Utility Rate Regulation (Tables)

9 Months Ended

Sep. 30, 2011

Notes To Financial Statements [Abstract]

Regulatory Assets

The following tables provide information about the regulatory assets and liabilities of cost-based rate-regulated utility operations.

		PPL				PPL Electric
		September 30,		December 31,		September 30,		December 31,
		2011		2010		2011		2010
Current Regulatory Assets:
	Generation supply charge (a)			$	45			$	45
	Universal service rider	$	3		10	$	3		10
	Fuel adjustment clause		10		3
	Other		6		27				8
Total current regulatory assets		$	19	$	85	$	3	$	63
Noncurrent Regulatory Assets:
	Defined benefit plans	$	586	$	592	$	256	$	262
	Taxes recoverable through future rates		270		254		270		254
	Storm costs		132		129		6		7
	Unamortized loss on debt		113		61		80		27
	Interest rate swaps		66		43
	Accumulated cost of removal of utility plant (b)		46		35		46		35
	Coal contracts (c)		14		22
	Other		50		44		5		7
Total noncurrent regulatory assets		$	1,277	$	1,180	$	663	$	592

(a)       PPL Electric's generation supply charge recovery mechanism moved from an undercollected status at December 31, 2010 to an overcollected status at September 30, 2011, reflecting the impacts of changes in customer billing cycles, the timing of rate reconciliation filings, the levels of customers choosing alternative energy suppliers and other factors. Because customer rates are designed to collect the costs of PPL Electric's energy purchases to meet its PLR requirements, there is minimal impact on earnings.

(b)       The December 31, 2010 balance of accumulated cost of removal of utility plant was reclassified from "Accumulated depreciation - regulated utility plant" to noncurrent "Regulatory assets" on the Balance Sheets. These costs will continue to be included in future rate proceedings.

(c)       These regulatory assets and liabilities were recorded as offsets to certain intangible assets and liabilities that were recorded at fair value upon the acquisition of LKE.

Regulatory Liabilities

Current Regulatory Liabilities:
	Coal contracts (c)	$	12	$	46
	Generation supply charge (a)		37			$	37
	ECR		8		12
	PURTA tax		3		10		3	$	10
	DSM		10		10
	Transmission service charge		1		8		1		8
	Other		12		23		5
Total current regulatory liabilities		$	83	$	109	$	46	$	18
Noncurrent Regulatory Liabilities:
	Accumulated cost of removal of utility plant	$	646	$	623
	Coal contracts (c)		188		213
	Power purchase agreement - OVEC (c)		118		124
	Net deferred tax assets		37		40
	Act 129 compliance rider		13		14	$	13	$	14
	Defined benefit plans		10		10
	Other		8		7
Total noncurrent regulatory liabilities		$	1,020	$	1,031	$	13	$	14