Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments And Hedging Activities [Line Items]

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
		2015		2014
Operating Revenues
	Unregulated wholesale energy	$	(92)	$	(789)
	Unregulated retail energy		(13)		(26)
Operating Expenses
	Fuel				(1)
	Energy purchases		145		580

Commodity Volumes - Volumes of Derivative (Sales) Purchase Contracts

At March 31, 2015, 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	2015 (b)	2016	2017	Thereafter
Power	MWh	(30,874,062)	(8,521,382)	(248,329)	2,236,333
Capacity	MW-Month	(3,998)	(878)	6	3
Gas	MMBtu	157,995,389	87,545,701	13,742,416	20,314,625
FTRs	MW-Month	532
Oil	Barrels	300,328	387,429	257,483	60,000

(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.

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, 2015								December 31, 2014
						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)					$	160			$	5			$	94			$	5
			Cross-currency swaps (b)			$	1		2								3
			Foreign currency
				contracts			24			$	106		2	$	12			$	67
			Commodity contracts								988		904						1,079		1,024
					Total current		25		162		1,094		911		12		97		1,146		1,029
Noncurrent:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps (b)						23				47				14				43
			Cross-currency swaps (b)				48								29
			Foreign currency
				contracts			10				69		4		5				46		2
			Commodity contracts								310		259						239		193
					Total noncurrent		58		23		379		310		34		14		285		238
Total derivatives						$	83	$	185	$	1,473	$	1,221	$	46	$	111	$	1,431	$	1,267

(a)Represents the location on the Balance Sheets.

(b)Excludes accrued interest, if applicable.

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.

									2015			2014
											Gain (Loss)			Gain (Loss)
											Recognized			Recognized
											in Income			in Income
											on Derivative	Gain (Loss)		on Derivative
									Gain (Loss)		(Ineffective	Reclassified		(Ineffective
							Location of		Reclassified		Portion and	from AOCI		Portion and
			Derivative Gain				Gain (Loss)		from AOCI		Amount	into		Amount
			(Loss) Recognized in				Recognized		into Income		Excluded from	Income		Excluded from
Derivative			OCI (Effective Portion)					in Income	(Effective		Effectiveness	(Effective		Effectiveness
Relationships			2015		2014		on Derivative		Portion)		Testing)	Portion)		Testing)
Cash Flow Hedges:
	Interest rate swaps		$	(19)	$	(46)	Interest expense		$	(4)		$	(5)	$	2
	Cross-currency swaps			21		(25)	Interest expense			1
							Other income
								(expense) - net		17			(29)
	Commodity contracts						Unregulated
								wholesale energy		(2)			(1)
							Energy purchases			8			7
							Depreciation			1			1
							Discontinued operations						2
Total			$	2	$	(71)			$	21		$	(25)	$	2
Net Investment Hedges:
		Foreign currency contracts	$	16	$	(4)

Derivatives Not Designated as	Location of Gain (Loss) Recognized in
Hedging Instruments	Income on Derivative	2015		2014
Foreign currency contracts	Other income (expense) - net	$	88	$	(24)
Interest rate swaps	Interest expense		(2)		(2)
Commodity contracts	Unregulated wholesale energy (a)		(229)		(3,042)
	Unregulated retail energy		(39)		(64)
	Fuel		(3)		(1)
	Energy purchases (b)		196		2,364
	Discontinued operations				(2)
	Total	$	11	$	(771)
Derivatives Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	2015		2014
Interest rate swaps	Regulatory assets- noncurrent	$	(56)
Derivatives Not Designated as	Location of Gain (Loss) Recognized as
Hedging Instruments	Regulatory Liabilities/Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(4)	$	(4)

(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.

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, 2015
PPL
	Energy Commodities	$	1,298	$	990	$	11	$	297	$	1,163	$	990	$	49	$	124
	Treasury Derivatives		258		105				153		243		105		21		117
Total		$	1,556	$	1,095	$	11	$	450	$	1,406	$	1,095	$	70	$	241

LKE
	Treasury Derivatives	$	174	$	21	$	153
LG&E
	Treasury Derivatives	$	113	$	21	$	92
KU
	Treasury Derivatives	$	61	$		$	61

December 31, 2014
PPL
	Energy Commodities	$	1,318	$	1,060	$	10	$	248	$	1,217	$	1,060	$	58	$	99
	Treasury Derivatives		159		65				94		161		65		21		75
Total		$	1,477	$	1,125	$	10	$	342	$	1,378	$	1,125	$	79	$	174

LKE
	Treasury Derivatives	$	114	$	20	$	94
LG&E
	Treasury Derivatives	$	81	$	20	$	61
KU
	Treasury Derivatives	$	33			$	33

Credit Risk-Related Contingent Features

At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

		PPL			LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related
	contingent features	$	241		$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments			140			22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		128	(b)		10		10

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

(b)PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features.

LG And E And KU Energy LLC [Member]

Derivative Instruments And Hedging Activities [Line Items]

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, 2015			December 31, 2014
				Assets	Liabilities		Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	122		$	66

(a)Represents the location on the Balance Sheets.

