Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Mar. 31, 2014
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Derivative Instruments And Hedging Activities [Line Items] |
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Commodity Price Risk (Non-trading) - Economic Activity - Pre-tax Gains (Losses) Associated with Economic Activity |
The unrealized gains (losses) for economic activity for the periods ended March 31 were as follows. | | | | | Three Months | | | | | | | | 2014 | | 2013 | Operating Revenues | | | | | | | | | | | | | | Unregulated wholesale energy | | | | | | | | $ | (789) | | $ | (822) | | Unregulated retail energy | | | | | | | | | (26) | | | (8) | Operating Expenses | | | | | | | | | | | | | | Fuel | | | | | | | | | (1) | | | (1) | | Energy purchases | | | | | | | | | 580 | | | 634 |
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Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts |
At March 31, 2014, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows. | | | | Volumes (a) | Commodity | | Unit of Measure | | 2014 (b) | | 2015 | | 2016 | | Thereafter | | | | | | | | | | | | Power | | MWh | | (27,112,584) | | (28,794,377) | | 3,496,447 | | 14,130,735 | Capacity | | MW-Month | | (14,918) | | (5,120) | | 501 | | 9 | Gas | | MMBtu | | 63,248,020 | | 14,120,116 | | 57,884,707 | | 25,814,197 | Coal | | Tons | | 25,000 | | | | | | | FTRs | | MW-Month | | 4,734 | | 1,705 | | | | | Oil | | Barrels | | 156,000 | | 436,233 | | 331,258 | | 279,060 |
(a) Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option. (b) Represents balance of the current year. |
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Fair Value and Balance Sheet Location of Derivative Instruments |
The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets. | | | | | | | March 31, 2014 | | December 31, 2013 | | | | | | | | Derivatives designated as | | Derivatives not designated | | Derivatives designated as | | Derivatives not designated | | | | | | | | hedging instruments | | as hedging instruments | | hedging instruments | | as hedging instruments | | | | | | | | Assets | | Liabilities | | Assets | | Liabilities | | Assets | | Liabilities | | Assets | | Liabilities | Current: | | | | | | | | | | | | | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest rate swaps (b) | | $ | 7 | | $ | 3 | | | | | $ | 4 | | $ | 82 | | | | | | | | $ | 4 | | | | Cross-currency swaps (b) | | | | | | 4 | | | | | | | | | | | $ | 4 | | | | | | | | | | Foreign currency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | contracts | | | | | | 18 | | | | | | 62 | | | | | | 16 | | | | | | 55 | | | | Commodity contracts | | | | | | | | $ | 1,080 | | | 1,211 | | | | | | | | $ | 860 | | | 750 | | | | | | Total current | | | 7 | | | 25 | | | 1,080 | | | 1,277 | | | 82 | | | 20 | | | 860 | | | 809 | Noncurrent: | | | | | | | | | | | | | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest rate swaps (b) | | | 2 | | | 4 | | | | | | 36 | | | 9 | | | | | | | | | 32 | | | | Cross-currency swaps (b) | | | | | | 51 | | | | | | | | | | | | 28 | | | | | | | | | | Foreign currency | | | | | | | | | | | | | | | | | | | | | | | | | | | | | contracts | | | | | | 6 | | | 5 | | | 37 | | | | | | 4 | | | | | | 31 | | | | Commodity contracts | | | | | | | | | 337 | | | 316 | | | | | | | | | 328 | | | 320 | | | | | | Total noncurrent | | | 2 | | | 61 | | | 342 | | | 389 | | | 9 | | | 32 | | | 328 | | | 383 | Total derivatives | | $ | 9 | | $ | 86 | | $ | 1,422 | | $ | 1,666 | | $ | 91 | | $ | 52 | | $ | 1,188 | | $ | 1,192 |
(a) Represents the location on the Balance Sheets. (b) Excludes accrued interest, if applicable. |
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Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet |
