Defined Benefits

9 Months Ended

Sep. 30, 2011

Notes To Financial Statements [Abstract]

Defined Benefits

9. Defined Benefits

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

Following are the net periodic defined benefit costs (credits) of the plans sponsored by the registrantsfor the periods ended September 30:

			Pension Benefits
			Three Months								Nine Months
			U.S.				U.K.				U.S.				U.K.
			2011		2010		2011		2010		2011		2010		2011		2010
PPL
Service cost			$	24	$	15	$	14	$	4	$	71	$	45	$	31	$	13
Interest cost				54		37		88		38		163		111		200		113
Expected return on plan assets				(61)		(43)		(103)		(51)		(184)		(131)		(243)		(150)
Amortization of:
		Prior service cost		6		5		1		1		18		15		3		3
		Actuarial (gain) loss		7				15		12		21		2		44		36
Net periodic defined benefit
	costs (credits) prior to
	termination benefits			30		14		15		4		89		42		35		15
Termination benefits (a)								45								47
Net periodic defined benefit
	costs (credits)		$	30	$	14	$	60	$	4	$	89	$	42	$	82	$	15
PPL Energy Supply
Service cost			$	1	$	1			$	4	$	3	$	3			$	13
Interest cost				1		2				38		5		5				113
Expected return on plan assets				(2)		(1)				(51)		(6)		(4)				(150)
Amortization of:
		Prior service cost								1								3
		Actuarial (gain) loss		1						12		2		1				36
Net periodic defined benefit
	costs (credits)		$	1	$	2			$	4	$	4	$	5			$	15

(a)       WPD Midlands recorded early retirement deficiency costs payable under applicable pension plans related to employees leaving the WPD Midlands companies. See Note 8 for additional information.

		Pension Benefits
		Three Months				Nine Months
		2011		2010		2011		2010
		Successor		Predecessor		Successor		Predecessor
LKE
Service cost		$	6	$	6	$	18	$	16
Interest cost			16		16		50		48
Expected return on plan assets			(16)		(15)		(48)		(42)
Amortization of:
	Prior service cost		2		2		4		6
	Actuarial (gain) loss		6		5		17		15
Net periodic defined benefit costs (credits)		$	14	$	14	$	41	$	43
LG&E
Service cost						$	1	$	1
Interest cost		$	4	$	4		11		11
Expected return on plan assets			(4)		(4)		(13)		(12)
Amortization of:
	Prior service cost				1		1		2
	Actuarial (gain) loss		3		2		9		6
Net periodic defined benefit costs (credits)		$	3	$	3	$	9	$	8

		Other Postretirement Benefits
		Three Months				Nine Months
		2011		2010		2011		2010
PPL
Service cost		$	3	$	2	$	9	$	6
Interest cost			9		6		25		20
Expected return on plan assets			(6)		(5)		(17)		(15)
Amortization of:
	Transition obligation				1		1		5
	Prior service cost								4
	Actuarial cost		1		2		4		4
Net periodic defined benefit costs (credits)		$	7	$	6	$	22	$	24

		Other Postretirement Benefits
		Three Months				Nine Months
		2011		2010		2011		2010
		Successor		Predecessor		Successor		Predecessor
LKE
Service cost		$	1	$	1	$	3	$	3
Interest cost			3		3		8		8
Expected return on plan assets			(1)		(1)		(3)		(2)
Amortization of:
	Transition obligation				1		1		1
	Prior service cost		1				2		1
Net periodic defined benefit costs (credits)		$	4	$	4	$	11	$	11

(PPL Energy Supply)

See Note 8 for information on PPL Energy Supply's January 2011 distribution of its membership interest in PPL Global to its parent, PPL Energy Funding, which included associated accrued pension obligations.

(PPL Energy Supply and PPL Electric)

In addition to the specific plans it sponsors, PPL Energy Supply and its subsidiaries are allocated costs of PPL Services- sponsored defined benefit plans, which management believes are reasonable, based on their participation in those plans. PPL Electric does not directly sponsor any defined benefit plans. PPL Electric is allocated costs of PPL Services-sponsored defined benefit plans, which management believes are reasonable, based on its participation in those plans. PPL Services allocated the following net periodic benefit costs to PPL Energy Supply and PPL Electric, including amountsapplied to accounts that are further distributed between capital and expense for the periods ended September 30.

	Three Months				Nine Months
	2011		2010		2011		2010
PPL Energy Supply	$	8	$	7	$	23	$	25
PPL Electric		6		7		18		21

(LG&E and KU)

In addition to the specific plan it sponsors, LG&E is allocated costsof LKE-sponsored defined benefit plans,which management believes are reasonable,based on its participation in those plans.KU does not directly sponsor any defined benefit plans. KUis allocated costs of LKE-sponsored defined benefit plans, which management believes are reasonable,based on its participation in those plans. LKE allocated the following net periodic benefit costs to LG&E and KU, including amounts applied to accounts that are further distributed between capital and expense for the periods ended September 30.

	Three Months				Nine Months
	2011		2010		2011		2010
	Successor		Predecessor		Successor		Predecessor
LG&E	$	6	$	5	$	17	$	16
KU		9		8		27		25

Expected Cash Flows - U.K. Pension Plans

(PPL)

During 2011, WPD updated its expected pension contributions for 2011to $111 million from the $15 million expected contributions disclosed in PPL's 2010 Form 10-K. The updated contributions reflect $27 million of contributions required to fund the acquired WPD Midlands' plan and $69 million of increased PPL WW contributions to prepay future contribution requirements to fund pension plan deficits. As of September 30, 2011, WPD had contributed $102 million to its plans.

In addition, during 2011 WPD Midlands expects to contribute $43 million to fund the early retirement deficiency costs provided as part of the reorganization of WPD Midlands. See Note 8 for additional information.

Health Care Reform(PPL, PPL Energy Supply,PPL Electric, LKE, LG&E and KU)

In March 2010, Health Care Reform was signed into law. Many provisions of Health Care Reform do not take effect for an extended period of time, and most will require the publication of implementing regulations and/or issuance of program guidelines.

Beginning in 2013, provisions within Health Care Reform eliminated the tax deductibility of retiree health care costs to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D Coverage. As a result, in the first quarter of 2010, PPL and its subsidiaries recorded the following adjustments and will continue to monitor the potential impact of any changes to the existing provisions and implementation guidance related to Health Care Reform on their benefit programs.

(PPL, PPL Energy Supply, PPL Electric)

PPL decreased deferred tax assets by $13 million, increased regulatory assets by $9 million, increased deferred tax liabilities by $4 million and recorded income tax expense of $8 million;

PPL Energy Supply decreased deferred tax assets by $5 million and recorded income tax expense of $5 million; and

PPL Electric decreased deferred tax assets by $5 million, increased regulatory assets by $9 million and increased deferred tax liabilities by $4 million.

(LKE, LG&E and KU)

       LKEand KU recorded insignificant amounts as a result of this enactment. LG&E was not impacted.