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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
3. Revenue from Contracts with Customers

(All Registrants)

See Note 3 in the Registrants' 2021 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 March 31.
2022 Three Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$1,782 $775 $493 $525 
   Revenues derived from:
Alternative revenue programs (b)(27)(36)6 3 
Other (c)(7)(4)(2)(1)
Revenues from Contracts with Customers$1,748 $735 $497 $527 
2021 Three Months
PPLPPL ElectricLG&EKU
Operating Revenues (a)$1,498 $605 $428 $469 
   Revenues derived from:
Alternative revenue programs (b)24 22 — 2 
Other (c)(6)— (3)(3)
Revenues from Contracts with Customers$1,516 $627 $425 $468 

(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. See Note 2 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. 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. For PPL Electric, the three months ended March 31, 2022, includes $44 million related to the amortization of the regulatory liability recorded in 2021 for a reduction in the transmission formula rate return on equity that is reflected in rates in 2022. The three months ended March 31, 2021, included a $27 million revenue reduction recorded as a result of the challenge to the transmission formula rate return on equity. See Note 6 for additional information.
(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 March 31.
2022 Three Months
ResidentialCommercialIndustrialOther (a)Wholesale - municipalityWholesale - other (b)TransmissionRevenues from Contracts with Customers
PPL
PA Regulated$453 $108 $15 $12 $— $— $147 $735 
KY Regulated478 270 154 83 6 19 — 1,010 
Corp and Other— — — 3 — — — 3 
Total PPL$931 $378 $169 $98 $6 $19 $147 $1,748 
PPL Electric$453 $108 $15 $12 $— $— $147 $735 
LG&E$246 $146 $45 $39 $— $21 $— $497 
KU$232 $124 $109 $44 $6 $12 $— $527 
2021 Three Months
ResidentialCommercialIndustrialOther (a)Wholesale - municipalityWholesale - other (b)TransmissionRevenues from Contracts with Customers
PPL
PA Regulated$361 $82 $12 $12 $— $— $160 $627 
KY Regulated413 231 140 71 6 20 — 881 
Corp and Other— — — 8 — — — 8 
Total PPL$774 $313 $152 $91 $6 $20 $160 $1,516 
PPL Electric$361 $82 $12 $12 $— $— $160 $627 
LG&E$205 $121 $46 $34 $— $19 $— $425 
KU$208 $110 $94 $37 $6 $13 $— $468 

(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 2021 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 March 31.
Three Months
20222021
PPL$7 $2 
PPL Electric5 1 
LG&E1 — 
KU1 1 

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, 2021
$42 $25 $6 $6 
Contract liabilities at March 31, 2022
33 17 4 5 
Revenue recognized during the three months ended March 31, 2022 that was included in the contract liability balance at December 31, 2021
22 10 6 6 
Contract liabilities at December 31, 2020
$40 $23 $5 $6 
Contract liabilities at March 31, 2021
33 16 5 5 
Revenue recognized during the three months ended March 31, 2021 that was included in the contract liability balance at December 31, 2020
21 9 5 6 

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 generally recognized as revenue ratably over the quarterly billing period. Payments received in excess of revenues earned to date are recognized as revenue as services are delivered in subsequent periods.

At March 31, 2022, PPL had $46 million of performance obligations attributable to Corporate and Other that have not been satisfied. Of this amount, PPL expects to recognize approximately $30 million within the next 12 months.