The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the three months ended March 31. | | | | | | | | | | | | | | 2014 | | 2013 | | | | | | | | | | | | | | | | | | Gain (Loss) | | | | | Gain (Loss) | | | | | | | | | | | | | | | | | | Recognized | | | | | Recognized | | | | | | | | | | | | | | | | | | in Income | | | | | in Income | | | | | | | | | | | | | | | on Derivative | | | | on Derivative | | | | | | | | | | | | Gain (Loss) | | (Ineffective | | Gain (Loss) | | (Ineffective | | | | | | | | | Location of | | Reclassified | | Portion and | | Reclassified | | Portion and | | | | | | Derivative Gain | | Gain (Loss) | | from AOCI | | Amount | | from AOCI | | Amount | | | | | | (Loss) Recognized in | | Recognized | | into Income | | Excluded from | | into Income | | Excluded from | Derivative | | OCI (Effective Portion) | | | in Income | | (Effective | | Effectiveness | | (Effective | | Effectiveness | Relationships | | 2014 | | 2013 | | on Derivative | | Portion) | | Testing) | | Portion) | | Testing) | Cash Flow Hedges: | | | | | | | | | | | | | | | | | | | | | | Interest rate swaps | | $ | (46) | | $ | 9 | | Interest expense | | $ | (5) | | $ | 2 | | $ | (5) | | | | | Cross-currency swaps | | | (25) | | | 73 | | Other income | | | | | | | | | | | | | | | | | | | | | | | | | (expense) - net | | | (29) | | | | | | 69 | | | | | Commodity contracts | | | | | | | | Unregulated | | | | | | | | | | | | | | | | | | | | | | | | | wholesale energy | | | 1 | | | | | | 67 | | $ | 1 | | | | | | | | | | | | Energy purchases | | | 7 | | | | | | (16) | | | | | | | | | | | | | | | Depreciation | | | 1 | | | | | | | | | | Total | | $ | (71) | | $ | 82 | | | | | $ | (25) | | $ | 2 | | $ | 115 | | $ | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | Net Investment Hedges: | | | | | | | | | | | | | | | | | | | | | | | | Foreign currency contracts | | $ | (4) | | $ | 16 | | | | | | | | | | | | | | | |
Derivatives Not Designated as | | Location of Gain (Loss) Recognized in | | | | | | | Hedging Instruments | | Income on Derivative | | 2014 | | 2013 | | | | | | | | | | Foreign currency contracts | | Other income (expense) - net | | $ | (24) | | $ | 119 | Interest rate swaps | | Interest expense | | | (2) | | | (2) | Commodity contracts | | Unregulated wholesale energy (a) | | | (3,044) | | | (706) | | | Unregulated retail energy | | | (64) | | | (7) | | | Fuel | | | (1) | | | 1 | | | Energy purchases (b) | | | 2,364 | | | 586 | | | Total | | $ | (771) | | $ | (9) | | | | | | | | | | Derivatives Not Designated as | | Location of Gain (Loss) Recognized as | | | | | | | Hedging Instruments | | Regulatory Liabilities/Assets | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory assets - noncurrent | | $ | (4) | | $ | 4 | | | | | | | | | | Derivatives Designated as | | Location of Gain (Loss) Recognized as | | | | | | | Cash Flow Hedges | | Regulatory Liabilities/Assets | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory liabilities - noncurrent | | | | | $ | 10 |
(a) 2014 includes significant realized and unrealized losses on physical and financial commodity sales contracts due to the unusually cold weather. (b) 2014 includes significant realized and unrealized gains on physical and financial commodity purchase contracts due to the unusually cold weather. |
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Derivative Positions Eligible for Offset with Related Cash Collateral |
The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | | | | | Assets | | Liabilities | | | | | | | | | Eligible for Offset | | | | | | | | Eligible for Offset | | | | | | | | | | | | | | | Cash | | | | | | | | | | | Cash | | | | | | | | | | | | Derivative | | Collateral | | | | | | | | Derivative | | Collateral | | | | | | | | | Gross | | Instruments | | Received | | Net | | Gross | | Instruments | | Pledged | | Net | March 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 | | Treasury Derivatives | | | 14 | | | 14 | | | | | | | | | 225 | | | 14 | | | 24 | | | 187 | Total | | $ | 1,431 | | $ | 1,282 | | $ | 8 | | $ | 141 | | $ | 1,752 | | $ | 1,282 | | $ | 118 | | $ | 352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 | | Treasury Derivatives | | | 91 | | | 61 | | | | | | 30 | | | 174 | | | 61 | | | 23 | | | 90 | Total | | $ | 1,279 | | $ | 973 | | $ | 7 | | $ | 299 | | $ | 1,244 | | $ | 973 | | $ | 24 | | $ | 247 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 |
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Credit Risk-Related Contingent Features |
