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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
4. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in PPL's 2020 Form 10-K for a discussion of the principal activities from which the Registrants and PPL’s segments generate their revenues.

The following tables reconcile "Operating Revenues" included in each Registrant's Statement of Income with revenues generated from contracts with customers for the periods ended June 30.
2021 Three Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$1,288 $537 $342 $411 
   Revenues derived from:
Alternative revenue programs (b)19 24 (1)(4)
Other (c)(5)— (2)(3)
Revenues from Contracts with Customers$1,302 $561 $339 $404 
2020 Three Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$1,263 $554 $322 $388 
   Revenues derived from:
Alternative revenue programs (b)(8)(1)(1)(6)
Other (c)(5)(1)(1)(3)
Revenues from Contracts with Customers$1,250 $552 $320 $379 
2021 Six Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$2,786 $1,142 $770 $880 
   Revenues derived from:
Alternative revenue programs (b)43 46 (1)(2)
Other (c)(11)— (5)(6)
Revenues from Contracts with Customers$2,818 $1,188 $764 $872 
2020 Six Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$2,703 $1,162 $729 $820 
   Revenues derived from:
Alternative revenue programs (b)(11)(1)(4)(6)
Other (c)(13)(3)(4)(6)
Revenues from Contracts with Customers$2,679 $1,158 $721 $808 

(a)PPL Electric represents revenues from external customers reported by the Pennsylvania Regulated segment and LG&E and KU, net of intercompany power sales and transmission revenues, represent revenues from external customers reported by the Kentucky Regulated segment. Kentucky Regulated segment revenues from contracts with customers were $731 million and $1,612 million for the three and six month periods ended June 30, 2021 and $689 million and $1,505 million for the three and six month periods ended June 30, 2020. See Note 3 for additional information.
(b)Alternative revenue programs include the transmission formula rate for PPL Electric, the ECR and DSM programs for LG&E and KU, the GLT program and gas supply clause incentive mechanism for LG&E, and the generation formula rate for KU. For PPL Electric, the three months and six months ended June 30, 2021 include a $24 million and $51 million reserve recorded as a result of a challenge to the transmission formula rate return on equity. See Note 7 for further information. This line item shows the over/under collection of these rate mechanisms with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts.
(c)Represents additional revenues outside the scope of revenues from contracts with customers, such as lease and other miscellaneous revenues.

The following tables show revenues from contracts with customers disaggregated by customer class for the periods ended June 30.
2021 Three Months
PPLPPL ElectricLG&EKU
Residential$567 $279 $144 $144 
Commercial297 83 107 107 
Industrial 154 13 43 98 
Other (a)93 13 31 39 
Wholesale - municipality5 — — 5 
Wholesale - other (b)13 — 14 11 
Transmission173 173 — — 
Revenues from Contracts with Customers$1,302 $561 $339 $404 
2020 Three Months
PPLPPL ElectricLG&EKU
Residential$583 $290 $149 $144 
Commercial274 74 100 100 
Industrial 134 12 38 84 
Other (a)83 12 28 34 
Wholesale - municipality3 — — 3 
Wholesale - other (b)9 — 5 14 
Transmission164 164 — — 
Revenues from Contracts with Customers$1,250 $552 $320 $379 
2021 Six Months
PPLPPL ElectricLG&EKU
Residential$1,341 $640 $349 $352 
Commercial610 165 228 217 
Industrial 306 25 89 192 
Other (a)184 25 65 76 
Wholesale - municipality11 — — 11 
Wholesale - other (b)33 — 33 24 
Transmission333 333 — — 
Revenues from Contracts with Customers$2,818 $1,188 $764 $872 
2020 Six Months
PPLPPL ElectricLG&EKU
Residential$1,297 $634 $336 $327 
Commercial586 155 224 207 
Industrial 278 20 83 175 
Other (a)170 26 56 72 
Wholesale - municipality8 — — 8 
Wholesale - other (b)17 — 22 19 
Transmission323 323 — — 
Revenues from Contracts with Customers$2,679 $1,158 $721 $808 

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses.
(b)Includes wholesale power and transmission revenues. LG&E and KU amounts include intercompany power sales and transmission revenues, which are eliminated upon consolidation at the Kentucky Regulated segment.

As discussed in Note 2 in PPL's 2020 Form 10-K, PPL segments its business by geographic location. Revenues from external customers for each segment/geographic location are reconciled to revenues from contracts with customers in the footnotes to the tables above.

Contract receivables from customers are primarily included in "Accounts receivable - Customer", "Unbilled revenues", and "Other noncurrent assets" on the Balance Sheets.

The following table shows the accounts receivable and unbilled revenues balances that were impaired for the periods ended June 30.
Three MonthsSix Months
2021202020212020
PPL$— $6 $2 $12 
PPL Electric— 5 1 9 
LG&E— — — 1 
KU— 1 1 2 

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.
PPLPPL ElectricLG&EKU
Contract liabilities at December 31, 2020
$40 $23 $5 $6 
Contract liabilities at June 30, 2021
31 16 5 5 
Revenue recognized during the six months ended June 30, 2021 that was included in the contract liability balance at December 31, 2020
24 11 5 6 
Contract liabilities at December 31, 2019
$37 $21 $5 $4 
Contract liabilities at June 30, 2020
30 16 4 5 
Revenue recognized during the six months ended June 30, 2020 that was included in the contract liability balance at December 31, 2019
21 9 5 4 

Contract liabilities result from recording contractual billings in advance for customer attachments to the Registrants' infrastructure and payments received in excess of revenues earned to date. Advanced billings for customer attachments are recognized as revenue ratably over the billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

At June 30, 2021, PPL had $48 million of performance obligations attributable to Corporate and Other that have not been satisfied. Of this amount, PPL expects to recognize approximately $42 million within the next 12 months.