Financing Activities (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Line Items]

Credit Facilities in Place at Period End

The following credit facilities were in place at:

	December 31, 2018									December 31, 2017
	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 (a) (c)	Jan. 2023	£	210	£	157	£	—	£	54	£	148	£	—
WPD (South West)
Syndicated Credit Facility (a) (c)	July 2021	245		—		—		245		—		—
WPD (East Midlands)
Syndicated Credit Facility (a) (c)	July 2021	300		38		—		262		180		—
WPD (West Midlands)
Syndicated Credit Facility (a) (c)	July 2021	300		—		—		300		120		—
Uncommitted Credit Facilities		130		—		4		126		—		4
Total U.K. Credit Facilities (b)		£	1,185	£	195	£	4	£	987	£	448	£	4
U.S.
PPL Capital Funding
Syndicated Credit Facility (c) (d)	Jan. 2023	$	950	$	—	$	669	$	281	$	—	$	230
Bilateral Credit Facility (c) (d)	Mar. 2019	100		—		15		85		—		18
Total PPL Capital Funding Credit Facilities		$	1,050	$	—	$	684	$	366	$	—	$	248
PPL Electric
Syndicated Credit Facility (c) (d)	Jan. 2023	$	650	$	—	$	1	$	649	$	—	$	1
LG&E
Syndicated Credit Facility (c) (d)	Jan. 2023	$	500	$	—	$	279	$	221	$	—	$	199
Term Loan Credit Facility (c) (e)	Oct. 2019	200		200		—		—		100		—
Total LG&E Credit Facilities		$	700	$	200	$	279	$	221	$	100	$	199
KU
Syndicated Credit Facility (c) (d)	Jan. 2023	$	400	$	—	$	235	$	165	$	—	$	45
Letter of Credit Facility (c) (d) (f)	Oct. 2020	198		—		198		—		—		198
Total KU Credit Facilities		$	598	$	—	$	433	$	165	$	—	$	243

(a) The facilities contain financial covenants to maintain an interest coverage ratio of not less than 3.0 times consolidated earnings before income taxes, depreciation and amortization and total net debt not in excess of 85% of its RAV, calculated in accordance with the credit facility.

(b) The WPD plc amounts borrowed at December 31, 2018 and 2017 included USD-denominated borrowings of $200 million for both periods, which bore interest at 3.17% and 2.17%. The unused capacity reflects the amount borrowed in GBP of £156 million as of the date borrowed. The WPD (East Midlands) amount borrowed at December 31, 2018 and December 31, 2017 was a GBP-denominated borrowing, which equated to $48 million and $244 million and bore interest at 1.12%. and 0.89%. The WPD (West Midlands) amount borrowed at December 31, 2017 was a GBP-denominated borrowing, which equated to $162 million and bore interest at 0.89%. At December 31, 2018, the unused capacity under the U.K. credit facilities was approximately $1.3 billion.

(c) Each company pays customary fees under its respective facility and borrowings generally bear interest at LIBOR-based rates plus an applicable margin.

(d) The facilities contain a financial covenant requiring debt to total capitalization not to exceed 70% for PPL Capital Funding, PPL Electric, LKE, LG&E and KU, as calculated in accordance with the facilities and other customary covenants. Additionally, as it relates to the syndicated and bilateral credit facilities and subject to certain conditions, PPL Capital Funding may request that the capacity of its facility expiring in March 2019 be increased by up to $30 million, LG&E and KU each may request up to a $100 million increase in its facility's capacity.

(e) LG&E entered into a term loan credit agreement in October 2017 whereby it may borrow up to $200 million. The outstanding borrowings at December 31, 2018 and December 31, 2017 bore interest at an average rate of 2.97% and 2.06%.

(f) KU's letter of credit facility agreement allows for certain payments under the letter of credit facility to be converted to loans rather than requiring immediate payment.

