12	(b)	2017 - 2018
WPD guarantee of pension and other obligations of unconsolidated entities		125	(c)
PPL Energy Supply
Letters of credit issued on behalf of affiliates		27	(d)	2014 - 2015
Indemnifications for sales of assets		250	(e)	2025
Guarantee of a portion of a divested unconsolidated entity's debt		22	(f)	2018
PPL Electric
Guarantee of inventory value		33	(g)	2017
LKE
Indemnification of lease termination and other divestitures		301	(h)	2021 - 2023
LG&E and KU
LG&E and KU guarantee of shortfall related to OVEC			(i)

(a)Indemnifications related to certain liabilities, including a specific unresolved tax issue and those relating to properties and assets owned by the seller that were transferred to WPD Midlands in connection with the acquisition. A cross indemnity has been received from the seller on the tax issue. The maximum exposure and expiration of these indemnifications cannot be estimated because the maximum potential liability is not capped and the expiration date is not specified in the transaction documents.

(b)Indemnification to the liquidators and certain others for existing liabilities or expenses or liabilities arising during the liquidation process. The indemnifications are limited to distributions made from the subsidiary to its parent either prior or subsequent to liquidation or are not explicitly stated in the agreements. The indemnifications generally expire two to seven years subsequent to the date of dissolution of the entities. The exposure noted only includes those cases where the agreements provide for specific limits.

In connection with their sales of various businesses, WPD and its affiliates have provided the purchasers with indemnifications that are standard for such transactions, including indemnifications for certain pre-existing liabilities and environmental and tax matters or have agreed to continue their obligations under existing third-party guarantees, either for a set period of time following the transactions or upon the condition that the purchasers make reasonable efforts to terminate the guarantees. Finally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

(c)Relates to certain obligations of discontinued or modified electric associations that were guaranteed at the time of privatization by the participating members. Costs are allocated to the members and can be reallocated if an existing member becomes insolvent. At September 30, 2014, WPD has recorded an estimated discounted liability for which the expected payment/performance is probable. Neither the expiration date nor the maximum amount of potential payments for certain obligations is explicitly stated in the related agreements, and as a result, the exposure has been estimated.

(d)Standby letter of credit arrangements under PPL Energy Supply's credit facilities for the purposes of protecting various third parties against nonperformance by PPL. This is not a guarantee by PPL on a consolidated basis.

(e)Indemnifications are governed by the specific sales agreement and include breach of the representations, warranties and covenants, and liabilities for certain other matters. PPL Energy Supply's maximum exposure with respect to certain indemnifications and the expiration of the indemnifications cannot be estimated because the maximum potential liability is not capped by the transaction documents and the expiration date is based on the applicable statute of limitations. The exposure and expiration date noted is based on those cases in which the agreements provide for specific limits.

(f)Relates to a guarantee of one-third of the divested entity's debt. The purchaser provided a cross-indemnity, secured by a lien on the purchaser's stock of the divested entity. The exposure noted reflects principal only.

(g)A third party logistics firm provides inventory procurement and fulfillment services. The logistics firm has title to the inventory, however, upon termination of the contracts, PPL Electric has guaranteed to purchase any remaining inventory that has not been used or sold.

(h)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. On May 30, 2014, the Court of Appeals issued an opinion affirming the lower court decision, and subsequently denied a Petition for Rehearing.  LKE’s indemnitee filed a Motion for Discretionary Review with the Kentucky Supreme Court on October 2, 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. 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.

(i)Pursuant to the OVEC power purchase contract, LG&E and KU are obligated to pay for their share of OVEC's excess debt service, post-retirement and decommissioning costs, as well as any shortfall from amounts currently included within a demand charge designed and currently expected to cover these costs over the term of the contract. The maximum exposure and the expiration date of these potential obligations are not presently determinable. See “Energy Purchase Commitments” and “Guarantees and Other Assurances” in Note 15 in PPL’s, LKE’s, LG&E’s and KU’s 2013 Form 10-K for additional information on the OVEC power purchase contract.

PPL Energy Supply LLC [Member]

Commitments and Contingencies [Abstract]

Bargaining Unit Special Termination Benefits

As a result, for the nine months ended September 30, 2014, the following total separation benefits have been recorded:

			PPL Energy		PPL
	PPL		Supply		Electric
Pension Benefits	$	13	$	11	$	2
Severance Compensation		7		6		1
Total Separation Benefits	$	20	$	17	$	3
Number of Employees		121		105		15

PPL Electric Utilities Corp [Member]

Commitments and Contingencies [Abstract]

Bargaining Unit Special Termination Benefits

As a result, for the nine months ended September 30, 2014, the following total separation benefits have been recorded:

			PPL Energy		PPL
	PPL		Supply		Electric
Pension Benefits	$	13	$	11	$	2
Severance Compensation		7		6		1
Total Separation Benefits	$	20	$	17	$	3
Number of Employees		121		105		15