Regulatory Assets and Liabilities |
The following table provides information about the regulatory assets and liabilities of cost-based rate-regulated utility operations. | | | | | | | | | | | | | | | | | | PPL | | PPL Electric | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | Current Regulatory Assets: | | | | | | | | Environmental cost recovery | $ | — |
| | $ | 5 |
| | $ | — |
| | $ | — |
| Generation formula rate | 2 |
| | 6 |
| | — |
| | — |
| Smart meter rider | 15 |
| | 15 |
| | 15 |
| | 15 |
| Plant outage costs | 6 |
| | 3 |
| | — |
| | — |
| Other | 5 |
| | 5 |
| | 1 |
| | 1 |
| Total current regulatory assets (a) | $ | 28 |
| | $ | 34 |
| | $ | 16 |
| | $ | 16 |
| | | | | | | | | Noncurrent Regulatory Assets: | | | | | | | | Defined benefit plans | $ | 866 |
| | $ | 880 |
| | $ | 496 |
| | $ | 504 |
| Taxes recoverable through future rates | 3 |
| | 3 |
| | 3 |
| | 3 |
| Storm costs (b) | 47 |
| | 33 |
| | 17 |
| | — |
| Unamortized loss on debt | 51 |
| | 54 |
| | 27 |
| | 29 |
| Interest rate swaps | 22 |
| | 26 |
| | — |
| | — |
| Terminated interest rate swaps | 91 |
| | 92 |
| | — |
| | — |
| Accumulated cost of removal of utility plant | 176 |
| | 173 |
| | 176 |
| | 173 |
| AROs | 247 |
| | 234 |
| | — |
| | — |
| Act 129 compliance rider | 7 |
| | — |
| | 7 |
| | — |
| Other | 9 |
| | 9 |
| | — |
| | — |
| Total noncurrent regulatory assets | $ | 1,519 |
| | $ | 1,504 |
| | $ | 726 |
| | $ | 709 |
|
| | | | | | | | | | | | | | | | | | PPL | | PPL Electric | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | Current Regulatory Liabilities: | | | | | | | | Generation supply charge | $ | 33 |
| | $ | 34 |
| | $ | 33 |
| | $ | 34 |
| Transmission service charge | 16 |
| | 9 |
| | 16 |
| | 9 |
| Environmental cost recovery | 18 |
| | 1 |
| | — |
| | — |
| Universal service rider | 24 |
| | 26 |
| | 24 |
| | 26 |
| Transmission formula rate | 10 |
| | 9 |
| | 10 |
| | 9 |
| Fuel adjustment clause | 2 |
| | 3 |
| | — |
| | — |
| TCJA bill credit (c) | 34 |
| | — |
| | — |
| | — |
| Storm damage expense rider | 12 |
| | 8 |
| | 12 |
| | 8 |
| Other | 9 |
| | 5 |
| | — |
| | — |
| Total current regulatory liabilities | $ | 158 |
| | $ | 95 |
| | $ | 95 |
| | $ | 86 |
| | | | | | | | | Noncurrent Regulatory Liabilities: | | | | | | | | Accumulated cost of removal of utility plant | $ | 677 |
| | $ | 677 |
| | $ | — |
| | $ | — |
| Power purchase agreement - OVEC (d) | 66 |
| | 68 |
| | — |
| | — |
| Net deferred taxes (e) | 1,839 |
| | 1,853 |
| | 660 |
| | 668 |
| Defined benefit plans | 28 |
| | 27 |
| | — |
| | — |
| Terminated interest rate swaps | 74 |
| | 74 |
| | — |
| | — |
| Other | 5 |
| | 5 |
| | 2 |
| | — |
| Total noncurrent regulatory liabilities | $ | 2,689 |
| | $ | 2,704 |
| | $ | 662 |
| | $ | 668 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | LKE | | LG&E | | KU | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | Current Regulatory Assets: | | | | | | | | | | | | Environmental cost recovery | $ | — |
| | $ | 5 |
| | $ | — |
| | $ | 5 |
| | $ | — |
| | $ | — |
| Generation formula rate | 2 |
| | 6 |
| | — |
| | — |
| | 2 |
| | 6 |
| Plant outage costs | 6 |
| | 3 |
| | 6 |
| | 3 |
| | — |
| | — |
| Other | 4 |
