10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended June 30, 2016
OR
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from _________ to ___________

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number	IRS Employer Identification No.
1-11459	PPL Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-2758192
1-905	PPL Electric Utilities Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151	23-0959590
333-173665	LG&E and KU Energy LLC (Exact name of Registrant as specified in its charter) (Kentucky) 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000	20-0523163
1-2893	Louisville Gas and Electric Company (Exact name of Registrant as specified in its charter) (Kentucky) 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000	61-0264150
1-3464	Kentucky Utilities Company (Exact name of Registrant as specified in its charter) (Kentucky and Virginia) One Quality Street Lexington, KY 40507-1462 (502) 627-2000	61-0247570

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. 

PPL Corporation	Yes  X	No
PPL Electric Utilities Corporation	Yes  X	No
LG&E and KU Energy LLC	Yes  X	No
Louisville Gas and Electric Company	Yes  X	No
Kentucky Utilities Company	Yes  X	No

Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files). 

PPL Corporation	Yes  X	No
PPL Electric Utilities Corporation	Yes  X	No
LG&E and KU Energy LLC	Yes  X	No
Louisville Gas and Electric Company	Yes  X	No
Kentucky Utilities Company	Yes  X	No

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

	Large accelerated filer	Accelerated filer	Non-accelerated filer	Smaller reporting company
PPL Corporation	[ X ]	[     ]	[     ]	[     ]
PPL Electric Utilities Corporation	[     ]	[     ]	[ X ]	[     ]
LG&E and KU Energy LLC	[     ]	[     ]	[ X ]	[     ]
Louisville Gas and Electric Company	[     ]	[     ]	[ X ]	[     ]
Kentucky Utilities Company	[     ]	[     ]	[ X ]	[     ]

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act).

PPL Corporation	Yes	No  X
PPL Electric Utilities Corporation	Yes	No  X
LG&E and KU Energy LLC	Yes	No  X
Louisville Gas and Electric Company	Yes	No  X
Kentucky Utilities Company	Yes	No  X

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

PPL Corporation	Common stock, $0.01 par value, 678,094,068 shares outstanding at August 3, 2016.
PPL Electric Utilities Corporation	Common stock, no par value, 66,368,056 shares outstanding and all held by PPL Corporation at August 3, 2016.
LG&E and KU Energy LLC	PPL Corporation directly holds all of the membership interests in LG&E and KU Energy LLC.
Louisville Gas and Electric Company	Common stock, no par value, 21,294,223 shares outstanding and all held by LG&E and KU Energy LLC at August 3, 2016.
Kentucky Utilities Company	Common stock, no par value, 37,817,878 shares outstanding and all held by LG&E and KU Energy LLC at August 3, 2016.

This document is available free of charge at the Investors section of PPL Corporation's website at www.pplweb.com. However, information on this website does not constitute a part of this Form 10-Q.

PPL CORPORATION

PPL ELECTRIC UTILITIES CORPORATION

LG&E AND KU ENERGY LLC

LOUISVILLE GAS AND ELECTRIC COMPANY

KENTUCKY UTILITIES COMPANY

FORM 10-Q

FOR THE QUARTER ENDED June 30, 2016

Table of Contents

This combined Form 10-Q is separately filed by the following Registrants in their individual capacity: PPL Corporation, PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant, except that information under "Forward-Looking Information" relating to subsidiaries of PPL Corporation is also attributed to PPL Corporation and information relating to the subsidiaries of LG&E and KU Energy LLC is also attributed to LG&E and KU Energy LLC.

Unless otherwise specified, references in this Report, individually, to PPL Corporation, PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company are references to such entities directly or to one or more of their subsidiaries, as the case may be, the financial results of which subsidiaries are consolidated into such Registrants in accordance with GAAP. This presentation has been applied where identification of particular subsidiaries is not material to the matter being disclosed, and to conform narrative disclosures to the presentation of financial information on a consolidated basis.

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GLOSSARY OF TERMS AND ABBREVIATIONS				i
FORWARD-LOOKING INFORMATION				1
PART I.  FINANCIAL INFORMATION
	Item 1.  Financial Statements
		PPL Corporation and Subsidiaries
			Condensed Consolidated Statements of Income (Loss)	3
			Condensed Consolidated Statements of Comprehensive Income (Loss)	4
			Condensed Consolidated Statements of Cash Flows	5
			Condensed Consolidated Balance Sheets	6
			Condensed Consolidated Statements of Equity	8
		PPL Electric Utilities Corporation and Subsidiaries
			Condensed Consolidated Statements of Income	10
			Condensed Consolidated Statements of Cash Flows	11
			Condensed Consolidated Balance Sheets	12
			Condensed Consolidated Statements of Equity	14
		LG&E and KU Energy LLC and Subsidiaries
			Condensed Consolidated Statements of Income	15
			Condensed Consolidated Statements of Comprehensive Income	16
			Condensed Consolidated Statements of Cash Flows	17
			Condensed Consolidated Balance Sheets	18
			Condensed Consolidated Statements of Equity	20
		Louisville Gas and Electric Company
			Condensed Statements of Income	22
			Condensed Statements of Cash Flows	23
			Condensed Balance Sheets	24
			Condensed Statements of Equity	26
		Kentucky Utilities Company
			Condensed Statements of Income	28
			Condensed Statements of Cash Flows	29
			Condensed Balance Sheets	30
			Condensed Statements of Equity	32

	Combined Notes to Condensed Financial Statements (Unaudited)
		1.   Interim Financial Statements		33
		2.   Summary of Significant Accounting Policies		33
		3.   Segment and Related Information		35
		4.   Earnings Per Share		35
		5.   Income Taxes		37
		6.   Utility Rate Regulation		38
		7.   Financing Activities		41
		8.   Acquisitions, Development and Divestitures		44
		9.   Defined Benefits		46
		10. Commitments and Contingencies		48
		11. Related Party Transactions		57
		12. Other Income (Expense) - net		57
		13. Fair Value Measurements		58
		14. Derivative Instruments and Hedging Activities		60
		15. Goodwill and Other Intangible Assets		68
		16. Asset Retirement Obligations		68
		17. Accumulated Other Comprehensive Income (Loss)		69
		18. New Accounting Guidance Pending Adoption		71
	Item 2.  Combined Management's Discussion and Analysis of Financial Condition and Results of Operations
		Overview		72
			Introduction	72
			Business Strategy	74
			Financial and Operational Developments	75
		Results of Operations		76
			PPL Corporation and Subsidiaries - Statement of Income Analysis, Segment Earnings and Margins	77
			PPL Electric Utilities Corporation and Subsidiaries - Statement of Income Analysis, Earnings and Margins	90
			LG&E and KU Energy LLC and Subsidiaries - Statement of Income Analysis, Earnings and Margins	93
			Louisville Gas and Electric Company - Statement of Income Analysis, Earnings and Margins	96
			Kentucky Utilities Company - Statement of Income Analysis, Earnings and Margins	99
		Financial Condition		101
			Liquidity and Capital Resources	102
			Risk Management	108
			Foreign Currency Translation	110
			Related Party Transactions	110
			Acquisitions, Development and Divestitures	110
			Environmental Matters	110
		New Accounting Guidance		110
		Application of Critical Accounting Policies		110
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk			112
	Item 4.  Controls and Procedures			112
PART II.  OTHER INFORMATION
	Item 1. Legal Proceedings			112
	Item 1A. Risk Factors			112
	Item 4. Mine Safety Disclosures			113
	Item 6. Exhibits			113

SIGNATURES	115
COMPUTATIONS OF RATIO OF EARNINGS TO FIXED CHARGES
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATES OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

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GLOSSARY OF TERMS AND ABBREVIATIONS

PPL Corporation and its subsidiaries

KU - Kentucky Utilities Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky.

LG&E - Louisville Gas and Electric Company, a public utility subsidiary of LKE engaged in the regulated generation, transmission, distribution and sale of electricity and the distribution and sale of natural gas in Kentucky.

LKE - LG&E and KU Energy LLC, a subsidiary of PPL and the parent of LG&E, KU and other subsidiaries.

LKS - LG&E and KU Services Company, a subsidiary of LKE that provides services to LKE and its subsidiaries.

PPL - PPL Corporation, the parent holding company of PPL Electric, PPL Energy Funding, PPL Capital Funding, LKE and other subsidiaries.

PPL Capital Funding - PPL Capital Funding, Inc., a financing subsidiary of PPL that provides financing for the operations of PPL and certain subsidiaries. Debt issued by PPL Capital Funding is guaranteed as to payment by PPL.

PPL Electric - PPL Electric Utilities Corporation, a public utility subsidiary of PPL engaged in the regulated transmission and distribution of electricity in its Pennsylvania service area and that provides electricity supply to its retail customers in this area as a PLR.

PPL Energy Funding - PPL Energy Funding Corporation, a subsidiary of PPL and the parent holding company of PPL Global and other subsidiaries.

PPL EU Services - PPL EU Services Corporation, a subsidiary of PPL that, beginning in 2015, provides support services and corporate functions such as financial, supply chain, human resources and facilities management services primarily to PPL Electric and its affiliates.

PPL Global - PPL Global, LLC, a subsidiary of PPL Energy Funding that, primarily through its subsidiaries, owns and operates WPD, PPL's regulated electricity distribution businesses in the U.K.

PPL Services - PPL Services Corporation, a subsidiary of PPL that provides administrative, management and support services to PPL and its subsidiaries.

PPL WPD Limited - an indirect U.K. subsidiary of PPL Global and parent to WPD plc.

WPD - refers to PPL WPD Limited and its subsidiaries.

WPD (East Midlands) - Western Power Distribution (East Midlands) plc, a British regional electricity distribution utility company.

WPD plc - Western Power Distribution plc, a direct U.K. subsidiary of PPL WPD Limited. Its principal indirectly owned subsidiaries are WPD (East Midlands), WPD (South Wales), WPD (South West) and WPD (West Midlands).

WPD Midlands - refers to WPD (East Midlands) and WPD (West Midlands), collectively.

WPD (South Wales) - Western Power Distribution (South Wales) plc, a British regional electricity distribution utility company.

WPD (South West) - Western Power Distribution (South West) plc, a British regional electricity distribution utility company.

WPD (West Midlands) - Western Power Distribution (West Midlands) plc, a British regional electricity distribution utility company.

WKE - Western Kentucky Energy Corp., a subsidiary of LKE that leased certain non-utility generating plants in western Kentucky until July 2009.

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Other terms and abbreviations

£ - British pound sterling.

2015 Form 10-K - Annual Report to the SEC on Form 10-K for the year ended December 31, 2015.

2001 Mortgage Indenture - PPL Electric's Indenture, dated as of August 1, 2001, to the Bank of New York Mellon (as successor to JPMorgan Chase Bank), as trustee, as supplemented.

Act 11 - Act 11 of 2012 that became effective on April 16, 2012. The Pennsylvania legislation authorizes the PUC to approve two specific ratemaking mechanisms: the use of a fully projected future test year in base rate proceedings and, subject to certain conditions, a DSIC.

Act 129 - Act 129 of 2008 that became effective in October 2008. The law amends the Pennsylvania Public Utility Code and creates an energy efficiency and conservation program and smart metering technology requirements, adopts new PLR electricity supply procurement rules, provides remedies for market misconduct and changes to the Alternative Energy Portfolio Standard (AEPS).

AOCI - accumulated other comprehensive income or loss.

ARO - asset retirement obligation.

ATM Program - At-the-Market stock offering program.

BSER - Best System of Emission Reduction. The degree of emission reduction that EPA determines has been adequately demonstrated when taking into account the cost of achieving such reduction and any non-air quality health and environmental impact and energy requirements. 

CCR(s) - Coal Combustion Residual(s). CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes.

Clean Air Act - federal legislation enacted to address certain environmental issues related to air emissions, including acid rain, ozone and toxic air emissions.

Clean Water Act - federal legislation enacted to address certain environmental issues relating to water quality including effluent discharges, cooling water intake, and dredge and fill activities.

CPCN - Certificate of Public Convenience and Necessity. Authority granted by the KPSC pursuant to Kentucky Revised Statute 278.020 to provide utility service to or for the public or the construction of certain plant, equipment, property or facility for furnishing of utility service to the public.

Customer Choice Act - the Pennsylvania Electricity Generation Customer Choice and Competition Act, legislation enacted to restructure the state's electric utility industry to create retail access to a competitive market for generation of electricity.

DNO - Distribution Network Operator in the U.K.

DPCR4 - Distribution Price Control Review 4, the U.K. five-year rate review period applicable to WPD that commenced April 1, 2005.

DPCR5 - Distribution Price Control Review 5, the U.K. five-year rate review period applicable to WPD that commenced April 1, 2010.

DRIP - PPL Amended and Restated Dividend Reinvestment and Direct Stock Purchase Plan.

DSIC - the Distribution System Improvement Charge authorized under Act 11, which is an alternative ratemaking mechanism providing more-timely cost recovery of qualifying distribution system capital expenditures.

DSM- Demand Side Management. Pursuant to Kentucky Revised Statute 278.285, the KPSC may determine the reasonableness of DSM plans proposed by any utility under its jurisdiction. Proposed DSM mechanisms may seek full recovery of costs and revenues lost by implementing DSM programs and/or incentives designed to provide financial rewards to the

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utility for implementing cost-effective DSM programs. The cost of such programs shall be assigned only to the class or classes of customers which benefit from the programs.

Earnings from Ongoing Operations - A non-GAAP financial measure of earnings adjusted for the impact of special items and used in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A).

ECR - Environmental Cost Recovery. Pursuant to Kentucky Revised Statute 278.183, Kentucky electric utilities are entitled to the current recovery of costs of complying with the Clean Air Act, as amended, and those federal, state or local environmental requirements that apply to coal combustion wastes and by-products from the production of energy from coal.

ELG(s)- Effluent Limitation Guidelines, regulations promulgated by the EPA.

EPA - Environmental Protection Agency, a U.S. government agency.

FERC - Federal Energy Regulatory Commission, the U.S. federal agency that regulates, among other things, interstate transmission and wholesale sales of electricity, hydroelectric power projects and related matters.

GAAP - Generally Accepted Accounting Principles in the U.S.

GBP -British pound sterling.

GLT - Gas Line Tracker. The KPSC approved mechanism for LG&E's recovery of costs associated with gas service lines, gas risers, leak mitigation, and gas main replacements. Rate recovery became effective on January 1, 2013.

KPSC - Kentucky Public Service Commission, the state agency that has jurisdiction over the regulation of rates and service of utilities in Kentucky.

LCIDA - Lehigh County Industrial Development Authority.

LIBOR - London Interbank Offered Rate.

Margins - A non-GAAP financial measure of performance used in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" (MD&A).

MATS- Mercury and Air Toxics Standards, regulations promulgated by the EPA.

Moody's - Moody's Investors Service, Inc., a credit rating agency.

MW - megawatt, one thousand kilowatts.

NAAQS - National Ambient Air Quality Standards periodically adopted pursuant to the Clean Air Act.

NERC - North American Electric Reliability Corporation.

NGCC - Natural gas-fired combined-cycle generating plant.

NPNS - the normal purchases and normal sales exception as permitted by derivative accounting rules. Derivatives that qualify for this exception may receive accrual accounting treatment.

NSR - The new source review provisions of the Clean Air Act that impose stringent emission control requirements on new and modified sources of air emissions that result in emission increases beyond thresholds allowed by the Clean Air Act.

OCI - other comprehensive income or loss.

Ofgem - Office of Gas and Electricity Markets, the British agency that regulates transmission, distribution and wholesale sales of electricity and related matters.

OVEC - Ohio Valley Electric Corporation, located in Piketon, Ohio, an entity in which LKE indirectly owns an 8.13% interest (consists of LG&E's 5.63% and KU's 2.50% interests), which is accounted for as a cost-method investment. OVEC owns and

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operates two coal-fired power plants, the Kyger Creek plant in Ohio and the Clifty Creek plant in Indiana, with combined summer rating capacities of 2,120 MW.

PLR - Provider of Last Resort, the role of PPL Electric in providing default electricity supply within its delivery area to retail customers who have not chosen to select an alternative electricity supplier under the Customer Choice Act.

PP&E - property, plant and equipment.

PPL EnergyPlus - prior to the June 1, 2015 spinoff of PPL Energy Supply, PPL EnergyPlus, LLC, a subsidiary of PPL Energy Supply that marketed and traded wholesale and retail electricity and gas, and supplied energy and energy services in competitive markets.

PPL Energy Supply - prior to the June 1, 2015 spinoff, PPL Energy Supply, LLC, a subsidiary of PPL Energy Funding and the parent company of PPL EnergyPlus and other subsidiaries.

PUC - Pennsylvania Public Utility Commission, the state agency that regulates certain ratemaking, services, accounting and operations of Pennsylvania utilities.

RAV - regulatory asset value. This term, used within the U.K. regulatory environment, is also commonly known as RAB or regulatory asset base. RAV is based on historical investment costs at time of privatization, plus subsequent allowed additions less annual regulatory depreciation, and represents the value on which DNOs earn a return in accordance with the regulatory cost of capital. RAV is indexed to Retail Price Index (RPI) in order to allow for the effects of inflation. Since the beginning of DPCR5 in April 2010, RAV additions have been based on a percentage of annual total expenditures, which have continued from April 2015 under RIIO-ED1. RAV is intended to represent expenditures that have a long-term benefit to WPD (similar to capital projects for the U.S. regulated businesses that are generally included in rate base).

RCRA - Resource Conservation and Recovery Act of 1976.

Registrant(s) - refers to the Registrants named on the cover of this Report (each a "Registrant" and collectively, the "Registrants").

Regulation S-X - SEC regulation governing the form and content of and requirements for financial statements required to be filed pursuant to the federal securities laws.

RFC - ReliabilityFirst Corporation, one of eight regional entities with delegated authority from NERC that work to safeguard the reliability of the bulk power systems throughout North America.

RIIO-ED1 - RIIO represents "Revenues = Incentive + Innovation + Outputs." RIIO-ED1 refers to the initial eight-year rate review period applicable to WPD which commenced April 1, 2015.

Riverstone - Riverstone Holdings LLC, a Delaware limited liability company and ultimate parent company of the entities that own the competitive power generation business contributed to Talen Energy other than the competitive power generation business contributed by virtue of the spinoff of a newly formed parent of PPL Energy Supply.

RPI - Retail Price Index, is a measure of inflation in the United Kingdom published monthly by the Office for National Statistics.

SCRs - selective catalytic reduction, a pollution control process for the removal of nitrogen oxide from exhaust gas.

S&P - Standard & Poor's Ratings Services, a credit rating agency.

Sarbanes-Oxley- Sarbanes-Oxley Act of 2002, which sets requirements for management's assessment of internal controls for financial reporting. It also requires an independent auditor to make its own assessment.

Scrubber - an air pollution control device that can remove particulates and/or gases (primarily sulfur dioxide) from exhaust gases.

SEC - the U.S. Securities and Exchange Commission, a U.S. government agency primarily responsible to protect investors and maintain the integrity of the securities markets.

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SERC - SERC Reliability Corporation, one of eight regional entities with delegated authority from NERC that work to safeguard the reliability of the bulk power systems throughout North America.

Smart meter - an electric meter that utilizes smart metering technology.

Smart metering technology - technology that can measure, among other things, time of electricity consumption to permit offering rate incentives for usage during lower cost or demand intervals. The use of this technology also has the potential to strengthen network reliability.

Superfund - federal environmental statute that addresses remediation of contaminated sites; states also have similar statutes.

Talen Energy - Talen Energy Corporation, the Delaware corporation formed to be the publicly traded company and owner of the competitive generation assets of PPL Energy Supply and certain affiliates of Riverstone.

Talen Energy Marketing - Talen Energy Marketing, LLC, PPL EnergyPlus' new name subsequent to the spinoff of PPL Energy Supply.

Treasury Stock Method - A method applied to calculate diluted EPS that assumes any proceeds that could be obtained upon exercise of options and warrants (and their equivalents) would be used to purchase common stock at the average market price during the relevant period.

VSCC - Virginia State Corporation Commission, the state agency that has jurisdiction over the regulation of Virginia corporations, including utilities.

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Forward-looking Information

Statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact are "forward-looking statements" within the meaning of the federal securities laws. Although the Registrants believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct. Forward-looking statements are subject to many risks and uncertainties, and actual results may differ materially from the results discussed in forward-looking statements. In addition to the specific factors discussed in each Registrant's 2015 Form 10-K and in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, the following are among the important factors that could cause actual results to differ materially from the forward-looking statements.

• challenges by intervenors to the return on equity granted in existing rate structures;

• fuel supply and cost;

• continuing ability to recover fuel costs and environmental expenditures in a timely manner at LG&E and KU, and natural gas supply costs at LG&E;

• weather conditions affecting transmission and distribution operations, and customer energy use;

• availability and operating costs of existing generation facilities;

• the duration of and cost associated with outages at our generating facilities;

• generation, transmission and distribution system conditions, and operating costs;

• expansion of alternative and distributed sources of electricity generation and storage;

• collective labor bargaining negotiations;

• laws or regulations to reduce emissions of "greenhouse" gases or physical effects of climate change;

• the outcome of litigation against the Registrants and their subsidiaries;

• potential effects of threatened or actual terrorism, war or other hostilities, cyber-based intrusions or natural disasters;

• the commitments and liabilities of the Registrants and their subsidiaries;

• the effectiveness of our risk management programs, including foreign currency and interest rate hedging;

• our ability to attract and retain qualified employees;

• volatility in demand for electricity;

• market prices of commodity inputs for ongoing capital expenditures or key operational needs;

• capital market conditions, including the availability of capital or credit, changes in interest rates and certain economic indices, and decisions regarding capital structure;

• stock price performance of PPL;

• defaults by counterparties or suppliers for energy, capacity, coal, natural gas or key commodities, goods or services;

• volatility in the fair value of debt and equity securities and its impact on the value of assets in defined benefit plans, and the potential cash funding requirements if fair value declines;

• interest rates and their effect on pension and retiree medical liabilities and interest payable on certain debt securities;

• volatility in or the impact of other changes in financial markets and economic conditions;

• new accounting requirements or new interpretations or applications of existing requirements;

• changes in securities and credit ratings;

• changes in foreign currency exchange rates for British pound sterling;

• the effect of changes in RPI on WPD's revenues and index linked debt;

• current and future environmental conditions, regulations and other requirements and the related costs of compliance, including environmental capital expenditures, emission allowance costs and other expenses;

• changes in political, regulatory or economic conditions in states, regions or countries where the Registrants or their subsidiaries conduct business;

• the effect of the June 23, 2016 referendum in the U.K. to withdraw from the European Union;

• receipt of necessary governmental permits, approvals and rate relief;

• new state, federal or foreign legislation or regulatory developments;

• the outcome of any rate cases or other cost recovery or revenue filings by PPL Electric, LG&E, KU or WPD;

• the achievement of performance targets set by Ofgem;

• the impact of any state, federal or foreign investigations applicable to the Registrants and their subsidiaries and the energy industry;

• the effect of any business or industry restructuring;

• development of new projects, markets and technologies;

• performance of new ventures; and

• business dispositions or acquisitions and our ability to realize expected benefits from such business transactions.

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Any such forward-looking statements should be considered in light of such important factors and in conjunction with other documents of the Registrants on file with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for the Registrants to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and the Registrants undertake no obligation to update the information contained in such statement to reflect subsequent developments or information.

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PART I.  FINANCIAL INFORMATION

ITEM 1. Financial Statements

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, except share data)

	Three Months Ended June 30,					Six Months Ended June 30,
	2016		2015			2016		2015
Operating Revenues	$	1,785	$	1,781		$	3,796	$	4,011
Operating Expenses
Operation
Fuel	183		214			380		467
Energy purchases	147		170			380		499
Other operation and maintenance	425		467			875		923
Depreciation	231		216			460		432
Taxes, other than income	74		76			153		162
Total Operating Expenses	1,060		1,143			2,248		2,483
Operating Income	725		638			1,548		1,528
Other Income (Expense) - net	174		(102		)	235		(14		)
Interest Expense	224		215			448		424
Income from Continuing Operations Before Income Taxes	675		321			1,335		1,090
Income Taxes	192		71			371		288
Income from Continuing Operations After Income Taxes	483		250			964		802
Income (Loss) from Discontinued Operations (net of income taxes) (Note 8)	—		(1,007		)	—		(912		)
Net Income (Loss)	$	483	$	(757	)	$	964	$	(110	)
Earnings Per Share of Common Stock:
Income from Continuing Operations After Income Taxes:
Basic	$	0.71	$	0.37		$	1.42	$	1.20
Diluted	$	0.71	$	0.37		$	1.41	$	1.19
Net Income (Loss):
Basic	$	0.71	$	(1.13	)	$	1.42	$	(0.17	)
Diluted	$	0.71	$	(1.13	)	$	1.41	$	(0.17	)
Dividends Declared Per Share of Common Stock	$	0.38	$	0.3725		$	0.76	$	0.7450
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic	677,145		668,415			676,293		667,698
Diluted	680,729		671,286			679,773		670,013

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income (loss)	$	483		$	(757	)	$	964		$	(110	)
Other comprehensive income (loss):
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Foreign currency translation adjustments, net of tax of $0, $6, ($2), $1	268			(83		)	(196		)	(149		)
Available-for-sale securities, net of tax of $0, ($3), $0, ($9)	—			2			—			7
Qualifying derivatives, net of tax of $22, ($11), $7, ($7)	(85		)	21			(5		)	27
Defined benefit plans:
Prior service costs, net of tax of $0, $4, $0, $4	—			(6		)	—			(6		)
Net actuarial gain (loss), net of tax of ($1), ($36), ($1), ($36)	2			53			2			52
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Available-for-sale securities, net of tax of $0, $1, $0, $2	—			(1		)	—			(2		)
Qualifying derivatives, net of tax of ($21), ($24), ($2), ($20)	85			27			7			10
Equity investees' other comprehensive (income) loss, net of tax of $0, $0, $0, $1	(1		)	—			(1		)	(1		)
Defined benefit plans:
Prior service costs, net of tax of $0, $0, $0, $0	1			—			1			—
Net actuarial loss, net of tax of ($8), ($12), ($17), ($25)	32			38			63			76
Total other comprehensive income (loss)	302			51			(129		)	14
Comprehensive income (loss)	$	785		$	(706	)	$	835		$	(96	)

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income (loss)	$	964		$	(110	)
(Income) Loss from discontinued operations (net of income taxes)	—			912
Income from continuing operations (net of income taxes)	964			802
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation	460			432
Amortization	37			27
Defined benefit plans - expense (income)	(24		)	32
Deferred income taxes and investment tax credits	320			256
Unrealized (gains) losses on derivatives, and other hedging activities	(192		)	62
Stock-based compensation expense	18			38
Other	(11		)	11
Change in current assets and current liabilities
Accounts receivable	16			(74		)
Accounts payable	(39		)	(83		)
Unbilled revenues	(2		)	79
Prepayments	(66		)	(61		)
Counterparty collateral	76			—
Taxes payable	22			(129		)
Accrued interest	(85		)	(87		)
Other current liabilities	(47		)	(91		)
Other	—			13
Other operating activities
Defined benefit plans - funding	(224		)	(289		)
Other assets	2			(29		)
Other liabilities	(55		)	61
Net cash provided by operating activities - continuing operations	1,170			970
Net cash provided by operating activities - discontinued operations	—			343
Net cash provided by operating activities	1,170			1,313
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(1,346		)	(1,679		)
Expenditures for intangible assets	(14		)	(24		)
Proceeds from the sale of other investments	—			135
Other investing activities	13			(7		)
Net cash provided by (used in) investing activities - continuing operations	(1,347		)	(1,575		)
Net cash provided by (used in) investing activities - discontinued operations	—			(149		)
Net cash provided by (used in) investing activities	(1,347		)	(1,724		)
Cash Flows from Financing Activities
Issuance of long-term debt	1,020			88
Retirement of long-term debt	(684		)	—
Settlement of cross-currency swaps	46			—
Issuance of common stock	76			83
Payment of common stock dividends	(513		)	(500		)
Net increase (decrease) in short-term debt	(66		)	276
Other financing activities	(31		)	(18		)
Net cash provided by (used in) financing activities - continuing operations	(152		)	(71		)
Net cash provided by (used in) financing activities - discontinued operations	—			(546		)
Net cash distributions to parent from discontinued operations	—			132
Net cash provided by (used in) financing activities	(152		)	(485		)
Effect of Exchange Rates on Cash and Cash Equivalents	(15		)	(9		)
Net (Increase) Decrease in Cash and Cash Equivalents included in Discontinued Operations	—			352
Net Increase (Decrease) in Cash and Cash Equivalents	(344		)	(553		)
Cash and Cash Equivalents at Beginning of Period	836			1,399
Cash and Cash Equivalents at End of Period	$	492		$	846

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

5

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	492	$	836
Accounts receivable (less reserve: 2016, $48; 2015, $41)
Customer	667		673
Other	44		59
Unbilled revenues	447		453
Fuel, materials and supplies	336		357
Prepayments	131		66
Price risk management assets	200		139
Other current assets	43		63
Total Current Assets	2,360		2,646
Property, Plant and Equipment
Regulated utility plant	35,226		34,399
Less:  accumulated depreciation - regulated utility plant	5,966		5,683
Regulated utility plant, net	29,260		28,716
Non-regulated property, plant and equipment	491		516
Less:  accumulated depreciation - non-regulated property, plant and equipment	157		165
Non-regulated property, plant and equipment, net	334		351
Construction work in progress	1,200		1,315
Property, Plant and Equipment, net	30,794		30,382
Other Noncurrent Assets
Regulatory assets	1,762		1,733
Goodwill	3,455		3,550
Other intangibles	708		679
Price risk management assets	285		156
Other noncurrent assets	164		155
Total Other Noncurrent Assets	6,374		6,273
Total Assets	$	39,528	$	39,301

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

6

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016			December 31, 2015
Liabilities and Equity
Current Liabilities
Short-term debt	$	856		$	916
Long-term debt due within one year	219			485
Accounts payable	726			812
Taxes	106			85
Interest	211			303
Dividends	258			255
Customer deposits	326			326
Regulatory liabilities	99			145
Other current liabilities	607			549
Total Current Liabilities	3,408			3,876
Long-term Debt	18,949			18,563
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	3,749			3,440
Investment tax credits	134			128
Accrued pension obligations	1,074			1,405
Asset retirement obligations	513			536
Regulatory liabilities	935			945
Other deferred credits and noncurrent liabilities	441			489
Total Deferred Credits and Other Noncurrent Liabilities	6,846			6,943
Commitments and Contingent Liabilities (Notes 6 and 10)
Equity
Common stock - $0.01 par value (a)	7			7
Additional paid-in capital	9,766			9,687
Earnings reinvested	3,409			2,953
Accumulated other comprehensive loss	(2,857		)	(2,728		)
Total Equity	10,325			9,919
Total Liabilities and Equity	$	39,528		$	39,301

(a) 780,000 shares authorized; 677,549 and 673,857 shares issued and outstanding at June 30, 2016 and December 31, 2015.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

7

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)  

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital			Earnings reinvested			Accumulated other comprehensive loss			Total
December 31, 2015	673,857	$	7	$	9,687		$	2,953		$	(2,728	)	$	9,919
Common stock issued	3,692			109									109
Stock-based compensation				(30		)							(30		)
Net income							964						964
Dividends and dividend equivalents							(515		)				(515		)
Other comprehensive income (loss)										(129		)	(129		)
Adoption of stock-based compensation guidance cumulative effect adjustment (Note 2)							7						7
June 30, 2016	677,549	$	7	$	9,766		$	3,409		$	(2,857	)	$	10,325
December 31, 2014	665,849	$	7	$	9,433		$	6,462		$	(2,274	)	$	13,628
Common stock issued	3,665			111									111
Stock-based compensation				20									20
Net income (loss)							(110		)				(110		)
Dividends and dividend equivalents							(498		)				(498		)
Distribution of PPL Energy Supply (Note 8)							(3,200		)	(24		)	(3,224		)
Other comprehensive income (loss)										14			14
June 30, 2015	669,514	$	7	$	9,564		$	2,654		$	(2,284	)	$	9,941

(a) Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

8

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9

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Operating Revenues	$	495	$	476	$	1,080	$	1,106
Operating Expenses
Operation
Energy purchases	118		138		285		365
Energy purchases from affiliate	—		5		—		14
Other operation and maintenance	137		140		287		273
Depreciation	62		52		121		103
Taxes, other than income	24		25		53		60
Total Operating Expenses	341		360		746		815
Operating Income	154		116		334		291
Other Income (Expense) - net	5		2		8		4
Interest Expense	32		33		65		64
Income Before Income Taxes	127		85		277		231
Income Taxes	48		36		104		95
Net Income (a)	$	79	$	49	$	173	$	136

(a) Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	173		$	136
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	121			103
Amortization	15			14
Defined benefit plans - expense	7			8
Deferred income taxes and investment tax credits	107			39
Other	(10		)	(6		)
Change in current assets and current liabilities
Accounts receivable	(6		)	(24		)
Accounts payable	(26		)	(93		)
Unbilled revenue	3			25
Prepayments	3			(80		)
Regulatory assets and liabilities	(40		)	36
Taxes payable	(16		)	(55		)
Other	(6		)	(14		)
Other operating activities
Defined benefit plans - funding	—			(33		)
Other assets	11			(2		)
Other liabilities	(8		)	22
Net cash provided by operating activities	328			76
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(424		)	(480		)
Other investing activities	(3		)	(3		)
Net cash provided by (used in) investing activities	(427		)	(483		)
Cash Flows from Financing Activities
Issuance of long-term debt	224			—
Retirement of long-term debt	(224		)	—
Contributions from parent	200			160
Payment of common stock dividends to parent	(117		)	(107		)
Net increase (decrease) in short-term debt	6			168
Other financing activities	(2		)	—
Net cash provided by (used in) financing activities	87			221
Net Increase (Decrease) in Cash and Cash Equivalents	(12		)	(186		)
Cash and Cash Equivalents at Beginning of Period	47			214
Cash and Cash Equivalents at End of Period	$	35		$	28

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

11

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	35	$	47
Accounts receivable (less reserve: 2016, $23; 2015, $16)
Customer	286		286
Other	13		10
Accounts receivable from affiliates	3		—
Unbilled revenues	88		91
Materials and supplies	30		34
Prepayments	63		66
Other current assets	18		21
Total Current Assets	536		555
Property, Plant and Equipment
Regulated utility plant	9,110		8,734
Less: accumulated depreciation - regulated utility plant	2,656		2,573
Regulated utility plant, net	6,454		6,161
Construction work in progress	577		530
Property, Plant and Equipment, net	7,031		6,691
Other Noncurrent Assets
Regulatory assets	995		1,006
Intangibles	246		244
Other noncurrent assets	17		15
Total Other Noncurrent Assets	1,258		1,265
Total Assets	$	8,825	$	8,511

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

12

CONDENSED CONSOLIDATED BALANCE SHEETS

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Liabilities and Equity
Current Liabilities
Short-term debt	$	6	$	—
Accounts payable	295		288
Accounts payable to affiliates	35		35
Taxes	8		24
Interest	34		37
Regulatory liabilities	74		113
Customer deposits	22		31
Other current liabilities	77		77
Total Current Liabilities	551		605
Long-term Debt	2,830		2,828
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,776		1,663
Accrued pension obligations	184		183
Regulatory liabilities	19		22
Other deferred credits and noncurrent liabilities	89		91
Total Deferred Credits and Other Noncurrent Liabilities	2,068		1,959
Commitments and Contingent Liabilities (Notes 6 and 10)
Equity
Common stock - no par value (a)	364		364
Additional paid-in capital	2,134		1,934
Earnings reinvested	878		821
Total Equity	3,376		3,119
Total Liabilities and Equity	$	8,825	$	8,511

(a) 170,000 shares authorized; 66,368 shares issued and outstanding at June 30, 2016 and December 31, 2015.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

13

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

PPL Electric Utilities Corporation and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested			Total
December 31, 2015	66,368	$	364	$	1,934	$	821		$	3,119
Net income						173			173
Capital contributions from PPL				200					200
Dividends declared on common stock						(116		)	(116		)
June 30, 2016	66,368	$	364	$	2,134	$	878		$	3,376
December 31, 2014	66,368	$	364	$	1,603	$	750		$	2,717
Net income						136			136
Capital contributions from PPL (b)				207					207
Dividends declared on common stock						(107		)	(107		)
June 30, 2015	66,368	$	364	$	1,810	$	779		$	2,953

(a) Shares in thousands. All common shares of PPL Electric stock are owned by PPL.

(b) Includes non-cash contributions of $47 million.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

14

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Operating Revenues	$	721		$	714		$	1,547		$	1,613
Operating Expenses
Operation
Fuel	182			214			380			467
Energy purchases	28			28			94			120
Other operation and maintenance	204			214			406			423
Depreciation	100			94			199			189
Taxes, other than income	15			15			30			29
Total Operating Expenses	529			565			1,109			1,228
Operating Income	192			149			438			385
Other Income (Expense) - net	(5		)	(1		)	(6		)	(2		)
Interest Expense	48			42			97			84
Interest Expense with Affiliate	4			1			8			1
Income Before Income Taxes	135			105			327			298
Income Taxes	51			45			123			121
Net Income	$	84		$	60		$	204		$	177

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

15

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income	$	84		$	60		$	204		$	177
Other comprehensive income (loss):
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Defined benefit plans:
Net actuarial gain (loss), net of tax of ($1), $5, ($1), $5	1			(8		)	1			(8		)
Reclassifications from AOCI - (gains) losses, net of tax expense (benefit):
Equity investees' other comprehensive (income) loss, net of tax of $0, $0, $0, $1	(1		)	—			(1		)	(1		)
Defined benefit plans:
Prior service costs, net of tax of $0, $0, $0, $0	1			1			1			1
Net actuarial loss, net of tax of ($1), ($1), ($1), ($1)	1			—			2			1
Total other comprehensive income (loss)	2			(7		)	3			(7		)
Comprehensive income (loss)	$	86		$	53		$	207		$	170

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

16

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	204		$	177
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	199			189
Amortization	15			12
Defined benefit plans - expense	13			21
Deferred income taxes and investment tax credits	121			145
Other	(1		)	23
Change in current assets and current liabilities
Accounts receivable	5			13
Accounts payable	28			10
Unbilled revenues	(14		)	12
Fuel, materials and supplies	20			54
Income tax receivable	4			136
Taxes payable	(13		)	23
Accrued interest	(1		)	—
Other	(22		)	(30		)
Other operating activities
Defined benefit plans - funding	(45		)	(63		)
Expenditures for asset retirement obligations	(8		)	(3		)
Other assets	1			7
Other liabilities	—			(23		)
Net cash provided by operating activities	506			703
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(439		)	(630		)
Other investing activities	—			4
Net cash provided by (used in) investing activities	(439		)	(626		)
Cash Flows from Financing Activities
Net increase (decrease) in notes payable with affiliate	123			18
Net increase (decrease) in short-term debt	(126		)	(14		)
Debt issuance and credit facility costs	(1		)	—
Distributions to member	(114		)	(109		)
Contributions from member	37			20
Net cash provided by (used in) financing activities	(81		)	(85		)
Net Increase (Decrease) in Cash and Cash Equivalents	(14		)	(8		)
Cash and Cash Equivalents at Beginning of Period	30			21
Cash and Cash Equivalents at End of Period	$	16		$	13

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

17

CONDENSED CONSOLIDATED BALANCE SHEETS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	16	$	30
Accounts receivable (less reserve: 2016, $24; 2015, $23)
Customer	201		209
Other	15		17
Unbilled revenues	161		147
Fuel, materials and supplies	279		298
Prepayments	30		23
Regulatory assets	22		35
Other current assets	1		6
Total Current Assets	725		765
Property, Plant and Equipment
Regulated utility plant	12,414		11,906
Less: accumulated depreciation - regulated utility plant	1,301		1,163
Regulated utility plant, net	11,113		10,743
Construction work in progress	428		660
Property, Plant and Equipment, net	11,541		11,403
Other Noncurrent Assets
Regulatory assets	767		727
Goodwill	996		996
Other intangibles	110		123
Other noncurrent assets	81		76
Total Other Noncurrent Assets	1,954		1,922
Total Assets	$	14,220	$	14,090

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

18

CONDENSED CONSOLIDATED BALANCE SHEETS

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	June 30, 2016		December 31, 2015
Liabilities and Equity
Current Liabilities
Short-term debt	$	139	$	265
Long-term debt due within one year	219		25
Notes payable with affiliate	176		54
Accounts payable	236		266
Accounts payable to affiliates	5		5
Customer deposits	54		52
Taxes	33		46
Price risk management liabilities	6		5
Regulatory liabilities	25		32
Interest	31		32
Asset retirement obligations	76		50
Other current liabilities	104		135
Total Current Liabilities	1,104		967
Long-term Debt
Long-term debt	4,470		4,663
Long-term debt to affiliate	400		400
Total Long-term Debt	4,870		5,063
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,580		1,463
Investment tax credits	133		128
Accrued pension obligations	276		296
Asset retirement obligations	463		485
Regulatory liabilities	916		923
Price risk management liabilities	50		42
Other deferred credits and noncurrent liabilities	181		206
Total Deferred Credits and Other Noncurrent Liabilities	3,599		3,543
Commitments and Contingent Liabilities (Notes 6 and 10)
Member's equity	4,647		4,517
Total Liabilities and Equity	$	14,220	$	14,090

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

19

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

LG&E and KU Energy LLC and Subsidiaries

(Unaudited)

(Millions of Dollars)

	Member's Equity
December 31, 2015	$	4,517
Net income	204
Contributions from member	37
Distributions to member	(114		)
Other comprehensive income (loss)	3
June 30, 2016	$	4,647
December 31, 2014	$	4,248
Net income	177
Contributions from member	20
Distributions to member	(109		)
Other comprehensive income (loss)	(7		)
June 30, 2015	$	4,329

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

20

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21

CONDENSED STATEMENTS OF INCOME

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Operating Revenues
Retail and wholesale	$	317		$	323		$	692		$	740
Electric revenue from affiliate	6			8			17			30
Total Operating Revenues	323			331			709			770
Operating Expenses
Operation
Fuel	69			82			147			185
Energy purchases	23			23			85			111
Energy purchases from affiliate	3			5			5			8
Other operation and maintenance	92			103			179			199
Depreciation	42			40			83			82
Taxes, other than income	7			7			15			14
Total Operating Expenses	236			260			514			599
Operating Income	87			71			195			171
Other Income (Expense) - net	(5		)	(1		)	(5		)	(2		)
Interest Expense	18			13			35			26
Income Before Income Taxes	64			57			155			143
Income Taxes	24			22			59			55
Net Income (a)	$	40		$	35		$	96		$	88

(a) Net income equals comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

22

CONDENSED STATEMENTS OF CASH FLOWS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	96		$	88
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	83			82
Amortization	6			6
Defined benefit plans - expense	4			8
Deferred income taxes and investment tax credits	62			58
Other	—			24
Change in current assets and current liabilities
Accounts receivable	(2		)	13
Accounts receivable from affiliates	(7		)	7
Accounts payable	20			(12		)
Accounts payable to affiliates	8			(4		)
Unbilled revenues	(1		)	9
Fuel, materials and supplies	29			51
Income tax receivable	4			74
Taxes payable	—			9
Other	(6		)	(2		)
Other operating activities
Defined benefit plans - funding	(16		)	(25		)
Expenditures for asset retirement obligations	(6		)	(3		)
Other assets	(4		)	12
Other liabilities	3			(6		)
Net cash provided by operating activities	273			389
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(237		)	(349		)
Net cash provided by (used in) investing activities	(237		)	(349		)
Cash Flows from Financing Activities
Net increase (decrease) in short-term debt	(32		)	(5		)
Debt issuance and credit facility costs	(1		)	—
Payment of common stock dividends to parent	(61		)	(58		)
Contributions from parent	47			20
Net cash provided by (used in) financing activities	(47		)	(43		)
Net Increase (Decrease) in Cash and Cash Equivalents	(11		)	(3		)
Cash and Cash Equivalents at Beginning of Period	19			10
Cash and Cash Equivalents at End of Period	$	8		$	7

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

23

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	8	$	19
Accounts receivable (less reserve: 2016, $2; 2015, $1)
Customer	88		92
Other	10		11
Accounts receivable from affiliates	19		12
Unbilled revenues	68		67
Fuel, materials and supplies	122		151
Prepayments	14		5
Regulatory assets	8		16
Other current assets	—		2
Total Current Assets	337		375
Property, Plant and Equipment
Regulated utility plant	5,207		4,804
Less: accumulated depreciation - regulated utility plant	434		404
Regulated utility plant, net	4,773		4,400
Construction work in progress	130		390
Property, Plant and Equipment, net	4,903		4,790
Other Noncurrent Assets
Regulatory assets	440		424
Goodwill	389		389
Other intangibles	66		73
Other noncurrent assets	22		17
Total Other Noncurrent Assets	917		903
Total Assets	$	6,157	$	6,068

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

24

CONDENSED BALANCE SHEETS

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Liabilities and Equity
Current Liabilities
Short-term debt	$	110	$	142
Long-term debt due within one year	219		25
Accounts payable	145		157
Accounts payable to affiliates	33		25
Customer deposits	26		26
Taxes	20		20
Price risk management liabilities	6		5
Regulatory liabilities	8		13
Interest	11		11
Asset retirement obligations	37		25
Other current liabilities	36		39
Total Current Liabilities	651		488
Long-term Debt	1,423		1,617
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	888		829
Investment tax credits	37		35
Accrued pension obligations	48		56
Asset retirement obligations	136		149
Regulatory liabilities	427		431
Price risk management liabilities	50		42
Other deferred credits and noncurrent liabilities	85		91
Total Deferred Credits and Other Noncurrent Liabilities	1,671		1,633
Commitments and Contingent Liabilities (Notes 6 and 10)
Stockholder's Equity
Common stock - no par value (a)	424		424
Additional paid-in capital	1,658		1,611
Earnings reinvested	330		295
Total Equity	2,412		2,330
Total Liabilities and Equity	$	6,157	$	6,068

(a) 75,000 shares authorized; 21,294 shares issued and outstanding at June 30, 2016 and December 31, 2015.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

25

CONDENSED STATEMENTS OF EQUITY

Louisville Gas and Electric Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested			Total
December 31, 2015	21,294	$	424	$	1,611	$	295		$	2,330
Net income						96			96
Capital contributions from LKE				47					47
Cash dividends declared on common stock						(61		)	(61		)
June 30, 2016	21,294	$	424	$	1,658	$	330		$	2,412
December 31, 2014	21,294	$	424	$	1,521	$	229		$	2,174
Net income						88			88
Capital contributions from LKE				20					20
Cash dividends declared on common stock						(58		)	(58		)
June 30, 2015	21,294	$	424	$	1,541	$	259		$	2,224

(a) Shares in thousands. All common shares of LG&E stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

26

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27

CONDENSED STATEMENTS OF INCOME

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016			2015
Operating Revenues
Retail and wholesale	$	404	$	391	$	855		$	873
Electric revenue from affiliate	3		5		5			8
Total Operating Revenues	407		396		860			881
Operating Expenses
Operation
Fuel	113		132		233			282
Energy purchases	5		5		9			9
Energy purchases from affiliate	6		8		17			30
Other operation and maintenance	107		109		213			213
Depreciation	58		54		116			107
Taxes, other than income	8		8		15			15
Total Operating Expenses	297		316		603			656
Operating Income	110		80		257			225
Other Income (Expense) - net	1		2		(1		)	1
Interest Expense	23		19		47			38
Income Before Income Taxes	88		63		209			188
Income Taxes	34		24		80			71
Net Income (a)	$	54	$	39	$	129		$	117

(a) Net income approximates comprehensive income.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

28

CONDENSED STATEMENTS OF CASH FLOWS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Six Months Ended June 30,
	2016			2015
Cash Flows from Operating Activities
Net income	$	129		$	117
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	116			107
Amortization	7			4
Defined benefit plans - expense	3			6
Deferred income taxes and investment tax credits	77			84
Other	(1		)	(1		)
Change in current assets and current liabilities
Accounts receivable	11			—
Accounts receivable from affiliates	1			—
Accounts payable	11			27
Accounts payable to affiliates	12			(11		)
Unbilled revenues	(13		)	3
Fuel, materials and supplies	(9		)	3
Income tax receivable	—			60
Taxes payable	(3		)	14
Accrued interest	(1		)	—
Other	(10		)	(9		)
Other operating activities
Defined benefit plans - funding	(13		)	(19		)
Expenditures for asset retirement obligations	(2		)	—
Other assets	(3		)	(1		)
Other liabilities	(1		)	(24		)
Net cash provided by operating activities	311			360
Cash Flows from Investing Activities
Expenditures for property, plant and equipment	(201		)	(279		)
Other investing activities	—			4
Net cash provided by (used in) investing activities	(201		)	(275		)
Cash Flows from Financing Activities
Net increase (decrease) in short-term debt	(19		)	(9		)
Debt issuance and credit facility costs	(1		)	—
Payment of common stock dividends to parent	(113		)	(81		)
Contributions from parent	20			—
Net cash provided by (used in) financing activities	(113		)	(90		)
Net Increase (Decrease) in Cash and Cash Equivalents	(3		)	(5		)
Cash and Cash Equivalents at Beginning of Period	11			11
Cash and Cash Equivalents at End of Period	$	8		$	6

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

29

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016		December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	8	$	11
Accounts receivable (less reserve: 2016, $2; 2015, $2)
Customer	113		117
Other	4		9
Accounts receivable from affiliates	—		1
Unbilled revenues	93		80
Fuel, materials and supplies	157		147
Prepayments	16		8
Regulatory assets	14		19
Other current assets	1		4
Total Current Assets	406		396
Property, Plant and Equipment
Regulated utility plant	7,203		7,099
Less: accumulated depreciation - regulated utility plant	867		759
Regulated utility plant, net	6,336		6,340
Construction work in progress	295		267
Property, Plant and Equipment, net	6,631		6,607
Other Noncurrent Assets
Regulatory assets	327		303
Goodwill	607		607
Other intangibles	44		50
Other noncurrent assets	55		48
Total Other Noncurrent Assets	1,033		1,008
Total Assets	$	8,070	$	8,011

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

30

CONDENSED BALANCE SHEETS

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars, shares in thousands)

	June 30, 2016			December 31, 2015
Liabilities and Equity
Current Liabilities
Short-term debt	$	29		$	48
Accounts payable	73			88
Accounts payable to affiliates	52			39
Customer deposits	28			26
Taxes	17			20
Regulatory liabilities	17			19
Interest	15			16
Asset retirement obligations	39			25
Other current liabilities	33			44
Total Current Liabilities	303			325
Long-term Debt	2,327			2,326
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	1,120			1,046
Investment tax credits	96			93
Accrued pension obligations	39			46
Asset retirement obligations	327			336
Regulatory liabilities	489			492
Other deferred credits and noncurrent liabilities	47			60
Total Deferred Credits and Other Noncurrent Liabilities	2,118			2,073
Commitments and Contingent Liabilities (Notes 6 and 10)
Stockholder's Equity
Common stock - no par value (a)	308			308
Additional paid-in capital	2,616			2,596
Accumulated other comprehensive loss	(1		)	—
Earnings reinvested	399			383
Total Equity	3,322			3,287
Total Liabilities and Equity	$	8,070		$	8,011

(a) 80,000 shares authorized; 37,818 shares issued and outstanding at June 30, 2016 and December 31, 2015.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

31

CONDENSED STATEMENTS OF EQUITY

Kentucky Utilities Company

(Unaudited)

(Millions of Dollars)

	Common stock shares outstanding (a)	Common stock		Additional paid-in capital		Earnings reinvested			Accumulated other comprehensive loss			Total
December 31, 2015	37,818	$	308	$	2,596	$	383		$	—		$	3,287
Capital contributions from LKE				20								20
Net income						129						129
Cash dividends declared on common stock						(113		)				(113		)
Other comprehensive income (loss)									(1		)	(1		)
June 30, 2016	37,818	$	308	$	2,616	$	399		$	(1	)	$	3,322
December 31, 2014	37,818	$	308	$	2,596	$	302		$	—		$	3,206
Net income						117						117
Cash dividends declared on common stock						(81		)				(81		)
Other comprehensive income (loss)									(1		)	(1		)
June 30, 2015	37,818	$	308	$	2,596	$	338		$	(1	)	$	3,241

(a) Shares in thousands. All common shares of KU stock are owned by LKE.

The accompanying Notes to Condensed Financial Statements are an integral part of the financial statements.

32

Combined Notes to Condensed Financial Statements (Unaudited)

1. Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2015 is derived from that Registrant's 2015 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2015 Form 10-K. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

The classification of certain prior period amounts has been changed to conform to the presentation in the June 30, 2016 financial statements.

(PPL)

"Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income includes the activities of PPL Energy Supply, substantially representing PPL's former Supply segment, which was spun off and distributed to PPL shareowners on June 1, 2015. In addition, the Statement of Cash Flows for the six months ended June 30, 2015 separately reports the cash flows of the discontinued operations. See Note 8 for additional information.

2. Summary of Significant Accounting Policies

(All Registrants)

The following accounting policy disclosures represent updates to Note 1 to each indicated Registrant's 2015 Form 10-K and should be read in conjunction with those disclosures.

Accounts Receivable(PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. During the three and six months ended June 30, 2016, PPL Electric purchased $297 million and $679 million of accounts receivable from unaffiliated third parties. During the three and six months ended June 30, 2015, PPL Electric purchased $276 million and $607 million of accounts receivable from unaffiliated third parties and $53 million and $146 million from PPL EnergyPlus. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party.

Discount Rate Change for U.K. Pension Plans(PPL)

In selecting the discount rate for its U.K. pension plans, WPD historically used a single weighted-average discount rate in the calculation of net periodic defined benefit cost. Effective January 1, 2016, WPD began using individual spot rates to measure service cost and interest cost to calculate net periodic defined benefit cost. For the three and six months ended June 30, 2016, this change in discount rate resulted in lower net periodic defined benefit costs recognized on the Statements of Income of $11 million ($9 million after-tax or $0.02 per share) and $22 million ($18 million after-tax or $0.03 per share).

33

Foreign Currency Translation and Transactions (PPL)

WPD's functional currency is the GBP, which is the local currency in the U.K. As such, assets and liabilities are translated to U.S. dollars at the exchange rates on the date of consolidation and related revenues and expenses are generally translated at average exchange rates prevailing during the period included in PPL's results of operations. Adjustments resulting from foreign currency translation are recorded in AOCI.

PPL consolidates WPD on a one-month lag. Therefore, the impact of the decrease in the GBP to U.S. dollar exchange rate that occurred subsequent to the U.K.'s vote on June 23, 2016 to withdraw from the European Union is not reflected in PPL's June 30, 2016 financial statements. Using the June 30, 2016 GBP to U.S. dollar exchange rate of $1.34 as opposed to the May 31, 2016 exchange rate of $1.46 would have resulted in an additional foreign currency translation loss of $499 million recorded in AOCI, primarily reflecting a $991 million decrease in PP&E and a $228 million decrease in goodwill, partially offset by a decrease of $606 million in long-term debt.

Certain financial information provided for future periods in PPL’s 2015 Form 10-K is also impacted by the decrease in the GBP to U.S. dollar exchange rate.

New Accounting Guidance Adopted(All Registrants)

Accounting for Stock-Based Compensation

Effective January 1, 2016, the Registrants adopted accounting guidance to simplify the accounting for share-based payment transactions. The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense on the statement of income, eliminates the requirement that excess tax benefits be realized before companies can recognize them and changes the threshold for statutory income tax withholding requirements to qualify for equity classification to the maximum statutory tax rates in the applicable jurisdictions. This guidance also changes the classification of excess tax benefits to an operating activity and employee taxes paid when shares are withheld to satisfy the employer's statutory income tax withholding obligation to a financing activity on the statement of cash flows and allows entities to make a policy election to either estimate forfeitures or recognize them when they occur. The adoption of this guidance had the following impacts:

• Using the required prospective method of transition, for the three and six months ended June 30, 2016, PPL recorded tax benefits of $3 million and $11 million ($0.02 per share) and PPL Electric recorded tax benefits of $2 million and $7 million related to excess tax benefits for awards that were exercised and vested for the periods ending June 30, 2016. These amounts were recorded to Income taxes on the Statements of Income and Deferred income taxes on the Balance Sheets. The impact on LKE was not significant.

• PPL elected to use the prospective method of transition for classifying excess tax benefits as an Operating activity on the Statement of Cash Flows. The amounts classified as Financing activities in the prior periods were not significant.

• Upon adoption, using the required modified retrospective method of transition, PPL recorded a cumulative effect adjustment of $7 million to increase Earnings reinvested and decrease Deferred income taxes on the Balance Sheet related to prior period unrecognized excess tax benefits.

• PPL has historically presented employee taxes paid for net settled awards as a Financing activity on the Statement of Cash Flows. Therefore, there is no transition impact for this requirement.

• PPL has elected to recognize forfeitures when they occur. Due to past experience of insignificant forfeitures, there is no transition impact of this policy election.

34

3. Segment and Related Information

(PPL)

See Note 2 in PPL's 2015 Form 10-K for a discussion of reportable segments and related information.

Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are:

	Three Months						Six Months
	2016			2015			2016			2015
Income Statement Data
Revenues from external customers
U.K. Regulated	$	563		$	587		$	1,158		$	1,284
Kentucky Regulated	721			714			1,547			1,613
Pennsylvania Regulated	495			476			1,080			1,106
Corporate and Other	6			4			11			8
Total	$	1,785		$	1,781		$	3,796		$	4,011
Net Income (loss)
U.K. Regulated (a)	$	345		$	190		$	634		$	565
Kentucky Regulated	76			47			188			156
Pennsylvania Regulated	78			49			172			136
Corporate and Other (b)	(16		)	(36		)	(30		)	(55		)
Discontinued Operations (c)	—			(1,007		)	—			(912		)
Total	$	483		$	(757	)	$	964		$	(110	)

	June 30, 2016		December 31, 2015
Balance Sheet Data
Assets
U.K. Regulated (d)	$	16,371	$	16,669
Kentucky Regulated	13,886		13,756
Pennsylvania Regulated	8,825		8,511
Corporate and Other (e)	446		365
Total assets	$	39,528	$	39,301

(a) Includes unrealized gains and losses from hedging foreign-currency related economic activity. See Note 14 for additional information.

(b) 2015 includes transition costs to prepare the Talen Energy organization for the June 1, 2015 spinoff and reconfigure the remaining PPL Services functions. See Note 8 for additional information.

(c) See Note 8 for additional information.

(d) Includes $12.1 billion and $12.2 billion of net PP&E as of June 30, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP.

(e) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions.

4. Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock Method. Incremental non-participating securities that have a dilutive impact are detailed in the table below.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

35

	Three Months					Six Months
	2016		2015			2016		2015
Income (Numerator)
Income from continuing operations after income taxes	$	483	$	250		$	964	$	802
Less amounts allocated to participating securities	1		1			3		2
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	482	$	249		$	961	$	800
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	—	$	(1,007	)	$	—	$	(912	)
Net income (loss)	$	483	$	(757	)	$	964	$	(110	)
Less amounts allocated to participating securities	1		1			3		2
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	482	$	(758	)	$	961	$	(112	)
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	677,145		668,415			676,293		667,698
Add incremental non-participating securities:
Share-based payment awards	3,584		2,871			3,480		2,315
Weighted-average shares - Diluted EPS	680,729		671,286			679,773		670,013
Basic EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.42	$	1.20
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.37		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.42	$	(0.17	)
Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.41	$	1.19
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.36		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.41	$	(0.17	)

For the periods ended June 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months		Six Months
	2016	2015	2016	2015
Stock-based compensation plans (a)	795	992	2,920	2,437
DRIP	370	424	772	843

(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2016	2015	2016	2015
Stock options	696	348	696	1,085
Performance units	78	—	39	73

36

5. Income Taxes

Reconciliations of income taxes for the periods ended June 30 are as follows.

(PPL)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$	236		$	112		$	467		$	382
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	9			9			22			29
Valuation allowance adjustments	3			5			9			8
Impact of lower U.K. income tax rates	(45		)	(36		)	(99		)	(98		)
Federal and state tax reserve adjustments (a)	—			(12		)	—			(12		)
Interest benefit on U.K. financing entities	(4		)	(3		)	(9		)	(11		)
Stock-based compensation (b)	(3		)	—			(11		)	—
Other	(4		)	(4		)	(8		)	(10		)
Total increase (decrease)	(44		)	(41		)	(96		)	(94		)
Total income taxes	$	192		$	71		$	371		$	288

(a) During the three and six months ended June 30, 2015, PPL recorded a tax benefit to adjust the settled refund amount approved by Joint Committee of Taxation for the open audit years 1998 - 2011.

