Financing Activities

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Financing Activities

7. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and act as a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, PPL's arrangements listed below include the credit facilities and commercial paper programs of PPL Electric, LG&E and KU. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Electric's term loan agreement due March 2024 and borrowings under LG&E's and KU's term loan agreements due July 2024, which are reflected in "Long-term debt." The following credit facilities were in place at:

	September 30, 2022									December 31, 2021
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
PPL Capital Funding (a)
Syndicated Credit Facility	Dec. 2026	$	1,250	$	—	$	400	$	850	$	—	$	—
Bilateral Credit Facility	Mar. 2023	100		—		—		100		—		—
Bilateral Credit Facility (b)	Mar. 2023	100		—		60		40		—		15
Total PPL Capital Funding Credit Facilities		$	1,450	$	—	$	460	$	990	$	—	$	15
PPL Electric
Syndicated Credit Facility	Dec. 2026	$	650	$	—	$	1	$	649	$	—	$	1
Term Loan Credit Facility	Mar. 2024	250		250		—		—		—		—
Total PPL Electric Credit Facilities		$	900	$	250	$	1	$	649	$	—	$	1
LG&E
Syndicated Credit Facility	Dec. 2026	$	500	$	—	$	110	$	390	$	—	$	69
Term Loan Credit Facility	Jul. 2024	300		300		—		—		—		—
Total LG&E Credit Facilities		$	800	$	300	$	110	$	390	$	—	$	69
KU
Syndicated Credit Facility	Dec. 2026	$	400	$	—	$	—	$	400	$	—	$	—
Term Loan Credit Facility	Jul. 2024	300		300		—		—		—		—
Total KU Credit Facilities		$	700	$	300	$	—	$	400	$	—	$	—

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)Includes a $45 million letter of credit on behalf of RIE.

(PPL)

In March 2022, PPL Capital Funding amended and restated its two existing $50 million bilateral credit facilities to extend the termination dates from March 9, 2022 to March 6, 2023 and to increase the borrowing capacity under each facility to $100 million.

(PPL and LG&E)

In July 2022, LG&E entered into a $300 million term loan credit facility expiring in 2024. On July 29, 2022, LG&E borrowed $300 million under this facility at an initial interest rate of 3.23%. The per annum interest rate fluctuates based on the applicable secured overnight financing rate plus a spread. The proceeds are being used to repay short-term debt and for general corporate purposes.

(PPL and KU)

In July 2022, KU entered into a $300 million term loan credit facility expiring in 2024. On July 29, 2022, KU borrowed $300 million under this facility at an initial interest rate of 3.23%. The per annum interest rate fluctuates based on the applicable secured overnight financing rate plus a spread. The proceeds are being used to repay short-term debt and for general corporate purposes.

(PPL and PPL Electric)

In September 2022, PPL Electric entered into a $250 million term loan credit facility expiring in 2024. On September 16, 2022, PPL Electric borrowed $250 million under this facility at an initial interest rate of 3.77%. The per annum interest rate fluctuates based on the applicable secured overnight financing rate plus a spread. The proceeds were used to repay long-term debt.

(All Registrants)

PPL Capital Funding, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:

	September 30, 2022							December 31, 2021
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding (a)	2.50%	$	1,350	$	400	$	950		$	—
PPL Electric		650		—		650			—
LG&E (b)	2.51%	500		110		390		0.31%	69
KU (c)		400		—		400			—
Total		$	2,900	$	510	$	2,390		$	69

(a)PPL Capital Funding's obligations are fully and unconditionally guaranteed by PPL.

(b)In August 2022, LG&E increased the size of their commercial paper program to $500 million.

(c)In August 2022, KU increased the size of their commercial paper program to $400 million.

(PPL Electric, LG&E, and KU)

See Note 11 for discussion of intercompany borrowings.

Long-term Debt

(PPL and PPL Electric)

In August 2022, the Lehigh County Industrial Development Authority remarketed $108 million of Pollution Control Revenue Refunding Bonds (PPL Electric Utilities Corporation Project), 2016 Series B due 2027 previously issued on behalf of PPL Electric. The bonds were remarketed at a long-term rate and will bear interest at 2.63% through their maturity date of February 15, 2027.

In September 2022, the Lehigh County Industrial Development Authority remarketed $116 million of Pollution Control Revenue Refunding Bonds (PPL Electric Utilities Corporation Project), 2016 Series A due 2029 previously issued on behalf of PPL Electric. The bonds were remarketed at a long-term rate and will bear interest at 3.00% through their maturity date of September 1, 2029.

(PPL)

As a result of the acquisition of Narragansett Electric on May 25, 2022, PPL assumed approximately $1.5 billion of long-term debt. The following was outstanding at September 30, 2022:

	Weighted-Average Rate (a)		Maturities (a)	September 30, 2022
RIE
Senior Unsecured Notes	4.10	%	2028 - 2042	$	1,500
Senior Secured Notes/First Mortgage Bonds (b)	7.50	%	2025 - 2025	3
Total Long-term Debt before adjustments				1,503
Unamortized debt issuance costs				(6)
Total Long-term Debt				1,497
Less current portion of Long-term Debt				1
Total Long-term Debt, noncurrent				$	1,496

(a)The table reflects principal maturities only, based on stated maturities or earlier put dates, and the weighted-average rates as of September 30, 2022.

(b)Includes first mortgage bonds with an annual sinking fund requirement of $750,000 through maturity in 2025.

The aggregate maturities of long-term debt, based on stated maturities or earlier put dates, for the periods 2022 through 2026 and thereafter are as follows:

	RIE
2022	$	1
2023	1
2024	1
2025	1
2026	—
Thereafter	1,499
Total	$	1,503

Equity Securities

Share Repurchase

In August 2021, PPL's Board of Directors authorized share repurchases of up to $3 billion of PPL common shares. In 2021, PPL repurchased approximately $1 billion of PPL common shares. There were no share repurchases during the three and nine months ended September 30, 2022. Any additional amounts to be repurchased pursuant to this authority will depend on various factors, including PPL’s share price and market conditions. PPL may purchase shares on each trading day subject to market conditions and principles of best execution.

Dividends

In August 2022, PPL declared a quarterly cash dividend on its common stock, payable October 3, 2022, of 22.5 cents per share (equivalent to 90.0 cents per annum).

Preferred Stock

RIE has $3 million of certain issues of non-participating cumulative preferred stock outstanding that can be redeemed at the option of RIE. There are no mandatory redemption provisions on the cumulative preferred stock. Dividends on the cumulative preferred stock accrue quarterly and are prior to any dividends on the common stock of RIE. Pursuant to the preferred stock arrangement, as long as any preferred stock is outstanding, certain restrictions on payment of common stock dividends would come into effect if the common stock equity of RIE was, or by reason of payment of such dividends became, less than 25% of total capitalization of RIE. RIE was current on the preferred stock dividends and was in compliance with this covenant and accordingly, was not restricted as to the payment of common stock dividends under the foregoing provisions as of September 30, 2022.