Utility Rate Regulation (Tables)

9 Months Ended

Sep. 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
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Current Regulatory Assets:
Plant outage costs	$	—	$	46	$	—	$	—
Gas supply clause	12		4		—		—
Smart meter rider	15		17		15		17
Storm damage expense rider	4		—		4		—
Transmission formula rate	11		15		11		15
Gas line tracker	7		4		—		—
Storm costs	2		7		2		7
Generation formula rate	3		2		—		—
Other	6		4		—		1
Total current regulatory assets	$	60	$	99	$	32	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	555	$	570	$	274	$	290
Storm costs	12		17		—		—
Unamortized loss on debt	25		30		4		8
Interest rate swaps	19		23		—		—
Terminated interest rate swaps	71		75		—		—
Accumulated cost of removal of utility plant	232		240		232		240
AROs	312		300		—		—
Plant outage costs	55		—		—		—
Other	5		7		—		3
Total noncurrent regulatory assets	$	1,286	$	1,262	$	510	$	541

	PPL				PPL Electric
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Current Regulatory Liabilities:
Generation supply charge	$	11	$	21	$	11	$	21
Transmission service charge	26		1		26		1
Environmental cost recovery	—		4		—		—
Universal service rider	16		22		16		22
Fuel adjustment clause	—		5		—		—
TCJA customer refund	22		11		22		11
Storm damage expense rider	—		6		—		6
Act 129 compliance rider	7		7		7		7
Transmission formula rate return on equity reserve (a)	64		—		64		—
Economic relief billing credit (b)	38		—		—		—
Other	3		2		—		—
Total current regulatory liabilities	$	187	$	79	$	146	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	669	$	653	$	—	$	—
Power purchase agreement - OVEC	36		43		—		—
Net deferred taxes	1,609		1,690		539		560
Defined benefit plans	74		60		26		18
Terminated interest rate swaps	64		66		—		—
Other	—		18		—		—
Total noncurrent regulatory liabilities	$	2,452	$	2,530	$	565	$	578

	LG&E				KU
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Current Regulatory Assets:
Gas supply clause	$	12	$	4	$	—	$	—
Gas line tracker	7		4		—		—
Plant outage costs	—		12		—		34
Generation formula rate	—		—		3		2
Other	5		3		1		—
Total current regulatory assets	$	24	$	23	$	4	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	175	$	174	$	106	$	106
Storm costs	8		11		4		6
Unamortized loss on debt	13		13		8		9
Interest rate swaps	19		23		—		—
Terminated interest rate swaps	42		44		29		31
AROs	87		85		225		215
Plant outage costs	15		—		40		—
Other	3		1		2		3
Total noncurrent regulatory assets	$	362	$	351	$	414	$	370

	LG&E				KU
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Current Regulatory Liabilities:
Environmental cost recovery	$	—	$	—	$	—	$	4
Fuel adjustment clause	—		—		—		5
Economic relief billing credit (b)	29		—		9		—
Other	1		—		2		2
Total current regulatory liabilities	$	30	$	—	$	11	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	277	$	274	$	392	$	379
Power purchase agreement - OVEC	25		30		11		13
Net deferred taxes	495		528		575		602
Defined benefit plans	1		—		47		42
Terminated interest rate swaps	32		33		32		33
Other	—		17		—		1
Total noncurrent regulatory liabilities	$	830	$	882	$	1,057	$	1,070

(a)See “Regulatory Matters - Federal Matters - PPL Electric Transmission Formula Rate Return on Equity” below for additional 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 "Regulatory Matters – Kentucky Activities – Rate Case Proceedings" below for additional information.