Financing Activities

6 Months Ended

Jun. 30, 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:

				June 30, 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 plc
		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		112				188		64
	WPD (West Midlands)
		Syndicated Credit Facility			July 2019		300						300
	Uncommitted Credit Facilities						65			£	4		61			£	5
			Total U.K. Credit Facilities (a)			£	1,120	£	242	£	4	£	874	£	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			$	20		130			$	21
		Uncommitted Credit Facility					65				1		64				1
			Total PPL Capital Funding Credit Facilities			$	815			$	21	$	794			$	22

PPL Electric
	Syndicated Credit Facility				July 2019	$	300			$	169	$	131			$	1

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

LG&E
	Syndicated Credit Facility				July 2019	$	500			$	259	$	241			$	264

KU
	Syndicated Credit Facility				July 2019	$	400			$	227	$	173			$	236
	Letter of Credit Facility				Oct. 2017		198				198						198
			Total KU Credit Facilities			$	598			$	425	$	173			$	434

(a) WPD plc's amounts borrowed at June 30, 2015 and December 31, 2014 were USD-denominated borrowings of $200 million and $161 million, which bore interest at 1.89% and 1.86%. WPD (East Midlands) amounts borrowed at June 30, 2015 and December 31, 2014 were GBP-denominated borrowings which equated to $171 million and $100 million, which bore interest at 1.01% for both periods. At June 30, 2015, the unused capacity under the U.K. credit facilities was $1.3 billion.

(b) LKE’s interest rates on outstanding borrowings at June 30, 2015 and December 31, 2014, were 1.44% and 1.67%.

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:

		June 30, 2015								December 31, 2014
		Weighted -				Commercial				Weighted -		Commercial
		Average				Paper		Unused		Average		Paper
		Interest Rate		Capacity		Issuances		Capacity		Interest Rate		Issuances

PPL Electric			0.42%	$	300	$	168	$	132
LG&E			0.49%		350		259		91		0.42%	$	264
KU			0.48%		350		227		123		0.49%		236
	Total			$	1,000	$	654	$	346			$	500

(LKE)

See Note 11 for discussion of intercompany borrowings.

(PPL)

At-The-Market Stock Offering Program

In February 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 three and six months ended June 30, 2015, PPL issued 421,700 shares of common stock under the program at an average price of $33.73 per share, receiving net proceeds of $14 million.

Distributions

In May 2015, PPL declared its quarterly common stock dividend, payable July 1, 2015, at 37.25 cents per share (equivalent to $1.49 per annum). On August 3, 2015, PPL announced that the company is increasing its common stock dividend to 37.75 cents per share on a quarterly basis (equivalent to $1.51 per annum). The increased dividend will be payable on October 1, 2015 to shareowners of record as of September 10, 2015. 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. See Note 8 for information regarding the June 1, 2015 distribution to PPL’s shareowners of a newly formed entity, Holdco, which at closing owned all of the membership interests of PPL Energy Supply and all of the common stock of Talen Energy.