(b) During the three and six months ended June 30, 2016, PPL recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

(PPL Electric)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	44		$	30		$	97		$	81
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	8			4			18			14
Federal and state tax reserve adjustments	—			2			—			2
Depreciation not normalized	(2		)	(1		)	(3		)	(2		)
Stock-based compensation (a)	(2		)	—			(7		)	—
Other	—			1			(1		)	—
Total increase (decrease)	4			6			7			14
Total income taxes	$	48		$	36		$	104		$	95

(a) During the three and six months ended June 30, 2016, PPL Electric recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

(LKE)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	47		$	37		$	114		$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	5			4			12			11
Valuation allowance adjustments (a)	—			5			—			8
Stock-based compensation	—			—			(1		)	—
Other	(1		)	(1		)	(2		)	(2		)
Total increase (decrease)	4			8			9			17
Total income taxes	$	51		$	45		$	123		$	121

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(a) Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized.

(LG&E)
	Three Months				Six Months
	2016		2015		2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	22	$	20	$	54		$	50
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6			5
Other	—		—		(1		)	—
Total increase (decrease)	2		2		5			5
Total income taxes	$	24	$	22	$	59		$	55

(KU)
	Three Months				Six Months
	2016		2015		2016		2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	31	$	22	$	73	$	66
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		2		7		7
Other	—		—		—		(2		)
Total increase (decrease)	3		2		7		5
Total income taxes	$	34	$	24	$	80	$	71

Other (PPL)

In February 2015, PPL and the IRS Appeals Division reached a settlement on the amount of PPL's refund from its open audits for the years 1998 - 2011. In April 2015, PPL was notified that the Joint Committee on Taxation approved PPL's settlement. In the second quarter of 2015, PPL recorded a tax benefit of $23 million, which included an estimate of interest on the refund. Of this amount, $11 million was reflected in continuing operations. PPL finalized the settlement of interest in the second quarter of 2016 and recorded an additional $3 million tax benefit.

6. Utility Rate Regulation

(All Registrants)

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	—	$	—
Generation formula rate	13		7		—		—
Transmission service charge	10		10		10		10
Other	5		7		2		3
Total current regulatory assets (a)	$	34	$	48	$	12	$	13

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	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	800	$	809	$	460	$	469
Taxes recoverable through future rates	331		326		331		326
Storm costs	79		93		23		30
Unamortized loss on debt	66		68		41		42
Interest rate swaps	148		141		—		—
Accumulated cost of removal of utility plant	139		137		139		137
AROs	187		143		—		—
Other	12		16		1		2
Total noncurrent regulatory assets	$	1,762	$	1,733	$	995	$	1,006

Current Regulatory Liabilities:
Generation supply charge	$	26	$	41	$	26	$	41
Demand side management	10		8		—		—
Gas supply clause	—		6		—		—
Universal service rider	6		5		6		5
Transmission formula rate	27		48		27		48
Fuel adjustment clause	10		14		—		—
Storm damage expense	14		16		14		16
Other	6		7		1		3
Total current regulatory liabilities	$	99	$	145	$	74	$	113
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	—	$	—
Coal contracts (b)	8		17		—		—
Power purchase agreement - OVEC (b)	79		83		—		—
Net deferred tax assets	24		23		—		—
Act 129 compliance rider	19		22		19		22
Defined benefit plans	27		24		—		—
Interest rate swaps	80		82		—		—
Other	3		3		—		—
Total noncurrent regulatory liabilities	$	935	$	945	$	19	$	22

	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	6	$	13	$	—	$	11
Generation formula rate	13		7		—		—		13		7
Other	3		4		2		3		1		1
Total current regulatory assets	$	22	$	35	$	8	$	16	$	14	$	19

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	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	340	$	340	$	215	$	215	$	125	$	125
Storm costs	56		63		31		35		25		28
Unamortized loss on debt	25		26		16		17		9		9
Interest rate swaps	148		141		106		98		42		43
AROs	187		143		70		57		117		86
Plant retirement costs	5		6		—		—		5		6
Other	6		8		2		2		4		6
Total noncurrent regulatory assets	$	767	$	727	$	440	$	424	$	327	$	303

Current Regulatory Liabilities:
Demand side management	$	10	$	8	$	5	$	4	$	5	$	4
Gas supply clause	—		6		—		6		—		—
Fuel adjustment clause	10		14		2		2		8		12
Other	5		4		1		1		4		3
Total current regulatory liabilities	$	25	$	32	$	8	$	13	$	17	$	19
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	304	$	301	$	391	$	390
Coal contracts (b)	8		17		3		7		5		10
Power purchase agreement - OVEC (b)	79		83		54		57		25		26
Net deferred tax assets	24		23		23		23		1		—
Defined benefit plans	27		24		—		—		27		24
Interest rate swaps	80		82		40		41		40		41
Other	3		3		3		2		—		1
Total noncurrent regulatory liabilities	$	916	$	923	$	427	$	431	$	489	$	492

(a) These amounts are included in "Other current assets" on the Balance Sheets.

(b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL.

Regulatory Matters

U.K. Activities(PPL)

Ofgem Review of Line Loss Calculation

In 2014, Ofgem issued its final decision on the DPCR4 line loss incentives and penalties mechanism. WPD began refunding its liability for over-recovery of line losses to customers on April 1, 2015 and will continue through March 31, 2019. The liability at June 30, 2016 was $39 million.

Kentucky Activities

CPCN and ECR Filings(PPL, LKE, LG&E and KU)

On January 29, 2016, LG&E and KU submitted applications to the KPSC for CPCNs and for ECR rate treatment regarding upcoming environmental construction projects relating to the EPA's regulations addressing the handling of coal combustion by-products and MATS. The construction projects are expected to begin in 2016 and continue through 2023 and are estimated to cost approximately $316 million at LG&E and $678 million at KU. On June 13, 2016, LG&E and KU filed a unanimous settlement agreement with intervenors in the proceedings. The proposed settlement provided for recovery of the costs incurred by LG&E and KU for the projects requested in the original applications, with adjustments for amortization or depreciation methods and periods for CCR impoundment projects. The proposed settlement also included the parties' support for LG&E's

40

and KU's requested10% authorized return on equity. On August 8, 2016, the KPSC issued an order approving the majority of the settlement's terms and provisions, but establishing a 9.8% authorized return on equity for these projects. Recovery of costs will commence with bills rendered on and after August 31, 2016.

Gas Franchise(LKE and LG&E)

LG&E’s existing gas franchise agreement for the Louisville/Jefferson County service area expired on March 31, 2016.  Pursuant to Kentucky law, upon expiration of a franchise, LG&E retains a revocable license to own and operate its facilities and to provide service. LG&E submitted a bid for a new franchise agreement on June 9, 2016 and is awaiting action from the Louisville/Jefferson County Metro Council. On July 28, 2016, Metro Council introduced an ordinance to award the bid to LG&E and assigned the ordinance to committee for review and recommendation. In the interim, LG&E continues to provide gas service to customers in this service area at existing rates, but without collecting or remitting a franchise fee. LG&E cannot predict the outcome of this matter but does not anticipate that it will have a material effect on its financial condition or results of operation.

Pennsylvania Activities(PPL and PPL Electric)

Act 129

Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet specified goals for reduction in customer electricity usage and peak demand by specified dates. EDCs not meeting the requirements of Act 129 are subject to significant penalties. In November 2015, PPL Electric filed with the PUC its Act 129 Phase III Energy Efficiency and Conservation Plan for the period June 1, 2016 through May 31, 2021. In January 2016, PPL Electric and the other parties reached a settlement of all major issues in the case and filed that settlement with the Administrative Law Judge. In June 2016, the PUC issued a final order approving PPL Electric's Phase III Plan as modified by the settlement, allowing PPL Electric to recover a maximum $313 million in program cost over the five-year period June 1, 2016 through May 31, 2021 through the Act 129 compliance rider.     

Act 129 also requires Default Service Providers (DSP) to provide electricity generation supply service to customers pursuant to a PUC-approved default service procurement plan through auctions, requests for proposal and bilateral contracts at the sole discretion of the DSP. Act 129 requires a mix of spot market purchases, short-term contracts and long-term contracts (4 to 20 years), with long-term contracts limited to 25% of load unless otherwise approved by the PUC. A DSP is able to recover the costs associated with its default service procurement plan.

PPL Electric has received PUC approval of biannual DSP procurement plans for all periods required under Act 129. In January 2016, PPL Electric filed a Petition for Approval of a new DSP procurement plan with the PUC for the period June 1, 2017 through May 31, 2021. The parties have reached a settlement on all but one issue in the proceeding. A partial settlement agreement and briefs on the litigated issue were submitted to the Administrative Law Judge in July 2016. This proceeding remains pending before the PUC. PPL Electric cannot predict the outcome of this proceeding.

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:

41

	June 30, 2016									December 31, 2015
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
U.K.
WPD plc
Syndicated Credit Facility	Jan 2021	£	210	£	138	£	—	£	72	£	133	£	—
WPD (South West)
Syndicated Credit Facility	July 2020	245		100		—		145		—		—
WPD (East Midlands)
Syndicated Credit Facility	July 2020	300		31		—		269		—		—
WPD (West Midlands)
Syndicated Credit Facility	July 2020	300		—		—		300		—		—
Uncommitted Credit Facilities		40		—		4		36		—		4
Total U.K. Credit Facilities (a)		£	1,095	£	269	£	4	£	822	£	133	£	4
U.S.
PPL Capital Funding
Syndicated Credit Facility	Jan 2021	$	700	$	—	$	320	$	380	$	—	$	151
Syndicated Credit Facility	Nov 2018	300		—		—		300		—		300
Bilateral Credit Facility	Mar 2017	150		—		17		133		—		20
Total PPL Capital Funding Credit Facilities		$	1,150	$	—	$	337	$	813	$	—	$	471
PPL Electric
Syndicated Credit Facility	Jan 2021	$	400	$	—	$	7	$	393	$	—	$	1
LKE
Syndicated Credit Facility (b)	Oct 2018	$	75	$	—	$	—	$	75	$	75	$	—
LG&E
Syndicated Credit Facility	Dec 2020	$	500	$	—	$	110	$	390	$	—	$	142
KU
Syndicated Credit Facility	Dec 2020	$	400	$	—	$	29	$	371	$	—	$	48
Letter of Credit Facility	Oct 2017	198		—		198		—		—		198
Total KU Credit Facilities		$	598	$	—	$	227	$	371	$	—	$	246

(a) WPD plc's amounts borrowed at June 30, 2016 and December 31, 2015 were USD-denominated borrowings of $200 million for both periods, which bore interest at 1.27% and 1.83%. The unused capacity reflects the amount borrowed in GBP of £138 million as of the date borrowed. WPD (South West) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $146 million and bore interest at 0.92%. WPD (East Midlands) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $45 million and bore interest at 0.92%. At June 30, 2016, the unused capacity under the U.K. credit facilities was approximately $1.2 billion.

(b) LKE's interest rate on outstanding borrowings at December 31, 2015 was 1.68%.

In July 2016, the expiration dates for the WPD (South West), WPD (East Midlands) and WPD (West Midlands) syndicated credit facilities were extended to July 2021.

PPL, 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:

42

	June 30, 2016							December 31, 2015
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.84%	$	1,000	$	320	$	680	0.78%	$	451
PPL Electric	0.75%	400		6		394			—
LG&E	0.70%	350		110		240		0.71%	142
KU	0.70%	350		29		321		0.72%	48
Total		$	2,100	$	465	$	1,635		$	641

(LKE)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In May 2016, PPL Capital Funding issued $650 million of 3.10% Senior Notes due 2026. PPL Capital Funding received proceeds of $645 million, net of a discount and underwriting fees, which will be used to invest in or make loans to subsidiaries of PPL, to repay short-term debt and for general corporate purposes.

In May 2016, WPD (East Midlands) borrowed £100 million at 0.4975% under a new ten-year index linked term loan agreement, which will be used for general corporate purposes.

In May 2016, WPD plc repaid the entire $460 million principal amount of its 3.90% Senior Notes upon maturity.

(PPL and PPL Electric)

In March 2016, the LCIDA issued $116 million of Pollution Control Revenue Refunding Bonds, Series 2016A due 2029 and $108 million of Pollution Control Revenue Refunding Bonds, Series 2016B due 2027 on behalf of PPL Electric. The bonds were issued bearing interest at an initial term rate of 0.90% through their mandatory purchase dates of September 1, 2017 and August 15, 2017. The proceeds of the bonds were used to redeem $116 million of 4.70% Pollution Control Revenue Refunding Bonds, 2005 Series A due 2029 and $108 million of 4.75% Pollution Control Revenue Refunding Bonds, 2005 Series B due 2027 previously issued by the LCIDA on behalf of PPL Electric.

In connection with the issuance of each of these new series of LCIDA bonds, PPL Electric entered into a loan agreement with the LCIDA pursuant to which the LCIDA has loaned to PPL Electric the proceeds of the LCIDA bonds on payment terms that correspond to the LCIDA bonds. In order to secure its obligations under the loan agreement, PPL Electric issued $224 million of First Mortgage Bonds under its 2001 Mortgage Indenture, which also have payment terms that correspond to the LCIDA bonds.

(PPL)

ATM Program

In February 2015, PPL filed a registration statement with the SEC and 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. For the three and six months ended June 30, 2016, PPL did not issue any shares under the agreements. For 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 2016, PPL declared a quarterly common stock dividend, payable July 1, 2016, of 38 cents per share (equivalent to $1.52 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.

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8. Acquisitions, Development and Divestitures

(All Registrants)

The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with, modify or terminate the projects. Any resulting transactions may impact future financial results. See Note 8 in the Registrants' 2015 Form 10-K for additional information.

(PPL)

Discontinued Operations

Spinoff of PPL Energy Supply

In June 2015, PPL completed the spinoff of PPL Energy Supply which combined its competitive power generation businesses with those of Riverstone to form a new, stand-alone, publicly traded company named Talen Energy.

Following completion of the spinoff, PPL shareowners owned 65% of Talen Energy and affiliates of Riverstone owned 35%. The spinoff had no effect on the number of PPL common shares owned by PPL shareowners or the number of shares of PPL common stock outstanding. The transaction is intended to be tax-free to PPL and its shareowners for U.S. federal income tax purposes.

PPL has no continuing ownership interest in or control of Talen Energy and Talen Energy Supply (formerly PPL Energy Supply). See Note 8 in PPL's 2015 Form 10-K for additional information.

Loss on Spinoff

In June 2015, in conjunction with the accounting for the spinoff, PPL evaluated whether the fair value of the Supply segment's net assets was less than the carrying value as of the June 1, 2015 spinoff date.

PPL considered several valuation methodologies to derive a fair value estimate of its Supply segment at the spinoff date. These methodologies included considering the closing "when-issued" Talen Energy market value on June 1, 2015 (the spinoff date), adjusted for the proportional share of the equity value attributable to the Supply segment, as well as, the valuation methods consistently used in PPL's goodwill impairment assessments - an income approach using a discounted cash flow analysis of the Supply segment and an alternative market approach considering market multiples of comparable companies.

Although the market value of Talen Energy approach utilized the most observable inputs of the three approaches, PPL considered certain limitations of the "when-issued" trading market for the spinoff transaction including the short trading duration, lack of liquidity in the market and anticipated initial Talen stock ownership base selling pressure, among other factors, and concluded that these factors limit this input being solely determinative of the fair value of the Supply segment. As such, PPL also considered the other valuation approaches in estimating the overall fair value, but ultimately assigned the highest weighting to the Talen Energy market value approach.

The following table summarizes PPL's fair value analysis:

Approach	Weighting	Weighted Fair Value (in billions)
Talen Energy Market Value	50%	$	1.4
Income/Discounted Cash Flow	30%	1.1
Alternative Market (Comparable Company)	20%	0.7
Estimated Fair Value		$	3.2

A key assumption included in the fair value estimate is the application of a control premium of 25% in the two market approaches. PPL concluded it was appropriate to apply a control premium in these approaches as the goodwill impairment testing guidance was followed in determining the estimated fair value of the Supply segment which had historically been a

44

reporting unit for PPL. This guidance provides that the market price of an individual security (and thus the market capitalization of a reporting unit with publicly traded equity securities) may not be representative of the fair value of the reporting unit. This guidance also indicates that substantial value may arise to a controlling shareholder from the ability to take advantage of synergies and other benefits that arise from control over another entity, and that the market price of a company's individual share of stock does not reflect this additional value to a controlling shareholder. Therefore, the quoted market price need not be the sole measurement basis for determining the fair value, and including a control premium is appropriate in measuring the fair value of a reporting unit.

In determining the control premium, PPL reviewed premiums received during the last five years in market sales transactions obtained from observable independent power producer and hybrid utility transactions greater than $1 billion. Premiums for these transactions ranged from 5% to 42% with a median of approximately 25%. Given these metrics, PPL concluded a control premium of 25% to be reasonable for both of the market valuation approaches used.

Assumptions used in the discounted cash flow analysis included forward energy prices, forecasted generation, and forecasted operation and maintenance expenditures that were consistent with assumptions used in the Energy Supply portion of the Talen Energy business planning process at that time and a market participant discount rate.

Using these methodologies and weightings, PPL determined the estimated fair value of the Supply segment (classified as Level 3) was below its carrying value of $4.1 billion and recorded a loss on the spinoff of $879 million for the three and six months ended June 30, 2015, which is reflected in discontinued operations and is nondeductible for tax purposes. This amount served to reduce the basis of the net assets accounted for as a dividend at the June 1, 2015 spinoff date.

Costs of Spinoff

Employee-related costs incurred in the three and six months ended June 30, 2015 primarily included accelerated stock-based compensation and pro-rated performance-based cash incentive and stock-based compensation awards, primarily for PPL Energy Supply employees and for PPL Services employees who became PPL Energy Supply employees in connection with the transaction. PPL Energy Supply recognized $24 million of these costs at the spinoff closing date which are reflected in discontinued operations.

PPL also recorded $36 million and $42 million of third-party costs related to this transaction during the three and six months ended June 30, 2015. Of these costs, $29 million and $31 million were primarily for bank advisory, legal and accounting fees to facilitate the transaction, and are reflected in discontinued operations. An additional $7 million and $11 million of consulting and other costs were incurred to prepare the new Talen Energy organization for the spinoff and reconfigure the remaining PPL service functions. These costs are primarily recorded in "Other operation and maintenance" on the Statement of Income.

At the close of the transaction, $72 million ($42 million after-tax) of cash flow hedges, primarily unamortized losses on PPL interest rate swaps recorded in AOCI and designated as cash flow hedges of PPL Energy Supply's future interest payments, were reclassified into earnings and reflected in discontinued operations for the three and six months ended June 30, 2015.

Continuing Involvement(PPL and PPL Electric)

As a result of the spinoff, PPL and PPL Energy Supply entered into a Transition Services Agreement (TSA) that terminates no later than two years after the spinoff. Pursuant to the TSA, PPL is providing Talen Energy certain information technology, financial and accounting, human resource and other specified services. For the three and six months ended June 30, 2016, the amounts PPL billed Talen Energy for these services were $10 million and $20 million. For the period June 1, 2015 to June 30, 2015, the amounts PPL billed Talen Energy for these services were not significant. In general, the fees for the transition services allow the provider to recover its cost of the services, including overheads, but without margin or profit.

Additionally, prior to the spinoff, through the annual competitive solicitation process, PPL EnergyPlus was awarded supply contracts for a portion of the PLR generation supply for PPL Electric, which were retained by Talen Energy Marketing as part of the spinoff. PPL Electric's supply contracts with Talen Energy Marketing extend through November 2016. Energy purchases from PPL EnergyPlus were previously included in PPL Electric's Statements of Income as "Energy purchases from affiliate" but were eliminated in PPL's Consolidated Statements of Income.

For the three and six months ended June 30, 2016, PPL Electric's energy purchases from Talen Energy Marketing were $29 million and $83 million. For the period June 1, 2015 to June 30, 2015, PPL Electric's energy purchases from Talen Energy Marketing were not significant. These energy purchases are no longer considered affiliate transactions.

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Summarized Results of Discontinued Operations(PPL)

The operations of the Supply segment prior to the spinoff on June 1, 2015 are included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income. Following are the components of Discontinued Operations in the Statement of Income for the periods ended June 30, 2015:

	Three Months			Six Months
Operating revenues	$	483		$	1,427
Operating expenses	561			1,328
Other Income (Expense) - net	(29		)	(22		)
Interest expense (a)	112			150
Income (loss) before income taxes	(219		)	(73		)
Income tax expense (benefit)	(91		)	(40		)
Loss on spinoff	(879		)	(879		)
Income (Loss) from Discontinued Operations (net of income taxes)	$	(1,007	)	$	(912	)

(a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized.

Development

Regional Transmission Line Expansion Plan(PPL and PPL Electric)

Northeast/Pocono

In October 2012, the FERC issued an order in response to PPL Electric's December 2011 request for ratemaking incentives for the Northeast/Pocono Reliability project (a new 58-mile, 230 kV transmission line that includes three new substations and upgrades to adjacent facilities). The FERC granted the incentive for inclusion in rate base of all prudently incurred construction work in progress costs but denied the requested incentive for a 100 basis point adder to the return on equity.

In December 2012, PPL Electric submitted an application to the PUC requesting permission to site and construct the project. In January 2014, the PUC issued a final order approving the application. The line was energized in April 2016, completing the approximately $350 million project which includes additional substation security enhancements. Costs related to the project were capitalized and are included on the Balance Sheets, primarily in "Regulated utility plant."

9. Defined Benefits

(PPL, LKE and LG&E)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense and regulatory assets, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended June 30:

46

	Pension Benefits
	Three Months												Six Months
	U.S.						U.K.						U.S.						U.K.
	2016			2015			2016 (b)			2015			2016			2015			2016 (b)			2015
PPL
Service cost	$	16		$	26		$	18		$	19		$	33		$	56		$	36		$	39
Interest cost	44			52			62			77			87			110			124			156
Expected return on plan assets	(58		)	(69		)	(132		)	(129		)	(114		)	(145		)	(265		)	(260		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	10			22			36			40			25			47			73			79
Net periodic defined benefit costs (credits) (a)	$	15		$	33		$	(16	)	$	7		$	35		$	72		$	(32	)	$	14
LKE
Service cost	$	6		$	6								$	12		$	13
Interest cost	18			17									35			34
Expected return on plan assets	(24		)	(22		)							(45		)	(44		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	5			9									10			17
Net periodic defined benefit costs	$	8		$	12								$	16		$	24
LG&E
Service cost	$	1		$	1								$	1		$	1
Interest cost	4			4									7			7
Expected return on plan assets	(5		)	(5		)							(10		)	(10		)
Amortization of:
Prior service cost	1			—									2			1
Actuarial loss	1			3									3			6
Net periodic defined benefit costs	$	2		$	3								$	3		$	5

(a) For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

(b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

	Other Postretirement Benefits
	Three Months						Six Months
	2016			2015			2016			2015
PPL
Service cost	$	2		$	3		$	4		$	7
Interest cost	7			7			13			14
Expected return on plan assets	(6		)	(7		)	(11		)	(14		)
Net periodic defined benefit costs	$	3		$	3		$	6		$	7
LKE
Service cost	$	1		$	2		$	2		$	3
Interest cost	3			3			5			5
Expected return on plan assets	(1		)	(2		)	(3		)	(3		)
Amortization of prior service cost	—			—			1			1
Net periodic defined benefit costs	$	3		$	3		$	5		$	6

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(PPL Electric, LG&E and KU)

In addition to the specific plans it sponsors, LG&E is allocated costs of defined benefit plans sponsored by LKE. PPL Electric and KU do not directly sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE. These allocations are based on participation in those plans, which management believes are reasonable. For the periods ended June 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric	$	5	$	8	$	11	$	16
LG&E	3		4		5		7
KU	3		4		6		9

10. Commitments and Contingencies

Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

WKE Indemnification(PPL and LKE)

See footnote (e) to the table in "Guarantees and Other Assurances" below for information on an LKE indemnity relating to its former WKE lease, including related legal proceedings.

(PPL, LKE, LG&E and KU)

Cane Run Environmental Claims

In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky alleging violations of the Clean Air Act and RCRA. In addition, these plaintiffs assert common law claims of nuisance, trespass and negligence. These plaintiffs seek injunctive relief and civil penalties, plus costs and attorney fees, for the alleged statutory violations. Under the common law claims, these plaintiffs seek monetary compensation and punitive damages for property damage and diminished property values for a class consisting of residents within four miles of the Cane Run plant. In their individual capacities, these plaintiffs seek compensation for alleged adverse health effects. In response to a motion to dismiss filed by PPL and LG&E, in July 2014, the court dismissed the plaintiffs' RCRA claims and all but one Clean Air Act claim, but declined to dismiss their common law tort claims. Upon motion of LG&E and PPL, the district court certified for appellate review the issue of whether the state common law claims are preempted by federal statute. In December 2014, the U.S. Court of Appeals for the Sixth Circuit issued an order granting appellate review regarding the above matter. Oral argument before the Sixth Circuit was held in August 2015. In November 2015, the Sixth Circuit issued an opinion affirming the District Court's ruling that plaintiffs' state law claims are not preempted by the Clean Air Act and remanding the matter to the District Court for further proceedings. The District Court has issued an order setting a discovery schedule through the second quarter of 2017. PPL, LKE and LG&E cannot predict the outcome of this matter. LG&E retired one coal-fired unit at the Cane Run plant in March 2015 and the remaining two coal-fired units at the plant in June 2015.

Mill Creek Environmental Claims

In May 2014, the Sierra Club filed a citizen suit against LG&E in the U.S. District Court for the Western District of Kentucky for alleged violations of the Clean Water Act. The Sierra Club alleges that various discharges at the Mill Creek plant constitute violations of the plant's water discharge permit. The Sierra Club seeks civil penalties, injunctive relief, costs and attorney's fees. In August 2015, the Court denied cross-motions for summary judgment filed by both parties and directed the parties to proceed

48

with discovery. The parties have conducted discovery and settlement discussions in the matter. PPL, LKE and LG&E cannot predict the ultimate outcome of this matter, but believe the plant is operating in compliance with the permits and does not presently expect the matter to have a material effect on operations or result in significant losses beyond the amounts already recorded.

E.W. Brown Environmental Claims

In October 2015, KU received a notice of intent from Earthjustice and the Sierra Club informing certain federal and state agencies of the Sierra Club's intent to file a citizen suit, following expiration of the mandatory 60-day notification period, for alleged violations of the Clean Water Act. The claimant alleges discharges at the E.W. Brown plant in violation of applicable rules and the plant's water discharge permit. The claimant asserts that, unless the alleged discharges are promptly brought into compliance, it intends to seek civil penalties, injunctive relief and attorney's fees. In November 2015, the claimants submitted an amended notice of intent to add the Kentucky Waterways Alliance as a claimant. PPL, LKE and KU cannot predict the outcome of this matter or the potential impact on the operations of the E. W. Brown plant, including increased capital or operating costs, if any.

Trimble County Unit 2 Air Permit

The Sierra Club and other environmental groups petitioned the Kentucky Environmental and Public Protection Cabinet to overturn the air permit issued for the Trimble County Unit 2 baseload coal-fired generating unit, but the agency upheld the permit in an order issued in September 2007. In response to subsequent petitions by environmental groups, the EPA ordered certain non-material changes to the permit which, in January 2010, were incorporated into a final revised permit issued by the Kentucky Division for Air Quality. In March 2010, the environmental groups petitioned the EPA to object to the revised state permit. Until the EPA issues a final ruling on the pending petition and all available appeals are exhausted, PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potential impact on the operations of the Trimble County plant, including increased capital or operating costs, if any.

Trimble County Water Discharge Permit

In May 2010, the Kentucky Waterways Alliance and other environmental groups filed a petition with the Kentucky Energy and Environment Cabinet (KEEC) challenging the Kentucky Pollutant Discharge Elimination System permit issued in April 2010, which covers water discharges from the Trimble County plant. In November 2010, the KEEC issued a final order upholding the permit, which was subsequently appealed by the environmental groups. In September 2013, the Franklin Circuit Court reversed the KEEC order upholding the permit and remanded the permit to the agency for further proceedings. LG&E and the KEEC appealed the order to the Kentucky Court of Appeals. In July 2015, the Court of Appeals upheld the lower court ruling. On February 10, 2016, the Kentucky Supreme Court issued an order granting discretionary review. PPL, LKE, LG&E and KU are unable to predict the outcome of this matter or the potential impact on the operations of the Trimble County plant, including increased capital or operating costs, if any.

Regulatory Issues(All Registrants)

See Note 6 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

LG&E, KU and PPL Electric monitor their compliance with the Reliability Standards and continue to self-report or self-log potential violations of applicable reliability requirements and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity (including RFC or SERC) determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

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In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and cannot estimate a range of reasonably possible losses, if any.

Environmental Matters

(All Registrants)

Due to the environmental issues discussed below or other environmental matters, it may be necessary for the Registrants to modify, curtail, replace or cease operation of certain facilities or performance of certain operations to comply with statutes, regulations and other requirements of regulatory bodies or courts. In addition, legal challenges to new environmental permits or rules add to the uncertainty of estimating the future cost of these permits and rules.

WPD's distribution businesses are subject to certain statutory and regulatory environmental requirements. In connection with the matters discussed below, it may be necessary for WPD to incur significant compliance costs, which costs may be recoverable through rates subject to the approval of Ofgem. PPL believes that WPD has taken and continues to take measures to comply with all applicable environmental laws and regulations.

LG&E and KU are entitled to recover, through the ECR mechanism, certain costs of complying with the Clean Air Act, as amended, and those federal, state, or local environmental requirements applicable to coal combustion wastes and by-products from facilities that generate electricity from coal in accordance with approved compliance plans. Costs not covered by the ECR mechanism for LG&E and KU and all such costs for PPL Electric are subject to rate recovery before the companies' respective state regulatory authorities, or the FERC, if applicable. Because neither WPD nor PPL Electric owns any generating plants, their exposure to related environmental compliance costs is reduced. PPL, PPL Electric, LKE, LG&E and KU can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities.

Air

(PPL, LKE, LG&E and KU)

The Clean Air Act, which regulates air pollutants from mobile and stationary sources in the United States, has a significant impact on the operation of fossil fuel plants. The Clean Air Act requires the EPA periodically to review and establish concentration levels in the ambient air for six criteria pollutants to protect public health and welfare. These concentration levels are known as NAAQS. The six criteria pollutants are carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter and sulfur dioxide.

Federal environmental regulation of these criteria pollutants require states to adopt implementation plans, known as state implementation plans, for certain pollutants, which detail how the state will attain the standards that are mandated by the relevant law or regulation. Each state identifies the areas within its boundaries that meet the NAAQS (attainment areas) and those that do not (non-attainment areas), and must develop a state implementation plan both to bring non-attainment areas into compliance with the NAAQS and to maintain good air quality in attainment areas. In addition, for attainment of ozone and fine particulates standards, states in the eastern portion of the country, including Kentucky, are subject to a regional program developed by the EPA known as the Cross-State Air Pollution Rule. The NAAQS, future revisions to the NAAQS and state implementation plans, or future revisions to regional programs, may require installation of additional pollution controls, the costs of which PPL, LKE, LG&E and KU believe are subject to cost recovery.

Although PPL, LKE, LG&E and KU do not anticipate significant costs to comply with these programs, changes in market or operating conditions could result in different costs than anticipated.

National Ambient Air Quality Standards (NAAQS)

Under the Clean Air Act, the EPA is required to reassess the NAAQS for certain air pollutants on a five-year schedule. In 2008, the EPA revised the NAAQS for ozone and proposed to further strengthen the standard in November 2014. The EPA released a new ozone standard on October 1, 2015. The states and EPA will determine attainment with the new ozone standard through review of relevant ambient air monitoring data, with attainment or nonattainment designations scheduled no later than October 2017. States are also obligated to address interstate transport issues associated with new ozone standards through the establishment of "good neighbor" state implementation plans for those states that are found to contribute significantly to another state's non-attainment. States that are not in the ozone transport region, including Kentucky, are working together to

50

evaluate further nitrogen oxide reductions from fossil-fueled plants with SCRs. The nature and timing of any additional reductions resulting from these evaluations cannot be predicted at this time.

In 2010, the EPA finalized revised NAAQS for sulfur dioxide and required states to identify areas that meet those standards and areas that are in "non-attainment". In July 2013, the EPA finalized non-attainment designations for parts of the country, including part of Jefferson County in Kentucky. Attainment must be achieved by 2018. PPL, LKE, LG&E and KU anticipate that certain previously required compliance measures, such as upgraded or new sulfur dioxide Scrubbers at certain plants and the retirement of coal-fired generating units at LG&E's Cane Run plant and KU's Green River plant, will help to achieve compliance with the new sulfur dioxide and ozone standards. If additional reductions are required, the costs could be significant.

Mercury and Air Toxics Standards (MATS)

In February 2012, the EPA finalized the MATS rule requiring reductions of mercury and other hazardous air pollutants from fossil-fuel fired power plants, with an effective date of April 16, 2012. The MATS rule was challenged by industry groups and states and was upheld by the U.S. Court of Appeals for the D. C. Circuit Court (D.C. Circuit Court) in April 2014. A group of states subsequently petitioned the U.S. Supreme Court (Supreme Court) to review this decision and, in June 2015, the Supreme Court held that the EPA failed to properly consider costs when deciding to regulate hazardous air emissions from power plants under MATS. The Supreme Court remanded the matter to the D.C. Circuit Court, which in December 2015 remanded the rule to the EPA without vacating it. The EPA has proposed a supplemental finding regarding costs of the rule and has announced that it intends to make a final determination in 2016. The EPA's MATS rule remains in effect during the pendency of the ongoing proceedings.

LG&E and KU have installed significant controls in response to the MATS rule and in conjunction with compliance with other environmental requirements, including fabric-filter baghouses, upgraded Scrubbers or chemical additive systems for which appropriate KPSC authorization and/or ECR treatment has been received. LG&E and KU have received KPSC approval for a compliance plan providing for installation of additional MATS-related controls; however, the estimated cost of these controls is not expected to be significant for either LG&E or KU. PPL, LKE, LG&E and KU cannot predict the outcome of the MATS rule or its potential impact, if any, on plant operations, rate treatment or future capital or operating needs. See Note 6 for additional information.

New Source Review (NSR)

The NSR litigation brought by the EPA, states and environmental groups against coal-fired generating plants in past years continues to proceed through the courts. Although none of this litigation directly involves PPL, LKE, LG&E or KU, it can influence the permitting of large capital projects at LG&E's and KU's power plants, the costs of which cannot presently be determined but could be significant.

Climate Change

There is continuing world-wide attention focused on issues related to climate change. Most recently, on June 29, 2016, the President announced that the United States, Canada and Mexico have established the North American Climate, Clean Energy, and Environment Partnership Plan which specifies actions to promote clean energy, address climate change and protect the environment. The plan includes a goal to provide 50% of the energy used in North America from clean energy sources by 2025. The plan does not impose any nation-specific requirements.

In December 2015, 195 nations, including the U.S., signed the Paris Agreement on Climate which establishes a comprehensive framework for the reduction of greenhouse gas (GHG) emissions from both developed and developing nations. Although the agreement does not establish binding reduction requirements, it requires each nation to prepare, communicate and maintain GHG reduction commitments. Reductions can currently be achieved in a variety of ways, including energy conservation, power plant efficiency improvements, reduced utilization of coal-fired generation or replacing coal-fired generation with natural gas or renewable generation. Based on EPA's Clean Power Plan described below, the U.S. has committed to an initial reduction target of 26% to 28% below 2005 levels by 2025.

The UK has enacted binding carbon reduction requirements that are applicable to WPD. Under the UK law, WPD must purchase carbon allowances to offset emissions associated with WPD’s operations. The cost of these allowances is included in WPD’s current operating expenses. WPD expects these expenses to decrease as a result of energy efficiency measures and the removal of 18 fuel sources previously included in the allowance requirements.

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The EPA's Rules under Section 111 of the Clean Air Act

As further described below, the EPA finalized rules imposing GHG emission standards for both new and existing power plants in the United States. The EPA has also issued a proposed federal implementation plan that would apply to any states that fail to submit an acceptable state implementation plan under these rules. The EPA's authority to promulgate these regulations under Section 111 of the Clean Air Act has been challenged in the D.C. Circuit Court by several states and industry groups. On February 9, 2016, the Supreme Court stayed the rule for existing plants (the Clean Power Plan) pending the D.C. Circuit Court's review and subsequent review by the Supreme Court if a writ of certiorari is filed and granted.

The EPA's rule for new power plants imposes separate emission standards for coal and natural gas units based on the application of different technologies. The coal standard is based on the application of partial carbon capture and sequestration technology, but because this technology is not presently commercially available, the rule effectively precludes the construction of new coal-fired plants. The standard for NGCC power plants is the same as the EPA proposed in 2012 and is not continuously achievable. The preclusion of new coal-fired plants and the compliance difficulties posed for new natural gas-fired plants could have a significant industry-wide impact.

The EPA's Clean Power Plan

The EPA's rule for existing power plants, referred to as the Clean Power Plan, was published in the Federal Register in October 2015. The Clean Power Plan contains state-specific rate-based and mass-based reduction goals and guidelines for the development, submission and implementation of state implementation plans to achieve the state goals. State-specific goals were calculated from 2012 data by applying the EPA's broad interpretation and definition of the BSER, resulting in the most stringent targets to be met in 2030, with interim targets to be met beginning in 2022. The EPA believes it has offered some flexibility to the states as to how their compliance plans can be crafted, including the option to use a rate-based approach (limit emissions per megawatt hour) or a mass-based approach (limit total tons of emissions per year), and the option to demonstrate compliance through emissions trading and multi-state collaborations. Under the rate-based approach, Kentucky would need to make a 41% reduction from its 2012 emissions rate and under a mass-based approach it would need to make a 36% reduction. These reductions are significantly greater than initially proposed and present significant challenges to the state. If the Clean Power Plan is ultimately upheld and Kentucky fails to develop an approvable implementation plan by the applicable deadline, the EPA would impose a federal implementation plan that could be more stringent than what the state plan might provide. Depending on the provisions of the Kentucky implementation plan, LG&E and KU may need to modify their current portfolio of generating assets during the next decade and/or participate in an allowance trading program.

LG&E and KU are participating in the ongoing regulatory processes at the state and federal level. Various states, industry groups and individual companies including LKE have filed petitions for reconsideration with EPA and petitions for review with the D.C. Circuit Court challenging the Clean Power Plan. On February 9, 2016, the Supreme Court stayed the rule pending the D.C. Circuit Court's review. PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potential impact, if any, on plant operations, or future capital or operating costs. PPL, LKE, LG&E and KU believe that the costs, which could be significant, would be subject to cost recovery.

In April 2014, the Kentucky General Assembly passed legislation limiting the measures that the Kentucky Energy and Environment Cabinet may consider in setting performance standards to comply with the EPA's regulations governing GHG emissions from existing sources. The legislation provides that such state GHG performance standards shall be based on emission reductions, efficiency measures and other improvements available at each power plant, rather than renewable energy, end-use energy efficiency, fuel switching and re-dispatch. These statutory restrictions may make it more difficult for Kentucky to achieve the GHG reduction levels that the EPA has established for Kentucky.

Sulfuric Acid Mist Emissions (PPL, LKE and LG&E)

On June 30, 2016, the EPA issued a notice of violation under the Clean Air Act alleging that LG&E violated applicable rules relating to sulfuric acid mist emissions at its Mill Creek plant. The notice alleges failure to install proper controls, failure to operate the facility consistent with good air pollution control practice, and causing emissions exceeding applicable requirements or constituting a nuisance or endangerment. LG&E believes it has complied with applicable regulations during the relevant time period. Discussions between the EPA and LG&E are ongoing. PPL, LKE and LG&E are unable to predict the outcome of this matter or the potential impact on operations of the Mill Creek plant, including increased capital or operating costs, and potential civil penalties or remedial measures, if any.

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Water/Waste

(PPL, LKE, LG&E and KU)

Coal Combustion Residuals (CCRs)

On April 17, 2015, the EPA published its final rule regulating CCRs. CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes. The rule became effective on October 19, 2015. It imposes extensive new requirements, including location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements on CCR impoundments and landfills that are located on active power plants in the United States and not closed. Under the rule, the EPA will regulate CCRs as non-hazardous under Subtitle D of RCRA and allow beneficial use of CCRs, with some restrictions. The rule's requirements for covered CCR impoundments and landfills include implementation of groundwater monitoring and commencement or completion of closure activities generally between three and ten years from certain triggering events. This self-implementing rule requires posting of compliance documentation on a publicly accessible website and is enforceable solely through citizen suits. LG&E and KU are also subject to state rules applicable to CCR management which may potentially be modified to reflect some or all requirements of the federal rule. Industry groups, environmental groups, individual companies and others have filed legal challenges to the final rule which are pending before the D.C. Circuit Court of Appeals.

LG&E and KU have received KPSC approval for a compliance plan providing for construction of additional landfill capacity at the Brown Station, closure of impoundments at the Mill Creek, Trimble County, Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with federal CCR rule requirements, LG&E and KU are also proposing to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law requirements. PPL, LKE, LG&E, and KU estimate the cost of these CCR compliance measures at $311 million for LG&E and $661 million for KU. See Note 6 for additional information.

In connection with the final CCR rule, LG&E and KU recorded increases to existing AROs during 2015. See Note 16 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are subject to rate recovery.

Clean Water Act

Regulations under the federal Clean Water Act dictate permitting and mitigation requirements for facilities and construction projects in the United States. Many of those requirements relate to power plant operations, including requirements related to the treatment of pollutants in effluents prior to discharge, the temperature of effluent discharges and the location, design and construction of cooling water intake structures at generating facilities, standards intended to protect aquatic organisms by reducing capture in the screens attached to cooling water intake structures (impingement) at generating facilities and the water volume brought into the facilities (entrainment). The requirements could impose significant costs for LG&E and KU which are subject to rate recovery.

Effluent Limitations Guidelines (ELGs)

On September 30, 2015, the EPA released its final effluent limitations guidelines for wastewater discharge permits for new and existing steam electric generating facilities. The rule provides strict technology-based discharge limitations for control of pollutants in scrubber wastewater, fly ash and bottom ash transport water, mercury control wastewater, gasification wastewater and combustion residual leachate. The new guidelines require deployment of additional control technologies providing physical, chemical and biological treatment of wastewaters. The guidelines also mandate operational changes including "no discharge" requirements for fly ash and bottom ash transport waters and mercury control wastewaters. The implementation date for individual generating stations will be determined by the states on a case-by-case basis according to criteria provided by the EPA, but the requirements of the rule must be fully implemented no later than 2023. It has not been decided how Kentucky intends to integrate the ELGs into its routine permit renewal process. Industry groups, environmental groups, individual companies and others have filed legal challenges to the final rule which have been consolidated before the United States Fifth Circuit Court of Appeals. LG&E and KU are developing compliance strategies and schedules. PPL, LKE, LG&E and KU are unable to fully estimate compliance costs or timing at this time, although certain preliminary estimates are included in current capital forecasts for applicable periods. Costs to comply with ELGs or other discharge limits, which are expected to be significant, are subject to rate recovery.

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Clean Water Act Section 316(b)

The EPA's final 316(b) rule for existing facilities became effective in October 2014, and regulates cooling water intake structures and their impact on aquatic organisms. States are allowed broad discretion to make site-specific determinations under the rule. The rule requires existing facilities to choose between several options to reduce the impact to aquatic organisms that become trapped against water intake screens (impingement) and to determine the intake structure's impact on aquatic organisms pulled through a plant's cooling water system (entrainment). Plants equipped with closed-cycle cooling, an acceptable option, would likely not incur substantial costs. Once-through systems would likely require additional technology to comply with the rule. Based on studies conducted by LG&E and KU to date, all plants will incur only insignificant operational costs. In addition, LG&E's Mill Creek Unit 1 is expected to incur capital costs. PPL, LKE, LG&E and KU are evaluating compliance strategies but do not presently expect the compliance costs, which are subject to rate recovery, to be significant.

(All Registrants)

Waters of the United States (WOTUS)

The U.S. Court of Appeals for the Sixth Circuit has issued a stay of EPA's rule on the definition of WOTUS pending the court's review of the rule. The effect of the stay is that the WOTUS rule is not in effect anywhere in the United States. The ultimate outcome of the court's review of the rule remains uncertain. Because of the strict permitting programs already in place in Kentucky and Pennsylvania, the Registrants do not expect the rule to have a significant impact on their operations.

Other Issues

The EPA is reassessing its polychlorinated biphenyls (PCB) regulations under the Toxic Substance Control Act, which was significantly updated on June 22, 2016. In 2010, the EPA had issued an Advanced Notice of Proposed Rulemaking for changes to these regulations. The rulemaking, which could lead to a phase-out in the United States of all or some equipment containing PCBs, is not likely to be affected by the revisions to the Toxic Substances Control Act. The EPA has postponed the release of revisions to its proposed rulemaking. The Registrants cannot predict at this time the outcome of the proposed EPA rulemaking and what impact, if any, it would have on their facilities, but the costs could be significant.

Superfund and Other Remediation(All Registrants)

PPL Electric is potentially responsible for costs at several sites listed by the EPA under the federal Superfund program, including the Columbia Gas Plant site, the Metal Bank site and the Brodhead site. Clean-up actions have been or are being undertaken at all of these sites, the costs of which have not been significant to PPL Electric. Should the EPA require different or additional measures in the future, however, or should PPL Electric's share of costs at multi-party sites increase substantially more than expected, the costs could be significant.

PPL Electric, LG&E and KU are investigating, responding to agency inquiries, remediating, or have completed the remediation of, several sites that were not addressed under a regulatory program such as Superfund, but for which PPL Electric, LG&E and KU may be liable for remediation. These include a number of former coal gas manufacturing plants in Pennsylvania and Kentucky previously owned or operated or currently owned by predecessors or affiliates of PPL Electric, LG&E and KU. To date, the costs of these sites have not been significant.

There are additional sites, formerly owned or operated by PPL Electric, LG&E and KU predecessors or affiliates. LG&E and KU lack information on the condition of such additional sites and are therefore unable to estimate any potential liability they may have or a range of reasonably possible losses, if any, related to these sites. At June 30, 2016 and December 31, 2015, PPL Electric had a recorded liability of $10 million representing its best estimate of the probable loss incurred to remediate additional sites previously owned or operated by PPL Electric predecessors or affiliates. Depending on the outcome of investigations at sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, the costs of remediation and other liabilities could be significant and may be as much as approximately $30 million.

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result of the EPA's evaluation, individual states may establish stricter standards for water quality and soil cleanup. This could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters.

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From time to time, PPL's subsidiaries in the United States undertake remedial action in response to notices of violations, spills or other releases at various on-site and off-site locations, negotiate with the EPA and state and local agencies regarding actions necessary for compliance with applicable requirements, negotiate with property owners and other third parties alleging impacts from PPL's operations and undertake similar actions necessary to resolve environmental matters that arise in the course of normal operations. Based on analyses to date, resolution of these environmental matters is not expected to have a significant adverse impact on the operations of PPL Electric, LG&E and KU.

Future cleanup or remediation work at sites under review, or at sites not yet identified, may result in significant additional costs for PPL, PPL Electric, LKE, LG&E and KU. Insurance policies maintained by LKE, LG&E and KU may be applicable to certain of the costs or other obligations related to these matters but the amount of insurance coverage or reimbursement cannot be estimated or assured.

European Union Creosote Ban(PPL)

In 2011, the European Commission amended the European Union Biocides Directive to ban the use of creosote in contact with soil. Creosote is a wood preservative used to extend the life of wooden poles that support power lines. Although European Union member countries were required to pass implementing laws by 2012, the U.K. has not passed an implementing law and there are no legal penalties for failing to do so. The recent U.K. referendum in favor of the U.K.'s departure from the European Union further reduces the likelihood that the U.K. would pass implementing law. In the unlikely event that the U.K. were to ban the use of creosote, WPD's creosote-treated wood poles would need to be replaced with an acceptable alternative at the time of routine replacement. WPD has 1.4 million wood poles in its system. There are currently no alternative wood preservatives available that are acceptable to the industry and/or regulators.

Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of June 30, 2016. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The probability of expected payment/performance under each of these guarantees is remote except for "WPD guarantee of pension and other obligations of unconsolidated entities" and "Indemnification of lease termination and other divestitures." The total recorded liability at June 30, 2016, was $22 million for PPL and $17 million for LKE. The total recorded liability at December 31, 2015, was $25 million for PPL and $18 million for LKE. For reporting purposes, on a consolidated basis, all guarantees of PPL Electric, LKE, LG&E and KU also apply to PPL, and all guarantees of LG&E and KU also apply to LKE.

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	Exposure at June 30, 2016			Expiration Date
PPL
Indemnifications related to the WPD Midlands acquisition			(a)
WPD indemnifications for entities in liquidation and sales of assets	$	10	(b)	2019
WPD guarantee of pension and other obligations of unconsolidated entities	105		(c)
PPL Electric
Guarantee of inventory value	21		(d)	2018
LKE
Indemnification of lease termination and other divestitures	301		(e)	2021 - 2023
LG&E and KU
LG&E and KU guarantee of shortfall related to OVEC			(f)

(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. Additionally, 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 June 30, 2016, 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) 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.

(e) LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE's indemnitee filed a motion for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. In September 2015, a counterparty issued a demand letter to LKE's indemnitee. In February 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the demands. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting certain settlement discussions, however, 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; 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 the indemnification circumstances, but does not expect such outcomes to result in significant losses above the amounts recorded.

(f) 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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $125 million at June 30, 2016, consisting of LG&E's share of $87 million and KU's share of $38 million. 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 13 in PPL's, LKE's, LG&E's and KU's 2015 Form 10-K for additional information on the OVEC power purchase contract.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is remote.

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PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

11. Related Party Transactions

Support Costs(PPL Electric, LKE, LG&E and KU)

PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services. PPL EU Services provides the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provides certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS.

Intercompany Borrowings(LKE)

LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At June 30, 2016 and December 31, 2015, $176 million and $54 million were outstanding and were reflected in "Notes payable with affiliate" on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at June 30, 2016 and December 31, 2015 were 1.97% and 1.74%.

LKE has a $400 millionten-year note with a PPL affiliate with an interest rate of 3.5%. At June 30, 2016 and December 31, 2015, the note was reflected in "Long-term debt to affiliate" on the Balance Sheets.

Other(PPL Electric, LG&E and KU)

See Note 9 for discussions regarding intercompany allocations associated with defined benefits.

12. Other Income (Expense) - net

(PPL)

"Other Income (Expense) - net" for the three and six months ended June 30, 2016 and 2015 consisted primarily of gains (losses) on foreign currency contracts to economically hedge PPL's translation risk related to its GBP denominated earnings in the U.K. See Note 14 for additional information on these derivatives.

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13. Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. Transfers between levels are recognized at end-of-reporting-period values. During the three and six months ended June 30, 2016 and 2015, there were no transfers between Level 1 and Level 2. See Note 1 in each Registrant's 2015 Form 10-K for information on the levels in the fair value hierarchy.

Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	492	$	492	$	—	$	—	$	836	$	836	$	—	$	—
Restricted cash and cash equivalents (a)	33		33		—		—		33		33		—		—
Price risk management assets (b):
Foreign currency contracts	393		—		393		—		209		—		209		—
Cross-currency swaps	92		—		92		—		86		—		86		—
Total price risk management assets	485		—		485		—		295		—		295		—
Auction rate securities (c)	2		—		—		2		2		—		—		2
Total assets	$	1,012	$	525	$	485	$	2	$	1,166	$	869	$	295	$	2
Liabilities
Price risk management liabilities (b):
Interest rate swaps	$	56	$	—	$	56	$	—	$	71	$	—	$	71	$	—
Foreign currency contracts	—		—		—		—		1		—		1		—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	72	$	—	$	72	$	—
PPL Electric
Assets
Cash and cash equivalents	$	35	$	35	$	—	$	—	$	47	$	47	$	—	$	—
Restricted cash and cash equivalents (a)	2		2		—		—		2		2		—		—
Total assets	$	37	$	37	$	—	$	—	$	49	$	49	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	30	$	30	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	25	$	25	$	—	$	—	$	39	$	39	$	—	$	—

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	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
LG&E
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	19	$	19	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	17	$	17	$	—	$	—	$	28	$	28	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—

(a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(b) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(c) Included in "Other noncurrent assets" on the Balance Sheets.

(d) Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset.

Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps (PPL, LKE, LG&E and KU)

To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Nonrecurring Fair Value Measurements

See Note 8 for information regarding the estimated fair value of the Supply segment's net assets as of the June 1, 2015 spinoff date.

Financial Instruments Not Recorded at Fair Value(All Registrants)

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. The fair values were estimated using an income approach by discounting future cash flows at estimated current cost of funding rates, which incorporate the credit risk of the Registrants. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement.

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	June 30, 2016				December 31, 2015
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	19,168	$	22,669	$	19,048	$	21,218
PPL Electric	2,830		3,359		2,828		3,088
LKE	5,089		5,773		5,088		5,384
LG&E	1,642		1,832		1,642		1,704
KU	2,327		2,666		2,326		2,467

(a) Amounts are net of debt issuance costs.

The carrying value of short-term debt (including notes between affiliates), when outstanding, approximates fair value due to the variable interest rates associated with the short-term debt and is classified as Level 2.

14. Derivative Instruments and Hedging Activities

Risk Management Objectives

(All Registrants)

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances and foreign exchange (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Director - Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and foreign currency exchange rates. Many of the contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest rate risk

• PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and WPD hold over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. LKE and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LKE, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuances.

• PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place.

Foreign currency risk

• PPL is exposed to foreign currency exchange risk primarily associated with its investments in and earnings of U.K. affiliates.

60

Commodity price risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

• PPL Electric is exposed to commodity price risk from its obligation as PLR; however, its PUC-approved cost recovery mechanism substantially eliminates its exposure to this risk. PPL Electric also mitigates its exposure to commodity price risk by entering into full-requirement supply agreements to serve its PLR customers. These supply agreements transfer the commodity price risk associated with the PLR obligation to the energy suppliers.

• LG&E's and KU's rates include certain mechanisms for fuel and fuel-related expenses. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric risk

PPL is exposed to volumetric risk through its subsidiaries as described below.

• WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO - ED1 price control period, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2015 Form 10-K for additional information on revenue recognition under RIIO - ED1.

• PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Equity securities price risk

• PPL and its subsidiaries are exposed to equity securities price risk associated with defined benefit plans. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place.

• PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" interest rate and foreign currency derivatives with financial institutions, as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of LKE (through its subsidiaries LG&E and KU) or PPL Electric defaults on its obligation, those entities would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thus mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had an obligation to return $76 million of cash collateral under master netting arrangements at June 30, 2016 and no obligation to return cash collateral under master netting arrangements at December 31, 2015.

LKE, LG&E and KU had no obligation to return cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

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PPL, LKE and LG&E posted $9 million of cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

KU did not post any cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. Various financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolio, adjust the duration of the debt portfolio and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges

(PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL held no such contracts at June 30, 2016.

At June 30, 2016, PPL held an aggregate notional value in cross-currency interest rate swap contracts of $802 million that range in maturity from 2017 through 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. In May 2016, $460 million of WPD's U.S. dollar-denominated senior notes were repaid upon maturity and $460 million notional value of cross-currency interest rate swap contracts matured. PPL recorded a $46 million gain upon settlement of the cross-currency interest rate swap contracts, which largely offset a loss recorded on the revaluation of U.S. dollar-denominated senior notes.

For the three and six months ended June 30, 2016, PPL had an insignificant amount of ineffectiveness associated with interest rate derivatives.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges for the three and six months ended June 30, 2016. As a result of the June 1, 2015 spinoff of PPL Energy Supply, all PPL cash flow hedges associated with PPL Energy Supply were ineffective and discontinued and therefore, reclassified into earnings and reflected in discontinued operations for the three and six months ended June 30, 2015. See Note 8 for additional information.

At June 30, 2016, the accumulated net unrecognized after-tax gains (losses) on qualifying derivatives that are expected to be reclassified into earnings during the next 12 months were insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity(PPL, LKE and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments on variable rate debt. Because realized gains and losses from the swaps, including a terminated swap contract, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At June 30, 2016, LG&E held contracts with a notional amount of $179 million that range in maturity through 2033.

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Foreign Currency Risk

(PPL)

PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings.

Net Investment Hedges

PPL enters into foreign currency contracts on behalf of a subsidiary to protect the value of a portion of its net investment in WPD. There were no such contracts outstanding at June 30, 2016.

At June 30, 2016, PPL had $22 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI, compared to $19 million at December 31, 2015.

Economic Activity

PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings. At June 30, 2016, the total exposure hedged by PPL was approximately £1.7 billion (approximately $2.7 billion based on contracted rates). These contracts had termination dates ranging from July 2016 through November 2018.

At June 30, 2016, foreign currency hedges related to 2017 and 2018 anticipated earnings were valued at $296 million and were included in current and noncurrent "Price risk management assets" on the Balance Sheet. The notional amount of these hedges was approximately £1.3 billion (approximately $2.0 billion based on contracted rates) with termination dates from January 2017 through November 2018. In the third quarter of 2016, PPL settled the 2017 and 2018 hedges, resulting in approximately $310 million of cash received, and entered into new hedges at current market rates. The settlement will not have a material effect on earnings as the hedge values were previously marked to fair value and recognized in "Other Income (Expense) - net" on the Statement of Income each period.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts for PPL and PPL Electric include certain full-requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's and KU's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at June 30, 2016 and December 31, 2015.

See Notes 1 and 17 in each Registrant's 2015 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets, excluding derivative instruments of discontinued operations.

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	June 30, 2016								December 31, 2015
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	$	—	$	—	$	—	$	6	$	—	$	24	$	—	$	5
Cross-currency swaps (b)	3		—		—		—		35		—		—		—
Foreign currency contracts	—		—		197		—		10		—		94		1
Total current	3		—		197		6		45		24		94		6
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	—		—		—		50		—		—		—		42
Cross-currency swaps (b)	89		—		—		—		51		—		—		—
Foreign currency contracts	—		—		196		—		—		—		105		—
Total noncurrent	89		—		196		50		51		—		105		42
Total derivatives	$	92	$	—	$	393	$	56	$	96	$	24	$	199	$	48

(a) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b) Excludes accrued interest, if applicable.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2016.

								Three Months					Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	(3	)	$	(21	)	Interest expense	$	(2	)	$	—	$	(3	)	$	—
Cross-currency swaps	(104		)	9			Interest expense	(1		)	—		—			—
							Other income (expense) - net	(103		)	—		(6		)	—
Total	$	(107	)	$	(12	)		$	(106	)	$	—	$	(9	)	$	—
Net Investment Hedges:
Foreign currency contracts	$	1		$	4

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Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	171		$	231
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	169		$	227
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2015.

								Three Months						Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)			Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	17		$	(2	)	Interest expense	$	(3	)	$	—		$	(7	)	$	—
							Discontinued operations	—			(77		)	—			(77		)
Cross-currency swaps	15			36			Interest expense	1			—			2			—
							Other income (expense) - net	15			—			32			—
Commodity contracts	—			—			Discontinued operations	6			7			13			7
Total	$	32		$	34			$	19		$	(70	)	$	40		$	(70	)
Net Investment Hedges:
Foreign currency contracts	$	(17	)	$	(1	)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	(102	)	$	(14	)
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	(104	)	$	(18	)
Derivatives Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76		$	20
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

(LKE)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

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	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76	$	20

(LG&E)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

(KU)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2016				December 31, 2015
	Assets		Liabilities			Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	6		$	—	$	5
Total current	—		6			—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		50			—		42
Total noncurrent	—		50			—		42
Total derivatives	$	—	$	56		$	—	$	47

(a) Represents the location on the Balance Sheets.

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2016.

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	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2015.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

(PPL, LKE, LG&E and KU)

Offsetting Derivative Instruments

PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LKE, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LKE, LG&E and

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KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LKE's, LG&E's, and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts disclosed below represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL, LKE and LG&E)

At June 30, 2016, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	31	$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments	8		8		8
Aggregate fair value of additional collateral requirements in the event of  a credit downgrade below investment grade (a)	23		23		23

(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet.

15. Goodwill and Other Intangible Assets

(PPL)

The change in the carrying amount of goodwill for the six months ended June 30, 2016 was due to the effect of foreign currency exchange rates on the U.K. Regulated segment.

The change in the other intangible assets for the six months ended June 30, 2016 was primarily due to an increase in the gross carrying amount of indefinite lived intangibles at WPD attributable to new easements of $47 million.

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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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.

