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Available-for-Sale Securities

6 Months Ended

Jun. 30, 2011

PPL [Member]

Available-for-Sale Securities [Line Items]

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

PPL and its subsidiaries classify certain short-term investments, securities held by the NDT funds and auction rate securities as available-for-sale. Available-for-sale securities are carried on the Balance Sheets at fair value. Unrealized gains and losses on these securities are reported, net of tax, in OCI or are recognized currently in earnings when a decline in fair value is determined to be other-than-temporary. The specific identification method is used to calculate realized gains and losses.

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

						June 30, 2011								December 31, 2010
								Gross		Gross						Gross		Gross
						Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
						Cost		Gains		Losses		Fair Value		Cost		Gains		Losses	Fair Value
PPL
	Short-term investments
		- municipal debt securities												$	163				$	163
	NDT funds:
			Cash and cash equivalents			$	10					$	10		10					10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						25						25		25					25
	Total					$	478	$	196	$	1	$	673	$	624	$	182		$	806

PPL Energy Supply
	NDT funds:
			Cash and cash equivalents			$	10					$	10	$	10				$	10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						20						20		20					20
	Total					$	473	$	196	$	1	$	668	$	456	$	182		$	638


LKE and LG&E

	Short-term investments
		- municipal debt securities	$	163	$	163

There were no securities with credit losses at June 30, 2011 and December 31, 2010.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2011.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	11	$	69	$	66	$	80	$	226
Fair value		12		71		69		82		234

PPL Energy Supply
Amortized cost	$	11	$	69	$	66	$	75	$	221
Fair value		12		71		69		77		229

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2011		2010		2011		2010
PPL
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Other proceeds from sales						163
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. At December 31, 2010, these investments were reflected in "Short-term investments" on the Balance Sheet. During the six months ended June 30, 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

PPL Energy Supply [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

						June 30, 2011								December 31, 2010
								Gross		Gross						Gross		Gross
						Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
						Cost		Gains		Losses		Fair Value		Cost		Gains		Losses	Fair Value
PPL
	Short-term investments
		- municipal debt securities												$	163				$	163
	NDT funds:
			Cash and cash equivalents			$	10					$	10		10					10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						25						25		25					25
	Total					$	478	$	196	$	1	$	673	$	624	$	182		$	806

PPL Energy Supply
	NDT funds:
			Cash and cash equivalents			$	10					$	10	$	10				$	10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						20						20		20					20
	Total					$	473	$	196	$	1	$	668	$	456	$	182		$	638


LKE and LG&E

	Short-term investments
		- municipal debt securities	$	163	$	163

There were no securities with credit losses at June 30, 2011 and December 31, 2010.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2011.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	11	$	69	$	66	$	80	$	226
Fair value		12		71		69		82		234

PPL Energy Supply
Amortized cost	$	11	$	69	$	66	$	75	$	221
Fair value		12		71		69		77		229

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2011		2010		2011		2010
PPL
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Other proceeds from sales						163
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

LKE [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

						June 30, 2011								December 31, 2010
								Gross		Gross						Gross		Gross
						Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
						Cost		Gains		Losses		Fair Value		Cost		Gains		Losses	Fair Value
PPL
	Short-term investments
		- municipal debt securities												$	163				$	163
	NDT funds:
			Cash and cash equivalents			$	10					$	10		10					10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						25						25		25					25
	Total					$	478	$	196	$	1	$	673	$	624	$	182		$	806

PPL Energy Supply
	NDT funds:
			Cash and cash equivalents			$	10					$	10	$	10				$	10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						20						20		20					20
	Total					$	473	$	196	$	1	$	668	$	456	$	182		$	638


LKE and LG&E

	Short-term investments
		- municipal debt securities	$	163	$	163

There were no securities with credit losses at June 30, 2011 and December 31, 2010.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2011.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	11	$	69	$	66	$	80	$	226
Fair value		12		71		69		82		234

PPL Energy Supply
Amortized cost	$	11	$	69	$	66	$	75	$	221
Fair value		12		71		69		77		229

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2011		2010		2011		2010
PPL
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Other proceeds from sales						163
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

LGE [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

						June 30, 2011								December 31, 2010
								Gross		Gross						Gross		Gross
						Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
						Cost		Gains		Losses		Fair Value		Cost		Gains		Losses	Fair Value
PPL
	Short-term investments
		- municipal debt securities												$	163				$	163
	NDT funds:
			Cash and cash equivalents			$	10					$	10		10					10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						25						25		25					25
	Total					$	478	$	196	$	1	$	673	$	624	$	182		$	806

PPL Energy Supply
	NDT funds:
			Cash and cash equivalents			$	10					$	10	$	10				$	10
			Equity securities:
				U.S. large-cap			173	$	131				304		180	$	123			303
				U.S. mid/small-cap			68		56				124		67		52			119
			Debt securities:
				U.S. Treasury			74		5				79		71		4			75
				U.S. government sponsored
					agency		10						10		6		1			7
				Municipality			79		2	$	1		80		69					69
				Investment-grade corporate			35		2				37		31		2			33
				Other			3						3		1					1
			Receivables/payables, net				1						1		1					1
			Total NDT funds				453		196		1		648		436		182			618
	Auction rate securities						20						20		20					20
	Total					$	473	$	196	$	1	$	668	$	456	$	182		$	638


LKE and LG&E

	Short-term investments
		- municipal debt securities	$	163	$	163

There were no securities with credit losses at June 30, 2011 and December 31, 2010.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2011.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	11	$	69	$	66	$	80	$	226
Fair value		12		71		69		82		234

PPL Energy Supply
Amortized cost	$	11	$	69	$	66	$	75	$	221
Fair value		12		71		69		77		229

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2011		2010		2011		2010
PPL
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Other proceeds from sales						163
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	25	$	24	$	100	$	68
Gross realized gains (b)		6		4		23		9
Gross realized losses (b)		6		2		11		3

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

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