Utility Rate Regulation (Tables)

9 Months Ended

Sep. 30, 2019

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
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current Regulatory Assets:
Gas supply clause	$	10	$	12	$	—	$	—
Smart meter rider	13		11		13		11
Plant outage costs	17		10		—		—
Transmission service charge	8		—		8		—
Other	1		3		1		—
Total current regulatory assets (a)	$	49	$	36	$	22	$	11

	PPL				PPL Electric
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Noncurrent Regulatory Assets:
Defined benefit plans	$	937	$	963	$	553	$	558
Storm costs	42		56		16		22
Unamortized loss on debt	41		45		17		22
Interest rate swaps	25		20		—		—
Terminated interest rate swaps	83		87		—		—
Accumulated cost of removal of utility plant	211		200		211		200
AROs	304		273		—		—
Act 129 compliance rider	10		19		10		19
Other	5		10		—		3
Total noncurrent regulatory assets	$	1,658	$	1,673	$	807	$	824

	PPL				PPL Electric
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current Regulatory Liabilities:
Generation supply charge	$	22	$	33	$	22	$	33
Environmental cost recovery	12		16		—		—
Universal service rider	12		27		12		27
Fuel adjustment clause	13		—		—		—
TCJA customer refund	8		20		7		3
Storm damage expense rider	7		5		7		5
Generation formula rate	—		7		—		—
Other	5		14		—		6
Total current regulatory liabilities	$	79	$	122	$	48	$	74
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	674	$	674	$	—	$	—
Power purchase agreement - OVEC	53		59		—		—
Net deferred taxes	1,775		1,826		601		629
Defined benefit plans	54		37		10		5
Terminated interest rate swaps	69		72		—		—
TCJA customer refund (b)	43		41		43		41
Other	7		5		—		—
Total noncurrent regulatory liabilities	$	2,675	$	2,714	$	654	$	675

	LKE				LG&E				KU
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current Regulatory Assets:
Plant outage costs	$	17	$	10	$	11	$	7	$	6	$	3
Gas supply clause	10		12		10		12		—		—
Other	—		3		—		2		—		1
Total current regulatory assets	$	27	$	25	$	21	$	21	$	6	$	4

	LKE				LG&E				KU
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Noncurrent Regulatory Assets:
Defined benefit plans	$	384	$	405	$	233	$	249	$	151	$	156
Storm costs	26		34		16		20		10		14
Unamortized loss on debt	24		23		14		15		10		8
Interest rate swaps	25		20		25		20		—		—
Terminated interest rate swaps	83		87		48		51		35		36
AROs	304		273		87		75		217		198
Other	5		7		2		1		3		6
Total noncurrent regulatory assets	$	851	$	849	$	425	$	431	$	426	$	418

	LKE				LG&E				KU
	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current Regulatory Liabilities:
Environmental cost recovery	$	12	$	16	$	7	$	6	$	5	$	10
Fuel adjustment clause	13		—		3		—		10		—
TCJA customer refund	1		17		—		7		1		10
Generation formula rate	—		7		—		—		—		7
Other	5		8		2		4		3		4
Total current regulatory liabilities	$	31	$	48	$	12	$	17	$	19	$	31
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	674	$	674	$	279	$	279	$	395	$	395
Power purchase agreement - OVEC	53		59		37		41		16		18
Net deferred taxes	1,174		1,197		548		557		626		640
Defined benefit plans	44		32		1		—		43		32
Terminated interest rate swaps	69		72		34		36		35		36
Other	7		5		4		2		3		3
Total noncurrent regulatory liabilities	$	2,021	$	2,039	$	903	$	915	$	1,118	$	1,124

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

(b)

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 initial liability was recorded during the second quarter of 2018. A petition for the distribution method back to customers of this liability was proposed to the PUC on October 4, 2019. The petition is currently under review by the PUC and contingent upon PUC approval.