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



	PPL				PPL Electric
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Current Regulatory Assets:
Environmental cost recovery	$	—	$	5	$	—	$	—
Generation formula rate	—		6		—		—
Smart meter rider	16		15		16		15
Plant outage costs	7		3		—		—
Gas supply clause	3		4		—		—
Other	3		1		2		1
Total current regulatory assets (a)	$	29	$	34	$	18	$	16



	PPL				PPL Electric
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Noncurrent Regulatory Assets:
Defined benefit plans	$	847	$	880	$	486	$	504
Taxes recoverable through future rates	3		3		3		3
Storm costs (b)	45		33		22		—
Unamortized loss on debt	47		54		23		29
Interest rate swaps	18		26		—		—
Terminated interest rate swaps	88		92		—		—
Accumulated cost of removal of utility plant	190		173		190		173
AROs	267		234		—		—
Act 129 compliance rider	12		—		12		—
Other	8		9		2		—
Total noncurrent regulatory assets	$	1,525	$	1,504	$	738	$	709



	PPL				PPL Electric
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Current Regulatory Liabilities:
Generation supply charge	$	35	$	34	$	35	$	34
Transmission service charge	2		9		2		9
Environmental cost recovery	22		1		—		—
Universal service rider	23		26		23		26
Transmission formula rate	8		9		8		9
Fuel adjustment clause	7		3		—		—
TCJA customer refund (c)	26		—		—		—
Storm damage expense rider	4		8		4		8
Other	9		5		—		—
Total current regulatory liabilities	$	136	$	95	$	72	$	86

Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	678	$	677	$	—	$	—
Power purchase agreement - OVEC (d)	62		68		—		—
Net deferred taxes (e)	1,846		1,853		642		668
Defined benefit plans	33		27		—		—
Terminated interest rate swaps	72		74		—		—
TCJA customer refund (f)	41		—		41		—
Other	7		5		3		—
Total noncurrent regulatory liabilities	$	2,739	$	2,704	$	686	$	668



	LKE				LG&E				KU
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Current Regulatory Assets:
Plant outage costs	$	7	$	3	$	7	$	3	$	—	$	—
Generation formula rate	—		6		—		—		—		6
Gas supply clause	3		4		3		4		—		—
Other	1		5		1		5		—		—
Total current regulatory assets	$	11	$	18	$	11	$	12	$	—	$	6



	LKE				LG&E				KU
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Noncurrent Regulatory Assets:
Defined benefit plans	$	361	$	376	$	227	$	234	$	134	$	142
Storm costs	23		33		12		18		11		15
Unamortized loss on debt	24		25		15		16		9		9
Interest rate swaps	18		26		18		26		—		—
Terminated interest rate swaps	88		92		52		54		36		38
AROs	267		234		74		61		193		173
Other	6		9		2		2		4		7
Total noncurrent regulatory assets	$	787	$	795	$	400	$	411	$	387	$	384



	LKE				LG&E				KU
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Current Regulatory Liabilities:
Environmental cost recovery	$	22	$	1	$	11	$	—	$	11	$	1
Fuel adjustment clause	7		3		—		—		7		3
Gas line tracker	2		3		2		3		—		—
TCJA customer refund (c)	26		—		12		—		14		—
Other	7		2		1		—		6		2
Total current regulatory liabilities	$	64	$	9	$	26	$	3	$	38	$	6

Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	678	$	677	$	280	$	282	$	398	395
Power purchase agreement - OVEC (d)	62		68		43		47		19		21
Net deferred taxes (e)	1,204		1,185		560		552		644		633
Defined benefit plans	33		27		—		—		33		27
Terminated interest rate swaps	72		74		36		37		36		37
Other	4		5		1		1		3		4
Total noncurrent regulatory liabilities	$	2,053	$	2,036	$	920	$	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 distribution 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.