Financing Activities

3 Months Ended

Mar. 31, 2021

8. Financing Activities

Credit Arrangements and Short-term Debt

(All Registrants)

The Registrants maintain credit facilities to enhance liquidity, provide credit support and act as a backstop to commercial paper programs. For reporting purposes, on a consolidated basis, the credit facilities and commercial paper programs of PPL Electric, LKE, LG&E and KU also apply to PPL and the credit facilities and commercial paper programs of LG&E and KU also apply to LKE. The amounts listed in the borrowed column below are recorded as "Short-term debt" on the Balance Sheets except for borrowings under PPL Capital Funding’s term loan agreement due March 2022, which are reflected in “Long-term debt due within one year” at March 31, 2021 and “Long-term debt” at December 31, 2020. The following credit facilities were in place at:


	March 31, 2021									December 31, 2020
	Expiration Date	Capacity		Borrowed		Letters of Credit and Commercial Paper Issued		Unused Capacity		Borrowed		Letters of Credit and Commercial Paper Issued
PPL
PPL Capital Funding
Syndicated Credit Facility	Jan. 2024	$	1,450	$	—	$	942	$	508	$	—	$	402

Term Loan Credit Facility	Mar. 2022	100		100		—		—		100		—
Bilateral Credit Facility	Mar. 2022	50		—		—		50		—		—
Bilateral Credit Facility	Mar. 2022	50		—		15		35		—		15
Term Loan Credit Facility	Mar. 2021	—		—		—		—		100		—
Term Loan Credit Facility	Mar. 2021	—		—		—		—		200		—
Total PPL Capital Funding Credit Facilities		$	1,650	$	100	$	957	$	593	$	400	$	417

PPL Electric
Syndicated Credit Facility	Jan. 2024	$	650	$	—	$	206	$	444	$	—	$	1




LG&E
Syndicated Credit Facility	Jan. 2024	$	500	$	—	$	252	$	248	$	—	$	262



KU
Syndicated Credit Facility	Jan. 2024	$	400	$	—	$	148	$	252	$	—	$	203

(All Registrants)

PPL, PPL Electric, LG&E and KU maintain commercial paper programs to provide an additional financing source to fund short-term liquidity needs. Commercial paper issuances, included in "Short-term debt" on the Balance Sheets, are supported by the respective Registrant's credit facilities. The following commercial paper programs were in place at:


	March 31, 2021							December 31, 2020
	Weighted - Average Interest Rate	Capacity		Commercial Paper Issuances		Unused Capacity		Weighted - Average Interest Rate	Commercial Paper Issuances
PPL Capital Funding	0.22%	$	1,500	$	942	$	558	0.25%	$	402
PPL Electric	0.20%	650		205		445			—
LG&E (a)	0.22%	425		252		173		0.28%	262
KU	0.21%	350		148		202		0.28%	203
Total		$	2,925	$	1,547	$	1,378		$	867

(a)In March 2021, the capacity for the LG&E commercial paper program was increased from $350 million to $425 million.

(PPL Electric, LKE, LG&E, and KU)

See Note 12 for discussion of intercompany borrowings.

Long-term Debt

(PPL)

In April 2021, PPL Capital Funding repaid the $100 million term loan credit facility expiring in March 2022.

(PPL, LKE and LG&E)

In April 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $128 million of Pollution Control Revenue Bonds, 2003 Series A due 2033 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 2.00% through their maturity date of October 1, 2033.

In May 2021, the County of Trimble, Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

In May 2021, the Louisville/Jefferson County Metro Government of Kentucky remarketed $35 million of Pollution Control Revenue Bonds, 2001 Series B due 2027 previously issued on behalf of LG&E. The bonds were remarketed at a long-term rate and will bear interest at 1.35% through their maturity date of November 1, 2027.

(PPL)

Equity Securities

ATM Program

In February 2018, PPL entered into an equity distribution agreement, pursuant to which PPL may sell, from time to time, up to an aggregate of $1.0 billion of its common stock through an at-the-market offering program, including a forward sales component. The compensation paid to the selling agents by PPL may be up to 2% of the gross offering proceeds of the shares. There were no issuances under the ATM program for the three months ended March 31, 2021. The ATM program expired in February 2021.

Distributions

In February 2021, PPL declared a quarterly common stock dividend, payable April 1, 2021, of 41.5 cents per share (equivalent to $1.66 per annum). Future dividends, declared at the discretion of the Board of Directors, will depend upon future earnings, cash flows, financial and legal requirements and other factors.