Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

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' 2023 Form 10-K for a discussion of the principal activities from which PPL Electric, LG&E and KU and PPL’s Pennsylvania Regulated, Rhode Island Regulated, and Kentucky Regulated 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.

	2024 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	2,304	$	770	$	476	$	525
Revenues derived from:
Alternative revenue programs (b)	7		(3)		2		5
Other (c)	(8)		(5)		(1)		(1)
Revenues from Contracts with Customers	$	2,303	$	762	$	477	$	529
	2023 Three Months
	PPL		PPL Electric		LG&E		KU
Operating Revenues (a)	$	2,415	$	891	$	474	$	499
Revenues derived from:
Alternative revenue programs (b)	36		1		1		—
Other (c)	(4)		(2)		(1)		(1)
Revenues from Contracts with Customers	$	2,447	$	890	$	474	$	498

(a)PPL includes $549 million for the three months ended March 31, 2024 and $565 million for the three months ended March 31, 2023 of revenues from external customers reported by the Rhode Island Regulated segment. 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)This line item shows the over/under collection of rate mechanisms deemed alternative revenue programs with over-collections of revenue shown as positive amounts in the table above and under-collections shown as negative amounts.

(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.

	Three Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL
2024
PA Regulated	$	426	$	106	$	12	$	13	$	—	$	—	$	205	$	762
KY Regulated	443		267		161		97		6		15		—		989
RI Regulated	261		78		4		161		—		—		47		551
Corp and Other	—		—		—		1		—		—		—		1
Total PPL	$	1,130	$	451	$	177	$	272	$	6	$	15	$	252	$	2,303
2023
PA Regulated	$	537	$	128	$	20	$	13	$	—	$	—	$	192	$	890
KY Regulated	443		274		164		60		7		11		—		959
RI Regulated	229		101		9		215		—		—		45		599
Corp and Other	—		—		—		(1)		—		—		—		(1)
Total PPL	$	1,209	$	503	$	193	$	287	$	7	$	11	$	237	$	2,447

	Three Months
	Residential		Commercial		Industrial		Other (a)		Wholesale - municipality		Wholesale - other (b)		Transmission		Revenues from Contracts with Customers
PPL Electric
2024	$	426	$	106	$	12	$	13	$	—	$	—	$	205	$	762
2023	$	537	$	128	$	20	$	13	$	—	$	—	$	192	$	890
LG&E
2024	$	218	$	138	$	47	$	52	$	—	$	22	$	—	$	477
2023	$	241	$	152	$	49	$	16	$	—	$	16	$	—	$	474
KU
2024	$	225	$	129	$	114	$	46	$	6	$	9	$	—	$	529
2023	$	202	$	123	$	115	$	44	$	7	$	7	$	—	$	498

(a)Primarily includes revenues from pole attachments, street lighting, other public authorities and other non-core businesses. The Rhode Island Regulated segment primarily includes open access tariff revenues, which are calculated on combined customer classes.

(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, 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
	2024		2023
PPL (a)	$	42	$	21
PPL Electric (a)	28		10
LG&E	1		1
KU	1		—

(a)    2024 includes amounts impaired related to PPL Electric's billing issues. See Note 6 for additional information.

The following table shows the balances and certain activity of contract liabilities resulting from contracts with customers.

	PPL		PPL Electric		LG&E		KU
Contract liabilities at December 31, 2023	$	43	$	29	$	6	$	7
Contract liabilities at March 31, 2024	30		20		5		5
Revenue recognized during the three months ended March 31, 2024 that was included in the contract liability balance at December 31, 2023	25		11		6		7
Contract liabilities at December 31, 2022	$	34	$	23	$	5	$	6
Contract liabilities at March 31, 2023	46		35		5		5
Revenue recognized during the three months ended March 31, 2023 that was included in the contract liability balance at December 31, 2022	17		6		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.