Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL)
	Three Months				Six Months
	2021		2020		2021		2020
Federal income tax on Income from Continuing Operations Before Income Taxes at statutory tax rate - 21%	$	(40)	$	41	$	15	$	96
Increase (decrease) due to:
State income taxes, net of federal income tax benefit (a)	(18)		11		(5)		24
Valuation allowance adjustments (a)	26		6		34		12
Impact of the U.K. Finance Acts on deferred tax balances (b)	383		(2)		383		(3)
Depreciation and other items not normalized	(2)		(2)		(4)		(4)
Amortization of excess deferred federal and state income taxes	(8)		(12)		(20)		(23)
Other	4		(2)		1		(1)
Total increase (decrease)	385		(1)		389		5
Total income tax expense (benefit)	$	345	$	40	$	404	$	101

(a)    In June 2021, PPL recorded a $25 million state deferred tax benefit on a net operating loss and an offsetting valuation allowance in connection with the loss on extinguishment associated with a tender offer to purchase and retire PPL Capital Funding's outstanding Senior Notes. See Note 8 for additional information on the tender offer.

(b)The U.K. Finance Act 2021, formally enacted on June 10, 2021, increased the U.K. corporation tax rate from 19% to 25%, effective April 1, 2023. The primary impact of the corporation tax rate increase was an increase in deferred tax liabilities of the U.K. utility business, which was sold on June 14, 2021, and a corresponding deferred tax expense of $383 million, which was recognized in continuing operations.

PPL Electric Utilities Corp [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(PPL Electric)
	Three Months				Six Months
	2021		2020		2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	27	$	33	$	59	$	67
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	10		12		22		25
Depreciation and other items not normalized	(2)		(2)		(4)		(4)
Amortization of excess deferred federal and state income taxes	(3)		(5)		(6)		(8)
Other	2		2		—		1
Total increase (decrease)	7		7		12		14
Total income tax expense (benefit)	$	34	$	40	$	71	$	81

Louisville Gas And Electric Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(LG&E)
	Three Months				Six Months
	2021		2020		2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	12	$	12	$	32	$	32
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	2		2		6		6
Amortization of excess deferred federal and state income taxes	(3)		(2)		(6)		(5)
Other	1		—		(1)		(2)
Total increase (decrease)	—		—		(1)		(1)
Total income tax expense (benefit)	$	12	$	12	$	31	$	31

Kentucky Utilities Co [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of income tax expense (benefit) for the periods ended June 30 are as follows.

(KU)
	Three Months				Six Months
	2021		2020		2021		2020
Federal income tax on Income Before Income Taxes at statutory tax rate - 21%	$	15	$	13	$	37	$	34
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		3		7		6
Amortization of excess deferred federal and state income taxes	(4)		(4)		(8)		(8)
Other	(1)		(1)		(2)		(1)
Total increase (decrease)	(2)		(2)		(3)		(3)
Total income tax expense (benefit)	$	13	$	11	$	34	$	31