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

					March 31, 2015			December 31, 2014
					Assets	Liabilities			Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps			$	5			$	5
				Total current			5				5
Noncurrent:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps				47				43
				Total noncurrent			47				43
Total derivatives						$	52			$	48

(a)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months endedMarch 31.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(56)

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.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	2015		2014
Interest rate swaps	Interest expense	$	(2)	$	(2)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(4)	$	(4)

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, 2015
PPL
	Energy Commodities	$	1,298	$	990	$	11	$	297	$	1,163	$	990	$	49	$	124
	Treasury Derivatives		258		105				153		243		105		21		117
Total		$	1,556	$	1,095	$	11	$	450	$	1,406	$	1,095	$	70	$	241

LKE
	Treasury Derivatives	$	174	$	21	$	153
LG&E
	Treasury Derivatives	$	113	$	21	$	92
KU
	Treasury Derivatives	$	61	$		$	61

December 31, 2014
PPL
	Energy Commodities	$	1,318	$	1,060	$	10	$	248	$	1,217	$	1,060	$	58	$	99
	Treasury Derivatives		159		65				94		161		65		21		75
Total		$	1,477	$	1,125	$	10	$	342	$	1,378	$	1,125	$	79	$	174

LKE
	Treasury Derivatives	$	114	$	20	$	94
LG&E
	Treasury Derivatives	$	81	$	20	$	61
KU
	Treasury Derivatives	$	33			$	33

Credit Risk-Related Contingent Features

At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

		PPL			LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related
	contingent features	$	241		$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments			140			22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		128	(b)		10		10

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

(b)PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features.

Louisville Gas And Electric Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

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, 2015			December 31, 2014
				Assets	Liabilities		Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	61		$	33

(a)Represents the location on the Balance Sheets.

(LKE and LG&E)

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.

					March 31, 2015			December 31, 2014
					Assets	Liabilities			Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps			$	5			$	5
				Total current			5				5
Noncurrent:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps				47				43
				Total noncurrent			47				43
Total derivatives						$	52			$	48

(a)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(28)

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.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Income on Derivatives	2015		2014
Interest rate swaps	Interest expense	$	(2)	$	(2)
	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(4)	$	(4)

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, 2015
PPL
	Energy Commodities	$	1,298	$	990	$	11	$	297	$	1,163	$	990	$	49	$	124
	Treasury Derivatives		258		105				153		243		105		21		117
Total		$	1,556	$	1,095	$	11	$	450	$	1,406	$	1,095	$	70	$	241

LKE
	Treasury Derivatives	$	174	$	21	$	153
LG&E
	Treasury Derivatives	$	113	$	21	$	92
KU
	Treasury Derivatives	$	61	$		$	61

December 31, 2014
PPL
	Energy Commodities	$	1,318	$	1,060	$	10	$	248	$	1,217	$	1,060	$	58	$	99
	Treasury Derivatives		159		65				94		161		65		21		75
Total		$	1,477	$	1,125	$	10	$	342	$	1,378	$	1,125	$	79	$	174

LKE
	Treasury Derivatives	$	114	$	20	$	94
LG&E
	Treasury Derivatives	$	81	$	20	$	61
KU
	Treasury Derivatives	$	33			$	33

Credit Risk-Related Contingent Features

At March 31, 2015, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:

		PPL			LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related
	contingent features	$	241		$	31	$	31
Aggregate fair value of collateral posted on these derivative instruments			140			22		22
Aggregate fair value of additional collateral requirements in the event of
	a credit downgrade below investment grade (a)		128	(b)		10		10

(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.

(b)PPL Energy Supply's credit rating is currently below investment grade. Amounts related to PPL Energy Supply represent net liability positions subject to further adequate assurance features.

Kentucky Utilities Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

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, 2015			December 31, 2014
				Assets	Liabilities		Assets	Liabilities
Current:
	Price Risk Management
		Assets/Liabilities (a):
			Interest rate swaps		$	61		$	33

(a)Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets for the three months ended March 31.

	Location of Gain (Loss) Recognized in
Derivative Instruments	Regulatory Assets	2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	(28)

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, 2015
PPL
	Energy Commodities	$	1,298	$	990	$	11	$	297	$	1,163	$	990	$	49	$	124
	Treasury Derivatives		258		105				153		243		105		21		117
Total		$	1,556	$	1,095	$	11	$	450	$	1,406	$	1,095	$	70	$	241

LKE
	Treasury Derivatives	$	174	$	21	$	153
LG&E
	Treasury Derivatives	$	113	$	21	$	92
KU
	Treasury Derivatives	$	61	$		$	61

December 31, 2014
PPL
	Energy Commodities	$	1,318	$	1,060	$	10	$	248	$	1,217	$	1,060	$	58	$	99
	Treasury Derivatives		159		65				94		161		65		21		75
Total		$	1,477	$	1,125	$	10	$	342	$	1,378	$	1,125	$	79	$	174