At March 31, 2014, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows: | | | | | | PPL | | | | | | | | | | | PPL | | Energy Supply | | LKE | | LG&E | | | | | | | | | | | | | | | | Aggregate fair value of derivative instruments in a net liability | | | | | | | | | | | | | | position with credit risk-related contingent features | | $ | 339 | | $ | 168 | | $ | 27 | | $ | 27 | Aggregate fair value of collateral posted on these derivative instruments | | | 57 | | | 36 | | | 21 | | | 21 | Aggregate fair value of additional collateral requirements in the event of | | | | | | | | | | | | | | a credit downgrade below investment grade (a) | | | 363 | | | 209 | | | 7 | | | 7 |
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
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PPL Energy Supply LLC [Member]
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Derivative Instruments And Hedging Activities [Line Items] |
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Commodity Price Risk (Non-trading) - Economic Activity - Pre-tax Gains (Losses) Associated with Economic Activity |
The unrealized gains (losses) for economic activity for the periods ended March 31 were as follows. | | | | | Three Months | | | | | | | | 2014 | | 2013 | Operating Revenues | | | | | | | | | | | | | | Unregulated wholesale energy | | | | | | | | $ | (789) | | $ | (822) | | Unregulated retail energy | | | | | | | | | (26) | | | (8) | Operating Expenses | | | | | | | | | | | | | | Fuel | | | | | | | | | (1) | | | (1) | | Energy purchases | | | | | | | | | 580 | | | 634 |
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Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts |
At March 31, 2014, the net volumes of derivative (sales)/purchase contracts used in support of the various strategies discussed above were as follows. | | | | Volumes (a) | Commodity | | Unit of Measure | | 2014 (b) | | 2015 | | 2016 | | Thereafter | | | | | | | | | | | | Power | | MWh | | (27,112,584) | | (28,794,377) | | 3,496,447 | | 14,130,735 | Capacity | | MW-Month | | (14,918) | | (5,120) | | 501 | | 9 | Gas | | MMBtu | | 63,248,020 | | 14,120,116 | | 57,884,707 | | 25,814,197 | Coal | | Tons | | 25,000 | | | | | | | FTRs | | MW-Month | | 4,734 | | 1,705 | | | | | Oil | | Barrels | | 156,000 | | 436,233 | | 331,258 | | 279,060 |
(a) Volumes for option contracts factor in the probability of an option being exercised and may be less than the notional amount of the option. (b) Represents balance of the current year. |
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Fair Value and Balance Sheet Location of Derivative Instruments |
The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets. | | | | | | | March 31, 2014 | | December 31, 2013 | | | | | | | | Derivatives not designated | | Derivatives not designated | | | | | | | | as hedging instruments | | as hedging instruments | | | | | | | | Assets | | Liabilities | | Assets | | Liabilities | Current: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Commodity contracts | | $ | 1,080 | | $ | 1,211 | | $ | 860 | | $ | 750 | | | | | | Total current | | | 1,080 | | | 1,211 | | | 860 | | | 750 | Noncurrent: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Commodity contracts | | | 337 | | | 316 | | | 328 | | | 320 | | | | | | Total noncurrent | | | 337 | | | 316 | | | 328 | | | 320 | Total derivatives | | $ | 1,417 | | $ | 1,527 | | $ | 1,188 | | $ | 1,070 |
(a) Represents the location on the Balance Sheets. |
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Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet |
The following tables present the pre-tax effect of derivative instruments recognized in income or OCI for the three months ended March 31. | | | | | | | | | | | | | 2014 | | 2013 | | | | | | | | | | | | | | | | | Gain (Loss) | | | | | Gain (Loss) | | | | | | | | | | | | | | | | | | Recognized | | | | | Recognized | | | | | | | | | | | | | | | | | in Income | | | | | in Income | | | | | | | | | | | | | | | | | on Derivative | | | | | on Derivative | | | | | | | | | | | Gain (Loss) | | (Ineffective | | Gain (Loss) | | (Ineffective | | | | | | | | | Location of | | Reclassified | | Portion and | | Reclassified | | Portion and | | | | | | Derivative Gain | | | Gains (Losses) | | from AOCI | | Amount | | from AOCI | | Amount | | | | | | (Loss) Recognized in | | Recognized | | into Income | | Excluded from | | into Income | | Excluded from | Derivative | | OCI (Effective Portion) | | | in Income | | (Effective | | Effectiveness | | (Effective | | Effectiveness | Relationships | | 2014 | | 2013 | | on Derivative | | Portion) | | Testing) | | Portion) | | Testing) | Cash Flow Hedges: | | | | | | | | | | | | | | | | | | | | | | | Commodity contracts | | | | | | | | Unregulated | | | | | | | | | | | | | | | | | | | | | | | | | wholesale energy | | $ | 1 | | | | | $ | 67 | | $ | 1 | | | | | | | | | | | | Energy purchases | | | 7 | | | | | | (16) | | | | | | | | | | | | | | | Depreciation | | | 1 | | | | | | | | | | Total | | | | | | | | | | | $ | 9 | | | | | $ | 51 | | $ | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives Not Designated as | | Location of Gain (Loss) Recognized in | | | | | | | Hedging Instruments | | Income on Derivatives | | 2014 | | 2013 | | | | | | | | | | Commodity contracts | | Unregulated wholesale energy (a) | | $ | (3,044) | | $ | (706) | | | Unregulated retail energy | | | (64) | | | (7) | | | Fuel | | | (1) | | | 1 | | | Energy purchases (b) | | | 2,364 | | | 586 | | | Total | | $ | (745) | | $ | (126) |
(a) 2014 includes significant realized and unrealized losses on physical and financial commodity sales contracts due to the unusually cold weather. (b) 2014 includes significant realized and unrealized gains on physical and financial commodity purchase contracts due to the unusually cold weather. |
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Derivative Positions Eligible for Offset with Related Cash Collateral |
The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | | | | | Assets | | Liabilities | | | | | | | | | Eligible for Offset | | | | | | | | Eligible for Offset | | | | | | | | | | | | | | | Cash | | | | | | | | | | | Cash | | | | | | | | | | | | Derivative | | Collateral | | | | | | | | Derivative | | Collateral | | | | | | | | | Gross | | Instruments | | Received | | Net | | Gross | | Instruments | | Pledged | | Net | March 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 | | Treasury Derivatives | | | 14 | | | 14 | | | | | | | | | 225 | | | 14 | | | 24 | | | 187 | Total | | $ | 1,431 | | $ | 1,282 | | $ | 8 | | $ | 141 | | $ | 1,752 | | $ | 1,282 | | $ | 118 | | $ | 352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 | | Treasury Derivatives | | | 91 | | | 61 | | | | | | 30 | | | 174 | | | 61 | | | 23 | | | 90 | Total | | $ | 1,279 | | $ | 973 | | $ | 7 | | $ | 299 | | $ | 1,244 | | $ | 973 | | $ | 24 | | $ | 247 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 |
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Credit Risk-Related Contingent Features |
At March 31, 2014, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows: | | | | | | PPL | | | | | | | | | | | PPL | | Energy Supply | | LKE | | LG&E | | | | | | | | | | | | | | | | Aggregate fair value of derivative instruments in a net liability | | | | | | | | | | | | | | position with credit risk-related contingent features | | $ | 339 | | $ | 168 | | $ | 27 | | $ | 27 | Aggregate fair value of collateral posted on these derivative instruments | | | 57 | | | 36 | | | 21 | | | 21 | Aggregate fair value of additional collateral requirements in the event of | | | | | | | | | | | | | | a credit downgrade below investment grade (a) | | | 363 | | | 209 | | | 7 | | | 7 |
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
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LG And E And KU Energy LLC [Member]
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Derivative Instruments And Hedging Activities [Line Items] |
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Fair Value and Balance Sheet Location of Derivative Instruments |