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17. Accumulated Other Comprehensive Income (Loss)

(PPL and LKE)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Foreign currency translation adjustments			Unrealized gains (losses)									Defined benefit plans
				Available- for-sale securities			Qualifying derivatives			Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
PPL
March 31, 2016	$	(984	)	$	—		$	(5	)	$	—		$	(6	)	$	(2,164	)	$	(3,159	)
Amounts arising during the period	268			—			(85		)	—			—			2			185
Reclassifications from AOCI	—			—			85			(1		)	1			32			117
Net OCI during the period	268			—			—			(1		)	1			34			302
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
December 31, 2015	$	(520	)	$	—		$	(7	)	$	—		$	(6	)	$	(2,195	)	$	(2,728	)
Amounts arising during the period	(196		)	—			(5		)	—			—			2			(199		)
Reclassifications from AOCI	—			—			7			(1		)	1			63			70
Net OCI during the period	(196		)	—			2			(1		)	1			65			(129		)
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
March 31, 2015	$	(352	)	$	206		$	9		$	—		$	3		$	(2,177	)	$	(2,311	)
Amounts arising during the period	(83		)	2			21			—			(6		)	53			(13		)
Reclassifications from AOCI	—			(1		)	27			—			—			38			64
Net OCI during the period	(83		)	1			48			—			(6		)	91			51
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
December 31, 2014	$	(286	)	$	202		$	20		$	1		$	3		$	(2,214	)	$	(2,274	)
Amounts arising during the period	(149		)	7			27			—			(6		)	52			(69		)
Reclassifications from AOCI	—			(2		)	10			(1		)	—			76			83
Net OCI during the period	(149		)	5			37			(1		)	(6		)	128			14
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
LKE
March 31, 2016										$	—		$	(10	)	$	(35	)	$	(45	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			1			1
Net OCI during the period										(1		)	1			2			2
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)
December 31, 2015										$	—		$	(10	)	$	(36	)	$	(46	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			2			2
Net OCI during the period										(1		)	1			3			3
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)

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	Foreign currency translation adjustments	Unrealized gains (losses)					Defined benefit plans
		Available- for-sale securities	Qualifying derivatives	Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
March 31, 2015				$	(1	)	$	(8	)	$	(36	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				—			1			—			1
Net OCI during the period				—			1			(8		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)
December 31, 2014				$	—		$	(8	)	$	(37	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				(1		)	1			1			1
Net OCI during the period				(1		)	1			(7		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)

(PPL)

The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30. The defined benefit plan components of AOCI are not reflected in their entirety in the Statement of Income during the periods; rather, they are included in the computation of net periodic defined benefit costs (credits) and subject to capitalization. See Note 9 for additional information.

	Three Months						Six Months						Affected Line Item on the
Details about AOCI	2016			2015			2016			2015			Statements of Income
Available-for-sale securities	$	—		$	2		$	—		$	4		Other Income (Expense) - net
Total Pre-tax	—			2			—			4
Income Taxes	—			(1		)	—			(2		)
Total After-tax	—			1			—			2
Qualifying derivatives
Interest rate swaps	(2		)	(3		)	(3		)	(7		)	Interest Expense
	—			(77		)	—			(77		)	Discontinued operations
Cross-currency swaps	(103		)	15			(6		)	32			Other Income (Expense) - net
	(1		)	1			—			2			Interest Expense
Commodity contracts	—			13			—			20			Discontinued operations
Total Pre-tax	(106		)	(51		)	(9		)	(30		)
Income Taxes	21			24			2			20
Total After-tax	(85		)	(27		)	(7		)	(10		)
Equity investees' AOCI	1			—			1			2			Other Income (Expense) - net
Total Pre-tax	1			—			1			2
Income Taxes	—			—			—			(1		)
Total After-tax	1			—			1			1
Defined benefit plans
Prior service costs	(1		)	—			(1		)	—
Net actuarial loss	(40		)	(50		)	(80		)	(101		)
Total Pre-tax	(41		)	(50		)	(81		)	(101		)
Income Taxes	8			12			17			25
Total After-tax	(33		)	(38		)	(64		)	(76		)
Total reclassifications during the period	$	(117	)	$	(64	)	$	(70	)	$	(83	)

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18. New Accounting Guidance Pending Adoption

(All Registrants)

Accounting for Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued accounting guidance that establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

For public business entities, this guidance can be applied using either a full retrospective or modified retrospective transition method, beginning in annual reporting periods after December 15, 2017 and interim periods within those years. Public business entities may early adopt this guidance in annual reporting periods beginning after December 15, 2016. The Registrants expect to adopt this guidance effective January 1, 2018.

The Registrants continue to assess the impact of adopting this guidance, as well as the transition method they will use, and are monitoring the development of industry specific application guidance which could impact those assessments.

Accounting for Leases

In February 2016, the FASB issued accounting guidance for leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained a dual model for lessees, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.

Lessor accounting under the new guidance is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Similar to current practice, lessors will classify leases as operating, direct financing, or sales-type.

The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented.

The Registrants are currently assessing the impact of adopting this guidance.

Accounting for Financial Instrument Credit Losses

In June 2016, the FASB issued accounting guidance that requires the use of a current expected credit loss (CECL) model for the measurement of credit losses on financial instruments within the scope of this guidance, which includes accounts receivable. The CECL model requires an entity to measure credit losses using historical information, current information and reasonable and supportable forecasts of future events, rather than the incurred loss impairment model required under current GAAP.

For public business entities, this guidance will be applied using a modified retrospective approach and is effective for fiscal years beginning after December 15, 2019, and interim periods within those years. All entities may early adopt this guidance beginning after December 15, 2018, including interim periods within those years.

The Registrants are currently assessing the impact of adopting this guidance and the period that they will adopt this guidance.

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Item 2. Combined Management's Discussion and Analysis of Financial Condition and

Results of Operations

(All Registrants)

This "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations" is separately filed by PPL Corporation, PPL Electric, LKE, LG&E and KU. Information contained herein relating to any individual Registrant is filed by such Registrant solely on its own behalf, and no Registrant makes any representation as to information relating to any other Registrant. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure for each Registrant's related activities and disclosures. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The following should be read in conjunction with the Registrants' Condensed Consolidated Financial Statements and the accompanying Notes and with the Registrants' 2015 Form 10-K. Capitalized terms and abbreviations are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted.

"Management's Discussion and Analysis of Financial Condition and Results of Operations" includes the following information:

• "Overview" provides a description of each Registrant's business strategy and a discussion of important financial and operational developments.

• "Results of Operations" for all registrants includes a "Statement of Income Analysis" which discusses significant changes in principal line items on the Statements of Income, comparing the three and six months ended June 30, 2016 with the same periods in 2015. For PPL, it also provides a detailed analysis of earnings by segment and a description of key factors expected to impact future earnings. The segment earnings discussion includes financial information prepared in accordance with GAAP as well as non-GAAP financial measures including "Earnings from Ongoing Operations" and "Margins". This discussion provides explanations of the non-GAAP financial measures and a reconciliation of the non-GAAP financial measures to the most comparable GAAP measure. For PPL Electric, LKE, LG&E and KU, a summary of earnings is also provided.

• "Financial Condition - Liquidity and Capital Resources" provides an analysis of the Registrants' liquidity positions and credit profiles. This section also includes a discussion of rating agency actions.

• "Financial Condition - Risk Management" provides an explanation of the Registrants' risk management programs relating to market and credit risk.

Overview

Introduction

(PPL)

PPL, headquartered in Allentown, Pennsylvania, is a utility holding company. PPL, through its regulated utility subsidiaries, delivers electricity to customers in the U.K., Pennsylvania, Kentucky, Virginia and Tennessee; delivers natural gas to customers in Kentucky; and generates electricity from power plants in Kentucky. In June 2015, PPL completed the spinoff of PPL Energy Supply which combined its competitive power generation businesses with those of Riverstone to form a new, stand-alone, publicly traded company named Talen Energy. See Note 8 in PPL's 2015 Form 10-K for additional information.

PPL's principal subsidiaries are shown below (* denotes SEC registrant).

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		PPL Corporation*
				PPL Capital Funding ●Provides financing for the operations of PPL and certain subsidiaries
PPL Global ●Engages in the regulated distribution of electricity in the U.K.		LKE*			PPL Electric* ●Engages in the regulated transmission and distribution of electricity in Pennsylvania
	LG&E* ●Engages in the regulated generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky		KU* ●Engages in the regulated generation, transmission, distribution and sale of electricity, primarily in Kentucky
U.K. Regulated Segment		Kentucky Regulated Segment			Pennsylvania Regulated Segment

PPL's reportable segments' results primarily represent the results of PPL Global, LKE and PPL Electric, except that the reportable segments are also allocated certain corporate level financing and other costs that are not included in the results of PPL Global, LKE and PPL Electric. PPL Global is not a registrant, however PPL Global's unaudited annual consolidated financial statements are furnished on a Form 8-K with the SEC.

In addition to PPL, the other Registrants included in this filing are as follows.

(PPL Electric)

PPL Electric, headquartered in Allentown, Pennsylvania, is a direct wholly owned subsidiary of PPL and a regulated public utility that is an electricity transmission and distribution service provider in eastern and central Pennsylvania. PPL Electric is subject to regulation as a public utility by the PUC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act. PPL Electric delivers electricity in its Pennsylvania service area and provides electricity supply to retail customers in that area as a PLR under the Customer Choice Act.

(LKE)

LKE, headquartered in Louisville, Kentucky, is a wholly owned subsidiary of PPL and a holding company that owns regulated utility operations through its subsidiaries, LG&E and KU, which constitute substantially all of LKE's assets. LG&E and KU are engaged in the generation, transmission, distribution and sale of electricity. LG&E also engages in the distribution and sale of natural gas. LG&E and KU maintain separate corporate identities and serve customers in Kentucky under their respective names. KU also serves customers in Virginia under the Old Dominion Power name and in Tennessee under the KU name.

(LG&E)

LG&E, headquartered in Louisville, Kentucky, is a wholly owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky. LG&E is subject to regulation as a public utility by the KPSC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act.

(KU)

KU, headquartered in Lexington, Kentucky, is a wholly owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity in Kentucky, Virginia and Tennessee. KU is subject to regulation as

73

a public utility by the KPSC, the VSCC and the Tennessee Regulatory Authority, and certain of its transmission and wholesale power activities are subject to the jurisdiction of the FERC under the Federal Power Act. KU serves its Virginia customers under the Old Dominion Power name and its Kentucky and Tennessee customers under the KU name.

Business Strategy

(All Registrants)

Following the June 1, 2015 spinoff of PPL Energy Supply, PPL completed its strategic transformation to a fully regulated business model consisting of seven diverse, high-performing utilities. These utilities are located in the U.K., Pennsylvania and Kentucky and each jurisdiction has different regulatory structures and customer classes. The Company believes this diverse portfolio provides strong earnings and dividend growth potential that will create significant value for its shareowners and positions PPL well for continued growth and success.

PPL's businesses of WPD, PPL Electric, LG&E and KU plan to achieve growth by providing efficient, reliable and safe operations and strong customer service, maintaining constructive regulatory relationships and achieving timely recovery of costs. These businesses are expected to achieve strong, long-term growth in rate base and RAV, as applicable, driven by planned significant capital expenditures to maintain existing assets and improve system reliability and, for LKE, LG&E and KU, to comply with federal and state environmental regulations related to coal-fired electricity generation facilities. Additionally, significant transmission rate base growth is expected through 2020 at PPL Electric.

For the U.S. businesses, our strategy is to recover capital project costs efficiently through various rate-making mechanisms, including periodic base rate case proceedings using forward test years, annual FERC formula rate mechanisms and other regulatory agency-approved recovery mechanisms designed to limit regulatory lag. In Kentucky, the KPSC has adopted a series of regulatory mechanisms (ECR, DSM, GLT, fuel adjustment clause, gas supply clause and recovery on construction work-in-progress) that reduce regulatory lag and provide timely recovery of and return on, as appropriate, prudently incurred costs. In addition, the KPSC requires a utility to obtain a CPCN prior to constructing a facility, unless the construction is an ordinary extension of existing facilities in the usual course of business or does not involve sufficient capital outlay to materially affect the utility's financial condition. Although such KPSC proceedings do not directly address cost recovery issues, the KPSC, in awarding a CPCN, concludes that the public convenience and necessity require the construction of the facility on the basis that the facility is the lowest reasonable cost alternative to address the need. In Pennsylvania, the FERC transmission formula rate, DSIC mechanism, Smart Meter Rider and other recovery mechanisms are in place to reduce regulatory lag and provide for timely recovery of and a return on prudently incurred costs.

Rate base growth in the domestic utilities is expected to result in strong earnings growth for the foreseeable future. Earnings from the U.K. Regulated segment are expected to decline from 2015 to 2016 during the transition to RIIO-ED1, as higher revenues resulting from the fast-track bonus are offset by higher levels of revenue profiling in the prior price control period (DPCR5) and a lower return on regulatory equity. In 2017, earnings are expected to decline mainly due to the unfavorable impact of lower GBP to U.S. dollar exchange rates. RAV growth is expected in the U.K. Regulated segment through the price control period and earnings are expected to grow after 2017 commensurate with RAV growth. See "Item 1. Business - Segment Information - U.K. Regulated Segment" of PPL's 2015 Form 10-K for additional information on RIIO-ED1.

To manage financing costs and access to credit markets, and to fund capital expenditures, a key objective of the Registrants is to maintain their investment grade credit ratings and adequate liquidity positions. In addition, the Registrants have financial and operational risk management programs that, among other things, are designed to monitor and manage exposure to earnings and cash flow volatility, as applicable, related to changes in interest rates, foreign currency exchange rates and counterparty credit quality. To manage these risks, PPL generally uses contracts such as forwards, options and swaps. See "Financial Condition - Risk Management" below for further information. Earnings generated by PPL's U.K. subsidiaries are subject to foreign currency translation risk. Due to the significant earnings contributed from WPD, PPL enters into foreign currency contracts to economically hedge the value of the GBP versus the U.S. dollar. As of June 30, 2016, PPL's exposure to changes in the value of the GBP versus the U.S. dollar related to budgeted earnings of the U.K. Regulated segment was hedged 87% for the remainder of 2016, and 89% and 41% for 2017 and 2018. See "Financial and Operational Developments - U.K. Membership in European Union" for a discussion of the subsequent settlement of certain of these hedges. The U.K. subsidiaries also have currency exposure to the U.S. dollar to the extent of their U.S. dollar denominated debt. To manage these risks, PPL generally uses contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency exchange contracts.

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As discussed above, a key component of this strategy is to maintain constructive relationships with regulators in all jurisdictions in which we operate (U.K., U.S. federal and state). This is supported by our strong culture of integrity and delivering on commitments to our customers, regulators and shareowners, and a commitment to continue to improve our customer service, reliability and efficiency of operations.

Financial and Operational Developments

(PPL)

U.K. Membership in European Union

Significant uncertainty exists concerning the effects of the June 23, 2016 referendum in favor of the U.K. withdrawal from the European Union, including whether formal withdrawal will occur and the nature and duration of negotiations between the U.K. and the European Union as to the terms of any withdrawal.

As of June 30, 2016, PPL was well-hedged against certain short-term fluctuations that may occur in the value of the GBP versus the U.S. dollar. As it relates to budgeted earnings, PPL's 2016 foreign currency exposure was 87% hedged for the remainder of the year at an average rate of $1.57 per GBP. In addition, at June 30, 2016, PPL's 2017 and 2018 foreign currency exposure was hedged 89% and 41% at an average rate of $1.58 and $1.56 per GBP. At June 30, 2016, hedges related to 2017 and 2018 anticipated earnings were valued at $296 million and were included in current and noncurrent "Price risk management assets" on the Balance Sheet. The notional amount of these hedges was approximately £1.3 billion (approximately $2.0 billion based on contracted rates) with termination dates from January 2017 through November 2018. In the third quarter of 2016, PPL settled the 2017 and 2018 hedges, resulting in approximately $310 million of cash received, and entered into new hedges at current market rates. The settlement will not have a material effect on earnings as the hedge values were previously marked to fair value and recognized in "Other Income (Expense) - net" on the Statement of Income each period. The settlement will be treated as a special item in the third quarter of 2016, as the hedges related to future earnings. The new hedges entered into include forward contracts for 2017 and a combination of forward contracts and zero cost collars for 2018. PPL is now 95% and 50% hedged for 2017 and 2018 at an average rate of $1.32 and $1.30 per GBP. These average rates are based on the forward contracts and the floors in the collars.

PPL cannot predict either the short-term impact to foreign exchange rates or long-term impact on PPL's financial condition that may be experienced as a result of any actions that may be taken by the U.K. government to withdraw from the European Union, although such impacts could be significant.

PPL consolidates WPD on a one-month lag. Therefore, the impact of the decrease in the GBP to U.S. dollar exchange rate that occurred subsequent to the U.K.'s vote on June 23, 2016 to withdraw from the European Union is not reflected in PPL's June 30, 2016 financial statements. Using the June 30, 2016 GBP to U.S. dollar exchange rate of $1.34 as opposed to the May 31, 2016 exchange rate of $1.46 would have resulted in an additional foreign currency translation loss of $499 million recorded in AOCI, primarily reflecting a $991 million decrease in PP&E and a $228 million decrease in goodwill, partially offset by a decrease of $606 million in long-term debt.

Regulatory Requirements

(PPL, LKE, LG&E and KU)

The businesses of LKE, LG&E and KU are subject to extensive federal, state and local environmental laws, rules and regulations, including those pertaining to CCRs, GHGs, ELGs, MATS and the Clean Power Plan. See Note 6, Note 10 and Note 16 to the Financial Statements for a discussion of the other significant environmental matters.

(All Registrants)

The Registrants cannot predict the impact that future regulatory requirements may have on their financial condition or results of operations.

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(PPL)

Discontinued Operations

The operations of PPL's Supply segment prior to the June 1, 2015 spinoff are included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the June 2015 Statement of Income.

See Note 8 to the Financial Statements for additional information related to the spinoff of PPL Energy Supply, including the components of Discontinued Operations.

U.K. Distribution Revenue Reduction

In December 2013, WPD and other U.K. DNOs announced agreements with the U.K. Department of Energy and Climate Change and Ofgem to a reduction of £5 per residential customer of electricity distribution revenues that otherwise would have been collected in the regulatory year beginning April 1, 2014. Full recovery of the revenue reduction in GBP, together with the associated carrying cost will occur in the regulatory year which began April 1, 2016. Under GAAP, WPD does not record a receivable for under-recovery of regulated income (which this reduction represents). As a result, revenues for the U.K. Regulated segment were adversely affected by $19 million ($15 million after-tax or $0.02 per share) in 2015 and $40 million ($31 million after-tax or $0.05 per share) in 2014. Revenues for the U.K. Regulated segment were positively affected by $10 million ($8 million after-tax or $0.01 per share) for the three and six months ended June 30, 2016. PPL projects revenues in 2016 will be positively affected by $40 million ($32 million after-tax or $0.05 per share) and revenues for 2017 will be positively affected by $17 million ($14 million after-tax or $0.02 per share).

Discount Rate Change for U.K. Pension Plans

In selecting the discount rate for its U.K. pension plans, WPD historically used a single weighted-average discount rate in the calculation of net periodic defined benefit cost. WPD began using individual spot rates to measure service cost and interest cost beginning with the calculation of 2016 net periodic defined benefit cost. For the three and six months endedJune 30, 2016, this change in discount rate resulted in lower net periodic defined benefit costs recognized on PPL's Statement of Income of $11 million ($9 million after-tax or $0.02 per share) and $22 million ($18 million after-tax or $0.03 per share). Based on current estimates, PPL expects this change to reduce 2016 net periodic defined benefit costs recognized on PPL's Statement of Income by $44 million ($36 million after-tax or $0.05 per share). See "Application of Critical Accounting Policies-Defined Benefits" in PPL's 2015 Form 10-K for additional information.

Results of Operations

(PPL)

The "Statement of Income Analysis" discussion addresses significant changes in principal line items on PPL's Statements of Income, comparing the three and six months ended June 30, 2016 with the same periods in 2015. The discussion for PPL provides a review of results by reportable segment. The segment earnings discussion includes financial information prepared in accordance with GAAP as well as non-GAAP financial measures, including “Earnings from Ongoing Operations” and “Margins”. This discussion provides explanations of the non-GAAP financial measures and a reconciliation of those measures to the most comparable GAAP measure. "Statement of Income Analysis and Segment Earnings" are presented separately for PPL.

Tables analyzing changes in amounts between periods within "Segment Earnings" are presented on a constant U.K. foreign currency exchange rate basis, where applicable, in order to isolate the impact of the change in the exchange rate on the item being explained. Results computed on a constant U.K. foreign currency exchange rate basis are calculated by translating current year results at the prior year weighted-average U.K. foreign currency exchange rate.

(PPL Electric, LKE, LG&E and KU)

A "Statement of Income Analysis, Earnings and Margins" is presented separately for PPL Electric, LKE, LG&E and KU.

The "Statement of Income Analysis" addresses significant changes in principal line items on the Statements of Income comparing the three and six months ended June 30, 2016 with the same periods in 2015 and provides a summary of earnings. The "Margins" discussion includes a reconciliation of non-GAAP financial measures to "Operating Income."

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(All Registrants)

The results for interim periods can be disproportionately influenced by numerous factors and developments and by seasonal variations. As such, the results of operations for interim periods do not necessarily indicate results or trends for the year or future periods.

PPL Statement of Income Analysis, Segment Earnings and Margins

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months								Six Months
	2016		2015			$ Change			2016		2015			$ Change
Operating Revenues	$	1,785	$	1,781		$	4		$	3,796	$	4,011		$	(215	)
Operating Expenses
Operation
Fuel	183		214			(31		)	380		467			(87		)
Energy purchases	147		170			(23		)	380		499			(119		)
Other operation and maintenance	425		467			(42		)	875		923			(48		)
Depreciation	231		216			15			460		432			28
Taxes, other than income	74		76			(2		)	153		162			(9		)
Total Operating Expenses	1,060		1,143			(83		)	2,248		2,483			(235		)
Other Income (Expense) - net	174		(102		)	276			235		(14		)	249
Interest Expense	224		215			9			448		424			24
Income Taxes	192		71			121			371		288			83
Income from Continuing Operations After Income Taxes	483		250			233			964		802			162
Income (Loss) from Discontinued Operations (net of income taxes)	—		(1,007		)	1,007			—		(912		)	912
Net Income (Loss)	$	483	$	(757	)	$	1,240		$	964	$	(110	)	$	1,074

Operating Revenues

The increase (decrease) in operating revenues for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Domestic:
PPL Electric Distribution price (a)	$	24		$	74
PPL Electric Distribution volume	—			(34		)
PPL Electric PLR Revenue (b)	(27		)	(104		)
PPL Electric Transmission Formula Rate	20			35
LKE Base rates	32			68
LKE Volumes	(4		)	(70		)
LKE Fuel and other energy prices (b)	(28		)	(74		)
LKE ECR	11			22
Other	—			(6		)
Total Domestic	28			(89		)

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	Three Months			Six Months
U.K.:
Price	23			(30		)
Volume	(5		)	(21		)
Foreign currency exchange rates	(29		)	(62		)
Other	(13		)	(13		)
Total U.K.	(24		)	(126		)
Total	$	4		$	(215	)

(a) Distribution rate case effective January 1, 2016, resulted in increases of $33 million and $80 million for the three and six months ended June 30, 2016.

(b) Decreases due to lower recoveries of fuel and energy purchases due to lower commodity costs at LKE and lower PLR energy purchases at PPL Electric as described below.

Fuel

Fuel decreased by $31 million for the three months ended June 30, 2016 compared with 2015, primarily due to a $28 million decrease in commodity costs.

Fuel decreased by $87 million for the six months endedJune 30, 2016 compared with 2015, primarily due to a $61 million decrease in commodity costs and a $26 million decrease in volumes primarily due to milder weather in the first quarter of 2016.

Energy Purchases

Energy purchases decreased by $23 million for the three months ended June 30, 2016 compared with 2015, primarily due to lower PLR prices in 2016.

Energy purchases decreased by $119 million for the six months endedJune 30, 2016 compared with 2015, primarily due to a $51 million decrease in PLR prices and a $40 million decrease in PLR volumes at PPL Electric and a $13 million decrease in natural gas prices and a $13 million decrease in natural gas volumes at LKE.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Domestic:
LKE coal plant operations and maintenance (a)	$	(13	)	$	(22	)
PPL Electric Act 129 costs incurred	(3		)	(7		)
PPL Electric vegetation management	3			6
PPL Electric payroll-related costs	(9		)	(12		)
PPL Electric storm costs	3			6
Corporate costs previously included in discontinued operations (b)	—			9
Other	(1		)	7
U.K.:
Network maintenance	8			15
Pension expense (c)	(21		)	(43		)
Foreign currency exchange rates	(4		)	(8		)
Other	(5		)	1
Total	$	(42	)	$	(48	)

(a) Represents the reduction of costs associated with the 2015 retirement of Cane Run units partially offset by Cane Run 7 operations.

(b) The increase was due to corporate costs allocated to PPL Energy Supply (and included in discontinued operations) prior to the spin. As a result of the spinoff on June 1, 2015, these corporate costs now remain in continuing operations.

(c) The decrease was primarily due to an increase in estimated returns on higher asset balances and lower interest cost due to a change in the discount rate methodology.

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Depreciation

Depreciation increased by $15 million and $28 million for the three and six months ended June 30, 2016 compared with 2015, primarily due to additional assets placed into service, primarily at the domestic utilities and WPD (partially offset by the impact of foreign currency exchange rates), net of retirements.

Other Income (Expense) - net

Other income (expense) - net increased by $276 million and $249 million for the three and six months ended June 30, 2016 compared with 2015, primarily due to changes in realized and unrealized gains (losses) on foreign currency contracts to economically hedge GBP denominated earnings from WPD.

Interest Expense 

The increase (decrease) in interest expense for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Long-term debt interest expense (a)	$	18		$	41
Foreign currency exchange rates	(6		)	(11		)
Other	(3		)	(6		)
Total	$	9		$	24

(a) The increase in both periods was primarily due to debt issuances at WPD in November 2015 and LG&E and KU in September 2015 as well as higher interest rates on bonds refinanced in September 2015 at LG&E and KU.

Income Taxes 

The increase (decrease) in income taxes for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Change in pre-tax income at current period tax rates	$	124		$	78
Valuation allowances adjustments	(2		)	1
Impact of U.K. income tax rates	(9		)	(1		)
Federal and state tax reserve adjustments (a)	12			12
Stock-based compensation (b)	(3		)	(11		)
Other	(1		)	4
Total	$	121		$	83

(a) During the three and six months ended June 30, 2015, PPL recorded a tax benefit to adjust the settled refund amount approved by Joint Committee on Taxation for the open audit years 1998-2011.

(b) During the three and six months ended June 30, 2016, PPL recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 to the Financial Statements for additional information.

See Note 5 to the Financial Statements for additional information.

Income (Loss) from Discontinued Operations (net of income taxes)

Income (Loss) from Discontinued Operations (net of income taxes) includes the results of operations of PPL Energy Supply, which was spun off from PPL on June 1, 2015 and substantially represents PPL's former Supply segment. See "Discontinued Operations" in Note 8 to the Financial Statements for additional information.

Segment Earnings

PPL's earnings by reportable segments for the periods ended June 30 were as follows:

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	Three Months								Six Months
	2016			2015			$ Change		2016			2015			$ Change
U.K. Regulated	$	345		$	190		$	155	$	634		$	565		$	69
Kentucky Regulated	76			47			29		188			156			32
Pennsylvania Regulated	78			49			29		172			136			36
Corporate and Other (a)	(16		)	(36		)	20		(30		)	(55		)	25
Discontinued Operations (b)	—			(1,007		)	1,007		—			(912		)	912
Net Income (Loss)	$	483		$	(757	)	$	1,240	$	964		$	(110	)	$	1,074

(a) Primarily represents financing and certain other costs incurred at the corporate level that have not been allocated or assigned to the segments, which are presented to reconcile segment information to PPL's consolidated results. 2015 also includes certain costs related to the spinoff of PPL Energy Supply. See Note 8 to the Financial Statements for additional information.

(b) As a result of the spinoff of PPL Energy Supply, substantially representing PPL's former Supply segment, the earnings of the Supply segment prior to the spinoff are included in Discontinued Operations. The three and six months ended June 30, 2015 includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and its estimated fair value as of the spinoff date, determined in accordance with applicable accounting rules under GAAP. See Note 8 to the Financial Statements for additional information.

Earnings from Ongoing Operations

Management utilizes "Earnings from Ongoing Operations" as a non-GAAP financial measure that should not be considered as an alternative to net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance. 

Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the effective tax rate of the entity where the activity is recorded. Special items include:

• Unrealized gains or losses on foreign currency-related economic hedges (as discussed below).

• Supply segment discontinued operations.

• Gains and losses on sales of assets not in the ordinary course of business.

• Impairment charges. 

• Workforce reduction and other restructuring effects.

• Acquisition and divestiture-related adjustments.

• Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.

Unrealized gains or losses on foreign currency economic hedges include the changes in fair value of foreign currency contracts used to hedge GBP-denominated anticipated earnings. The changes in fair value of these contracts are recognized immediately within GAAP earnings. Management believes that excluding these amounts from Earnings from Ongoing Operations until settlement of the contracts provides a better matching of the financial impacts of those contracts with the economic value of PPL's underlying hedged earnings. See Note 14 to the Financial Statements and "Risk Management" below for additional information on foreign currency-related economic activity.

PPL's Earnings from Ongoing Operations by reportable segment for the periods ended June 30 were as follows:

	Three Months									Six Months
	2016			2015			$ Change			2016			2015			$ Change
U.K. Regulated	$	241		$	243		$	(2	)	$	506		$	579		$	(73	)
Kentucky Regulated	76			59			17			188			168			20
Pennsylvania Regulated	78			49			29			172			136			36
Corporate and Other	(15		)	(22		)	7			(28		)	(35		)	7
Earnings from Ongoing Operations	$	380		$	329		$	51		$	838		$	848		$	(10	)

See "Reconciliation of Earnings from Ongoing Operations" below for a reconciliation of this non-GAAP financial measure to Net Income.

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U.K. Regulated Segment

The U.K. Regulated segment consists of PPL Global, which primarily includes WPD's regulated electricity distribution operations, the results of hedging the translation of WPD's earnings from GBP into U.S. dollars, and certain costs, such as U.S. income taxes, administrative costs and allocated financing costs. The U.K. Regulated segment represents 66% of PPL's Net Income for the six months ended June 30, 2016 and 41% of PPL's assets at June 30, 2016.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

	Three Months								Six Months
	2016		2015			$ Change			2016		2015			$ Change
Operating revenues	$	563	$	587		$	(24	)	$	1,158	$	1,284		$	(126	)
Other operation and maintenance	85		104			(19		)	182		214			(32		)
Depreciation	60		59			1			120		118			2
Taxes, other than income	35		37			(2		)	70		73			(3		)
Total operating expenses	180		200			(20		)	372		405			(33		)
Other Income (Expense) - net	172		(100		)	272			233		(12		)	245
Interest Expense	104		103			1			210		203			7
Income Taxes	106		(6		)	112			175		99			76
Net Income	345		190			155			634		565			69
Less: Special Items	104		(53		)	157			128		(14		)	142
Earnings from Ongoing Operations	$	241	$	243		$	(2	)	$	506	$	579		$	(73	)

The following after-tax gains (losses), which management considers special items, impacted the U.K. Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended June 30.

	Income Statement Line Item	Three Months					Six Months
		2016		2015			2016		2015
Foreign currency-related economic hedges, net of tax of ($56), $38, ($69), $18 (a)	Other Income (Expense)-net	$	104	$	(71	)	$	128	$	(34	)
WPD Midlands acquisition-related adjustment, net of tax of $0, $0, $0, ($1)	Other operation and maintenance	—		—			—		2
Settlement of certain income tax positions (b)	Income Taxes	—		18			—		18
Total special items		$	104	$	(53	)	$	128	$	(14	)

(a) Represents unrealized gains (losses) on contracts that economically hedge anticipated GBP-denominated earnings.

(b) Relates to the April 2015 settlement of the IRS audit for the tax years 1998-2011. See Note 5 to the Financial Statements for additional information.

The changes in the components of the U.K. Regulated segment's results between these periods are due to the factors set forth below, which reflect amounts classified as U.K. Gross Margins, the items that management considers special and the effects of movements in foreign currency exchange, including the effects of foreign currency hedge contracts, on separate lines and not in their respective Statement of Income line items.

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	Three Months			Six Months
U.K.
Gross margins	$	14		$	(55	)
Other operation and maintenance	11			23
Depreciation	(5		)	(10		)
Interest expense	(6		)	(18		)
Other	(3		)	(2		)
Income taxes	(5		)	17
U.S.
Interest expense and other	(3		)	(2		)
Income taxes	4			4
Foreign currency exchange, after-tax	(9		)	(30		)
Earnings from Ongoing Operations	(2		)	(73		)
Special items, after-tax	157			142
Net Income	$	155		$	69

U.K.

• See "Margins - Changes in Margins" for an explanation of U.K. Gross Margins.

• Lower other operation and maintenance for the three month period primarily due to $21 million from lower pension expense, partially offset by $8 million from higher network maintenance expense.

• Lower other operation and maintenance for the six month period primarily due to $43 million from lower pension expense, partially offset by $15 million from higher network maintenance expense.

Kentucky Regulated Segment

The Kentucky Regulated segment consists primarily of LKE's regulated electricity generation, transmission and distribution operations of LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. In addition, certain financing costs are allocated to the Kentucky Regulated segment. The Kentucky Regulated segment represents 20% of PPL's Net Income for the six months endedJune 30, 2016 and 35% of PPL's assets at June 30, 2016.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

	Three Months									Six Months
	2016			2015			$ Change			2016			2015			$ Change
Operating revenues	$	721		$	714		$	7		$	1,547		$	1,613		$	(66	)
Fuel	182			214			(32		)	380			467			(87		)
Energy purchases	28			28			—			94			120			(26		)
Other operation and maintenance	204			214			(10		)	406			423			(17		)
Depreciation	100			94			6			199			189			10
Taxes, other than income	15			15			—			30			29			1
Total operating expenses	529			565			(36		)	1,109			1,228			(119		)
Other Income (Expense) - net	(5		)	(5		)	—			(6		)	(6		)	—
Interest Expense	64			56			8			129			111			18
Income Taxes	47			41			6			115			112			3
Net Income	76			47			29			188			156			32
Less: Special Items	—			(12		)	12			—			(12		)	12
Earnings from Ongoing Operations	$	76		$	59		$	17		$	188		$	168		$	20

The following after-tax gains (losses), which management considers special items, impacted the Kentucky Regulated segment's results and are excluded from Earnings from Ongoing Operations during the periods ended June 30.

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	Income Statement Line Item	Three Months					Six Months
		2016		2015			2016		2015
Certain valuation allowances, net of tax of $0, $0, $0, $0 (a)	Income Taxes	$	—	$	(8	)	$	—	$	(8	)
LKE acquisition-related adjustment, net of tax of $0, $0, $0, $0 (b)	Other Income (Expense)-net	—		(4		)	—		(4		)
Total special items		$	—	$	(12	)	$	—	$	(12	)

(a) Recorded at LKE and represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized.

(b) Recorded at PPL and allocated to the Kentucky Regulated segment. The amount represents a settlement between E.ON AG (a German corporation and the indirect parent of E.ON US Investments Corp., the former parent of LKE) and PPL for a tax matter.

The changes in the components of the Kentucky Regulated segment's results between these periods are due to the factors set forth below, which reflect amounts classified as Kentucky Gross Margins and the items that management considers special on separate lines and not in their respective Statement of Income line items.

	Three Months			Six Months
Kentucky Gross Margins	$	33		$	37
Other operation and maintenance	12			17
Depreciation	(2		)	—
Taxes, other than income	—			(1		)
Other income (expense) - net	(4		)	(4		)
Interest Expense	(8		)	(18		)
Income Taxes	(14		)	(11		)
Special items, after-tax	12			12
Net Income	$	29		$	32

• See "Margins - Changes in Margins" for an explanation of Kentucky Gross Margins.

• Lower other operation and maintenance for the three and six month periods primarily due to lower coal plant operations and maintenance expense as a result of units retired in 2015 at the Cane Run plant.

• Higher interest expense for the three and six month periods primarily due to the September 2015 issuance of $550 million of incremental First Mortgage Bonds by LG&E and KU, higher interest rates on the September 2015 issuance of $500 million of First Mortgage Bonds by LG&E and KU used to retire the same amount of First Mortgage Bonds in November 2015 and $400 million of notes refinanced by LKE in November 2015.

• Higher income taxes for the three and six month periods primarily due to higher pre-tax income.

Pennsylvania Regulated Segment

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric. In addition, certain costs are allocated to the Pennsylvania Regulated segment. The Pennsylvania Regulated segment represents 18% of PPL's Net Income for the six months endedJune 30, 2016 and 22% of PPL's assets at June 30, 2016.

Net Income and Earnings from Ongoing Operations for the periods ended June 30 include the following results.

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	Three Months							Six Months
	2016		2015		$ Change			2016		2015		$ Change
Operating revenues	$	495	$	476	$	19		$	1,080	$	1,106	$	(26	)
Energy purchases
External	118		138		(20		)	285		365		(80		)
Intersegment	—		5		(5		)	—		14		(14		)
Other operation and maintenance	138		140		(2		)	288		273		15
Depreciation	62		52		10			121		103		18
Taxes, other than income	24		25		(1		)	53		60		(7		)
Total operating expenses	342		360		(18		)	747		815		(68		)
Other Income (Expense) - net	5		2		3			8		4		4
Interest Expense	32		33		(1		)	65		64		1
Income Taxes	48		36		12			104		95		9
Net Income	78		49		29			172		136		36
Less: Special Items (a)	—		—		—			—		—		—
Earnings from Ongoing Operations	$	78	$	49	$	29		$	172	$	136	$	36

(a) There are no items that management considers special for the periods presented.

The changes in the components of the Pennsylvania Regulated segment's results between these periods were due to the factors set forth below, which reflect amounts classified as Pennsylvania Gross Delivery Margins on a separate line and not in their respective Statement of Income line items.

	Three Months			Six Months
Pennsylvania Gross Delivery Margins	$	44		$	74
Other operation and maintenance	3			(15		)
Depreciation	(10		)	(18		)
Taxes, other than income	—			1
Other Income (Expense) - net	3			4
Interest Expense	1			(1		)
Income Taxes	(12		)	(9		)
Net Income	$	29		$	36

• See "Margins - Changes in Margins" for an explanation of Pennsylvania Gross Delivery Margins.

• Higher other operation and maintenance expense for the six month period primarily due to $9 million of higher corporate service costs allocated to PPL Electric, $6 million of higher vegetation management expenses, $5 million of higher costs for additional work done by outside vendors and $4 million of higher non-recoverable storm costs, partially offset by $12 million of lower payroll related costs.

• Higher depreciation expense for the three and six month periods primarily due to transmission and distribution additions placed into service related to the ongoing efforts to improve reliability and replace aging infrastructure, net of retirements.

• Higher income taxes for the three and six month periods primarily due to higher pre-tax income, partially offset by tax benefits related to the application of new stock based compensation accounting guidance.

Reconciliation of Earnings from Ongoing Operations

The following tables contain after-tax gains (losses), in total, which management considers special items, that are excluded from Earnings from Ongoing Operations and a reconciliation to PPL's "Net Income (Loss)" for the periods ended June 30.

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	2016 Three Months
	U.K. Regulated		KY Regulated		PA Regulated		Corporate and Other			Discontinued Operations		Total
Net Income (Loss)	$	345	$	76	$	78	$	(16	)	$	—	$	483
Less: Special Items (expense) benefit:
Foreign currency-related economic hedges, net of tax of ($56)	104		—		—		—			—		104
Spinoff of the Supply segment, net of tax of $0	—		—		—		(1		)	—		(1		)
Total Special Items	104		—		—		(1		)	—		103
Earnings from Ongoing Operations	$	241	$	76	$	78	$	(15	)	$	—	$	380

	2015 Three Months
	U.K. Regulated			KY Regulated			PA Regulated		Corporate and Other			Discontinued Operations			Total
Net Income (Loss)	$	190		$	47		$	49	$	(36	)	$	(1,007	)	$	(757	)
Less: Special Items (expense) benefit:
Foreign currency-related economic hedges, net of tax of $38	(71		)	—			—		—			—			(71		)
Spinoff of the Supply segment:
Discontinued operations, net of tax of $91	—			—			—		—			(1,007		)	(1,007		)
Transition and transaction costs, net of tax of ($3)	—			—			—		(12		)	—			(12		)
Employee transitional services, net of tax of $1	—			—			—		(1		)	—			(1		)
Separation benefits, net of tax of $1	—			—			—		(1		)	—			(1		)
Other:
Settlement of certain income tax positions	18			—			—		—			—			18
Certain valuation allowances, net of tax of $0	—			(8		)	—		—			—			(8		)
LKE acquisition-related adjustment, net of tax of $0	—			(4		)	—		—			—			(4		)
Total Special Items	(53		)	(12		)	—		(14		)	(1,007		)	(1,086		)
Earnings from Ongoing Operations	$	243		$	59		$	49	$	(22	)	$	—		$	329

	2016 Six Months
	U.K. Regulated		KY Regulated		PA Regulated		Corporate and Other			Discontinued Operations		Total
Net Income (Loss)	$	634	$	188	$	172	$	(30	)	$	—	$	964
Less: Special Items (expense) benefit:
Foreign currency-related economic hedges, net of tax of ($69)	128		—		—		—			—		128
Spinoff of the Supply segment, net of tax of $1	—		—		—		(2		)	—		(2		)
Total Special Items	128		—		—		(2		)	—		126
Earnings from Ongoing Operations	$	506	$	188	$	172	$	(28	)	$	—	$	838

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	2015 Six Months
	U.K. Regulated			KY Regulated			PA Regulated		Corporate and Other			Discontinued Operations			Total
Net Income (Loss)	$	565		$	156		$	136	$	(55	)	$	(912	)	$	(110	)
Less: Special Items (expense) benefit:
Foreign currency-related economic hedges, net of tax of $18	(34		)	—			—		—			—			(34		)
Spinoff of the Supply segment:
Discontinued operations, net of tax of $40	—			—			—		—			(912		)	(912		)
Transition and transaction costs, net of tax of ($1)	—			—			—		(15		)	—			(15		)
Employee transitional services, net of tax of $2	—			—			—		(3		)	—			(3		)
Separation benefits, net of tax of $1	—			—			—		(2		)	—			(2		)
Other:
WPD Midlands acquisition-related adjustment, net of tax of ($1)	2			—			—		—			—			2
Settlement of certain income tax positions	18			—			—		—			—			18
Certain valuation allowances, net of tax of $0	—			(8		)	—		—			—			(8		)
LKE acquisition-related adjustment, net of tax of $0	—			(4		)	—		—			—			(4		)
Total Special Items	(14		)	(12		)	—		(20		)	(912		)	(958		)
Earnings from Ongoing Operations	$	579		$	168		$	136	$	(35	)	$	—		$	848

Margins

Management also utilizes the following non-GAAP financial measures as indicators of performance for its businesses:

• "U.K. Gross Margins" is a single financial performance measure of the electricity distribution operations of the U.K. Regulated segment. In calculating this measure, direct costs such as connection charges from National Grid, which owns and manages the electricity transmission network in England and Wales, and Ofgem license fees (recorded in "Other operation and maintenance" on the Statements of Income) are deducted from operating revenues, as they are costs passed through to customers. As a result, this measure represents the net revenues from the delivery of electricity across WPD's distribution network in the U.K. and directly related activities.

• "Kentucky Gross Margins" is a single financial performance measure of the electricity generation, transmission and distribution operations of the Kentucky Regulated segment, LKE, LG&E and KU, as well as the Kentucky Regulated segment's, LKE's and LG&E's distribution and sale of natural gas. In calculating this measure, fuel, energy purchases and certain variable costs of production (recorded in "Other operation and maintenance" on the Statements of Income) are deducted from revenues. In addition, certain other expenses, recorded in "Other operation and maintenance", "Depreciation" and "Taxes, other than income" on the Statements of Income, associated with approved cost recovery mechanisms are offset against the recovery of those expenses, which are included in revenues. These mechanisms allow for direct recovery of these expenses and, in some cases, returns on capital investments and performance incentives. As a result, this measure represents the net revenues from electricity and gas operations.

• "Pennsylvania Gross Delivery Margins" is a single financial performance measure of the electricity transmission and distribution delivery operations of the Pennsylvania Regulated segment and PPL Electric. In calculating this measure, utility revenues and expenses associated with approved recovery mechanisms, including energy provided as a PLR, are offset with minimal impact on earnings. Costs associated with these mechanisms are recorded in "Energy purchases," "Other operation and maintenance," (which are primarily Act 129 and Universal Service program costs), and "Taxes, other than income," which is primarily gross receipts tax. This performance measure includes PLR energy purchases by PPL Electric from PPL EnergyPlus, which are reflected in "Energy purchases from affiliate" in the reconciliation tables. As a result of the June 2015 spinoff of PPL Energy Supply and the formation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric's purchases from Talen Energy Marketing subsequent to May 31, 2015 are reflected in "Energy Purchases" in the reconciliation tables. This measure represents the net revenues from the Pennsylvania Regulated segment's and PPL Electric's electricity delivery operations.

These measures are not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator of overall operating performance. Other companies may use different measures to analyze and report their results of operations.

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Management believes these measures provide additional useful criteria to make investment decisions. These performance measures are used, in conjunction with other information, by senior management and PPL's Board of Directors to manage operations and analyze actual results compared with budget.

Changes in Margins

The following table shows Margins by PPL's reportable segment and by component, as applicable, for the periods ended June 30 as well as the change between periods. The factors that gave rise to the changes are described following the table.

	Three Months							Six Months
	2016		2015		$ Change			2016		2015		$ Change
U.K.
U.K. Gross Margins	$	534	$	547	$	(13	)	$	1,090	$	1,204	$	(114	)
Impact of changes in foreign currency exchange rates					(27		)					(59		)
Change in U.K. Gross Margins excluding impact of foreign currency exchange rates					$	14						$	(55	)
Kentucky Regulated
Kentucky Gross Margins
LG&E	$	209	$	206	$	3		$	437	$	436	$	1
KU	262		232		30			559		523		36
LKE	$	471	$	438	$	33		$	996	$	959	$	37
Pennsylvania Regulated
Pennsylvania Gross Delivery Margins
Distribution	$	216	$	193	$	23		$	474	$	435	$	39
Transmission	111		90		21			218		183		35
Total	$	327	$	283	$	44		$	692	$	618	$	74

U.K. Gross Margins

U.K. Gross Margins, excluding the impact of changes in foreign currency exchange rates, increased for the three months ended June 30, 2016 compared with 2015 primarily due to $38 million from the April 1, 2016 price increase, which includes $10 million of the recovery of prior customer rebates, partially offset by $20 million from the impact of the April 1, 2015 price decrease resulting from the commencement of RIIO-ED1.

U.K. Gross Margins, excluding the impact of changes in foreign currency exchange rates, decreased for the six months ended June 30, 2016 compared with 2015 primarily due to $89 million from the April 1, 2015 price decrease resulting from the commencement of RIIO-ED1 and lower volumes of $21 million primarily due to milder weather, partially offset by $38 million from the April 1, 2016 price increase, which includes $10 million of the recovery of prior customer rebates, and $21 million of other revenue adjustments in 2016.

Kentucky Gross Margins

Kentucky Gross Margins increased for the three months ended June 30, 2016 compared with 2015 primarily due to higher base rates of $32 million ($1 million at LG&E and $31 million at KU) and returns on additional environmental capital investments of $6 million ($5 million at LG&E and $1 million at KU).

Kentucky Gross Margins increased for the six months ended June 30, 2016 compared with 2015 primarily due to higher base rates of $68 million ($4 million at LG&E and $64 million at KU) and returns on additional environmental capital investments of $10 million at LG&E. The increase in base rates was the result of new rates approved by the KPSC effective July 1, 2015. These increases were partially offset by lower sales volumes of $28 million ($9 million at LG&E and $19 million at KU) primarily driven by milder weather.

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Pennsylvania Gross Delivery Margins

Distribution

Distribution margins increased for the three months ended June 30, 2016 compared with 2015 primarily due to $24 million of higher base rates, effective January 1, 2016 as a result of the 2015 rate case.

Distribution margins increased for the six months ended June 30, 2016 compared with 2015 primarily due to $63 million of higher base rates, effective January 1, 2016, partially offset by a $25 million unfavorable impact of milder weather.

Transmission

Transmission margins increased for the three and six month periods ended June 30, 2016 compared with 2015 primarily due to returns on additional capital investments focused on replacing aging infrastructure and improving reliability.

Reconciliation of Margins

The following table contains the components from the Statement of Income that are included in the non-GAAP financial measures and a reconciliation to PPL's "Operating Income" for the periods ended June 30.

	2016 Three Months												2015 Three Months
	U.K. Gross Margins			Kentucky Gross Margins		PA Gross Delivery Margins		Other (a)			Operating Income (b)		U.K. Gross Margins			Kentucky Gross Margins		PA Gross Delivery Margins		Other (a)			Operating Income (b)
Operating Revenues	$	553	(c)	$	721	$	495	$	16		$	1,785	$	575	(c)	$	714	$	476	$	16		$	1,781
Operating Expenses
Fuel	—			182		—		1			183		—			214		—		—			214
Energy purchases	—			28		118		1			147		—			28		138		4			170
Energy purchases from affiliate	—			—		—		—			—		—			—		5		(5		)	—
Other operation and maintenance	19			26		28		352			425		28			24		27		388			467
Depreciation	—			13		—		218			231		—			9		—		207			216
Taxes, other than income	—			1		22		51			74		—			1		23		52			76
Total Operating Expenses	19			250		168		623			1,060		28			276		193		646			1,143
Total	$	534		$	471	$	327	$	(607	)	$	725	$	547		$	438	$	283	$	(630	)	$	638
	2016 Six Months												2015 Six Months
	U.K. Gross Margins			Kentucky Gross Margins		PA Gross Delivery Margins		Other (a)			Operating Income (b)		U.K. Gross Margins			Kentucky Gross Margins		PA Gross Delivery Margins		Other (a)			Operating Income (b)
Operating Revenues	$	1,137	(c)	$	1,547	$	1,080	$	32		$	3,796	$	1,261	(c)	$	1,613	$	1,106	$	31		$	4,011
Operating Expenses
Fuel	—			380		—		—			380		—			467		—		—			467
Energy purchases	—			94		285		1			380		—			120		365		14			499
Energy purchases from affiliate	—			—		—		—			—		—			—		14		(14		)	—
Other operation and maintenance	47			49		53		726			875		57			49		53		764			923
Depreciation	—			26		—		434			460		—			16		—		416			432
Taxes, other than income	—			2		50		101			153		—			2		56		104			162
Total Operating Expenses	47			551		388		1,262			2,248		57			654		488		1,284			2,483
Total	$	1,090		$	996	$	692	$	(1,230	)	$	1,548	$	1,204		$	959	$	618	$	(1,253	)	$	1,528

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(a) Represents amounts excluded from Margins.

(b) As reported on the Statements of Income.

(c) Excludes ancillary revenues of $10 million and $21 million for the three and six months ended June 30, 2016 and $12 million and $23 million for the three and six months ended June 30, 2015.

2016 Outlook

(PPL)

Higher reported earnings are expected in 2016 compared with 2015, primarily attributable to the results of the 2015 spinoff of the Supply segment. Higher earnings from ongoing operations are expected in 2016 compared with 2015, primarily attributable to increases in the Pennsylvania Regulated and Kentucky Regulated segments. The following projections and factors underlying these projections are provided for PPL's segments and the Corporate and Other category and the related Registrants.

(PPL's U.K. Regulated Segment)

Lower reported earnings are expected in 2016 compared with 2015, primarily driven by tax gains recorded in 2015. Slightly lower earnings from ongoing operations are projected in 2016 compared with 2015. This is due to higher interest expense, depreciation, the unfavorable impact of lower GBP exchange rates and income taxes, partially offset by higher revenues and lower operation and maintenance expense, including pension expense.

(PPL's Kentucky Regulated Segment and LKE, LG&E and KU)

Higher reported earnings and earnings from ongoing operations are projected in 2016 compared with 2015, primarily driven by electric and gas base rate increases effective July 1, 2015, higher returns on additional environmental capital investments, and lower operation and maintenance expense, partially offset by higher depreciation and higher interest expense.

(PPL's Pennsylvania Regulated Segment and PPL Electric)

Higher reported earnings and earnings from ongoing operations are projected in 2016 compared with 2015, primarily driven by higher base electricity rates for distribution effective January 1, 2016, and higher transmission earnings, partially offset by higher depreciation and a benefit received in 2015 from the release of a gross receipts tax reserve.

(PPL's Corporate and Other Category)

Relatively flat costs are projected in 2016 compared with 2015.

(All Registrants)

Earnings in future periods are subject to various risks and uncertainties. See "Forward-Looking Information," the rest of this Item 2, Notes 6 and 10 to the Financial Statements and "Item 1A. Risk Factors" in this Form 10-Q (as applicable) and "Item 1. Business" and "Item 1A. Risk Factors" in the Registrants' 2015 Form 10-K for a discussion of the risks, uncertainties and factors that may impact future earnings.

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PPL Electric: Statement of Income Analysis, Earnings and Margins

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months							Six Months
	2016		2015		$ Change			2016		2015		$ Change
Operating Revenues	$	495	$	476	$	19		$	1,080	$	1,106	$	(26	)
Operating Expenses
Operation
Energy purchases	118		138		(20		)	285		365		(80		)
Energy purchases from affiliate	—		5		(5		)	—		14		(14		)
Other operation and maintenance	137		140		(3		)	287		273		14
Depreciation	62		52		10			121		103		18
Taxes, other than income	24		25		(1		)	53		60		(7		)
Total Operating Expenses	341		360		(19		)	746		815		(69		)
Other Income (Expense) - net	5		2		3			8		4		4
Interest Expense	32		33		(1		)	65		64		1
Income Taxes	48		36		12			104		95		9
Net Income	$	79	$	49	$	30		$	173	$	136	$	37

Operating Revenues

The increase (decrease) in operating revenues for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Distribution volume	$	—		$	(34	)
Distribution price (a)	24			74
PLR (b)	(27		)	(104		)
Transmission Formula Rate	20			35
Other	2			3
Total	$	19		$	(26	)

(a) Distribution rate case effective January 1, 2016, resulted in increases of $33 million and $80 million for the three and six months ended June 30, 2016.

(b) Decreases due to lower recoveries of energy purchases as described below.

Energy Purchases

Energy purchases decreased by $20 million for the three months ended June 30, 2016 compared with 2015, primarily due to lower PLR prices in 2016.

Energy purchases decreased by $80 million for the six months ended June 30, 2016 compared with 2015 due to lower PLR prices of $51 million, lower PLR volumes of $26 million and lower capacity volumes of $3 million.

Energy Purchases from Affiliate

Energy purchases from affiliate decreased by $5 million and $14 million for the three and six months ended June 30, 2016 compared with 2015 as a result of the June 1, 2015 PPL Energy Supply spinoff.

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Other Operation and Maintenance

The increase (decrease) in other operation and maintenance for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Corporate service costs	$	—		$	9
Contractor-related expenses	1			6
Vegetation management	3			6
Storm costs	3			6
Payroll-related costs	(9		)	(12		)
Act 129	(3		)	(7		)
Universal service programs	2			3
Other	—			3
Total	$	(3	)	$	14

Depreciation

Depreciation increased by $10 million and $18 million for the three and six months ended June 30, 2016 compared with 2015, primarily due to additional assets placed into service, related to the ongoing efforts to ensure the reliability of the delivery system and the replacement of aging infrastructure, net of retirements.

Taxes, Other Than Income

Taxes, other than income decreased by $7 million for the six months endedJune 30, 2016 compared with 2015, primarily due to lower Pennsylvania gross receipts tax expense as a result of a decrease in retail electric revenues. This tax is included in "Pennsylvania Gross Delivery Margins."

Income Taxes

The increase (decrease) in income taxes for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Change in pre-tax income at current period tax rates	$	18		$	20
Stock-based compensation (a)	(2		)	(7		)
Federal and state tax reserve adjustments	(4		)	(4		)
Total	$	12		$	9

(a) During the three and six months ended June 30, 2016, PPL Electric recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 to the Financial Statements for additional information.

See Note 5to the Financial Statements for additional information.

Earnings

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net Income	$	79	$	49	$	173	$	136
Special item, gains (losses), after-tax (a)	—		—		—		—

(a) There are no items management considers special for the periods presented.

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Earnings increased for the three month period in 2016 compared with 2015 primarily due to higher base electricity rates for distribution effective January 1, 2016, and higher transmission margins from additional capital investments.

Earnings increased for the six month period in 2016 compared with 2015 primarily due to higher base electricity rates for distribution effective January 1, 2016, and higher transmission margins, partially offset by the unfavorable impact of milder weather, higher other operation and maintenance and higher depreciation.

The table below quantifies the changes in the components of Net Income between these periods, which reflect amounts classified as Pennsylvania Gross Delivery Margins on a separate line and not in their respective Statement of Income line items.

	Three Months			Six Months
Pennsylvania Gross Delivery Margins	$	44		$	74
Other operation and maintenance	4			(14		)
Depreciation	(10		)	(18		)
Taxes, other than income	—			1
Other Income (Expense) - net	3			4
Interest Expense	1			(1		)
Income Taxes	(12		)	(9		)
Net Income	$	30		$	37

Margins

"Pennsylvania Gross Delivery Margins" is a non-GAAP financial performance measure that management utilizes as an indicator of the performance of its business. See PPL's "Results of Operations - Margins" for information on why management believes this measure is useful and for explanations of the underlying drivers of the changes between periods.

The following tables contain the components from the Statements of Income that are included in this non-GAAP financial measure and a reconciliation to "Operating Income" for the periods ended June 30. 

	2016 Three Months							2015 Three Months
	PA Gross Delivery Margins		Other (a)			Operating Income (b)		PA Gross Delivery Margins		Other (a)			Operating Income (b)
Operating Revenues	$	495	$	—		$	495	$	476	$	—		$	476
Operating Expenses
Energy purchases	118		—			118		138		—			138
Energy purchases from affiliate	—		—			—		5		—			5
Other operation and maintenance	28		109			137		27		113			140
Depreciation	—		62			62		—		52			52
Taxes, other than income	22		2			24		23		2			25
Total Operating Expenses	168		173			341		193		167			360
Total	$	327	$	(173	)	$	154	$	283	$	(167	)	$	116

92

	2016 Six Months							2015 Six Months
	PA Gross Delivery Margins		Other (a)			Operating Income (b)		PA Gross Delivery Margins		Other (a)			Operating Income (b)
Operating Revenues	$	1,080	$	—		$	1,080	$	1,106	$	—		$	1,106
Operating Expenses
Energy purchases	285		—			285		365		—			365
Energy purchases from affiliate	—		—			—		14		—			14
Other operation and maintenance	53		234			287		53		220			273
Depreciation	—		121			121		—		103			103
Taxes, other than income	50		3			53		56		4			60
Total Operating Expenses	388		358			746		488		327			815
Total	$	692	$	(358	)	$	334	$	618	$	(327	)	$	291

(a) Represents amounts excluded from Margins.

(b) As reported on the Statements of Income.

LKE: Statement of Income Analysis, Earnings and Margins

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months									Six Months
	2016			2015			$ Change			2016			2015			$ Change
Operating Revenues	$	721		$	714		$	7		$	1,547		$	1,613		$	(66	)
Operating Expenses
Operation
Fuel	182			214			(32		)	380			467			(87		)
Energy purchases	28			28			—			94			120			(26		)
Other operation and maintenance	204			214			(10		)	406			423			(17		)
Depreciation	100			94			6			199			189			10
Taxes, other than income	15			15			—			30			29			1
Total Operating Expenses	529			565			(36		)	1,109			1,228			(119		)
Other Income (Expense) - net	(5		)	(1		)	(4		)	(6		)	(2		)	(4		)
Interest Expense	48			42			6			97			84			13
Interest Expense with Affiliate	4			1			3			8			1			7
Income Taxes	51			45			6			123			121			2
Net Income	$	84		$	60		$	24		$	204		$	177		$	27

Operating Revenues

The increase (decrease) in operating revenues for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Base rates	$	32		$	68
Volumes	(4		)	(70		)
Fuel and other energy prices (a)	(28		)	(74		)
ECR	11			22
Other	(4		)	(12		)
Total	$	7		$	(66	)

(a) Decreases due to lower recoveries of fuel and energy purchases due to lower commodity costs as described below.

93

Fuel

Fuel decreased $32 million for the three months ended June 30, 2016 compared with 2015, primarily due to a $28 million decrease in commodity costs.

