Asset Retirement Obligations

9 Months Ended

Sep. 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		14		13		4		9
	Changes in estimated cash flow or settlement date		221		221		83		138
	Effect of foreign currency exchange rates		(1)
	Obligations settled		(5)		(5)		(4)		(1)
Balance at September 30, 2015		$	565	$	514	$	157	$	357

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

In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $57 million ($36 million at LG&E and $21 million at KU) and $219 million ($81 million at LG&E and $138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of future expected cash flows. An updated engineering study based on the final rule was performedin the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows 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		14		13		4		9
	Changes in estimated cash flow or settlement date		221		221		83		138
	Effect of foreign currency exchange rates		(1)
	Obligations settled		(5)		(5)		(4)		(1)
Balance at September 30, 2015		$	565	$	514	$	157	$	357

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

In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $57 million ($36 million at LG&E and $21 million at KU) and $219 million ($81 million at LG&E and $138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of future expected cash flows. An updated engineering study based on the final rule was performedin the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows 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		14		13		4		9
	Changes in estimated cash flow or settlement date		221		221		83		138
	Effect of foreign currency exchange rates		(1)
	Obligations settled		(5)		(5)		(4)		(1)
Balance at September 30, 2015		$	565	$	514	$	157	$	357

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

In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $57 million ($36 million at LG&E and $21 million at KU) and $219 million ($81 million at LG&E and $138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of future expected cash flows. An updated engineering study based on the final rule was performedin the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows 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		14		13		4		9
	Changes in estimated cash flow or settlement date		221		221		83		138
	Effect of foreign currency exchange rates		(1)
	Obligations settled		(5)		(5)		(4)		(1)
Balance at September 30, 2015		$	565	$	514	$	157	$	357

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

In connection with the final CCR rule, LG&E and KU recorded increases to the existing AROs of $57 million ($36 million at LG&E and $21 million at KU) and $219 million ($81 million at LG&E and $138 million at KU) during the three and nine months ended September 30, 2015 due to revisions in the timing and amounts of future expected cash flows. An updated engineering study based on the final rule was performedin the third quarter providing further clarity on the projected CCR closure costs and resulted in a revision to the estimate recorded in June. Further increases to AROs or changes to current capital plans or to operating costs may be required as estimates of future cash flows 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.