Utility Rate Regulation (Tables)

6 Months Ended

Jun. 30, 2021

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
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	—	$	46	$	—	$	—
Gas supply clause	11		4		—		—
Smart meter rider	20		17		20		17
Transmission formula rate	21		15		21		15
Gas line tracker	7		4		—		—
Storm costs	4		7		4		7
Generation formula rate	3		2		—		—
Other	3		4		—		1
Total current regulatory assets	$	69	$	99	$	45	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	550	$	570	$	283	$	290
Storm costs	12		17		—		—
Unamortized loss on debt	26		30		5		8
Interest rate swaps	20		23		—		—
Terminated interest rate swaps	73		75		—		—
Accumulated cost of removal of utility plant	234		240		234		240
AROs	307		300		—		—
Plant outage costs	57		—		—		—
Other	2		7		—		3
Total noncurrent regulatory assets	$	1,281	$	1,262	$	522	$	541

	PPL				PPL Electric
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	17	$	21	$	17	$	21
Transmission service charge	27		1		27		1
Environmental cost recovery	4		4		—		—
Universal service rider	15		22		15		22
Fuel adjustment clause	5		5		—		—
TCJA customer refund	17		11		17		11
Storm damage expense rider	6		6		6		6
Act 129 compliance rider	5		7		5		7
Economic relief billing credit (b)	50		—		—		—
Challenge to transmission formula rate return on equity reserve (a)	51		—		51		—
Other	1		2		—		—
Total current regulatory liabilities	$	198	$	79	$	138	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	671	$	653	$	—	$	—
Power purchase agreement - OVEC	39		43		—		—
Net deferred taxes	1,624		1,690		545		560
Defined benefit plans	68		60		23		18
Terminated interest rate swaps	64		66		—		—
Other	2		18		—		—
Total noncurrent regulatory liabilities	$	2,468	$	2,530	$	568	$	578

	LG&E				KU
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Current Regulatory Assets:
Gas supply clause	$	11	$	4	$	—	$	—
Gas line tracker	7		4		—		—
Plant outage costs	—		12		—		34
Generation formula rate	—		—		3		2
Other	3		3		—		—
Total current regulatory assets	$	21	$	23	$	3	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	167	$	174	$	100	$	106
Storm costs	8		11		4		6
Unamortized loss on debt	13		13		8		9
Interest rate swaps	20		23		—		—
Terminated interest rate swaps	43		44		30		31
AROs	86		85		221		215
Plant outage costs	16		—		41		—
Other	1		1		1		3
Total noncurrent regulatory assets	$	354	$	351	$	405	$	370

	LG&E				KU
	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	1	$	—	$	3	$	4
Fuel adjustment clause	1		—		4		5
Economic relief billing credit (b)	39		—		11		—
Other	—		—		1		2
Total current regulatory liabilities	$	41	$	—	$	19	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	282	$	274	$	389	$	379
Power purchase agreement - OVEC	27		30		12		13
Net deferred taxes	498		528		581		602
Defined benefit plans	1		—		45		42
Terminated interest rate swaps	32		33		32		33
Other	—		17		1		1
Total noncurrent regulatory liabilities	$	840	$	882	$	1,060	$	1,070

(a)See “Regulatory Matters - Federal Matters - Challenge to PPL Electric Transmission Formula Rate Return on Equity” below for further information.

(b)Represents regulatory liabilities to be returned to customers through June 30, 2022, as agreed to in the Kentucky rate case, in recognition of the economic impact of COVID-19. See "Rate Case Proceedings" below for additional information.