Fuel decreased $87 million for the six months ended June 30, 2016 compared with 2015, due to a $61 million decrease in commodity costs and a $26 million decrease in volumes primarily due to milder weather in the first quarter of 2016.

Energy Purchases

Energy purchases decreased $26 million for the six months ended June 30, 2016 compared with 2015 due to $13 million of lower natural gas prices and a $13 million decrease in natural gas volumes resulting from milder weather during the first quarter of 2016.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Coal plant operations and maintenance (a)	$	(13	)	$	(22	)
Other	3			5
Total	$	(10	)	$	(17	)

(a) Represents the reduction of costs associated with the 2015 retirement of Cane Run units partially offset by Cane Run 7 operations.

Depreciation

Depreciation increased $6 million and $10 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to additions to PP&E, net of retirements.

Interest Expense

Interest expense increased $9 million and $20 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to the September 2015 issuance of $550 million of incremental First Mortgage Bonds by LG&E and KU, higher interest rates on the September 2015 issuance of $500 million of First Mortgage Bonds by LG&E and KU used to retire the same amount of First Mortgage Bonds in November 2015 and $400 million of notes refinanced in November 2015.

Income Taxes

Income taxes increased $6 million for the three months ended June 30, 2016 compared with 2015 primarily due to higher pre-tax income at current period tax rates of $11 million, partially offset by the establishment of a valuation allowance in 2015 on a deferred tax asset of $5 million.

Earnings

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2016		2015			2016		2015
Net Income	$	84	$	60		$	204	$	177
Special items, gains (losses), after-tax	—		(8		)	—		(8		)

Excluding special items, earnings increased for the three month period in 2016 compared with 2015 primarily due to higher base electricity rates effective July 1, 2015 and lower other operation and maintenance, partially offset by higher interest expense.

94

Excluding special items, earnings increased for the six month period in 2016 compared with 2015 primarily due to higher base electricity rates effective July 1, 2015 and lower other operation and maintenance, partially offset by higher interest expense and lower sales volumes primarily due to milder weather in the first quarter of 2016.

The table below quantifies the changes in the components of Net Income between these periods, which reflect amounts classified as Margins and an item that management considers special on separate lines and not in their respective Statement of Income line items.  

	Three Months			Six Months
Margin	$	33		$	37
Other operation and maintenance	12			17
Depreciation	(2		)	—
Taxes, other than income	—			(1		)
Other income (expense) - net	(4		)	(4		)
Interest expense	(9		)	(20		)
Income taxes	(14		)	(10		)
Special items, gains (losses), after-tax (a)	8			8
Net income	$	24		$	27

(a) See PPL's "Results of Operations - Segment Earnings - Kentucky Regulated Segment" for details of the special item.

Margins

"Margins" is a non-GAAP financial performance measure that management utilizes as an indicator of the performance of its business. See PPL's "Results of Operations - Margins" for an explanation of why management believes this measure is useful and the factors underlying changes between periods. Within PPL's discussion, LKE's Margins are referred to as "Kentucky Gross Margins."

The following tables contain the components from the Statements of Income that are included in this non-GAAP financial measure and a reconciliation to "Operating Income" for the periods ended June 30.

	2016 Three Months							2015 Three Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	721	$	—		$	721	$	714	$	—		$	714
Operating Expenses
Fuel	182		—			182		214		—			214
Energy purchases	28		—			28		28		—			28
Other operation and maintenance	26		178			204		24		190			214
Depreciation	13		87			100		9		85			94
Taxes, other than income	1		14			15		1		14			15
Total Operating Expenses	250		279			529		276		289			565
Total	$	471	$	(279	)	$	192	$	438	$	(289	)	$	149

95

	2016 Six Months							2015 Six Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	1,547	$	—		$	1,547	$	1,613	$	—		$	1,613
Operating Expenses
Fuel	380		—			380		467		—			467
Energy purchases	94		—			94		120		—			120
Other operation and maintenance	49		357			406		49		374			423
Depreciation	26		173			199		16		173			189
Taxes, other than income	2		28			30		2		27			29
Total Operating Expenses	551		558			1,109		654		574			1,228
Total	$	996	$	(558	)	$	438	$	959	$	(574	)	$	385

(a) Represents amounts excluded from Margins.

(b) As reported on the Statements of Income.

LG&E: Statement of Income Analysis, Earnings and Margins

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months									Six Months
	2016			2015			$ Change			2016			2015			$ Change
Operating Revenues
Retail and wholesale	$	317		$	323		$	(6	)	$	692		$	740		$	(48	)
Electric revenue from affiliate	6			8			(2		)	17			30			(13		)
Total Operating Revenues	323			331			(8		)	709			770			(61		)
Operating Expenses
Operation
Fuel	69			82			(13		)	147			185			(38		)
Energy purchases	23			23			—			85			111			(26		)
Energy purchases from affiliate	3			5			(2		)	5			8			(3		)
Other operation and maintenance	92			103			(11		)	179			199			(20		)
Depreciation	42			40			2			83			82			1
Taxes, other than income	7			7			—			15			14			1
Total Operating Expenses	236			260			(24		)	514			599			(85		)
Other Income (Expense) - net	(5		)	(1		)	(4		)	(5		)	(2		)	(3		)
Interest Expense	18			13			5			35			26			9
Income Taxes	24			22			2			59			55			4
Net Income	$	40		$	35		$	5		$	96		$	88		$	8

96

Operating Revenues

The increase (decrease) in operating revenues for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Base rates	$	1		$	4
Volumes	(1		)	(34		)
Fuel and other energy prices (a)	(13		)	(44		)
ECR	7			16
Other	(2		)	(3		)
Total	$	(8	)	$	(61	)

(a) Decreases due to lower recoveries of fuel and energy purchases due to lower commodity costs as described below.

Fuel

Fuel decreased $13 million for the three months ended June 30, 2016 compared with 2015, primarily due to a $9 million decrease in commodity costs.

Fuel decreased $38 million for the six months ended June 30, 2016 compared with 2015, due to a $17 million decrease in commodity costs and a $21 million decrease in volumes primarily due to milder weather in the first quarter of 2016.

Energy purchases

Energy purchases decreased $26 million for the six months ended June 30, 2016 compared with 2015 due to $13 million of lower natural gas prices and a $13 million decrease in natural gas volumes resulting from milder weather during the first quarter of 2016.

Other Operation and Maintenance

The increase (decrease) in other operation and maintenance for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Coal plant operations and maintenance (a)	$	(12	)	$	(21	)
Other	1			1
Total	$	(11	)	$	(20	)

(a) Represents the reduction of costs associated with the 2015 retirement of Cane Run units partially offset by Cane Run 7 operations.

Interest Expense

Interest expense increased $5 million and $9 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to the September 2015 issuance of $300 million of incremental First Mortgage Bonds and higher interest rates on the September 2015 issuance of $250 million of First Mortgage Bonds used to retire the same amount of First Mortgage Bonds in November 2015.

Earnings

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net Income	$	40	$	35	$	96	$	88
Special items, gains (losses), after-tax (a)	—		—		—		—

(a) There are no items management considers special for the periods presented.

97

Earnings increased for the three month period in 2016 compared with 2015 primarily due to higher returns on additional environmental capital investments and lower other operation and maintenance, partially offset by higher interest expense.

Earnings increased for the six month period in 2016 compared with 2015 primarily due to higher returns on additional environmental capital investments and lower other operation and maintenance, partially offset by higher interest expense and lower sales volumes primarily due to milder weather in the first quarter of 2016.

The table below quantifies the changes in the components of Net Income between these periods, which reflect amounts classified as Margins on a separate line and not in their respective Statement of Income line items.

	Three Months			Six Months
Margin	$	3		$	1
Other operation and maintenance	12			18
Depreciation	1			5
Other income (expense) - net	(4		)	(3		)
Interest expense	(5		)	(9		)
Income taxes	(2		)	(4		)
Net income	$	5		$	8

Margins

"Margins" is a non-GAAP financial performance measure that management utilizes as an indicator of the performance of its business. See PPL's "Results of Operations - Margins" for an explanation of why management believes this measure is useful and the factors underlying changes between periods. Within PPL's discussion, LG&E's Margins are included in "Kentucky Gross Margins."

The following tables contain the components from the Statements of Income that are included in this non-GAAP financial measure and a reconciliation to "Operating Income" for the periods ended June 30.

	2016 Three Months							2015 Three Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	323	$	—		$	323	$	331	$	—		$	331
Operating Expenses
Fuel	69		—			69		82		—			82
Energy purchases, including affiliate	26		—			26		28		—			28
Other operation and maintenance	11		81			92		10		93			103
Depreciation	7		35			42		4		36			40
Taxes, other than income	1		6			7		1		6			7
Total Operating Expenses	114		122			236		125		135			260
Total	$	209	$	(122	)	$	87	$	206	$	(135	)	$	71
	2016 Six Months							2015 Six Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	709	$	—		$	709	$	770	$	—		$	770
Operating Expenses
Fuel	147		—			147		185		—			185
Energy purchases, including affiliate	90		—			90		119		—			119
Other operation and maintenance	20		159			179		22		177			199
Depreciation	13		70			83		7		75			82
Taxes, other than income	2		13			15		1		13			14
Total Operating Expenses	272		242			514		334		265			599
Total	$	437	$	(242	)	$	195	$	436	$	(265	)	$	171

98

(a) Represents amounts excluded from Margins.

(b) As reported on the Statements of Income.

KU: Statement of Income Analysis, Earnings and Margins

Statement of Income Analysis

Net income for the periods ended June 30 includes the following results.

	Three Months							Six Months
	2016		2015		$ Change			2016			2015		$ Change
Operating Revenues
Retail and wholesale	$	404	$	391	$	13		$	855		$	873	$	(18	)
Electric revenue from affiliate	3		5		(2		)	5			8		(3		)
Total Operating Revenues	407		396		11			860			881		(21		)
Operating Expenses
Operation
Fuel	113		132		(19		)	233			282		(49		)
Energy purchases	5		5		—			9			9		—
Energy purchases from affiliate	6		8		(2		)	17			30		(13		)
Other operation and maintenance	107		109		(2		)	213			213		—
Depreciation	58		54		4			116			107		9
Taxes, other than income	8		8		—			15			15		—
Total Operating Expenses	297		316		(19		)	603			656		(53		)
Other Income (Expense) - net	1		2		(1		)	(1		)	1		(2		)
Interest Expense	23		19		4			47			38		9
Income Taxes	34		24		10			80			71		9
Net Income	$	54	$	39	$	15		$	129		$	117	$	12

Operating Revenue

The increase (decrease) in operating revenue for the periods ended June 30, 2016 compared with 2015 was due to:

	Three Months			Six Months
Base rates	$	31		$	64
Volumes	(4		)	(40		)
Fuel and other energy prices (a)	(19		)	(42		)
ECR	3			6
Other	—			(9		)
Total	$	11		$	(21	)

(a) Decreases due to lower recoveries of fuel and energy purchases due to lower commodity costs as described below.

Fuel

Fuel decreased $19 million for the three months ended June 30, 2016 compared with 2015, due to lower costs of commodities.

Fuel decreased $49 million for the six months ended June 30, 2016 compared with 2015, due to a $44 million decrease in commodity costs and a $5 million decrease in volumes primarily due to milder weather in the first quarter of 2016.

99

Energy Purchases from affiliate

Energy purchases from affiliate decreased $13 million for the six months ended June 30, 2016 compared with 2015, due to increased generation as a result of Cane Run Unit 7 being placed in-service during 2015.

Depreciation

Depreciation increased $4 million and $9 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to additional assets placed into service, net of retirements.

Interest Expense

Interest expense increased $4 million and $9 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to the September 2015 issuance of $250 million of incremental First Mortgage Bonds and higher interest rates on the September 2015 issuance of $250 million of First Mortgage Bonds used to retire the same amount of First Mortgage Bonds in November 2015. 

Income Taxes

Income taxes increased $10 million and $9 million for the three and six months ended June 30, 2016 compared with 2015 primarily due to higher pre-tax income.

Earnings

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Net Income	$	54	$	39	$	129	$	117
Special items, gains (losses), after-tax (a)	—		—		—		—

(a) There are no items management considers special for the periods presented.

Earnings increased for the three month period in 2016 compared with 2015 primarily due to higher base electricity rates effective July 1, 2015, partially offset by higher interest expense.

Earnings increased for the six month period in 2016 compared with 2015 primarily due to higher base electricity rates, effective July 1, 2015, partially offset by higher interest expense and lower sales volumes primarily due to milder weather in the first quarter of 2016.

The table below quantifies the changes in the components of Net Income between these periods, which reflect amounts classified as Margins on a separate line and not in their respective Statement of Income line items.

	Three Months			Six Months
Margin	$	30		$	36
Other operation and maintenance	3			2
Depreciation	(3		)	(5		)
Taxes, other than income	—			(1		)
Other income (expense) - net	(1		)	(2		)
Interest expense	(4		)	(9		)
Income taxes	(10		)	(9		)
Net income	$	15		$	12

Margins

"Margins" is a non-GAAP financial performance measure that management utilizes as an indicator of the performance of its business. See PPL's "Results of Operations - Margins" for an explanation of why management believes this measure is useful

100

and the factors underlying changes between periods. Within PPL's discussion, KU's Margins are included in "Kentucky Gross Margins."

The following tables contain the components from the Statements of Income that are included in this non-GAAP financial measure and a reconciliation to "Operating Income" for the periods ended June 30.

	2016 Three Months							2015 Three Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	407	$	—		$	407	$	396	$	—		$	396
Operating Expenses
Fuel	113		—			113		132		—			132
Energy purchases, including affiliate	11		—			11		13		—			13
Other operation and maintenance	15		92			107		14		95			109
Depreciation	6		52			58		5		49			54
Taxes, other than income	—		8			8		—		8			8
Total Operating Expenses	145		152			297		164		152			316
Total	$	262	$	(152	)	$	110	$	232	$	(152	)	$	80
	2016 Six Months							2015 Six Months
	Margins		Other (a)			Operating Income (b)		Margins		Other (a)			Operating Income (b)
Operating Revenues	$	860	$	—		$	860	$	881	$	—		$	881
Operating Expenses
Fuel	233		—			233		282		—			282
Energy purchases, including affiliate	26		—			26		39		—			39
Other operation and maintenance	29		184			213		27		186			213
Depreciation	13		103			116		9		98			107
Taxes, other than income	—		15			15		1		14			15
Total Operating Expenses	301		302			603		358		298			656
Total	$	559	$	(302	)	$	257	$	523	$	(298	)	$	225

(a) Represents amounts excluded from Margins.

(b) As reported on the Statements of Income.

Financial Condition

The remainder of this Item 2 in this Form 10-Q is presented on a combined basis, providing information, as applicable, for all Registrants.

101

Liquidity and Capital Resources

(All Registrants)

The Registrants had the following at:

	PPL (a)		PPL Electric		LKE		LG&E		KU
June 30, 2016
Cash and cash equivalents	$	492	$	35	$	16	$	8	$	8
Short-term debt	856		6		139		110		29
Notes payable with affiliate			—		176		—		—
December 31, 2015
Cash and cash equivalents	$	836	$	47	$	30	$	19	$	11
Short-term debt	916		—		265		142		48
Notes payable with affiliate			—		54		—		—

(a) At June 30, 2016, $88 million of cash and cash equivalents were denominated in GBP. If these amounts would be remitted as dividends, PPL would not anticipate a material incremental U.S. tax cost. Historically, dividends paid by foreign subsidiaries have been limited to distributions of the current year's earnings. See Note 5 to the Financial Statements in PPL's 2015 Form 10-K for additional information on undistributed earnings of WPD.

(PPL)

The Statements of Cash Flows separately report the cash flows of the discontinued operations in 2015. The "Operating Activities", "Investing Activities" and "Financing Activities" sections below included only the cash flows of continuing operations.

(All Registrants)

Net cash provided by (used in) operating, investing and financing activities for the six month periods ended June 30, and the changes between periods, were as follows.

	PPL			PPL Electric			LKE			LG&E			KU
2016
Operating activities	$	1,170		$	328		$	506		$	273		$	311
Investing activities	(1,347		)	(427		)	(439		)	(237		)	(201		)
Financing activities	(152		)	87			(81		)	(47		)	(113		)
2015
Operating activities	$	970		$	76		$	703		$	389		$	360
Investing activities	(1,575		)	(483		)	(626		)	(349		)	(275		)
Financing activities	(71		)	221			(85		)	(43		)	(90		)
Change  - Cash Provided (Used)
Operating activities	$	200		$	252		$	(197	)	$	(116	)	$	(49	)
Investing activities	228			56			187			112			74
Financing activities	(81		)	(134		)	4			(4		)	(23		)

Operating Activities

The components of the change in cash provided by (used in) operating activities for the six months ended June 30, 2016 compared with 2015 were as follows.

102

	PPL			PPL Electric			LKE			LG&E			KU
Change - Cash Provided (Used)
Net income	$	162		$	37		$	27		$	8		$	12
Non-cash components	(250		)	82			(43		)	(23		)	2
Working capital	308			117			(211		)	(100		)	(88		)
Defined benefit plan funding	65			33			18			9			6
Other operating activities	(85		)	(17		)	12			(10		)	19
Total	$	200		$	252		$	(197	)	$	(116	)	$	(49	)

(PPL)

PPL's cash provided by operating activities from continuing operations in 2016 increased $200 million in 2016 compared with 2015.

• Income from continuing operations increased by $162 million between the periods, but included a decrease in net non-cash charges of $250 million. These net non-cash charges included a $254 million increase in unrealized gains on derivatives.

• The $308 million increase in cash from changes in working capital was primarily due to an increase in taxes payable (primarily due to an increase in current income tax expense in 2016) and a decrease in accounts receivable, primarily due to milder winter weather in 2016.

• Defined benefit plan funding was $65 million lower in 2016.

(PPL Electric)

PPL Electric's cash provided by operating activities in 2016 increased $252 million in 2016 compared with 2015.

• The increase in non-cash components of $82 million in 2016 compared with 2015 was primarily due to an increase in deferred income tax expense and depreciation.

• The $117 million increase in cash from changes in working capital was primarily due to a decrease in prepayments (primarily due to a decrease in tax payments) and an increase in taxes payable (primarily due to an decrease in current income tax benefit in 2016).

• Defined benefit plan funding was $33 million lower in 2016.

(LKE)

LKE's cash provided by operating activities in 2016 decreased $197 million compared with 2015.

• The decrease in cash from working capital was driven primarily by lower tax payments received from PPL for the use of prior year excess tax depreciation deductions. Other decreases in cash were related to accounts receivable and coal and natural gas inventories due to milder weather in 2016, and unbilled revenues due to lower weather volatility during the measurement periods in 2016, partially offset by lower payments on accounts payable due to lower fuel purchases.

(LG&E)

LG&E's cash provided by operating activities in 2016 decreased $116 million compared with 2015.

• The decrease in cash from working capital was driven primarily by lower payments received from LKE for the use of prior year excess tax depreciation deductions. Other decreases in cash were related to accounts receivable and coal and natural gas inventories due to milder weather in 2016, and unbilled revenues due to lower weather volatility during the measurement periods in 2016, partially offset by lower payments on accounts payable due to lower fuel purchases.

(KU)

KU's cash provided by operating activities in 2016 decreased $49 million compared with 2015.

• The decrease in cash from working capital was driven primarily by lower payments received from LKE for the use of prior year excess tax depreciation deductions. Other decreases in cash were related to coal inventory due to milder weather in 2016, and unbilled revenues due to lower weather volatility during the measurement periods in 2016, partially offset by lower accounts payable from affiliates due to energy purchases from LG&E and charges for prepaid costs from LKS.

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Investing Activities

(All Registrants)

Expenditures for Property, Plant and Equipment

Investment in PP&E is the primary investing activity of the registrants. The change in expenditures for PP&E for the six months ended June 30, 2016 compared with 2015 was as follows.

	PPL		PPL Electric		LKE		LG&E		KU
Decrease	$	333	$	56	$	191	$	112	$	78

For PPL, the decrease in expenditures was due to lower project expenditures at WPD, PPL Electric Utilities, LG&E, and KU. The decrease in expenditures for WPD was primarily due to a decrease in expenditures to enhance system reliability associated with the end of the DPCR5 price control period and changes in foreign currency exchange rates. The decrease in expenditures for PPL Electric was primarily due to the completion of the Susquehanna-Roseland transmission project and the completion of the Northeast Pocono reliability project. The decrease in expenditures for LG&E was primarily driven by the completion of the environmental air projects at LG&E's Mill Creek plant. The decrease in expenditures for KU was primarily driven by the completion of the environmental air projects at KU's Ghent plant and the CCR project at KU's E.W. Brown plant.

Financing Activities

(All Registrants)

The components of the change in cash provided by (used in) financing activities for the six months ended June 30, 2016 compared with 2015 was as follows.

	PPL			PPL Electric			LKE			LG&E			KU
Change - Cash Provided (Used)
Debt issuance/retirement, net	$	248		$	—		$	—		$	—		$	—
Settlement of cross-currency swaps	46			—			—			—			—
Stock issuances/redemptions, net	(7		)	—			—			—			—
Dividends	(13		)	(10		)	—			(3		)	(32		)
Capital contributions/distributions, net	—			40			12			27			20
Change in short-term debt, net	(342		)	(162		)	(112		)	(27		)	(10		)
Notes payable with affiliate	—			—			105			—			—
Other financing activities	(13		)	(2		)	(1		)	(1		)	(1		)
Total	$	(81	)	$	(134	)	$	4		$	(4	)	$	(23	)

See Note 7 to the Financial Statements in this Form 10-Q for information on 2016 short and long-term debt activity, equity transactions and PPL dividends. See the Registrants' 2015 Form 10-K for information on 2015 activity.

Credit Facilities

The Registrants maintain credit facilities to enhance liquidity, provide credit support and provide a backstop to commercial paper programs. Amounts borrowed under these credit facilities are reflected in "Short-term debt" on the Balance Sheets. At June 30, 2016, the total committed borrowing capacity and the use of that capacity under these credit facilities was as follows:

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External

	Committed Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity
PPL Capital Funding Credit Facilities	$	1,150	$	—	$	337	$	813
PPL Electric Credit Facility	400		—		7		393
LKE Credit Facility	75		—		—		75
LG&E Credit Facility	500		—		110		390
KU Credit Facilities	598		—		227		371
Total LKE	1,173		—		337		836
Total U.S. Credit Facilities (a)	$	2,723	$	—	$	681	$	2,042
Total U.K. Credit Facilities (b)	£	1,055	£	269	£	—	£	786

(a) The commitments under the U.S. credit facilities are provided by a diverse bank group, with no one bank and its affiliates providing an aggregate commitment of more than the following percentages of the total committed capacity: PPL - 11%, PPL Electric - 7%, LKE - 21%, LG&E - 7% and KU - 37%.

(b) The amounts borrowed at June 30, 2016 were a USD-denominated borrowing of $200 million and GPB-denominated borrowings which equated to $191 million. The unused capacity reflects the USD-denominated borrowing amount borrowed in GBP of £138 million as of the date borrowed. At June 30, 2016, the USD equivalent of unused capacity under the U.K. committed credit facilities was $1.1 billion.

The commitments under the U.K. credit facilities are provided by a diverse bank group, with no one bank providing more than 13% of the total committed capacity.

See Note 7 to the Financial Statements for further discussion of the Registrants' credit facilities.

Intercompany (LKE, LG&E and KU)

	Committed Capacity		Borrowed		Other Used Capacity		Unused Capacity
LKE Credit Facility	$	225	$	176	$	—	$	49
LG&E Money Pool (a)	500		—		110		390
KU Money Pool (a)	500		—		29		471

(a) LG&E and KU participate in an intercompany money pool agreement whereby LKE, LG&E and/or KU make available funds up to $500 million at an interest rate based on a market index of commercial paper issues. However, the FERC has issued a maximum short-term debt limit for each utility at $500 million from any source.

See Note 11 to the Financial Statements for further discussion of intercompany credit facilities.

Commercial Paper(All Registrants)

PPL, 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, 2016:

	Capacity		Commercial Paper Issuances		Unused Capacity
PPL Capital Funding	$	1,000	$	320	$	680
PPL Electric	400		6		394
LG&E	350		110		240
KU	350		29		321
Total LKE	700		139		561
Total PPL	$	2,100	$	465	$	1,635

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Long-term Debt

(PPL)

In May 2016, PPL Capital Funding issued $650 million of 3.10% Senior Notes due 2026. PPL Capital Funding received proceeds of $645 million, net of a discount and underwriting fees, which will be used to invest in or make loans to subsidiaries of PPL, to repay short-term debt and for general corporate purposes.

In May 2016, WPD (East Midlands) borrowed £100 million at 0.4975% under a new ten-year index linked term loan agreement, which will be used for general corporate purposes.

In May 2016, WPD plc repaid the entire $460 million principal amount of its 3.90% Senior Notes upon maturity.

(PPL and PPL Electric)

In March 2016, the LCIDA issued $116 million of Pollution Control Revenue Refunding Bonds, Series 2016A due 2029 and $108 million of Pollution Control Revenue Refunding Bonds, Series 2016B due 2027 on behalf of PPL Electric. The bonds were issued bearing interest at an initial term rate of 0.90% through their mandatory purchase dates of September 1, 2017 and August 15, 2017. The proceeds of the bonds were used to redeem $116 million of 4.70% Pollution Control Revenue Refunding Bonds, 2005 Series A due 2029 and $108 million of 4.75% Pollution Control Revenue Refunding Bonds, 2005 Series B due 2027 previously issued by the LCIDA on behalf of PPL Electric.

In connection with the issuance of each of these new series of LCIDA bonds, PPL Electric entered into a loan agreement with the LCIDA pursuant to which the LCIDA has loaned to PPL Electric the proceeds of the LCIDA bonds on payment terms that correspond to the LCIDA bonds. In order to secure its obligations under the loan agreement, PPL Electric issued $224 million of First Mortgage Bonds under its 2001 Mortgage Indenture, which also have payment terms that correspond to the LCIDA bonds.

(PPL)

ATM Program

For the three and six months ended June 30, 2016, PPL did not issue any shares under the agreements. For 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.

Common Stock Dividends

In May 2016, PPL declared a quarterly common stock dividend, payable July 1, 2016, of 38 cents per share (equivalent to $1.52 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.

Capital Expenditures

Capital expenditure plans are revised periodically to reflect changes in operational, market and regulatory conditions. In the second quarter of 2016, PPL decreased its projected capital spending for the period 2016 through 2020 related to distribution facilities by approximately $1.1 billion from the $9.5 billion projection previously disclosed in PPL's 2015 Form 10‑K. The decreased projected capital spending results from a change in the forecasted GBP to U.S. dollar exchange rate from $1.60 to $1.30 for WPD expenditures that decreased each yearly estimate by approximately $220 million.

Contractual Obligations

In the second quarter of 2016, PPL decreased its estimated contractual cash obligations by approximately $1.7 billion from the $39.1 billion estimate previously disclosed in PPL's 2015 Form 10-K. The decrease was primarily a result of the change in the GBP to U.S. dollar exchange rate from $1.50 to $1.34 as of June 30, 2016 for WPD's obligations. The decreases in PPL's estimated contractual cash obligations by year were as follows.

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	Total			2016			2017 - 2018			2019 - 2020			After 2020
Total Change in Contractual Cash Obligations	$	(1,700	)	$	(30	)	$	(81	)	$	(98	)	$	(1,491	)

Rating Agency Actions

(All Registrants)

Moody's and S&P have periodically reviewed the credit ratings of the debt of the Registrants and their subsidiaries. Based on their respective independent reviews, the rating agencies may make certain ratings revisions or ratings affirmations.

A credit rating reflects an assessment by the rating agency of the creditworthiness associated with an issuer and particular securities that it issues. The credit ratings of the Registrants and their subsidiaries are based on information provided by the Registrants and other sources. The ratings of Moody's and S&P are not a recommendation to buy, sell or hold any securities of the Registrants or their subsidiaries. Such ratings may be subject to revisions or withdrawal by the agencies at any time and should be evaluated independently of each other and any other rating that may be assigned to the securities. The credit ratings of the Registrants and their subsidiaries affect their liquidity, access to capital markets and cost of borrowing under their credit facilities.

The rating agencies have taken the following actions related to the Registrants and their subsidiaries during 2016:

(PPL)

In February 2016, Moody's and S&P affirmed their commercial paper ratings for PPL Capital Funding's $1.0 billion commercial paper program.

In May 2016, Moody's and S&P assigned ratings of Baa2 and BBB+ to PPL Capital Funding's $650 million 3.10% Senior Notes due 2026.

In June 2016, S&P assigned a long-term issuer rating of A- and a short-term issuer rating of A-2 to PPL Capital Funding.

(PPL Electric)

In February 2016, Moody's and S&P affirmed their commercial paper ratings for PPL Electric's $400 million commercial paper program.

In February 2016, Moody's and S&P assigned ratings of A1 and A to LCIDA's $116 million 0.90% Pollution Control Revenue Refunding Bonds due 2029 and $108 million 0.90% Pollution Control Revenue Refunding Bonds due 2027, issued on behalf of PPL Electric.

Ratings Triggers

(PPL, LKE, LG&E and KU)

Various derivative and non-derivative contracts, including contracts for the sale and purchase of electricity and fuel, commodity transportation and storage, interest rate and foreign currency instruments (for PPL), contain provisions that require the posting of additional collateral or permit the counterparty to terminate the contract, if PPL's, LKE's, LG&E's or KU's or their subsidiaries' credit rating, as applicable, were to fall below investment grade. See Note 14 to the Financial Statements for a discussion of "Credit Risk-Related Contingent Features," including a discussion of the potential additional collateral requirements for PPL, LKE and LG&E for derivative contracts in a net liability position at June 30, 2016.

(All Registrants)

For additional information on the Registrants' liquidity and capital resources, see "Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Registrants' 2015 Form 10-K.

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Risk Management

Market Risk

(All Registrants)

See Notes 13 and 14 to the Financial Statements for information about the Registrants' risk management objectives, valuation techniques and accounting designations.

The forward-looking information presented below provides estimates of what may occur in the future, assuming certain adverse market conditions and model assumptions. Actual future results may differ materially from those presented. These are not precise indicators of expected future losses, but are rather only indicators of possible losses under normal market conditions at a given confidence level.

Interest Rate Risk

The Registrants and their subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. The Registrants and their subsidiaries utilize various financial derivative instruments to adjust the mix of fixed and floating interest rates in their debt portfolios, adjust the duration of their debt portfolios and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under the risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolios due to changes in the absolute level of interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

The following interest rate hedges were outstanding at June 30, 2016.

	Exposure Hedged		Fair Value, Net - Asset (Liability) (a)			Effect of a 10% Adverse Movement in Rates (b)			Maturities Ranging Through
PPL
Cash flow hedges
Cross-currency swaps (c)	$	802	$	93		$	(103	)	2028
Economic hedges
Interest rate swaps (d)	179		(56		)	(2		)	2033
LKE
Economic hedges
Interest rate swaps (d)	179		(56		)	(2		)	2033
LG&E
Economic hedges
Interest rate swaps (d)	179		(56		)	(2		)	2033

(a) Includes accrued interest, if applicable.

(b) Effects of adverse movements decrease assets or increase liabilities, as applicable, which could result in an asset becoming a liability. Sensitivities represent a 10% adverse movement in interest rates, except for cross-currency swaps which also includes a 10% adverse movement in foreign currency exchange rates.

(c) Cross-currency swaps are utilized to hedge the principal and interest payments of WPD's U.S. dollar-denominated senior notes. Changes in the fair value of these instruments are recorded in equity and reclassified into earnings in the same period during which the item being hedged affects earnings.

(d) Realized changes in the fair value of such economic hedges are recoverable through regulated rates and any subsequent changes in the fair value of these derivatives are included in regulatory assets or regulatory liabilities.

The Registrants are exposed to a potential increase in interest expense and to changes in the fair value of their debt portfolios. The estimated impact of a 10% adverse movement in interest rates on interest expense at June 30, 2016 was insignificant for PPL, PPL Electric, LKE, LG&E and KU. The estimated impact of a 10% adverse movement in interest rates on the fair value of debt at June 30, 2016 is shown below.

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	10% Adverse Movement in Rates
PPL	$	660
PPL Electric	139
LKE	177
LG&E	66
KU	99

Foreign Currency Risk (PPL)

PPL is exposed to foreign currency risk primarily through investments in U.K. affiliates. Under its risk management program, PPL may enter into financial instruments to hedge certain foreign currency exposures, including translation risk of expected earnings, firm commitments, recognized assets or liabilities, anticipated transactions and net investments.

The following foreign currency hedges were outstanding at June 30, 2016.

	Exposure Hedged		Fair Value, Net - Asset (Liability)		Effect of a 10% Adverse Movement in Foreign Currency Exchange Rates (a)			Maturities Ranging Through
Economic hedges (b)	£	1,731	$	393	$	(220	)	2018

(a) Effects of adverse movements decrease assets or increase liabilities, as applicable, which could result in an asset becoming a liability.

(b) To economically hedge the translation risk of expected earnings denominated in GBP.

(All Registrants)

Commodity Price Risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

• PPL Electric is exposed to commodity price risk from its obligation as PLR; however, its PUC-approved cost recovery mechanism substantially eliminates its exposure to this risk. PPL Electric also mitigates its exposure to commodity price risk by entering into full-requirement supply agreements to serve its PLR customers. These supply agreements transfer the commodity price risk associated with the PLR obligation to the energy suppliers.

• LG&E's and KU's rates include certain mechanisms for fuel and fuel-related expenses. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric Risk

PPL is exposed to volumetric risk through its subsidiaries as described below.

• WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO - ED1 price control period, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2015 Form 10-K for additional information on revenue recognition under RIIO - ED1.

• PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Credit Risk(All Registrants)

See Notes 13 and 14 to the Financial Statements in this Form 10-Q and "Risk Management - Credit Risk" in the Registrants' 2015 Form 10-K for additional information.

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Foreign Currency Translation(PPL)

The value of the British pound sterling fluctuates in relation to the U.S. dollar. Changes in this exchange rate resulted in a foreign currency translation loss of $199 million for the six months ended June 30, 2016, which primarily reflected a $398 million decrease to PP&E and $95 million decrease to goodwill partially offset by a decrease of $294 million to net liabilities. Changes in this exchange rate resulted in a foreign currency translation loss of $149 million for the six months ended June 30, 2015, which primarily reflected a $299 million decrease to PP&E and $77 million decrease to goodwill partially offset by a decrease of $227 million to net liabilities. The impact of foreign currency translation is recorded in AOCI.

Related Party Transactions(All Registrants)

The Registrants are not aware of any material ownership interests or operating responsibility by senior management in outside partnerships, including leasing transactions with variable interest entities, or other entities doing business with the Registrants. See Note 11 to the Financial Statements for additional information on related party transactions for PPL Electric, LKE, LG&E and KU.

Acquisitions, Development and Divestitures(All Registrants)

The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with, modify or terminate the projects. Any resulting transactions may impact future financial results. See Note 8 to the Financial Statements for information on the more significant activities.

Environmental Matters(All Registrants)

Extensive federal, state and local environmental laws and regulations are applicable to PPL's, LKE's, LG&E's and KU's air emissions, water discharges and the management of hazardous and solid waste, as well as other aspects of the Registrants' businesses. The cost of compliance or alleged non-compliance cannot be predicted with certainty but could be significant. In addition, costs may increase significantly if the requirements or scope of environmental laws or regulations, or similar rules, are expanded or changed. Costs may take the form of increased capital expenditures or operating and maintenance expenses, monetary fines, penalties or other restrictions. Many of these environmental law considerations are also applicable to the operations of key suppliers, or customers, such as coal producers and industrial power users, and may impact the cost for their products or their demand for the Registrants' services. Increased capital and operating costs are subject to rate recovery. PPL, PPL Electric, LKE, LG&E and KU can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities.

See Note 10 to the Financial Statements for a discussion of the more significant environmental matters including:

• Legal Matters,

• Climate Change,

• Coal Combustion Residuals,

• Effluent Limitations Guidelines,

• Mercury and Air Toxics Standards,

• National Ambient Air Quality Standards, and

• Superfund and Other Remediation.

Additionally, see "Item 1. Business - Environmental Matters" in the Registrants' 2015 Form 10-K for additional information on environmental matters.

New Accounting Guidance(All Registrants)

See Notes 2 and 18 to the Financial Statements for a discussion of new accounting guidance adopted and pending adoption.

Application of Critical Accounting Policies(All Registrants)

Financial condition and results of operations are impacted by the methods, assumptions and estimates used in the application of critical accounting policies. The following table summarizes the accounting policies by Registrant that are particularly important to an understanding of the reported financial condition or results of operations, and require management to make estimates or other judgments of matters that are inherently uncertain. See "Item 7. Combined Management's Discussion and

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Analysis of Financial Condition and Results of Operations" in the Registrants' 2015 Form 10-K for a discussion of each critical accounting policy.

		PPL
	PPL	Electric	LKE	LG&E	KU
Defined Benefits	X	X	X	X	X
Loss Accruals	X	X	X	X	X
Income Taxes	X	X	X	X	X
Goodwill Impairment	X		X	X	X
AROs	X		X	X	X
Price Risk Management	X
Regulatory Assets and Liabilities	X	X	X	X	X
Revenue Recognition - Unbilled Revenue		X	X	X	X

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PPL Corporation

PPL Electric Utilities Corporation

LG&E and KU Energy LLC

Louisville Gas and Electric Company

Kentucky Utilities Company

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Reference is made to "Risk Management" in "Item 2. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations."

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

The Registrants' principal executive officers and principal financial officers, based on their evaluation of the Registrants' disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934) have concluded that, as of June 30, 2016, the Registrants' disclosure controls and procedures are effective to ensure that material information relating to the Registrants and their consolidated subsidiaries is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms, particularly during the period for which this quarterly report has been prepared. The aforementioned principal officers have concluded that the disclosure controls and procedures are also effective to ensure that information required to be disclosed in reports filed under the Exchange Act is accumulated and communicated to management, including the principal executive and principal financial officers, to allow for timely decisions regarding required disclosure.

(b) Change in internal controls over financial reporting.

The Registrants' principal executive officers and principal financial officers have concluded that there were no changes in the Registrants' internal control over financial reporting during the Registrants' second fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrants' internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding pending administrative and judicial proceedings involving regulatory, environmental and other matters, which information is incorporated by reference into this Part II, see:

• "Item 3. Legal Proceedings" in each Registrant's 2015 Form 10-K; and

• Notes 6 and 10 to the Financial Statements.

Item 1A. Risk Factors

There have been no material changes in the Registrants' risk factors from those disclosed in "Item 1A. Risk Factors" of the Registrants' 2015 Form 10-K except the following:

(PPL)

Risks Relating to the Spinoff of PPL Energy Supply and Formation of Talen Energy Corporation

If the spinoff of PPL Energy Supply does not qualify as a tax-free distribution under Sections 355 and 368 of the Internal Revenue Code of 1986, as amended (the "Code"), including as a result of subsequent acquisitions of stock of PPL or Talen Energy, then PPL and/or its shareowners may be required to pay substantial U.S. federal income taxes.

Among other requirements, the completion of the June 1, 2015 spinoff of PPL Energy Supply and subsequent combination with RJS Power was conditioned upon PPL's receipt of a legal opinion of tax counsel to the effect that the spinoff will qualify as a reorganization pursuant to Section 368(a)(1)(D) and a tax-free distribution pursuant to Section 355 of the Code. Although receipt of such legal opinion was a condition to completion of the spinoff and subsequent combination, that legal opinion is not

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binding on the IRS. Accordingly, the IRS could reach conclusions that are different from those in the legal opinion. If, notwithstanding the receipt of such legal opinion, the IRS were to determine the distribution to be taxable, PPL would, and its shareowners could, depending on their individual circumstances, recognize a tax liability that could be substantial. In addition, notwithstanding the receipt of such legal opinion, if the IRS were to determine the merger to be taxable, PPL shareowners may, depending on their individual circumstances, recognize a tax liability that could be material.

In addition, the spinoff will be taxable to PPL pursuant to Section 355(e) of the Code if there is a 50% or greater change in ownership (by vote or value) of either PPL or Talen Energy, directly or indirectly, as part of a plan or series of related transactions that include the spinoff. Because PPL's shareowners collectively owned more than 50% of Talen Energy's common stock following the spinoff and subsequent combination, the combination alone will not cause the spinoff to be taxable to PPL under Section 355(e) of the Code. However, Section 355(e) of the Code might apply if acquisitions of stock of PPL before or after the spinoff, or of Talen Energy after the combination, were considered to be part of a plan or series of related transactions that include the spinoff. PPL is not aware of any such plan or series of transactions that include the spinoff.

On June 2, 2016, Talen Energy entered into a merger agreement with affiliates of Riverstone, pursuant to which a subsidiary of affiliates of Riverstone will merge with Talen Energy (the "Talen Merger"). Upon completion of the Talen Merger, which is subject to certain closing conditions, affiliates of Riverstone will convert their existing ownership of approximately 35% of the issued and outstanding common stock of Talen Energy into shares of the surviving corporation and each other share of Talen Energy common stock, subject to certain exceptions, will be cancelled and converted into the right to receive the cash merger consideration. Pursuant to the Separation Agreement entered into in consideration with the spinoff, receipt of a legal opinion of tax counsel to the effect that the spinoff will continue to qualify as a reorganization pursuant to Section 368(a)(1)(D) and a tax-free distribution pursuant to Section 355 of the Code following the completion of the Talen Merger shall be required to complete the Talen Merger. As described above, such legal opinion will not be binding on the IRS and accordingly, the IRS could reach conclusions that are different from those in the legal opinion. If, notwithstanding the receipt of such legal opinion, the IRS were to determine the distribution to be taxable, PPL and its shareowners could, depending on circumstances, recognize a tax liability that could be substantial.

Risks related to our U.K. segment

PPL’s earnings may be adversely affected as a result of the June 23, 2016 referendum in the U.K. to withdraw from the European Union.

Significant uncertainty exists concerning the effects of the June 23, 2016 referendum in favor of the U.K. withdrawal from the European Union, including whether formal withdrawal will occur and the nature and duration of negotiations between the U.K. and European Union as to the terms of any withdrawal. PPL cannot predict either the short-term impact on foreign exchange rates or long-term impact on PPL’s financial condition that may be experienced as a result of any actions that may be taken by the U.K. government to withdraw from the European Union, although such impacts could be significant.

Item 4. Mine Safety Disclosures

Not applicable.

Item 6. Exhibits

The following Exhibits indicated by an asterisk preceding the Exhibit number are filed herewith. The balance of the Exhibits has heretofore been filed with the Commission and pursuant to Rule 12(b)-32 are incorporated herein by reference. Exhibits indicated by a [_] are filed or listed pursuant to Item 601(b)(10)(iii) of Regulation S-K.

3(a)	-	Amended and Restated Articles of Incorporation of PPL Corporation, effective as of May 25, 2016 (Exhibit 3(i) to PPL Corporation Form 8-K Report (File No. 1-11459) dated May 26, 2016)
*4(a)	-	Amendment No. 12 to PPL Employee Stock Ownership Plan, dated April 27, 2016
*4(b)	-	Amendment No. 13 to PPL Employee Stock Ownership Plan, dated May 13, 2016
4(c)	-	Supplemental Indenture No. 15, dated as of May 17, 2016, among PPL Capital Funding, Inc., PPL Corporation and The Bank of New York Mellon (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee (Exhibit 4(b) to PPL Corporation Form 8-K Report (File No. 1-11459) dated May 17, 2016)

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*10(a)	-	Second Amendment to Revolving Credit Agreement, dated as of March 17, 2016, to the March 26, 2014 Existing Credit Agreement, between PPL Capital Funding, Inc., the Borrower, PPL Corporation, the Guarantor, and The Bank of Nova Scotia, as the Administrative Agent and as a Lender
10(b)	-	£100,000,000 Term Loan Agreement, dated May 24, 2016, between Western Power Distribution (East Midlands) PLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd. (Exhibit 10.1 to PPL Corporation Form 8-K Report (File No. 1-11459) dated May 26, 2016)
*12(a)	-	PPL Corporation and Subsidiaries Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
*12(b)	-	PPL Electric Utilities Corporation and Subsidiaries Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
*12(c)	-	LG&E and KU Energy LLC and Subsidiaries Computation of Ratio of Earnings to Fixed Charges
*12(d)	-	Louisville Gas and Electric Company Computation of Ratio of Earnings to Fixed Charges
*12(e)	-	Kentucky Utilities Company Computation of Ratio of Earnings to Fixed Charges
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended June 30, 2016, filed by the following officers for the following companies:
*31(a)	-	PPL Corporation's principal executive officer
*31(b)	-	PPL Corporation's principal financial officer
*31(c)	-	PPL Electric Utilities Corporation's principal executive officer
*31(d)	-	PPL Electric Utilities Corporation's principal financial officer
*31(e)	-	LG&E and KU Energy LLC's principal executive officer
*31(f)	-	LG&E and KU Energy LLC's principal financial officer
*31(g)	-	Louisville Gas and Electric Company's principal executive officer
*31(h)	-	Louisville Gas and Electric Company's principal financial officer
*31(i)	-	Kentucky Utilities Company's principal executive officer
*31(j)	-	Kentucky Utilities Company's principal financial officer
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, for the quarterly period ended June 30, 2016, furnished by the following officers for the following companies:
*32(a)	-	PPL Corporation's principal executive officer and principal financial officer
*32(b)	-	PPL Electric Utilities Corporation's principal executive officer and principal financial officer
*32(c)	-	LG&E and KU Energy LLC's principal executive officer and principal financial officer
*32(d)	-	Louisville Gas and Electric Company's principal executive officer and principal financial officer
*32(e)	-	Kentucky Utilities Company's principal executive officer and principal financial officer
101.INS	-	XBRL Instance Document
101.SCH	-	XBRL Taxonomy Extension Schema
101.CAL	-	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	-	XBRL Taxonomy Extension Definition Linkbase
101.LAB	-	XBRL Taxonomy Extension Label Linkbase
101.PRE	-	XBRL Taxonomy Extension Presentation Linkbase

114

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.

		PPL Corporation
		(Registrant)
Date:	August 9, 2016	/s/  Stephen K. Breininger
		Stephen K. Breininger Vice President and Controller
		(Principal Accounting Officer)
		PPL Electric Utilities Corporation
		(Registrant)
Date:	August 9, 2016	/s/  Marlene C. Beers
		Marlene C. Beers Controller
		(Principal Financial Officer and Principal Accounting Officer)

		LG&E and KU Energy LLC
		(Registrant)
		Louisville Gas and Electric Company
		(Registrant)
		Kentucky Utilities Company
		(Registrant)
Date:	August 9, 2016	/s/  Kent W. Blake
		Kent W. Blake Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

115

EX-4.A

Exhibit 4(a)

AMENDMENT NO. 12

TO

PPL EMPLOYEE STOCK OWNERSHIP PLAN

WHEREAS, PPL Services Corporation (“PPL”) has adopted the PPL Employee Stock Ownership Plan (“Plan”) effective January 1, 2000; and

WHEREAS, the Plan was amended and restated effective January 1, 2002, and subsequently amended by Amendment No. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11; and

NOW, THEREFORE, the Plan is hereby amended as follows:

I. Effective January 1, 2015, Article III Eligibility is amended to read as follows:

ARTICLE III
ELIGIBILITY

3.1 Eligibility.

(a)    All persons who were participants in the Plan immediately prior to January 1, 2015 and who are in the employ of a Participating Company on January 1, 2015 shall remain Participants hereunder as of such date. All Employees as of January 1, 2015 (but who are not eligible to participate under the preceding sentence) who have completed one year of Credited Service shall be Participants as of that date. No employee hired after January 1, 2015 who is not subject to a collective bargaining agreement shall be a Participant. Effective before July 31, 2006, other Employees shall become Participants on the first day of the calendar month next following the date on which an Employee completes one year of Credited Service, or if later, on which an individual becomes an

1

Employee. Effective on and after July 31, 2006, but prior to January 1, 2015 for employees not subject to a collective bargaining agreement, other Employees shall become Participants on the first day of the calendar month next following the date on which an individual becomes an Employee. A "year of Credited Service," for the purposes of this Article, shall require completion of at least 1,000 Hours of Service during the 12 months from commencement of employment. An Employee who fails to complete 1,000 Hours of Service during his initial 12 months of employment shall complete a year of Credited Service as of the end of any Plan Year in which he completes 1,000 Hours of Service; provided, however, that the first Plan Year during which such Employee shall have the opportunity to complete such 1,000 Hours of Service shall include the anniversary of his commencement of employment.

(b)    An Employee may elect in writing not to become a Participant by filing such election with the Employee Benefit Plan Board.

3.2    Participation. A Participant shall share in contributions under Article V for any Plan Year during which he (a) completes at least one Hour of Service and (b) receives Compensation. A Participant shall cease to be a Participant on the date on which his entire Account is distributed to him. Notwithstanding the foregoing, for Plan Year 1990, any Participant who is totally and permanently disabled shall share in contributions under Article V.

3.3    Reemployment after Break of Service. In the event a Participant ceases to be an Employee and subsequently again becomes an Employee, he shall not be readmitted as a Participant if he is not subject to a collective bargaining agreement.

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II.    Except as provided in this Amendment No. 12, all other provisions of the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, this Amendment No. 12 is executed this _____ day of _______________, 2016.

PPL Services Corporation

By: __________________________________

Thomas J. Lynch

Vice President – Human Resources

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EX-4.B

Exhibit 4(b)

AMENDMENT NO. 13

TO

PPL EMPLOYEE STOCK OWNERSHIP PLAN

WHEREAS, PPL Services Corporation (“PPL”) has adopted the PPL Employee Stock Ownership Plan (“Plan”) effective January 1, 2000; and

WHEREAS, the Plan was amended and restated effective January 1, 2002, and subsequently amended by Amendment No. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12; and

NOW, THEREFORE, the Plan is hereby amended as follows:

I. Effective February 11, 2016, Appendix A is amended to read as follows:

Appendix A

Participating Company

Name		Effective Date
1.	PPL Services Corporation	July 1, 2000
2.	PPL Electric Utilities Corporation	January 1, 1975
3.	PPL EnergyPlus, LLC	July 14, 1998
		(not participating as of June 1, 2015)
4.	PPL Generation, LLC	July 1, 2000
		(not participating as of June 1, 2015)
5.	PPL Brunner Island, LLC	July 1, 2000
		(not participating as of June 1, 2015)
6.	PPL Holtwood, LLC	July 1, 2000
		(not participating as of June 1, 2015)
7.	PPL Martins Creek, LLC	July 1, 2000
		(not participating as of June 1, 2015)
8.	PPL Montour, LLC	July 1, 2000

		(not participating as of June 1, 2015)
9.	PPL Susquehanna, LLC	July 1, 2000
		(not participating as of June 1, 2015)
10.	PPLSolutions, LLC	January 1, 2002
11.	Lower Mount Bethel Energy, LLC	September 30, 2002
		(not participating as of June 1, 2015)
12.	PPL Development Company, LLC	January 1, 2006
13.	PPL Global, LLC	January 1, 2006
14.	PPL Energy Services Group, LLC	September 25, 2006
		(not participating as of June 1, 2015)
15.	PPL Interstate Energy Company	January 1, 2008
		(not participating as of June 1, 2015)
16.	PPL Strategic Development, LLC	January 1, 2012
17.	PPL EnergyPlus Retail, LLC	June 23, 2011
		(not participating as of June 1, 2015)
18.	PPL Energy Supply, LLC	September 17, 2012
		(not participating as of June 1, 2015)
19.	PPL TransLink, Inc.	February 11, 2016

II.    Except as provided in this Amendment No. 13, all other provisions of the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, this Amendment No. 13 is executed this _____ day of _______________, 2016.

EMPLOYEE BENEFIT PLAN BOARD

By: _______________________________
Julissa Burgos
Chair, Employee Benefit Plan Board

EX-10.A

Exhibit 10(a)

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT

THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT, dated as of March [17], 2016 (this “Amendment”), to the Existing Credit Agreement (as defined below) is made by PPL CAPITAL FUNDING, INC., a Delaware corporation (the “Borrower”), PPL CORPORATION, a Pennsylvania corporation (the “Guarantor”) and each Lender (such capitalized term and other capitalized terms used in this preamble and the recitals below to have the meanings set forth in, or are defined by reference in, Article I below).

W I T N E S S E T H:

WHEREAS, the Borrower, the Guarantor, the Lenders and The Bank of Nova Scotia, as the Administrative Agent, Sole Lead Arranger and Sole Bookrunner, are all parties to the Revolving Credit Agreement, dated as of March 26, 2014 (as amended or otherwise modified prior to the date hereof, the “Existing Credit Agreement”, and as amended by this Amendment and as the same may be further amended, supplemented, amended and restated or otherwise modified from time to time, the “Credit Agreement”); and

WHEREAS, the Borrower has requested that the Lenders amend the Existing Credit Agreement in order to extend the maturity date therein and the Lenders are willing to modify the Existing Credit Agreement on the terms and subject to the conditions hereinafter set forth;

NOW, THEREFORE, the parties hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1. Certain Definitions. The following terms when used in this Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof):

“Amendment” is defined in the preamble.

“Borrower” is defined in the preamble.

“Credit Agreement” is defined in the first recital.

“Existing Credit Agreement” is defined in the first recital.

“Guarantor” is defined in the preamble.

SECTION 1.2. Other Definitions. Terms for which meanings are provided in the Existing Revolving Credit Agreement are, unless otherwise defined herein or the context otherwise requires, used in this Amendment with such meanings.

ARTICLE II

AMENDMENTS TO THE EXISTING CREDIT AGREEMENT

Effective as of the date hereof, but subject to the satisfaction of the conditions in Article III,

(a)Section 1.1 of the Existing Credit Agreement is hereby amended by amending and restating the definition of “Termination Date” as follows:

“Termination Date” means the earliest to occur of (i) March 17, 2017 and (ii) such earlier date upon which all Commitments shall have been terminated in their entirety in accordance with this Agreement.

(b)Sections 5.04(a), 5.04(c), 5.05 and 5.13 of the Existing Credit Agreement are hereby amended by replacing references to “December 31, 2014” with “December 31, 2015”.

ARTICLE III

CONDITIONS TO EFFECTIVENESS

This Amendment and the amendments contained herein shall become effective as of the date hereof when each of the conditions set forth in this Article III shall have been fulfilled to the satisfaction of the Administrative Agent.

SECTION 3.1. Counterparts. The Administrative Agent shall have received counterparts hereof executed on behalf of the Borrower, the Guarantor and the each of the Lenders.

SECTION 3.2. Costs and Expenses, etc. The Administrative Agent shall have received for the account of each Lender, all fees, costs and expenses due and payable pursuant to Section 9.03 of the Credit Agreement, if then invoiced.

SECTION 3.3. Resolutions, etc. The Administrative Agent shall have received from the Borrower and the Guarantor (i) a copy of a good standing certificate for such Loan Party, dated a date reasonably close to the date hereof and (ii) a certificate, dated as of the date hereof, of a Secretary or an Assistant Secretary of each Loan Party certifying (A) that attached thereto is a true, correct and complete copy of (x) the articles or certificate of incorporation of such Loan Party certified by the Secretary of State (or equivalent body) of the jurisdiction of incorporation of such Loan Party and (y) the bylaws of such Loan Party, and (b) that attached thereto is a true, correct and complete copy of resolutions adopted by the board of directors of such Loan Party authorizing the execution, delivery and performance of this Amendment and each other document delivered in connection herewith and that such resolutions have not been amended and are in full force.

SECTION 3.4. Opinion of Counsel. The Administrative Agent shall have received an opinion, dated the date hereof and addressed to the Administrative Agent and all Lenders, from counsel to the Borrower, in form and substance satisfactory to the Administrative Agent.

2

SECTION 3.5. Satisfactory Legal Form. The Administrative Agent and its counsel shall have received all information, and such counterpart originals or such certified or other copies of such materials, as the Administrative Agent or its counsel may reasonably request, and all legal matters incident to the effectiveness of this Amendment shall be satisfactory to the Administrative Agent and its counsel. All documents executed or submitted pursuant hereto or in connection herewith shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel.

ARTICLE IV

MISCELLANEOUS

SECTION 4.1. Cross-References. References in this Amendment to any Article or Section are, unless otherwise specified, to such Article or Section of this Amendment.

SECTION 4.2. Loan Document Pursuant to Existing Credit Agreement. This Amendment is a Loan Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with all of the terms and provisions of the Existing Credit Agreement, as amended hereby, including Article IX thereof.

SECTION 4.3. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

SECTION 4.4. Counterparts. This Amendment may be executed by the parties hereto in several counterparts, each of which when executed and delivered shall be an original and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION 4.5. Governing Law. THIS AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5‑1401 AND 5‑1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

SECTION 4.6. Full Force and Effect; Limited Amendment. Except as expressly amended hereby, all of the representations, warranties, terms, covenants, conditions and other provisions of the Existing Credit Agreement and the Loan Documents shall remain unchanged and shall continue to be, and shall remain, in full force and effect in accordance with their respective terms. The amendments set forth herein shall be limited precisely as provided for herein to the provisions expressly amended herein and shall not be deemed to be an amendment to, waiver of, consent to or modification of any other term or provision of the Existing Credit Agreement or any other Loan Document or of any transaction or further or future action on the part of any Obligor which would require the consent of the Lenders under the Existing Credit Agreement or any of the Loan Documents.

SECTION 4.7. Representations and Warranties. In order to induce the Lenders to execute and deliver this Amendment, the Borrower and Guarantor each hereby represents and warrants to the Lenders, on the date this Amendment becomes effective pursuant to Article III, that both before

3

and after giving effect to this Amendment, all representations and warranties set forth in Article V of the Credit Agreement are true and correct as of such date, except to the extent that any such statement expressly relates to an earlier date (in which case such statement was true and correct on and as of such earlier date).

4

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first above written.

PPL CAPITAL FUNDING, INC., as the Borrower

By:__________________________

Name:

Title:

PPL CORPORATION, as the Guarantor

By:__________________________

Name:

Title:

THE BANK OF NOVA SCOTIA, as the Administrative Agent and as a Lender

By:__________________________

Name:

Title:

5

EX-12.A

Exhibit 12(a)

PPL CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

(Millions of Dollars)

	Six Months Ended June 30,		Years Ended December 31, (a)
	2016		2015			2014		2013		2012		2011
Earnings, as defined:
Income from Continuing Operations Before Income Taxes	$	1,335	$	2,068		$	2,129	$	1,728	$	1,406	$	922
Adjustment to reflect earnings from equity method investments on a cash basis (b)	—		(1		)	—		—		34		—
	1,335		2,067			2,129		1,728		1,440		922
Total fixed charges as below	459		1,054			1,095		1,096		1,065		1,022
Less:
Capitalized interest	2		11			11		11		6		4
Preferred security distributions of subsidiaries on a pre-tax basis	—		—			—		—		5		23
Interest expense and fixed charges related to discontinued operations	—		150			186		235		235		231
Total fixed charges included in Income from Continuing Operations Before Income Taxes	457		893			898		850		819		764
Total earnings	$	1,792	$	2,960		$	3,027	$	2,578	$	2,259	$	1,686
Fixed charges, as defined:
Interest charges (c)	$	454	$	1,038		$	1,073	$	1,058	$	1,019	$	955
Estimated interest component of operating rentals	5		16			22		38		41		44
Preferred security distributions of subsidiaries on a pre-tax basis	—		—			—		—		5		23
Total fixed charges (d)	$	459	$	1,054		$	1,095	$	1,096	$	1,065	$	1,022
Ratio of earnings to fixed charges	3.9		2.8			2.8		2.4		2.1		1.7
Ratio of earnings to combined fixed charges and preferred stock dividends (e)	3.9		2.8			2.8		2.4		2.1		1.7

(a)	Reflects PPL's Supply segment as Discontinued Operations. See Note 8 to the Financial Statements for additional information.
(b)	Includes other-than-temporary impairment loss of $25 million in 2012.
(c)	Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
(d)	Interest on unrecognized tax benefits is not included in fixed charges.
(e)	PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.

EX-12.B

Exhibit 12(b)

PPL ELECTRIC UTILITIES CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED STOCK DIVIDENDS

(Millions of Dollars)

	Six Months Ended June 30,		Years Ended December 31,
	2016		2015		2014		2013		2012		2011
Earnings, as defined:
Income Before Income Taxes	$	277	$	416	$	423	$	317	$	204	$	257
Total fixed charges as below	71		139		131		117		107		105
Total earnings	$	348	$	555	$	554	$	434	$	311	$	362
Fixed charges, as defined:
Interest charges (a)	$	69	$	135	$	127	$	113	$	104	$	102
Estimated interest component of operating rentals	2		4		4		4		3		3
Total fixed charges (b)	$	71	$	139	$	131	$	117	$	107	$	105
Ratio of earnings to fixed charges	4.9		4.0		4.2		3.7		2.9		3.4
Preferred stock dividend requirements on a pre-tax basis	$	—	$	—	$	—	$	—	$	6	$	21
Fixed charges, as above	71		139		131		117		107		105
Total fixed charges and preferred stock dividends	$	71	$	139	$	131	$	117	$	113	$	126
Ratio of earnings to combined fixed charges and preferred stock dividends	4.9		4.0		4.2		3.7		2.8		2.9

(a)	Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
(b)	Interest on unrecognized tax benefits is not included in fixed charges.

