Defined Benefits

9 Months Ended

Sep. 30, 2013

9. Defined Benefits

(All Registrants except PPL Electric and KU)

Certain net periodic defined benefit costs are applied to accounts that are further distributed between capital and expense, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL, PPL Energy Supply, LKE and LG&E for the periods ended September 30:

			Pension Benefits
			Three Months								Nine Months
			U.S.				U.K.				U.S.				U.K.
			2013		2012		2013		2012		2013		2012		2013		2012
PPL
Service cost			$	31	$	25	$	18	$	13	$	94	$	77	$	52	$	40
Interest cost				53		55		79		85		160		165		238		254
Expected return on plan assets				(73)		(65)		(115)		(115)		(220)		(195)		(346)		(340)
Amortization of:
		Prior service cost		6		6				1		17		18				3
		Actuarial (gain) loss		20		11		37		19		60		32		112		59
Net periodic defined benefit
	costs (credits)		$	37	$	32	$	19	$	3	$	111	$	97	$	56	$	16

		Pension Benefits
		Three Months				Nine Months
		2013		2012		2013		2012
PPL Energy Supply
Service cost		$	1	$	1	$	5	$	4
Interest cost			2		2		6		6
Expected return on plan assets			(2)		(2)		(7)		(7)
Amortization of:
	Actuarial (gain) loss		1		1		2		2
Net periodic defined benefit costs (credits)		$	2	$	2	$	6	$	5


LKE
Service cost		$	6	$	5	$	19	$	16
Interest cost			16		16		47		48
Expected return on plan assets			(20)		(17)		(61)		(52)
Amortization of:
	Prior service cost		1		2		3		4
	Actuarial (gain) loss		8		5		25		16
Net periodic defined benefit costs (credits)		$	11	$	11	$	33	$	32

LG&E
Service cost		$	1			$	2	$	1
Interest cost			3	$	4		10		11
Expected return on plan assets			(5)		(5)		(15)		(14)
Amortization of:
	Prior service cost		1		1		2		2
	Actuarial (gain) loss		3		3		10		8
Net periodic defined benefit costs (credits)		$	3	$	3	$	9	$	8

		Other Postretirement Benefits
		Three Months				Nine Months
		2013		2012		2013		2012
PPL
Service cost		$	4	$	3	$	11	$	9
Interest cost			7		7		21		23
Expected return on plan assets			(6)		(6)		(18)		(17)
Amortization of:
	Transition obligation								1
	Prior service cost				1				1
	Actuarial (gain) loss		1		1		4		3
Net periodic defined benefit costs (credits)		$	6	$	6	$	18	$	20


LKE
Service cost		$	2	$	1	$	4	$	3
Interest cost			2		3		6		7
Expected return on plan assets			(2)		(1)		(4)		(3)
Amortization of:
	Transition obligation								1
	Prior service cost		1				2		2
	Actuarial (gain) loss								(1)
Net periodic defined benefit costs (credits)		$	3	$	3	$	8	$	9

(All Registrants except PPL)

In addition to the specific defined benefit plans they sponsor, PPL Energy Supply subsidiaries are also allocated costs of defined benefit plans sponsored by PPL Services and LG&E is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. PPL Electric and KU do not independently sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. For the periods ended September 30, PPL Services allocated the following net periodic defined benefit costs to PPL Energy Supply subsidiaries and PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU.

	Three Months				Nine Months
	2013		2012		2013		2012

PPL Energy Supply	$	11	$	10	$	34	$	29
PPL Electric		9		8		27		23

LG&E				3			3			9			9
KU				4			4			13			13