Utility Rate Regulation (Tables)

12 Months Ended

Dec. 31, 2021

Regulated Operations [Line Items]

Regulatory Assets and Liabilities

The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations at December 31:

	PPL				PPL Electric
	2021		2020		2021		2020
Current Regulatory Assets:
Plant outage costs	$	—	$	46	$	—	$	—
Gas supply clause	21		4		—		—
Smart meter rider	11		17		11		17
Transmission formula rate	6		15		6		15
Storm costs	—		7		—		7
Fuel adjustment clause	11		—		—		—
Other	15		10		5		1
Total current regulatory assets (a)	$	64	$	99	$	22	$	40
Noncurrent Regulatory Assets:
Defined benefit plans	$	523	$	570	$	256	$	290
Plant outage cost	54		—		—		—
Storm costs	11		17		—		—
Unamortized loss on debt	24		30		4		8
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	70		75		—		—
Accumulated cost of removal of utility plant	228		240		228		240
AROs	302		300		—		—
Other	6		7		—		3
Total noncurrent regulatory assets	$	1,236	$	1,262	$	488	$	541

	PPL				PPL Electric
	2021		2020		2021		2020
Current Regulatory Liabilities:
Generation supply charge	$	10	$	21	$	10	$	21
Transmission service charge	21		1		21		1
Universal service rider	17		22		17		22
TCJA customer refund	22		11		22		11
Act 129 compliance rider	10		7		10		7
Transmission formula rate return on equity (b)	73		—		73		—
Economic relief billing rate	27		—		—		—
Other	2		17		—		6
Total current regulatory liabilities	$	182	$	79	$	153	$	68
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	639	$	653	$	—	$	—
Power purchase agreement - OVEC	35		43		—		—
Net deferred taxes	1,591		1,690		531		560
Defined benefit plans	95		60		28		18
Terminated interest rate swaps	62		66		—		—
Other	—		18		—		—
Total noncurrent regulatory liabilities	$	2,422	$	2,530	$	559	$	578

	LG&E				KU
	2021		2020		2021		2020
Current Regulatory Assets:
Gas supply clause	$	21	$	4	$	—	$	—
Fuel adjustment clause	4		—		7		—
Gas line tracker	3		4		—		—
Generation formula rate	—		—		2		2
Plant outage costs	—		12		—		34
Other	5		3		—		—
Total current regulatory assets	$	33	$	23	$	9	$	36
Noncurrent Regulatory Assets:
Defined benefit plans	$	164	$	174	$	103	$	106
Storm costs	8		11		3		6
Unamortized loss on debt	12		13		8		9
Interest rate swaps	18		23		—		—
Terminated interest rate swaps	41		44		29		31
AROs	75		85		227		215
Plant outage costs	15		—		39		—
Other	4		1		2		3
Total noncurrent regulatory assets	$	337	$	351	$	411	$	370

	LG&E				KU
	2021		2020		2021		2020
Current Regulatory Liabilities:
Economic relief billing credit	$	21	$	—	$	6	$	—
Fuel adjustment clauses	—		—		—		5
Environmental cost recovery	—		—		—		4
Other	—		—		2		2
Total current regulatory liabilities	$	21	$	—	$	8	$	11
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	262	$	274	$	377	$	379
Power purchase agreement - OVEC	24		30		11		13
Net deferred taxes	491		528		569		602
Defined benefit plans	10		—		57		42
Terminated interest rate swaps	31		33		31		33
Other	—		17		—		1
Total noncurrent regulatory liabilities	$	818	$	882	$	1,045	$	1,070

(a)For PPL, these amounts are included in "Other current assets" on the Balance Sheets.

(b)See “Regulatory Matters - Federal Matters - PPL Electric Transmission Formula Rate Return on Equity” below for additional information.