EX-12.C

Exhibit 12(c)

LG&E AND KU ENERGY LLC AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of Dollars)

	Six Months Ended June 30,		Years Ended December 31,
	2016		2015			2014			2013			2012		2011
Earnings, as defined:
Income from Continuing Operations Before Income Taxes	$	327	$	603		$	553		$	551		$	331	$	419
Adjustment to reflect earnings from equity method investments on a cash basis (a)	—		(1		)	(1		)	(1		)	33		(1		)
	327		602			552			550			364		418
Total fixed charges as below	109		189			173			151			157		153
Total earnings	$	436	$	791		$	725		$	701		$	521	$	571
Fixed charges, as defined:
Interest charges (b) (c)	$	105	$	181		$	167		$	145		$	151	$	147
Estimated interest component of operating rentals	4		8			6			6			6		6
Total fixed charges	$	109	$	189		$	173		$	151		$	157	$	153
Ratio of earnings to fixed charges	4.0		4.2			4.2			4.6			3.3		3.7

(a)	Includes other-than-temporary impairment loss of $25 million in 2012.
(b)	Includes interest on long-term and short-term debt, as well as amortization of loss on reacquired debt and amortization of debt discount, expense and premium - net.
(c)	Includes a credit for amortization of a fair market value adjustment of $7 million in 2013.

EX-12.D

Exhibit 12(d)

LOUISVILLE GAS AND ELECTRIC COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of Dollars)

	Six Months Ended June 30,		Years Ended December 31,
	2016		2015		2014		2013		2012		2011
Earnings, as defined:
Income Before Income Taxes	$	155	$	299	$	272	$	257	$	192	$	195
Total fixed charges as below	37		61		51		36		44		46
Total earnings	$	192	$	360	$	323	$	293	$	236	$	241
Fixed charges, as defined:
Interest charges (a) (b)	$	35	$	57	$	49	$	34	$	42	$	44
Estimated interest component of operating rentals	2		4		2		2		2		2
Total fixed charges	$	37	$	61	$	51	$	36	$	44	$	46
Ratio of earnings to fixed charges	5.2		5.9		6.3		8.1		5.4		5.2

(a)	Includes interest on long-term and short-term debt, as well as amortization of loss on reacquired debt and amortization of debt discount, expense and premium - net.
(b)	Includes a credit for amortization of a fair market value adjustment of $7 million in 2013.

EX-12.E

Exhibit 12(e)

KENTUCKY UTILITIES COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of Dollars)

	Six Months Ended June 30,		Years Ended December 31,
	2016		2015			2014			2013			2012		2011
Earnings, as defined:
Income Before Income Taxes	$	209	$	374		$	355		$	360		$	215	$	282
Adjustment to reflect earnings from equity method investments on a cash basis (a)	—		(1		)	(1		)	(1		)	33		(1		)
	209		373			354			359			248		281
Total fixed charges as below	49		86			80			73			72		73
Total earnings	$	258	$	459		$	434		$	432		$	320	$	354
Fixed charges, as defined:
Interest charges (b)	$	47	$	82		$	77		$	70		$	69	$	70
Estimated interest component of operating rentals	2		4			3			3			3		3
Total fixed charges	$	49	$	86		$	80		$	73		$	72	$	73
Ratio of earnings to fixed charges	5.3		5.3			5.4			5.9			4.4		4.8

(a)	Includes other-than-temporary impairment loss of $25 million in 2012.
(b)	Includes interest on long-term and short-term debt, as well as amortization of loss on reacquired debt and amortization of debt discount, expense and premium - net.

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, WILLIAM H. SPENCE, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  William H. Spence
		William H. Spence
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, VINCENT SORGI, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPL Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Vincent Sorgi
		Vincent Sorgi
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

EX-31.C

Exhibit 31(c)

CERTIFICATION

I, GREGORY N. DUDKIN, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Gregory N. Dudkin
		Gregory N. Dudkin
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation

EX-31.D

Exhibit 31(d)

CERTIFICATION

I, MARLENE C. BEERS, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Marlene C. Beers
		Marlene C. Beers
		Controller
		(Principal Financial Officer and Principal Accounting Officer)
		PPL Electric Utilities Corporation

EX-31.E

Exhibit 31(e)

CERTIFICATION

I, VICTOR A. STAFFIERI, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		LG&E and KU Energy LLC

EX-31.F

Exhibit 31(f)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1. I have reviewed this quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		LG&E and KU Energy LLC

EX-31.G

Exhibit 31(g)

CERTIFICATION

I, VICTOR A. STAFFIERI, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		Louisville Gas and Electric Company

EX-31.H

Exhibit 31(h)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		Louisville Gas and Electric Company

EX-31.I

Exhibit 31(i)

CERTIFICATION

I, VICTOR A. STAFFIERI, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		Kentucky Utilities Company

EX-31.J

Exhibit 31(j)

CERTIFICATION

I, KENT W. BLAKE, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Kentucky Utilities Company (the "registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 9, 2016	/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		Kentucky Utilities Company

EX-32.A

Exhibit 32(a)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

In connection with the quarterly report on Form 10-Q of PPL Corporation (the "Company") for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, William H. Spence, the Principal Executive Officer of the Company, and Vincent Sorgi, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

• The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 9, 2016	/s/  William H. Spence
		William H. Spence
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)
		PPL Corporation
		/s/  Vincent Sorgi
		Vincent Sorgi
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)
		PPL Corporation

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

Exhibit 32(b)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

In connection with the quarterly report on Form 10-Q of PPL Electric Utilities Corporation (the "Company") for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Gregory N. Dudkin, the Principal Executive Officer of the Company, and Marlene C. Beers, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

• The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 9, 2016	/s/  Gregory N. Dudkin
		Gregory N. Dudkin
		President
		(Principal Executive Officer)
		PPL Electric Utilities Corporation
		/s/  Marlene C. Beers
		Marlene C. Beers
		Controller
		(Principal Financial Officer and Principal Accounting Officer)
		PPL Electric Utilities Corporation

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.C

Exhibit 32(c)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

In connection with the quarterly report on Form 10-Q of LG&E and KU Energy LLC (the "Company") for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Victor A. Staffieri, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

• The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		LG&E and KU Energy LLC
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		LG&E and KU Energy LLC

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.D

Exhibit 32(d)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

In connection with the quarterly report on Form 10-Q of Louisville Gas and Electric Company (the "Company") for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Victor A. Staffieri, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

• The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		Louisville Gas and Electric Company
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		Louisville Gas and Electric Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.E

Exhibit 32(e)

CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

FOR PPL CORPORATION'S FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

In connection with the quarterly report on Form 10-Q of Kentucky Utilities Company (the "Company") for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Covered Report"), we, Victor A. Staffieri, the Principal Executive Officer of the Company, and Kent W. Blake, the Principal Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certify that:

• The Covered Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• The information contained in the Covered Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 9, 2016	/s/  Victor A. Staffieri
		Victor A. Staffieri
		Chairman of the Board, Chief Executive Officer and President
		(Principal Executive Officer)
		Kentucky Utilities Company
		/s/  Kent W. Blake
		Kent W. Blake
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)
		Kentucky Utilities Company

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 03, 2016
Document Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Registrant Name	PPL Corp
Entity Central Index Key	0000922224
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		678,094,068
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
PPL Electric Utilities Corp [Member]
Document Entity Information [Line Items]
Amendment Flag	false
Entity Registrant Name	PPL ELECTRIC UTILITIES CORP
Entity Central Index Key	0000317187
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		66,368,056
LG And E And KU Energy LLC [Member]
Document Entity Information [Line Items]
Amendment Flag	false
Entity Registrant Name	LG&E & KU Energy LLC
Entity Central Index Key	0001518339
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		0
Louisville Gas And Electric Co [Member]
Document Entity Information [Line Items]
Amendment Flag	false
Entity Registrant Name	LOUISVILLE GAS & ELECTRIC CO
Entity Central Index Key	0000060549
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		21,294,223
Kentucky Utilities Co [Member]
Document Entity Information [Line Items]
Amendment Flag	false
Entity Registrant Name	KENTUCKY UTILITIES CO
Entity Central Index Key	0000055387
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		37,817,878

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Operating Revenues
Operating Revenues		$ 1,785	$ 1,781	$ 3,796	$ 4,011
Operation
Fuel		183	214	380	467
Energy purchases		147	170	380	499
Other operation and maintenance		425	467	875	923
Depreciation		231	216	460	432
Taxes, other than income		74	76	153	162
Total Operating Expenses		1,060	1,143	2,248	2,483
Operating Income		725	638	1,548	1,528
Other Income (Expense) - net		174	(102)	235	(14)
Interest Expense		224	215	448	424
Income Before Income Taxes		675	321	1,335	1,090
Income Taxes		192	71	371	288
Income from Continuing Operations After Income Taxes		483	250	964	802
Income (Loss) from Discontinued Operations (net of income taxes)		0	(1,007)	0	(912)
Net Income (Loss)		$ 483	$ (757)	$ 964	$ (110)
Income from Continuing Operations After Income Taxes:
Basic (in dollars per share)		$ 0.71	$ 0.37	$ 1.42	$ 1.20
Diluted (in dollars per share)		0.71	0.37	1.41	1.19
Net Income (Loss):
Basic (in dollars per share)		0.71	(1.13)	1.42	(0.17)
Diluted (in dollars per share)		0.71	(1.13)	1.41	(0.17)
Dividends Declared Per Share of Common Stock (in dollars per share)		$ 0.38	$ 0.3725	$ 0.76	$ 0.7450
Weighted-Average Shares of Common Stock Outstanding (in thousands)
Basic (in shares)		677,145	668,415	676,293	667,698
Diluted (in shares)		680,729	671,286	679,773	670,013
PPL Electric Utilities Corp [Member]
Operating Revenues
Operating Revenues		$ 495	$ 476	$ 1,080	$ 1,106
Operation
Energy purchases		118	138	285	365
Energy purchases from affiliate		0	5	0	14
Other operation and maintenance		137	140	287	273
Depreciation		62	52	121	103
Taxes, other than income		24	25	53	60
Total Operating Expenses		341	360	746	815
Operating Income		154	116	334	291
Other Income (Expense) - net		5	2	8	4
Interest Expense		32	33	65	64
Income Before Income Taxes		127	85	277	231
Income Taxes		48	36	104	95
Net Income (Loss)	[1]	79	49	173	136
LG And E And KU Energy LLC [Member]
Operating Revenues
Operating Revenues		721	714	1,547	1,613
Operation
Fuel		182	214	380	467
Energy purchases		28	28	94	120
Other operation and maintenance		204	214	406	423
Depreciation		100	94	199	189
Taxes, other than income		15	15	30	29
Total Operating Expenses		529	565	1,109	1,228
Operating Income		192	149	438	385
Other Income (Expense) - net		(5)	(1)	(6)	(2)
Interest Expense		48	42	97	84
Interest Expense with Affiliate		4	1	8	1
Income Before Income Taxes		135	105	327	298
Income Taxes		51	45	123	121
Net Income (Loss)	[1]	84	60	204	177
Louisville Gas And Electric Co [Member]
Operating Revenues
Retail and wholesale		317	323	692	740
Electric revenue from affiliate		6	8	17	30
Operating Revenues		323	331	709	770
Operation
Fuel		69	82	147	185
Energy purchases		23	23	85	111
Energy purchases from affiliate		3	5	5	8
Other operation and maintenance		92	103	179	199
Depreciation		42	40	83	82
Taxes, other than income		7	7	15	14
Total Operating Expenses		236	260	514	599
Operating Income		87	71	195	171
Other Income (Expense) - net		(5)	(1)	(5)	(2)
Interest Expense		18	13	35	26
Income Before Income Taxes		64	57	155	143
Income Taxes		24	22	59	55
Net Income (Loss)	[1]	40	35	96	88
Kentucky Utilities Co [Member]
Operating Revenues
Retail and wholesale		404	391	855	873
Electric revenue from affiliate		3	5	5	8
Operating Revenues		407	396	860	881
Operation
Fuel		113	132	233	282
Energy purchases		5	5	9	9
Energy purchases from affiliate		6	8	17	30
Other operation and maintenance		107	109	213	213
Depreciation		58	54	116	107
Taxes, other than income		8	8	15	15
Total Operating Expenses		297	316	603	656
Operating Income		110	80	257	225
Other Income (Expense) - net		1	2	(1)	1
Interest Expense		23	19	47	38
Income Before Income Taxes		88	63	209	188
Income Taxes		34	24	80	71
Net Income (Loss)	[2]	$ 54	$ 39	$ 129	$ 117

[1] Net income equals comprehensive income.

[2] Net income approximates comprehensive income.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income		$ 483	$ (757)	$ 964	$ (110)
Amounts arising during the period - gains (losses), net of tax (expense) benefit:
Foreign currency translation adjustments, net of tax		268	(83)	(196)	(149)
Available-for-sale securities, net of tax		0	2	0	7
Qualifying derivatives, net of tax		(85)	21	(5)	27
Defined benefit plans:
Prior service costs, net of tax		0	(6)	0	(6)
Net actuarial gain (loss), net of tax		2	53	2	52
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit):
Available-for-sale securities, net of tax		0	(1)	0	(2)
Qualifying derivatives, net of tax		85	27	7	10
Equity investees' other comprehensive (income) loss, net of tax		(1)	0	(1)	(1)
Defined benefit plans:
Prior service costs, net of tax		1	0	1	0
Net actuarial loss, net of tax		32	38	63	76
Total other comprehensive income (loss)		302	51	(129)	14
Comprehensive income (loss)		785	(706)	835	(96)
LG And E And KU Energy LLC [Member]
Net income	[1]	84	60	204	177
Defined benefit plans:
Net actuarial gain (loss), net of tax		1	(8)	1	(8)
Reclassifications from accumulated other comprehensive income (loss) - (gains) losses, net of tax expense (benefit):
Equity investees' other comprehensive (income) loss, net of tax		(1)	0	(1)	(1)
Defined benefit plans:
Prior service costs, net of tax		1	1	1	1
Net actuarial loss, net of tax		1	0	2	1
Total other comprehensive income (loss)		2	(7)	3	(7)
Comprehensive income (loss)		$ 86	$ 53	$ 207	$ 170

[1] Net income equals comprehensive income.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Tax effect of foreign currency translation adjustments arising during the period	$ 0	$ 6	$ (2)	$ 1
Tax effect of available-for-sale securities arising during the period	0	(3)	0	(9)
Tax effect of qualifying derivatives arising during the period	22	(11)	7	(7)
Tax effect of defined benefit plans - prior service costs arising during period	0	4	0	4
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period	(1)	(36)	(1)	(36)
Tax effect of available-for-sale securities reclassified from accumulated other comprehensive income (loss)	0	1	0	2
Tax effect of qualifying derivatives reclassified from accumulated other comprehensive income (loss)	(21)	(24)	(2)	(20)
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss)	0	0	0	1
Tax effect of prior service costs reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss)	(8)	(12)	(17)	(25)
LG And E And KU Energy LLC [Member]
Tax effect of defined benefit plans - net actuarial gain (loss) arising during period	(1)	5	(1)	5
Tax effect of equity investees' other comprehensive income (loss) reclassified from accumulated other comprehensive income (loss)	0	0	0	1
Tax effect of prior service costs reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Tax effect of net actuarial loss reclassified from accumulated other comprehensive income (loss)	$ (1)	$ (1)	$ (1)	$ (1)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities
Net Income (Loss)		$ 964	$ (110)
Loss from discontinued operations (net of income taxes)		0	912
Income from Continuing Operations After Income Taxes		964	802
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation		460	432
Amortization		37	27
Defined benefit plans - expense (income)		(24)	32
Deferred income taxes and investment tax credits		320	256
Unrealized (gains) losses on derivatives, and other hedging activities		(192)	62
Stock-based compensation expense		18	38
Other		(11)	11
Change in current assets and current liabilities
Accounts receivable		16	(74)
Accounts payable		(39)	(83)
Unbilled revenues		(2)	79
Prepayments		(66)	(61)
Counterparty collateral		76	0
Taxes payable		22	(129)
Accrued interest		(85)	(87)
Other current liabilities		(47)	(91)
Other		0	13
Other operating activities
Defined benefit plans - funding		(224)	(289)
Other assets		2	(29)
Other liabilities		(55)	61
Net cash provided by operating activities - continuing operations		1,170	970
Net cash provided by operating activities - discontinued operations		0	343
Net cash provided by operating activities		1,170	1,313
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(1,346)	(1,679)
Expenditures for intangible assets		(14)	(24)
Proceeds from the sale of other investments		0	135
Other investing activities		13	(7)
Net cash provided by (used in) investing activities - continuing operations		(1,347)	(1,575)
Net cash provided by (used in) investing activities - discontinued operations		0	(149)
Net cash provided by (used in) investing activities		(1,347)	(1,724)
Cash Flows from Financing Activities
Issuance of long-term debt		1,020	88
Retirement of long-term debt		(684)	0
Settlement of cross-currency swaps		46	0
Issuance of common stock		76	83
Payment of common stock dividends		(513)	(500)
Net increase (decrease) in short-term debt		(66)	276
Other financing activities		(31)	(18)
Net cash provided by (used in) financing activities - continuing operations		(152)	(71)
Net cash provided by (used in) financing activities - discontinued operations		0	(546)
Net cash distributions to parent from discontinued operations		0	132
Net cash provided by (used in) financing activities		(152)	(485)
Effect of Exchange Rates on Cash and Cash Equivalents		(15)	(9)
Net (Increase) Decrease in Cash and Cash Equivalents included in Discontinued Operations		0	(352)
Net Increase (Decrease) in Cash and Cash Equivalents		(344)	(553)
Cash and Cash Equivalents at Beginning of Period		836	1,399
Cash and Cash Equivalents at End of Period		492	846
PPL Electric Utilities Corp [Member]
Cash Flows from Operating Activities
Net Income (Loss)	[1]	173	136
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation		121	103
Amortization		15	14
Defined benefit plans - expense (income)		7	8
Deferred income taxes and investment tax credits		107	39
Other		(10)	(6)
Change in current assets and current liabilities
Accounts receivable		(6)	(24)
Accounts payable		(26)	(93)
Unbilled revenues		3	25
Prepayments		3	(80)
Regulatory assets and liabilities		(40)	36
Taxes payable		(16)	(55)
Other		(6)	(14)
Other operating activities
Defined benefit plans - funding		0	(33)
Other assets		11	(2)
Other liabilities		(8)	22
Net cash provided by operating activities - continuing operations		328	76
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(424)	(480)
Other investing activities		(3)	(3)
Net cash provided by (used in) investing activities - continuing operations		(427)	(483)
Cash Flows from Financing Activities
Issuance of long-term debt		224	0
Retirement of long-term debt		(224)	0
Contributions from parent		200	160
Payment of common stock dividends to parent		(117)	(107)
Net increase (decrease) in short-term debt		6	168
Other financing activities		(2)	0
Net cash provided by (used in) financing activities - continuing operations		87	221
Cash and Cash Equivalents, Period Increase (Decrease)		(12)	(186)
Cash and Cash Equivalents at Beginning of Period		47	214
Cash and Cash Equivalents at End of Period		35	28
LG And E And KU Energy LLC [Member]
Cash Flows from Operating Activities
Net Income (Loss)	[1]	204	177
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation		199	189
Amortization		15	12
Defined benefit plans - expense (income)		13	21
Deferred income taxes and investment tax credits		121	145
Other		(1)	23
Change in current assets and current liabilities
Accounts receivable		5	13
Accounts payable		28	10
Unbilled revenues		(14)	12
Fuel, materials and supplies		20	54
Income tax receivable		4	136
Taxes payable		(13)	23
Accrued interest		(1)	0
Other		(22)	(30)
Other operating activities
Defined benefit plans - funding		(45)	(63)
Expenditures for asset retirement obligations		(8)	(3)
Other assets		1	7
Other liabilities		0	(23)
Net cash provided by operating activities - continuing operations		506	703
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(439)	(630)
Other investing activities		0	4
Net cash provided by (used in) investing activities - continuing operations		(439)	(626)
Cash Flows from Financing Activities
Net increase (decrease) in notes payable with affiliate		123	18
Net increase (decrease) in short-term debt		(126)	(14)
Debt issuance and credit facility costs		(1)	0
Distributions to member		(114)	(109)
Proceeds from Contributions from Affiliates		37	20
Net cash provided by (used in) financing activities - continuing operations		(81)	(85)
Net Increase (Decrease) in Cash and Cash Equivalents		(14)	(8)
Cash and Cash Equivalents at Beginning of Period		30	21
Cash and Cash Equivalents at End of Period		16	13
Louisville Gas And Electric Co [Member]
Cash Flows from Operating Activities
Net Income (Loss)	[1]	96	88
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation		83	82
Amortization		6	6
Defined benefit plans - expense (income)		4	8
Deferred income taxes and investment tax credits		62	58
Other		0	24
Change in current assets and current liabilities
Accounts receivable		(2)	13
Accounts receivable from affiliates		(7)	7
Accounts payable		20	(12)
Accounts payable to affiliates		8	(4)
Unbilled revenues		(1)	9
Fuel, materials and supplies		29	51
Income tax receivable		4	74
Taxes payable		0	9
Other		(6)	(2)
Other operating activities
Defined benefit plans - funding		(16)	(25)
Expenditures for asset retirement obligations		(6)	(3)
Other assets		(4)	12
Other liabilities		3	(6)
Net cash provided by operating activities - continuing operations		273	389
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(237)	(349)
Net cash provided by (used in) investing activities - continuing operations		(237)	(349)
Cash Flows from Financing Activities
Contributions from parent		47	20
Payment of common stock dividends to parent		(61)	(58)
Net increase (decrease) in short-term debt		(32)	(5)
Debt issuance and credit facility costs		(1)	0
Net cash provided by (used in) financing activities - continuing operations		(47)	(43)
Net Increase (Decrease) in Cash and Cash Equivalents		(11)	(3)
Cash and Cash Equivalents at Beginning of Period		19	10
Cash and Cash Equivalents at End of Period		8	7
Kentucky Utilities Co [Member]
Cash Flows from Operating Activities
Net Income (Loss)	[2]	129	117
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations
Depreciation		116	107
Amortization		7	4
Defined benefit plans - expense (income)		3	6
Deferred income taxes and investment tax credits		77	84
Other		(1)	(1)
Change in current assets and current liabilities
Accounts receivable		11	0
Accounts receivable from affiliates		1	0
Accounts payable		11	27
Accounts payable to affiliates		12	(11)
Unbilled revenues		(13)	3
Fuel, materials and supplies		(9)	3
Income tax receivable		0	60
Taxes payable		(3)	14
Accrued interest		(1)	0
Other		(10)	(9)
Other operating activities
Defined benefit plans - funding		(13)	(19)
Expenditures for asset retirement obligations		(2)	0
Other assets		(3)	(1)
Other liabilities		(1)	(24)
Net cash provided by operating activities - continuing operations		311	360
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(201)	(279)
Other investing activities		0	4
Net cash provided by (used in) investing activities - continuing operations		(201)	(275)
Cash Flows from Financing Activities
Contributions from parent		20	0
Payment of common stock dividends to parent		(113)	(81)
Net increase (decrease) in short-term debt		(19)	(9)
Debt issuance and credit facility costs		(1)	0
Net cash provided by (used in) financing activities - continuing operations		(113)	(90)
Net Increase (Decrease) in Cash and Cash Equivalents		(3)	(5)
Cash and Cash Equivalents at Beginning of Period		11	11
Cash and Cash Equivalents at End of Period		$ 8	$ 6

[1] Net income equals comprehensive income.

[2] Net income approximates comprehensive income.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents		$ 492	$ 836
Accounts receivable (less reserve:)
Customer		667	673
Other		44	59
Unbilled revenues		447	453
Fuel, materials and supplies		336	357
Prepayments		131	66
Price risk management assets		200	139
Regulatory assets	[1]	34	48
Other current assets		43	63
Total Current Assets		2,360	2,646
Property, Plant and Equipment
Regulated utility plant		35,226	34,399
Less: accumulated depreciation - regulated utility plant		5,966	5,683
Regulated utility plant, net		29,260	28,716
Non-regulated property, plant and equipment		491	516
Less: accumulated depreciation - non-regulated property, plant and equipment		157	165
Non-regulated property, plant and equipment, net		334	351
Construction work in progress		1,200	1,315
Property, Plant and Equipment, net		30,794	30,382
Other Noncurrent Assets
Regulatory assets		1,762	1,733
Goodwill		3,455	3,550
Other intangibles		708	679
Price risk management assets		285	156
Other noncurrent assets		164	155
Total Other Noncurrent Assets		6,374	6,273
Total Assets		39,528	39,301
Current Liabilities
Short-term debt		856	916
Long-term debt due within one year		219	485
Accounts payable		726	812
Taxes		106	85
Interest		211	303
Dividends		258	255
Customer deposits		326	326
Regulatory liabilities		99	145
Other current liabilities		607	549
Total Current Liabilities		3,408	3,876
Long-term Debt
Long-term Debt		18,949	18,563
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		3,749	3,440
Investment tax credits		134	128
Accrued pension obligations		1,074	1,405
Asset retirement obligations		513	536
Regulatory liabilities		935	945
Other deferred credits and noncurrent liabilities		441	489
Total Deferred Credits and Other Noncurrent Liabilities		6,846	6,943
Commitments and Contingent Liabilities
Equity
Common stock	[2]	7	7
Additional paid-in capital		9,766	9,687
Earnings reinvested		3,409	2,953
Accumulated other comprehensive loss		(2,857)	(2,728)
Total Equity		10,325	9,919
Total Liabilities and Equity		39,528	39,301
PPL Electric Utilities Corp [Member]
Current Assets
Cash and cash equivalents		35	47
Accounts receivable (less reserve:)
Customer		286	286
Other		13	10
Accounts receivable from affiliates		3	0
Unbilled revenues		88	91
Fuel, materials and supplies		30	34
Prepayments		63	66
Regulatory assets	[1]	12	13
Other current assets		18	21
Total Current Assets		536	555
Property, Plant and Equipment
Regulated utility plant		9,110	8,734
Less: accumulated depreciation - regulated utility plant		2,656	2,573
Regulated utility plant, net		6,454	6,161
Construction work in progress		577	530
Property, Plant and Equipment, net		7,031	6,691
Other Noncurrent Assets
Regulatory assets		995	1,006
Other intangibles		246	244
Other noncurrent assets		17	15
Total Other Noncurrent Assets		1,258	1,265
Total Assets		8,825	8,511
Current Liabilities
Short-term debt		6	0
Accounts payable		295	288
Accounts payable to affiliates		35	35
Taxes		8	24
Interest		34	37
Customer deposits		22	31
Regulatory liabilities		74	113
Other current liabilities		77	77
Total Current Liabilities		551	605
Long-term Debt
Long-term Debt		2,830	2,828
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,776	1,663
Accrued pension obligations		184	183
Regulatory liabilities		19	22
Other deferred credits and noncurrent liabilities		89	91
Total Deferred Credits and Other Noncurrent Liabilities		2,068	1,959
Commitments and Contingent Liabilities
Equity
Common stock	[3]	364	364
Additional paid-in capital		2,134	1,934
Earnings reinvested		878	821
Total Equity		3,376	3,119
Total Liabilities and Equity		8,825	8,511
LG And E And KU Energy LLC [Member]
Current Assets
Cash and cash equivalents		16	30
Accounts receivable (less reserve:)
Customer		201	209
Other		15	17
Unbilled revenues		161	147
Fuel, materials and supplies		279	298
Prepayments		30	23
Regulatory assets		22	35
Other current assets		1	6
Total Current Assets		725	765
Property, Plant and Equipment
Regulated utility plant		12,414	11,906
Less: accumulated depreciation - regulated utility plant		1,301	1,163
Regulated utility plant, net		11,113	10,743
Construction work in progress		428	660
Property, Plant and Equipment, net		11,541	11,403
Other Noncurrent Assets
Regulatory assets		767	727
Goodwill		996	996
Other intangibles		110	123
Other noncurrent assets		81	76
Total Other Noncurrent Assets		1,954	1,922
Total Assets		14,220	14,090
Current Liabilities
Short-term debt		139	265
Long-term debt due within one year		219	25
Notes payable with affiliate		176	54
Accounts payable		236	266
Accounts payable to affiliates		5	5
Taxes		33	46
Price risk management liabilities		6	5
Interest		31	32
Customer deposits		54	52
Regulatory liabilities		25	32
Asset retirement obligations		76	50
Other current liabilities		104	135
Total Current Liabilities		1,104	967
Long-term Debt
Long-term debt		4,470	4,663
Long-term debt to affiliate		400	400
Long-term Debt		4,870	5,063
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,580	1,463
Investment tax credits		133	128
Accrued pension obligations		276	296
Asset retirement obligations		463	485
Regulatory liabilities		916	923
Price risk management liabilities		50	42
Other deferred credits and noncurrent liabilities		181	206
Total Deferred Credits and Other Noncurrent Liabilities		3,599	3,543
Commitments and Contingent Liabilities
Equity
Accumulated other comprehensive loss		(43)	(46)
Member's equity		4,647	4,517
Total Liabilities and Equity		14,220	14,090
Louisville Gas And Electric Co [Member]
Current Assets
Cash and cash equivalents		8	19
Accounts receivable (less reserve:)
Customer		88	92
Other		10	11
Accounts receivable from affiliates		19	12
Unbilled revenues		68	67
Fuel, materials and supplies		122	151
Prepayments		14	5
Regulatory assets		8	16
Other current assets		0	2
Total Current Assets		337	375
Property, Plant and Equipment
Regulated utility plant		5,207	4,804
Less: accumulated depreciation - regulated utility plant		434	404
Regulated utility plant, net		4,773	4,400
Construction work in progress		130	390
Property, Plant and Equipment, net		4,903	4,790
Other Noncurrent Assets
Regulatory assets		440	424
Goodwill		389	389
Other intangibles		66	73
Other noncurrent assets		22	17
Total Other Noncurrent Assets		917	903
Total Assets		6,157	6,068
Current Liabilities
Short-term debt		110	142
Long-term debt due within one year		219	25
Accounts payable		145	157
Accounts payable to affiliates		33	25
Taxes		20	20
Price risk management liabilities		6	5
Interest		11	11
Customer deposits		26	26
Regulatory liabilities		8	13
Asset retirement obligations		37	25
Other current liabilities		36	39
Total Current Liabilities		651	488
Long-term Debt
Long-term Debt		1,423	1,617
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		888	829
Investment tax credits		37	35
Accrued pension obligations		48	56
Asset retirement obligations		136	149
Regulatory liabilities		427	431
Price risk management liabilities		50	42
Other deferred credits and noncurrent liabilities		85	91
Total Deferred Credits and Other Noncurrent Liabilities		1,671	1,633
Commitments and Contingent Liabilities
Equity
Common stock	[4]	424	424
Additional paid-in capital		1,658	1,611
Earnings reinvested		330	295
Total Equity		2,412	2,330
Total Liabilities and Equity		6,157	6,068
Kentucky Utilities Co [Member]
Current Assets
Cash and cash equivalents		8	11
Accounts receivable (less reserve:)
Customer		113	117
Other		4	9
Accounts receivable from affiliates		0	1
Unbilled revenues		93	80
Fuel, materials and supplies		157	147
Prepayments		16	8
Regulatory assets		14	19
Other current assets		1	4
Total Current Assets		406	396
Property, Plant and Equipment
Regulated utility plant		7,203	7,099
Less: accumulated depreciation - regulated utility plant		867	759
Regulated utility plant, net		6,336	6,340
Construction work in progress		295	267
Property, Plant and Equipment, net		6,631	6,607
Other Noncurrent Assets
Regulatory assets		327	303
Goodwill		607	607
Other intangibles		44	50
Other noncurrent assets		55	48
Total Other Noncurrent Assets		1,033	1,008
Total Assets		8,070	8,011
Current Liabilities
Short-term debt		29	48
Accounts payable		73	88
Accounts payable to affiliates		52	39
Taxes		17	20
Interest		15	16
Customer deposits		28	26
Regulatory liabilities		17	19
Asset retirement obligations		39	25
Other current liabilities		33	44
Total Current Liabilities		303	325
Long-term Debt
Long-term Debt		2,327	2,326
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes		1,120	1,046
Investment tax credits		96	93
Accrued pension obligations		39	46
Asset retirement obligations		327	336
Regulatory liabilities		489	492
Other deferred credits and noncurrent liabilities		47	60
Total Deferred Credits and Other Noncurrent Liabilities		2,118	2,073
Commitments and Contingent Liabilities
Equity
Common stock	[5]	308	308
Additional paid-in capital		2,616	2,596
Earnings reinvested		399	383
Accumulated other comprehensive loss		(1)	0
Total Equity		3,322	3,287
Total Liabilities and Equity		$ 8,070	$ 8,011

[1] These amounts are included in "Other current assets" on the Balance Sheets.

[2] 780,000 shares authorized; 677,549 and 673,857 shares issued and outstanding at June 30, 2016 and December 31, 2015.

[3] 170,000 shares authorized; 66,368 shares issued and outstanding at June 30, 2016 and December 31, 2015.

[4] 75,000 shares authorized; 21,294 shares issued and outstanding at June 30, 2016 and December 31, 2015.

[5] 80,000 shares authorized; 37,818 shares issued and outstanding at June 30, 2016 and December 31, 2015.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 48	$ 41
Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock shares authorized (in shares)	780,000	780,000
Common stock shares issued (in shares)	677,549	673,857
Common stock shares outstanding (in shares)	677,549	673,857
PPL Electric Utilities Corp [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 23	$ 16
Equity
Common stock, no par value (in dollars per share)
Common stock shares authorized (in shares)	170,000	170,000
Common stock shares issued (in shares)	66,368	66,368
Common stock shares outstanding (in shares)	66,368	66,368
LG And E And KU Energy LLC [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 24	$ 23
Louisville Gas And Electric Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 2	$ 1
Equity
Common stock, no par value (in dollars per share)
Common stock shares authorized (in shares)	75,000	75,000
Common stock shares issued (in shares)	21,294	21,294
Common stock shares outstanding (in shares)	21,294	21,294
Kentucky Utilities Co [Member]
Receivables, Net, Current [Abstract]
Accounts receivable reserve for doubtful accounts	$ 2	$ 2
Equity
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock shares authorized (in shares)	80,000	80,000
Common stock shares issued (in shares)	37,818	37,818
Common stock shares outstanding (in shares)	37,818	37,818

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Millions		Total	Common Stock [Member]		Additional Paid-in Capital [Member]	Earnings Reinvested [Member]	Accumulated Other Comprehensive Loss [Member]	PPL Electric Utilities Corp [Member]		PPL Electric Utilities Corp [Member] Common Stock [Member]		PPL Electric Utilities Corp [Member] Additional Paid-in Capital [Member]		PPL Electric Utilities Corp [Member] Earnings Reinvested [Member]	LG And E And KU Energy LLC [Member]		Louisville Gas And Electric Co [Member]		Louisville Gas And Electric Co [Member] Common Stock [Member]		Louisville Gas And Electric Co [Member] Additional Paid-in Capital [Member]	Louisville Gas And Electric Co [Member] Earnings Reinvested [Member]	Kentucky Utilities Co [Member]		Kentucky Utilities Co [Member] Common Stock [Member]		Kentucky Utilities Co [Member] Additional Paid-in Capital [Member]	Kentucky Utilities Co [Member] Earnings Reinvested [Member]	Kentucky Utilities Co [Member] Accumulated Other Comprehensive Loss [Member]
Balance at beginning of period - shares at Dec. 31, 2014			665,849	[1]						66,368	[2]								21,294	[3]					37,818	[4]
Balance at beginning of period at Dec. 31, 2014		$ 13,628	$ 7		$ 9,433	$ 6,462	$ (2,274)	$ 2,717		$ 364		$ 1,603		$ 750			$ 2,174		$ 424		$ 1,521	$ 229	$ 3,206		$ 308		$ 2,596	$ 302	$ 0
Balance at beginning of period at Dec. 31, 2014															$ 4,248
Common stock shares issued	[1]		3,665
Common stock issued		111			111
Stock-based compensation		20			20
Net income		(110)				(110)		136	[5]					136	177	[5]	88	[5]				88	117	[6]				117
Contributions from member															20
Capital contributions from parent								207	[7]			207	[7]				20				20
Dividends and dividend equivalents		(498)				(498)
Distribution of PPL Energy Supply		(3,224)				(3,200)	(24)
Dividends declared on common stock								(107)						(107)			(58)					(58)	(81)					(81)
Distributions to member															(109)
Other comprehensive income (loss)		14					14								(7)								(1)						(1)
Balance at end of period - shares at Jun. 30, 2015			669,514	[1]						66,368	[2]								21,294	[3]					37,818	[4]
Balance at end of period at Jun. 30, 2015		$ 9,941	$ 7		9,564	2,654	(2,284)	$ 2,953		$ 364		1,810		779			$ 2,224		$ 424		1,541	259	$ 3,241		$ 308		2,596	338	(1)
Balance at end of period at Jun. 30, 2015															4,329
Balance at beginning of period - shares at Dec. 31, 2015		673,857	673,857	[1]				66,368		66,368	[2]						21,294		21,294	[3]			37,818		37,818	[4]
Balance at beginning of period at Dec. 31, 2015		$ 9,919	$ 7		9,687	2,953	(2,728)	$ 3,119		$ 364		1,934		821			$ 2,330		$ 424		1,611	295	$ 3,287		$ 308		2,596	383	0
Balance at beginning of period at Dec. 31, 2015															4,517
Common stock shares issued	[1]		3,692
Common stock issued		109			109
Stock-based compensation		(30)			(30)
Net income		964				964		173	[5]					173	204	[5]	96	[5]				96	129	[6]				129
Contributions from member															37
Capital contributions from parent								200				200					47				47		20				20
Dividends and dividend equivalents		(515)				(515)
Dividends declared on common stock								$ (116)						(116)			$ (61)					(61)	$ (113)					(113)
Distributions to member															(114)
Other comprehensive income (loss)		(129)					(129)								3														(1)
Adoption of stock-based compensation guidance cumulative effect adjustment		$ 7				7
Balance at end of period - shares at Jun. 30, 2016		677,549	677,549	[1]				66,368		66,368	[2]						21,294		21,294	[3]			37,818		37,818	[4]
Balance at end of period at Jun. 30, 2016		$ 10,325	$ 7		$ 9,766	$ 3,409	$ (2,857)	$ 3,376		$ 364		$ 2,134		$ 878			$ 2,412		$ 424		$ 1,658	$ 330	$ 3,322		$ 308		$ 2,616	$ 399	$ (1)
Balance at end of period at Jun. 30, 2016															$ 4,647

[1] Shares in thousands. Each share entitles the holder to one vote on any question presented at any shareowners' meeting.

[2] Shares in thousands. All common shares of PPL Electric stock are owned by PPL.

[3] Shares in thousands. All common shares of LG&E stock are owned by LKE.

[4] Shares in thousands. All common shares of KU stock are owned by LKE.

[5] Net income equals comprehensive income.

[6] Net income approximates comprehensive income.

[7] Includes non-cash contributions of $47 million.

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2016 Integer	Jun. 30, 2015 USD ($)
Vote per share of PPL's common stock | Integer	1
PPL Electric Utilities Corp [Member]
Non-cash contributions related to remeasurement and separation benefit plans | $		$ 47

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Interim Financial Statements

6 Months Ended

Jun. 30, 2016

Interim Financial Statements [Abstract]

Interim Financial Statements

Interim Financial Statements

(All Registrants)

Capitalized terms and abbreviations appearing in the unaudited combined notes to condensed financial statements are defined in the glossary. Dollars are in millions, except per share data, unless otherwise noted. The specific Registrant to which disclosures are applicable is identified in parenthetical headings in italics above the applicable disclosure or within the applicable disclosure. Within combined disclosures, amounts are disclosed for any Registrant when significant.

The accompanying unaudited condensed financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation in accordance with GAAP are reflected in the condensed financial statements. All adjustments are of a normal recurring nature, except as otherwise disclosed. Each Registrant's Balance Sheet at December 31, 2015 is derived from that Registrant's 2015 audited Balance Sheet. The financial statements and notes thereto should be read in conjunction with the financial statements and notes contained in each Registrant's 2015 Form 10-K. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year ending December 31, 2016 or other future periods, because results for interim periods can be disproportionately influenced by various factors, developments and seasonal variations.

The classification of certain prior period amounts has been changed to conform to the presentation in the June 30, 2016 financial statements.

(PPL)

"Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income includes the activities of PPL Energy Supply, substantially representing PPL's former Supply segment, which was spun off and distributed to PPL shareowners on June 1, 2015. In addition, the Statement of Cash Flows for the six months ended June 30, 2015 separately reports the cash flows of the discontinued operations. See Note 8 for additional information.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(All Registrants)

The following accounting policy disclosures represent updates to Note 1 to each indicated Registrant's 2015 Form 10-K and should be read in conjunction with those disclosures.

Accounts Receivable(PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy. During the three and six months ended June 30, 2016, PPL Electric purchased $297 million and $679 million of accounts receivable from unaffiliated third parties. During the three and six months ended June 30, 2015, PPL Electric purchased $276 million and $607 million of accounts receivable from unaffiliated third parties and $53 million and $146 million from PPL EnergyPlus. As a result of the June 1, 2015 spinoff of PPL Energy Supply and creation of Talen Energy, PPL EnergyPlus (renamed Talen Energy Marketing) is no longer an affiliate of PPL Electric. PPL Electric's purchases from Talen Energy Marketing subsequent to May 31, 2015 are included as purchases from an unaffiliated third party.

Discount Rate Change for U.K. Pension Plans(PPL)

In selecting the discount rate for its U.K. pension plans, WPD historically used a single weighted-average discount rate in the calculation of net periodic defined benefit cost. Effective January 1, 2016, WPD began using individual spot rates to measure service cost and interest cost to calculate net periodic defined benefit cost. For the three and six months ended June 30, 2016, this change in discount rate resulted in lower net periodic defined benefit costs recognized on the Statements of Income of $11 million ($9 million after-tax or $0.02 per share) and $22 million ($18 million after-tax or $0.03 per share).

Foreign Currency Translation and Transactions (PPL)

WPD's functional currency is the GBP, which is the local currency in the U.K. As such, assets and liabilities are translated to U.S. dollars at the exchange rates on the date of consolidation and related revenues and expenses are generally translated at average exchange rates prevailing during the period included in PPL's results of operations. Adjustments resulting from foreign currency translation are recorded in AOCI.

PPL consolidates WPD on a one-month lag. Therefore, the impact of the decrease in the GBP to U.S. dollar exchange rate that occurred subsequent to the U.K.'s vote on June 23, 2016 to withdraw from the European Union is not reflected in PPL's June 30, 2016 financial statements. Using the June 30, 2016 GBP to U.S. dollar exchange rate of $1.34 as opposed to the May 31, 2016 exchange rate of $1.46 would have resulted in an additional foreign currency translation loss of $499 million recorded in AOCI, primarily reflecting a $991 million decrease in PP&E and a $228 million decrease in goodwill, partially offset by a decrease of $606 million in long-term debt.

Certain financial information provided for future periods in PPL’s 2015 Form 10-K is also impacted by the decrease in the GBP to U.S. dollar exchange rate.

New Accounting Guidance Adopted(All Registrants)

Accounting for Stock-Based Compensation

Effective January 1, 2016, the Registrants adopted accounting guidance to simplify the accounting for share-based payment transactions. The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense on the statement of income, eliminates the requirement that excess tax benefits be realized before companies can recognize them and changes the threshold for statutory income tax withholding requirements to qualify for equity classification to the maximum statutory tax rates in the applicable jurisdictions. This guidance also changes the classification of excess tax benefits to an operating activity and employee taxes paid when shares are withheld to satisfy the employer's statutory income tax withholding obligation to a financing activity on the statement of cash flows and allows entities to make a policy election to either estimate forfeitures or recognize them when they occur. The adoption of this guidance had the following impacts:

• Using the required prospective method of transition, for the three and six months ended June 30, 2016, PPL recorded tax benefits of $3 million and $11 million ($0.02 per share) and PPL Electric recorded tax benefits of $2 million and $7 million related to excess tax benefits for awards that were exercised and vested for the periods ending June 30, 2016. These amounts were recorded to Income taxes on the Statements of Income and Deferred income taxes on the Balance Sheets. The impact on LKE was not significant.

• PPL elected to use the prospective method of transition for classifying excess tax benefits as an Operating activity on the Statement of Cash Flows. The amounts classified as Financing activities in the prior periods were not significant.

• Upon adoption, using the required modified retrospective method of transition, PPL recorded a cumulative effect adjustment of $7 million to increase Earnings reinvested and decrease Deferred income taxes on the Balance Sheet related to prior period unrecognized excess tax benefits.

• PPL has historically presented employee taxes paid for net settled awards as a Financing activity on the Statement of Cash Flows. Therefore, there is no transition impact for this requirement.

• PPL has elected to recognize forfeitures when they occur. Due to past experience of insignificant forfeitures, there is no transition impact of this policy election.

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Segment and Related Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

(PPL)

See Note 2 in PPL's 2015 Form 10-K for a discussion of reportable segments and related information.

Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are:

	Three Months						Six Months
	2016			2015			2016			2015
Income Statement Data
Revenues from external customers
U.K. Regulated	$	563		$	587		$	1,158		$	1,284
Kentucky Regulated	721			714			1,547			1,613
Pennsylvania Regulated	495			476			1,080			1,106
Corporate and Other	6			4			11			8
Total	$	1,785		$	1,781		$	3,796		$	4,011
Net Income (loss)
U.K. Regulated (a)	$	345		$	190		$	634		$	565
Kentucky Regulated	76			47			188			156
Pennsylvania Regulated	78			49			172			136
Corporate and Other (b)	(16		)	(36		)	(30		)	(55		)
Discontinued Operations (c)	—			(1,007		)	—			(912		)
Total	$	483		$	(757	)	$	964		$	(110	)

	June 30, 2016		December 31, 2015
Balance Sheet Data
Assets
U.K. Regulated (d)	$	16,371	$	16,669
Kentucky Regulated	13,886		13,756
Pennsylvania Regulated	8,825		8,511
Corporate and Other (e)	446		365
Total assets	$	39,528	$	39,301

(a) Includes unrealized gains and losses from hedging foreign-currency related economic activity. See Note 14 for additional information.

(b) 2015 includes transition costs to prepare the Talen Energy organization for the June 1, 2015 spinoff and reconfigure the remaining PPL Services functions. See Note 8 for additional information.

(c) See Note 8 for additional information.

(d) Includes $12.1 billion and $12.2 billion of net PP&E as of June 30, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP.

(e) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions.

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Earnings Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

(PPL)

Basic EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding during the applicable period. Diluted EPS is computed by dividing income available to PPL common shareowners by the weighted-average number of common shares outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common shares as calculated using the Treasury Stock Method. Incremental non-participating securities that have a dilutive impact are detailed in the table below.

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

	Three Months					Six Months
	2016		2015			2016		2015
Income (Numerator)
Income from continuing operations after income taxes	$	483	$	250		$	964	$	802
Less amounts allocated to participating securities	1		1			3		2
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	482	$	249		$	961	$	800
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	—	$	(1,007	)	$	—	$	(912	)
Net income (loss)	$	483	$	(757	)	$	964	$	(110	)
Less amounts allocated to participating securities	1		1			3		2
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	482	$	(758	)	$	961	$	(112	)
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	677,145		668,415			676,293		667,698
Add incremental non-participating securities:
Share-based payment awards	3,584		2,871			3,480		2,315
Weighted-average shares - Diluted EPS	680,729		671,286			679,773		670,013
Basic EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.42	$	1.20
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.37		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.42	$	(0.17	)
Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.41	$	1.19
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.36		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.41	$	(0.17	)

For the periods ended June 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months		Six Months
	2016	2015	2016	2015
Stock-based compensation plans (a)	795	992	2,920	2,437
DRIP	370	424	772	843

(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2016	2015	2016	2015
Stock options	696	348	696	1,085
Performance units	78	—	39	73

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Income Taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Reconciliations of income taxes for the periods ended June 30 are as follows.

(PPL)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$	236		$	112		$	467		$	382
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	9			9			22			29
Valuation allowance adjustments	3			5			9			8
Impact of lower U.K. income tax rates	(45		)	(36		)	(99		)	(98		)
Federal and state tax reserve adjustments (a)	—			(12		)	—			(12		)
Interest benefit on U.K. financing entities	(4		)	(3		)	(9		)	(11		)
Stock-based compensation (b)	(3		)	—			(11		)	—
Other	(4		)	(4		)	(8		)	(10		)
Total increase (decrease)	(44		)	(41		)	(96		)	(94		)
Total income taxes	$	192		$	71		$	371		$	288

(a) During the three and six months ended June 30, 2015, PPL recorded a tax benefit to adjust the settled refund amount approved by Joint Committee of Taxation for the open audit years 1998 - 2011.

(b) During the three and six months ended June 30, 2016, PPL recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

(PPL Electric)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	44		$	30		$	97		$	81
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	8			4			18			14
Federal and state tax reserve adjustments	—			2			—			2
Depreciation not normalized	(2		)	(1		)	(3		)	(2		)
Stock-based compensation (a)	(2		)	—			(7		)	—
Other	—			1			(1		)	—
Total increase (decrease)	4			6			7			14
Total income taxes	$	48		$	36		$	104		$	95

(a) During the three and six months ended June 30, 2016, PPL Electric recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

(LKE)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	47		$	37		$	114		$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	5			4			12			11
Valuation allowance adjustments (a)	—			5			—			8
Stock-based compensation	—			—			(1		)	—
Other	(1		)	(1		)	(2		)	(2		)
Total increase (decrease)	4			8			9			17
Total income taxes	$	51		$	45		$	123		$	121

(a) Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized.

(LG&E)
	Three Months				Six Months
	2016		2015		2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	22	$	20	$	54		$	50
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6			5
Other	—		—		(1		)	—
Total increase (decrease)	2		2		5			5
Total income taxes	$	24	$	22	$	59		$	55

(KU)
	Three Months				Six Months
	2016		2015		2016		2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	31	$	22	$	73	$	66
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		2		7		7
Other	—		—		—		(2		)
Total increase (decrease)	3		2		7		5
Total income taxes	$	34	$	24	$	80	$	71

Other (PPL)

In February 2015, PPL and the IRS Appeals Division reached a settlement on the amount of PPL's refund from its open audits for the years 1998 - 2011. In April 2015, PPL was notified that the Joint Committee on Taxation approved PPL's settlement. In the second quarter of 2015, PPL recorded a tax benefit of $23 million, which included an estimate of interest on the refund. Of this amount, $11 million was reflected in continuing operations. PPL finalized the settlement of interest in the second quarter of 2016 and recorded an additional $3 million tax benefit.

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Utility Rate Regulation

6 Months Ended

Jun. 30, 2016

Regulated Operations [Abstract]

Utility Rate Regulation

Utility Rate Regulation

(All Registrants)

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	—	$	—
Generation formula rate	13		7		—		—
Transmission service charge	10		10		10		10
Other	5		7		2		3
Total current regulatory assets (a)	$	34	$	48	$	12	$	13

	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	800	$	809	$	460	$	469
Taxes recoverable through future rates	331		326		331		326
Storm costs	79		93		23		30
Unamortized loss on debt	66		68		41		42
Interest rate swaps	148		141		—		—
Accumulated cost of removal of utility plant	139		137		139		137
AROs	187		143		—		—
Other	12		16		1		2
Total noncurrent regulatory assets	$	1,762	$	1,733	$	995	$	1,006

Current Regulatory Liabilities:
Generation supply charge	$	26	$	41	$	26	$	41
Demand side management	10		8		—		—
Gas supply clause	—		6		—		—
Universal service rider	6		5		6		5
Transmission formula rate	27		48		27		48
Fuel adjustment clause	10		14		—		—
Storm damage expense	14		16		14		16
Other	6		7		1		3
Total current regulatory liabilities	$	99	$	145	$	74	$	113
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	—	$	—
Coal contracts (b)	8		17		—		—
Power purchase agreement - OVEC (b)	79		83		—		—
Net deferred tax assets	24		23		—		—
Act 129 compliance rider	19		22		19		22
Defined benefit plans	27		24		—		—
Interest rate swaps	80		82		—		—
Other	3		3		—		—
Total noncurrent regulatory liabilities	$	935	$	945	$	19	$	22

	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	6	$	13	$	—	$	11
Generation formula rate	13		7		—		—		13		7
Other	3		4		2		3		1		1
Total current regulatory assets	$	22	$	35	$	8	$	16	$	14	$	19

	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	340	$	340	$	215	$	215	$	125	$	125
Storm costs	56		63		31		35		25		28
Unamortized loss on debt	25		26		16		17		9		9
Interest rate swaps	148		141		106		98		42		43
AROs	187		143		70		57		117		86
Plant retirement costs	5		6		—		—		5		6
Other	6		8		2		2		4		6
Total noncurrent regulatory assets	$	767	$	727	$	440	$	424	$	327	$	303

Current Regulatory Liabilities:
Demand side management	$	10	$	8	$	5	$	4	$	5	$	4
Gas supply clause	—		6		—		6		—		—
Fuel adjustment clause	10		14		2		2		8		12
Other	5		4		1		1		4		3
Total current regulatory liabilities	$	25	$	32	$	8	$	13	$	17	$	19
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	304	$	301	$	391	$	390
Coal contracts (b)	8		17		3		7		5		10
Power purchase agreement - OVEC (b)	79		83		54		57		25		26
Net deferred tax assets	24		23		23		23		1		—
Defined benefit plans	27		24		—		—		27		24
Interest rate swaps	80		82		40		41		40		41
Other	3		3		3		2		—		1
Total noncurrent regulatory liabilities	$	916	$	923	$	427	$	431	$	489	$	492

(a) These amounts are included in "Other current assets" on the Balance Sheets.

(b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL.

Regulatory Matters

U.K. Activities(PPL)

Ofgem Review of Line Loss Calculation

In 2014, Ofgem issued its final decision on the DPCR4 line loss incentives and penalties mechanism. WPD began refunding its liability for over-recovery of line losses to customers on April 1, 2015 and will continue through March 31, 2019. The liability at June 30, 2016 was $39 million.

Kentucky Activities

CPCN and ECR Filings(PPL, LKE, LG&E and KU)

On January 29, 2016, LG&E and KU submitted applications to the KPSC for CPCNs and for ECR rate treatment regarding upcoming environmental construction projects relating to the EPA's regulations addressing the handling of coal combustion by-products and MATS. The construction projects are expected to begin in 2016 and continue through 2023 and are estimated to cost approximately $316 million at LG&E and $678 million at KU. On June 13, 2016, LG&E and KU filed a unanimous settlement agreement with intervenors in the proceedings. The proposed settlement provided for recovery of the costs incurred by LG&E and KU for the projects requested in the original applications, with adjustments for amortization or depreciation methods and periods for CCR impoundment projects. The proposed settlement also included the parties' support for LG&E's and KU's requested10% authorized return on equity. On August 8, 2016, the KPSC issued an order approving the majority of the settlement's terms and provisions, but establishing a 9.8% authorized return on equity for these projects. Recovery of costs will commence with bills rendered on and after August 31, 2016.

Gas Franchise(LKE and LG&E)

LG&E’s existing gas franchise agreement for the Louisville/Jefferson County service area expired on March 31, 2016.  Pursuant to Kentucky law, upon expiration of a franchise, LG&E retains a revocable license to own and operate its facilities and to provide service. LG&E submitted a bid for a new franchise agreement on June 9, 2016 and is awaiting action from the Louisville/Jefferson County Metro Council. On July 28, 2016, Metro Council introduced an ordinance to award the bid to LG&E and assigned the ordinance to committee for review and recommendation. In the interim, LG&E continues to provide gas service to customers in this service area at existing rates, but without collecting or remitting a franchise fee. LG&E cannot predict the outcome of this matter but does not anticipate that it will have a material effect on its financial condition or results of operation.

Pennsylvania Activities(PPL and PPL Electric)

Act 129

Act 129 requires Pennsylvania Electric Distribution Companies (EDCs) to meet specified goals for reduction in customer electricity usage and peak demand by specified dates. EDCs not meeting the requirements of Act 129 are subject to significant penalties. In November 2015, PPL Electric filed with the PUC its Act 129 Phase III Energy Efficiency and Conservation Plan for the period June 1, 2016 through May 31, 2021. In January 2016, PPL Electric and the other parties reached a settlement of all major issues in the case and filed that settlement with the Administrative Law Judge. In June 2016, the PUC issued a final order approving PPL Electric's Phase III Plan as modified by the settlement, allowing PPL Electric to recover a maximum $313 million in program cost over the five-year period June 1, 2016 through May 31, 2021 through the Act 129 compliance rider.     

Act 129 also requires Default Service Providers (DSP) to provide electricity generation supply service to customers pursuant to a PUC-approved default service procurement plan through auctions, requests for proposal and bilateral contracts at the sole discretion of the DSP. Act 129 requires a mix of spot market purchases, short-term contracts and long-term contracts (4 to 20 years), with long-term contracts limited to 25% of load unless otherwise approved by the PUC. A DSP is able to recover the costs associated with its default service procurement plan.

PPL Electric has received PUC approval of biannual DSP procurement plans for all periods required under Act 129. In January 2016, PPL Electric filed a Petition for Approval of a new DSP procurement plan with the PUC for the period June 1, 2017 through May 31, 2021. The parties have reached a settlement on all but one issue in the proceeding. A partial settlement agreement and briefs on the litigated issue were submitted to the Administrative Law Judge in July 2016. This proceeding remains pending before the PUC. PPL Electric cannot predict the outcome of this proceeding.

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Financing Activities

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Financing Activities

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, 2016									December 31, 2015
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
U.K.
WPD plc
Syndicated Credit Facility	Jan 2021	£	210	£	138	£	—	£	72	£	133	£	—
WPD (South West)
Syndicated Credit Facility	July 2020	245		100		—		145		—		—
WPD (East Midlands)
Syndicated Credit Facility	July 2020	300		31		—		269		—		—
WPD (West Midlands)
Syndicated Credit Facility	July 2020	300		—		—		300		—		—
Uncommitted Credit Facilities		40		—		4		36		—		4
Total U.K. Credit Facilities (a)		£	1,095	£	269	£	4	£	822	£	133	£	4
U.S.
PPL Capital Funding
Syndicated Credit Facility	Jan 2021	$	700	$	—	$	320	$	380	$	—	$	151
Syndicated Credit Facility	Nov 2018	300		—		—		300		—		300
Bilateral Credit Facility	Mar 2017	150		—		17		133		—		20
Total PPL Capital Funding Credit Facilities		$	1,150	$	—	$	337	$	813	$	—	$	471
PPL Electric
Syndicated Credit Facility	Jan 2021	$	400	$	—	$	7	$	393	$	—	$	1
LKE
Syndicated Credit Facility (b)	Oct 2018	$	75	$	—	$	—	$	75	$	75	$	—
LG&E
Syndicated Credit Facility	Dec 2020	$	500	$	—	$	110	$	390	$	—	$	142
KU
Syndicated Credit Facility	Dec 2020	$	400	$	—	$	29	$	371	$	—	$	48
Letter of Credit Facility	Oct 2017	198		—		198		—		—		198
Total KU Credit Facilities		$	598	$	—	$	227	$	371	$	—	$	246

(a) WPD plc's amounts borrowed at June 30, 2016 and December 31, 2015 were USD-denominated borrowings of $200 million for both periods, which bore interest at 1.27% and 1.83%. The unused capacity reflects the amount borrowed in GBP of £138 million as of the date borrowed. WPD (South West) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $146 million and bore interest at 0.92%. WPD (East Midlands) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $45 million and bore interest at 0.92%. At June 30, 2016, the unused capacity under the U.K. credit facilities was approximately $1.2 billion.

(b) LKE's interest rate on outstanding borrowings at December 31, 2015 was 1.68%.

In July 2016, the expiration dates for the WPD (South West), WPD (East Midlands) and WPD (West Midlands) syndicated credit facilities were extended to July 2021.