| | 4 |
| | 4 |
| | 4 |
| | — |
| | — |
| Total current regulatory assets | $ | 12 |
| | $ | 18 |
| | $ | 10 |
| | $ | 12 |
| | $ | 2 |
| | $ | 6 |
| | | | | | | | | | | | | Noncurrent Regulatory Assets: | | | | | | | | | | | | Defined benefit plans | $ | 370 |
| | $ | 376 |
| | $ | 230 |
| | $ | 234 |
| | $ | 140 |
| | $ | 142 |
| Storm costs | 30 |
| | 33 |
| | 16 |
| | 18 |
| | 14 |
| | 15 |
| Unamortized loss on debt | 24 |
| | 25 |
| | 15 |
| | 16 |
| | 9 |
| | 9 |
| Interest rate swaps | 22 |
| | 26 |
| | 22 |
| | 26 |
| | — |
| | — |
| Terminated interest rate swaps | 91 |
| | 92 |
| | 53 |
| | 54 |
| | 38 |
| | 38 |
| AROs | 247 |
| | 234 |
| | 67 |
| | 61 |
| | 180 |
| | 173 |
| Other | 9 |
| | 9 |
| | 3 |
| | 2 |
| | 6 |
| | 7 |
| Total noncurrent regulatory assets | $ | 793 |
| | $ | 795 |
| | $ | 406 |
| | $ | 411 |
| | $ | 387 |
| | $ | 384 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | LKE | | LG&E | | KU | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | | March 31, 2018 | | December 31, 2017 | Current Regulatory Liabilities: | | | | | | | | | | | | Environmental cost recovery | $ | 18 |
| | $ | 1 |
| | $ | 7 |
| | $ | — |
| | $ | 11 |
| | $ | 1 |
| Fuel adjustment clause | 2 |
| | 3 |
| | — |
| | — |
| | 2 |
| | 3 |
| Gas line tracker | 2 |
| | 3 |
| | 2 |
| | 3 |
| | — |
| | — |
| TCJA bill credit (c) | 34 |
| | — |
| | 16 |
| | — |
| | 18 |
| | — |
| Other | 7 |
| | 2 |
| | 4 |
| | — |
| | 3 |
| | 2 |
| Total current regulatory liabilities | $ | 63 |
| | $ | 9 |
| | $ | 29 |
| | $ | 3 |
| | $ | 34 |
| | $ | 6 |
| | | | | | | | | | | | | Noncurrent Regulatory Liabilities: | | | | | | | | | | | | Accumulated cost of removal of utility plant | $ | 677 |
| | $ | 677 |
| | $ | 280 |
| | $ | 282 |
| | $ | 397 |
| | 395 |
| Power purchase agreement - OVEC (d) | 66 |
| | 68 |
| | 46 |
| | 47 |
| | 20 |
| | 21 |
| Net deferred taxes (e) | 1,179 |
| | 1,185 |
| | 549 |
| | 552 |
| | 630 |
| | 633 |
| Defined benefit plans | 28 |
| | 27 |
| | — |
| | — |
| | 28 |
| | 27 |
| Terminated interest rate swaps | 74 |
| | 74 |
| | 37 |
| | 37 |
| | 37 |
| | 37 |
| Other | 3 |
| | 5 |
| | — |
| | 1 |
| | 3 |
| | 4 |
| Total noncurrent regulatory liabilities | $ | 2,027 |
| | $ | 2,036 |
| | $ | 912 |
| | $ | 919 |
| | $ | 1,115 |
| | $ | 1,117 |
|
| | (a) | For PPL, these amounts are included in "Other current assets" on the Balance Sheets. |
| | (b) | Storm costs incurred in PPL Electric's territory from a March 2018 storm will be amortized from 2019 through 2021. |
| | (c) | Relates to estimated amounts owed to customers as a result of the reduced U.S. federal corporate income tax rate as enacted by the TCJA, effective January 1, 2018, not yet reflected in customer rates. |
| | (d) | This liability was recorded as an offset to an intangible asset that was recorded at fair value upon the acquisition of LKE by PPL. |
| | (e) | Primarily relates to excess deferred taxes recorded as a result of the TCJA, which reduced the U.S. federal corporate income tax rate effective January 1, 2018, requiring deferred tax balances and the associated regulatory liabilities to be remeasured as of December 31, 2017. |
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