Asset Retirement Obligations

6 Months Ended

Jun. 30, 2015

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations
(PPL, LKE, LG&E and KU)
The changes in the carrying amounts of AROs were as follows.
		PPL		LKE		LG&E		KU
Balance at December 31, 2014		$	336	$	285	$	74	$	211
	Accretion		8		7		2		5
	Changes in estimated cash flow or settlement date		163		163		46		117
	Effect of foreign currency exchange rates		(2)
	Obligations settled		(2)		(2)		(2)
Balance at June 30, 2015		$	503	$	453	$	120	$	333

Substantially all of the ARO balances are classified as noncurrent at June 30, 2015 and December 31, 2014.

In connection with the final CCR rule, LG&E and KU recorded increases of $162 million ($45 million at LG&E and $117 million at KU) to the existing AROs during the second quarter of 2015. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule.

LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact.

LG And E And KU Energy LLC [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations
(PPL, LKE, LG&E and KU)
The changes in the carrying amounts of AROs were as follows.
		PPL		LKE		LG&E		KU
Balance at December 31, 2014		$	336	$	285	$	74	$	211
	Accretion		8		7		2		5
	Changes in estimated cash flow or settlement date		163		163		46		117
	Effect of foreign currency exchange rates		(2)
	Obligations settled		(2)		(2)		(2)
Balance at June 30, 2015		$	503	$	453	$	120	$	333

Substantially all of the ARO balances are classified as noncurrent at June 30, 2015 and December 31, 2014.

In connection with the final CCR rule, LG&E and KU recorded increases of $162 million ($45 million at LG&E and $117 million at KU) to the existing AROs during the second quarter of 2015. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule.

LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact.

Louisville Gas And Electric Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations
(PPL, LKE, LG&E and KU)
The changes in the carrying amounts of AROs were as follows.
		PPL		LKE		LG&E		KU
Balance at December 31, 2014		$	336	$	285	$	74	$	211
	Accretion		8		7		2		5
	Changes in estimated cash flow or settlement date		163		163		46		117
	Effect of foreign currency exchange rates		(2)
	Obligations settled		(2)		(2)		(2)
Balance at June 30, 2015		$	503	$	453	$	120	$	333

Substantially all of the ARO balances are classified as noncurrent at June 30, 2015 and December 31, 2014.

In connection with the final CCR rule, LG&E and KU recorded increases of $162 million ($45 million at LG&E and $117 million at KU) to the existing AROs during the second quarter of 2015. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule.

LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact.

Kentucky Utilities Co [Member]

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

16. Asset Retirement Obligations
(PPL, LKE, LG&E and KU)
The changes in the carrying amounts of AROs were as follows.
		PPL		LKE		LG&E		KU
Balance at December 31, 2014		$	336	$	285	$	74	$	211
	Accretion		8		7		2		5
	Changes in estimated cash flow or settlement date		163		163		46		117
	Effect of foreign currency exchange rates		(2)
	Obligations settled		(2)		(2)		(2)
Balance at June 30, 2015		$	503	$	453	$	120	$	333

Substantially all of the ARO balances are classified as noncurrent at June 30, 2015 and December 31, 2014.

In connection with the final CCR rule, LG&E and KU recorded increases of $162 million ($45 million at LG&E and $117 million at KU) to the existing AROs during the second quarter of 2015. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results and regulatory or legal proceedings. PPL, LKE, LG&E and KU believe relevant costs relating to this rule are subject to rate recovery. See Note 10 for information on the final CCR rule.

LG&E's and KU's accretion and ARO-related depreciation expense are recorded as a regulatory asset, such that there is no net earnings impact.