PPL, 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, 2016							December 31, 2015
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.84%	$	1,000	$	320	$	680	0.78%	$	451
PPL Electric	0.75%	400		6		394			—
LG&E	0.70%	350		110		240		0.71%	142
KU	0.70%	350		29		321		0.72%	48
Total		$	2,100	$	465	$	1,635		$	641

(LKE)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In May 2016, PPL Capital Funding issued $650 million of 3.10% Senior Notes due 2026. PPL Capital Funding received proceeds of $645 million, net of a discount and underwriting fees, which will be used to invest in or make loans to subsidiaries of PPL, to repay short-term debt and for general corporate purposes.

In May 2016, WPD (East Midlands) borrowed £100 million at 0.4975% under a new ten-year index linked term loan agreement, which will be used for general corporate purposes.

In May 2016, WPD plc repaid the entire $460 million principal amount of its 3.90% Senior Notes upon maturity.

(PPL and PPL Electric)

In March 2016, the LCIDA issued $116 million of Pollution Control Revenue Refunding Bonds, Series 2016A due 2029 and $108 million of Pollution Control Revenue Refunding Bonds, Series 2016B due 2027 on behalf of PPL Electric. The bonds were issued bearing interest at an initial term rate of 0.90% through their mandatory purchase dates of September 1, 2017 and August 15, 2017. The proceeds of the bonds were used to redeem $116 million of 4.70% Pollution Control Revenue Refunding Bonds, 2005 Series A due 2029 and $108 million of 4.75% Pollution Control Revenue Refunding Bonds, 2005 Series B due 2027 previously issued by the LCIDA on behalf of PPL Electric.

In connection with the issuance of each of these new series of LCIDA bonds, PPL Electric entered into a loan agreement with the LCIDA pursuant to which the LCIDA has loaned to PPL Electric the proceeds of the LCIDA bonds on payment terms that correspond to the LCIDA bonds. In order to secure its obligations under the loan agreement, PPL Electric issued $224 million of First Mortgage Bonds under its 2001 Mortgage Indenture, which also have payment terms that correspond to the LCIDA bonds.

(PPL)

ATM Program

In February 2015, PPL filed a registration statement with the SEC and 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. For the three and six months ended June 30, 2016, PPL did not issue any shares under the agreements. For 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 2016, PPL declared a quarterly common stock dividend, payable July 1, 2016, of 38 cents per share (equivalent to $1.52 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.

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Acquisitions, Development and Divestitures

6 Months Ended

Jun. 30, 2016

Acquisitions Development And Divestitures [Abstract]

Acquisitions, Development and Divestitures

Acquisitions, Development and Divestitures

(All Registrants)

The Registrants from time to time evaluate opportunities for potential acquisitions, divestitures and development projects. Development projects are reexamined based on market conditions and other factors to determine whether to proceed with, modify or terminate the projects. Any resulting transactions may impact future financial results. See Note 8 in the Registrants' 2015 Form 10-K for additional information.

(PPL)

Discontinued Operations

Spinoff of PPL Energy Supply

In June 2015, PPL completed the spinoff of PPL Energy Supply which combined its competitive power generation businesses with those of Riverstone to form a new, stand-alone, publicly traded company named Talen Energy.

Following completion of the spinoff, PPL shareowners owned 65% of Talen Energy and affiliates of Riverstone owned 35%. The spinoff had no effect on the number of PPL common shares owned by PPL shareowners or the number of shares of PPL common stock outstanding. The transaction is intended to be tax-free to PPL and its shareowners for U.S. federal income tax purposes.

PPL has no continuing ownership interest in or control of Talen Energy and Talen Energy Supply (formerly PPL Energy Supply). See Note 8 in PPL's 2015 Form 10-K for additional information.

Loss on Spinoff

In June 2015, in conjunction with the accounting for the spinoff, PPL evaluated whether the fair value of the Supply segment's net assets was less than the carrying value as of the June 1, 2015 spinoff date.

PPL considered several valuation methodologies to derive a fair value estimate of its Supply segment at the spinoff date. These methodologies included considering the closing "when-issued" Talen Energy market value on June 1, 2015 (the spinoff date), adjusted for the proportional share of the equity value attributable to the Supply segment, as well as, the valuation methods consistently used in PPL's goodwill impairment assessments - an income approach using a discounted cash flow analysis of the Supply segment and an alternative market approach considering market multiples of comparable companies.

Although the market value of Talen Energy approach utilized the most observable inputs of the three approaches, PPL considered certain limitations of the "when-issued" trading market for the spinoff transaction including the short trading duration, lack of liquidity in the market and anticipated initial Talen stock ownership base selling pressure, among other factors, and concluded that these factors limit this input being solely determinative of the fair value of the Supply segment. As such, PPL also considered the other valuation approaches in estimating the overall fair value, but ultimately assigned the highest weighting to the Talen Energy market value approach.

The following table summarizes PPL's fair value analysis:

Approach	Weighting	Weighted Fair Value (in billions)
Talen Energy Market Value	50%	$	1.4
Income/Discounted Cash Flow	30%	1.1
Alternative Market (Comparable Company)	20%	0.7
Estimated Fair Value		$	3.2

A key assumption included in the fair value estimate is the application of a control premium of 25% in the two market approaches. PPL concluded it was appropriate to apply a control premium in these approaches as the goodwill impairment testing guidance was followed in determining the estimated fair value of the Supply segment which had historically been a reporting unit for PPL. This guidance provides that the market price of an individual security (and thus the market capitalization of a reporting unit with publicly traded equity securities) may not be representative of the fair value of the reporting unit. This guidance also indicates that substantial value may arise to a controlling shareholder from the ability to take advantage of synergies and other benefits that arise from control over another entity, and that the market price of a company's individual share of stock does not reflect this additional value to a controlling shareholder. Therefore, the quoted market price need not be the sole measurement basis for determining the fair value, and including a control premium is appropriate in measuring the fair value of a reporting unit.

In determining the control premium, PPL reviewed premiums received during the last five years in market sales transactions obtained from observable independent power producer and hybrid utility transactions greater than $1 billion. Premiums for these transactions ranged from 5% to 42% with a median of approximately 25%. Given these metrics, PPL concluded a control premium of 25% to be reasonable for both of the market valuation approaches used.

Assumptions used in the discounted cash flow analysis included forward energy prices, forecasted generation, and forecasted operation and maintenance expenditures that were consistent with assumptions used in the Energy Supply portion of the Talen Energy business planning process at that time and a market participant discount rate.

Using these methodologies and weightings, PPL determined the estimated fair value of the Supply segment (classified as Level 3) was below its carrying value of $4.1 billion and recorded a loss on the spinoff of $879 million for the three and six months ended June 30, 2015, which is reflected in discontinued operations and is nondeductible for tax purposes. This amount served to reduce the basis of the net assets accounted for as a dividend at the June 1, 2015 spinoff date.

Costs of Spinoff

Employee-related costs incurred in the three and six months ended June 30, 2015 primarily included accelerated stock-based compensation and pro-rated performance-based cash incentive and stock-based compensation awards, primarily for PPL Energy Supply employees and for PPL Services employees who became PPL Energy Supply employees in connection with the transaction. PPL Energy Supply recognized $24 million of these costs at the spinoff closing date which are reflected in discontinued operations.

PPL also recorded $36 million and $42 million of third-party costs related to this transaction during the three and six months ended June 30, 2015. Of these costs, $29 million and $31 million were primarily for bank advisory, legal and accounting fees to facilitate the transaction, and are reflected in discontinued operations. An additional $7 million and $11 million of consulting and other costs were incurred to prepare the new Talen Energy organization for the spinoff and reconfigure the remaining PPL service functions. These costs are primarily recorded in "Other operation and maintenance" on the Statement of Income.

At the close of the transaction, $72 million ($42 million after-tax) of cash flow hedges, primarily unamortized losses on PPL interest rate swaps recorded in AOCI and designated as cash flow hedges of PPL Energy Supply's future interest payments, were reclassified into earnings and reflected in discontinued operations for the three and six months ended June 30, 2015.

Continuing Involvement(PPL and PPL Electric)

As a result of the spinoff, PPL and PPL Energy Supply entered into a Transition Services Agreement (TSA) that terminates no later than two years after the spinoff. Pursuant to the TSA, PPL is providing Talen Energy certain information technology, financial and accounting, human resource and other specified services. For the three and six months ended June 30, 2016, the amounts PPL billed Talen Energy for these services were $10 million and $20 million. For the period June 1, 2015 to June 30, 2015, the amounts PPL billed Talen Energy for these services were not significant. In general, the fees for the transition services allow the provider to recover its cost of the services, including overheads, but without margin or profit.

Additionally, prior to the spinoff, through the annual competitive solicitation process, PPL EnergyPlus was awarded supply contracts for a portion of the PLR generation supply for PPL Electric, which were retained by Talen Energy Marketing as part of the spinoff. PPL Electric's supply contracts with Talen Energy Marketing extend through November 2016. Energy purchases from PPL EnergyPlus were previously included in PPL Electric's Statements of Income as "Energy purchases from affiliate" but were eliminated in PPL's Consolidated Statements of Income.

For the three and six months ended June 30, 2016, PPL Electric's energy purchases from Talen Energy Marketing were $29 million and $83 million. For the period June 1, 2015 to June 30, 2015, PPL Electric's energy purchases from Talen Energy Marketing were not significant. These energy purchases are no longer considered affiliate transactions.

Summarized Results of Discontinued Operations(PPL)

The operations of the Supply segment prior to the spinoff on June 1, 2015 are included in "Income (Loss) from Discontinued Operations (net of income taxes)" on the Statements of Income. Following are the components of Discontinued Operations in the Statement of Income for the periods ended June 30, 2015:

	Three Months			Six Months
Operating revenues	$	483		$	1,427
Operating expenses	561			1,328
Other Income (Expense) - net	(29		)	(22		)
Interest expense (a)	112			150
Income (loss) before income taxes	(219		)	(73		)
Income tax expense (benefit)	(91		)	(40		)
Loss on spinoff	(879		)	(879		)
Income (Loss) from Discontinued Operations (net of income taxes)	$	(1,007	)	$	(912	)

(a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized.

Development

Regional Transmission Line Expansion Plan(PPL and PPL Electric)

Northeast/Pocono

In October 2012, the FERC issued an order in response to PPL Electric's December 2011 request for ratemaking incentives for the Northeast/Pocono Reliability project (a new 58-mile, 230 kV transmission line that includes three new substations and upgrades to adjacent facilities). The FERC granted the incentive for inclusion in rate base of all prudently incurred construction work in progress costs but denied the requested incentive for a 100 basis point adder to the return on equity.

In December 2012, PPL Electric submitted an application to the PUC requesting permission to site and construct the project. In January 2014, the PUC issued a final order approving the application. The line was energized in April 2016, completing the approximately $350 million project which includes additional substation security enhancements. Costs related to the project were capitalized and are included on the Balance Sheets, primarily in "Regulated utility plant."

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Defined Benefits

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Defined Benefits

Defined Benefits

(PPL, LKE and LG&E)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense and regulatory assets, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended June 30:

	Pension Benefits
	Three Months												Six Months
	U.S.						U.K.						U.S.						U.K.
	2016			2015			2016 (b)			2015			2016			2015			2016 (b)			2015
PPL
Service cost	$	16		$	26		$	18		$	19		$	33		$	56		$	36		$	39
Interest cost	44			52			62			77			87			110			124			156
Expected return on plan assets	(58		)	(69		)	(132		)	(129		)	(114		)	(145		)	(265		)	(260		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	10			22			36			40			25			47			73			79
Net periodic defined benefit costs (credits) (a)	$	15		$	33		$	(16	)	$	7		$	35		$	72		$	(32	)	$	14
LKE
Service cost	$	6		$	6								$	12		$	13
Interest cost	18			17									35			34
Expected return on plan assets	(24		)	(22		)							(45		)	(44		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	5			9									10			17
Net periodic defined benefit costs	$	8		$	12								$	16		$	24
LG&E
Service cost	$	1		$	1								$	1		$	1
Interest cost	4			4									7			7
Expected return on plan assets	(5		)	(5		)							(10		)	(10		)
Amortization of:
Prior service cost	1			—									2			1
Actuarial loss	1			3									3			6
Net periodic defined benefit costs	$	2		$	3								$	3		$	5

(a) For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

(b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

	Other Postretirement Benefits
	Three Months						Six Months
	2016			2015			2016			2015
PPL
Service cost	$	2		$	3		$	4		$	7
Interest cost	7			7			13			14
Expected return on plan assets	(6		)	(7		)	(11		)	(14		)
Net periodic defined benefit costs	$	3		$	3		$	6		$	7
LKE
Service cost	$	1		$	2		$	2		$	3
Interest cost	3			3			5			5
Expected return on plan assets	(1		)	(2		)	(3		)	(3		)
Amortization of prior service cost	—			—			1			1
Net periodic defined benefit costs	$	3		$	3		$	5		$	6

(PPL Electric, LG&E and KU)

In addition to the specific plans it sponsors, LG&E is allocated costs of defined benefit plans sponsored by LKE. PPL Electric and KU do not directly sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE. These allocations are based on participation in those plans, which management believes are reasonable. For the periods ended June 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric	$	5	$	8	$	11	$	16
LG&E	3		4		5		7
KU	3		4		6		9

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Matters

(All Registrants)

PPL and its subsidiaries are involved in legal proceedings, claims and litigation in the ordinary course of business. PPL and its subsidiaries cannot predict the outcome of such matters, or whether such matters may result in material liabilities, unless otherwise noted.

WKE Indemnification(PPL and LKE)

See footnote (e) to the table in "Guarantees and Other Assurances" below for information on an LKE indemnity relating to its former WKE lease, including related legal proceedings.

(PPL, LKE, LG&E and KU)

Cane Run Environmental Claims

In December 2013, six residents, on behalf of themselves and others similarly situated, filed a class action complaint against LG&E and PPL in the U.S. District Court for the Western District of Kentucky alleging violations of the Clean Air Act and RCRA. In addition, these plaintiffs assert common law claims of nuisance, trespass and negligence. These plaintiffs seek injunctive relief and civil penalties, plus costs and attorney fees, for the alleged statutory violations. Under the common law claims, these plaintiffs seek monetary compensation and punitive damages for property damage and diminished property values for a class consisting of residents within four miles of the Cane Run plant. In their individual capacities, these plaintiffs seek compensation for alleged adverse health effects. In response to a motion to dismiss filed by PPL and LG&E, in July 2014, the court dismissed the plaintiffs' RCRA claims and all but one Clean Air Act claim, but declined to dismiss their common law tort claims. Upon motion of LG&E and PPL, the district court certified for appellate review the issue of whether the state common law claims are preempted by federal statute. In December 2014, the U.S. Court of Appeals for the Sixth Circuit issued an order granting appellate review regarding the above matter. Oral argument before the Sixth Circuit was held in August 2015. In November 2015, the Sixth Circuit issued an opinion affirming the District Court's ruling that plaintiffs' state law claims are not preempted by the Clean Air Act and remanding the matter to the District Court for further proceedings. The District Court has issued an order setting a discovery schedule through the second quarter of 2017. PPL, LKE and LG&E cannot predict the outcome of this matter. LG&E retired one coal-fired unit at the Cane Run plant in March 2015 and the remaining two coal-fired units at the plant in June 2015.

Mill Creek Environmental Claims

In May 2014, the Sierra Club filed a citizen suit against LG&E in the U.S. District Court for the Western District of Kentucky for alleged violations of the Clean Water Act. The Sierra Club alleges that various discharges at the Mill Creek plant constitute violations of the plant's water discharge permit. The Sierra Club seeks civil penalties, injunctive relief, costs and attorney's fees. In August 2015, the Court denied cross-motions for summary judgment filed by both parties and directed the parties to proceed with discovery. The parties have conducted discovery and settlement discussions in the matter. PPL, LKE and LG&E cannot predict the ultimate outcome of this matter, but believe the plant is operating in compliance with the permits and does not presently expect the matter to have a material effect on operations or result in significant losses beyond the amounts already recorded.

E.W. Brown Environmental Claims

In October 2015, KU received a notice of intent from Earthjustice and the Sierra Club informing certain federal and state agencies of the Sierra Club's intent to file a citizen suit, following expiration of the mandatory 60-day notification period, for alleged violations of the Clean Water Act. The claimant alleges discharges at the E.W. Brown plant in violation of applicable rules and the plant's water discharge permit. The claimant asserts that, unless the alleged discharges are promptly brought into compliance, it intends to seek civil penalties, injunctive relief and attorney's fees. In November 2015, the claimants submitted an amended notice of intent to add the Kentucky Waterways Alliance as a claimant. PPL, LKE and KU cannot predict the outcome of this matter or the potential impact on the operations of the E. W. Brown plant, including increased capital or operating costs, if any.

Trimble County Unit 2 Air Permit

The Sierra Club and other environmental groups petitioned the Kentucky Environmental and Public Protection Cabinet to overturn the air permit issued for the Trimble County Unit 2 baseload coal-fired generating unit, but the agency upheld the permit in an order issued in September 2007. In response to subsequent petitions by environmental groups, the EPA ordered certain non-material changes to the permit which, in January 2010, were incorporated into a final revised permit issued by the Kentucky Division for Air Quality. In March 2010, the environmental groups petitioned the EPA to object to the revised state permit. Until the EPA issues a final ruling on the pending petition and all available appeals are exhausted, PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potential impact on the operations of the Trimble County plant, including increased capital or operating costs, if any.

Trimble County Water Discharge Permit

In May 2010, the Kentucky Waterways Alliance and other environmental groups filed a petition with the Kentucky Energy and Environment Cabinet (KEEC) challenging the Kentucky Pollutant Discharge Elimination System permit issued in April 2010, which covers water discharges from the Trimble County plant. In November 2010, the KEEC issued a final order upholding the permit, which was subsequently appealed by the environmental groups. In September 2013, the Franklin Circuit Court reversed the KEEC order upholding the permit and remanded the permit to the agency for further proceedings. LG&E and the KEEC appealed the order to the Kentucky Court of Appeals. In July 2015, the Court of Appeals upheld the lower court ruling. On February 10, 2016, the Kentucky Supreme Court issued an order granting discretionary review. PPL, LKE, LG&E and KU are unable to predict the outcome of this matter or the potential impact on the operations of the Trimble County plant, including increased capital or operating costs, if any.

Regulatory Issues(All Registrants)

See Note 6 for information on regulatory matters related to utility rate regulation.

Electricity - Reliability Standards

The NERC is responsible for establishing and enforcing mandatory reliability standards (Reliability Standards) regarding the bulk electric system in North America. The FERC oversees this process and independently enforces the Reliability Standards.

The Reliability Standards have the force and effect of law and apply to certain users of the bulk electric system, including electric utility companies, generators and marketers. Under the Federal Power Act, the FERC may assess civil penalties for certain violations.

LG&E, KU and PPL Electric monitor their compliance with the Reliability Standards and continue to self-report or self-log potential violations of applicable reliability requirements and submit accompanying mitigation plans, as required. The resolution of a small number of potential violations is pending. Penalties incurred to date have not been significant. Any Regional Reliability Entity (including RFC or SERC) determination concerning the resolution of violations of the Reliability Standards remains subject to the approval of the NERC and the FERC.

In the course of implementing their programs to ensure compliance with the Reliability Standards by those PPL affiliates subject to the standards, certain other instances of potential non-compliance may be identified from time to time. The Registrants cannot predict the outcome of these matters, and cannot estimate a range of reasonably possible losses, if any.

Environmental Matters

(All Registrants)

Due to the environmental issues discussed below or other environmental matters, it may be necessary for the Registrants to modify, curtail, replace or cease operation of certain facilities or performance of certain operations to comply with statutes, regulations and other requirements of regulatory bodies or courts. In addition, legal challenges to new environmental permits or rules add to the uncertainty of estimating the future cost of these permits and rules.

WPD's distribution businesses are subject to certain statutory and regulatory environmental requirements. In connection with the matters discussed below, it may be necessary for WPD to incur significant compliance costs, which costs may be recoverable through rates subject to the approval of Ofgem. PPL believes that WPD has taken and continues to take measures to comply with all applicable environmental laws and regulations.

LG&E and KU are entitled to recover, through the ECR mechanism, certain costs of complying with the Clean Air Act, as amended, and those federal, state, or local environmental requirements applicable to coal combustion wastes and by-products from facilities that generate electricity from coal in accordance with approved compliance plans. Costs not covered by the ECR mechanism for LG&E and KU and all such costs for PPL Electric are subject to rate recovery before the companies' respective state regulatory authorities, or the FERC, if applicable. Because neither WPD nor PPL Electric owns any generating plants, their exposure to related environmental compliance costs is reduced. PPL, PPL Electric, LKE, LG&E and KU can provide no assurances as to the ultimate outcome of future environmental or rate proceedings before regulatory authorities.

Air

(PPL, LKE, LG&E and KU)

The Clean Air Act, which regulates air pollutants from mobile and stationary sources in the United States, has a significant impact on the operation of fossil fuel plants. The Clean Air Act requires the EPA periodically to review and establish concentration levels in the ambient air for six criteria pollutants to protect public health and welfare. These concentration levels are known as NAAQS. The six criteria pollutants are carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter and sulfur dioxide.

Federal environmental regulation of these criteria pollutants require states to adopt implementation plans, known as state implementation plans, for certain pollutants, which detail how the state will attain the standards that are mandated by the relevant law or regulation. Each state identifies the areas within its boundaries that meet the NAAQS (attainment areas) and those that do not (non-attainment areas), and must develop a state implementation plan both to bring non-attainment areas into compliance with the NAAQS and to maintain good air quality in attainment areas. In addition, for attainment of ozone and fine particulates standards, states in the eastern portion of the country, including Kentucky, are subject to a regional program developed by the EPA known as the Cross-State Air Pollution Rule. The NAAQS, future revisions to the NAAQS and state implementation plans, or future revisions to regional programs, may require installation of additional pollution controls, the costs of which PPL, LKE, LG&E and KU believe are subject to cost recovery.

Although PPL, LKE, LG&E and KU do not anticipate significant costs to comply with these programs, changes in market or operating conditions could result in different costs than anticipated.

National Ambient Air Quality Standards (NAAQS)

Under the Clean Air Act, the EPA is required to reassess the NAAQS for certain air pollutants on a five-year schedule. In 2008, the EPA revised the NAAQS for ozone and proposed to further strengthen the standard in November 2014. The EPA released a new ozone standard on October 1, 2015. The states and EPA will determine attainment with the new ozone standard through review of relevant ambient air monitoring data, with attainment or nonattainment designations scheduled no later than October 2017. States are also obligated to address interstate transport issues associated with new ozone standards through the establishment of "good neighbor" state implementation plans for those states that are found to contribute significantly to another state's non-attainment. States that are not in the ozone transport region, including Kentucky, are working together to evaluate further nitrogen oxide reductions from fossil-fueled plants with SCRs. The nature and timing of any additional reductions resulting from these evaluations cannot be predicted at this time.

In 2010, the EPA finalized revised NAAQS for sulfur dioxide and required states to identify areas that meet those standards and areas that are in "non-attainment". In July 2013, the EPA finalized non-attainment designations for parts of the country, including part of Jefferson County in Kentucky. Attainment must be achieved by 2018. PPL, LKE, LG&E and KU anticipate that certain previously required compliance measures, such as upgraded or new sulfur dioxide Scrubbers at certain plants and the retirement of coal-fired generating units at LG&E's Cane Run plant and KU's Green River plant, will help to achieve compliance with the new sulfur dioxide and ozone standards. If additional reductions are required, the costs could be significant.

Mercury and Air Toxics Standards (MATS)

In February 2012, the EPA finalized the MATS rule requiring reductions of mercury and other hazardous air pollutants from fossil-fuel fired power plants, with an effective date of April 16, 2012. The MATS rule was challenged by industry groups and states and was upheld by the U.S. Court of Appeals for the D. C. Circuit Court (D.C. Circuit Court) in April 2014. A group of states subsequently petitioned the U.S. Supreme Court (Supreme Court) to review this decision and, in June 2015, the Supreme Court held that the EPA failed to properly consider costs when deciding to regulate hazardous air emissions from power plants under MATS. The Supreme Court remanded the matter to the D.C. Circuit Court, which in December 2015 remanded the rule to the EPA without vacating it. The EPA has proposed a supplemental finding regarding costs of the rule and has announced that it intends to make a final determination in 2016. The EPA's MATS rule remains in effect during the pendency of the ongoing proceedings.

LG&E and KU have installed significant controls in response to the MATS rule and in conjunction with compliance with other environmental requirements, including fabric-filter baghouses, upgraded Scrubbers or chemical additive systems for which appropriate KPSC authorization and/or ECR treatment has been received. LG&E and KU have received KPSC approval for a compliance plan providing for installation of additional MATS-related controls; however, the estimated cost of these controls is not expected to be significant for either LG&E or KU. PPL, LKE, LG&E and KU cannot predict the outcome of the MATS rule or its potential impact, if any, on plant operations, rate treatment or future capital or operating needs. See Note 6 for additional information.

New Source Review (NSR)

The NSR litigation brought by the EPA, states and environmental groups against coal-fired generating plants in past years continues to proceed through the courts. Although none of this litigation directly involves PPL, LKE, LG&E or KU, it can influence the permitting of large capital projects at LG&E's and KU's power plants, the costs of which cannot presently be determined but could be significant.

Climate Change

There is continuing world-wide attention focused on issues related to climate change. Most recently, on June 29, 2016, the President announced that the United States, Canada and Mexico have established the North American Climate, Clean Energy, and Environment Partnership Plan which specifies actions to promote clean energy, address climate change and protect the environment. The plan includes a goal to provide 50% of the energy used in North America from clean energy sources by 2025. The plan does not impose any nation-specific requirements.

In December 2015, 195 nations, including the U.S., signed the Paris Agreement on Climate which establishes a comprehensive framework for the reduction of greenhouse gas (GHG) emissions from both developed and developing nations. Although the agreement does not establish binding reduction requirements, it requires each nation to prepare, communicate and maintain GHG reduction commitments. Reductions can currently be achieved in a variety of ways, including energy conservation, power plant efficiency improvements, reduced utilization of coal-fired generation or replacing coal-fired generation with natural gas or renewable generation. Based on EPA's Clean Power Plan described below, the U.S. has committed to an initial reduction target of 26% to 28% below 2005 levels by 2025.

The UK has enacted binding carbon reduction requirements that are applicable to WPD. Under the UK law, WPD must purchase carbon allowances to offset emissions associated with WPD’s operations. The cost of these allowances is included in WPD’s current operating expenses. WPD expects these expenses to decrease as a result of energy efficiency measures and the removal of 18 fuel sources previously included in the allowance requirements.

The EPA's Rules under Section 111 of the Clean Air Act

As further described below, the EPA finalized rules imposing GHG emission standards for both new and existing power plants in the United States. The EPA has also issued a proposed federal implementation plan that would apply to any states that fail to submit an acceptable state implementation plan under these rules. The EPA's authority to promulgate these regulations under Section 111 of the Clean Air Act has been challenged in the D.C. Circuit Court by several states and industry groups. On February 9, 2016, the Supreme Court stayed the rule for existing plants (the Clean Power Plan) pending the D.C. Circuit Court's review and subsequent review by the Supreme Court if a writ of certiorari is filed and granted.

The EPA's rule for new power plants imposes separate emission standards for coal and natural gas units based on the application of different technologies. The coal standard is based on the application of partial carbon capture and sequestration technology, but because this technology is not presently commercially available, the rule effectively precludes the construction of new coal-fired plants. The standard for NGCC power plants is the same as the EPA proposed in 2012 and is not continuously achievable. The preclusion of new coal-fired plants and the compliance difficulties posed for new natural gas-fired plants could have a significant industry-wide impact.

The EPA's Clean Power Plan

The EPA's rule for existing power plants, referred to as the Clean Power Plan, was published in the Federal Register in October 2015. The Clean Power Plan contains state-specific rate-based and mass-based reduction goals and guidelines for the development, submission and implementation of state implementation plans to achieve the state goals. State-specific goals were calculated from 2012 data by applying the EPA's broad interpretation and definition of the BSER, resulting in the most stringent targets to be met in 2030, with interim targets to be met beginning in 2022. The EPA believes it has offered some flexibility to the states as to how their compliance plans can be crafted, including the option to use a rate-based approach (limit emissions per megawatt hour) or a mass-based approach (limit total tons of emissions per year), and the option to demonstrate compliance through emissions trading and multi-state collaborations. Under the rate-based approach, Kentucky would need to make a 41% reduction from its 2012 emissions rate and under a mass-based approach it would need to make a 36% reduction. These reductions are significantly greater than initially proposed and present significant challenges to the state. If the Clean Power Plan is ultimately upheld and Kentucky fails to develop an approvable implementation plan by the applicable deadline, the EPA would impose a federal implementation plan that could be more stringent than what the state plan might provide. Depending on the provisions of the Kentucky implementation plan, LG&E and KU may need to modify their current portfolio of generating assets during the next decade and/or participate in an allowance trading program.

LG&E and KU are participating in the ongoing regulatory processes at the state and federal level. Various states, industry groups and individual companies including LKE have filed petitions for reconsideration with EPA and petitions for review with the D.C. Circuit Court challenging the Clean Power Plan. On February 9, 2016, the Supreme Court stayed the rule pending the D.C. Circuit Court's review. PPL, LKE, LG&E and KU cannot predict the outcome of this matter or the potential impact, if any, on plant operations, or future capital or operating costs. PPL, LKE, LG&E and KU believe that the costs, which could be significant, would be subject to cost recovery.

In April 2014, the Kentucky General Assembly passed legislation limiting the measures that the Kentucky Energy and Environment Cabinet may consider in setting performance standards to comply with the EPA's regulations governing GHG emissions from existing sources. The legislation provides that such state GHG performance standards shall be based on emission reductions, efficiency measures and other improvements available at each power plant, rather than renewable energy, end-use energy efficiency, fuel switching and re-dispatch. These statutory restrictions may make it more difficult for Kentucky to achieve the GHG reduction levels that the EPA has established for Kentucky.

Sulfuric Acid Mist Emissions (PPL, LKE and LG&E)

On June 30, 2016, the EPA issued a notice of violation under the Clean Air Act alleging that LG&E violated applicable rules relating to sulfuric acid mist emissions at its Mill Creek plant. The notice alleges failure to install proper controls, failure to operate the facility consistent with good air pollution control practice, and causing emissions exceeding applicable requirements or constituting a nuisance or endangerment. LG&E believes it has complied with applicable regulations during the relevant time period. Discussions between the EPA and LG&E are ongoing. PPL, LKE and LG&E are unable to predict the outcome of this matter or the potential impact on operations of the Mill Creek plant, including increased capital or operating costs, and potential civil penalties or remedial measures, if any.

Water/Waste

(PPL, LKE, LG&E and KU)

Coal Combustion Residuals (CCRs)

On April 17, 2015, the EPA published its final rule regulating CCRs. CCRs include fly ash, bottom ash and sulfur dioxide scrubber wastes. The rule became effective on October 19, 2015. It imposes extensive new requirements, including location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements on CCR impoundments and landfills that are located on active power plants in the United States and not closed. Under the rule, the EPA will regulate CCRs as non-hazardous under Subtitle D of RCRA and allow beneficial use of CCRs, with some restrictions. The rule's requirements for covered CCR impoundments and landfills include implementation of groundwater monitoring and commencement or completion of closure activities generally between three and ten years from certain triggering events. This self-implementing rule requires posting of compliance documentation on a publicly accessible website and is enforceable solely through citizen suits. LG&E and KU are also subject to state rules applicable to CCR management which may potentially be modified to reflect some or all requirements of the federal rule. Industry groups, environmental groups, individual companies and others have filed legal challenges to the final rule which are pending before the D.C. Circuit Court of Appeals.

LG&E and KU have received KPSC approval for a compliance plan providing for construction of additional landfill capacity at the Brown Station, closure of impoundments at the Mill Creek, Trimble County, Brown, and Ghent stations, and construction of process water management facilities at those plants. In addition to the foregoing measures required for compliance with federal CCR rule requirements, LG&E and KU are also proposing to close impoundments at the retired Green River, Pineville and Tyrone plants to comply with applicable state law requirements. PPL, LKE, LG&E, and KU estimate the cost of these CCR compliance measures at $311 million for LG&E and $661 million for KU. See Note 6 for additional information.

In connection with the final CCR rule, LG&E and KU recorded increases to existing AROs during 2015. See Note 16 for additional information. Further changes to AROs, current capital plans or operating costs may be required as estimates are refined based on closure developments, groundwater monitoring results, and regulatory or legal proceedings. Costs relating to this rule are subject to rate recovery.

Clean Water Act

Regulations under the federal Clean Water Act dictate permitting and mitigation requirements for facilities and construction projects in the United States. Many of those requirements relate to power plant operations, including requirements related to the treatment of pollutants in effluents prior to discharge, the temperature of effluent discharges and the location, design and construction of cooling water intake structures at generating facilities, standards intended to protect aquatic organisms by reducing capture in the screens attached to cooling water intake structures (impingement) at generating facilities and the water volume brought into the facilities (entrainment). The requirements could impose significant costs for LG&E and KU which are subject to rate recovery.

Effluent Limitations Guidelines (ELGs)

On September 30, 2015, the EPA released its final effluent limitations guidelines for wastewater discharge permits for new and existing steam electric generating facilities. The rule provides strict technology-based discharge limitations for control of pollutants in scrubber wastewater, fly ash and bottom ash transport water, mercury control wastewater, gasification wastewater and combustion residual leachate. The new guidelines require deployment of additional control technologies providing physical, chemical and biological treatment of wastewaters. The guidelines also mandate operational changes including "no discharge" requirements for fly ash and bottom ash transport waters and mercury control wastewaters. The implementation date for individual generating stations will be determined by the states on a case-by-case basis according to criteria provided by the EPA, but the requirements of the rule must be fully implemented no later than 2023. It has not been decided how Kentucky intends to integrate the ELGs into its routine permit renewal process. Industry groups, environmental groups, individual companies and others have filed legal challenges to the final rule which have been consolidated before the United States Fifth Circuit Court of Appeals. LG&E and KU are developing compliance strategies and schedules. PPL, LKE, LG&E and KU are unable to fully estimate compliance costs or timing at this time, although certain preliminary estimates are included in current capital forecasts for applicable periods. Costs to comply with ELGs or other discharge limits, which are expected to be significant, are subject to rate recovery.

Clean Water Act Section 316(b)

The EPA's final 316(b) rule for existing facilities became effective in October 2014, and regulates cooling water intake structures and their impact on aquatic organisms. States are allowed broad discretion to make site-specific determinations under the rule. The rule requires existing facilities to choose between several options to reduce the impact to aquatic organisms that become trapped against water intake screens (impingement) and to determine the intake structure's impact on aquatic organisms pulled through a plant's cooling water system (entrainment). Plants equipped with closed-cycle cooling, an acceptable option, would likely not incur substantial costs. Once-through systems would likely require additional technology to comply with the rule. Based on studies conducted by LG&E and KU to date, all plants will incur only insignificant operational costs. In addition, LG&E's Mill Creek Unit 1 is expected to incur capital costs. PPL, LKE, LG&E and KU are evaluating compliance strategies but do not presently expect the compliance costs, which are subject to rate recovery, to be significant.

(All Registrants)

Waters of the United States (WOTUS)

The U.S. Court of Appeals for the Sixth Circuit has issued a stay of EPA's rule on the definition of WOTUS pending the court's review of the rule. The effect of the stay is that the WOTUS rule is not in effect anywhere in the United States. The ultimate outcome of the court's review of the rule remains uncertain. Because of the strict permitting programs already in place in Kentucky and Pennsylvania, the Registrants do not expect the rule to have a significant impact on their operations.

Other Issues

The EPA is reassessing its polychlorinated biphenyls (PCB) regulations under the Toxic Substance Control Act, which was significantly updated on June 22, 2016. In 2010, the EPA had issued an Advanced Notice of Proposed Rulemaking for changes to these regulations. The rulemaking, which could lead to a phase-out in the United States of all or some equipment containing PCBs, is not likely to be affected by the revisions to the Toxic Substances Control Act. The EPA has postponed the release of revisions to its proposed rulemaking. The Registrants cannot predict at this time the outcome of the proposed EPA rulemaking and what impact, if any, it would have on their facilities, but the costs could be significant.

Superfund and Other Remediation(All Registrants)

PPL Electric is potentially responsible for costs at several sites listed by the EPA under the federal Superfund program, including the Columbia Gas Plant site, the Metal Bank site and the Brodhead site. Clean-up actions have been or are being undertaken at all of these sites, the costs of which have not been significant to PPL Electric. Should the EPA require different or additional measures in the future, however, or should PPL Electric's share of costs at multi-party sites increase substantially more than expected, the costs could be significant.

PPL Electric, LG&E and KU are investigating, responding to agency inquiries, remediating, or have completed the remediation of, several sites that were not addressed under a regulatory program such as Superfund, but for which PPL Electric, LG&E and KU may be liable for remediation. These include a number of former coal gas manufacturing plants in Pennsylvania and Kentucky previously owned or operated or currently owned by predecessors or affiliates of PPL Electric, LG&E and KU. To date, the costs of these sites have not been significant.

There are additional sites, formerly owned or operated by PPL Electric, LG&E and KU predecessors or affiliates. LG&E and KU lack information on the condition of such additional sites and are therefore unable to estimate any potential liability they may have or a range of reasonably possible losses, if any, related to these sites. At June 30, 2016 and December 31, 2015, PPL Electric had a recorded liability of $10 million representing its best estimate of the probable loss incurred to remediate additional sites previously owned or operated by PPL Electric predecessors or affiliates. Depending on the outcome of investigations at sites where investigations have not begun or been completed, or developments at sites for which information is incomplete, the costs of remediation and other liabilities could be significant and may be as much as approximately $30 million.

The EPA is evaluating the risks associated with polycyclic aromatic hydrocarbons and naphthalene, chemical by-products of coal gas manufacturing. As a result of the EPA's evaluation, individual states may establish stricter standards for water quality and soil cleanup. This could require several PPL subsidiaries to take more extensive assessment and remedial actions at former coal gas manufacturing plants. PPL, PPL Electric, LKE, LG&E and KU cannot estimate a range of reasonably possible losses, if any, related to these matters.

From time to time, PPL's subsidiaries in the United States undertake remedial action in response to notices of violations, spills or other releases at various on-site and off-site locations, negotiate with the EPA and state and local agencies regarding actions necessary for compliance with applicable requirements, negotiate with property owners and other third parties alleging impacts from PPL's operations and undertake similar actions necessary to resolve environmental matters that arise in the course of normal operations. Based on analyses to date, resolution of these environmental matters is not expected to have a significant adverse impact on the operations of PPL Electric, LG&E and KU.

Future cleanup or remediation work at sites under review, or at sites not yet identified, may result in significant additional costs for PPL, PPL Electric, LKE, LG&E and KU. Insurance policies maintained by LKE, LG&E and KU may be applicable to certain of the costs or other obligations related to these matters but the amount of insurance coverage or reimbursement cannot be estimated or assured.

European Union Creosote Ban(PPL)

In 2011, the European Commission amended the European Union Biocides Directive to ban the use of creosote in contact with soil. Creosote is a wood preservative used to extend the life of wooden poles that support power lines. Although European Union member countries were required to pass implementing laws by 2012, the U.K. has not passed an implementing law and there are no legal penalties for failing to do so. The recent U.K. referendum in favor of the U.K.'s departure from the European Union further reduces the likelihood that the U.K. would pass implementing law. In the unlikely event that the U.K. were to ban the use of creosote, WPD's creosote-treated wood poles would need to be replaced with an acceptable alternative at the time of routine replacement. WPD has 1.4 million wood poles in its system. There are currently no alternative wood preservatives available that are acceptable to the industry and/or regulators.

Other

Guarantees and Other Assurances

(All Registrants)

In the normal course of business, the Registrants enter into agreements that provide financial performance assurance to third parties on behalf of certain subsidiaries. Such agreements include, for example, guarantees, stand-by letters of credit issued by financial institutions and surety bonds issued by insurance companies. These agreements are entered into primarily to support or enhance the creditworthiness attributed to a subsidiary on a stand-alone basis or to facilitate the commercial activities in which these subsidiaries engage.

(PPL)

PPL fully and unconditionally guarantees all of the debt securities of PPL Capital Funding.

(All Registrants)

The table below details guarantees provided as of June 30, 2016. "Exposure" represents the estimated maximum potential amount of future payments that could be required to be made under the guarantee. The probability of expected payment/performance under each of these guarantees is remote except for "WPD guarantee of pension and other obligations of unconsolidated entities" and "Indemnification of lease termination and other divestitures." The total recorded liability at June 30, 2016, was $22 million for PPL and $17 million for LKE. The total recorded liability at December 31, 2015, was $25 million for PPL and $18 million for LKE. For reporting purposes, on a consolidated basis, all guarantees of PPL Electric, LKE, LG&E and KU also apply to PPL, and all guarantees of LG&E and KU also apply to LKE.

	Exposure at June 30, 2016			Expiration Date
PPL
Indemnifications related to the WPD Midlands acquisition			(a)
WPD indemnifications for entities in liquidation and sales of assets	$	10	(b)	2019
WPD guarantee of pension and other obligations of unconsolidated entities	105		(c)
PPL Electric
Guarantee of inventory value	21		(d)	2018
LKE
Indemnification of lease termination and other divestitures	301		(e)	2021 - 2023
LG&E and KU
LG&E and KU guarantee of shortfall related to OVEC			(f)

(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. Additionally, 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 June 30, 2016, 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) 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.

(e) LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE's indemnitee filed a motion for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. In September 2015, a counterparty issued a demand letter to LKE's indemnitee. In February 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the demands. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting certain settlement discussions, however, 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; 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 the indemnification circumstances, but does not expect such outcomes to result in significant losses above the amounts recorded.

(f) 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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $125 million at June 30, 2016, consisting of LG&E's share of $87 million and KU's share of $38 million. 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 13 in PPL's, LKE's, LG&E's and KU's 2015 Form 10-K for additional information on the OVEC power purchase contract.

The Registrants provide other miscellaneous guarantees through contracts entered into in the normal course of business. These guarantees are primarily in the form of indemnification or warranties related to services or equipment and vary in duration. The amounts of these guarantees often are not explicitly stated, and the overall maximum amount of the obligation under such guarantees cannot be reasonably estimated. Historically, no significant payments have been made with respect to these types of guarantees and the probability of payment/performance under these guarantees is remote.

PPL, on behalf of itself and certain of its subsidiaries, maintains insurance that covers liability assumed under contract for bodily injury and property damage. The coverage provides maximum aggregate coverage of $225 million. This insurance may be applicable to obligations under certain of these contractual arrangements.

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Related Party Transactions

6 Months Ended

Jun. 30, 2016

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Related Party Transactions

Related Party Transactions

Support Costs(PPL Electric, LKE, LG&E and KU)

PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services. PPL EU Services provides the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provides certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS.

Intercompany Borrowings(LKE)

LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At June 30, 2016 and December 31, 2015, $176 million and $54 million were outstanding and were reflected in "Notes payable with affiliate" on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at June 30, 2016 and December 31, 2015 were 1.97% and 1.74%.

LKE has a $400 millionten-year note with a PPL affiliate with an interest rate of 3.5%. At June 30, 2016 and December 31, 2015, the note was reflected in "Long-term debt to affiliate" on the Balance Sheets.

Other(PPL Electric, LG&E and KU)

See Note 9 for discussions regarding intercompany allocations associated with defined benefits.

LG And E And KU Energy LLC [Member]

Related Party Transactions [Line Items]

Related Party Transactions

Related Party Transactions

Support Costs(PPL Electric, LKE, LG&E and KU)

PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services. PPL EU Services provides the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provides certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS.

Intercompany Borrowings(LKE)

LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At June 30, 2016 and December 31, 2015, $176 million and $54 million were outstanding and were reflected in "Notes payable with affiliate" on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at June 30, 2016 and December 31, 2015 were 1.97% and 1.74%.

LKE has a $400 millionten-year note with a PPL affiliate with an interest rate of 3.5%. At June 30, 2016 and December 31, 2015, the note was reflected in "Long-term debt to affiliate" on the Balance Sheets.

Other(PPL Electric, LG&E and KU)

See Note 9 for discussions regarding intercompany allocations associated with defined benefits.

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

Related Party Transactions

Support Costs(PPL Electric, LKE, LG&E and KU)

PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services. PPL EU Services provides the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provides certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS.

Intercompany Borrowings(LKE)

LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At June 30, 2016 and December 31, 2015, $176 million and $54 million were outstanding and were reflected in "Notes payable with affiliate" on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at June 30, 2016 and December 31, 2015 were 1.97% and 1.74%.

LKE has a $400 millionten-year note with a PPL affiliate with an interest rate of 3.5%. At June 30, 2016 and December 31, 2015, the note was reflected in "Long-term debt to affiliate" on the Balance Sheets.

Other(PPL Electric, LG&E and KU)

See Note 9 for discussions regarding intercompany allocations associated with defined benefits.

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Related Party Transactions

Related Party Transactions

Support Costs(PPL Electric, LKE, LG&E and KU)

PPL Services and LKS provide their respective PPL and LKE subsidiaries and each other with administrative, management and support services. PPL EU Services provides the majority of financial, supply chain, human resources and facilities management services primarily to PPL Electric. PPL Services provides certain corporate functions to PPL Electric. For all service companies, the costs of these services are charged to the respective recipients as direct support costs. General costs that cannot be directly attributed to a specific entity are allocated and charged to the respective recipients as indirect support costs. PPL Services and PPL EU Services use a three-factor methodology that includes the applicable recipients' invested capital, operation and maintenance expenses and number of employees to allocate indirect costs. LKS bases its indirect allocations on the subsidiaries' number of employees, total assets, revenues, number of customers and/or other statistical information. PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

In addition to the charges for services noted above, LKS makes payments on behalf of LG&E and KU for fuel purchases and other costs for products or services provided by third parties. LG&E and KU also provide services to each other and to LKS. Billings between LG&E and KU relate to labor and overheads associated with union and hourly employees performing work for the other company, charges related to jointly-owned generating units and other miscellaneous charges. Tax settlements between LKE and LG&E and LKE and KU are reimbursed through LKS.

Intercompany Borrowings(LKE)

LKE maintains a $225 million revolving line of credit with a PPL Energy Funding subsidiary whereby LKE can borrow funds on a short-term basis at market-based rates. At June 30, 2016 and December 31, 2015, $176 million and $54 million were outstanding and were reflected in "Notes payable with affiliate" on the Balance Sheets. The interest rate on borrowings is equal to one-month LIBOR plus a spread. The interest rates on the outstanding borrowing at June 30, 2016 and December 31, 2015 were 1.97% and 1.74%.

LKE has a $400 millionten-year note with a PPL affiliate with an interest rate of 3.5%. At June 30, 2016 and December 31, 2015, the note was reflected in "Long-term debt to affiliate" on the Balance Sheets.

Other(PPL Electric, LG&E and KU)

See Note 9 for discussions regarding intercompany allocations associated with defined benefits.

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Other Income (Expense) - net

6 Months Ended

Jun. 30, 2016

Other Nonoperating Income (Expense) [Abstract]

Other Income (Expense) - net

Other Income (Expense) - net

(PPL)

"Other Income (Expense) - net" for the three and six months ended June 30, 2016 and 2015 consisted primarily of gains (losses) on foreign currency contracts to economically hedge PPL's translation risk related to its GBP denominated earnings in the U.K. See Note 14 for additional information on these derivatives.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

(All Registrants)

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. Transfers between levels are recognized at end-of-reporting-period values. During the three and six months ended June 30, 2016 and 2015, there were no transfers between Level 1 and Level 2. See Note 1 in each Registrant's 2015 Form 10-K for information on the levels in the fair value hierarchy.

Recurring Fair Value Measurements

The assets and liabilities measured at fair value were:

	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	492	$	492	$	—	$	—	$	836	$	836	$	—	$	—
Restricted cash and cash equivalents (a)	33		33		—		—		33		33		—		—
Price risk management assets (b):
Foreign currency contracts	393		—		393		—		209		—		209		—
Cross-currency swaps	92		—		92		—		86		—		86		—
Total price risk management assets	485		—		485		—		295		—		295		—
Auction rate securities (c)	2		—		—		2		2		—		—		2
Total assets	$	1,012	$	525	$	485	$	2	$	1,166	$	869	$	295	$	2
Liabilities
Price risk management liabilities (b):
Interest rate swaps	$	56	$	—	$	56	$	—	$	71	$	—	$	71	$	—
Foreign currency contracts	—		—		—		—		1		—		1		—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	72	$	—	$	72	$	—
PPL Electric
Assets
Cash and cash equivalents	$	35	$	35	$	—	$	—	$	47	$	47	$	—	$	—
Restricted cash and cash equivalents (a)	2		2		—		—		2		2		—		—
Total assets	$	37	$	37	$	—	$	—	$	49	$	49	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	30	$	30	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	25	$	25	$	—	$	—	$	39	$	39	$	—	$	—

	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
LG&E
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	19	$	19	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	17	$	17	$	—	$	—	$	28	$	28	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—

(a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(b) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(c) Included in "Other noncurrent assets" on the Balance Sheets.

(d) Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset.

Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps (PPL, LKE, LG&E and KU)

To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3.

Nonrecurring Fair Value Measurements

See Note 8 for information regarding the estimated fair value of the Supply segment's net assets as of the June 1, 2015 spinoff date.

Financial Instruments Not Recorded at Fair Value(All Registrants)

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. The fair values were estimated using an income approach by discounting future cash flows at estimated current cost of funding rates, which incorporate the credit risk of the Registrants. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement.

	June 30, 2016				December 31, 2015
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	19,168	$	22,669	$	19,048	$	21,218
PPL Electric	2,830		3,359		2,828		3,088
LKE	5,089		5,773		5,088		5,384
LG&E	1,642		1,832		1,642		1,704
KU	2,327		2,666		2,326		2,467

(a) Amounts are net of debt issuance costs.

The carrying value of short-term debt (including notes between affiliates), when outstanding, approximates fair value due to the variable interest rates associated with the short-term debt and is classified as Level 2.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Risk Management Objectives

(All Registrants)

PPL has a risk management policy approved by the Board of Directors to manage market risk associated with commodities, interest rates on debt issuances and foreign exchange (including price, liquidity and volumetric risk) and credit risk (including non-performance risk and payment default risk). The Risk Management Committee, comprised of senior management and chaired by the Director - Risk Management, oversees the risk management function. Key risk control activities designed to ensure compliance with the risk policy and detailed programs include, but are not limited to, credit review and approval, validation of transactions, verification of risk and transaction limits, value-at-risk analyses (VaR, a statistical model that attempts to estimate the value of potential loss over a given holding period under normal market conditions at a given confidence level) and the coordination and reporting of the Enterprise Risk Management program.

Market Risk

Market risk includes the potential loss that may be incurred as a result of price changes associated with a particular financial or commodity instrument as well as market liquidity and volumetric risks. Forward contracts, futures contracts, options, swaps and structured transactions are utilized as part of risk management strategies to minimize unanticipated fluctuations in earnings caused by changes in commodity prices, interest rates and foreign currency exchange rates. Many of the contracts meet the definition of a derivative. All derivatives are recognized on the Balance Sheets at their fair value, unless NPNS is elected.

The following summarizes the market risks that affect PPL and its subsidiaries.

Interest rate risk

• PPL and its subsidiaries are exposed to interest rate risk associated with forecasted fixed-rate and existing floating-rate debt issuances. PPL and WPD hold over-the-counter cross currency swaps to limit exposure to market fluctuations on interest and principal payments from changes in foreign currency exchange rates and interest rates. LKE and LG&E utilize over-the-counter interest rate swaps to limit exposure to market fluctuations on floating-rate debt. PPL, LKE, LG&E and KU utilize forward starting interest rate swaps to hedge changes in benchmark interest rates, when appropriate, in connection with future debt issuances.

• PPL and its subsidiaries are exposed to interest rate risk associated with debt securities and derivatives held by defined benefit plans. This risk is significantly mitigated to the extent that the plans are sponsored at, or sponsored on behalf of, the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place.

Foreign currency risk

• PPL is exposed to foreign currency exchange risk primarily associated with its investments in and earnings of U.K. affiliates.

Commodity price risk

PPL is exposed to commodity price risk through its domestic subsidiaries as described below.

• PPL Electric is exposed to commodity price risk from its obligation as PLR; however, its PUC-approved cost recovery mechanism substantially eliminates its exposure to this risk. PPL Electric also mitigates its exposure to commodity price risk by entering into full-requirement supply agreements to serve its PLR customers. These supply agreements transfer the commodity price risk associated with the PLR obligation to the energy suppliers.

• LG&E's and KU's rates include certain mechanisms for fuel and fuel-related expenses. In addition, LG&E's rates include a mechanism for natural gas supply expenses. These mechanisms generally provide for timely recovery of market price fluctuations associated with these expenses.

Volumetric risk

PPL is exposed to volumetric risk through its subsidiaries as described below.

• WPD is exposed to volumetric risk which is significantly mitigated as a result of the method of regulation in the U.K. Under the RIIO - ED1 price control period, recovery of such exposure occurs on a two year lag. See Note 1 in PPL's 2015 Form 10-K for additional information on revenue recognition under RIIO - ED1.

• PPL Electric, LG&E and KU are exposed to volumetric risk on retail sales, mainly due to weather and other economic conditions for which there is limited mitigation between rate cases.

Equity securities price risk

• PPL and its subsidiaries are exposed to equity securities price risk associated with defined benefit plans. This risk is significantly mitigated at the regulated domestic utilities and for certain plans at WPD due to the recovery mechanisms in place.

• PPL is exposed to equity securities price risk from future stock sales and/or purchases.

Credit Risk

Credit risk is the potential loss that may be incurred due to a counterparty's non-performance.

PPL is exposed to credit risk from "in-the-money" interest rate and foreign currency derivatives with financial institutions, as well as additional credit risk through certain of its subsidiaries, as discussed below.

In the event a supplier of LKE (through its subsidiaries LG&E and KU) or PPL Electric defaults on its obligation, those entities would be required to seek replacement power or replacement fuel in the market. In general, subject to regulatory review or other processes, appropriate incremental costs incurred by these entities would be recoverable from customers through applicable rate mechanisms, thus mitigating the financial risk for these entities.

PPL and its subsidiaries have credit policies in place to manage credit risk, including the use of an established credit approval process, daily monitoring of counterparty positions and the use of master netting agreements or provisions. These agreements generally include credit mitigation provisions, such as margin, prepayment or collateral requirements. PPL and its subsidiaries may request additional credit assurance, in certain circumstances, in the event that the counterparties' credit ratings fall below investment grade, their tangible net worth falls below specified percentages or their exposures exceed an established credit limit.

Master Netting Arrangements

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

PPL had an obligation to return $76 million of cash collateral under master netting arrangements at June 30, 2016 and no obligation to return cash collateral under master netting arrangements at December 31, 2015.

LKE, LG&E and KU had no obligation to return cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

PPL, LKE and LG&E posted $9 million of cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

KU did not post any cash collateral under master netting arrangements at June 30, 2016 and December 31, 2015.

See "Offsetting Derivative Instruments" below for a summary of derivative positions presented in the balance sheets where a right of setoff exists under these arrangements.

Interest Rate Risk

(All Registrants)

PPL and its subsidiaries issue debt to finance their operations, which exposes them to interest rate risk. Various financial derivative instruments are utilized to adjust the mix of fixed and floating interest rates in their debt portfolio, adjust the duration of the debt portfolio and lock in benchmark interest rates in anticipation of future financing, when appropriate. Risk limits under PPL's risk management program are designed to balance risk exposure to volatility in interest expense and changes in the fair value of the debt portfolio due to changes in benchmark interest rates. In addition, the interest rate risk of certain subsidiaries is potentially mitigated as a result of the existing regulatory framework or the timing of rate cases.

Cash Flow Hedges

(PPL)

Interest rate risks include exposure to adverse interest rate movements for outstanding variable rate debt and for future anticipated financings. Financial interest rate swap contracts that qualify as cash flow hedges may be entered into to hedge floating interest rate risk associated with both existing and anticipated debt issuances. PPL held no such contracts at June 30, 2016.

At June 30, 2016, PPL held an aggregate notional value in cross-currency interest rate swap contracts of $802 million that range in maturity from 2017 through 2028 to hedge the interest payments and principal of WPD's U.S. dollar-denominated senior notes. In May 2016, $460 million of WPD's U.S. dollar-denominated senior notes were repaid upon maturity and $460 million notional value of cross-currency interest rate swap contracts matured. PPL recorded a $46 million gain upon settlement of the cross-currency interest rate swap contracts, which largely offset a loss recorded on the revaluation of U.S. dollar-denominated senior notes.

For the three and six months ended June 30, 2016, PPL had an insignificant amount of ineffectiveness associated with interest rate derivatives.

Cash flow hedges are discontinued if it is no longer probable that the original forecasted transaction will occur by the end of the originally specified time period and any amounts previously recorded in AOCI are reclassified into earnings once it is determined that the hedged transaction is not probable of occurring.

PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges for the three and six months ended June 30, 2016. As a result of the June 1, 2015 spinoff of PPL Energy Supply, all PPL cash flow hedges associated with PPL Energy Supply were ineffective and discontinued and therefore, reclassified into earnings and reflected in discontinued operations for the three and six months ended June 30, 2015. See Note 8 for additional information.

At June 30, 2016, the accumulated net unrecognized after-tax gains (losses) on qualifying derivatives that are expected to be reclassified into earnings during the next 12 months were insignificant. Amounts are reclassified as the hedged interest expense is recorded.

Economic Activity(PPL, LKE and LG&E)

LG&E enters into interest rate swap contracts that economically hedge interest payments on variable rate debt. Because realized gains and losses from the swaps, including a terminated swap contract, are recoverable through regulated rates, any subsequent changes in fair value of these derivatives are included in regulatory assets or liabilities until they are realized as interest expense. Realized gains and losses are recognized in "Interest Expense" on the Statements of Income at the time the underlying hedged interest expense is recorded. At June 30, 2016, LG&E held contracts with a notional amount of $179 million that range in maturity through 2033.

Foreign Currency Risk

(PPL)

PPL is exposed to foreign currency risk, primarily through investments in and earnings of U.K. affiliates. PPL has adopted a foreign currency risk management program designed to hedge certain foreign currency exposures, including firm commitments, recognized assets or liabilities, anticipated transactions and net investments. In addition, PPL enters into financial instruments to protect against foreign currency translation risk of expected GBP earnings.

Net Investment Hedges

PPL enters into foreign currency contracts on behalf of a subsidiary to protect the value of a portion of its net investment in WPD. There were no such contracts outstanding at June 30, 2016.

At June 30, 2016, PPL had $22 million of accumulated net investment hedge after tax gains (losses) that were included in the foreign currency translation adjustment component of AOCI, compared to $19 million at December 31, 2015.

Economic Activity

PPL enters into foreign currency contracts on behalf of a subsidiary to economically hedge GBP-denominated anticipated earnings. At June 30, 2016, the total exposure hedged by PPL was approximately £1.7 billion (approximately $2.7 billion based on contracted rates). These contracts had termination dates ranging from July 2016 through November 2018.

At June 30, 2016, foreign currency hedges related to 2017 and 2018 anticipated earnings were valued at $296 million and were included in current and noncurrent "Price risk management assets" on the Balance Sheet. The notional amount of these hedges was approximately £1.3 billion (approximately $2.0 billion based on contracted rates) with termination dates from January 2017 through November 2018. In the third quarter of 2016, PPL settled the 2017 and 2018 hedges, resulting in approximately $310 million of cash received, and entered into new hedges at current market rates. The settlement will not have a material effect on earnings as the hedge values were previously marked to fair value and recognized in "Other Income (Expense) - net" on the Statement of Income each period.

Accounting and Reporting

(All Registrants)

All derivative instruments are recorded at fair value on the Balance Sheet as an asset or liability unless NPNS is elected. NPNS contracts for PPL and PPL Electric include certain full-requirement purchase contracts and other physical purchase contracts. Changes in the fair value of derivatives not designated as NPNS are recognized in earnings unless specific hedge accounting criteria are met and designated as such, except for the changes in fair values of LG&E's and KU's interest rate swaps that are recognized as regulatory assets or regulatory liabilities. See Note 6 for amounts recorded in regulatory assets and regulatory liabilities at June 30, 2016 and December 31, 2015.

See Notes 1 and 17 in each Registrant's 2015 Form 10-K for additional information on accounting policies related to derivative instruments.

(PPL)

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets, excluding derivative instruments of discontinued operations.

	June 30, 2016								December 31, 2015
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	$	—	$	—	$	—	$	6	$	—	$	24	$	—	$	5
Cross-currency swaps (b)	3		—		—		—		35		—		—		—
Foreign currency contracts	—		—		197		—		10		—		94		1
Total current	3		—		197		6		45		24		94		6
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	—		—		—		50		—		—		—		42
Cross-currency swaps (b)	89		—		—		—		51		—		—		—
Foreign currency contracts	—		—		196		—		—		—		105		—
Total noncurrent	89		—		196		50		51		—		105		42
Total derivatives	$	92	$	—	$	393	$	56	$	96	$	24	$	199	$	48

(a) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b) Excludes accrued interest, if applicable.