Commercial paper

The following commercial paper programs were in place at:

	December 31, 2018							December 31, 2017
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	2.82%	$	1,000	$	669	$	331	1.64%	$	230
PPL Electric		650		—		650			—
LG&E	2.94%	350		279		71		1.83%	199
KU	2.94%	350		235		115		1.97%	45
Total		$	2,350	$	1,183	$	1,167		$	474

Long-term Debt

Long-term Debt(All Registrants)

				December 31,
	Weighted-Average Rate (g)		Maturities (g)	2018			2017
PPL
U.S.
Senior Unsecured Notes	3.88	%	2020 - 2047	$	4,325		$	4,575
Senior Secured Notes/First Mortgage Bonds (a) (b) (c)	3.99	%	2019 - 2048	7,705			7,314
Junior Subordinated Notes	5.68	%	2067 - 2073	930			930
Term Loan Credit Facility	2.97	%	2019	200			100
Total U.S. Long-term Debt				13,160			12,919
U.K.
Senior Unsecured Notes (d)	5.13	%	2020 - 2040	6,471			6,351
Index-linked Senior Unsecured Notes (e)	1.45	%	2026 - 2056	1,063			1,012
Total U.K. Long-term Debt (f)				7,534			7,363
Total Long-term Debt Before Adjustments				20,694			20,282
Fair market value adjustments				16			21
Unamortized premium and (discount), net (e)				9			14
Unamortized debt issuance costs				(120		)	(122		)
Total Long-term Debt				20,599			20,195
Less current portion of Long-term Debt				530			348
Total Long-term Debt, noncurrent				$	20,069		$	19,847
PPL Electric
Senior Secured Notes/First Mortgage Bonds (a) (b)	4.22	%	2020 - 2048	$	3,739		$	3,339
Total Long-term Debt Before Adjustments				3,739			3,339
Unamortized discount				(18		)	(16		)
Unamortized debt issuance costs				(27		)	(25		)
Total Long-term Debt				3,694			3,298
Less current portion of Long-term Debt				—			—
Total Long-term Debt, noncurrent				$	3,694		$	3,298

				December 31,
	Weighted-Average Rate (g)		Maturities (g)	2018			2017
LKE
Senior Unsecured Notes	3.97	%	2020 - 2021	$	725		$	725
Term Loan Credit Facility	2.97	%	2019	200			100
First Mortgage Bonds (a) (c)	3.76	%	2019 - 2045	3,966			3,975
Long-term debt to affiliate	3.69	%	2026 - 2028	650			400
Total Long-term Debt Before Adjustments				5,541			5,200
Unamortized discount				(13		)	(14		)
Unamortized debt issuance costs				(26		)	(27		)
Total Long-term Debt				5,502			5,159
Less current portion of Long-term Debt				530			98
Total Long-term Debt, noncurrent				$	4,972		$	5,061
LG&E
Term Loan Credit Facility	2.97	%	2019	$	200		$	100
First Mortgage Bonds (a) (c)	3.58	%	2019 - 2045	1,624			1,624
Total Long-term Debt Before Adjustments				1,824			1,724
Unamortized discount				(4		)	(4		)
Unamortized debt issuance costs				(11		)	(11		)
Total Long-term Debt				1,809			1,709
Less current portion of Long-term Debt				434			98
Total Long-term Debt, noncurrent				$	1,375		$	1,611
KU
First Mortgage Bonds (a) (c)	3.89	%	2019 - 2045	$	2,342		$	2,351
Total Long-term Debt Before Adjustments				2,342			2,351
Unamortized discount				(8		)	(9		)
Unamortized debt issuance costs				(13		)	(14		)
Total Long-term Debt				2,321			2,328
Less current portion of Long-term Debt				96			—
Total Long-term Debt, noncurrent				$	2,225		$	2,328

(a) Includes PPL Electric's senior secured and first mortgage bonds that are secured by the lien of PPL Electric's 2001 Mortgage Indenture, which covers substantially all electric distribution plant and certain transmission plant owned by PPL Electric. The carrying value of PPL Electric's property, plant and equipment was approximately $9.4 billion and $8.5 billion at December 31, 2018 and 2017.

Includes LG&E's first mortgage bonds that are secured by the lien of the LG&E 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of LG&E's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity and the storage and distribution of natural gas. The aggregate carrying value of the property subject to the lien was $5.1 billion and $4.7 billion at December 31, 2018 and 2017.

