Utility Rate Regulation (Tables)

12 Months Ended

Dec. 31, 2022

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
	2022		2021		2022		2021
Current Regulatory Assets:
Gas supply clause	$	41	$	21	$	—	$	—
Rate adjustment mechanism	96		—		—		—
Derivative Instruments	41		—		—		—
Smart meter rider	5		11		5		11
Universal service rider	3		—		3		—
Fuel adjustment clause	38		11		—		—
Other	34		21		5		11
Total current regulatory assets	$	258	$	64	$	13	$	22
Noncurrent Regulatory Assets:
Defined benefit plans	$	778	$	523	$	353	$	256
Plant outage cost	46		54		—		—
Net Metering	61		—		—		—
Environmental Cost recovery	102		—		—		—
Taxes recoverable through future rates	47		—		—		—
Storm costs	118		11		—		—
Unamortized loss on debt	21		24		3		4
Interest rate swaps	7		18		—		—
Terminated interest rate swaps	63		70		—		—
Accumulated cost of removal of utility plant	212		228		212		228
AROs	295		302		—		—
Other	69		6		—		—
Total noncurrent regulatory assets	$	1,819	$	1,236	$	568	$	488

	PPL				PPL Electric
	2022		2021		2022		2021
Current Regulatory Liabilities:
Generation supply charge	$	37	$	10	$	37	$	10
Transmission service charge	14		21		7		21
Universal service rider	—		17		—		17
TCJA customer refund	15		22		15		22
Act 129 compliance rider	14		10		14		10
Transmission formula rate return on equity (b)	—		73		—		73
Economic relief billing rate	—		27		—		—
Transmission formula rate	12		—		12		—
Rate adjustment mechanism	96		—		—		—
Energy efficiency	23		—		—		—
Other	27		2		—		—
Total current regulatory liabilities	$	238	$	182	$	85	$	153
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	950	$	639	$	—	$	—
Power purchase agreement - OVEC	26		35		—		—
Net deferred taxes	2,094		1,591		775		531
Defined benefit plans	187		95		45		28
Terminated interest rate swaps	60		62		—		—
Energy efficiency	32		—		—		—
Other	63		—		—		—
Total noncurrent regulatory liabilities	$	3,412	$	2,422	$	820	$	559

	LG&E				KU
	2022		2021		2022		2021
Current Regulatory Assets:
Gas supply clause	$	13	$	21	$	—	$	—
Gas line tracker	—		3		—		—
Generation formula rate	—		—		—		2
Fuel adjustment clause	9		4		29		7
Other	1		5		3		—
Total current regulatory assets	$	23	$	33	$	32	$	9
Noncurrent Regulatory Assets:
Defined benefit plans	$	209	$	164	$	140	$	103
Storm costs	7		8		3		3
Unamortized loss on debt	11		12		7		8
Interest rate swaps	7		18		—		—
Terminated interest rate swaps	37		41		26		29
AROs	76		75		219		227
Plant outage costs	12		15		34		39
Other	14		4		13		2
Total noncurrent regulatory assets	$	373	$	337	$	442	$	411

	LG&E				KU
	2022		2021		2022		2021
Current Regulatory Liabilities:
Economic relief billing credit	$	—	$	21	$	—	$	6
Other	7		—		6		2
Total current regulatory liabilities	$	7	$	21	$	6	$	8
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	287	$	262	$	389	$	377
Power purchase agreement - OVEC	18		24		8		11
Net deferred taxes	477		491		546		569
Defined benefit plans	21		10		56		57
Terminated interest rate swaps	30		31		30		31
Total noncurrent regulatory liabilities	$	833	$	818	$	1,029	$	1,045

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