Financing Activities

3 Months Ended

Mar. 31, 2015

7. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

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 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, 2015										December 31, 2014
										Letters of						Letters of
										Credit						Credit
										and						and
										Commercial						Commercial
				Expiration						Paper		Unused				Paper
				Date		Capacity		Borrowed		Issued		Capacity		Borrowed		Issued
PPL
U.K.
	WPD Ltd.
		Syndicated Credit Facility			Dec. 2016	£	210	£	130			£	80	£	103
	WPD (South West)
		Syndicated Credit Facility			July 2019		245						245
	WPD (East Midlands)
		Syndicated Credit Facility			July 2019		300		147				153		64
	WPD (West Midlands)
		Syndicated Credit Facility			July 2019		300						300
	Uncommitted Credit Facilities						65			£	5		60			£	5
			Total U.K. Credit Facilities (a)			£	1,120	£	277	£	5	£	838	£	167	£	5

U.S.
	PPL Capital Funding
		Syndicated Credit Facility			July 2019	$	300					$	300
		Syndicated Credit Facility			Nov. 2018		300						300
		Bilateral Credit Facility			Mar. 2016		150			$	32		118			$	21
		Uncommitted Credit Facility					65				1		64				1
			Total PPL Capital Funding Credit Facilities			$	815			$	33	$	782			$	22

	PPL Energy Supply
		Syndicated Credit Facility (b)			Nov. 2017	$	3,000	$	600	$	267	$	2,133	$	630	$	121

PPL Electric
	Syndicated Credit Facility				July 2019	$	300			$	86	$	214			$	1

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

LG&E
	Syndicated Credit Facility				July 2019	$	500			$	216	$	284			$	264

KU
	Syndicated Credit Facility				July 2019	$	400			$	193	$	207			$	236
	Letter of Credit Facility				Oct. 2017		198				198						198
			Total KU Credit Facilities			$	598			$	391	$	207			$	434

(a) WPD Ltd.'s amounts borrowed at March 31, 2015 and December 31, 2014 were USD-denominated borrowings of $200 million and $161 million, which bore interest at 1.87% and 1.86%. WPD (East Midlands) amounts borrowed at March 31, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $226 million and $100 million, which bore interest at 1.00% for both periods. At March 31, 2015, the unused capacity under the U.K. credit facilities was $1.3 billion.

(b) At March 31, 2015, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.12% and 1.68%. At December 31, 2014, PPL Energy Supply’s and LKE’s interest rates on outstanding borrowings were 2.05% and 1.67%.

(PPL)

PPL Energy Supply’s Letter of Credit Facility and Uncommitted Credit Facilities that existed at December 31, 2014 have either expired or matured during the first quarter of 2015. Any previously issued letters of credit under these facilities were either terminated or reissued under the PPL Energy Supply Syndicated Credit Facility at March 31, 2015.

(All Registrants)

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, 2015								December 31, 2014
		Weighted -				Commercial				Weighted -		Commercial
		Average				Paper		Unused		Average		Paper
		Interest Rate		Capacity		Issuances		Capacity		Interest Rate		Issuances

PPL Electric			0.57%	$	300	$	85	$	215
LG&E			0.63%		350		216		134		0.42%	$	264
KU			0.62%		350		193		157		0.49%		236
	Total			$	1,000	$	494	$	506			$	500

(PPL)

PPL Energy Supply maintains a $500 million Facility Agreement expiring June 2017, which 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, 2015, 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 2019, but is subject to automatic one-year renewals under certain conditions. There were $88 million of secured obligations outstanding under this facility at March 31, 2015.

(LKE)

See Note 11 for discussion of intercompany borrowings.

(PPL)

At-the-Market Stock Offering Program

On February 26, 2015, PPL entered into two separate equity distribution agreements, pursuant to which PPL may sell, from time to time, up to an aggregate of $500 million of its common stock. During the period ended March 31, 2015, no sales of common stock under the equity distribution agreements were made.

Distributions

In February 2015, PPL declared its quarterly common stock dividend, payable April 1, 2015, at 37.25 cents per share (equivalent to $1.49 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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