Financing Activities (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Line Items]

Credit Facilities in Place at Period End

The following credit facilities were in place at:

	December 31, 2019									December 31, 2018
	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)(b)(c)	Jan. 2023	£	210	£	155	£	—	£	55	£	157	£	—
WPD (South West)
Syndicated Credit Facility (a)(b)(c)	July 2021	245		40		—		205		—		—
WPD (East Midlands)
Syndicated Credit Facility (a)(b)(c)	July 2021	300		—		—		300		38		—
WPD (West Midlands)
Syndicated Credit Facility (a)(b)(c)	July 2021	300		48		—		252		—		—
Uncommitted Credit Facilities		100		—		4		96		—		4
Total U.K. Credit Facilities (b)		£	1,155	£	243	£	4	£	908	£	195	£	4
U.S.
PPL Capital Funding
Syndicated Credit Facility (c) (d)	Jan 2024	$	1,450			$	450	$	1,000	$	—	$	669
Bilateral Credit Facility (c) (d)	Mar 2020	100		—		15		85		—		15
Total PPL Capital Funding Credit Facilities		$	1,550	$	—	$	465	$	1,085	$	—	$	684
PPL Electric
Syndicated Credit Facility (c) (d)	Jan 2024	$	650	$	—	$	1	$	649	$	—	$	1

	December 31, 2019									December 31, 2018
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
LG&E
Syndicated Credit Facility (c) (d)	Jan 2024	$	500	$	—	$	238	$	262	$	—	$	279
Term Loan Credit Facility (c) (e)		—		—		—		—		200		—
Total LG&E Credit Facilities		$	500	$	—	$	238	$	262	$	200	$	279
KU
Syndicated Credit Facility (c) (d)	Jan 2024	$	400	$	—	$	150	$	250	$	—	$	235
Letter of Credit Facility (f)		—		—		—		—		—		198
Total KU Credit Facilities		$	400	$	—	$	150	$	250	$	—	$	433

(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, 2019 and 2018 included USD-denominated borrowings of $200 million for both periods, which bore interest at 2.52% and 3.17%. The WPD (South West) amount borrowed at December 31, 2019 was a GBP-denominated borrowing, which equated to $51 million and bore interest at 1.09%. The WPD (East Midlands) amount borrowed at December 31, 2018 was a GBP- denominated borrowing which equated to $48 million and bore interest at 1.12%. The WPD (West Midlands) amount borrowed at December 31, 2019 was a GBP-denominated borrowing, which equated to $62 million and bore interest at 1.11%. At December 31, 2019, the unused capacity under the U.K. credit facilities was approximately $1.2 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, LG&E and KU, as calculated in accordance with the facilities and other customary covenants. Additionally, subject to certain conditions, PPL Capital Funding may request that the capacity of its bilateral credit facility expiring in March 2020 be increased by up to $30 million and PPL Capital Funding, PPL Electric, LG&E and KU may each request up to a $250 million increase in its syndicated credit facility's capacity.

(e) LG&E entered into a $200 million term loan credit agreement in October 2017. All borrowings were repaid and the facility expired in 2019. The outstanding borrowings at December 31, 2018 bore interest at an average rate of 2.97%.

(f) KU's letter of credit facility was terminated in September 2019 in connection with the bond remarketings discussed below.

Commercial paper

The following commercial paper programs were in place at:

	December 31, 2019							December 31, 2018
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	2.13%	$	1,500	$	450	$	1,050	2.82%	$	669
PPL Electric		650		—		650			—
LG&E	2.07%	350		238		112		2.94%	279
KU	2.02%	350		150		200		2.94%	235
Total		$	2,850	$	838	$	2,012		$	1,183

Long-term Debt

Long-term Debt (All Registrants)

