Utility Rate Regulation (Tables)

12 Months Ended

Dec. 31, 2018

Regulated Operations [Line Items]

Regulatory Assets and Liabilities

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations at December 31:

	PPL				PPL Electric
	2018		2017		2018		2017
Current Regulatory Assets:
Environmental cost recovery	$	—	$	5	$	—	$	—
Generation formula rate	—		6		—		—
Gas supply clause	12		4		—		—
Smart meter rider	11		15		11		15
Plant outage costs	10		3		—		—
Other	3		1		—		1
Total current regulatory assets (a)	$	36	$	34	$	11	$	16
Noncurrent Regulatory Assets:
Defined benefit plans	$	963	$	880	$	558	$	504
Taxes recoverable through future rates	3		3		3		3
Storm costs	56		33		22		—
Unamortized loss on debt	45		54		22		29
Interest rate swaps	20		26		—		—
Terminated interest rate swaps	87		92		—		—
Accumulated cost of removal of utility plant	200		173		200		173
AROs	273		234		—		—
Act 129 compliance rider	19		—		19		—
Other	7		9		—		—
Total noncurrent regulatory assets	$	1,673	$	1,504	$	824	$	709

Current Regulatory Liabilities:
Generation supply charge	$	33	$	34	$	33	$	34
Transmission service charge	3		9		3		9
Environmental cost recovery	16		1		—		—
Universal service rider	27		26		27		26
Transmission formula rate	3		9		3		9
TCJA customer refund	20		—		3		—
Storm damage expense rider	5		8		5		8
Other	15		8		—		—
Total current regulatory liabilities	$	122	$	95	$	74	$	86

	PPL				PPL Electric
	2018		2017		2018		2017
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	674	$	677	$	—	$	—
Power purchase agreement - OVEC	59		68		—		—
Net deferred taxes	1,826		1,853		629		668
Defined benefit plans	37		27		5		—
Terminated interest rate swaps	72		74		—		—
TCJA customer refund	41		—		41		—
Other	5		5		—		—
Total noncurrent regulatory liabilities	$	2,714	$	2,704	$	675	$	668

	LKE				LG&E				KU
	2018		2017		2018		2017		2018		2017
Current Regulatory Assets:
Plant outage costs	$	10	$	3	$	7	$	3	$	3	$	—
Generation formula rate	—		6		—		—		—		6
Gas supply clause	12		4		12		4		—		—
Other	3		5		2		5		1		—
Total current regulatory assets	$	25	$	18	$	21	$	12	$	4	$	6
Noncurrent Regulatory Assets:
Defined benefit plans	$	405	$	376	$	249	$	234	$	156	$	142
Storm costs	34		33		20		18		14		15
Unamortized loss on debt	23		25		15		16		8		9
Interest rate swaps	20		26		20		26		—		—
Terminated interest rate swaps	87		92		51		54		36		38
AROs	273		234		75		61		198		173
Other	7		9		1		2		6		7
Total noncurrent regulatory assets	$	849	$	795	$	431	$	411	$	418	$	384

Current Regulatory Liabilities:
Environmental cost recovery	$	16	$	1	$	6	$	—	$	10	$	1
Fuel adjustment clauses	—		3		—		—		—		3
Gas line tracker	2		3		2		3		—		—
TCJA customer refund	17		—		7		—		10		—
Generation formula Rate	7		—		—		—		7		—
Other	6		2		2		—		4		2
Total current regulatory liabilities	$	48	$	9	$	17	$	3	$	31	$	6
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	674	$	677	$	279	$	282	$	395	$	395
Power purchase agreement - OVEC	59		68		41		47		18		21
Net deferred taxes	1,197		1,185		557		552		640		633
Defined benefit plans	32		27		—		—		32		27
Terminated interest rate swaps	72		74		36		37		36		37
Other	5		5		2		1		3		4
Total noncurrent regulatory liabilities	$	2,039	$	2,036	$	915	$	919	$	1,124	$	1,117

(a) For PPL, these amounts are included in "Other current assets" on the Balance Sheets.