The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. | | | | | | | March 31, 2014 | | December 31, 2013 | | | | | | | | Assets | | Liabilities | | Assets | | Liabilities | Current: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Interest rate swaps | | | | | $ | 4 | | | | | $ | 4 | | | | | | Total current | | | | | | 4 | | | | | | 4 | Noncurrent: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Interest rate swaps | | | | | | 36 | | | | | | 32 | | | | | | Total noncurrent | | | | | | 36 | | | | | | 32 | Total derivatives | | | | | $ | 40 | | | | | $ | 36 |
(a) Represents the location on the Balance Sheets. |
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Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet |
(LKE) The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the three months ended March 31. Derivatives Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory liabilities - noncurrent | | | | | $ | 10 |
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the three months ended March 31. Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Interest expense | | $ | (2) | | $ | (2) | | | | | | | | | | Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory assets - noncurrent | | $ | (4) | | $ | 4 |
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Derivative Positions Eligible for Offset with Related Cash Collateral |
The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | | | | | Assets | | Liabilities | | | | | | | | | Eligible for Offset | | | | | | | | Eligible for Offset | | | | | | | | | | | | | | | Cash | | | | | | | | | | | Cash | | | | | | | | | | | | Derivative | | Collateral | | | | | | | | Derivative | | Collateral | | | | | | | | | Gross | | Instruments | | Received | | Net | | Gross | | Instruments | | Pledged | | Net | March 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 | | Treasury Derivatives | | | 14 | | | 14 | | | | | | | | | 225 | | | 14 | | | 24 | | | 187 | Total | | $ | 1,431 | | $ | 1,282 | | $ | 8 | | $ | 141 | | $ | 1,752 | | $ | 1,282 | | $ | 118 | | $ | 352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 | | Treasury Derivatives | | | 91 | | | 61 | | | | | | 30 | | | 174 | | | 61 | | | 23 | | | 90 | Total | | $ | 1,279 | | $ | 973 | | $ | 7 | | $ | 299 | | $ | 1,244 | | $ | 973 | | $ | 24 | | $ | 247 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 |
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Credit Risk-Related Contingent Features |
At March 31, 2014, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows: | | | | | | PPL | | | | | | | | | | | PPL | | Energy Supply | | LKE | | LG&E | | | | | | | | | | | | | | | | Aggregate fair value of derivative instruments in a net liability | | | | | | | | | | | | | | position with credit risk-related contingent features | | $ | 339 | | $ | 168 | | $ | 27 | | $ | 27 | Aggregate fair value of collateral posted on these derivative instruments | | | 57 | | | 36 | | | 21 | | | 21 | Aggregate fair value of additional collateral requirements in the event of | | | | | | | | | | | | | | a credit downgrade below investment grade (a) | | | 363 | | | 209 | | | 7 | | | 7 |
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
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Louisville Gas And Electric Co [Member]
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Derivative Instruments And Hedging Activities [Line Items] |
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Fair Value and Balance Sheet Location of Derivative Instruments |
The following table presents the fair value and the location on the Balance Sheets of derivative instruments designated as cash flow hedges. The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments. | | | | | | | March 31, 2014 | | December 31, 2013 | | | | | | | | Assets | | Liabilities | | Assets | | Liabilities | Current: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Interest rate swaps | | | | | $ | 4 | | | | | $ | 4 | | | | | | Total current | | | | | | 4 | | | | | | 4 | Noncurrent: | | | | | | | | | | | | | | Price Risk Management | | | | | | | | | | | | | | | Assets/Liabilities (a): | | | | | | | | | | | | | | | | Interest rate swaps | | | | | | 36 | | | | | | 32 | | | | | | Total noncurrent | | | | | | 36 | | | | | | 32 | Total derivatives | | | | | $ | 40 | | | | | $ | 36 |