				December 31,
	Weighted-Average Rate (g)		Maturities (g)	2019			2018
PPL
U.S.
Senior Unsecured Notes	3.88	%	2020 - 2047	$	4,325		$	4,325
Senior Secured Notes/First Mortgage Bonds (a) (b) (c)	3.95	%	2020 - 2049	8,705			7,705
Junior Subordinated Notes	5.24	%	2067 - 2073	930			930
Term Loan Credit Facility			2019	—			200
Total U.S. Long-term Debt				13,960			13,160
U.K.
Senior Unsecured Notes (d)	4.97	%	2020 - 2040	6,874			6,471
Index-linked Senior Unsecured Notes (e)	1.45	%	2026 - 2056	1,104			1,063
Term Loan Credit Facility	2.18	%	2024 - 2024	64			—
Total U.K. Long-term Debt (f)				8,042			7,534
Total Long-term Debt Before Adjustments				22,002			20,694
Fair market value adjustments				12			16
Unamortized premium and (discount), net				5			9
Unamortized debt issuance costs				(126		)	(120		)
Total Long-term Debt				21,893			20,599
Less current portion of Long-term Debt				1,172			530
Total Long-term Debt, noncurrent				$	20,721		$	20,069
PPL Electric
Senior Secured Notes/First Mortgage Bonds (a) (b)	4.08	%	2021 - 2049	$	4,039		$	3,739
Total Long-term Debt Before Adjustments				4,039			3,739
Unamortized discount				(24		)	(18		)
Unamortized debt issuance costs				(30		)	(27		)
Total Long-term Debt				3,985			3,694
Less current portion of Long-term Debt				—			—
Total Long-term Debt, noncurrent				$	3,985		$	3,694
LKE
Senior Unsecured Notes	3.97	%	2020 - 2021	$	725		$	725
Term Loan Credit Facility				—			200
First Mortgage Bonds (a) (c)	3.84	%	2020 - 2049	4,666			3,966
Long-term debt to affiliate	3.69	%	2026 - 2028	650			650
Total Long-term Debt Before Adjustments				6,041			5,541
Unamortized premium				5			—
Unamortized discount				(12		)	(13		)
Unamortized debt issuance costs				(32		)	(26		)
Total Long-term Debt				6,002			5,502
Less current portion of Long-term Debt				975			530
Total Long-term Debt, noncurrent				$	5,027		$	4,972

				December 31,
	Weighted-Average Rate (g)		Maturities (g)	2019			2018
LG&E
Term Loan Credit Facility				$	—		$	200
First Mortgage Bonds (a) (c)	3.73	%	2025 - 2049	2,024			1,624
Total Long-term Debt Before Adjustments				2,024			1,824
Unamortized discount				(4		)	(4		)
Unamortized debt issuance costs				(15		)	(11		)
Total Long-term Debt				2,005			1,809
Less current portion of Long-term Debt				—			434
Total Long-term Debt, noncurrent				$	2,005		$	1,375
KU
First Mortgage Bonds (a) (c)	3.93	%	2020 - 2045	$	2,642		$	2,342
Total Long-term Debt Before Adjustments				2,642			2,342
Unamortized premium				5			—
Unamortized discount				(8		)	(8		)
Unamortized debt issuance costs				(16		)	(13		)
Total Long-term Debt				2,623			2,321
Less current portion of Long-term Debt				500			96
Total Long-term Debt, noncurrent				$	2,123		$	2,225

(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 of PPL Electric’s tangible distribution properties and certain of its tangible transmission properties located in Pennsylvania, subject to certain exceptions and exclusions. The carrying value of PPL Electric's property, plant and equipment was approximately $10.1 billion and $9.4 billion at December 31, 2019 and 2018.

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 $5.3 billion and $5.1 billion at December 31, 2019 and 2018.

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 $6.6 billion and $6.3 billion at December 31, 2019 and 2018.

(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, 2019, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a term rate mode totaled $700 million for LKE, comprised of $392 million and $308 million for LG&E and KU respectively. At December 31, 2019, the aggregate tax-exempt revenue bonds issued on behalf of LG&E and KU that were in a variable rate mode totaled $181 million for LKE, comprised of $148 million and $33 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 ($291 million at December 31, 2019) 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 2018 to 2019 was an increase of

approximately £20 million ($26 million) resulting from inflation. In addition, this amount includes £327 million ($423 million at December 31, 2019) 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 £5.7 billion ($7.4 billion at December 31, 2019) 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, 2019.

Long-term Debt Maturities

The aggregate maturities of long-term debt, based on stated maturities or earlier put dates, for the periods 2020 through 2024 and thereafter are as follows:

	PPL		PPL Electric		LKE		LG&E		KU
2020	$	1,169	$	—	$	975	$	—	$	500
2021	1,574		400		674		292		132
2022	1,274		474		—		—		—
2023	2,254		90		13		—		13
2024	932		—		—		—		—
Thereafter	14,799		3,075		4,379		1,732		1,997
Total	$	22,002	$	4,039	$	6,041	$	2,024	$	2,642