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Utility Rate Regulation (Tables)
6 Months Ended
Jun. 30, 2018
Utility Rate Regulation [Line Items]  
Regulatory Assets and Liabilities
The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.
 
PPL
 
PPL Electric
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
Current Regulatory Assets:
 
 
 
 
 
 
 
Environmental cost recovery
$

 
$
5

 
$

 
$

      Generation formula rate

 
6

 

 

Smart meter rider
15

 
15

 
15

 
15

Plant outage costs
6

 
3

 

 

Gas supply clause
5

 
4

 

 

Other
1

 
1

 
1

 
1

Total current regulatory assets (a)
$
27

 
$
34

 
$
16

 
$
16

 
 
 
 
 
 
 
 
Noncurrent Regulatory Assets:
 
 
 
 
 
 
 
Defined benefit plans
$
857

 
$
880

 
$
491

 
$
504

Taxes recoverable through future rates
3

 
3

 
3

 
3

Storm costs (b)
47

 
33

 
21

 

Unamortized loss on debt
49

 
54

 
25

 
29

Interest rate swaps
21

 
26

 

 

Terminated interest rate swaps
89

 
92

 

 

Accumulated cost of removal of utility plant
182

 
173

 
182

 
173

AROs
260

 
234

 

 

 Act 129 compliance rider
15

 

 
15

 

Other
7

 
9

 

 

Total noncurrent regulatory assets
$
1,530

 
$
1,504

 
$
737

 
$
709

 
PPL
 
PPL Electric
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
Current Regulatory Liabilities:
 
 
 
 
 
 
 
Generation supply charge
$
30

 
$
34

 
$
30

 
$
34

Transmission service charge
4

 
9

 
4

 
9

Environmental cost recovery
25

 
1

 

 

Universal service rider
20

 
26

 
20

 
26

Transmission formula rate
11

 
9

 
11

 
9

Fuel adjustment clause
5

 
3

 

 

TCJA customer refund (c)
33

 

 

 

Storm damage expense rider
1

 
8

 
1

 
8

Other
8

 
5

 

 

Total current regulatory liabilities
$
137

 
$
95

 
$
66

 
$
86

 
 
 
 
 
 
 
 
Noncurrent Regulatory Liabilities:
 
 
 
 
 
 
 
Accumulated cost of removal of utility plant
$
678

 
$
677

 
$

 
$

Power purchase agreement - OVEC (d)
64

 
68

 

 

Net deferred taxes (e)
1,858

 
1,853

 
652

 
668

Defined benefit plans
31

 
27

 

 

Terminated interest rate swaps
72

 
74

 

 

TCJA customer refund (f)
37

 

 
37

 

Other
7

 
5

 
3

 

Total noncurrent regulatory liabilities
$
2,747

 
$
2,704

 
$
692

 
$
668

 
LKE
 
LG&E
 
KU
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
Current Regulatory Assets:
 
 
 
 
 
 
 
 
 
 
 
Environmental cost recovery
$

 
$
5

 
$

 
$
5

 
$

 
$

      Generation formula rate

 
6

 

 

 

 
6

Plant outage costs
6

 
3

 
6

 
3

 

 

Gas supply clause
5

 
4

 
5

 
4

 

 

Total current regulatory assets
$
11

 
$
18

 
$
11

 
$
12

 
$

 
$
6

 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Regulatory Assets:
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plans
$
366

 
$
376

 
$
231

 
$
234

 
$
135

 
$
142

Storm costs
26

 
33

 
14

 
18

 
12

 
15

Unamortized loss on debt
24

 
25

 
15

 
16

 
9

 
9

Interest rate swaps
21

 
26

 
21

 
26

 

 

Terminated interest rate swaps
89

 
92

 
52

 
54

 
37

 
38

AROs
260

 
234

 
71

 
61

 
189

 
173

Other
7

 
9

 
2

 
2

 
5

 
7

Total noncurrent regulatory assets
$
793

 
$
795

 
$
406

 
$
411

 
$
387

 
$
384

 
LKE
 
LG&E
 
KU
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
 
June 30,
2018
 
December 31,
2017
Current Regulatory Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Environmental cost recovery
$
25

 
$
1

 
$
14

 
$

 
$
11

 
$
1

Fuel adjustment clause
5

 
3

 
1

 

 
4

 
3

Gas line tracker
2

 
3

 
2

 
3

 

 

TCJA customer refund (c)
33

 

 
15

 

 
18

 

Other
6

 
2

 
2

 

 
4

 
2

Total current regulatory liabilities
$
71

 
$
9

 
$
34

 
$
3

 
$
37

 
$
6

 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Regulatory Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accumulated cost of removal
of utility plant
$
678

 
$
677

 
$
280

 
$
282

 
$
398

 
395

Power purchase agreement - OVEC (d)
64

 
68

 
44

 
47

 
20

 
21

Net deferred taxes (e)
1,206

 
1,185

 
561

 
552

 
645

 
633

Defined benefit plans
31

 
27

 

 

 
31

 
27

Terminated interest rate swaps
72

 
74

 
36

 
37

 
36

 
37

Other
4

 
5

 
1

 
1

 
3

 
4

Total noncurrent regulatory liabilities
$
2,055

 
$
2,036

 
$
922

 
$
919

 
$
1,133

 
$
1,117

  
(a)
For PPL, these amounts are included in "Other current assets" on the Balance Sheets.
(b)
Storm costs incurred in PPL Electric's territory from a March 2018 storm will be amortized from 2019 through 2021.
(c)
Relates to estimated amounts owed to LG&E and KU customers as a result of the reduced U.S. federal corporate income tax rate as enacted by the TCJA, effective January 1, 2018. Amounts owed will be distributed through the TCJA bill credit.
(d)
This liability was recorded as an offset to an intangible asset that was recorded at fair value upon the acquisition of LKE by PPL.
(e)
Primarily relates to excess deferred taxes recorded as a result of the TCJA, which reduced the U.S. federal corporate income tax rate effective January 1, 2018, requiring deferred tax balances and the associated regulatory liabilities to be remeasured as of December 31, 2017. LG&E and KU began distributing amounts through the TCJA bill credit effective April 1, 2018.
(f)
Relates to amounts owed to PPL Electric customers as a result of the reduced U.S. federal corporate income tax rate as enacted by the TCJA, for the period of January 1, 2018 through June 30, 2018 which is not yet reflected in customer rates. The distribution method back to customers of this liability must be proposed to the PUC at the earlier of May 2021 or PPL Electric’s next rate case.