(a) Represents the location on the Balance Sheets. |
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Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet |
(LG&E) The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the three months ended March 31. Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory liabilities - noncurrent | | | | | $ | 5 |
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the three months ended March 31. Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Interest expense | | $ | (2) | | $ | (2) | | | | | | | | | | Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory assets - noncurrent | | $ | (4) | | $ | 4 |
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Derivative Positions Eligible for Offset with Related Cash Collateral |
The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged. | | | | | Assets | | Liabilities | | | | | | | | | Eligible for Offset | | | | | | | | Eligible for Offset | | | | | | | | | | | | | | | Cash | | | | | | | | | | | Cash | | | | | | | | | | | | Derivative | | Collateral | | | | | | | | Derivative | | Collateral | | | | | | | | | Gross | | Instruments | | Received | | Net | | Gross | | Instruments | | Pledged | | Net | March 31, 2014 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 | | Treasury Derivatives | | | 14 | | | 14 | | | | | | | | | 225 | | | 14 | | | 24 | | | 187 | Total | | $ | 1,431 | | $ | 1,282 | | $ | 8 | | $ | 141 | | $ | 1,752 | | $ | 1,282 | | $ | 118 | | $ | 352 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,417 | | $ | 1,268 | | $ | 8 | | $ | 141 | | $ | 1,527 | | $ | 1,268 | | $ | 94 | | $ | 165 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 40 | | | | | $ | 20 | | $ | 20 |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | PPL | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 | | Treasury Derivatives | | | 91 | | | 61 | | | | | | 30 | | | 174 | | | 61 | | | 23 | | | 90 | Total | | $ | 1,279 | | $ | 973 | | $ | 7 | | $ | 299 | | $ | 1,244 | | $ | 973 | | $ | 24 | | $ | 247 | | | | | | | | | | | | | | | | | | | | | | | | | | | | PPL Energy Supply | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Commodities | | $ | 1,188 | | $ | 912 | | $ | 7 | | $ | 269 | | $ | 1,070 | | $ | 912 | | $ | 1 | | $ | 157 |
LKE | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 | | | | | | | | | | | | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | | | | | | | | | | | | | Treasury Derivatives | | | | | | | | | | | | | | $ | 36 | | | | | $ | 20 | | $ | 16 |
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Credit Risk-Related Contingent Features |
At March 31, 2014, the effect of a decrease in credit ratings below investment grade on derivative contracts that contain credit risk-related contingent features and were in a net liability position is summarized as follows: | | | | | | PPL | | | | | | | | | | | PPL | | Energy Supply | | LKE | | LG&E | | | | | | | | | | | | | | | | Aggregate fair value of derivative instruments in a net liability | | | | | | | | | | | | | | position with credit risk-related contingent features | | $ | 339 | | $ | 168 | | $ | 27 | | $ | 27 | Aggregate fair value of collateral posted on these derivative instruments | | | 57 | | | 36 | | | 21 | | | 21 | Aggregate fair value of additional collateral requirements in the event of | | | | | | | | | | | | | | a credit downgrade below investment grade (a) | | | 363 | | | 209 | | | 7 | | | 7 |
(a) Includes the effect of net receivables and payables already recorded on the Balance Sheet. |
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Kentucky Utilities Co [Member]
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Derivative Instruments And Hedging Activities [Line Items] |
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Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet |
(KU) The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory liabilities for the three months ended March 31. Derivative Instruments | | Location of Gain (Loss) | | 2014 | | 2013 | | | | | | | | | | Interest rate swaps | | Regulatory liabilities - noncurrent | | | | | $ | 5 |
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