Utility Rate Regulation (Tables)

6 Months Ended

Jun. 30, 2019

Utility Rate Regulation [Line Items]

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
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current Regulatory Assets:
Gas supply clause	$	12	$	12	$	—	$	—
Smart meter rider	11		11		11		11
Plant outage costs	13		10		—		—
Other	7		3		6		—
Total current regulatory assets (a)	$	43	$	36	$	17	$	11
Noncurrent Regulatory Assets:
Defined benefit plans	$	944	$	963	$	548	$	558
Storm costs	46		56		18		22
Unamortized loss on debt	40		45		18		22
Interest rate swaps	23		20		—		—
Terminated interest rate swaps	84		87		—		—
Accumulated cost of removal of utility plant	205		200		205		200
AROs	296		273		—		—
Act 129 compliance rider	16		19		16		19
Other	8		10		—		3
Total noncurrent regulatory assets	$	1,662	$	1,673	$	805	$	824

	PPL				PPL Electric
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current Regulatory Liabilities:
Generation supply charge	$	20	$	33	$	20	$	33
Environmental cost recovery	5		16		—		—
Universal service rider	14		27		14		27
TCJA customer refund	7		20		6		3
Storm damage expense rider	3		5		3		5
Generation formula rate	—		7		—		—
Other	11		14		—		6
Total current regulatory liabilities	$	60	$	122	$	43	$	74
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	670	$	674	$	—	$	—
Power purchase agreement - OVEC	55		59		—		—
Net deferred taxes	1,791		1,826		610		629
Defined benefit plans	50		37		9		5
Terminated interest rate swaps	70		72		—		—
TCJA customer refund (b)	42		41		42		41
Other	7		5		—		—
Total noncurrent regulatory liabilities	$	2,685	$	2,714	$	661	$	675

	LKE				LG&E				KU
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current Regulatory Assets:
Plant outage costs	$	13	$	10	$	9	$	7	$	4	$	3
Gas supply clause	12		12		12		12		—		—
Other	1		3		—		2		1		1
Total current regulatory assets	$	26	$	25	$	21	$	21	$	5	$	4
Noncurrent Regulatory Assets:
Defined benefit plans	$	396	$	405	$	244	$	249	$	152	$	156
Storm costs	28		34		17		20		11		14
Unamortized loss on debt	22		23		14		15		8		8
Interest rate swaps	23		20		23		20		—		—
Terminated interest rate swaps	84		87		49		51		35		36
AROs	296		273		85		75		211		198
Other	8		7		2		1		6		6
Total noncurrent regulatory assets	$	857	$	849	$	434	$	431	$	423	$	418

	LKE				LG&E				KU
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current Regulatory Liabilities:
Environmental cost recovery	$	5	$	16	$	2	$	6	$	3	$	10
Fuel adjustment clause	6		—		—		—		6		—
TCJA customer refund	1		17		—		7		1		10
Generation formula rate	—		7		—		—		—		7
Other	5		8		2		4		3		4
Total current regulatory liabilities	$	17	$	48	$	4	$	17	$	13	$	31
Noncurrent Regulatory Liabilities:
Accumulated cost of removal of utility plant	$	670	$	674	$	274	$	279	$	396	$	395
Power purchase agreement - OVEC	55		59		38		41		17		18
Net deferred taxes	1,181		1,197		551		557		630		640
Defined benefit plans	41		32		—		—		41		32
Terminated interest rate swaps	70		72		35		36		35		36
Other	7		5		4		2		3		3
Total noncurrent regulatory liabilities	$	2,024	$	2,039	$	902	$	915	$	1,122	$	1,124

(a) For PPL, these amounts are included in "Other current assets" on the Balance Sheets.

(b)

Relates to amounts owed to PPL Electric customers as a result of the reduced U.S. federal corporate income tax rate as enacted by the TCJA, for the period of January 1, 2018 through June 30, 2018 which is not yet reflected in distribution customer rates. The initial liability was recorded during the second quarter of 2018. The distribution method back to customers of this liability must be proposed to the PUC at the earlier of May 2021 or PPL Electric’s next rate case.