Includes KU's first mortgage bonds that are secured by the lien of the KU 2010 Mortgage Indenture which creates a lien, subject to certain exceptions and exclusions, on substantially all of KU's real and tangible personal property located in Kentucky and used or to be used in connection with the generation, transmission and distribution of electricity. The aggregate carrying value of the property subject to the lien was $6.3 billion and $6.0 billion at December 31, 2018 and 2017.

(b) Includes PPL Electric's series of senior secured bonds that secure its obligations to make payments with respect to each series of Pollution Control Bonds that were issued by the LCIDA and the PEDFA on behalf of PPL Electric. These senior secured bonds were issued in the same principal amount, contain payment and redemption provisions that correspond to and bear the same interest rate as such Pollution Control Bonds. These senior secured bonds were issued under PPL Electric's 2001 Mortgage Indenture and are secured as noted in (a) above. This amount includes $224 million of which PPL Electric is allowed to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, or term rate of at least one year and $90 million that may be redeemed, in whole or in part, at par beginning in October 2020, and are subject to mandatory redemption upon determination that the interest rate on the bonds would be included in the holders' gross income for federal tax purposes.

(c) Includes LG&E's and KU's series of first mortgage bonds that were issued to the respective trustees of tax-exempt revenue bonds to secure its respective obligations to make payments with respect to each series of bonds. The first mortgage bonds were issued in the same principal amounts, contain payment and redemption provisions that correspond to and bear the same interest rate as such tax-exempt revenue bonds. These first mortgage bonds were issued under the LG&E 2010 Mortgage Indenture and the KU 2010 Mortgage Indenture and are secured as noted in (a) above. The related tax-exempt revenue bonds were issued by various governmental entities, principally counties in Kentucky, on behalf of LG&E and KU. The related revenue bond documents allow LG&E and KU to convert the interest rate mode on the bonds from time to time to a commercial paper rate, daily rate, weekly rate, term rate of at least one year or, in some cases, an auction rate or a LIBOR index rate.

At December 31, 2018, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a term rate mode totaled $505 million for LKE, comprised of $391 million and $114 million for LG&E and KU respectively. At December 31, 2018, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a variable rate mode totaled $375 million for LKE, comprised of $147 million and $228 million for LG&E and KU respectively. These variable rate tax-exempt revenue bonds are subject to tender for purchase by LG&E and KU at the option of the holder and to mandatory tender for purchase by LG&E and KU upon the occurrence of certain events.

(d) Includes £225 million ($287 million at December 31, 2018) of notes that may be redeemed, in total but not in part, on December 21, 2026, at the greater of the principal value or a value determined by reference to the gross redemption yield on a nominated U.K. Government bond.

(e) The principal amount of the notes issued by WPD (South West), WPD (East Midlands) and WPD (South Wales) is adjusted based on changes in a specified index, as detailed in the terms of the related indentures. The adjustment to the principal amounts from 2017 to 2018 was an increase of approximately £26 million ($33 million) resulting from inflation. In addition, this amount includes £319 million ($407 million at December 31, 2018) of notes issued by WPD (South West) that may be redeemed, in total by series, on December 1, 2026, at the greater of the adjusted principal value and a make-whole value determined by reference to the gross real yield on a nominated U.K. government bond.

(f) Includes £5.3 billion ($6.7 billion at December 31, 2018) of notes that may be put by the holders to the issuer for redemption if the long-term credit ratings assigned to the notes are withdrawn by any of the rating agencies (Moody's or S&P) or reduced to a non-investment grade rating of Ba1 or BB+ or lower in connection with a restructuring event, which includes the loss of, or a material adverse change to, the distribution licenses under which the issuer operates.

(g) The table reflects principal maturities only, based on stated maturities or earlier put dates, and the weighted-average rates as of December 31, 2018.

Long-term Debt Maturities

The aggregate maturities of long-term debt, based on stated maturities or earlier put dates, for the periods 2019 through 2023 and thereafter are as follows:

	PPL		PPL Electric		LKE		LG&E		KU
2019	$	530	$	—	$	530	$	434	$	96
2020	1,266		100		975		—		500
2021	1,248		400		348		98		—
2022	1,274		474		—		—		—
2023	2,233		90		13		—		13
Thereafter	14,143		2,675		3,675		1,292		1,733
Total	$	20,694	$	3,739	$	5,541	$	1,824	$	2,342