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2016.

								Three Months					Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	(3	)	$	(21	)	Interest expense	$	(2	)	$	—	$	(3	)	$	—
Cross-currency swaps	(104		)	9			Interest expense	(1		)	—		—			—
							Other income (expense) - net	(103		)	—		(6		)	—
Total	$	(107	)	$	(12	)		$	(106	)	$	—	$	(9	)	$	—
Net Investment Hedges:
Foreign currency contracts	$	1		$	4

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	171		$	231
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	169		$	227
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2015.

								Three Months						Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)			Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	17		$	(2	)	Interest expense	$	(3	)	$	—		$	(7	)	$	—
							Discontinued operations	—			(77		)	—			(77		)
Cross-currency swaps	15			36			Interest expense	1			—			2			—
							Other income (expense) - net	15			—			32			—
Commodity contracts	—			—			Discontinued operations	6			7			13			7
Total	$	32		$	34			$	19		$	(70	)	$	40		$	(70	)
Net Investment Hedges:
Foreign currency contracts	$	(17	)	$	(1	)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	(102	)	$	(14	)
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	(104	)	$	(18	)
Derivatives Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76		$	20
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

(LKE)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76	$	20

(LG&E)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

(KU)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2016				December 31, 2015
	Assets		Liabilities			Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	6		$	—	$	5
Total current	—		6			—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		50			—		42
Total noncurrent	—		50			—		42
Total derivatives	$	—	$	56		$	—	$	47

(a) Represents the location on the Balance Sheets.

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2016.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2015.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

(PPL, LKE, LG&E and KU)

Offsetting Derivative Instruments

PPL, LKE, LG&E and KU or certain of their subsidiaries have master netting arrangements in place and also enter into agreements pursuant to which they purchase or sell certain energy and other products. Under the agreements, upon termination of the agreement as a result of a default or other termination event, the non-defaulting party typically would have a right to set off amounts owed under the agreement against any other obligations arising between the two parties (whether under the agreement or not), whether matured or contingent and irrespective of the currency, place of payment or place of booking of the obligation.

PPL, LKE, LG&E and KU have elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivatives agreements. The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

Certain derivative contracts contain credit risk-related contingent features which, when in a net liability position, would permit the counterparties to require the transfer of additional collateral upon a decrease in the credit ratings of PPL, LKE, LG&E and KU or certain of their subsidiaries. Most of these features would require the transfer of additional collateral or permit the counterparty to terminate the contract if the applicable credit rating were to fall below investment grade. Some of these features also would allow the counterparty to require additional collateral upon each downgrade in credit rating at levels that remain above investment grade. In either case, if the applicable credit rating were to fall below investment grade, and assuming no assignment to an investment grade affiliate were allowed, most of these credit contingent features require either immediate payment of the net liability as a termination payment or immediate and ongoing full collateralization on derivative instruments in net liability positions.

Additionally, certain derivative contracts contain credit risk-related contingent features that require adequate assurance of performance be provided if the other party has reasonable concerns regarding the performance of PPL's, LKE's, LG&E's, and KU's obligations under the contracts. A counterparty demanding adequate assurance could require a transfer of additional collateral or other security, including letters of credit, cash and guarantees from a creditworthy entity. This would typically involve negotiations among the parties. However, amounts disclosed below represent assumed immediate payment or immediate and ongoing full collateralization for derivative instruments in net liability positions with "adequate assurance" features.

(PPL, LKE and LG&E)

At June 30, 2016, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	31	$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments	8		8		8
Aggregate fair value of additional collateral requirements in the event of  a credit downgrade below investment grade (a)	23		23		23

(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet.

XML

Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

(PPL)

The change in the carrying amount of goodwill for the six months ended June 30, 2016 was due to the effect of foreign currency exchange rates on the U.K. Regulated segment.

The change in the other intangible assets for the six months ended June 30, 2016 was primarily due to an increase in the gross carrying amount of indefinite lived intangibles at WPD attributable to new easements of $47 million.

XML

Asset Retirement Obligations

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligations [Line Items]

Asset Retirement Obligations

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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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

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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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

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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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

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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LKE's, LG&E's and KU's ARO liabilities are primarily related to CCR closure costs. See Note 10 for information on the final CCR rule and Note 6 for information on the rate recovery applications with the KPSC. 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.

XML

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

(PPL and LKE)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Foreign currency translation adjustments			Unrealized gains (losses)									Defined benefit plans
				Available- for-sale securities			Qualifying derivatives			Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
PPL
March 31, 2016	$	(984	)	$	—		$	(5	)	$	—		$	(6	)	$	(2,164	)	$	(3,159	)
Amounts arising during the period	268			—			(85		)	—			—			2			185
Reclassifications from AOCI	—			—			85			(1		)	1			32			117
Net OCI during the period	268			—			—			(1		)	1			34			302
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
December 31, 2015	$	(520	)	$	—		$	(7	)	$	—		$	(6	)	$	(2,195	)	$	(2,728	)
Amounts arising during the period	(196		)	—			(5		)	—			—			2			(199		)
Reclassifications from AOCI	—			—			7			(1		)	1			63			70
Net OCI during the period	(196		)	—			2			(1		)	1			65			(129		)
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
March 31, 2015	$	(352	)	$	206		$	9		$	—		$	3		$	(2,177	)	$	(2,311	)
Amounts arising during the period	(83		)	2			21			—			(6		)	53			(13		)
Reclassifications from AOCI	—			(1		)	27			—			—			38			64
Net OCI during the period	(83		)	1			48			—			(6		)	91			51
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
December 31, 2014	$	(286	)	$	202		$	20		$	1		$	3		$	(2,214	)	$	(2,274	)
Amounts arising during the period	(149		)	7			27			—			(6		)	52			(69		)
Reclassifications from AOCI	—			(2		)	10			(1		)	—			76			83
Net OCI during the period	(149		)	5			37			(1		)	(6		)	128			14
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
LKE
March 31, 2016										$	—		$	(10	)	$	(35	)	$	(45	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			1			1
Net OCI during the period										(1		)	1			2			2
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)
December 31, 2015										$	—		$	(10	)	$	(36	)	$	(46	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			2			2
Net OCI during the period										(1		)	1			3			3
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)

	Foreign currency translation adjustments	Unrealized gains (losses)					Defined benefit plans
		Available- for-sale securities	Qualifying derivatives	Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
March 31, 2015				$	(1	)	$	(8	)	$	(36	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				—			1			—			1
Net OCI during the period				—			1			(8		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)
December 31, 2014				$	—		$	(8	)	$	(37	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				(1		)	1			1			1
Net OCI during the period				(1		)	1			(7		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)

(PPL)

The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30. The defined benefit plan components of AOCI are not reflected in their entirety in the Statement of Income during the periods; rather, they are included in the computation of net periodic defined benefit costs (credits) and subject to capitalization. See Note 9 for additional information.

	Three Months						Six Months						Affected Line Item on the
Details about AOCI	2016			2015			2016			2015			Statements of Income
Available-for-sale securities	$	—		$	2		$	—		$	4		Other Income (Expense) - net
Total Pre-tax	—			2			—			4
Income Taxes	—			(1		)	—			(2		)
Total After-tax	—			1			—			2
Qualifying derivatives
Interest rate swaps	(2		)	(3		)	(3		)	(7		)	Interest Expense
	—			(77		)	—			(77		)	Discontinued operations
Cross-currency swaps	(103		)	15			(6		)	32			Other Income (Expense) - net
	(1		)	1			—			2			Interest Expense
Commodity contracts	—			13			—			20			Discontinued operations
Total Pre-tax	(106		)	(51		)	(9		)	(30		)
Income Taxes	21			24			2			20
Total After-tax	(85		)	(27		)	(7		)	(10		)
Equity investees' AOCI	1			—			1			2			Other Income (Expense) - net
Total Pre-tax	1			—			1			2
Income Taxes	—			—			—			(1		)
Total After-tax	1			—			1			1
Defined benefit plans
Prior service costs	(1		)	—			(1		)	—
Net actuarial loss	(40		)	(50		)	(80		)	(101		)
Total Pre-tax	(41		)	(50		)	(81		)	(101		)
Income Taxes	8			12			17			25
Total After-tax	(33		)	(38		)	(64		)	(76		)
Total reclassifications during the period	$	(117	)	$	(64	)	$	(70	)	$	(83	)

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New Accounting Guidance Pending Adoption

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

New Accounting Guidance Pending Adoption

(All Registrants)

Accounting for Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued accounting guidance that establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

For public business entities, this guidance can be applied using either a full retrospective or modified retrospective transition method, beginning in annual reporting periods after December 15, 2017 and interim periods within those years. Public business entities may early adopt this guidance in annual reporting periods beginning after December 15, 2016. The Registrants expect to adopt this guidance effective January 1, 2018.

The Registrants continue to assess the impact of adopting this guidance, as well as the transition method they will use, and are monitoring the development of industry specific application guidance which could impact those assessments.

Accounting for Leases

In February 2016, the FASB issued accounting guidance for leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained a dual model for lessees, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.

Lessor accounting under the new guidance is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Similar to current practice, lessors will classify leases as operating, direct financing, or sales-type.

The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented.

The Registrants are currently assessing the impact of adopting this guidance.

Accounting for Financial Instrument Credit Losses

In June 2016, the FASB issued accounting guidance that requires the use of a current expected credit loss (CECL) model for the measurement of credit losses on financial instruments within the scope of this guidance, which includes accounts receivable. The CECL model requires an entity to measure credit losses using historical information, current information and reasonable and supportable forecasts of future events, rather than the incurred loss impairment model required under current GAAP.

For public business entities, this guidance will be applied using a modified retrospective approach and is effective for fiscal years beginning after December 15, 2019, and interim periods within those years. All entities may early adopt this guidance beginning after December 15, 2018, including interim periods within those years.

The Registrants are currently assessing the impact of adopting this guidance and the period that they will adopt this guidance.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Receivables, Policy

Accounts Receivable(PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy.

New Accounting Pronouncements, Policy

New Accounting Guidance Adopted(All Registrants)

Accounting for Stock-Based Compensation

Effective January 1, 2016, the Registrants adopted accounting guidance to simplify the accounting for share-based payment transactions. The guidance requires excess tax benefits and tax deficiencies to be recorded as income tax benefit or expense on the statement of income, eliminates the requirement that excess tax benefits be realized before companies can recognize them and changes the threshold for statutory income tax withholding requirements to qualify for equity classification to the maximum statutory tax rates in the applicable jurisdictions. This guidance also changes the classification of excess tax benefits to an operating activity and employee taxes paid when shares are withheld to satisfy the employer's statutory income tax withholding obligation to a financing activity on the statement of cash flows and allows entities to make a policy election to either estimate forfeitures or recognize them when they occur. The adoption of this guidance had the following impacts:

• Using the required prospective method of transition, for the three and six months ended June 30, 2016, PPL recorded tax benefits of $3 million and $11 million ($0.02 per share) and PPL Electric recorded tax benefits of $2 million and $7 million related to excess tax benefits for awards that were exercised and vested for the periods ending June 30, 2016. These amounts were recorded to Income taxes on the Statements of Income and Deferred income taxes on the Balance Sheets. The impact on LKE was not significant.

• PPL elected to use the prospective method of transition for classifying excess tax benefits as an Operating activity on the Statement of Cash Flows. The amounts classified as Financing activities in the prior periods were not significant.

• Upon adoption, using the required modified retrospective method of transition, PPL recorded a cumulative effect adjustment of $7 million to increase Earnings reinvested and decrease Deferred income taxes on the Balance Sheet related to prior period unrecognized excess tax benefits.

• PPL has historically presented employee taxes paid for net settled awards as a Financing activity on the Statement of Cash Flows. Therefore, there is no transition impact for this requirement.

• PPL has elected to recognize forfeitures when they occur. Due to past experience of insignificant forfeitures, there is no transition impact of this policy election.

Fair Value Transfer, Policy

Transfers between levels are recognized at end-of-reporting-period values.

Derivatives, Offsetting Fair Value Amounts, Policy

Net derivative positions on the balance sheets are not offset against the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) under master netting arrangements.

Foreign Currency Translation and Transactions [Abstract]

Foreign Currency Transactions and Translations, Policy

Foreign Currency Translation and Transactions (PPL)

WPD's functional currency is the GBP, which is the local currency in the U.K. As such, assets and liabilities are translated to U.S. dollars at the exchange rates on the date of consolidation and related revenues and expenses are generally translated at average exchange rates prevailing during the period included in PPL's results of operations. Adjustments resulting from foreign currency translation are recorded in AOCI.

PPL Electric Utilities Corp [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Receivables, Policy

Accounts Receivable(PPL and PPL Electric)

In accordance with a PUC-approved purchase of accounts receivable program, PPL Electric purchases certain accounts receivable from alternative electricity suppliers at a discount, which reflects a provision for uncollectible accounts. The alternative electricity suppliers have no continuing involvement or interest in the purchased accounts receivable. The purchased accounts receivable are initially recorded at fair value using a market approach based on the purchase price paid and are classified as Level 2 in the fair value hierarchy.

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Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment and Related Information

Financial data for the segments and reconciliation to PPL's consolidated results for the periods ended June 30 are:

	Three Months						Six Months
	2016			2015			2016			2015
Income Statement Data
Revenues from external customers
U.K. Regulated	$	563		$	587		$	1,158		$	1,284
Kentucky Regulated	721			714			1,547			1,613
Pennsylvania Regulated	495			476			1,080			1,106
Corporate and Other	6			4			11			8
Total	$	1,785		$	1,781		$	3,796		$	4,011
Net Income (loss)
U.K. Regulated (a)	$	345		$	190		$	634		$	565
Kentucky Regulated	76			47			188			156
Pennsylvania Regulated	78			49			172			136
Corporate and Other (b)	(16		)	(36		)	(30		)	(55		)
Discontinued Operations (c)	—			(1,007		)	—			(912		)
Total	$	483		$	(757	)	$	964		$	(110	)

	June 30, 2016		December 31, 2015
Balance Sheet Data
Assets
U.K. Regulated (d)	$	16,371	$	16,669
Kentucky Regulated	13,886		13,756
Pennsylvania Regulated	8,825		8,511
Corporate and Other (e)	446		365
Total assets	$	39,528	$	39,301

(a) Includes unrealized gains and losses from hedging foreign-currency related economic activity. See Note 14 for additional information.

(b) 2015 includes transition costs to prepare the Talen Energy organization for the June 1, 2015 spinoff and reconfigure the remaining PPL Services functions. See Note 8 for additional information.

(c) See Note 8 for additional information.

(d) Includes $12.1 billion and $12.2 billion of net PP&E as of June 30, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP.

(e) Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Basic and Diluted EPS Computations

Reconciliations of the amounts of income and shares of PPL common stock (in thousands) for the periods ended June 30 used in the EPS calculation are:

	Three Months					Six Months
	2016		2015			2016		2015
Income (Numerator)
Income from continuing operations after income taxes	$	483	$	250		$	964	$	802
Less amounts allocated to participating securities	1		1			3		2
Income from continuing operations after income taxes available to PPL common shareowners - Basic and Diluted	$	482	$	249		$	961	$	800
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted	$	—	$	(1,007	)	$	—	$	(912	)
Net income (loss)	$	483	$	(757	)	$	964	$	(110	)
Less amounts allocated to participating securities	1		1			3		2
Net income (loss) available to PPL common shareowners - Basic and Diluted	$	482	$	(758	)	$	961	$	(112	)
Shares of Common Stock (Denominator)
Weighted-average shares - Basic EPS	677,145		668,415			676,293		667,698
Add incremental non-participating securities:
Share-based payment awards	3,584		2,871			3,480		2,315
Weighted-average shares - Diluted EPS	680,729		671,286			679,773		670,013
Basic EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.42	$	1.20
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.37		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.42	$	(0.17	)
Diluted EPS
Available to PPL common shareowners:
Income from continuing operations after income taxes	$	0.71	$	0.37		$	1.41	$	1.19
Income (loss) from discontinued operations (net of income taxes)	—		(1.50		)	—		(1.36		)
Net Income (loss)	$	0.71	$	(1.13	)	$	1.41	$	(0.17	)

Common Stock Issuances

For the periods ended June 30, PPL issued common stock related to stock-based compensation plans and the DRIP as follows (in thousands):

	Three Months		Six Months
	2016	2015	2016	2015
Stock-based compensation plans (a)	795	992	2,920	2,437
DRIP	370	424	772	843

(a) Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

Antidilutive Securities Excluded From Diluted EPS

For the periods ended June 30, the following shares (in thousands) were excluded from the computations of diluted EPS because the effect would have been antidilutive.

	Three Months		Six Months
	2016	2015	2016	2015
Stock options	696	348	696	1,085
Performance units	78	—	39	73

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2016

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income taxes for the periods ended June 30 are as follows.

(PPL)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$	236		$	112		$	467		$	382
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	9			9			22			29
Valuation allowance adjustments	3			5			9			8
Impact of lower U.K. income tax rates	(45		)	(36		)	(99		)	(98		)
Federal and state tax reserve adjustments (a)	—			(12		)	—			(12		)
Interest benefit on U.K. financing entities	(4		)	(3		)	(9		)	(11		)
Stock-based compensation (b)	(3		)	—			(11		)	—
Other	(4		)	(4		)	(8		)	(10		)
Total increase (decrease)	(44		)	(41		)	(96		)	(94		)
Total income taxes	$	192		$	71		$	371		$	288

(a) During the three and six months ended June 30, 2015, PPL recorded a tax benefit to adjust the settled refund amount approved by Joint Committee of Taxation for the open audit years 1998 - 2011.

(b) During the three and six months ended June 30, 2016, PPL recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

PPL Electric Utilities Corp [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income taxes for the periods ended June 30 are as follows.

(PPL Electric)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	44		$	30		$	97		$	81
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	8			4			18			14
Federal and state tax reserve adjustments	—			2			—			2
Depreciation not normalized	(2		)	(1		)	(3		)	(2		)
Stock-based compensation (a)	(2		)	—			(7		)	—
Other	—			1			(1		)	—
Total increase (decrease)	4			6			7			14
Total income taxes	$	48		$	36		$	104		$	95

(a) During the three and six months ended June 30, 2016, PPL Electric recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

LG And E And KU Energy LLC [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income taxes for the periods ended June 30 are as follows.

(LKE)
	Three Months						Six Months
	2016			2015			2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	47		$	37		$	114		$	104
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	5			4			12			11
Valuation allowance adjustments (a)	—			5			—			8
Stock-based compensation	—			—			(1		)	—
Other	(1		)	(1		)	(2		)	(2		)
Total increase (decrease)	4			8			9			17
Total income taxes	$	51		$	45		$	123		$	121

(a) Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized.

Louisville Gas And Electric Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income taxes for the periods ended June 30 are as follows.

(LG&E)
	Three Months				Six Months
	2016		2015		2016			2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	22	$	20	$	54		$	50
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6			5
Other	—		—		(1		)	—
Total increase (decrease)	2		2		5			5
Total income taxes	$	24	$	22	$	59		$	55

Kentucky Utilities Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income taxes for the periods ended June 30 are as follows.

(KU)
	Three Months				Six Months
	2016		2015		2016		2015
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	31	$	22	$	73	$	66
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		2		7		7
Other	—		—		—		(2		)
Total increase (decrease)	3		2		7		5
Total income taxes	$	34	$	24	$	80	$	71

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Utility Rate Regulation (Tables)

6 Months Ended

Jun. 30, 2016

Utility Rate Regulation [Line Items]

Regulatory Assets

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	—	$	—
Generation formula rate	13		7		—		—
Transmission service charge	10		10		10		10
Other	5		7		2		3
Total current regulatory assets (a)	$	34	$	48	$	12	$	13

	PPL				PPL Electric
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	800	$	809	$	460	$	469
Taxes recoverable through future rates	331		326		331		326
Storm costs	79		93		23		30
Unamortized loss on debt	66		68		41		42
Interest rate swaps	148		141		—		—
Accumulated cost of removal of utility plant	139		137		139		137
AROs	187		143		—		—
Other	12		16		1		2
Total noncurrent regulatory assets	$	1,762	$	1,733	$	995	$	1,006

Current Regulatory Liabilities:
Generation supply charge	$	26	$	41	$	26	$	41
Demand side management	10		8		—		—
Gas supply clause	—		6		—		—
Universal service rider	6		5		6		5
Transmission formula rate	27		48		27		48
Fuel adjustment clause	10		14		—		—
Storm damage expense	14		16		14		16
Other	6		7		1		3
Total current regulatory liabilities	$	99	$	145	$	74	$	113
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	—	$	—
Coal contracts (b)	8		17		—		—
Power purchase agreement - OVEC (b)	79		83		—		—
Net deferred tax assets	24		23		—		—
Act 129 compliance rider	19		22		19		22
Defined benefit plans	27		24		—		—
Interest rate swaps	80		82		—		—
Other	3		3		—		—
Total noncurrent regulatory liabilities	$	935	$	945	$	19	$	22

	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Current Regulatory Assets:
Environmental cost recovery	$	6	$	24	$	6	$	13	$	—	$	11
Generation formula rate	13		7		—		—		13		7
Other	3		4		2		3		1		1
Total current regulatory assets	$	22	$	35	$	8	$	16	$	14	$	19

	LKE				LG&E				KU
	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Noncurrent Regulatory Assets:
Defined benefit plans	$	340	$	340	$	215	$	215	$	125	$	125
Storm costs	56		63		31		35		25		28
Unamortized loss on debt	25		26		16		17		9		9
Interest rate swaps	148		141		106		98		42		43
AROs	187		143		70		57		117		86
Plant retirement costs	5		6		—		—		5		6
Other	6		8		2		2		4		6
Total noncurrent regulatory assets	$	767	$	727	$	440	$	424	$	327	$	303

Current Regulatory Liabilities:
Demand side management	$	10	$	8	$	5	$	4	$	5	$	4
Gas supply clause	—		6		—		6		—		—
Fuel adjustment clause	10		14		2		2		8		12
Other	5		4		1		1		4		3
Total current regulatory liabilities	$	25	$	32	$	8	$	13	$	17	$	19
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	695	$	691	$	304	$	301	$	391	$	390
Coal contracts (b)	8		17		3		7		5		10
Power purchase agreement - OVEC (b)	79		83		54		57		25		26
Net deferred tax assets	24		23		23		23		1		—
Defined benefit plans	27		24		—		—		27		24
Interest rate swaps	80		82		40		41		40		41
Other	3		3		3		2		—		1
Total noncurrent regulatory liabilities	$	916	$	923	$	427	$	431	$	489	$	492

(a) These amounts are included in "Other current assets" on the Balance Sheets.

(b) These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL.

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Financing Activities (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

The following credit facilities were in place at:

	June 30, 2016									December 31, 2015
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
U.K.
WPD plc
Syndicated Credit Facility	Jan 2021	£	210	£	138	£	—	£	72	£	133	£	—
WPD (South West)
Syndicated Credit Facility	July 2020	245		100		—		145		—		—
WPD (East Midlands)
Syndicated Credit Facility	July 2020	300		31		—		269		—		—
WPD (West Midlands)
Syndicated Credit Facility	July 2020	300		—		—		300		—		—
Uncommitted Credit Facilities		40		—		4		36		—		4
Total U.K. Credit Facilities (a)		£	1,095	£	269	£	4	£	822	£	133	£	4
U.S.
PPL Capital Funding
Syndicated Credit Facility	Jan 2021	$	700	$	—	$	320	$	380	$	—	$	151
Syndicated Credit Facility	Nov 2018	300		—		—		300		—		300
Bilateral Credit Facility	Mar 2017	150		—		17		133		—		20
Total PPL Capital Funding Credit Facilities		$	1,150	$	—	$	337	$	813	$	—	$	471
PPL Electric
Syndicated Credit Facility	Jan 2021	$	400	$	—	$	7	$	393	$	—	$	1
LKE
Syndicated Credit Facility (b)	Oct 2018	$	75	$	—	$	—	$	75	$	75	$	—
LG&E
Syndicated Credit Facility	Dec 2020	$	500	$	—	$	110	$	390	$	—	$	142
KU
Syndicated Credit Facility	Dec 2020	$	400	$	—	$	29	$	371	$	—	$	48
Letter of Credit Facility	Oct 2017	198		—		198		—		—		198
Total KU Credit Facilities		$	598	$	—	$	227	$	371	$	—	$	246

(a) WPD plc's amounts borrowed at June 30, 2016 and December 31, 2015 were USD-denominated borrowings of $200 million for both periods, which bore interest at 1.27% and 1.83%. The unused capacity reflects the amount borrowed in GBP of £138 million as of the date borrowed. WPD (South West) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $146 million and bore interest at 0.92%. WPD (East Midlands) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $45 million and bore interest at 0.92%. At June 30, 2016, the unused capacity under the U.K. credit facilities was approximately $1.2 billion.

(b) LKE's interest rate on outstanding borrowings at December 31, 2015 was 1.68%.

Schedule of Short-term Debt

The following commercial paper programs were in place at:

	June 30, 2016							December 31, 2015
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.84%	$	1,000	$	320	$	680	0.78%	$	451
PPL Electric	0.75%	400		6		394			—
LG&E	0.70%	350		110		240		0.71%	142
KU	0.70%	350		29		321		0.72%	48
Total		$	2,100	$	465	$	1,635		$	641

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Acquisitions, Development and Divestitures (Tables)

6 Months Ended

Jun. 30, 2016

Acquisitions Development And Divestitures [Abstract]

Spinoff Transaction, Fair Value Analysis

The following table summarizes PPL's fair value analysis:

Approach	Weighting	Weighted Fair Value (in billions)
Talen Energy Market Value	50%	$	1.4
Income/Discounted Cash Flow	30%	1.1
Alternative Market (Comparable Company)	20%	0.7
Estimated Fair Value		$	3.2

Disposal Groups, Including Discontinued Operations

Following are the components of Discontinued Operations in the Statement of Income for the periods ended June 30, 2015:

	Three Months			Six Months
Operating revenues	$	483		$	1,427
Operating expenses	561			1,328
Other Income (Expense) - net	(29		)	(22		)
Interest expense (a)	112			150
Income (loss) before income taxes	(219		)	(73		)
Income tax expense (benefit)	(91		)	(40		)
Loss on spinoff	(879		)	(879		)
Income (Loss) from Discontinued Operations (net of income taxes)	$	(1,007	)	$	(912	)

(a) Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized.

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Defined Benefits (Tables)

6 Months Ended

Jun. 30, 2016

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended June 30:

	Pension Benefits
	Three Months												Six Months
	U.S.						U.K.						U.S.						U.K.
	2016			2015			2016 (b)			2015			2016			2015			2016 (b)			2015
PPL
Service cost	$	16		$	26		$	18		$	19		$	33		$	56		$	36		$	39
Interest cost	44			52			62			77			87			110			124			156
Expected return on plan assets	(58		)	(69		)	(132		)	(129		)	(114		)	(145		)	(265		)	(260		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	10			22			36			40			25			47			73			79
Net periodic defined benefit costs (credits) (a)	$	15		$	33		$	(16	)	$	7		$	35		$	72		$	(32	)	$	14
LKE
Service cost	$	6		$	6								$	12		$	13
Interest cost	18			17									35			34
Expected return on plan assets	(24		)	(22		)							(45		)	(44		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	5			9									10			17
Net periodic defined benefit costs	$	8		$	12								$	16		$	24
LG&E
Service cost	$	1		$	1								$	1		$	1
Interest cost	4			4									7			7
Expected return on plan assets	(5		)	(5		)							(10		)	(10		)
Amortization of:
Prior service cost	1			—									2			1
Actuarial loss	1			3									3			6
Net periodic defined benefit costs	$	2		$	3								$	3		$	5

(a) For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

(b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

	Other Postretirement Benefits
	Three Months						Six Months
	2016			2015			2016			2015
PPL
Service cost	$	2		$	3		$	4		$	7
Interest cost	7			7			13			14
Expected return on plan assets	(6		)	(7		)	(11		)	(14		)
Net periodic defined benefit costs	$	3		$	3		$	6		$	7
LKE
Service cost	$	1		$	2		$	2		$	3
Interest cost	3			3			5			5
Expected return on plan assets	(1		)	(2		)	(3		)	(3		)
Amortization of prior service cost	—			—			1			1
Net periodic defined benefit costs	$	3		$	3		$	5		$	6

PPL Electric Utilities Corp [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Allocation of Net Periodic Benefit Costs

For the periods ended June 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric	$	5	$	8	$	11	$	16
LG&E	3		4		5		7
KU	3		4		6		9

LG And E And KU Energy LLC [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries, LKE and its subsidiaries and LG&E for the periods ended June 30:

	Pension Benefits
	Three Months												Six Months
	U.S.						U.K.						U.S.						U.K.
	2016			2015			2016 (b)			2015			2016			2015			2016 (b)			2015
PPL
Service cost	$	16		$	26		$	18		$	19		$	33		$	56		$	36		$	39
Interest cost	44			52			62			77			87			110			124			156
Expected return on plan assets	(58		)	(69		)	(132		)	(129		)	(114		)	(145		)	(265		)	(260		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	10			22			36			40			25			47			73			79
Net periodic defined benefit costs (credits) (a)	$	15		$	33		$	(16	)	$	7		$	35		$	72		$	(32	)	$	14
LKE
Service cost	$	6		$	6								$	12		$	13
Interest cost	18			17									35			34
Expected return on plan assets	(24		)	(22		)							(45		)	(44		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	5			9									10			17
Net periodic defined benefit costs	$	8		$	12								$	16		$	24
LG&E
Service cost	$	1		$	1								$	1		$	1
Interest cost	4			4									7			7
Expected return on plan assets	(5		)	(5		)							(10		)	(10		)
Amortization of:
Prior service cost	1			—									2			1
Actuarial loss	1			3									3			6
Net periodic defined benefit costs	$	2		$	3								$	3		$	5

(a) For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

(b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

	Other Postretirement Benefits
	Three Months						Six Months
	2016			2015			2016			2015
PPL
Service cost	$	2		$	3		$	4		$	7
Interest cost	7			7			13			14
Expected return on plan assets	(6		)	(7		)	(11		)	(14		)
Net periodic defined benefit costs	$	3		$	3		$	6		$	7
LKE
Service cost	$	1		$	2		$	2		$	3
Interest cost	3			3			5			5
Expected return on plan assets	(1		)	(2		)	(3		)	(3		)
Amortization of prior service cost	—			—			1			1
Net periodic defined benefit costs	$	3		$	3		$	5		$	6

Louisville Gas And Electric Co [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule Of Net Periodic Defined Benefit Costs (Credits)

	Pension Benefits
	Three Months												Six Months
	U.S.						U.K.						U.S.						U.K.
	2016			2015			2016 (b)			2015			2016			2015			2016 (b)			2015
PPL
Service cost	$	16		$	26		$	18		$	19		$	33		$	56		$	36		$	39
Interest cost	44			52			62			77			87			110			124			156
Expected return on plan assets	(58		)	(69		)	(132		)	(129		)	(114		)	(145		)	(265		)	(260		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	10			22			36			40			25			47			73			79
Net periodic defined benefit costs (credits) (a)	$	15		$	33		$	(16	)	$	7		$	35		$	72		$	(32	)	$	14
LKE
Service cost	$	6		$	6								$	12		$	13
Interest cost	18			17									35			34
Expected return on plan assets	(24		)	(22		)							(45		)	(44		)
Amortization of:
Prior service cost	3			2									4			4
Actuarial loss	5			9									10			17
Net periodic defined benefit costs	$	8		$	12								$	16		$	24
LG&E
Service cost	$	1		$	1								$	1		$	1
Interest cost	4			4									7			7
Expected return on plan assets	(5		)	(5		)							(10		)	(10		)
Amortization of:
Prior service cost	1			—									2			1
Actuarial loss	1			3									3			6
Net periodic defined benefit costs	$	2		$	3								$	3		$	5

(a) For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

(b) See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

Allocation of Net Periodic Benefit Costs

For the periods ended June 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric	$	5	$	8	$	11	$	16
LG&E	3		4		5		7
KU	3		4		6		9

Kentucky Utilities Co [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Allocation of Net Periodic Benefit Costs

For the periods ended June 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric	$	5	$	8	$	11	$	16
LG&E	3		4		5		7
KU	3		4		6		9

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Guarantees

The table below details guarantees provided as of June 30, 2016.

	Exposure at June 30, 2016			Expiration Date
PPL
Indemnifications related to the WPD Midlands acquisition			(a)
WPD indemnifications for entities in liquidation and sales of assets	$	10	(b)	2019
WPD guarantee of pension and other obligations of unconsolidated entities	105		(c)
PPL Electric
Guarantee of inventory value	21		(d)	2018
LKE
Indemnification of lease termination and other divestitures	301		(e)	2021 - 2023
LG&E and KU
LG&E and KU guarantee of shortfall related to OVEC			(f)

(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. Additionally, 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 June 30, 2016, 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) 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.

(e) LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE's indemnitee filed a motion for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. In September 2015, a counterparty issued a demand letter to LKE's indemnitee. In February 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the demands. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting certain settlement discussions, however, 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; 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 the indemnification circumstances, but does not expect such outcomes to result in significant losses above the amounts recorded.

(f) 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 included within a demand charge designed and expected to cover these costs over the term of the contract. LKE's proportionate share of OVEC's outstanding debt was $125 million at June 30, 2016, consisting of LG&E's share of $87 million and KU's share of $38 million. 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 13 in PPL's, LKE's, LG&E's and KU's 2015 Form 10-K for additional information on the OVEC power purchase contract.

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2016

PPL Electric Utilities Corp [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

LG And E And KU Energy LLC [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

Louisville Gas And Electric Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

Kentucky Utilities Co [Member]

Related Party Transactions [Line Items]

Intercompany Support Cost Allocations

PPL Services, PPL EU Services and LKS charged the following amounts for the periods ended June 30, including amounts applied to accounts that are further distributed between capital and expense on the books of the recipients, based on methods that are believed to be reasonable.

	Three Months				Six Months
	2016		2015		2016		2015
PPL Electric from PPL Services	$	28	$	25	$	65	$	55
LKE from PPL Services	4		4		9		8
PPL Electric from PPL EU Services	16		17		33		32
LG&E from LKS	41		53		88		104
KU from LKS	49		58		105		114

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The assets and liabilities measured at fair value were:

	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
PPL
Assets
Cash and cash equivalents	$	492	$	492	$	—	$	—	$	836	$	836	$	—	$	—
Restricted cash and cash equivalents (a)	33		33		—		—		33		33		—		—
Price risk management assets (b):
Foreign currency contracts	393		—		393		—		209		—		209		—
Cross-currency swaps	92		—		92		—		86		—		86		—
Total price risk management assets	485		—		485		—		295		—		295		—
Auction rate securities (c)	2		—		—		2		2		—		—		2
Total assets	$	1,012	$	525	$	485	$	2	$	1,166	$	869	$	295	$	2
Liabilities
Price risk management liabilities (b):
Interest rate swaps	$	56	$	—	$	56	$	—	$	71	$	—	$	71	$	—
Foreign currency contracts	—		—		—		—		1		—		1		—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	72	$	—	$	72	$	—
PPL Electric
Assets
Cash and cash equivalents	$	35	$	35	$	—	$	—	$	47	$	47	$	—	$	—
Restricted cash and cash equivalents (a)	2		2		—		—		2		2		—		—
Total assets	$	37	$	37	$	—	$	—	$	49	$	49	$	—	$	—
LKE
Assets
Cash and cash equivalents	$	16	$	16	$	—	$	—	$	30	$	30	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	25	$	25	$	—	$	—	$	39	$	39	$	—	$	—

	June 30, 2016								December 31, 2015
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
LG&E
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	19	$	19	$	—	$	—
Cash collateral posted to counterparties (d)	9		9		—		—		9		9		—		—
Total assets	$	17	$	17	$	—	$	—	$	28	$	28	$	—	$	—
Liabilities
Price risk management liabilities:
Interest rate swaps	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
Total price risk management liabilities	$	56	$	—	$	56	$	—	$	47	$	—	$	47	$	—
KU
Assets
Cash and cash equivalents	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—
Total assets	$	8	$	8	$	—	$	—	$	11	$	11	$	—	$	—

(a) Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

(b) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(c) Included in "Other noncurrent assets" on the Balance Sheets.

(d) Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset.

Fair Value, by Balance Sheet Grouping

The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below.

	June 30, 2016				December 31, 2015
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
PPL	$	19,168	$	22,669	$	19,048	$	21,218
PPL Electric	2,830		3,359		2,828		3,088
LKE	5,089		5,773		5,088		5,384
LG&E	1,642		1,832		1,642		1,704
KU	2,327		2,666		2,326		2,467

(a) Amounts are net of debt issuance costs

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets, excluding derivative instruments of discontinued operations.

	June 30, 2016								December 31, 2015
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	$	—	$	—	$	—	$	6	$	—	$	24	$	—	$	5
Cross-currency swaps (b)	3		—		—		—		35		—		—		—
Foreign currency contracts	—		—		197		—		10		—		94		1
Total current	3		—		197		6		45		24		94		6
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	—		—		—		50		—		—		—		42
Cross-currency swaps (b)	89		—		—		—		51		—		—		—
Foreign currency contracts	—		—		196		—		—		—		105		—
Total noncurrent	89		—		196		50		51		—		105		42
Total derivatives	$	92	$	—	$	393	$	56	$	96	$	24	$	199	$	48

(a) Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

(b) Excludes accrued interest, if applicable.

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2016.

								Three Months					Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	(3	)	$	(21	)	Interest expense	$	(2	)	$	—	$	(3	)	$	—
Cross-currency swaps	(104		)	9			Interest expense	(1		)	—		—			—
							Other income (expense) - net	(103		)	—		(6		)	—
Total	$	(107	)	$	(12	)		$	(106	)	$	—	$	(9	)	$	—
Net Investment Hedges:
Foreign currency contracts	$	1		$	4

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	171		$	231
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	169		$	227
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the periods ended June 30, 2015.

								Three Months						Six Months
Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)						Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)			Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	Three Months			Six Months
Cash Flow Hedges:
Interest rate swaps	$	17		$	(2	)	Interest expense	$	(3	)	$	—		$	(7	)	$	—
							Discontinued operations	—			(77		)	—			(77		)
Cross-currency swaps	15			36			Interest expense	1			—			2			—
							Other income (expense) - net	15			—			32			—
Commodity contracts	—			—			Discontinued operations	6			7			13			7
Total	$	32		$	34			$	19		$	(70	)	$	40		$	(70	)
Net Investment Hedges:
Foreign currency contracts	$	(17	)	$	(1	)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	Three Months			Six Months
Foreign currency contracts	Other income (expense) - net	$	(102	)	$	(14	)
Interest rate swaps	Interest expense	(2		)	(4		)
	Total	$	(104	)	$	(18	)
Derivatives Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76		$	20
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

At June 30, 2016, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	31	$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments	8		8		8
Aggregate fair value of additional collateral requirements in the event of  a credit downgrade below investment grade (a)	23		23		23

(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet.

LG And E And KU Energy LLC [Member]

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2016				December 31, 2015
	Assets		Liabilities			Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	6		$	—	$	5
Total current	—		6			—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		50			—		42
Total noncurrent	—		50			—		42
Total derivatives	$	—	$	56		$	—	$	47

(a) Represents the location on the Balance Sheets.

Derivative Instruments, Gain (Loss)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	76	$	20

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2016.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2015.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

At June 30, 2016, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	31	$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments	8		8		8
Aggregate fair value of additional collateral requirements in the event of  a credit downgrade below investment grade (a)	23		23		23

(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet.

Louisville Gas And Electric Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

	June 30, 2016				December 31, 2015
	Assets		Liabilities			Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	6		$	—	$	5
Total current	—		6			—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		50			—		42
Total noncurrent	—		50			—		42
Total derivatives	$	—	$	56		$	—	$	47

(a) Represents the location on the Balance Sheets.

Derivative Instruments, Gain (Loss)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2016.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	(3	)	$	(9	)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the periods ended June 30, 2015.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	Three Months			Six Months
Interest rate swaps	Interest expense	$	(2	)	$	(4	)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months			Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	7		$	3

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

At June 30, 2016, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	31	$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments	8		8		8
Aggregate fair value of additional collateral requirements in the event of  a credit downgrade below investment grade (a)	23		23		23

(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet.

Kentucky Utilities Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Derivative Instruments, Gain (Loss)

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the periods ended June 30, 2015. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	Three Months		Six Months
Interest rate swaps	Regulatory assets - noncurrent	$	38	$	10

Derivative Positions Eligible for Offset with Related Cash Collateral

The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.

	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
June 30, 2016
Treasury Derivatives
PPL	$	485	$	—	$	76	$	409	$	56	$	—	$	9	$	47
LKE	—		—		—		—		56		—		9		47
LG&E	—		—		—		—		56		—		9		47

December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

XML

Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2016

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

(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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

LG And E And KU Energy LLC [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

(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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

Louisville Gas And Electric Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

(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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

Kentucky Utilities Co [Member]

Asset Retirement Obligation [Line Items]

Asset Retirement Obligation Roll Forward

(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, 2015	$	586		$	535		$	175		$	360
Accretion	13			12			4			8
Effect of foreign currency exchange rates	(2		)	—			—			—
Obligations settled	(8		)	(8		)	(6		)	(2		)
Balance at June 30, 2016	$	589		$	539		$	173		$	366

XML

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2016

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Foreign currency translation adjustments			Unrealized gains (losses)									Defined benefit plans
				Available- for-sale securities			Qualifying derivatives			Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
PPL
March 31, 2016	$	(984	)	$	—		$	(5	)	$	—		$	(6	)	$	(2,164	)	$	(3,159	)
Amounts arising during the period	268			—			(85		)	—			—			2			185
Reclassifications from AOCI	—			—			85			(1		)	1			32			117
Net OCI during the period	268			—			—			(1		)	1			34			302
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
December 31, 2015	$	(520	)	$	—		$	(7	)	$	—		$	(6	)	$	(2,195	)	$	(2,728	)
Amounts arising during the period	(196		)	—			(5		)	—			—			2			(199		)
Reclassifications from AOCI	—			—			7			(1		)	1			63			70
Net OCI during the period	(196		)	—			2			(1		)	1			65			(129		)
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
March 31, 2015	$	(352	)	$	206		$	9		$	—		$	3		$	(2,177	)	$	(2,311	)
Amounts arising during the period	(83		)	2			21			—			(6		)	53			(13		)
Reclassifications from AOCI	—			(1		)	27			—			—			38			64
Net OCI during the period	(83		)	1			48			—			(6		)	91			51
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
December 31, 2014	$	(286	)	$	202		$	20		$	1		$	3		$	(2,214	)	$	(2,274	)
Amounts arising during the period	(149		)	7			27			—			(6		)	52			(69		)
Reclassifications from AOCI	—			(2		)	10			(1		)	—			76			83
Net OCI during the period	(149		)	5			37			(1		)	(6		)	128			14
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
LKE
March 31, 2016										$	—		$	(10	)	$	(35	)	$	(45	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			1			1
Net OCI during the period										(1		)	1			2			2
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)
December 31, 2015										$	—		$	(10	)	$	(36	)	$	(46	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			2			2
Net OCI during the period										(1		)	1			3			3
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)

	Foreign currency translation adjustments	Unrealized gains (losses)					Defined benefit plans
		Available- for-sale securities	Qualifying derivatives	Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
March 31, 2015				$	(1	)	$	(8	)	$	(36	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				—			1			—			1
Net OCI during the period				—			1			(8		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)
December 31, 2014				$	—		$	(8	)	$	(37	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				(1		)	1			1			1
Net OCI during the period				(1		)	1			(7		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)

Reclassification out of Other Comprehensive Income (Loss)

The following table presents the gains (losses) and related income taxes for reclassifications from AOCI for the periods ended June 30. The defined benefit plan components of AOCI are not reflected in their entirety in the Statement of Income during the periods; rather, they are included in the computation of net periodic defined benefit costs (credits) and subject to capitalization. See Note 9 for additional information.

	Three Months						Six Months						Affected Line Item on the
Details about AOCI	2016			2015			2016			2015			Statements of Income
Available-for-sale securities	$	—		$	2		$	—		$	4		Other Income (Expense) - net
Total Pre-tax	—			2			—			4
Income Taxes	—			(1		)	—			(2		)
Total After-tax	—			1			—			2
Qualifying derivatives
Interest rate swaps	(2		)	(3		)	(3		)	(7		)	Interest Expense
	—			(77		)	—			(77		)	Discontinued operations
Cross-currency swaps	(103		)	15			(6		)	32			Other Income (Expense) - net
	(1		)	1			—			2			Interest Expense
Commodity contracts	—			13			—			20			Discontinued operations
Total Pre-tax	(106		)	(51		)	(9		)	(30		)
Income Taxes	21			24			2			20
Total After-tax	(85		)	(27		)	(7		)	(10		)
Equity investees' AOCI	1			—			1			2			Other Income (Expense) - net
Total Pre-tax	1			—			1			2
Income Taxes	—			—			—			(1		)
Total After-tax	1			—			1			1
Defined benefit plans
Prior service costs	(1		)	—			(1		)	—
Net actuarial loss	(40		)	(50		)	(80		)	(101		)
Total Pre-tax	(41		)	(50		)	(81		)	(101		)
Income Taxes	8			12			17			25
Total After-tax	(33		)	(38		)	(64		)	(76		)
Total reclassifications during the period	$	(117	)	$	(64	)	$	(70	)	$	(83	)

LG And E And KU Energy LLC [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The after-tax changes in AOCI by component for the periods ended June 30 were as follows.

	Foreign currency translation adjustments			Unrealized gains (losses)									Defined benefit plans
				Available- for-sale securities			Qualifying derivatives			Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
PPL
March 31, 2016	$	(984	)	$	—		$	(5	)	$	—		$	(6	)	$	(2,164	)	$	(3,159	)
Amounts arising during the period	268			—			(85		)	—			—			2			185
Reclassifications from AOCI	—			—			85			(1		)	1			32			117
Net OCI during the period	268			—			—			(1		)	1			34			302
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
December 31, 2015	$	(520	)	$	—		$	(7	)	$	—		$	(6	)	$	(2,195	)	$	(2,728	)
Amounts arising during the period	(196		)	—			(5		)	—			—			2			(199		)
Reclassifications from AOCI	—			—			7			(1		)	1			63			70
Net OCI during the period	(196		)	—			2			(1		)	1			65			(129		)
June 30, 2016	$	(716	)	$	—		$	(5	)	$	(1	)	$	(5	)	$	(2,130	)	$	(2,857	)
March 31, 2015	$	(352	)	$	206		$	9		$	—		$	3		$	(2,177	)	$	(2,311	)
Amounts arising during the period	(83		)	2			21			—			(6		)	53			(13		)
Reclassifications from AOCI	—			(1		)	27			—			—			38			64
Net OCI during the period	(83		)	1			48			—			(6		)	91			51
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
December 31, 2014	$	(286	)	$	202		$	20		$	1		$	3		$	(2,214	)	$	(2,274	)
Amounts arising during the period	(149		)	7			27			—			(6		)	52			(69		)
Reclassifications from AOCI	—			(2		)	10			(1		)	—			76			83
Net OCI during the period	(149		)	5			37			(1		)	(6		)	128			14
Distribution of PPL Energy Supply (Note 8)	—			(207		)	(55		)	—			—			238			(24		)
June 30, 2015	$	(435	)	$	—		$	2		$	—		$	(3	)	$	(1,848	)	$	(2,284	)
LKE
March 31, 2016										$	—		$	(10	)	$	(35	)	$	(45	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			1			1
Net OCI during the period										(1		)	1			2			2
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)
December 31, 2015										$	—		$	(10	)	$	(36	)	$	(46	)
Amounts arising during the period										—			—			1			1
Reclassifications from AOCI										(1		)	1			2			2
Net OCI during the period										(1		)	1			3			3
June 30, 2016										$	(1	)	$	(9	)	$	(33	)	$	(43	)

	Foreign currency translation adjustments	Unrealized gains (losses)					Defined benefit plans
		Available- for-sale securities	Qualifying derivatives	Equity investees' AOCI			Prior service costs			Actuarial gain (loss)			Total
March 31, 2015				$	(1	)	$	(8	)	$	(36	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				—			1			—			1
Net OCI during the period				—			1			(8		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)
December 31, 2014				$	—		$	(8	)	$	(37	)	$	(45	)
Amounts arising during the period				—			—			(8		)	(8		)
Reclassifications from AOCI				(1		)	1			1			1
Net OCI during the period				(1		)	1			(7		)	(7		)
June 30, 2015				$	(1	)	$	(7	)	$	(44	)	$	(52	)

XML

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2016 USD ($)	Jun. 30, 2016 USD ($) $ / shares	Jun. 30, 2015 USD ($) $ / shares	Jun. 30, 2016 USD ($) $ / shares	Jun. 30, 2015 USD ($) $ / shares	May 31, 2016
Foreign Currency Translation and Transactions (Numeric) [Abstract]
Foreign currency exchange translation rate from GBP to USD		1.34		1.34		1.46
Discount Rate Change for U.K. Pension Plans (Numeric) [Abstract]
Decrease in net periodic defined benefit cost from change in the discount rate		$ 11		$ 22
Decrease in net periodic defined benefit cost from change in the discount rate, after-tax		$ 9		$ 18
Decrease in net periodic defined benefit cost from change in the discount rate, per share | $ / shares		$ 0.02		$ 0.03
Accounting for Stock-Based Compensation (Numeric) [Abstract]
Income tax benefit		$ (192)	$ (71)	$ (371)	$ (288)
Per share | $ / shares		$ 0.71	$ (1.13)	$ 1.42	$ (0.17)
Cumulative effect adjustment to earnings reinvested				$ 7
New Accounting Pronouncement Early Adoption [Member]
Accounting for Stock-Based Compensation (Numeric) [Abstract]
Income tax benefit		$ 3		$ 11
Per share | $ / shares				$ 0.02
Cumulative effect adjustment to earnings reinvested				$ 7
Unaffiliated Third Party Entity [Member]
Accounts Receivable (Numeric) [Abstract]
Purchases of accounts receivable		297	$ 276	679	$ 607
Subsequent Event [Member]
Foreign Currency Translation and Transactions (Numeric) [Abstract]
Foreign currency translation loss recorded in accumulated other comprehensive income	$ 499
Decrease in property, plant and equipment from fluctuation in foreign currency translation rate	(991)
Decrease in goodwill from fluctuation in foreign currency translation rate	(228)
Decrease in long-term debt from fluctuation in foreign currency translation rate	$ (606)
PPL Electric Utilities Corp [Member]
Accounting for Stock-Based Compensation (Numeric) [Abstract]
Income tax benefit		(48)	(36)	(104)	(95)
PPL Electric Utilities Corp [Member] | New Accounting Pronouncement Early Adoption [Member]
Accounting for Stock-Based Compensation (Numeric) [Abstract]
Income tax benefit		2		7
PPL Electric Utilities Corp [Member] | Unaffiliated Third Party Entity [Member]
Accounts Receivable (Numeric) [Abstract]
Purchases of accounts receivable		$ 297	276	$ 679	607
PPL Electric Utilities Corp [Member] | PPL EnergyPlus [Member]
Accounts Receivable (Numeric) [Abstract]
Purchases of accounts receivable			$ 53		$ 146

XML

Segment and Related Information (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Income Statement Data [Abstract]
Revenues		$ 1,785	$ 1,781	$ 3,796	$ 4,011
Net income		483	(757)	964	(110)
Balance Sheet Data [Abstract]
Assets		39,528		39,528		$ 39,301
United Kingdom Regulated [Member]
Income Statement Data [Abstract]
Revenues		563	587	1,158	1,284
Net income	[1]	345	190	634	565
Balance Sheet Data [Abstract]
Assets	[2]	16,371		16,371		16,669
Segment (Numeric) [Abstract]
Net property, plant and equipment not subject to accounting for the effects of certain types of regulation		12,100		12,100		12,200
Kentucky Regulated [Member]
Income Statement Data [Abstract]
Revenues		721	714	1,547	1,613
Net income		76	47	188	156
Balance Sheet Data [Abstract]
Assets		13,886		13,886		13,756
Pennsylvania Regulated [Member]
Income Statement Data [Abstract]
Revenues		495	476	1,080	1,106
Net income		78	49	172	136
Balance Sheet Data [Abstract]
Assets		8,825		8,825		8,511
Corporate And Other [Member]
Income Statement Data [Abstract]
Revenues		6	4	11	8
Net income	[3]	(16)	(36)	(30)	(55)
Balance Sheet Data [Abstract]
Assets	[4]	446		446		$ 365
Discontinued Operations [Member]
Income Statement Data [Abstract]
Net income	[5]	$ 0	$ (1,007)	$ 0	$ (912)

[1] Includes unrealized gains and losses from hedging foreign-currency related economic activity. See Note 14 for additional information.

[2] Includes $12.1 billion and $12.2 billion of net PP&E as of June 30, 2016 and December 31, 2015. WPD is not subject to accounting for the effects of certain types of regulation as prescribed by GAAP.

[3] 2015 includes transition costs to prepare the Talen Energy organization for the June 1, 2015 spinoff and reconfigure the remaining PPL Services functions. See Note 8 for additional information.

[4] Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions.

[5] See Note 8 for additional information.

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income (Numerator) [Abstract]
Income from continuing operations after income taxes		$ 483	$ 250	$ 964	$ 802
Less amounts allocated to participating securities		1	1	3	2
Income from continuing operations after income taxes available to PPL common shareowners - Basic		482	249	961	800
Income from continuing operations after income taxes available to PPL common shareowners - Diluted		482	249	961	800
Income (loss) from discontinued operations (net of income taxes) available to PPL common shareowners - Basic and Diluted		0	(1,007)	0	(912)
Net income		483	(757)	964	(110)
Less amounts allocated to participating securities		1	1	3	2
Net income available to PPL common shareowners - Basic		482	(758)	961	(112)
Net income available to PPL common shareowners - Diluted		$ 482	$ (758)	$ 961	$ (112)
Shares of Common Stock (Denominator) [Abstract]
Weighted-average shares - Basic EPS (in shares)		677,145	668,415	676,293	667,698
Add incremental non-participating securities: [Abstract]
Share-based payment awards (in shares)		3,584	2,871	3,480	2,315
Weighted-average shares - Diluted EPS (in shares)		680,729	671,286	679,773	670,013
Basic EPS - Available to PPL common shareowners: [Abstract]
Income from continuing operations after income taxes (in dollars per share)		$ 0.71	$ 0.37	$ 1.42	$ 1.20
Income (loss) from discontinued operations (net of income taxes) (in dollars per share)		0.00	(1.50)	0.00	(1.37)
Net Income Available to PPL common shareowners (in dollars per share)		0.71	(1.13)	1.42	(0.17)
Diluted EPS - Available to PPL common shareowners: [Abstract]
Income from continuing operations after income taxes (in dollars per share)		0.71	0.37	1.41	1.19
Income (loss) from discontinued operations (net of income taxes) (in dollars per share)		0.00	(1.50)	0.00	(1.36)
Net Income Available to PPL common shareowners (in dollars per share)		$ 0.71	$ (1.13)	$ 1.41	$ (0.17)
Shares Issued (Numeric) [Abstract]
Common stock issued under stock-based compensation plans (in shares)	[1]	795	992	2,920	2,437
Common stock issued under dividend reinvestment plan (in shares)		370	424	772	843
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the computations of diluted EPS		696	348	696	1,085
Performance Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from the computations of diluted EPS		78	0	39	73

[1] Includes stock options exercised, vesting of performance units, vesting of restricted stock and restricted stock units and conversion of stock units granted to directors.

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2016		Jun. 30, 2015		Jun. 30, 2016		Jun. 30, 2015
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$ 236		$ 112		$ 467		$ 382
Federal statutory tax rate	35.00%		35.00%		35.00%		35.00%
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	$ 9		$ 9		$ 22		$ 29
Valuation allowance adjustments	3		5		9		8
Impact of lower U.K. income tax rates	(45)		(36)		(99)		(98)
Federal and state tax reserve adjustments	0		(12)	[1]	0		(12)	[1]
Interest benefit on United Kingdom financing entities	(4)		(3)		(9)		(11)
Stock-based compensation	(3)	[2]	0		(11)	[2]	0
Other	(4)		(4)		(8)		(10)
Total increase (decrease)	(44)		(41)		(96)		(94)
Total income tax	192		71		371		288
Income Tax Other Numeric [Abstract]
Refund for open audits for the years 1998-2011	3		23
Refund reflected in continuing operations for open audits for the years 1998-2011			11
PPL Electric Utilities Corp [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$ 44		$ 30		$ 97		$ 81
Federal statutory tax rate	35.00%		35.00%		35.00%		35.00%
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	$ 8		$ 4		$ 18		$ 14
Federal and state tax reserve adjustments	0		2		0		2
Depreciation not normalized	(2)		(1)		(3)		(2)
Stock-based compensation	(2)	[3]	0		(7)	[3]	0
Other	0		1		(1)		0
Total increase (decrease)	4		6		7		14
Total income tax	48		36		104		95
LG And E And KU Energy LLC [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$ 47		$ 37		$ 114		$ 104
Federal statutory tax rate	35.00%		35.00%		35.00%		35.00%
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	$ 5		$ 4		$ 12		$ 11
Valuation allowance adjustments	0		5	[4]	0		8	[4]
Stock-based compensation	0		0		(1)		0
Other	(1)		(1)		(2)		(2)
Total increase (decrease)	4		8		9		17
Total income tax	51		45		123		121
Louisville Gas And Electric Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$ 22		$ 20		$ 54		$ 50
Federal statutory tax rate	35.00%		35.00%		35.00%		35.00%
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	$ 2		$ 2		$ 6		$ 5
Other	0		0		(1)		0
Total increase (decrease)	2		2		5		5
Total income tax	24		22		59		55
Kentucky Utilities Co [Member]
Reconciliation of Income Tax Expense [Abstract]
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 35%	$ 31		$ 22		$ 73		$ 66
Federal statutory tax rate	35.00%		35.00%		35.00%		35.00%
Increase (decrease) due to: [Abstract]
State income taxes, net of federal income tax benefit	$ 3		$ 2		$ 7		$ 7
Other	0		0		0		(2)
Total increase (decrease)	3		2		7		5
Total income tax	$ 34		$ 24		$ 80		$ 71

[1] During the three and six months ended June 30, 2015, PPL recorded a tax benefit to adjust the settled refund amount approved by Joint Committee of Taxation for the open audit years 1998 - 2011.

[2] During the three and six months ended June 30, 2016, PPL recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

[3] During the three and six months ended June 30, 2016, PPL Electric recorded lower income tax expense related to the application of new stock-based compensation accounting guidance. See Note 2 for additional information.

[4] Represents a valuation allowance against tax credits expiring in 2016 and 2017 that are more likely than not to expire before being utilized.

XML

Utility Rate Regulation - Regulatory Assets (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Regulatory Assets [Line Items]
Current regulatory assets	[1]	$ 34	$ 48
Noncurrent regulatory assets		1,762	1,733
Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Current regulatory assets		6	24
Generation Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets		13	7
Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets		10	10
Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		800	809
Taxes Recoverable Through Future Rates [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		331	326
Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		79	93
Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		66	68
Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		148	141
Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		139	137
Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		187	143
Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets		5	7
Noncurrent regulatory assets		12	16
PPL Electric Utilities Corp [Member]
Regulatory Assets [Line Items]
Current regulatory assets	[1]	12	13
Noncurrent regulatory assets		995	1,006
PPL Electric Utilities Corp [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Current regulatory assets		0	0
PPL Electric Utilities Corp [Member] | Generation Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets		0	0
PPL Electric Utilities Corp [Member] | Transmission Service Charge [Member]
Regulatory Assets [Line Items]
Current regulatory assets		10	10
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		460	469
PPL Electric Utilities Corp [Member] | Taxes Recoverable Through Future Rates [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		331	326
PPL Electric Utilities Corp [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		23	30
PPL Electric Utilities Corp [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		41	42
PPL Electric Utilities Corp [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		0	0
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		139	137
PPL Electric Utilities Corp [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		0	0
PPL Electric Utilities Corp [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets		2	3
Noncurrent regulatory assets		1	2
LG And E And KU Energy LLC [Member]
Regulatory Assets [Line Items]
Current regulatory assets		22	35
Noncurrent regulatory assets		767	727
LG And E And KU Energy LLC [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Current regulatory assets		6	24
LG And E And KU Energy LLC [Member] | Generation Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets		13	7
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		340	340
LG And E And KU Energy LLC [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		56	63
LG And E And KU Energy LLC [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		25	26
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		148	141
LG And E And KU Energy LLC [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		187	143
LG And E And KU Energy LLC [Member] | Plant Retirement Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		5	6
LG And E And KU Energy LLC [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets		3	4
Noncurrent regulatory assets		6	8
Louisville Gas And Electric Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets		8	16
Noncurrent regulatory assets		440	424
Louisville Gas And Electric Co [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Current regulatory assets		6	13
Louisville Gas And Electric Co [Member] | Generation Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets		0	0
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		215	215
Louisville Gas And Electric Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		31	35
Louisville Gas And Electric Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		16	17
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		106	98
Louisville Gas And Electric Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		70	57
Louisville Gas And Electric Co [Member] | Plant Retirement Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		0	0
Louisville Gas And Electric Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets		2	3
Noncurrent regulatory assets		2	2
Kentucky Utilities Co [Member]
Regulatory Assets [Line Items]
Current regulatory assets		14	19
Noncurrent regulatory assets		327	303
Kentucky Utilities Co [Member] | Environmental Cost Recovery [Member]
Regulatory Assets [Line Items]
Current regulatory assets		0	11
Kentucky Utilities Co [Member] | Generation Formula Rate [Member]
Regulatory Assets [Line Items]
Current regulatory assets		13	7
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		125	125
Kentucky Utilities Co [Member] | Storm Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		25	28
Kentucky Utilities Co [Member] | Unamortized Loss On Debt [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		9	9
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		42	43
Kentucky Utilities Co [Member] | Asset Retirement Obligations [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		117	86
Kentucky Utilities Co [Member] | Plant Retirement Costs [Member]
Regulatory Assets [Line Items]
Noncurrent regulatory assets		5	6
Kentucky Utilities Co [Member] | Other Regulatory Assets [Member]
Regulatory Assets [Line Items]
Current regulatory assets		1	1
Noncurrent regulatory assets		$ 4	$ 6

[1] These amounts are included in "Other current assets" on the Balance Sheets.

XML

Utility Rate Regulation - Regulatory Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Regulatory Liabilities [Line Items]
Current regulatory liabilities		$ 99	$ 145
Noncurrent regulatory liabilities		935	945
Generation Supply Charge [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		26	41
Demand Side Management [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		10	8
Gas Supply Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	6
Universal Service Rider [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		6	5
Transmission Formula Rate [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		27	48
Fuel Adjustment Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		10	14
Storm Damage Expense [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		14	16
Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		695	691
Coal Contracts [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	8	17
Power Purchase Agreement OVEC [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	79	83
Net Deferred Tax Assets [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		24	23
Act 129 Compliance Rider [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		19	22
Defined Benefit Plans [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		27	24
Interest Rate Swaps [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		80	82
Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		6	7
Noncurrent regulatory liabilities		3	3
PPL Electric Utilities Corp [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		74	113
Noncurrent regulatory liabilities		19	22
PPL Electric Utilities Corp [Member] | Generation Supply Charge [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		26	41
PPL Electric Utilities Corp [Member] | Demand Side Management [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Gas Supply Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Universal Service Rider [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		6	5
PPL Electric Utilities Corp [Member] | Transmission Formula Rate [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		27	48
PPL Electric Utilities Corp [Member] | Fuel Adjustment Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Storm Damage Expense [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		14	16
PPL Electric Utilities Corp [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Coal Contracts [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	0	0
PPL Electric Utilities Corp [Member] | Power Purchase Agreement OVEC [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	0	0
PPL Electric Utilities Corp [Member] | Net Deferred Tax Assets [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Act 129 Compliance Rider [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		19	22
PPL Electric Utilities Corp [Member] | Defined Benefit Plans [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Interest Rate Swaps [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		0	0
PPL Electric Utilities Corp [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		1	3
Noncurrent regulatory liabilities		0	0
LG And E And KU Energy LLC [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		25	32
Noncurrent regulatory liabilities		916	923
LG And E And KU Energy LLC [Member] | Demand Side Management [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		10	8
LG And E And KU Energy LLC [Member] | Gas Supply Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	6
LG And E And KU Energy LLC [Member] | Fuel Adjustment Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		10	14
LG And E And KU Energy LLC [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		695	691
LG And E And KU Energy LLC [Member] | Coal Contracts [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	8	17
LG And E And KU Energy LLC [Member] | Power Purchase Agreement OVEC [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	79	83
LG And E And KU Energy LLC [Member] | Net Deferred Tax Assets [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		24	23
LG And E And KU Energy LLC [Member] | Defined Benefit Plans [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		27	24
LG And E And KU Energy LLC [Member] | Interest Rate Swaps [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		80	82
LG And E And KU Energy LLC [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		5	4
Noncurrent regulatory liabilities		3	3
Louisville Gas And Electric Co [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		8	13
Noncurrent regulatory liabilities		427	431
Louisville Gas And Electric Co [Member] | Demand Side Management [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		5	4
Louisville Gas And Electric Co [Member] | Gas Supply Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	6
Louisville Gas And Electric Co [Member] | Fuel Adjustment Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		2	2
Louisville Gas And Electric Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		304	301
Louisville Gas And Electric Co [Member] | Coal Contracts [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	3	7
Louisville Gas And Electric Co [Member] | Power Purchase Agreement OVEC [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	54	57
Louisville Gas And Electric Co [Member] | Net Deferred Tax Assets [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		23	23
Louisville Gas And Electric Co [Member] | Defined Benefit Plans [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		0	0
Louisville Gas And Electric Co [Member] | Interest Rate Swaps [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		40	41
Louisville Gas And Electric Co [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		1	1
Noncurrent regulatory liabilities		3	2
Kentucky Utilities Co [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		17	19
Noncurrent regulatory liabilities		489	492
Kentucky Utilities Co [Member] | Demand Side Management [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		5	4
Kentucky Utilities Co [Member] | Gas Supply Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		0	0
Kentucky Utilities Co [Member] | Fuel Adjustment Clause [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		8	12
Kentucky Utilities Co [Member] | Accumulated Cost Of Removal Of Utility Plant [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		391	390
Kentucky Utilities Co [Member] | Coal Contracts [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	5	10
Kentucky Utilities Co [Member] | Power Purchase Agreement OVEC [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities	[1]	25	26
Kentucky Utilities Co [Member] | Net Deferred Tax Assets [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		1	0
Kentucky Utilities Co [Member] | Defined Benefit Plans [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		27	24
Kentucky Utilities Co [Member] | Interest Rate Swaps [Member]
Regulatory Liabilities [Line Items]
Noncurrent regulatory liabilities		40	41
Kentucky Utilities Co [Member] | Other Regulatory Liabilities [Member]
Regulatory Liabilities [Line Items]
Current regulatory liabilities		4	3
Noncurrent regulatory liabilities		$ 0	$ 1

[1] These liabilities were recorded as offsets to certain intangible assets that were recorded at fair value upon the acquisition of LKE by PPL.

XML

Utility Rate Regulation - Regulatory Matters (Details) - USD ($) $ in Millions		6 Months Ended
	Aug. 08, 2016	Jun. 30, 2016
Regulatory Matters - United Kingdom Activities - Ofgem Review of Line Loss Calculation (Numeric) [Abstract]
Liability at period end regarding line loss incentive/penalty		$ 39
Regulatory Matters - Pennsylvania Activities - Act 129 (Numeric) [Abstract]
Maximum amount of costs that can be recovered under the Act 129 Phase III plan		$ 313
Period over which program costs can be recovered (in years)		5 years
Minimum term of long term supply contract under Act 129 (in years)		4 years
Maximum term of long term supply contract under Act 129 (in years)		20 years
Maximum percentage of long-term contracts that can be included in the mix of PLR supply contracts under Act 129		25.00%
Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Requested return on equity		10.00%
Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member] | Subsequent Event [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Approved return on equity	9.80%
PPL Electric Utilities Corp [Member]
Regulatory Matters - Pennsylvania Activities - Act 129 (Numeric) [Abstract]
Maximum amount of costs that can be recovered under the Act 129 Phase III plan		$ 313
Period over which program costs can be recovered (in years)		5 years
Minimum term of long term supply contract under Act 129 (in years)		4 years
Maximum term of long term supply contract under Act 129 (in years)		20 years
Maximum percentage of long-term contracts that can be included in the mix of PLR supply contracts under Act 129		25.00%
LG And E And KU Energy LLC [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Requested return on equity		10.00%
LG And E And KU Energy LLC [Member] | LGE [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Expected capitalized costs		$ 316
LG And E And KU Energy LLC [Member] | KU [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Expected capitalized costs		678
Louisville Gas And Electric Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Expected capitalized costs		$ 316
Requested return on equity		10.00%
Kentucky Utilities Co [Member] | Kentucky Public Service Commission [Member] | Environmental Cost Recovery [Member]
Regulatory Matters - Kentucky Activities - CPCN and ECR Filings (Numberic) [Abstract]
Expected capitalized costs		$ 678
Requested return on equity		10.00%

XML

Financing Activities - Credit Arrangements (Details) £ in Millions, $ in Millions		1 Months Ended	6 Months Ended
		Jul. 31, 2016	Jun. 30, 2016 USD ($)	Jun. 30, 2016 GBP (£)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 GBP (£)
WPD PLC [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jan. 13, 2021
Interest rate on outstanding borrowing			1.27%	1.27%	1.83%	1.83%
WPD South West [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jul. 01, 2020
Interest rate on outstanding borrowing			0.92%	0.92%
WPD South West [Member] | Syndicated Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Expiration date		Jul. 29, 2021
WPD East Midlands [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jul. 01, 2020
Interest rate on outstanding borrowing			0.92%	0.92%
WPD East Midlands [Member] | Syndicated Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Expiration date		Jul. 29, 2021
WPD West Midlands [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jul. 01, 2020
WPD West Midlands [Member] | Syndicated Credit Facility [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Expiration date		Jul. 29, 2021
WPD [Member]
Line of Credit Facility [Line Items]
Unused capacity			$ 1,200
PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jan. 29, 2021
PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Nov. 12, 2018
PPL Capital Funding [Member] | Bilateral Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Mar. 17, 2017
PPL Electric [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jan. 29, 2021
LKE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Oct. 31, 2018
Interest rate on outstanding borrowing					1.68%	1.68%
LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
KU [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Oct. 01, 2017
United Kingdom, Pounds [Member]
Line of Credit Facility [Line Items]
Capacity | £	[1]			£ 1,095
Borrowed | £	[1]			269		£ 133
Letters of credit and commercial paper issued | £	[1]			4		4
Unused capacity | £	[1]			822
United Kingdom, Pounds [Member] | WPD PLC [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity | £				210
Borrowed			$ 200	138		133
Unused capacity | £				72
United Kingdom, Pounds [Member] | WPD South West [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity | £				245
Borrowed			146	100
Unused capacity | £				145
United Kingdom, Pounds [Member] | WPD East Midlands [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity | £				300
Borrowed			45	31
Unused capacity | £				269
United Kingdom, Pounds [Member] | WPD West Midlands [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity | £				300
Unused capacity | £				300
United Kingdom, Pounds [Member] | WPD [Member] | Uncommitted Credit Facilities [Member]
Line of Credit Facility [Line Items]
Capacity | £				40
Letters of credit and commercial paper issued | £				4		£ 4
Unused capacity | £				£ 36
United States of America, Dollars [Member] | PPL Capital Funding [Member]
Line of Credit Facility [Line Items]
Capacity			1,150
Letters of credit and commercial paper issued			337		$ 471
Unused capacity			813
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			700
Letters of credit and commercial paper issued			320		151
Unused capacity			380
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			300
Letters of credit and commercial paper issued					300
Unused capacity			300
United States of America, Dollars [Member] | PPL Capital Funding [Member] | Bilateral Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			150
Letters of credit and commercial paper issued			17		20
Unused capacity			133
United States of America, Dollars [Member] | PPL Electric [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			400
Letters of credit and commercial paper issued			7		1
Unused capacity			393
United States of America, Dollars [Member] | LKE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			75
Borrowed	[2]				75
Unused capacity			75
United States of America, Dollars [Member] | LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			500
Letters of credit and commercial paper issued			110		142
Unused capacity			390
United States of America, Dollars [Member] | KU [Member]
Line of Credit Facility [Line Items]
Capacity			598
Letters of credit and commercial paper issued			227		246
Unused capacity			371
United States of America, Dollars [Member] | KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			400
Letters of credit and commercial paper issued			29		48
Unused capacity			371
United States of America, Dollars [Member] | KU [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			198
Letters of credit and commercial paper issued			198		198
Unused capacity			$ 0
PPL Electric Utilities Corp [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Jan. 29, 2021
PPL Electric Utilities Corp [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			$ 400
Letters of credit and commercial paper issued			7		$ 1
Unused capacity			$ 393
LG And E And KU Energy LLC [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date	[2]		Oct. 31, 2018
Interest rate on outstanding borrowing					1.68%	1.68%
LG And E And KU Energy LLC [Member] | LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
LG And E And KU Energy LLC [Member] | KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
LG And E And KU Energy LLC [Member] | KU [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Oct. 01, 2017
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity	[2]		$ 75
Borrowed	[2]				$ 75
Unused capacity	[2]		75
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | LGE [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			500
Letters of credit and commercial paper issued			110		142
Unused capacity			390
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member]
Line of Credit Facility [Line Items]
Capacity			598
Letters of credit and commercial paper issued			227		246
Unused capacity			371
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			400
Letters of credit and commercial paper issued			29		48
Unused capacity			371
LG And E And KU Energy LLC [Member] | United States of America, Dollars [Member] | KU [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			198
Letters of credit and commercial paper issued			198		198
Unused capacity			$ 0
Louisville Gas And Electric Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
Louisville Gas And Electric Co [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			$ 500
Letters of credit and commercial paper issued			110		142
Unused capacity			$ 390
Kentucky Utilities Co [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Dec. 31, 2020
Kentucky Utilities Co [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Expiration date			Oct. 01, 2017
Kentucky Utilities Co [Member] | United States of America, Dollars [Member]
Line of Credit Facility [Line Items]
Capacity			$ 598
Letters of credit and commercial paper issued			227		246
Unused capacity			371
Kentucky Utilities Co [Member] | United States of America, Dollars [Member] | Syndicated Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			400
Letters of credit and commercial paper issued			29		48
Unused capacity			371
Kentucky Utilities Co [Member] | United States of America, Dollars [Member] | Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Capacity			198
Letters of credit and commercial paper issued			198		$ 198
Unused capacity			$ 0

[1] WPD plc's amounts borrowed at June 30, 2016 and December 31, 2015 were USD-denominated borrowings of $200 million for both periods, which bore interest at 1.27% and 1.83%. The unused capacity reflects the amount borrowed in GBP of £138 million as of the date borrowed. WPD (South West) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $146 million and bore interest at 0.92%. WPD (East Midlands) amount borrowed at June 30, 2016 was a GBP-denominated borrowing which equated to $45 million and bore interest at 0.92%. At June 30, 2016, the unused capacity under the U.K. credit facilities was approximately $1.2 billion.

[2] LKE's interest rate on outstanding borrowings at December 31, 2015 was 1.68%.

XML

Financing Activities - Short-term Debt (Details) - Commercial Paper [Member] - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Capacity	$ 2,100
Commercial paper issuances	465	$ 641
Unused capacity	$ 1,635
PPL Capital Funding [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.84%	0.78%
Capacity	$ 1,000
Commercial paper issuances	320	$ 451
Unused capacity	$ 680
PPL Electric [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.75%
Capacity	$ 400
Commercial paper issuances	6
Unused capacity	$ 394
LGE [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.71%
Capacity	$ 350
Commercial paper issuances	110	$ 142
Unused capacity	$ 240
KU [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.72%
Capacity	$ 350
Commercial paper issuances	29	$ 48
Unused capacity	$ 321
PPL Electric Utilities Corp [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.75%
Capacity	$ 400
Commercial paper issuances	6
Unused capacity	$ 394
LG And E And KU Energy LLC [Member] | LGE [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.71%
Capacity	$ 350
Commercial paper issuances	110	$ 142
Unused capacity	$ 240
LG And E And KU Energy LLC [Member] | KU [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.72%
Capacity	$ 350
Commercial paper issuances	29	$ 48
Unused capacity	$ 321
Louisville Gas And Electric Co [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.71%
Capacity	$ 350
Commercial paper issuances	110	$ 142
Unused capacity	$ 240
Kentucky Utilities Co [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.70%	0.72%
Capacity	$ 350
Commercial paper issuances	29	$ 48
Unused capacity	$ 321

XML

Financing Activities - Long-term Debt and ATM Program (Details) $ / shares in Units, £ in Millions, $ in Millions	1 Months Ended				3 Months Ended	6 Months Ended
	May 31, 2016 USD ($)	May 31, 2016 GBP (£)	Mar. 31, 2016 USD ($)	Feb. 26, 2015 USD ($) Integer	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($) $ / shares shares	May 31, 2016 GBP (£)
At-the-Market Stock Offering Program (Numeric) [Abstract]
Net proceeds from issuance of common stock						$ 76	$ 83
PPL Capital Funding [Member] | Senior Notes [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount	$ 650
Stated interest rate	3.10%							3.10%
Proceeds from debt, net of issuance costs	$ 645
Maturity date	May 15, 2026	May 15, 2026
WPD East Midlands [Member] | Index Linked Term Loan [Member]
Long-term Debt (Numeric) [Abstract]
Stated interest rate	0.4975%							0.4975%
Debt instrument term (in years)	10 years	10 years
WPD PLC [Member] | Senior Notes [Member]
Long-term Debt (Numeric) [Abstract]
Stated interest rate	3.90%							3.90%
Repayments of senior debt	$ 460
PPL Electric [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016A [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 116
Maturity date			Mar. 09, 2029
Interest rate at an initial term rate			0.90%
Repurchase date of debt instruments			Sep. 01, 2017
PPL Electric [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016B [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 108
Maturity date			Mar. 09, 2027
Interest rate at an initial term rate			0.90%
Repurchase date of debt instruments			Aug. 15, 2017
PPL Electric [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series A [Member]
Long-term Debt (Numeric) [Abstract]
Stated interest rate			4.70%
Maturity date			Mar. 09, 2029
Repurchased face amount			$ 116
PPL Electric [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series B [Member]
Long-term Debt (Numeric) [Abstract]
Stated interest rate			4.75%
Maturity date			Mar. 09, 2027
Repurchased face amount			$ 108
PPL Electric [Member] | First Mortgage Bond [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			224
United Kingdom, Pounds [Member] | WPD East Midlands [Member] | Index Linked Term Loan [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount | £								£ 100
Proceeds from debt, net of issuance costs | £		£ 100
PPL Electric Utilities Corp [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016A [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 116
Maturity date			Mar. 09, 2029
Interest rate at an initial term rate			0.90%
Repurchase date of debt instruments			Sep. 01, 2017
PPL Electric Utilities Corp [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds Series 2016B [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 108
Maturity date			Mar. 09, 2027
Interest rate at an initial term rate			0.90%
Repurchase date of debt instruments			Aug. 15, 2017
PPL Electric Utilities Corp [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series A [Member]
Long-term Debt (Numeric) [Abstract]
Stated interest rate			4.70%
Maturity date			Mar. 09, 2029
Repurchased face amount			$ 116
PPL Electric Utilities Corp [Member] | Senior Debt Obligations [Member] | Lehigh County Industrial Development Authority Pollution Control Revenue Refunding Bonds 2005 Series B [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 108
Stated interest rate			4.75%
Maturity date			Mar. 09, 2027
PPL Electric Utilities Corp [Member] | First Mortgage Bond [Member]
Long-term Debt (Numeric) [Abstract]
Principal amount			$ 224
At The Market Stock Offering Program [Member]
At-the-Market Stock Offering Program (Numeric) [Abstract]
Number of distribution agreements | Integer				2
Aggregate sales price of common stock based on two separate equity distribution agreements				$ 500
Shares of common stock issued during the period (in shares) | shares					421,700		421,700
Shares issued (dollars per share) | $ / shares					$ 33.73		$ 33.73
Net proceeds from issuance of common stock					$ 14		$ 14

XML

Financing Activities - Distributions (Details) - $ / shares	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Distributions (Numeric) [Abstract]
Quarterly common stock dividend declaration date	2016-05
Dividend payable date of quarterly common stock dividend	Jul. 01, 2016
Current quarterly common stock dividend (in dollars per share)	$ 0.38	$ 0.38	$ 0.3725	$ 0.76	$ 0.7450
Annualized current quarterly common stock dividend (in dollars per share)	$ 1.52

XML

Acquisitions, Development and Divestitures - Discontinued Operations (Details)
$ in Millions

1 Months Ended

3 Months Ended

6 Months Ended

Jun. 01, 2015

USD ($)

approach

Jun. 30, 2015

Jun. 30, 2016

USD ($)

Jun. 30, 2015

USD ($)

Jun. 30, 2016

USD ($)

Jun. 30, 2015

USD ($)

Discontinued Operations - Spinoff of PPL Energy Supply - Continuing Involvement (Numeric) [Abstract]

Energy purchases

$ 147

$ 170

$ 380

$ 499

Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract]

Income (Loss) from Discontinued Operations (net of income taxes)

0

(1,007)

$ 0

(912)

PPL Energy Supply Spinoff [Member]

Discontinued Operations - Spinoff of PPL Energy Supply (Numeric) [Abstract]

Effective date of spinoff

Jun. 01, 2015

Certain details of spinoff transaction

In June 2015, PPL completed the spinoff of PPL Energy Supply which combined its competitive power generation businesses with those of Riverstone to form a new, stand-alone, publicly traded company named Talen Energy.

Initial percent ownership in new company, Talen Energy, by PPL shareowners

65.00%

Initial percent ownership in new company, Talen Energy, by Riverstone Holdings, LLC

35.00%

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Number of approaches | approach

3

Weighted fair value

$ 3,200

Control premium

25.00%

Number of market approaches | approach

2

Review period used in determining the control premium (in years)

5 years

Minimum transaction value reviewed in determining the control premium

$ 1,000

Carrying value of the Supply segment

4,100

Discontinued Operations - Spinoff of PPL Energy Supply - Costs of Spinoff (Numeric) [Abstract]

Employee related costs incurred at the spinoff closing date reflected in discontinued operations

24

Third-party costs

36

42

Bank advisory, legal and accounting fees

29

31

Consulting and other costs

7

11

Loss on interest rate swaps recognized in discontinued operations on the statement of income

72

Loss after-tax, on interest rate swaps recognized in discontinued operations on the statement of income

42

Discontinued Operations - Spinoff of PPL Energy Supply - Continuing Involvement (Numeric) [Abstract]

Maximum period for Transition Service Agreement (in years)

2 years

Amount for services billed to spinoff

10

$ 20

Discontinued Operations - Spinoff of PPL Energy Supply - Summarized Results of Discontinued Operations (Details) [Abstract]

Operating revenues

483

1,427

Operating expenses

561

1,328

Other Income (Expense) - net

(29)

(22)

Interest expense

^[1]

112

150

Income (loss) before income taxes

(219)

(73)

Income tax expense (benefit)

(91)

(40)

Loss on spinoff

879

(879)

(879)

Income (Loss) from Discontinued Operations (net of income taxes)

(1,007)

(912)

PPL Energy Supply Spinoff [Member] | Talen Energy Marketing [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Continuing Involvement (Numeric) [Abstract]

Energy purchases

29

83

PPL Energy Supply Spinoff [Member] | Talen Energy Market Value [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Weighting

50.00%

Weighted fair value

$ 1,400

Control premium

25.00%

Midpoint of premiums received in market sales transactions reviewed

25.00%

PPL Energy Supply Spinoff [Member] | Talen Energy Market Value [Member] | Minimum [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Control premium

5.00%

PPL Energy Supply Spinoff [Member] | Talen Energy Market Value [Member] | Maximum [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Control premium

42.00%

PPL Energy Supply Spinoff [Member] | Income Discounted Cash Flow [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Weighting

30.00%

Weighted fair value

$ 1,100

PPL Energy Supply Spinoff [Member] | Alternative Market Comparable Company [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Weighting

20.00%

Weighted fair value

$ 700

Control premium

25.00%

Midpoint of premiums received in market sales transactions reviewed

25.00%

PPL Energy Supply Spinoff [Member] | Alternative Market Comparable Company [Member] | Minimum [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Control premium

5.00%

PPL Energy Supply Spinoff [Member] | Alternative Market Comparable Company [Member] | Maximum [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Loss on Spinoff (Numeric) [Abstract]

Control premium

42.00%

PPL Electric Utilities Corp [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Continuing Involvement (Numeric) [Abstract]

Energy purchases

118

$ 138

285

$ 365

PPL Electric Utilities Corp [Member] | PPL Energy Supply Spinoff [Member] | Talen Energy Marketing [Member]

Discontinued Operations - Spinoff of PPL Energy Supply - Continuing Involvement (Numeric) [Abstract]

Energy purchases

$ 29

$ 83

[1] Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized.

XML

Acquisitions, Development and Divestitures - Development (Details) - Northeast Pocono Reliability Project [Member] $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($) kV Substation mi
Development Projects [Line Items]
Total length of the expansion project (in miles) | mi	58
Capacity of a transmission line (in kilovolts) | kV	230
Substations included in request | Substation	3
Adder to the return on equity incentive denied in ratemaking request (in basis points)	100
Project costs capitalized | $	$ 350
PPL Electric Utilities Corp [Member]
Development Projects [Line Items]
Total length of the expansion project (in miles) | mi	58
Capacity of a transmission line (in kilovolts) | kV	230
Substations included in request | Substation	3
Adder to the return on equity incentive denied in ratemaking request (in basis points)	100
Project costs capitalized | $	$ 350

XML

Defined Benefits (Details) - USD ($) $ in Millions		3 Months Ended			6 Months Ended
		Jun. 30, 2016		Jun. 30, 2015	Jun. 30, 2016		Jun. 30, 2015
Pension Benefits United States [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		$ 16		$ 26	$ 33		$ 56
Interest cost		44		52	87		110
Expected return on plan assets		(58)		(69)	(114)		(145)
Amortization of: [Abstract]
Prior service cost		3		2	4		4
Actuarial loss		10		22	25		47
Net periodic defined benefit costs (credits)	[1]	15		33	35		72
Net period defined benefit costs reflected in discontinued operations allocated from PPL's plans to PPL Energy Supply prior to the spinoff				7			18
Pension Benefits United Kingdom [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		18	[2]	19	36	[2]	39
Interest cost		62	[2]	77	124	[2]	156
Expected return on plan assets		(132)	[2]	(129)	(265)	[2]	(260)
Amortization of: [Abstract]
Actuarial loss		36	[2]	40	73	[2]	79
Net periodic defined benefit costs (credits)	[1]	(16)	[2]	7	(32)	[2]	14
Other Postretirement Benefits United States [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		2		3	4		7
Interest cost		7		7	13		14
Expected return on plan assets		(6)		(7)	(11)		(14)
Amortization of: [Abstract]
Net periodic defined benefit costs (credits)		3		3	6		7
PPL Electric Utilities Corp [Member] | PPL Services [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors		5		8	11		16
LG And E And KU Energy LLC [Member] | Pension Benefits United States [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		6		6	12		13
Interest cost		18		17	35		34
Expected return on plan assets		(24)		(22)	(45)		(44)
Amortization of: [Abstract]
Prior service cost		3		2	4		4
Actuarial loss		5		9	10		17
Net periodic defined benefit costs (credits)		8		12	16		24
LG And E And KU Energy LLC [Member] | Other Postretirement Benefits United States [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		1		2	2		3
Interest cost		3		3	5		5
Expected return on plan assets		(1)		(2)	(3)		(3)
Amortization of: [Abstract]
Prior service cost		0		0	1		1
Net periodic defined benefit costs (credits)		3		3	5		6
Louisville Gas And Electric Co [Member] | LKE [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors		3		4	5		7
Louisville Gas And Electric Co [Member] | Pension Benefits United States [Member]
Net Periodic Defined Benefit Costs (Credits) (Details) [Abstract]
Service cost		1		1	1		1
Interest cost		4		4	7		7
Expected return on plan assets		(5)		(5)	(10)		(10)
Amortization of: [Abstract]
Prior service cost		1		0	2		1
Actuarial loss		1		3	3		6
Net periodic defined benefit costs (credits)		2		3	3		5
Kentucky Utilities Co [Member] | LKE [Member]
Net Periodic Defined Benefit Costs Allocated to Subsidiary by Sponsor (Numeric) [Abstract]
Costs allocated to subsidiary by plan sponsors		$ 3		$ 4	$ 6		$ 9

[1] For the three and six months ended June 30, 2015, the total net periodic defined benefit cost includes $7 million and $18 million reflected in discontinued operations related to costs allocated from PPL's plans to PPL Energy Supply prior to the spinoff.

[2] See Note 2 for a discussion of changes to the discount rate used for the U.K. Pension Plans.

XML

Commitments and Contingencies - Legal Matters and Regulatory Issues (Details)	6 Months Ended
	Jun. 30, 2016 Integer claim resident coal-fired_unit mi
LGE [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit | resident	6
Number of miles within plant that would include a class of residents | mi	4
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling | claim	1
Generating units retired at the Cane Run plant | coal-fired_unit	1
Additional generating units retired at the Cane Run plant | coal-fired_unit	2
LG And E And KU Energy LLC [Member] | LGE [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit	6
Number of miles within plant that would include a class of residents | mi	4
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling	1
Generating units retired at the Cane Run plant	1
Additional generating units retired at the Cane Run plant	2
Louisville Gas And Electric Co [Member]
Legal Matters - Cane Run Environmental Claims (Numeric) [Abstract]
Number of residents that filed class action suit	6
Number of miles within plant that would include a class of residents | mi	4
Number of remaining unresolved Clean Air Act violation claims after July 2014 court ruling	1
Generating units retired at the Cane Run plant	1
Additional generating units retired at the Cane Run plant	2

XML

Commitments and Contingencies - Environmental Matters (Details) wood_poles in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($) Integer wood_poles pollutant fuel_sources	Dec. 31, 2015 USD ($)
Environmental Matters - Domestic - Air (Numeric) [Abstract]
Number of criteria pollutants | pollutant	6
Number of fuel sources no longer subject to reporting and emission allowance requirements | fuel_sources	18
Environmental Matters - European Union Creosote Ban (Numeric) [Abstract]
Number of poles to be replaced | wood_poles	1.4
PPL Electric Additional Sites [Member]
Environmental Matters - Superfund and Other Remediation (Numeric) [Abstract]
Environmental site accrual	$ 10	$ 10
Potential costs for remediation and other liabilities in excess of accrual	30
LGE [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	311
KU [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	661
PPL Electric Utilities Corp [Member] | PPL Electric Additional Sites [Member]
Environmental Matters - Superfund and Other Remediation (Numeric) [Abstract]
Environmental site accrual	10	$ 10
Potential costs for remediation and other liabilities in excess of accrual	$ 30
LG And E And KU Energy LLC [Member]
Environmental Matters - Domestic - Air (Numeric) [Abstract]
Number of criteria pollutants | Integer	6
LG And E And KU Energy LLC [Member] | LGE [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	$ 311
LG And E And KU Energy LLC [Member] | KU [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	$ 661
Louisville Gas And Electric Co [Member]
Environmental Matters - Domestic - Air (Numeric) [Abstract]
Number of criteria pollutants | Integer	6
Louisville Gas And Electric Co [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	$ 311
Kentucky Utilities Co [Member]
Environmental Matters - Domestic - Air (Numeric) [Abstract]
Number of criteria pollutants | Integer	6
Kentucky Utilities Co [Member] | LGE And KU Sites [Member] | Coal Combustion Residuals [Member]
Environmental Matters - Water/Waste - Coal Combustion Residuals (Numeric) [Abstract]
Potential costs for compliance	$ 661

XML

Commitments and Contingencies - Guarantees and Other Assurances (Details) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2016

Dec. 31, 2015

Guarantor Obligations [Line Items]

Recorded liability for all guarantees

$ 22

$ 25

Other Guarantee (Numeric) [Abstract]

Maximum aggregate coverage bodily injury and property damage

$ 225

PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications Related To WPD Midlands Acquisition [Member]

Guarantor Obligations [Line Items]

Maximum exposure inestimable

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.

PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Entities In Liquidation Sales Of Assets [Member]

Guarantor Obligations [Line Items]

Maximum exposure

^[1]

$ 10

Expiration date

2019

PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Entities In Liquidation Sales Of Assets [Member] | Minimum [Member]

Guarantor Obligations [Line Items]

Period that indemnifications generally expire (in years)

2 years

PPL Guarantee [Member] | Indemnification Guarantee [Member] | Indemnifications For Entities In Liquidation Sales Of Assets [Member] | Maximum [Member]

Guarantor Obligations [Line Items]

Period that indemnifications generally expire (in years)

7 years

PPL Guarantee [Member] | Financial Guarantee [Member] | WPD Guarantee Of Pension And Other Obligations Of Unconsolidated Entities [Member]

Guarantor Obligations [Line Items]

Maximum exposure

^[2]

$ 105

PPL Electric Guarantee [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member]

Guarantor Obligations [Line Items]

Maximum exposure

^[3]

$ 21

Expiration date

2018

LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member]

Guarantor Obligations [Line Items]

Maximum exposure

^[4]

$ 301

Term of guarantee (in years)

12

Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues

$ 200

Maximum exposure of other guarantees expiring related to a terminated lease

$ 100

LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | Minimum [Member]

Guarantor Obligations [Line Items]

Expiration date

2021

LKE Guarantee [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | Maximum [Member]

Guarantor Obligations [Line Items]

Expiration date

2023

LGE And KU Guarantee [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]

Guarantor Obligations [Line Items]

Maximum exposure inestimable

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 13 in PPL's, LKE's, LG&E's and KU's 2015 Form 10-K for additional information on the OVEC power purchase contract.

Contingent proportionate share of OVEC's outstanding debt

$ 125

PPL Electric Utilities Corp [Member] | Indemnification Guarantee [Member] | Guarantee Of Inventory Value [Member]

Guarantor Obligations [Line Items]

Maximum exposure

$ 21

Expiration date

2018

LG And E And KU Energy LLC [Member]

Guarantor Obligations [Line Items]

Recorded liability for all guarantees

$ 17

$ 18

LG And E And KU Energy LLC [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member]

Guarantor Obligations [Line Items]

Maximum exposure

^[4]

$ 301

Term of guarantee (in years)

12

Maximum exposure of guarantee related to terminated lease specific to operational, regulatory and environmental issues

$ 200

Maximum exposure of other guarantees expiring related to a terminated lease

$ 100

LG And E And KU Energy LLC [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | Minimum [Member]

Guarantor Obligations [Line Items]

Expiration date

2021

LG And E And KU Energy LLC [Member] | Indemnification Guarantee [Member] | Indemnification Of Lease Termination And Other Divestitures [Member] | Maximum [Member]

Guarantor Obligations [Line Items]

Expiration date

2023

LG And E And KU Energy LLC [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]

Guarantor Obligations [Line Items]

Maximum exposure inestimable

The maximum exposure and the expiration date of these potential obligations are not presently determinable.

Contingent proportionate share of OVEC's outstanding debt

$ 125

Louisville Gas And Electric Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]

Guarantor Obligations [Line Items]

Maximum exposure inestimable

The maximum exposure and the expiration date of these potential obligations are not presently determinable.

Contingent proportionate share of OVEC's outstanding debt

$ 87

Kentucky Utilities Co [Member] | Financial Guarantee [Member] | LGE And KU Guarantee Of Shortfall Related To OVEC [Member]

Guarantor Obligations [Line Items]

Maximum exposure inestimable

The maximum exposure and the expiration date of these potential obligations are not presently determinable.

Contingent proportionate share of OVEC's outstanding debt

$ 38

[1] 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. Additionally, WPD and its affiliates remain secondarily responsible for lease payments under certain leases that they have assigned to third parties.

[2] 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 June 30, 2016, 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.

[3] 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.

[4] LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that fall outside the cap. Another WKE-related LKE guarantee covers other indemnifications related to the purchase price of excess power, has a term expiring in 2023, and a maximum exposure of $100 million. In May 2012, LKE's indemnitee received an unfavorable arbitration panel's decision interpreting this matter. In October 2014, LKE's indemnitee filed a motion for discretionary review with the Kentucky Supreme Court seeking to overturn the arbitration decision, and such motion was denied by the court in September 2015. In September 2015, a counterparty issued a demand letter to LKE's indemnitee. In February 2016, the counterparty filed a complaint in Henderson, Kentucky Circuit Court, seeking an award of damages in the matter. LKE does not believe appropriate contractual, legal or commercial grounds exist for the claim made and has disputed the demands. LKE believes its indemnification obligations in the WKE matter remain subject to various uncertainties, including additional legal and contractual developments, as well as future prices, availability and demand for the subject excess power. The parties are conducting certain settlement discussions, however, 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; 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 the indemnification circumstances, but does not expect such outcomes to result in significant losses above the amounts recorded.

XML

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
PPL Electric Utilities Corp [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Support cost allocations from subsidiary of parent to registrant	$ 28	$ 25	$ 65	$ 55
PPL Electric Utilities Corp [Member] | PPL EU Services [Member]
Support Costs (Details) [Abstract]
Support cost allocations from subsidiary of parent to registrant	16	17	33	32
LG And E And KU Energy LLC [Member]
Intercompany Borrowings (Numeric) [Abstract]
Notes payable to affiliates	176		176		$ 54
Long-term debt to affiliate	400		400		$ 400
LG And E And KU Energy LLC [Member] | PPL Services [Member]
Support Costs (Details) [Abstract]
Support cost allocations from subsidiary of parent to registrant	4	4	9	8
LG And E And KU Energy LLC [Member] | PPL Energy Funding [Member]
Intercompany Borrowings (Numeric) [Abstract]
Intercompany note with affiliate maximum borrowing capacity	225		$ 225
Intercompany borrowings demand note rate on outstanding borrowing			1.97%		1.74%
LG And E And KU Energy LLC [Member] | PPL Affiliate [Member]
Intercompany Borrowings (Numeric) [Abstract]
Debt instrument term (in years)			10 years		10 years
Long-term debt to affiliate	$ 400		$ 400		$ 400
Interest rate on ten-year note	3.50%		3.50%		3.50%
Louisville Gas And Electric Co [Member] | LKS [Member]
Intercompany Billings by LKS (Details) [Abstract]
Intercompany billings between affiliates	$ 41	53	$ 88	104
Kentucky Utilities Co [Member] | LKS [Member]
Intercompany Billings by LKS (Details) [Abstract]
Intercompany billings between affiliates	$ 49	$ 58	$ 105	$ 114

XML

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis Table (Details) - Recurring Fair Value Measurements [Member] - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents		$ 492	$ 836
Restricted cash and cash equivalents	[1]	33	33
Price risk management assets:
Foreign currency contracts assets	[2]	393	209
Cross-currency swaps assets	[2]	92	86
Total price risk management assets	[2]	485	295
Auction rate securities	[3]	2	2
Total assets		1,012	1,166
Price risk management liabilities:
Interest rate swaps liabilities	[2]	56	71
Foreign currency contracts liabilities	[2]	0	1
Total price risk management liabilities	[2]	56	72
Level 1 [Member]
Assets
Cash and cash equivalents		492	836
Restricted cash and cash equivalents	[1]	33	33
Price risk management assets:
Foreign currency contracts assets	[2]	0	0
Cross-currency swaps assets	[2]	0	0
Total price risk management assets	[2]	0	0
Auction rate securities	[3]	0	0
Total assets		525	869
Price risk management liabilities:
Interest rate swaps liabilities	[2]	0	0
Foreign currency contracts liabilities	[2]	0	0
Total price risk management liabilities	[2]	0	0
Level 2 [Member]
Assets
Cash and cash equivalents		0	0
Restricted cash and cash equivalents	[1]	0	0
Price risk management assets:
Foreign currency contracts assets	[2]	393	209
Cross-currency swaps assets	[2]	92	86
Total price risk management assets	[2]	485	295
Auction rate securities	[3]	0	0
Total assets		485	295
Price risk management liabilities:
Interest rate swaps liabilities	[2]	56	71
Foreign currency contracts liabilities	[2]	0	1
Total price risk management liabilities	[2]	56	72
Level 3 [Member]
Assets
Cash and cash equivalents		0	0
Restricted cash and cash equivalents	[1]	0	0
Price risk management assets:
Foreign currency contracts assets	[2]	0	0
Cross-currency swaps assets	[2]	0	0
Total price risk management assets	[2]	0	0
Auction rate securities	[3]	2	2
Total assets		2	2
Price risk management liabilities:
Interest rate swaps liabilities	[2]	0	0
Foreign currency contracts liabilities	[2]	0	0
Total price risk management liabilities	[2]	0	0
PPL Electric Utilities Corp [Member]
Assets
Cash and cash equivalents		35	47
Restricted cash and cash equivalents	[1]	2	2
Price risk management assets:
Total assets		37	49
PPL Electric Utilities Corp [Member] | Level 1 [Member]
Assets
Cash and cash equivalents		35	47
Restricted cash and cash equivalents	[1]	2	2
Price risk management assets:
Total assets		37	49
PPL Electric Utilities Corp [Member] | Level 2 [Member]
Assets
Cash and cash equivalents		0	0
Restricted cash and cash equivalents	[1]	0	0
Price risk management assets:
Total assets		0	0
PPL Electric Utilities Corp [Member] | Level 3 [Member]
Assets
Cash and cash equivalents		0	0
Restricted cash and cash equivalents	[1]	0	0
Price risk management assets:
Total assets		0	0
LG And E And KU Energy LLC [Member]
Assets
Cash and cash equivalents		16	30
Price risk management assets:
Cash collateral posted to counterparties	[4]	9	9
Total assets		25	39
Price risk management liabilities:
Interest rate swaps liabilities		56	47
Total price risk management liabilities		56	47
LG And E And KU Energy LLC [Member] | Level 1 [Member]
Assets
Cash and cash equivalents		16	30
Price risk management assets:
Cash collateral posted to counterparties	[4]	9	9
Total assets		25	39
Price risk management liabilities:
Interest rate swaps liabilities		0	0
Total price risk management liabilities		0	0
LG And E And KU Energy LLC [Member] | Level 2 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Cash collateral posted to counterparties	[4]	0	0
Total assets		0	0
Price risk management liabilities:
Interest rate swaps liabilities		56	47
Total price risk management liabilities		56	47
LG And E And KU Energy LLC [Member] | Level 3 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Cash collateral posted to counterparties	[4]	0	0
Total assets		0	0
Price risk management liabilities:
Interest rate swaps liabilities		0	0
Total price risk management liabilities		0	0
Louisville Gas And Electric Co [Member]
Assets
Cash and cash equivalents		8	19
Price risk management assets:
Cash collateral posted to counterparties	[4]	9	9
Total assets		17	28
Price risk management liabilities:
Interest rate swaps liabilities		56	47
Total price risk management liabilities		56	47
Louisville Gas And Electric Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents		8	19
Price risk management assets:
Cash collateral posted to counterparties	[4]	9	9
Total assets		17	28
Price risk management liabilities:
Interest rate swaps liabilities		0	0
Total price risk management liabilities		0	0
Louisville Gas And Electric Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Cash collateral posted to counterparties	[4]	0	0
Total assets		0	0
Price risk management liabilities:
Interest rate swaps liabilities		56	47
Total price risk management liabilities		56	47
Louisville Gas And Electric Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Cash collateral posted to counterparties	[4]	0	0
Total assets		0	0
Price risk management liabilities:
Interest rate swaps liabilities		0	0
Total price risk management liabilities		0	0
Kentucky Utilities Co [Member]
Assets
Cash and cash equivalents		8	11
Price risk management assets:
Total assets		8	11
Kentucky Utilities Co [Member] | Level 1 [Member]
Assets
Cash and cash equivalents		8	11
Price risk management assets:
Total assets		8	11
Kentucky Utilities Co [Member] | Level 2 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Total assets		0	0
Kentucky Utilities Co [Member] | Level 3 [Member]
Assets
Cash and cash equivalents		0	0
Price risk management assets:
Total assets		$ 0	$ 0

[1] Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.

[2] Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

[3] Included in "Other noncurrent assets" on the Balance Sheets.

[4] Included in "Other noncurrent assets" on the Balance Sheets. Represents cash collateral posted to offset the exposure with counterparties related to certain interest rate swaps under master netting arrangements that are not offset.

XML

Fair Value Measurements - Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt	[1]	$ 19,168	$ 19,048
Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt		22,669	21,218
PPL Electric Utilities Corp [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt	[1]	2,830	2,828
PPL Electric Utilities Corp [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt		3,359	3,088
LG And E And KU Energy LLC [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt	[1]	5,089	5,088
LG And E And KU Energy LLC [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt		5,773	5,384
Louisville Gas And Electric Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt	[1]	1,642	1,642
Louisville Gas And Electric Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt		1,832	1,704
Kentucky Utilities Co [Member] | Carrying Amount [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt	[1]	2,327	2,326
Kentucky Utilities Co [Member] | Fair Value [Member]
Fair Value of Financial Instruments Not Recorded at Fair Value - Other
Long-term debt		$ 2,666	$ 2,467

[1] Amounts are net of debt issuance costs.

XML

Derivative Instruments and Hedging Activities - Intro (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Master Netting Arrangements (Numeric) [Line Items]
Obligation to return cash collateral obligation under master netting arrangement	$ 76
Cash collateral posted under master netting arrangements	9	$ 9
LG And E And KU Energy LLC [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral posted under master netting arrangements	9	9
Louisville Gas And Electric Co [Member]
Master Netting Arrangements (Numeric) [Line Items]
Cash collateral posted under master netting arrangements	$ 9	$ 9

XML

Derivative Instruments and Hedging Activities - Risk Disclosures (Details)
$ in Millions, £ in Billions

1 Months Ended

6 Months Ended

12 Months Ended

Jul. 31, 2016

USD ($)

May 31, 2016

USD ($)

Jun. 30, 2016

USD ($)

Dec. 31, 2015

USD ($)

Jun. 30, 2016

GBP (£)

Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]

Repayment of senior notes

$ 460

Cash Flow Hedges [Member] | Cross Currency Interest Rate Swap Contracts [Member]

Interest Rate Risk And Foreign Currency Risk [Line Items]

Notional amount

$ 802

Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]

Earliest maturity date of cross-currency cash flow hedge contracts

2017

Latest maturity date of cross-currency cash flow hedge contracts

2028

Notional amount matured

$ 460

Gain (loss) recognized in income upon settlement of cross-currency interest rate swap contracts

$ 46

Cash Flow Hedges [Member] | Interest Rate Swap Contracts [Member]

Interest Rate Risk - Cash Flow Hedges (Numeric) [Abstract]

Insignificant or no hedge ineffectiveness associated with interest rate cash flow hedges

For the three and six months ended June 30, 2016, PPL had an insignificant amount of ineffectiveness associated with interest rate derivatives.

No or insignificant after-tax gains (losses) previously recorded in AOCI reclassified to earnings related to interest rate cash flow hedge contracts

PPL had no cash flow hedges reclassified into earnings associated with discontinued cash flow hedges for the three and six months ended June 30, 2016.

No or insignificant unrealized after-tax gains (losses) on interest rate cash flow hedge contracts expected to be reclassified into earnings during next 12 months

At June 30, 2016, the accumulated net unrecognized after-tax gains (losses) on qualifying derivatives that are expected to be reclassified into earnings during the next 12 months were insignificant.

Economic Hedges [Member] | Interest Rate Swap Contracts [Member]

Interest Rate Risk And Foreign Currency Risk [Line Items]

Notional amount

$ 179

Economic Hedges [Member] | Foreign Currency Contracts [Member]

Foreign Currency Risk - Economic Activity (Numeric) [Abstract]

Total exposure hedged related to foreign currency contracts for anticipated earnings hedges classified as economic activity

$ 2,700

£ 1.7

Earliest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity

July 2016

Latest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity

November 2018

Economic Hedges [Member] | Foreign Currency Contracts [Member] | Subsequent Event [Member]

Foreign Currency Risk - Economic Activity (Numeric) [Abstract]

Cash received on hedge settlement

$ 310

Economic Hedges [Member] | Foreign Currency Contracts [Member] | 2017 And 2018 Hedges [Member]

Interest Rate Risk And Foreign Currency Risk [Line Items]

Notional amount

$ 2,000

£ 1.3

Foreign Currency Risk - Economic Activity (Numeric) [Abstract]

Total exposure hedged related to foreign currency contracts for anticipated earnings hedges classified as economic activity

$ 296

Earliest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity

January 2017

Latest termination date of foreign currency contracts for anticipated earnings hedges classified as economic activity

November 2018

Net Investment Hedges [Member] | Combined Foreign Currency Contracts And Intercompany Loans [Member]

Foreign Currency Risk - Net Investment Hedges (Numeric) [Abstract]

Net after tax gains (losses) on net investment hedges recognized in the foreign currency translation adjustment component of AOCI

$ 22

$ 19

LG And E And KU Energy LLC [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member]

Interest Rate Risk And Foreign Currency Risk [Line Items]

Notional amount

179

Louisville Gas And Electric Co [Member] | Economic Hedges [Member] | Interest Rate Swap Contracts [Member]

Interest Rate Risk And Foreign Currency Risk [Line Items]

Notional amount

$ 179

Interest Rate Risk - Economic Activity (Numeric) [Abstract]

Year of expiration of the maximum maturity date of interest rate economic activity contracts

2033

XML

Derivative Instruments and Hedging Activities - Fair Values (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		$ 92	$ 96
Liability value		0	24
Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	3	45
Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1],[2]	3	35
Designated As Hedging Instruments [Member] | Current Assets [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	10	[1]
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	89	51
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1],[2]	89	51
Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	24	[1]
Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	24	[1],[2]
Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		393	199
Liability value		56	48
Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	197	94
Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	197	94
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	196	105
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value	[1]	196	105
Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[1]	6	6
Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[1],[2]	6	5
Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	1	[1]
Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[1]	50	42
Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[1],[2]	50	42
Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Cross Currency Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Foreign Currency Contracts [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value		0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Liability value		56	47
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	6	5
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	6	5
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	50	42
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	50	42
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Liability value		56	47
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Assets [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Asset value		0	0
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	6	5
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Current Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	6	5
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	50	42
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Noncurrent Liabilities [Member] | Interest Rate Swaps [Member]
Fair Values by Balance Sheet Location [Abstract]
Liability value	[3]	$ 50	$ 42

[1] Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.

[2] Excludes accrued interest, if applicable.

[3] Represents the location on the Balance Sheets.

XML

Derivative Instruments and Hedging Activities - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash Flow Hedges [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)	$ (106)	$ 19	$ (9)	$ 40
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	0	(70)	0	(70)
Cash Flow Hedges [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative gain (loss) recognized in OCI (effective portion)	(107)	32	(12)	34
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative gain (loss) recognized in OCI (effective portion)	(3)	17	(21)	(2)
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)	(2)	(3)	(3)	(7)
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	0	0	0	0
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Discontinued Operations [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)		0		0
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)		(77)		(77)
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative gain (loss) recognized in OCI (effective portion)	(104)	15	9	36
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)	(1)	1	0	2
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	0	0	0	0
Cash Flow Hedges [Member] | Cross Currency Swaps [Member] | Other Income (Expense) Net [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)	(103)	15	(6)	32
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	0	0	0	0
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative gain (loss) recognized in OCI (effective portion)		0		0
Cash Flow Hedges [Member] | Commodity Contracts [Member] | Discontinued Operations [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) reclassified from AOCI into income (effective portion)		6		13
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)		7		7
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | Other Comprehensive Income (Loss) [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Derivative gain (loss) recognized in OCI (effective portion)	1	(17)	4	(1)
Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets		76		20
Not Designated As Hedging Instruments [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	169	(104)	227	(18)
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	(3)	7	(9)	3
Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(2)	(2)	(4)	(4)
Not Designated As Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Other Income (Expense) Net [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	171	(102)	231	(14)
LG And E And KU Energy LLC [Member] | Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets		76		20
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	(3)	7	(9)	3
LG And E And KU Energy LLC [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	(2)	(2)	(4)	(4)
Louisville Gas And Electric Co [Member] | Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets		38		10
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets	(3)	7	(9)	3
Louisville Gas And Electric Co [Member] | Not Designated As Hedging Instruments [Member] | Interest Rate Swaps [Member] | Interest Expense [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized in income on derivative	$ (2)	(2)	$ (4)	(4)
Kentucky Utilities Co [Member] | Designated As Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Regulatory Assets Noncurrent [Member]
Amounts Included in Income, OCI or Regulatory Liabilities/Assets [Abstract]
Gain (loss) recognized as regulatory liabilities/assets		$ 38		$ 10

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Derivative Instruments and Hedging Activities - Offsetting Derivative Instruments and Credit Risk-Related Features (Details) - USD ($) $ in Millions		Jun. 30, 2016	Dec. 31, 2015
Credit Risk-Related Contingent Features [Abstract]
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features		$ 31
Aggregate fair value of collateral posted on these derivative instruments		8
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade	[1]	23
Treasury Derivatives [Member]
Assets [Abstract]
Gross		485	$ 295
Derivative instruments - eligible for offset		0	25
Cash collateral received - eligible for offset		76	0
Net		409	270
Liabilities [Abstract]
Gross		56	72
Derivative instruments - eligible for offset		0	25
Cash collateral pledged - eligible for offset		9	9
Net		47	38
LG And E And KU Energy LLC [Member]
Credit Risk-Related Contingent Features [Abstract]
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features		31
Aggregate fair value of collateral posted on these derivative instruments		8
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade	[1]	23
LG And E And KU Energy LLC [Member] | Treasury Derivatives [Member]
Liabilities [Abstract]
Gross		56	47
Cash collateral pledged - eligible for offset		9	9
Net		47	38
Louisville Gas And Electric Co [Member]
Credit Risk-Related Contingent Features [Abstract]
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features		31
Aggregate fair value of collateral posted on these derivative instruments		8
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade	[1]	23
Louisville Gas And Electric Co [Member] | Treasury Derivatives [Member]
Liabilities [Abstract]
Gross		56	47
Cash collateral pledged - eligible for offset		9	9
Net		$ 47	$ 38

[1] Includes the effect of net receivables and payables already recorded on the Balance Sheet.

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Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016 USD ($)
Easements [Member]
Indefinite-Lived Intangible Assets [Line Items]
Change in other intangible assets during the period	$ 47

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Asset Retirement Obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	$ 586
Accretion	13
Effect of foreign currency exchange rates	(2)
Obligations settled	(8)
Balance at End of Period	589
LG And E And KU Energy LLC [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	535
Accretion	12
Obligations settled	(8)
Balance at End of Period	539
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract]
Asset retirement obligation classified as current liabilities	76	$ 50
Louisville Gas And Electric Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	175
Accretion	4
Obligations settled	(6)
Balance at End of Period	173
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract]
Asset retirement obligation classified as current liabilities	37	25
Kentucky Utilities Co [Member]
Asset Retirement Obligation [Roll Forward]
Balance at Beginning of Period	360
Accretion	8
Obligations settled	(2)
Balance at End of Period	366
Asset Retirement Obligation Balance Sheet Classification (Details) [Abstract]
Asset retirement obligation classified as current liabilities	$ 39	$ 25

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Accumulated Other Comprehensive Income (Loss) - After-tax Changes by Component (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ (3,159)	$ (2,311)	$ (2,728)	$ (2,274)
Amounts arising during the period	185	(13)	(199)	(69)
Reclassifications from accumulated other comprehensive income	117	64	70	83
Net other comprehensive income during the period	302	51	(129)	14
Distribution of PPL Energy Supply		(24)		(24)
Balance at end of period	(2,857)	(2,284)	(2,857)	(2,284)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(984)	(352)	(520)	(286)
Amounts arising during the period	268	(83)	(196)	(149)
Reclassifications from accumulated other comprehensive income	0	0	0	0
Net other comprehensive income during the period	268	(83)	(196)	(149)
Distribution of PPL Energy Supply		0		0
Balance at end of period	(716)	(435)	(716)	(435)
Available For Sale Securities Unrealized Gains (Losses) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	206	0	202
Amounts arising during the period	0	2	0	7
Reclassifications from accumulated other comprehensive income	0	(1)	0	(2)
Net other comprehensive income during the period	0	1	0	5
Distribution of PPL Energy Supply		(207)		(207)
Balance at end of period	0	0	0	0
Qualifying Derivatives Unrealized Gains (Losses) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(5)	9	(7)	20
Amounts arising during the period	(85)	21	(5)	27
Reclassifications from accumulated other comprehensive income	85	27	7	10
Net other comprehensive income during the period	0	48	2	37
Distribution of PPL Energy Supply		(55)		(55)
Balance at end of period	(5)	2	(5)	2
Equity Investees Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	0	0	1
Amounts arising during the period	0	0	0	0
Reclassifications from accumulated other comprehensive income	(1)	0	(1)	(1)
Net other comprehensive income during the period	(1)	0	(1)	(1)
Distribution of PPL Energy Supply		0		0
Balance at end of period	(1)	0	(1)	0
Defined Benefit Plans Prior Service Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(6)	3	(6)	3
Amounts arising during the period	0	(6)	0	(6)
Reclassifications from accumulated other comprehensive income	1	0	1	0
Net other comprehensive income during the period	1	(6)	1	(6)
Distribution of PPL Energy Supply		0		0
Balance at end of period	(5)	(3)	(5)	(3)
Defined Benefit Plans Actuarial Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(2,164)	(2,177)	(2,195)	(2,214)
Amounts arising during the period	2	53	2	52
Reclassifications from accumulated other comprehensive income	32	38	63	76
Net other comprehensive income during the period	34	91	65	128
Distribution of PPL Energy Supply		238		238
Balance at end of period	(2,130)	(1,848)	(2,130)	(1,848)
LG And E And KU Energy LLC [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(45)	(45)	(46)	(45)
Amounts arising during the period	1	(8)	1	(8)
Reclassifications from accumulated other comprehensive income	1	1	2	1
Net other comprehensive income during the period	2	(7)	3	(7)
Balance at end of period	(43)	(52)	(43)	(52)
LG And E And KU Energy LLC [Member] | Equity Investees Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	(1)	0	0
Amounts arising during the period	0	0	0	0
Reclassifications from accumulated other comprehensive income	(1)	0	(1)	(1)
Net other comprehensive income during the period	(1)	0	(1)	(1)
Balance at end of period	(1)	(1)	(1)	(1)
LG And E And KU Energy LLC [Member] | Defined Benefit Plans Prior Service Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(10)	(8)	(10)	(8)
Amounts arising during the period	0	0	0	0
Reclassifications from accumulated other comprehensive income	1	1	1	1
Net other comprehensive income during the period	1	1	1	1
Balance at end of period	(9)	(7)	(9)	(7)
LG And E And KU Energy LLC [Member] | Defined Benefit Plans Actuarial Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(35)	(36)	(36)	(37)
Amounts arising during the period	1	(8)	1	(8)
Reclassifications from accumulated other comprehensive income	1	0	2	1
Net other comprehensive income during the period	2	(8)	3	(7)
Balance at end of period	$ (33)	$ (44)	$ (33)	$ (44)

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Accumulated Other Comprehensive Income (Loss) - Income (Expense) Effect of Reclassifications (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	$ (224)	$ (215)	$ (448)	$ (424)
Other Income (Expense) - net	174	(102)	235	(14)
Total Pre-tax	675	321	1,335	1,090
Income Taxes	(192)	(71)	(371)	(288)
Total After-tax	483	250	964	802
Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total After-tax	(117)	(64)	(70)	(83)
Available For Sale Securities [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Other Income (Expense) - net	0	2	0	4
Total Pre-tax	0	2	0	4
Income Taxes	0	(1)	0	(2)
Total After-tax	0	1	0	2
Qualifying Derivatives [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	(106)	(51)	(9)	(30)
Income Taxes	21	24	2	20
Total After-tax	(85)	(27)	(7)	(10)
Qualifying Derivatives [Member] | Interest Rate Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	(2)	(3)	(3)	(7)
Discontinued operations	0	(77)	0	(77)
Qualifying Derivatives [Member] | Cross Currency Swaps [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Interest Expense	(1)	1	0	2
Other Income (Expense) - net	(103)	15	(6)	32
Qualifying Derivatives [Member] | Commodity Contracts [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Discontinued operations	0	13	0	20
Equity Investees Accumulated Other Comprehensive Income [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Other Income (Expense) - net	1	0	1	2
Total Pre-tax	1	0	1	2
Income Taxes	0	0	0	(1)
Total After-tax	1	0	1	1
Defined Benefit Plans [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	(41)	(50)	(81)	(101)
Income Taxes	8	12	17	25
Total After-tax	(33)	(38)	(64)	(76)
Defined Benefit Plans [Member] | Prior Service Costs [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	(1)	0	(1)	0
Defined Benefit Plans [Member] | Net Actuarial Loss [Member] | Amounts Reclassified From Accumulated Other Comprehensive Income [Member]
Affected Line Item on the Statements of Income [Line Items]
Total Pre-tax	$ (40)	$ (50)	$ (80)	$ (101)